"How's real estate?" I'll tell you....

With a long face primed for sympathy, I get asked "How are you doing in this market?" quite frequently. Well-meaning friends and others who know I'm a realtor, assume I am suicidal about THIS MARKET... broke, in debt, and have no one to sell to, sitting all alone in an empty office day by day twiddling my thumbs.

My answer always shocks them. "I'm doing great! I have helped 20 families manage their life by buying or selling a home this year." TWENTY! (Not my record of 55, but enough to give me great satisfaction that my career is still on-track.)

"Who the heck would buy (or sell) in THIS market??? I hear it's tanked. Prices are down. And who would buy these days knowing they may lose their job???? Who has any money to buy?"
Welp.... here's the answer. Who I have sold to this year will tell you what the market is about right now.... who is buying and who is selling....

I started off 2009 with May* and her husband. She had been transferred to So Cal during a reorganization. If she wanted to keep a job, she better move. She had help from her relocation benefits, and had enough equity left over to afford a downpayment down south. (* some unusual names have been changed to protect those whose Mom is a realtor, yet they bought or sold from me.)

Buyer #2 - I love Nate! First time homebuyer, mid twenty's... ready to start being responsible and spend weekends at Lowe's. Bought a short sale, had it appraise for $40K more than he paid. THEN got the $8,000 tax credit, which was more than his $6,000 down payment. And payments less than his rent would have been. Happy Camper! (And by now, master floor refinisher, I'm sure!)

Next.... Chuck and Mary selling their life-long home. He was offered a new territory in Arizona, and, tempted by the warm weather, moved. A first time homebuyer bought theirs - (they got the $8K credit.)

Billie wanted to move across town to be closer to her grandkids. Bought a fantastic newer home from a real seller who actually had equity! Woo-Hoo. Now she Skypes her grandkids from 2 blocks away!

Jim and Mary felt ready for Sun City's "cruise-ship-on-land" atmosphere, so sold their home of 25 years... to a first time homebuyer... who got the $8K credit. I'm sure they are playing golf, instead of mowing lawn, as we speak.

Brian and Wendy moved here from a big home in Colorado, into a stunning newer home with a pool in Serrano. At a shockingly low price. She's a nurse, and he has a great state job.
Next came Shannon and Ron who had 92 year old Grampa living with them, along with 3 kids... in a home so small, they had to go outside to change their mind. They bought a bigger home, with room for all, right next to a park. (Grampa was SOOOOO cute!)

Clay and Pat bought two rentals... convinced that the upcoming economy makes this the perfect storm of interest rates, prices, and tax laws to make it INSANE to not buy rentals now. We're now on the hunt for two more, and Clay's become an expert rehabber.

Stephen, one of my friend's sons, joined the ranks of adulthood by becoming an accountant and buying his first home, all at the same time. Woo-Hoo. And he racked up the $8,000 credit, plus payments comparable to his rent.... BUT HE OWNS IT! Feet up on the ottoman, beer in hand, "Go Niners" reverberating throughout the house...... Life is good.

Josh... another twenty-something first time buyer, took the bus to my office from his state job, and wanted a home near the bus line. We got a great deal, that appraised about $60K more than our purchase price. He also got the $8K credit. Another happy camper.

Bob and Marcy felt the pull of home yanking them back to Fair Oaks after 8 years on the East Coast. A mega runner, Bob wanted a special home where he could fall out the back door and be on our magnificent American River Parkway trail. A little clandestine digging revealed the perfect spectacular bluff home, right on the trail. They move in soon. And you can bet he'll be a happy runner!

Sharon's a teacher, who after owning many homes in many locations, had recently moved back in with 90 year old Mom. Interest rates and prices were just too attractive to keep her at Mom's, so now she's painting and redecorating her own home, adjoining the parkway where she walks every weekend. SHE got the credit, too!

Bob's Dad died this year, and he needed to sell his life-long home. I did it.... for $70K more than his neighbor offered him "to save on the realtor's commission". Bob and his bank account LOVE me.

Scott and Gina moved here from the Bay Area, where they couldn't afford a yard bigger than a postage stamp for their 3 darling active girls. A sports scout, they could live anywhere. Here, they got a first-time purchase - 2000 feet of exquisite beauty on a cul-de-sac, a 3 car garage, and a play structure. Their daughter caught their dinner the other day in Folsom Lake. Happy? Yeah, I'ld say!!!

My friend's Mom moved to a care facility, so I sold her condo to help pay for her care. Unfortunately, Mom passed away during our escrow, but the funds will help pay for care of her husband.

Josh and Melanie... now HERE are happy campers. We've been looking for 2 years. (Yeah, you could say I'm patient) Their son grew up (well, tripled his age, anyway), and they had a new daughter during the time of our hunting. I felt like part of the family. Right before Christmas we closed escrow on their new home, with a pool and huge play structure. They are already deep into a kitchen remodel. The good news is that prices tanked during the time we were looking, and they ended up buying at a rock bottom price with a killer interest rate.

