The Real Folsom Blog

New Way To Tap in Your Home Equity

You may want to check out the interesting article in today's Business Section of the Sac Bee entitled Slicing up home equity pie, which takes a look at a new real estate investment group that is offering homeowners cash in exchange for a percentage of their home's future value. Rex & Co. basically offers qualifying homeowners cash based on the home's value today in exchange for sharing a percentage of the home's value when it's sold.It's sort of like a home equity loan but without the monthly payments. As with all deals involving money and your house (and home), you should always read the fine print very carefully and not sign anything unless you truly understand how the deal would play out under different scenarios. You can find more information on Rex & Co.online.

Recent Folsom Home Sales October 28

And, now for your weekly fix of recent homes sales, here are the most recent Folsom home sales, as recorded by our local multiple listing service. These properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

• 418 Pemberton Ln (2 bedrooms/2 baths, 1249 sq feet) sold for $325K at 100% of list price, $260 per sq foot.
• 810 Willow Creek Dr (3 bedrooms/2 baths, 1695 sq feet) sold for $340K at 100% of list price, $201 per sq foot.
• 1262 Darling Wy (5 bedrooms/3.5 baths, 2774 sq feet) sold for $410K at 95.37% of list price, $148 per sq foot.
• 297 Hornsby Ct (4 bedrooms/3 baths, 1834 sq feet) sold for $459,900 at 99.98% of list price, $251 per sq foot.
• 1117 Kingfisher Cir (4 bedrooms/2 baths, 2006 sq feet) sold for $512K at 97.99% of list price, $255 per sq foot.
• 152 Temperence River Ct (4 bedrooms/4 baths, 4000 sq feet) sold for $825K at 63.71% of list price, $206 per sq foot.

If you have any questions or comments about the current real estate market in Folsom, drop me a line.

Lenders Guidelines Are Changing--How Will It Impact You?

This week, guest blogger Barbara Van Duyn of First Priority Financial takes a look at how you may be impacted by the recent announcement by some lenders that they are implementing new guidelines regarding residential appraisals. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you. 

Due to current economic conditions and declining property values, some lenders have announced the implementation of new guidelines regarding residential appraisals in areas that have been identified as “declining markets.” Folsom, as well a most of California has been included in this designation. The result is that residential appraisals will be scrutinized even more closely by your lender to ensure the appraiser’s findings are deemed appropriate and sufficiently supported. If a lender is not satisfied with the appraisal report, they may request additional information from the appraiser and/or modify the value. If value has been modified lower, it will affect your Loan to Value (LTV) ratio and could impact the loan program you are applying for. If you are considering a real estate transaction in the future, you should discuss these changes and how they may impact you with your appraiser and mortgage professional in advance. 

All the Best… Barbara

TGIF! And, here are a few fun things to look forward to this weekend in Folsom.

• Craft Fair and Bake Sale on Saturday at the Folsom Community Center, 52 Natoma Street. 10 am to 3 pm. Hosted by the Folsom Women's Club their annual fair will also offer hand made holiday decorations, household goods, toys, jewelry, and baked goods.
• Kids' Trick or Treat on Historic Sutter Street on Saturday between noonand 3 pm. Look for the bright orange poster in the window of participating merchants.
• Abracadabra! On Sunday see international award-winning magicians Michael and Karen Rappa entertain the whole family at the Folsom Community Center from 5 to 6 pm. Call 916-355-7285 for ticket information.

Keep Both Eyes Open for These Hidden Home Defects

No home is flawless (even in our lovely Folsom), but certain physical problems can be expensive. Those of us who have owned several homes have learned probably the hard way about these hidden home defects that can explode like tiny time bombs at the worst time. First-time home buyers in particular should train themselves to look for the following signs as they go about their home search:

1. Water leaks. Look for stains on ceilings and near the baseboards, especially in basements or attics.

2. Shifting foundations. Look for large cracks along the home’s foundation.

3. Drainage. Look for standing water, either around the foundation of the home of in the yard.

4. Termites. Look for weakened or grooved wood, especially near ground level.

5. Worn roofs. Look for broken or missing copings and buckled shingles as well as water spots on ceilings.

6. Inadequate wiring. Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.

7. Plumbing problems. Very low water pressure, banging in pipes.

Final thought: you should always, always have a home inspection done before you purchase a home. Several of the problems above would be flagged by a competent licensed home inspector. And, if problems were identified, you would then want to have a specialist come in to evaluate the problem and give you an estimate on what it would cost to repair.

