HAPPY NEW YEAR 2023 !! 

Well, we're off to a "blustery" start of the New Year with rain, winds, flooding and trees down.  Maybe this was meant to be a time to sit back, relax and re-evaluate what we're going to do in 2023 to make it a great year.  Some individual agents are posting they had 40-50 transactions and it was a fabulous year for them and their clients.....and other agents are posting that it was their worst year ever.  So we've got the good and the bad and everything in between!   What we're sure of though,  is that home values in our area have diminished a little....8% ish......and interest rates have inched up there a bit...now into the 6-7% range.  But people are always buying or selling for one reason or another.  Job transfer, need a bigger or smaller home,  divorce, mom or dad moving into a senior residence.....????  so people always seem to have  a reason to buy or sell.  And real estate has "always" proved to be a great investment.  Oh yes,  we've had a couple of times in the past 40 years where interest rates were at 17% (I remember it vividly when I first started in the business)  then again when we were deluged with short sales when the market went into the *&$$&*......remember?  There were many reasons for that but I'll go out on a limb and say it's highly unlikely that will happen again in the near future.  Some folks buy homes for "investment" purposes only, then flip them.  Most people though,  buy their homes to raise their family and want to "stay awhile" unless their family circumstances change.   I think 2023 is going to be a great year,  so whether you're looking to sell your home or buy another one, call me.  I'd love to help you....we'll find just the perfect house for you! (916)  768-3157

May 19, 2022

CAN I STILL GET A FORTUNE FOR MY HOUSE??????

Our market is still favoring sellers, no question about it.  The rise in equity from last year to this year is amazing!  Good for you if you bought your home 2 years ago, because now you've seen at least a 25% increase in equity, and probably more.  The "less than" stellar news is that we're seeing more and more open houses each weekend, which means, in my opinion ....... sellers were getting too aggressive in their asking prices and now they're  forced to have open houses every weekend and sometimes 2  or 3 each week....in the hopes of getting that coveted buyer who has to have lots of cash to put down in order to qualify at today's interest rates.   In our market here in Land Park (and East Sacramento for that matter) $700k seems to be the median price.  Yesterday on tour we saw several "fixer upper" homes with old carpeting, brown and gold tile and old windows, next to the freeway asking $789,000!!!  Now yay for that seller if they get it, but a buyer has to think about having to listen to the roar of the freeway, let alone the cost of bringing the property up to standard.....and I don't even mean a fabulous remodel.  That's just refinishing the floors and remodeling the kitchen and bathrooms....and painting.  And the backyard was icky to boot!

My suggestion......and one that has held true for the past 30+ years,  is spruce your home up.  De-clutter,  add fresh paint,  fix up your yard,  and stage it a bit ..... then price it just a titch under what your Realtor thinks is the best price (based on the comps). Generally, that means you'll get lots of interest and multiple offers!  Don't  think that having finger prints on the walls,  lots of family photos, old carpeting and lots of clutter is going to get you top dollar.  At these prices, no one wants to buy a home that smells like a wet dog or they have to totally remodel UNLESS, of course,  the price is right and it's a great buy. That's different.  But statistics show that just giving your home a fabulous cleaning,  maybe some fresh paint inside and de-cluttering will make a BIG difference in how much activity you'll get on your home and what kind of offers you'll get. And don't overlook your front porch and entrance....fresh bark or soil and fresh flowers make a home look "inviting"......and make sure your threshold and front door are freshly painted and pristine.  Buyers are very savvy these days.  Don't under-estimate the research they've done before heading out to view homes.

Regardless of interest rates,  folks are always buying and selling for a multitude of reasons.  Death, divorce, job transfer, moving out of state....be diligent and prudent whether buying or selling.  And pick an experienced professional Realtor to help you!  It's money in the bank whether you're looking to buy or looking to sell.  If you have questions, feel free to call, email or text me anytime! I'd love to help you. PATTI MARTINEZ  (916) 768-3157  PATTIMARTINEZ.NET   pmartinez@golyon.com  

REALTOR EMERITUS.

