Five Common Defects in Homes to Avoid
February 18th, 2010 categories: Folsom Lake, Home Selling, Home buying, Real Estate, Sacramento
Growing up in a family of tradesmen has given me an advantage in matters of construction and enabled me to help clients think through a particular design flaw or anticipate potential construction issues. One of my pet peeves is shoddy workmanship but sometimes home buyers are so dazzled by the process that they fail to see obvious flaws. The old adage that the devil is in the details works well when it comes to finding potential problems when purchasing a home, so I thought I’d offer the top 5 hidden defects that can shipwreck your home purchase.
Top on the list is foundations. Talk to any concrete expert and you will learn a lot about curing times and it’s relationship to the strength of a home foundation. Living in this valley has taught me many things and one of them is that you don’t pour a foundation in the middle of July and expect it to dry property without a lot of babysitting…with a hose. Concrete needs to cure slowly so when I purchased my last house I was ecstatic that the foundation was being poured in February. Cracks in foundations are allowed to a certain degree (hairline) but when the gap gets to 1/8 inch then you start to have issues with moisture and pests. One trick is to look closely at the garage floor for separation because this is your clue into the rest of the structure.
Roofs are at the opposite end and can cause major damage to the structure if not installed correctly. A few years ago I listed a home for a client and we found that the entire parameter of the roof needed to be replaced due to incorrect installation of the original flashing. The builder had flipped the flashing upside down so instead of the rain running off the edge, it was held there and wicked back up the roof. The homeowner didn’t have a clue since she had purchased the home when it was relatively new. Roof inspectors will check for those and other issues at the time of purchase. Don’t assume because a home is new that the roofing is installed correctly or is not damaged.
Water is the most intrusive element known to man and poor drainage can cause numerous problems from mold and mildew to undermining a foundation. Homes that have a down slope are more prone to water problems but equally important are runoff and standing water issues. I once looked at a home in the bay area and had my soils engineer out to take a look. His assessment was that the foundation was sound and that the fireplace cracks were nothing to be concerned about. It was only after the fireplace had fallen off was it found out that there was an underground spring running under the home. Needless to say I was very happy to not have purchased that home.
Pest reports reveal intrusion from pests, dry rot or any other critters known to destroy real property. In certain parts of the country it is expected to have a home treated for termites, or as is customary in our area, to deal with dry rot. When my seller’s get a pest report back that has a repair bill around $1000, they might wince but that’s considered average for this area. When purchasing a home with obvious deferred maintenance it’s not a bad idea to ask to be present when the pest inspector comes. Seeing the damage can educate you to the causes so you can do preventative maintenance.
Finally inadequate systems, such as wiring, plumbing, or HVAC can empty you pocket fast. When purchasing a home that has been retrofitted or remodeled find out if these systems have been updated along with the new cabinets. Permits for this type of work is required but sometimes “Tim the tool-man” decides he can do the work for less. Recently a buyer client purchased a home and as part of the negotiations demanded that the repair work be done by a certified professional and not the homeowner. Unfortunately the home inspector revealed the seller’s skill level and it was apparent he liked Lowe’s and wasn’t so much concerned with accuracy. Keep these tips in mind when shopping and you will prevent additional cost and much frustrations.
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Ed Mitchell Park wins SATA 2009 Championship
February 8th, 2010 categories: Folsom CA, Outdoor Activities, Sacramento, Tennis
Folsom wins bragging rights!
The 2009 season came to a close with Folsom Park winning the final game against Roseville’s Sierra View with a score of 2-1. The women’s 6.0 doubles team started with lessons from Ed Mitchell’s Bryan Solem and within three years managed to take Top Dog status at the Sacramento Area Tennis Association’s (SATA) competition.
First line Antonette Clark and Norma Thomson lost to Kerry Weinroth and Robby Denning 6-1,6-1. The third line of Ellen Desvarro and Christine Volker won 6-0, 6-2 against Joyce Bray and Angelen Simao. During the last game, Ellen Desvarro pulled her calf muscle and was unable to run leaving little room for error. The final tie-breaking game was won by Sandy Kennedy and Beth Mergens 7-5, 6-2 against Sierra View’s Betsy Newington and Liz Adkins.