News Is Mixed for Folsom Real Estate in Sept

Just released by the Sacramento Association of Realtors: the numbers for single family home resales in September in our area. Here's what we have for the Folsom real estate market:

• Total sales in Sept: 32, down from 58 in Aug and from 68 in Sept 06.
• Median sales price in Sept: $458,500, up from $439,450 in Aug but down from $462,500 in Sept 06.
• Monthly listing inventory was down: 99, compared with 130 last month and 126 in Sept. 06 (good news for sellers who will have less competition but not so good news for buyers: less choice).
• Monthly Median listing price: $449,000, down from $473,950 in Aug and from $547,250 in Sept 06 (the lower price shows that sellers just putting their homes on the market are getting more competitive with pricing--if your home has been on the market for a while take note. The Sept 06 median listing price shows how dramatically prices have dropped--that's nearly a $100K drop).
• The Total Listing Inventory was at 356 for Sept, versus 384 in Aug.

That's it for today. It's a gorgeous fall day in Folsom, so enjoy. And count your blessings! We at least have real estate underfoot unlike many of our SoCal neighbors. One way you can help is by donating to the American Red Cross. You can select to have your donation go directly to support their relief efforts of the California Wildfires. Just go to American Red Cross.

Recent Folsom Home Sales, October 23

And, now for your weekly fix of recent homes sales, here are the most recent Folsom home sales, as recorded by our local multiple listing service. These properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

• 125 Briarcliff Dr (3 bedrooms/2 baths, 1105 sq feet) sold for $305K at 101.67% of list price, $276 per sq foot.
• 230 Flower Dr (3 bedrooms/2 baths, 1258 sq feet) sold for $39K at 99.74% of list price, $269 per sq foot.
• 107 Cobble Ridge Dr (3 bedrooms/2.5 baths, 1677 sq feet) sold for $375K at 96.15% of list price, $224 per sq foot.
• 1599 Ballou Cir (4 bedrooms/2.5 baths, 1905 sq feet) sold for $375K at 90.06% of list price, $197 per sq foot.
• 353 Marsalla Dr (3 bedrooms/2.5 baths, 1423 sq feet) sold for $383K at 96.99% of list price, $269 per sq foot.
• 105 Cannington Ln (3 bedrooms/2.5 baths, 1973 sq feet) sold for $427K at 92.85% of list price, $216 per sq foot.
• 451 N. Lexington Dr (4 bedrooms/2.5 baths, 2020 sq feet) sold for $445K at 99.11% of list price, $220 per sq foot.
• 1025 Glennfinnan Wy (3 bedrooms/3 baths, 2887 sq feet) sold for $525K at 100% of list price, $182 per sq foot.
• 1487 Berriedale Ct (4 bedrooms/3 baths, 2568 sq feet) sold for $610K at 96.21% of list price, $238 per sq foot.
• 1840 Applecross Ct (4 bedrooms/3 baths, 3095 sq feet) sold for $650K at 97.16% of list price, $210 per sq foot.
• 1733 Bathgate Ct (5 bedrooms/3 baths, 3721 sq feet) sold for $660K at 94.29% of list price, $177 per sq foot.

Well, even though we've reached that time of year when sales tend to slow down (summer being the traditional peak season), in Folsom, at least, sales have been continuing at a steady pace and the homes are getting close to their asking price. If you have any questions or comments about the current real estate market in Folsom, drop me a line.