LOOKING BACK ON 2020

 What a year it was....2020 !!!  The market was red hot and when properties came on the market they sold like hotcakes!!!  Most sold wayyyyyy over asking price because of the low inventory and all the buyers wanting to take advantage of incredibly low interest rates.  Who could blame them!  Offers and showings weren't without their challenges though.  Sellers were thrilled at all the big bucks $$ they got and all the offers, but they had to vacate the property when buyers came.   We have to have booties,  gloves,  sanitizer, signs .... all kinds of things in order to keep everyone safe.  We have to have  PEAD forms that are submitted to listing agent BEFORE we show a property (that show buyers/agents aren't sick and don't have COVID)  and only a few at a time are allowed inside the home during the showings.  Pre-approval letters for the buyers are required almost universally too. These incredibly low interest rates from 2.0 to 3.2% were too good to pass up,  so buyers were out in droves.  In-person Open Houses were not allowed....virtual open houses became the norm.  It still wasn't the same as viewing the property in person,  but at least it gave the buyer an idea of what the inside and outside of the property looked like.  Oftentimes though,  it didn't show if the house backed up to a busy street or a nice park.  You couldn't tell what the other homes in the neighborhood looked like either.   

Case in point:  I saw a listing on MLS that looked like a great buy for the money and a good location near a beautiful Country Club.  When I clicked on the "map" icon for the listing it showed exactly where it was located, but did NOT show that the house directly next door looked horrible!  I've driven down that street several times being I have a friend closeby,  and I've always noticed the house next door that looked so terrible.  It looks abandoned and vacant with all the trees and bushes covering the front and sides of the house.  But there are always cars there,  so someone must be living there.  Imagine what a buyer feels when they drive up and see that horrible house next to the nice one that's for sale.  What a shame that the condition of "that" house could affect the value of the one that's for sale.  But that is probably exactly what's going to happen.  My story is a little "off point" of this article,  and the house will probably sell, regardless, because of low interest rates and low inventory,  but my guess is that the homeowner who is selling,  is going to take a hit on value because of the condition of the property next door. What a shame.

The prognostication is that 2021 will continue to be a hot real estate market for sellers.  It should be a great time for buyers to buy a home as well, due to low interest rates,  but it's going to be a bit of a challenge for buyers again this year because of our low inventory.  

A note to potential sellers:  Get your home on the market if you're even remotely thinking about it. Call or text me 916-768-3157 or call the Realtor you've used before.  Ask for a  market analysis showing what the current market value is of your home....it's free and your Realtor will be happy to provide it to you.  You will probably be surprised and thrilled at what it's current market value is.  If you aren't working with another Realtor,  I'd love to help you.  I've been listing and selling real estate for 40+ years now and love what I'm doing.  Or pass my name and contact information along to anyone you think of who may be thinking of selling.  I'd love to help them too!  PATTI MARTINEZ, LYON REAL ESTATE

Virtual tours of our listings

I just read an interesting article in the Wall Street Journal's "Mansion" section that comes out on Fridays and was surprised to see that, even though we're just starting to have virtual home showings here on the West Coast, it seems that it has been very "normal" on the East Coast.....and has been happening for many many years......especially with high-end properties and buyers from out of the country.  

As a long-time Realtor (40+ years) I've seen so many changes over the years, not only with the contract but with all aspects of previewing, showing, listing and selling property.  We used to carry around a 5 pound "MLS book" where we could look up all the listings, but it wasn't "up to the minute" like our instant MLS is now.  Now we have apps on our phones and iPads where we can not only pull up every single listing but apps that allow us to write our contracts online and immediately get signatures through doc-u-sign.  When fax machines first came out I remember agents standing around this little machine totally in awe seeing printed pages coming out from our clients, lenders or title companies.  Now, you're lucky if you can even "find" a fax machine!  It's e-Fax that comes directly into our phones and email.  A revolution! What an improvement.  

Whether agents hire a professional company to come out and take the videos (like we do when we hire a professional to do our "still" shots) or whether they use their iphones to "facetime" their clients as they walk through a property, it has changed the real estate business tremendously.  It's nice to be able to have an idea of what the home has before you actually walk thru it....like whether bathrooms and kitchens are updated,  size of the backyard,  window placement.  Sometimes the verbage agents put in their MLS descriptions don't always coincide with reality if you know what I mean.  One person's idea of "updated" .... may, to someone else, say "omg, this kitchen needs a re-do" !!
And videos also help you decide whether you even want to bother making an appointment to view,  and that saves not only you, but the sellers time as well. Sellers don't appreciate lookie-loos coming through their homes if they aren't serious buyers who have been preapproved and have an idea of the neighborhood and amenities the property offers.  Especially in their Covid19 atmosphere!