Spring 2010 tennis season begins in March so if you’re looking for some great tennis and fun gals to play with email me with your information or go to the Top Dog site for more information about Sacramento area tennis.
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Real Estate “deals” …are there any left?
November 21st, 2009 categories: Home buying, Real Estate, Sacramento
It’s been three years into this market and the inventory is starting to look like Wal-Mart’s shelves after black Friday. Have we seen the bottom yet, is a constant refrain in my conversations with clients. Congress extended the tax incentive and expanded it to include principle owners, and seller’s are seeing multiple offers on choice homes. Does that mean all the deals are gone? Glad you asked.
Some economists think we’re bumping along looking for a place to land and others fear we’re in for another down hill ride. One thing is certain; it’s a good time to buy a home. The trick is knowing what a deal looks like and writing an aggressive offer. Real estate has certain break points that are obvious to those of us who look at houses all day…not so much for the novice. Each tier offers a certain level of ”deals” to be had and I’ll attempt to define the differences so you can recognize the trends.
For obvious reasons price determines the location but within each area there are grades of desirability. The homes that are typically the lowest priced are bank-owned (REO). They can be damaged and stripped of appliances or have half-completed projects and are usually priced at the bottom of the neighborhood price scale. The banks usually respond quickly but don’t do much in the way of repairs. They can be good deals in the lower priced neighborhoods but when it comes to the better zip codes you’ll find the competition stiff.
Coming in at a close second are the fixers, which by definition need work to some degree. The nice part about buying a fixer is that there are loans (FHA 203) specifically designed to include the repairs and offers the potential owner their choice regarding those repairs. So if the house needs new carpet, the buyer gets to choose the color and style. Again location, location, location since these homes are much sought after by contractors who have lots of time to work on them.
Next is the much-dreaded short sale. Depending on the skill of the listing agent, these homes can be a great deal but you have to have the patience of a saint. Buyers need to be clear about the waiting period for short sales. Each bank has a different process and some manufacture delays by the methods they demand for submission of offers. Currently I have a short sale that requires submitting the entire package via snail mail, not very efficient given today’s technology. These properties are deliberately priced low to attract offers quickly to get the process going. Of course, the bank will send out their appraisers to determine value but if priced right you will find they will accept a solid offer to avoid foreclosing.
The last tier is the forced sale due to some misfortune and the fair market sale, which represent about 25% of the current market. Varying value structures but all are based on the assumption that within a given radius each home would be of equal value given the same degree of interior upgrades, lot size and age of bldg. The bottom line is that every sale that takes place in that neighborhood affects the next sale good or bad, so the deal you buy today might not be the last one found in your neighborhood.
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Condo Sales Activity in Folsom CA
September 5th, 2009 categories: Folsom CA, Real Estate, Sacramento Co. Real Estate
Short Sales Dominate Market
Condominiums are a great way to get into the housing market and take advantage of the $8000 tax credit and it appears that a lot of people are thinking along the same line. As of today, Sept. 5, 2009 there are 47 condominiums for sale in Folsom with 39 in some sort of available status. The other 8 are currently pending sale which means that barring some catastrophe the property should close escrow within a reasonable period of time. In the previous market “reasonable” meant approximately 30-60 days. This market shows the longest days on market (DOM) for condos in Folsom at 846 days…certainly gives new meaning to a long escrow doesn’t it?
Another interesting statistic is that of the 47 condos currently listed there are 9 REO’s (bank owned) and 20 in a Short Sale status. The average DOM is coming in at 177 so you can see how short sales are impacting the market and extending the average time on the market. Last month in Aug. 2009 there were 6 closed sales for condos in Folsom and 50% of those took longer than 120 days to close. Kudos to those patient people because they paid on average $149.14 per sq.f t. for a condo just 3 years old in Folsom. They averaged a 1470 sq.ft. home and paid an average of $220,000…not bad for starters!
