Paul Brown Real Estate Blog
Granite Bay, Loomis, Folsom, El Dorado Hills, Roseville, Rocklin and Sacramento, CA Real Estate PerspectiveSHORT SALE REJECTIONS CLIMBING – NEW STRATEGIES
I attended the Coldwell Banker Annual International conference in Las Vegas last week, dubbed Generation Blue, and it was a great time. Lots of learning and fun. A couple of days ago I was in San Francisco for another Coldwell Banker event for its top agents and it’s always fascinating to hear the experiences from other agents — how their business is doing, where it is coming from, are they doing short sales, etc?
What I have found is it varies widely. I think most of it has to do with certain market niches agents may be in, tenure in the business and some have been able to weather the storm and avoid many aspects that are very real in the greater Sacramento area — such as the short sale.
In Sacramento short sales make up more than 60% of the market. When I mention that to my out of area colleagues their face turns green. It is what it is and a result of the old market bubble in Sacramento — massive appreciation that could not sustain itself. On the trip to San Francisco a couple of days ago a colleague of mine shared the following link with me: http://stevebeede.com/2011/03/short-sale-rejections-climbing-new-strategies/. It is information from a knowledgeable local area real estate attorney that I’ve heard speak on a few occasions here in the greater Sacramento, CA.
I’ve had a Seller-ratified contract on a home in Granite Bay, CA at First Horizons Bank since August of 2010. Still not approved. This is an offer more than $1,000,000, all cash, 14 day close and the reality is we could close it in 5 days. I share this because the context of this article is that banks are looking at fair market offers, agreeing to them and the risk of foreclosure is still real. My clients and I are staring at an early April auction sale date and we are doing our best to make sure that does not happen.
I have an excellent track-record with successfully listing and closing short sales over and under $1,000,000 and would love to get into a discussion about this. Let me know your thoughts.
A great bakery and cafe in Historic Folsom, CA
Hey everyone. It’s been awhile since I blogged. Business has been quite busy and many of my colleagues are experiencing the same thing…at a time of the year (Thanksgiving through December) that historically are quite slow in residential real estate sales. Buyers and sellers in the greater Sacramento area are not letting up through the end of 2009, and that’s shaping-up a nice running start into 2010.
I wanted to blog about a great place to eat in Historic Folsom. Not a new place, a place I frequent regularly, and a place that simply delivers like all great brands do (with a great product, service and experience) and sometimes you can’t even find a place to sit for a few minutes after you order. The place is Karen’s Bakery and Cafe. http://www.karensbakery.com/
My wife and I played hooky a couple of weeks back and went to a late breakfast during the week. I think I had a salmon and egg scramble with toast and coffee and she had a egg pannini of some kind. Delicious! It’s one of those places you walk into and the energy is just there. The kitchen is bustling, pans clanking they way good chefs clank pans, wait staff going back and forth, and the patrons are enjoying themselves. Lots of cyclist frequent it as it is at the bottom of the popular Auburn-Folsom Road ride and a steady uphill climb to Auburn, CA and just off the bike trail that goes all the way to downtown Sacramento. We sat at a table against the window and like many times I had been there before, the staff is always so friendly, the food is amazing, and the baked goods…pies, cakes, cookies, rolls, muffins, you name it…are right up there with what the finest bakery chefs in San Francisco can offer. I am a die-hard San Franciscan after many years there as a resident. Karen’s is a special place. The price is above average (for Sacramento standards), and that’s to be expected for the quality and experience you receive.
The other night we took the kids there after the Christmas Tree Lighting event in old town Folsom. It was 8:15pm or so. The kids had a gingerbread man and gingerbread woman cookie. My wife and I split a brownie something or other that was a lucious slab of chocolate goodness. Had a cup of coffee and just sat there. It’s kind of like being at your kitchen table when you are there. Comfortable.
As many chefs and proprietors do at the end of a long day, they dine at one of the tables when things settled down. Karen and her crew sat down at the table next to us, poured some red wine into short water glasses and seemed to toast to themselves (for what I imagined was a rewarding day’s work).
