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folsom real estate homes

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#1 Steve Heard

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Posted 16 January 2013 - 09:53 AM

I wrote this for my blog, www.thepointheard.com, but hope you enjoy it and get something out of it, too. Let me know any questions or opinions.
Folks – When I’m not going on political rants or writing about my crazy family adventures, I sell houses. It is something I love doing, as I’m either helping someone get into what could be their dream home, or helping someone sell so they can move on to their own next adventure.

It’s so much more rewarding than anything else I’ve been paid to do.

As for you, whether whether you are planning to buy, sell, walk-away, invest or stay put, the real estate market will have an effect on you, and I’ll tell you why in a moment.

First though, a quick recap and a forecast.

In case you haven’t heard, the real estate market peaked about mid 2005, and then started a slide culminating in record equity losses, foreclosures, countless family fights, and even divorces.

As recently as 2 years ago, in some areas it seemed one couldn’t give away a house, then suddenly, and I mean suddenly, it all changed.

Why did it change so suddenly? I’m exactly sure. Interest rates have been low for years, and prices have been as well, but the market was very unstable, until it seems, that one day, everybody and their brother thought it was time to buy, and buy they did.

Maybe it’s because rents are rising and are close to or even more than mortgage payments in many cases. Maybe people feel the worst is over.

Whatever the case, people are buying.

At the same time, inventory has been shrinking, as foreclosures dry up and with equity down, many home owners deciding to hold on.

As a result, we’re back, in many markets, to the days of multiple offers and bidding wars. It doesn’t happen every time, but every market seems to have a price point at which people come running.

I live in Folsom CA, and I think it is somewhat typical of the improving housing market, I’ll use it as an example.

During the worst of the crash, in August of 2006, there were 561 homes on the market in Folsom. In December of 2012, there were exactly 56 homes available. That is the lowest number of homes on the market since 2004.

At the same time, 77 homes closed escrow, so we’re actually selling more than are coming out on the market. And they are selling fast. Average days on market for Folsom is 23.

How long will this last? I don’t know. Some say it’s temporary. Some say we’ve turned the corner.

Nay-sayers have been saying ‘nay’ for years now, each month predicting a flood of new listings from the banks, the dreaded ‘shadow inventory’. It just never happened. Experts point to a variety of reasons, from banks doing a better job of processing and approving short-sales, to them selling foreclosed properties in bulk to big investors.

Whatever the case, it looks like buyers aren’t waiting any longer, and the new demand combined with the short supply has resulted in steady price increases over the past year.

There’s one other twist: The big money guys are recognizing the opportunities, too. In the Sacramento area, the Blackstone group is buying 40 to 60 homes per month, on properties priced below $350,000, which happens to be where most buyers are looking.

So, what’s it all mean to you?
  • If you have equity, rejoice! You held on and now your property’s value is rising. It probably won’t be back to the peak values any time soon, but we’re up about 10% over last year, and the demand continues. And if selling is on your radar, you now have an opportunity to sell right now with little competition. Low-ballers need not apply, unless you are bidding on something that’s been on the market a looong time.
  • If you don’t have equity and plan on keeping your home, know that depending on how far under water you are, you may not be for long. I have a friend who went from being a little under water to slightly above. He’s happy.
  • If you don’t have equity and want to do a short-sale. Fear not, the horror stories of short-sales are mostly those of days gone by. Today, lenders are much better at processing them, and the new California Home Owner’s Bill of Rights and the Federal HAFA (home affordable foreclosure alternatives) program have set rules and guidelines for lenders to follow, making it easier for you to sell and get out from under your mortgage debt. Many lenders are even offering relocation funds to help you get a new start.
  • If you are looking to buy a place to live in, get an underwritten pre-approved so you can be ready, do some market research so you know what homes are going for in your desired area, know what you want and be ready to make a solid offer if the property is priced right and meets your needs. With multiple offers, sellers are often ignoring the low-ballers and negotiating with the highest bidders only.
  • If you are looking to buy an investment property, take the same advice as above, and perhaps consider some less expensive areas. While home prices can be $100,000 different in another community, rents are often reasonably close to the higher priced neighborhoods. Fixers are still an option as well.
  • If you are a renter, and you don’t plan on buying, do what you can to lock in your rent rate and don’t be a day late or a dollar short. Landlords would love to get a few more bucks coming in.
  • Lastly, if you’re living with your mom, be nice to her. She might be reading this and will kick you to the curb. Take out the garbage, give her the remote, and no loud music.
So, that’s it from the fool on the hill. If you want further information or have any questions, I’m here for you.

Wishing you health, wealth and growth,

Steve

www.thepointheard.com

Steve Heard

Folsom Real Estate Specialist

EXP Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#2 folsombound

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Posted 16 January 2013 - 10:34 AM

Great post. Rented the Folsom house to new tenants last August and got the best rent ever.

#3 Steve Heard

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Posted 17 January 2013 - 10:14 AM

Thanks. Would I be imposing if I asked size, age and rental rate for your home? I like to keep clients informed as to where rents are these days. You can PM me if you prefer.

Steve Heard

Folsom Real Estate Specialist

EXP Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#4 EDF

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Posted 19 January 2013 - 08:47 AM

I think what Steve says is right on...

Basically the market has been back now for about 18 months... Because you know....when the Sacramento Bee starts to print stories about the Real Estate market..? that's old news to anyone who's been in the business for any length of time.

I'm currently working with several investors, local and out of the area and it's hard to get a deal now without competition...