Then there's sweet Sam and Michelle - other first time home buyers, who only put $4K down on their new home, and will get $8K back from the Federal credit. They have already painted, done flooring and have such pride in their own home. They want to expand their family and wanted a home of their own to do it in.

Then there are more, including Craig, whose escrow fell apart when his Mom passed two weeks before closing, leaving him a home. Who needs two? Cancel escrow.

So, as you can see, people buy or sell for many reasons. Death, expanding family, taking on the responsibilities of adulthood, job transfers, changing family structures. Lots of reasons. As a realtor, I love just taking care of my peeps. I chose to not jump into the listing of bank foreclosures, or to specialize in short sales, and instead have continued to focus on what my peeps need. And as you can see, they keep needing to move, buy, sell, or make a change. It's a great business. A good life.

Uncle Sam wants to give you free money. $8,000 smackaroos, to be exact.

As if getting to be your own landlord isn't enough, now Uncle Sam wants to give you $8K for buying a home.

Unbelievable? Yes. True, also YES.

But there are ALWAYS catches, right? Yes, but not many.

Mainly that you gotta be a first time home buyer. So, principle residence only, and you can't have owned a home in the past 3 years. Good on that one?... then read on.

You must close escrow on your home by November 30th, 2009, and is retroactive to January 1, 2009.

It has income limits, and starts to phase out at $75K income for singles, and $150K for couples filing jointly.

Can you get it now? Absolutely. You can file an amended return for 2008. Then start spending, baby.

How much? The credit is 10% of your home's purchase price, or $8,000, whichever is less. There is no repayment, unless you sell your home within 3 years.

If you are clever, you are probably asking if you can use the $8,000 as your downpayment. Before yesterday, I would have smacked your nose for being so silly. But hey.... yesterday HUD announced they would make bridge loans availble to buyers who qualify to enable use of the $8K for a downpayment. That is huge. Call me to check on how that is being implemented. It's too new to tell at this point. (Update - they've pulled back on the promise to allow it's use for your downpayment... just one day later. Stay tuned....)

So.... pretty slick, huh? It's a total gift, inspired by the Fed's desire to jumpstart our housing market and get the money flowing again. Why not let a little of it flow into your pocket?
For more details, check out the NAR site .

flickr photo by 13 faves

What do you think about how our parks effect our home values?

Next week I have been invited to speak to the Sacramento Board of Supervisors about the impact of our area parks on home values. As I am preparing my comments, I am wondering what you would tell your Supes. What advise do you have for me?

It seems to me most of our finest neighborhoods are near our parks. We have William Land Park, McKinley Park, Curtis Park, Ancil Hoffman Park, Goethe Park, just to name a few. We have the Effie Yeaw Nature Center where our area school children learn. But best of all, Sacramento Area is blessed with the American River, with its miles of protected parkway. With walking trails, horse trails and miles and miles of paved bike trails, the parkway defines what I love about our area.

But the impact on home values..... Hmmm. I've got some interesting ideas on how to formulate my 3 minutes of fame, and some major number crunching to do.

The issue here is budget cuts.... and huge proposed cuts to our park programs. If it can be shown that our parks keep prices up, that would ultimately keep taxes up, as well, which means they pay for themselves.



What do you think? How do you think the condition and improvements at your area parks effect your home values?



flickr Photo by etgeek, mrmitch, and pete baer.

Sacramento Area... On Sale and On Fire!

My broker just returned from the Realty Alliance conference, which are the top 100 independent real estate brokers in the nation. Sacramento was the "talk of the town", he said!

We are apparently giving the nation hope that we are turning the corner in this market, with our booming sales. We were one of the first to be hit during this "Repo Madness" which is sweeping out nation, with a record drop in prices, but it looks like we are the first to be coming out of it.

Our county-wide inventory is down 58% since a year ago (8968 to 5251 currently). Our price per square foot is down 29% (161/ft to $115/ft currently), and appears to be leveling off. We are down to 3.4 months of inventory, from a high of 11.2 months back in Jan of '08.

Sales for the past 4 months are furious, with 39% of our listed homes entering escrow in February '09, compared to 14% last February. This is truly phenomenal.

What does the future hold?... who knows. But for now, interest rates are at an all time low and the buyers are coming out of the woodworks enticed by the sale prices we have. It's fast, furious... heck, we're on fire!

It's a great time to be a buyer!

Bummed Out... Focus on 2020 Vision

Brad Paisley has a killer song out called "Letter To Me" where he writes a letter to himself at 17. He tells his young self it's not the end, now that he's been dumped by his girlfriend. Oh, and be sure to fill up the tank for your date with Bridgett... "on second thought that one turns out all right". Be sure and thank Mrs. Bringham for seeing the rough diamond underneath and polishing you til you shined. It's a tear jerker, for sure.