I’ve always found consumer behavior facinating. Why people buy things and what things they buy. What brands and why. To me, Karen’s is one of those places and brands (albeit local) that is committed to a standard of quality and service and is unrelenting on delivering it day after day. Like I said, as a business-owner, I find it inspiring. As a customer, it’s just plain good eats and a great experience.
Next time you are in Folsom, stop by. I’m sure you’ll enjoy it.
I’m lucky.
Lucky to have clients that really appreciate what I do for them. Granted. I work hard. I really do. And I put them first, professionally speaking. Residential real estate is something I enjoy, tremendously. So, although I get as tired as the next guy, I enjoy putting out the effort when I know, for the most part, the love comes back to me. A client I have been working with for more than a year, currently, we just got into escrow on a short sale. She is a first-time home buyer. It took more than 5 months for the bank to approve her offer. Quite emotional at times. We had some tough phone calls and keeping her excited and focused was a part of many of them. The uncertainty was something else. Just the wait was painful. I knew it would come through. Felt it in my gut the entire time that it would…and it did…finally. She leaves me a voice mail the other day and it starts out “How is the best real estate agent in the world…” and you could hear the ‘happy’ in her voice. And through the fight of the last 4 years in this changed real estate market…building a business, finding deals, losing deals, closing deals, raising kids, feeling like the wheels were coming off the whole thing some days, waking up in the middle of the night staring at the ceiling and thinking “how am I going to do this today?”…comments like that are like sinking that 40-foot putt or chipping that impossible shot out of the bunker and watching it go right in the hole. You say to yourself “I love this game.”
There is something about “the hunt.” The hunt to find buyers the home they want. Sellers, the buyers they want and need. In just the last few days I found a house in El Dorado Hills, CA for a couple and it was a home that met their criteria (admittedly, I thought there was a chance it was too big…more than 4,000 sq ft…may need a ton of updating/remodeling, but I thought if we are out looking at other homes we may as well see this one). I walked in and I thought to myself “this place rocks.” I’m personally partial to older homes and character and I try not to let that show too much. Some people are not into homes that need updating. This place was rock solid, great floorplan, custom, big lot, great neighborhood. Not sure what my clients thought while we were in the house. Kept taking glances at them and she gave me the nod about 10 minutes into it. I thought to myself, “yes.” I love when the lights go on for clients. You can see it in their eyes. We wrote an offer and it got accepted shortly thereafter. She said to me today, “Thank you so much for showing us this house” (it was not one they were considering, although they had seen it online) and the couple is genuinely excited about it. And on cue after she made her comment, a flock of 10 wild turkeys ran across the lawn and she got even more excited and I thought “that could not have been scripted any more perfectly.” Luck.
There is this great quote my father and mother-in-law passed along to me not too long ago…”The harder you work the luckier you get.” In my opinion, the real estate market is turning for the better. Business is up and my colleagues are busy, too. I believe this is a final turn for the better. Not sure the trajectory, but it will be a slow, steady uphill climb. The worst is definitely behind us, I think.
I am never too busy for any of my clients, my friends, family and anyone else looking for a passionate real estate consultant to help them buy or sell a home. Call, email or text me. I love this business and I am grateful I work with a base of interesting, pleasant and respectful clients.
It feels good to give.
You always here celebrities and others say on the TV or wherever that it doesn’t take a pile of money or riches to give, to make a difference, and help out those less fortunate or in need of help. I’ve always believed in in my most frustrating moments that there is always someone in a more trying situation or in need of more help than me, and in most cases say to myself, “get over it.” Although we all need a helping hand at times, there is little doubt that my thought is true, overall. I count my blessings.
This past Friday night, a committee of some of the most generous colleagues of mine at my office, the Coldwell Banker real estate office in Folsom, CA, put on a fundraiser event to support Habitat For Humanity’s Northern California Chapter. For most reale state professionals, helping people put a roof over their head is gratifying. When you can help an organization so selfless and passionate about it like Habitat, there is not a feeling more purely gratifying.