If you're in the market to buy or sell a home,  take advantage of everything these apps offer before you start calling your Realtor for an appt to view a home.  Weed out those you don't like and narrow it down to the neighborhood, price, schools, amenities or any other criteria that is important to you and or your family. And most importantly,  be sure you've met with a lender to get pre-approved for a loan,  as almost all agents and sellers are requiring that before they'll allow showings.  You'll be doing yourself a big favor. The best of luck to you!  Feel free to call or email me if you have any real estate  questions. I'd love to help you however I can.   pmartinez@golyon.com    (917) 7687-3157

Multiple Offers

MULTIPLE OFFERS

In the real estate market we're experiencing right now it has been a huge challenge for buyers.  When a property comes on the market in their price range,  it's not been uncommon for the sellers to procure 3,4,5 or more offers on it.....leaving the buyers to wonder what they "could" have done to have been the successful purchasers.  Even though this predicament isn't limited totally to the lower priced homes,  those in the $600+ range are oftentimes also not exempt from this dilemma.  So what "could" they have done to improve their offer?  Sometimes nothing.

For example:  I  just listed a home for $299,000....a very affordable home in a nice little neighborhood.  Within 3 days we had 6 offers.  Because of the price point,  almost all of the offers were either FHA or VA.  And all except one offer buyers had minimum down payment BUT all had pre-approval letters attached to their offers,  so theoretically all could qualify.  So one would think that they were all very comparable and a challenge for the seller to pick just one.  The one offer she did take though,  was not an FHA or VA offer and the buyers had a nice large downpayment .... with a 17 day closing and they had removed all of their contingencies when they made the offer.   Now, I'm not saying whether this is a good idea for a buyer or not.....there are so many variables like:  is the buyer handy?  a contractor? going to do major remodeling? there are many reasons why a buyer would remove all of their contingencies at the time they wrote the offer and it is entirely the buyers' prerogative if they elect to do that.  So it wasn't a hard decision for the seller when she accepted this offer.

On the other hand,   I had mixed feelings when I had to contact the other agent's to let them know their buyers did not get the home.  I told them that every one of the buyers produced pre-approval letters and several submitted very touching heartfelt letters to the seller, expressing why they wanted to purchase her home.  Both the seller and I expressed our wish that we had 6 other homes in the same neighborhood in the same price range so that each one of those buyers that wrote offers could also be a successful purchaser and get a home!!  I think sometimes buyers and the public thinks sellers are just out for the most money and that agents present the offers then move on to the next sale and escrow.  That is just not the case. 



In the market we're experiencing today and with all the politicians  talking about more housing needed, I sometimes feel that the homeless (who don't have jobs and can't qualify for a home) get more attention than those working class folks who have saved enough for their down payment,  have a job and are desperately looking to buy a home, are sometimes left out of the mix.  Why don't builders build more "affordable" homes that working class people like those who offered on our $299,000 home want?  That doesn't mean I have no feelings about the housing needs of the homeless, I definitely do.  But don't overlook those who are working hard, saving some money and can qualify for an affordable home!

All I can say to those buyers out there....keeping looking.....have an agent working hard on your behalf....and don't give up!!  Keep savings,  get pre-approved and hopefully with our spring market looking good, you'll find just what you're looking for!  That's my wish for you!

PATTI MARTINEZ.NET       pmartinez@golyon.com

PRICE INCREASES SLOW AMID SURGE IN INVENTORY

MARKET ADJUSTMENT $$$$$$$ DOWNWARD???
All news reports and agents are noticing our "adjustment" in the market.  Headline in the SF Chronicle the other day said "Rise in home prices slows amid big surge in inventory".  And it's not just in the Bay Area.  It's here in Sacramento too.  We started seeing it a couple of months ago but now it has become obvious to not only agents, but buyers and sellers alike.  You can't pick up a newspaper without seeing a headline (however small) stating the real estate market is cooling down a bit.  Even San Francisco is seeing their average selling price drop to under $1M..... there is, however,  a gap between sellers who are trying to extrapolate out what they have seen in the past three or our years in price increases ..... and buyers who now have more options and inventory to choose from".......exact words from the business write for the SF Chronicle yesterday.