Folsom: Who We Are

Boy has this town grown fast! It was just barely seven years ago that I was taking the E. Bidwell exit off of Highway 50 and driving down E. Bidwell--all of one lane wide in each direction. In reality, the road at that point has several lanes more but they were not yet open for business. Now the road seems to be ever widening and we've had quite an influx of new residents. So who are we now in Folsom? Here's what I found on the City of Folsom web site: our population is at $62,945 residents, with a predominance of men (55.2%) over the ladies (44.8%). Our median age is 35.9 years and we have a nice median household income of $73,175. Ethnicity-wise, here's how the numbers break down: Caucasian-74%, Hispanic-9%, Asian-7%, Black/African-American-6%, and other-4%. We are well-educated: 19.1% of us have a high school diploma, 25.7% have a bachelor's degree and 11.9% have a graduate or professional degree. Can't wait to see what the next 10 years bring...

Is There Such a Thing As a Tax Fairy?

This week, guest blogger Barbara Van Duyn of First Priority Financial covers a topic close to all our hearts (and wallets)--taxes. If you have any questions you can reach her directly at Barbara@VanDuynGroup.com and tell her Anne sent you. 

By now you should have received your property tax bill for the 2006-2007 tax period. For many of you the bill is for reference only because your lender collects a monthly tax payment and remits your semi-annual installment for you. The rest of you have the pleasure of writing that big fat check twice a year. Under Proposition 13, our annual property tax increases are limited to 2 percent per year for inflation. That’s a good thing, especially in past years when we were enjoying double-digit property appreciation. Unfortunately many of us have seen some of that appreciation disappear. Proposition 8 amended Proposition 13 to allow property values that have suffered a decline to be reassessed. As a result, the Assessor is required to enroll a property’s Fair Market Value, as of January 1, if that value is less than the Base Year Value plus inflationary adjustment (Proposition 13 value). Those of you living in Sacramento County are fortunate to have a tax assessor who is proactive in this regard. He announced this summer that approx 50,000 homeowners in his County would be receiving a notice of reassessment. Although the values of many properties may have suffered a significant decline during the current housing recession, not all will qualify for a Proposition 8 reduction. The current Fair Market Value must fall below the Base Year Value plus inflationary adjustment (Proposition 13 value), before it will affect the assessed value. If you purchased a home in the past two years, you’re more likely to qualify for a reassessment. This link will take you to the Sacramento County Assessor’s website for more information and how to request a Prop 8 re-assessment, http://www.assessor.saccounty.net/index.htm. 
All the Best… Barbara

Sacramento Fall Home Show Starts Tomorrow

Been thinking of remodeling or doing some needed home repair or maintenance? It might be worth your while to check out the Sacramento Fall Home Show, which starts Friday at noon and runs through Sunday. Many of the vendors will be offering discounts and bargain to attendees. So if you're about ready to put that new wood floor in, check out the home show this weekend. And even if you are not planning any renovations, the show is a good way to get some remodeling ideas for the future. Admission is $6 for adults. If you bring a canned food item for KCRA Channel 3's Kids Can campaign, you can save $1. The show is at the Cal Expo Pavilion, 1600 Exposition Boulevard in Sacramento. You can find more info at www.sachomeandgardenshow.com.

Enjoy!

Another Bumpy Housing Year in 2008?

2007 has been a rough year for the housing market in the Sacramento area. And Folsom hasn't escaped the downturn in home sales either. So what does 2008 look like? The California Association of Realtors, which studies such things, has just released its forecast for 2008: modest declines in home prices in 2008 and a stabilization of sales of existing homes. According to CAR, the median home price in California will decline 4 percent in 2008 and sales will decline 9 percent compared with 2007. This forecast comes with a word of caution: if the current liquidity crunch doesn't ease up or if the interest rates unexpectedly increase, sales in 2008 could decline more steeply. Unfortunately for Folsom and the greater Sacramento area, regions like ours, which are more affordable, will experience greater softness in the resale market because of the large number of new homes coming on the market in recent years.

Bottom line: if your are not a serious seller, don't put your home on the market. Now is not the time to test the market if you are not committed to getting your house sold.