In it’s initial planning stages a month and a half ago, the start was slow. With the economic environment being what it has been, the impact it has had on agent incomes, stress-levels, workloads, reduced staffing, etc…enthusiasm to give was flat, at best. I hand-picked some of the most enthusiastic people in the office to help because I knew that they would say yes before I even asked…and they did. Immediately, we were in a conference room, throwing around theme ideas and we settled on a Texas Hold Em tournament, because one of the committee members plays poker monthly with her husband and neighbors and had all the tables and chips to do it. And she offered to do it at her house. We were off! We added our signature live auction and our in-house auctioneer (one of our agents who does it on the side). I swear you’d think the guy was selling cattle instead of jewelry and it is a lot of fun. We sold raffle tickets, drinks, dinner, auction items and poker.
From that point on over the last four weeks or so, we promoted it to friends, family, colleagues, clients, local businesses and everyone came through and we more than doubled the proceeds donated to Habitat For Humanity in 2008. People dig deeper than you think, in any way they can, and give when you may not expect it. We had agents donating for auction one-week stays at their Tahoe cabins, photography services, local gyms donating multi-month gym memberships, gift baskets, hand-made jewelry, wine, high-end dining discount cards, local businesses offering all kinds of things for raffle and so much more. Time was also a big one. Putting on an event like this takes time and people gave it. Hours, days and weeks. As they say, “time is money.”
After a lot of effort I was driving home on Friday night at 12:25am with a smile on my face. All the way home. It’s fun to watch a room of 40-50 people having fun and knowing they are doing something good. With so much negative news going on in the world it’s nice to be reminded that people are generally good. That there are those that want to make a difference any way they can. Like I said, we don’t have to be Oprah Winfrey or Bill and Melinda Gates to make a difference. It’s cumulative and I look forward to doing it again in 2010. Every year it seems to get better and better.
Thanks to everyone that got behind this and made it a success.
We finish-off Habitat 2009 with our build this Thursday October 1. 14 or so of us will be swinging hammers and helping to construct a Habitat house in Sacramento, CA. Lots of fun.
Good Eats…
A friend and colleague of mine invited me and a few others out to lunch today and it was great! With the way the economy has been…getting asked out to a nice lunch is so 2005. A nice, comfortable place called Roxy Restaurant and Bar in Sacramento, CA – near the Loemann’s Plaza and Pavilions Shopping Center on Fair Oaks Boulevard. Chic without being over-the-top, California cuisine, light and bright with large windows. I had the salmon salad and a cool glass of iced tea. It was great. Check it out if you are ever in that part of town.
http://www.roxyrestaurantandbar.com/
A funny aside about how small the world is. I was chatting somebody up at the bar and handed over my business card. The bartender interrupts and says, “What’s your name?” I said, “Paul Brown.” He said, “I’m buying your listing in Sacramento on XYZ Street…I thought I recognized your picture on your card.”
Small world. You never know who is watching and listening.
Happy dining.
Missing an Opportunity?
I was out yesterday with clients and we were looking at new home communities in El Dorado Hills and Roseville, CA. My clients are only considering a new home – recently completed construction or buying the lot, choosing the model they like and having it built in 4-5 months. That seems to be a general timeframe for a production builder (Pulte, Lennar, KB Homes, etc) to build a house. (An aside: I kept having flashbacks of 2003/2004 when builders used to do lotteries of lot releases. People would show up at 8am on a Saturday morning with their Starbuck’s in hand, deposit check in hand, get a lottery ticket from the new home sales consultant (if 10-20 out of 50 people waiting were lucky enough to get their name drawn out of a hat), the builder would release 10-20 lots and they would ALL BE GONE in 10 minutes. Pick your model, elevation, and the next week it would happen all over again and the price would be $30K more. And it went on and on like this for at least two years.) Not anymore. They are building per demand, usually 3-5 at a time, and not releasing more lots until the existing inventory is gone.
As I was saying, my clients prefer a single story home. They are in the 55+ age range and considering living in an active adult comminity that is designed an caters to 55+ residents. We stopped in to Del Webb “The Club” in Roseville. They had SEVEN single family, single story homes for sale! SEVEN models you could tour right there. It was a no-brainer for them as far as the floorplans, etc. Very nice designs and amenities. One of my favorite moments in what I do is when I see that moment of realization for buyers, that look that says “I really like this.” This community is organized and they showcased options that people could actually see, feel, experience. Seems basic, right? Show us an example of what you are selling.
