Sacramento Real Estate Views

Renters! Rent = House Payment?

It’s a Perfect Time to Buy a Home in Sacramento

With the decline in prices for Sacramento homes and low interest rates, the time now to quit paying into your landlords wealth and begin creating your own.  With all of the recent foreclosures, home prices haven’t been this low in years.  For what you’re paying in rent you may be able to own. This is the perfect environment to purchase a home!

Foreclosures and Renters

Recently, because there are so many foreclosed/bank owned homes, we’ve noticed that some tenants are being relocated and forced to move several times over.  Investors who got into the market in 2005 and 2006 , possibly the worst time to buy an investment property, or refinanced into junk mortgages are losing their investments and often times don’t notify the renter that they will be losing their home until someone from one of the REO/Bank Owned real estate teams knocks on their door and tell them they have to move.  Sometimes, there is no notice at all.  The stress of all this isn’t good for anyone.

Add Security to Your Future

The above scenario is happening all over the Sacramento real estate market.  The way around this is to purchase your own home so that you know where you’ll be and noone can just walk up to tell you that the home you’re living in is now owned by the bank and you have to move.  Here is what you need to do:

Step #1

You have to get qualified by a lender.  Although getting a mortgage isn’t easy these days, it’s still possible and with as little as 3% down.  The days of 100% financing are virtually gone and it won’t be long until the least amount you can come down with is 10%.

In real estate today, your offer will not be considered without a pre approval letter.  In fact, your agent is doing you a HUGE disservice if he/she writes your offer and submits it without a pre approval.  If you’re paying all cash, (I know but I thought I’d mention it) you need verification of funds to close that must accompany your offer.

Step #2

Find an agent you can trust.  Interview a few if you need to.  We have experience in this market, referrals for lenders and the knowledge to help you get into a home as quickly as possible.  This will be required if your landlord loses his investment and you lose your home.  This is a very real possibility in every area of the Sacramento region.

It is possible for you to buy a home.  We can help you to get that done.  Please contact me. We’ll be happy to meet with you and help you to figure it out.

Don’t let the bank force you to move, take your destiny and the destiny of your family under control and provide security in a time when it’s the most important.

Tags: homes in sacramento, rentals in sacramento, sacramento real estate, sacramento real estate agents

What You MUST know about the $7500 Homebuyer Tax Credit

This link is to my other blog article on my other site about this legislation.The government passed a bill, the Housing Rescue legislation, and gave first time buyers a tax credit of $7500 when purchasing a home between April 2008 and July 2009.  That’s nice and all but what’s the truth about this “gift”?  This video exposes THE detail about the government program that you’ll need to know.Frequently asked questions (FAQ’s) about this from the National Association of Realtors.  Also, quick facts about this from Joseph Griffin from Catawba Valley Real Estate Blog is helpful as well.Enjoy and as always, thanks for watching!

Tags: homebuyer tax credit, homes in sacramento, sacramento real estate, Sacramento real estate market

Gambling…What’s Your Strategy?

I’ve never been much of a gambler. My family and I are in Reno this weekend burning up some time share points and just getting away from the house for a couple of days. My in-laws invited us and they are always fun to hang out with. ( I mean that!)

My wife has always loved to gamble. She has taught me so much about playing cards. I enjoy poker with the guys periodically and I always have a good time. Gambling in a casino, however, has always made me feel uneasy. I used to think it was the excitement of being in the “action”, the thrill of the possibility of hitting it big. The more I hang around casinos the more I identify this as just being uneasy.

This evening I walked across the street from where we are staying to the Sands Casino off of Arlington in Reno. I watched, as I often do, just interested in how others play, watching their reactions, seeing how the cards fall, observing the dealers busting players…what I call “sitting on the fence”. I was on the sidelines watching the game.

I know one thing about sitting on the sidelines: If you’re not in the game, you have no chance of winning. No chance.

If I lose, I have no chance of learning from it. To not risk is the greatest risk of all.

I was just about to leave and head back to the condo to take over for my wife who was putting our son down when I thought “OK what the heck, I’ve got $20 as my budget (I just don’t feel comfortable doing this) and if I lose then I’ve minimized my losses and if I win, I’ll double my money.”

Unlike investing in real estate, the longer you sit at the blackjack table the worse off you’ll be, generally speaking. My blackjack strategy is to always play no more than two hands and bet heavy with your entire budget. Win or lose, I’m done. This has paid off in the past. No dipping into reserves, no deed to the house, establish your budget and get it over with. (can you tell I enjoy this?)

I plunk down my $20 and the first card the dealer gives me is an ace. I thought, sweet, nice start. Then he gives me a 10, 21! He pays me $30 on my $20 and I say thank you very much then head for the barn. I’m buying breakfast! (my wife was not as fortunate!)

This story could’ve gone either way but my strategy works for me and evens the odds, in my own mind anyway. One thing is for sure. I would not have won had I sat on my split rail fence acting like I knew what I was looking at.

So what’s the strategy with investing in real estate? This market has proven that if you plunked down your money last year or the year before or the year before that, you left for the barn without your $20. That just makes me feel uneasy. How about you?

What about today? If you are sitting on the sidelines acting like you know what you’re waiting for, you’re not in the game. Conversely, if you’re buying today with the thought of turning it in 2 years, I don’t think that’s a safe bet either. Real estate has traditionally been a long term investment with a great payoff.

Buying today and holding onto your investment for 10 years will result in one of the safest bets of all. Waiting for the market to drop further, now that we’re into this for 3 years is historically foolish if you’re serious and are able to buy. The bottom is near and buying activity is increasing. This is a cyclical industry. What goes up, must come down and what goes down will eventually come back up.

The light is at the end of the tunnel, folks. At the risk of sounding redundant, you’ll kick yourself in two years for not buying this year. In two years, prices will be higher than they are today and as George Zimmer of the Men’s Wearhouse says…”I gaurantee it.” ( I love shopping there, they take such good care of you )

This is one bet I feel completely comfortable with.

Related must reads:

Don’t Miss The Opportunity of a Lifetime!

Buying A New Home?

Ignore the Headlines

Tags: Sacramento homes, sacramento real estate, Sacramento real estate market

“It’s a great time to buy” According To Someone other than Me!

Negative press about the Sacramento Area real estate market abounds. It can be found anywhere. Most is justified and some is just plain silly.

This article from News Home Magazine points to the fact that now is a great time to buy a home based on the facts that:

1. Interest rates are still at all time lows. While credit may be tighter, it’s cheaper than ever

2. Home prices have dropped dramatically. This is beating a seriously dead horse, in fact, I’m almost sick of talking about. Aren’t you?

Keep in mind the following about the general rule of thumb about California real estate; it doubles in value roughly, every 10 years.

The market we came out of almost 3 years ago had us thinking that we could buy a home and sell it in 2 years and double our money. This is a long term investment and a damn good one. (if you call 10 years “long term”)

Am I sickeningly positive about where we are now? Well maybe but if you ignore the opportunity now, you’ll hate yourself later! ( how cliche is that!)

Enjoy the spin!

Tags: sacramento real estate