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Is It The Time To Buy?
Has The Moratorium Got You Thinking?
As I’ve said many times, I get questions everyday about all things real estate. While I don’t consider myself to be the end all be all of real estate knowledge, I do stay on top of what’s happening the our market, the economy and the national real estate scene. I speak to Realtors all over the nation every week about their markets and this helps me to get a better sense of what’s going on.
Recently, an investor asked me if now was the time to buy in the Sacramento area. His concern is valid as there has been a lot of press out there about the recent increase in inventory that is coming as a result of the moratorium that Fannie Mae and Freddie Mac have put on foreclosures that is ending on the 31st of January and the state legislation enacted in September of 2008. Throw the economic woes into the mix that will effect the region and you’ve got quite a quandary.
This has some people sitting on the fence waiting to see if prices will decline further and if so, can they get an even better deal on Sacramento real estate.
Read the rest of this entry »
The Worst of the Worst in Sacramento Homes
Yesterday, I got a call from a client of mine, Jon, who had a property he wanted to see. He is looking for a place for his mom, is very handy so he is looking in the lower price ranges for a good deal to buy and fix up.
This one is in south Sacramento and he said he had been there earlier in the day, noticed the water was on, saw the damage it was doing and shut it off. The water looked like it had been on for days.
Now, being on one of the largest REO/bank owned real estate teams in the region, I’ve seen some homes that are in tough shape. This one takes the prize as being the roughest home I’ve seen yet.
It looks like there was a leak in the plumbing in the attic that had been left on for who knows how long. One half of the house was inundated. There was about 3″ of water on the floor.
In the first picture, the water had saturated the ceiling and the drywall had fallen through to the floor. This happened throughout the kitchen, hallway and dining area.
As a result of this, the interior of this home was completely destroyed. My client and I were standing outside laughing about what a disaster this home was when he told me he wanted to buy it! Fortunately for him and his wife,
Foreclosures Decline 29.5% in September in Sacramento Real Estate
California State Law Slows Foreclosure Rate in September
The rate of foreclosures slowed dramatically in September due to state intervention in the foreclosure process for homeowners in the Sacramento region and California. The new law, SB 1137, took effect in early September, requires lenders to make contact with buyers prior to filing a notice of default. The law which was designed with the thought that lenders would help homeowners to make loans more affordable by locking in lower or initial interest rates for 24 months or reducing the principal. Unfortunately, the net effect is a delay in the amount of homes coming on the market for the majority and not actual help for struggling homeowners.
California’s foreclosure rate slowed 51% September over August but accounted for 27% of foreclosure activity nationwide. If the same thing happens in California that happened in Massachusetts, California is in for an inventory increase of epic proportions.
A Flawed Plan, Good Thought But Flawed
In Massachusetts, a similar law was passed that had the same effect in June, July and August. The foreclosure rate slowed dramatically but in September jumped 465% as the lender required 90 day waiting period had elapsed before filing a notice of default.
The Calm Before the Storm
There is a Glut of Inventory Coming
A week or so ago, I wrote an article on the foreclosure rate dropping 61% from August to September due to a law that the State of California created to stem the tide of foreclosures in our state. The likely consequence of this was that foreclosures, while some will be averted, would be backlogged and the Sacramento region would be in “foreclosure constipation”. Well, folks, that’s what we’re seeing.
Yesterday, the team that I’m on had to bring in additional people to handle all of the BPO’s (broker price opinions) that we had to get done on homes given us by the bank. We did 55….in one day. 55 BPO’s in one day. That is simply incredible and a testimony to the fact that government might want to think twice about intervening in this mess. A pipe dream I know but look at what’s happening here.
An Increase in Inventory at Just the Right Time….For Who?
Traditionally, this time of year, things begin to slow down, inventory decreases and values tend to hold their own without much appreciation or depreciation due to the lack of inventory. Not this year. No this year, the State of California has guaranteed you that you will lose more value on your home over the holidays. Merry Christmas!