Check out this story

Ed Favinger,

TheyCallMeMrEd.com

#5 Duke

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Posted 15 May 2013 - 07:46 PM

I think what Steve says is right on...Basically the market has been back now for about 18 months... Because you know....when the Sacramento Bee starts to print stories about the Real Estate market..? that's old news to anyone who's been in the business for any length of time.I'm currently working with several investors, local and out of the area and it's hard to get a deal now without competition...Check out this storyEd Favinger, TheyCallMeMrEd.com


Indeed. I haven't posted in awhile, but I wanted to comment on the current real estate situation. Own two Folsom SF homes that I purchased in 02 and 03. I left Sac County during the end of 2011 and bought a large rural home that was listed in forclosure.

My appropriate, and reasonable, Folsom rental increases over the past year or so have made my original purchase decisions a win-win situation. I have great tenants who are aware of the scarcity of local house rentals, who are long-term renters (kids in school), and who
take initiative in participating in the neighborhood. It's nice to get compliments from the adjoining property owners when I happen to stop by. If you own a Folsom property, consider renting it out rather than selling it.

#6 caligirlz

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Posted 15 May 2013 - 09:45 PM

I'm so grateful for the gentle nudge of my realtor to jump in almost 2 years ago. I love my house, the neighborhood & being in Folsom. I love owning again! 



#7 Duke

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Posted 15 May 2013 - 09:59 PM

I'm so grateful for the gentle nudge of my realtor to jump in almost 2 years ago. I love my house, the neighborhood & being in Folsom. I love owning again!


Perfect. If you ever find yourself in an opportunity to move, think twice about selling your current residence. Renting it out worked for me, provides cash flow, a no-cost mortgage re-fi, and additional income. Can't beat the return...

#8 ducky

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Posted 16 May 2013 - 06:53 AM

Perfect. If you ever find yourself in an opportunity to move, think twice about selling your current residence. Renting it out worked for me, provides cash flow, a no-cost mortgage re-fi, and additional income. Can't beat the return...

 

You sound like a good landlord who has great tenants.  If you are going to encourage people to rent their homes out, speaking on behalf of those of us who own and then live next to rentals or on a street with them, I'd like to encourage factoring in the cost of a gardener into the rent price; or allowing the tenants to keep up the yard themselves and, if they don't, the rent goes up to cover one, please.



#9 Duke

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Posted 23 May 2013 - 08:55 PM

 

You sound like a good landlord who has great tenants.  If you are going to encourage people to rent their homes out, speaking on behalf of those of us who own and then live next to rentals or on a street with them, I'd like to encourage factoring in the cost of a gardener into the rent price; or allowing the tenants to keep up the yard themselves and, if they don't, the rent goes up to cover one, please.

Sorry for the tardy reply...

 

I'm a BIG proponent of maintaining traditional, family neighborhoods. I make sure that my homes exceed neighborhood standards--it's clearly a relatively inexpensive investment ( ... a simple mow/blow crew, for example) which pays dividends in curb appeal.  Which, in turn, achieves a higher rent.

 

Frankly, I'm now in it for the $$, so I want a nice rentable unit in a nice family neighborhood. And, I expect my renters to abide by the terms of our agreement. 

 

My real  issue is with "rooming house" rentals, where someone with a 4 or 5 bedroom house sub-leases individual bedrooms: 5 people, for example, renting 5 bedrooms--5 cars on the street-- an abundance of "guest" traffic on the weekends visiting individual renters--questionable foot traffic on the block--more auto traffic.  

 

This is a significant problem in Folsom condo communities, by the way, where parking is already scarce. Check Craigslist for the Folsom "need"/"available" room listings, or meander down to one of the condo communities some evening and try to find a parking spot... It's a chronic neighborhood problem that the City should address. 

 

My opinion is it will get worse. It trashes family neighborhoods and turns "upscale" condos into typical apartment complexes...

 

(I don't/won't own a condo, by the way).



#10 slowthegrowth

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Posted 24 May 2013 - 09:49 AM

Steve: the consensus is that zillow is not accurate at all. Where would you recommended one goes to get a decent guesstimate on home values in a particular neighborhood?

BTW: we're still LOVING the house you helped us get here in Rancho....:-)

#11 folsom500

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Posted 24 May 2013 - 11:12 AM

Steve: the consensus is that zillow is not accurate at all. Where would you recommended one goes to get a decent guesstimate on home values in a particular neighborhood?

I would like to know another source as well.  But on your comment about Zillow- are they too high or too low ? I know it is purely a computer algorithm, but what side of it is wrong ?


Another great  day in the adventure of exploration and sight.

 

 

"Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has"
-Margaret Mead-


#12 slowthegrowth

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Posted 24 May 2013 - 12:07 PM

Too low. They had a value listed recently that was $70k lower than what the home sold for later that same week in my neighborhood

#13 Steve Heard

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Posted 24 May 2013 - 03:17 PM

Steve: the consensus is that zillow is not accurate at all. Where would you recommended one goes to get a decent guesstimate on home values in a particular neighborhood?

BTW: we're still LOVING the house you helped us get here in Rancho....:-)

 

I'm happy your are happy in your home! 

 

The best source for finding the value of your home without putting it on the market is an appraisal, but the problems you'll find are that a) the appraisal is the opinion of one individual, and b) You've got to pay about $400 to get it.

 

The second best source, and it's a free one, is Realtor who lives and works in your local market. I don't know, maybe someone like Steve Heard. Hey, that's me!

 

The true value of your home is what a reasonable person is willing to pay for it, and an appraiser is someone who is paid to estimate what a reasonable person might pay it, just to make sure the one buying it or claiming the value is reasonable.   

 

As for Zillow, see the link. I tried to print the page but the data didn't come out right. 

 

http://www.zillow.co...eAccuracyCA.htm

 

 

They give themselves 2 out of 4 starts for accuracy in Sac County. 

 

 

Steve Heard

Folsom Real Estate Specialist

EXP Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 






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