But his capper is the best part.. wait til you see you wife and kids.. you wont believe how great they are. These are nowhere near the best years of your life!

Now zap the message into our lives today. The economic situation we're in is only for today. It's temporary. It's just the crap we're going thru for now. We have great years ahead. We will look back on what we are going thru today and realized how much we learned.

* Our kids were able to learn that easy money doesn't last
* Prices don't go up forever and maybe our home is not an investment... it's our HOME.
* That you should consider ALL variables when you make a big decision, (like that you may not be able to refi when the ARM adjusts)
* We've learned to love board games and Family Friday Nights
* We've learned to be OK without our nails done (have you looked at a group of business women lately... plain nails!)
* We've learned it's pretty fun to go to Lake Tahoe instead of Hawaii on vacation... or to stay home and chill.
*We've learned to be open about our finances... which is unbelievable... that's good!
*We've learned to live within a budget... maybe we CAN clean our own pool.
*We've looked at our "conspicuous consumption" and questioned the "stuff" we've bought... who can believe what we have accumulated... mostly that we didn't need. And look where it's gotten us.

Fast forward to the year 2020. Do you think you will be looking at the same crap as today? Heck, no! It will be different! Things will change. You will have new grandkids, new spouses (if you are married and said "yay"... slap yourself), different jobs, different joys, new challenges, new talents you discovered, and a whole new and exciting world to discover. What we're facing today, is just for today.

So buck up, deal with it, and don't take it all so seriously. And go download Brad Paisley's "Letter to Me" on iTunes... it's only 99 cents. Then write yourself a letter from yourself in 2020 about how this stuff won't last. It's nowhere near the best years of our lives.

Flickr Photos by a.drian, dotbenjamin, zpinkster

Get Out of the Rabbit Hole, Before it Becomes a Sinkhole!

It was Valentines morning. I had just read two articles in the Sacramento Bee. One about a woman, employed a few months ago, who was just "evicted" from her car for failure to pay registration fees - it had become her only home after she couldn't pay for her rental. She's now homeless.


The second, about a family who moved to Boise after a job loss, hoping to scrape together the money to buy an old RV or trailer to live in, as they couldn't make ends meet. They were hoping to find an affordable trailor park.


I got depressed.... On Valentines morning, as my sweetie was frying up the spuds for a wonderful breakfast.

As my mind went down the rabbit hole of doom and gloom and "the end is near" thoughts, I fa
st forwarded to our losing our house when the entire economy collapses, that I never have another buyer again because they will all be living in Boise in a Happy Trails RV Camp. Life is over... the subprime snafu..... Blah, blah, blahhhhhhhhhhhhhhh...... .Oh My God, STOP IT!!!!!!!!!!!!!!!!!!...........


I suddenly swerved to miss this mental pothole, which was beginning to look like a sinkhole.
Then I remembered.... I've got.....


Buyer "A" is biting at the bit to find a home for him and his sweetie - to get out of their cramped apartment. He has saved up over $30K to be ready for this... living at home with Mom and Dad.


Buyer "B" has a giant down payment ready, and is proposing to his sweetie today, then prepared to offer on one of 4 perfect homes we've found, once his soon-to-be-betrothed picks her favorite. His company has a huge pool of money available for employees to get home loans from.... They're pretty strong.


Buyer "C" can't wait to find his perfect home, with room for his 2 RV's, room for his live-in daughter and two kids, and a master downstairs - They are pre-approved and SOOO ready to go. We just need to find the home.


Seller "A" is relocating to So Cal in a few months, and counting on me to sell her home.
Seller "B" has moved to Arizona, and waiting for me to sell their home after the rehab is finished (It almost is)


GET TO WORK, YOU BOZO........


OK.... I'm back to happy land. I've quit licking my wounds about how miserable this economy is. It is what it is. Life goes on. This too shall pass. I can focus on the desperate situations out there (and there's a lot of them), or on the job to be done to help my clients. For the 10% (or whatever) of homes facing foreclosure, 90% are not. (I don't have the patience right now to look up the accurate stats, so just get the point!) For the huge number of homes upside down... the rest are not. Of the 70% of Americans thinking about the interest rate on their home loans, 30% don't even have loans! For every seller losing their home in foreclosure, there's a buyer getting a great deal on a first time purchase or an investment. It's all dependent on which side you focus on.

Every day we choose whether to be productive or whether to get sucked into negativity. Every minute we choose to go down the gloomy rabbit hole of "It's so awful", or HOP up into the sunshine of the positive.

I do peak into that gloomy rabbit hole periodically, but only enough to know I don't want to set up house there. I have buyers to help, sellers to help, homes to go find, statistics to analyse, classes to attend, systems to perfect. Hell, I've even got a song to finish writing for a talent show.

Life IS good... and sometime it's not..... but mostly it IS!