Warren Buffett and Sacramento Real Estate
An article I read today from the New York Times written by Warren Buffett gave wisdom that can be directly related to the mindset needed to be successful in the Sacramento real estate market or any investment scenario. There is a lot of fear out there right now about not only real estate but the economy, personal finances and shadows moving in the night.
There is fear of fear itself. If I remember the quote correctly, the only thing to fear is fear itself.
On this point, Mr. Buffet wrote;
“A simple rule dictates my buying: be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.”
Warren Buffet
My guess from this statement is that it’s time to be greedy.
EXCLUSIVE NEW HOME OPPORTUNITY!
New Home Builder in Westpark, Roseville Makes Exclusive Offer for Buyers of SREV.com!
I got a call today from a new home builder in Westpark. The context of the conversation was that “hey, we’ve got (“X” amount) homes to sell before December 1. Make us an offer and we’ll consider it.” It was music to my ears!
This is one of the most well respected builders in the Westpark, Roseville community and the nation. They have authorized me with all of the information I need to get you the best possible price on a new home this year. I’ve been asked to withhold the name of the builder and the prices to share them only with serious buyers.
Some of these homes are move in ready or on a 30,45 or 60 day close schedule.
How Buying a New Home Benefits You
New Home Warranties vs. Existing Home Warranties
There is just no comparison. Buying a new home and buying an existing home are two different animals altogether. I know, I’ve sold both. As I’ve mentioned in previous posts, new homes come with customer service and warranties that an existing home will not. The best you will do with an existing home is a 1 year home warranty that will have to be renewed every year, if you wish to, with a price tag of about $500. Then, 
if you have an issue, you’ll get the run around with the warranty company while they try to ascertain if the condition existed before you purchased the home.
In new homes, you call, they come and they fix it. Period. Unless the damage was caused by you either accidentally or intentionally, it’s covered. Something fails, it’s no cash out of pocket and they are there for you. The home warranty company in existing homes, well, let’s just safely say that the service isn’t even comparable.
Builders, if you know the right one to chose, stand by their homes. It guarantees future business, referrals and a high JD Power ranking.
The Most Up to Date Building Codes and Energy Features
Building codes change every year especially in California. Existing homes, all of them, are exempt from updating unless a ma
jor modification is made to the structure. Otherwise, existing homes just sit there and get old and outdated. New homes are built with the most up to date changes in construction standards.
While it’s true that what is new today is old tomorrow, certain features of new homes today won’t go out of style for some time. The builder who has made the EXCLUSIVE OFFER to Sacramento Real Estate Views buyers equips every home with low maintenance solar energy cells in the roof panels. Combine that with living in Roseville, who has their own electric company, and your electric bills will be almost non existent. Watching the electric meter running in reverse is an awesome sight!
Also, the windows of these homes are very special, Low “E” windows that reflects heat that hits them back outdoors in the summer and back indoors in the winter. They are the most energy efficient component of your new home. Dual pane windows alone don’t compare.
In addition to all of these highly sought after features, these homes also include a radiant barrier that is laminated onto the reverse side of the roof sheathing. This keeps the attic temperature roughly 30% cooler in the summer and the interior of your home warmer in the winter further reducing your “carbon footprint”.
The Best Prices of the Year on a New Home
All this stuff is nice but the bottom line is what matters most lately.
If you could get all the benefits of buying new at the price of an existing home, would you move forward?
With all of the fallout on Wall Street, everyone is a bit on edge. I have a list of homes, the base prices and the discount they’ll tell me about. They will go lower and I have a strategy for that.
If you’re interested in buying a new home in Roseville, please give me a call. We can get together, look over what I’ve got and if it looks good to you, we’ll form an attack strategy and get moving.
It’s the 4th quarter of the year and the builders have inventory they want to move before the end of the year.
Check out “It’s Bargain Time in New Homes!”
(images are from random brochures obtained and are not meant to be representative of any specific builder)
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