So, we drive 3 minutes to an adjacent community to look at their options for single story homes. The builder is Lennar. I knew ahead of time we were going so I called them so they knew to expect us. We were seeking a model that we had seen at the company’s El Dorado HIlls community. Just to check it out in Roseville. Like its El Dorado Hills community, there is no single story model to walk through. When asked why there is no model, the answer is “it is too expensive to build.” (I am sure there is a very valid, corporate rationale for this, maybe not). Call me crazy, but when you have a baby boomer generation that is downsizing their home, looking for a new location to retire (getting out of Dodge because it’s overbuilt, too crowded, whatever), very motivated to purchase in a reasonable amount of time, or moving in to a more convenient floorplan, like a singe story home, would you not as a builder ABSOLUTELY have a single story plan to visit? Especially when you are adjacent to a 55+ active adult community and we KNOW that the majority of those folks are absolutely considering buying a single story home. It’s just easier living and a setup that people can age in more easily. This generation is on the move, big-time, this year. I’d say half if not 3/4 of my business this year has been with the boomers. They are making smart, educated decisions for the next 20-30 years. They are not in-over-their-heads with debt, either, so they have a lot of control. Any agents reading this, don’t overlook this generation. They will also be a powerful force, I think, to the national economic recovery.
This is not a swipe at Lennar because they build a very nice home (as far as I can tell, and their sales consultants are informative and helpful). Just an observation. As a former professional in the advertising and marketing business, it seems that a decent amount of business may be being missed. We had to get in the car, go look at the home under construction, and that just doesn’t get the juices flowing for buyers when it’s framed and people have to use their imagination, some. It brought up this question with my clients and it is a very valid one. There is some value to the ‘theater’ of a model home.
I’ll be getting in touch with the builder to see what they say. They may not have to build them because they sell themselves. I’ll post an update after I talk with them.
Coldwell Banker Folsom and Habitat For Humanity
For the second year in a row, I am heading up the fundraising event for the Folsom office of Coldwell Banker Residential Brokerage, benefitting the Northern California chapter of Habitat For Humanity. All of the Northern California offices from the Bay Area and the greater Sacramento region are contributing to the cause in their own way. It is the company’s annual drive for the organization. It is one of Coldwell’s long-time commitments through its foundation, “CBRB Community Foundation.” Over the years Coldwell Banker has raised more than $9 million for Habitat For Humanity and every year just gets better and better.
This year we are putting on a golf tournament at the Empire Ranch Golf Club in Folsom on Wednesday September 23, 2009. $50 per player. 9 holes. Contact me if you are interested in playing. A fundraising event featuring a Texas Hold Em tournament and live auction on Friday September 25, 2009. Too many fun things to mention. $20 buy-in to poker. $5 Casual BBQ-style dinner. $2 Drinks. Auction. ALL proceeds going to Habitat For Humanity.
Cash donations (for Habitat), auction items and raffle items (for the fundraising event)are being accepted and are fully tax deductible. Contact me if you are interested in donating to this great cause and I’ll give you more details.
We are also getting together to participate in a build of a Habitat home currently under construction in the Sacramento area. We’ll be swinging hammers and building on Thursday October 1, 2009. We have a few more spaces. So, contact me if you are interested. Very rewarding day. You will walk away feeling like you did something good for someone who really needs it.
If you are interested in making a donation to Habitat For Humanity to support our efforts, please get in touch with me and I can give you more specifics about how to do so.
It’s good to give.
Keep it cool under pressure.
Short sale. What we in the industry sometimes call the “long sale.” It’s no laughing matter. The short sale is a process where a seller is selling his or her home for less than what is owed on it, and the lender(s) approves the offer and all expenses they may be saddled with settling, over and above the amount of the offer. I’ve negotiated short sales that were $100K short to several hundred thousand dollars short.
In any case, patience on the part of all parties is essential to a successful sale and eventual close of escrow. It seems that these days patience is wearing thin all around. My patience even gets tried at times. With bank mergers (Bank of America aquiring Countrywide, Chase aquiring WAMU, Wells Fargo aquiring Wachovia and countless other mergers) the process has gotten longer. From November 2008 until now (September 2009) the mergers, and resulting integration of acquired loans, accounts and process changes brought things to a crawl. It seems to be loosening up some. I’m currently working with BofA, Chase, WAMU, National City Mortgage and BofA and Chase have so far shown the most improvement with processes and customer service.