There is a rule of thumb in real estate and that is: Never sell your first home. The reasoning is that your income will increase so affording another property later on is highly likely. By keeping the first home you diversify your retirement income, can utilize the property for additional funds should the need arise, and have someone else paying that mortgage. With that in mind, a condo is the perfect vehicle to invest in. It provides shelter, tax write-offs, future liquidity and the best part is that you don’t have to maintain the property once you move out. If you find that you like Folsom and want to know more about condos please give me a call and I’ll be happy to assist you.
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Three Tips for Finding a Good Realtor
August 27th, 2009 categories: Folsom Lake Homes, Home buying, Real Estate, Sacramento
How to avoid the used car salesman
High school was a great learning experience for me because I learned how to trust my gut. High school is the first time you get to choose which teachers you have for each class. I soon found those that I enjoyed I learned a lot from, and those I endured didn’t learn much from. By my senior year walking out of a class after the first day and heading to the counseling center to re-schedule wasn’t a big deal. I wasn’t intimidated and didn’t make excuses…if I didn’t like a teacher on the first day, it wasn’t going to get any better.
Searching for a real estate agent is similar to finding a good teacher. You want to find someone who will teach you the ropes and who you can trust to give you good information. After all, a home purchase is statistically the biggest purchase you will ever make. This video makes a humorous point about intimidation when it comes to real estate agents but unfortunately some agents still use these tactics…
Professionals Teach -
My attitude has always been to get the information to my clients in order for them to make an intelligent decision. The Realtors Code of Ethics requires that I offer my clients the utmost in service, and intimidation shouldn’t be part of the package. If you feel uneasy or that your requests are not being heard, find another agent who will take the time necessary to help you find your home. Referrals are a good start but don’t stop there. Interview at least three agents and get an idea of their approach. Some agents don’t work weekends, and others only work business hours, so if you want to go shopping after work, or need to list your house after dinner, you’re out of luck.
One of my clients purchased a house from me a few years ago, sight unseen. He worked for the government and had only one week to find a home. The market was hot and my client put in three offers before he left to go back to his job but none of them panned out. He had used up all his vacation time and decided to trust me to find him a home. He said he felt he could trust me because while we were previewing homes he heard me comment on everything he was concerned about. If the house was located on a busy street, I commented on that. If the house had a smaller than average master bedroom, then I commented on that. I didn’t ignore the obvious, nor did I pressure him into making a decision…I simply gave him the information and let him decide. He found he could trust my information and that enabled him to find a home that he eventually re-sold at a tidy profit.
So to bring it all together trust your gut. If the agent seems to be something other than what they appear, you’ll probably find proof to support your intuition once you get to know them, so don’t waste your time. Secondly, make sure they listen to you. If you say you only want to see single story homes and they show you two stories, then realize they are not looking out for your best interests. And finally, if you feel pressured into a purchase and don’t feel you have enough information don’t be afraid to ask for more. If the agent counters with more pressure then you know he is only looking to make a sale. Remember this is a decision that you only make about once every seven years, so enjoy the process. A good agent removes the pressure and intimidation from the process…they don’t create it.
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Homes Sales up 13.6% in Sacramento County
June 8th, 2009 categories: FHA, Finances, Home buying, Sacramento, Tax Incentives, VA
April 2009 statistics show increase in sales volume
Great news! Sales are up, prices are down and interest rates are holding! If you can afford to buy a home now is definitely the time to do it! According to DATAQUICK Sacramento has seen a reduction in price point of 30% since 2008 and so long as interest rates keep steady we’re expecting to see a good summer for real estate sales. The actual numbers reveal that Placer & El Dorado counties are each down 16% with Sacramento closing 2130 homes in April 2009, Placer coming in at 457 and El Dorado at 155 homes sold. To put this in perspective you need to understand that Sacramento county had 4786 homes on the market in April so we’re absorbing a lot of inventory and starting to see multiple offers on the nicer properties.