The challenge we Realtors are facing today though,  is convincing sellers who really want to sell, to make that price adjustment now in order to reap maximum profit as opposed to holding on to what they "think" their property is worth,  and ending up getting less in the long run.  You really have to rely on your Realtor's expertise when they advise a price reduction if your property has been on the market a month or so  (or even just a few weeks).....because we're watching MLS and the market every single day and are watching the inventory grow.  Sellers have more competition and buyers have more homes to choose from.  Besides sellers being realistic about their price, they also have to be the home that shows the best!  For sellers who aren't convinced,  they should ask their Realtor to show them other homes they are "competing" against.  Sometimes that's an eye-opener.  The adage has always been and will remain,  price it right to begin with and you'll end up getting more money in the long run than you would if you try to "outsmart" the market and believe you can "always come down" on your price.  After 40 years listing and selling homes,  I can absolutely say with certainty that it doesn't work that way.  Once you've been on the market a while at an unrealistic price, and you reduce it and reduce it,  buyers for some reason (even if that isn't true)  think there must be something wrong with the house.  When indeed, there probably is not.  It was just a mistake to start too high.

* Thinking of selling and want to price it right and get it SOLD?  Email me for a free market analysis of your property...or I'll be happy to try to answer any of your real estate questions!  pmartinez@golyon.com   or PATTIMARTINEZ.NET

Starter Home or Forever Home?

This weekend's New York Times had a very informative article titled "So Much for the Starter House".....and it went into an explanation of why so many folks are opting to stay in their homes and remodel, as opposed to moving "up" into a larger home or better neighborhood.  Much of the article hits home as it goes into detail about why a lot of people make the choice to "not" move up. For example,  many millennials are saddled with student debt and are buying their first homes later in life.   And, with inventory very tight, home prices are higher and interest rates have been rising.

Frequently,  when a young couple bought their first home, it was a "starter" home where they thought they'd probably stay for a few years,  build up some equity, sell that home  then buy in the neighborhood they "really" wanted to live in.  Their "forever" neighborhood and home.  Well,  statistics show that hasn't been the case these past several years.  According to the National Assoc. of Realtors,  folks are staying in their homes for an average of 10 years......when, historically, that number used to be 6 years.

Being I've been listing and selling homes for 40 years now,  I tend to believe much of what was stated in this article.  Wages have increased, but so have home prices.  When I first started in the real estate business I could barely even say "$100,000" !!!  Now, all these years later,  you're lucky if you can even find a home for $100,000.  It would certainly be a challenge to find one in California anyway.  And when 2 bedroom homes started selling for $200,000 in Land Park my first thoughts were "no way"!  Well,  "yes, way".........and when the first home on my block sold  many many years ago for $400,000  none of us could even believe it!  You would have thought it was a million dollars.

As a result of buying in what one might think of as "not their first choice neighborhood",  they're seeing a great resurgence of others doing exactly the same thing.  Not only are buyers moving in and sprucing the house up,  new businesses and restaurants are moving in as well.
Folks are moving in,  painting, remodeling and fixing up their "starter" homes.   I've seen it in several areas right here in Sacramento.  With rents going sky-high,  it makes sense to buy a more modest home where your payment probably isn't going to be much more than what you'd pay in rent someplace.  Really!   (Especially if you've checked out what some of the lofts and/or small apartments are being rented for in downtown/midtown Sacramento!)  And,  you'll be gaining equity in owning your own home.  And taking pride in your new neighborhood.   And,  if the New York Times article is correct,  you're going to stay there for close to 10 years.

Yes,  when families grow, their housing needs grow too....so there will always be "move up" buyers. And there will always be divorces and older folks moving into senior housing or moving closer to their children,  but knowing that there are still "marginal" neighborhoods that appear to be "up and coming" is wonderful for those seeking to buy their first home.  And who knows,  this may be their "forever" home as well!

If you're looking to buy or sell...or have friends or relatives who are, call email or text me. Or if you know someone who is being relocated and needs a great Realtor in the city they're moving to, I can help you with that too.  I can put them in touch with a Realtor in the city they're moving to!