It is a process, however. Logic pretty much says that if a ready, willing and capable buyer has a bid on a house, is ready to close it in 30 days, why does it take four months+ to close the transaction? Why do the banks not recognize it and just get the house off their books? Some do. Most do not and I’ve come to understand it as sheer volume of short sale inquiries and requests received on a daily basis by banks is staggering. I heard BofA receives 600+ per day 10 months ago. My guess is it is at least double that today, maybe triple. My average short sale package is 45 pages, per lender, per property. Most homes have two loans. 90 pages, minimum. Times that by 3000 – 6000 packages per week, received by one bank. They may be overloaded. Plus, while a short sale is being negotiated the bank is actively kicking the foreclosure process in to gear, usually contacting the sellers regarding collections proceedings and so much more.
It’s important if you are either selling your home as a short sale or buying one, that he listing agent is really on the ball and is diligent with the banks. The buyer’s agent, too, should be following up inquiring about regular updates from the listing agent and providing updates to his/her clients. Setting expectations. Communicating weekly with clients. With all parties informed it goes much smoother and it keeps the emotions in check. You may be asking yourself, can’t my agent call the bank and get this going for me if we are not getting what we need from the other agent? The answer is, no. And it is simple. Conflict of interest and your agent is not authorized to discuss the seller’s personal loan information with the bank.
Short sales can provide a great opportunity to pay less than average if you have the time to work with the process. Your realtor is likely doing his/her job quite well and it still seems to take quite awhile. There are some that are not doing a very good job and those agents need to be fired. There is too much at stake for buyers and sellers to not expect superior service, these days. Just because short sales are pretty commonplace also does not mean all agents SHOULD be managing them. They require one that is a student of the business and takes the time to keep up with the ever-changing nature and processes. They change weekly, it seems. I spend quite a bit of time listening to the lawyers at Coldwell Banker headquarters in San Ramon, CA and our experts in Southern California keeping up on this stuff. Short sales are no fad and they will be around awhile. Align yourself with someone that knows what they are doing.
Short sales is one area of expertise for me and there is much to know about them. They are very different from a foreclosure. Nothing like a regular Active sale. Questions? Ping me and we can talk more. I hope this was helpful for you.
Home Prices on an Upswing, Q2 2009
Prices may be making a turn for the better, according to the S&P Case-Shiller Home Price Indices. See the attached press release and supporting graphs and information. It’s interesting. This real estate downturn has been full of surprises. I do think that the time is here, that the market has bottomed-out more than it will continue to slide. The thing to remember is these are national figures and there are two composite city indexes. Local market conditions HAVE to be factored in. There is a massive difference between the San Francisco market and Sacramento and others. The recovery I see is coming back in micro-markets, towns and cities, and even down to neighborhoods. Also, I think that foreclosures are driving these sales figures. Foreclosures in the greater Sacramento area are fueling more than 65% of sales and multiple bids are almost a sure thing. One home I represented a buyer on recently had more than 20 offers and sold in one day. Very common in the $200,000 price point and below. Give it a read and let me know your thoughts. I think we are so close to heading out of the rough market. 2010 should be the beginning of a slow and steady recovery. http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_082562.pdf
The Move-Up Buyer.
I’ve noticed in recent weeks that the move-up buyer is starting to come out of the shadows, so to speak. Who is a move-up buyer? Someone who likely purchased their home long before the market correction, has a decent amount of down payment cash in the bank, manageable mortgage debt and who recognizes the opportunity that a larger or different home can be purchased for much less than a few years ago. Based on my experience, the current attitude overall is that the bottom of the market (at least in the greater Sacramento, CA region) is near or here. Some think that there is more declines to come and I can’t say with absolute certainty that this will be true. Just no way to know. My general feeling is we’ve been and will continue to bounce along the bottom of the market for some time. Maybe 18 months or so. No big upswings or downswings in home values. If you have any questions about moving up, give me a call. There are strategies to making it an effective decision. I’m here to help.
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