My local banker tells me that the interest rates are slowly climbing and we’re up from 4.6% to 5.25% in some instances. For every .25 point increase in the interest rate you can expect to to pay anywhere from $30-$130 more per month depending on your loan amount. For a $300,000 home expect to see an increase around $50 per month. There needs to be a sense of urgency because as we get closer to the end of the buying season rates will most likely increase just as the inventory starts to decrease. Remember that on average it takes 2-3 months to find and purchase a home from start to finish.
Another piece of good news is the $8000 tax credit can be used for closing costs. For a VA loan that means you don’t have to pay a penny to buy a house! There are also FHA loans available with as little as 3.5% down. On a $300,000 home that’s only $10,500 down and your closing costs are pretty much covered. There are lots of other opportunities for vets and their families as well as those who need a helping hand through FHA. For instance there is a FHA loan to improve the property that rolls the costs of the improvements into the loan. If you would like to talk to a lender who can explain these loans I can offer a couple of seasoned professionals who specialize in VA and FHA who would be happy to go over the details with you.
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Investors Kicking the Tires
May 29th, 2009 categories: Home Auctions, REO, Real Estate, Sacramento
The real numbers behind home auctions
Talking with a real estate investor the other day I was set straight about what I (and many others) assumed was happening with properties going to auction. Apparently investors once poised to take advantage of this market are scouring for bargains too. According to Foreclosure Radar approximately 94% of all the homes that get sold at a trust deed sale in our area go back to the bank! Given the moratorium on Notices of Default (NOD) filings and the hope of receiving bail out money it’s no wonder the banks are finally streamlining short sales…they need to make some money!
Recent statistics for Sacramento county reveal that there are approximately 6000 homes currently for sale. Another statistic that astounds me is that the banks have about 4400 homes being held back from the market. Now if they were to put all of those homes on the market today then we’d see an investor feeding frenzy. With the recent low interest rates and now the approval of the $8000 tax credit allowed for closing costs, buyers have a golden opportunity to beat the investors to the deal.
First time home owners finally have a chance to get into our market after being locked out for the past few years. This reminds me of the bay area right after Prop 13 passed and homes were snapped up en masse. The difference is that interest rates are hovering around 5% AND the median price of a home in Sacramento county is $212,000. With those stats you could own a home with a monthly payment of around $1500.00 including taxes and insurance! These days cash is king but FHA works just as well to buy a home so what are you waiting for?
Related articles:
http://folsomlakehomes.com/2009/05/06/foreclosures-fixer-scams/
http://folsomlakehomes.com/2009/04/28/short-sales-impact-on-credit-scores/
http://folsomlakehomes.com/2009/04/14/california-prevention-act/
http://folsomlakehomes.com/2009/02/16/loan-modifications-vs-short-sales/
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Hollywood Comes to Folsom CA
May 10th, 2009 categories: Folsom, Sacramento, Special Events
Filming starts in June 2009
Actors and extras auditioned yesterday for a new movie to be filmed on location in Folsom and Sacramento CA this summer. Power and Pride starring Stephen Baldwin and Eric Roberts is a story about a politician about to make a poor decision…what’s that old adage about life reflecting art or is it supposed to be the other way around?
This G rated movie has already had auditions in Sparks NV last February. The goal of the casting agent is to try to provide as many non-union jobs as possible so expanded the search outside the production location area. The cool part is that you can be updated on the production via email simply by enrolling at 315 Entertainment Group on the Power & Pride website.
Kudos goes to those in charge for bringing an action packed movie (and jobs) to our area given the fact that the Sacramento valley ranks 20th on the worst housing markets chart which is better than Stockton at fifth place. The additional revenue will certainly be a boost not to mention the thrill of seeing famous people in our small town. The real excitement will be when we see some of the locals on the big screen!
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Video Phones:The Solution For Some Sellers
March 16th, 2009 categories: Moving Solutions, Sacramento
Staying Connected to Family Without Moving
One of the main reasons people move is to be closer to family members, but in today’s declining market it isn’t practical to take a huge financial loss. I found a great solution while waiting for the economy to stabilize and it’s the latest technological toy, the video phone. This Sunday it will be featured on the Celebrity Apprentice Show.
Imagine sitting in your kitchen eating breakfast with your mom…matter of fact I know of a lady who does that every morning with her grandchildren. The only difference is that she’s miles away from them but enjoys their company because this video phone is real time with no voice lags and crisp pictures. Enjoy the benefits of seeing your family and staying connected without having to sacrifice your retirement account. Concerned about your elderly parents? This device makes it much easier to see how well they look and the expression in their eyes, not just the tone of their voice.
According to Leslie Appleton Young, CAR’s Chief Economist, Sacramento hit bottom in 2007 with sales declining to 44% from 2005. Given the increase in sales for 2008 (26.7%) some folks still won’t be able to take the loss necessary to sell their home to move closer to family. We ranked 2nd statewide for affordability so my latest discovery might just be the solution to keeping close ties to the family. According to Young, it appears the housing market will recover slower than thought so the prognosis is more distressed properties with stability still on the horizon.
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Folsom’s First Bicycle Film Festival
February 8th, 2009 categories: Biking, Folsom Lake, Sacramento, Special Events
Feb 13th starts new season
by Jason Montiel
Folsom has developed a reputation as one of the best places to live due to the outdoor recreation available nearly 11 months of the year although this year seems to be the exception…due to a lack of rain the number pushes 12 months. So this year the city is hosting it’s first film festival featuring “Breaking Away” at 7 p.m. at 48 Natoma St. Just in case you don’t know this is the location of the new Art Center/Senior Center which is a re-make of the fire station next to the city offices.
This presentation was inspired by the upcoming Amgen Bike Race in Sacramento on Feb. 14 and the city of Folsom hopes the locals will support that race and encourage other event sponsors to consider our region when looking for venues. Promotion is something taken very seriously in this town and I wouldn’t be surprised to see film crews on the streets with celebs shopping at the local antique shops between takes.
Speaking of a lack of rain…while driving down Empire Ranch Rd. I caught a clear view of the Folsom puddle and was surprised how brown the lake appears. Watering lawns is now limited to every other day and if you get caught spraying off your sidewalk or driveway you could be fined. I’ve begun to pray for rain because I remember my first year in California, which just happened to be in the middle of the drought in 1977. We used to save the drain water from the washing machine to water the lawn and wash the cars. Local restaurants have begun to only serve water upon request so if anyone has a hotline to heaven please pick up the phone…we need the water.
Feb 13th starts new season
by Jason Montiel
Folsom has developed a reputation as one of the best places to live due to the outdoor recreation available nearly 11 months of the year although this year seems to be the exception…due to a lack of rain the number pushes 12 months. So this year the city is hosting it’s first film festival featuring “Breaking Away” at 7 p.m. at 48 Natoma St. Just in case you don’t know this is the location of the new Art Center/Senior Center which is a re-make of the fire station next to the city offices.
This presentation was inspired by the upcoming Amgen Bike Race in Sacramento on Feb. 14 and the city of Folsom hopes the locals will support that race and encourage other event sponsors to consider our region when looking for venues. Promotion is something taken very seriously in this town and I wouldn’t be surprised to see film crews on the streets with celebs shopping at the local antique shops between takes.
Speaking of a lack of rain…while driving down Empire Ranch Rd. I caught a clear view of the Folsom puddle and was surprised how brown the lake appears. Watering lawns is now limited to every other day and if you get caught spraying off your sidewalk or driveway you could be fined. I’ve begun to pray for rain because I remember my first year in California, which just happened to be in the middle of the drought in 1977. We used to save the drain water from the washing machine to water the lawn and wash the cars. Local restaurants have begun to only serve water upon request so if anyone has a hotline to heaven please pick up the phone…we need the water.
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