Fix Up Your Home Before You List and Pay When It Sells! 107924606

Hear Greg Nichols discuss this service 

in this video! (5 minutes)

Do you need repairs or updates before you list your home? 

Home Sellers:  73% of sellers make at least one home improvement before selling. Now, you can spruce up your home using professionals and pay when your home sells. Do some fix up before you list the home, then pay from your proceeds. This has proven to help your bottom line when selling. Whether painting, or re-doing the floors, or working on the curb appeal, Greg Nichols at MFN Realty has a contact service that can get you ready to sell and you can defer the payment using no credit check, no up front OR hidden fees, just pay from your home equity later at closing. 

If you plan to sell, call us today for a consultation on what you need done.  I can look at it for you and advise you on a plan to move forward. No job is too small, so if you don't need much, this program can help you anyway.  

Greg Nichols

MFN Realty

916-580-7235

DRE # 00632894

mfnnetwork@gmail.com

A Licensed California Real Estate Broker

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Foreclosure Warning in Our State and Region! 107924606

Moratorium on Foreclosures,  Hot Real Estate Market  

Foreclosure Warning to Sacramento, Placer and El Dorado Counties

Recently, the current Administration announced an extended moratorium until June on foreclosures to help people who have been affected by the lockdowns and closure of businesses.  This is bittersweet for those people because it gives them a short term solution and relief, but sadly, many of them will lose their homes. Once the moratorium is over, the lenders will be sharpening their pencils and carrying out foreclosures in mass. My firm is getting the word out to unsuspecting homeowners to be careful not to become too entrenched in the late mortgage issue. If they are a few months late, their credit has taken a hit already, and even though they have enjoyed no payments to help themselves survive, they may be putting their equities at risk if June gets here and they run out of options due to credit issues.  

Hot Real Estate Market  

Today's real estate market is without comparison in recent times. The prices have also never been higher in our area. Properties often sell in 1 or 2 days time, with multiple offers, and buyers at times are even unwilling to ask for simple repairs or demand a whole house inspection or termite clearance. It is a tight market. (We do still get them inspections and their contingency period, it is just at their own nickel.)  The buyer's attitudes now are, not "get me a good deal," but rather, "do what it takes to not lose this house." People are over bidding, and this requires very hard looks from appraisers, who still seem to bring in the appraisals probably 90% of the time. All cash buyers eliminate this issue and sellers are hoping for all cash buyers. 

Call us today if we can help you or someone you know navigate this tricky marketplace. We do excellent work, and I have much experience solving problems for people, including handling probate, divorce, fixers, permit, code, multiple sellers, and other issues, and always getting our sellers top dollar, and helping buyers win and obtain their dream homes. 

Greg Nichols

MFN Realty

916-580-7235

DRE # 00632894

mfnnetwork@gmail.com

A Licensed California Real Estate Broker

The Internet Firms Are Listing Old Information! 107924606

The Internet Firms Are Listing Old Information!

It is very frustrating to have 4 different buyers all call you as an agent with a list of bogus listings of houses to look up. I won't name any names, but we all know who those Internet firms are that create these lists. These firms allow buyers to sit at home in their pajamas to look over houses. Now sometimes, they are actually accurate. Often, they are not, with the home having been sold about 3-4 years prior. I am referring to Trulia, Zillow, Realtor.com, Redfin, and others. 

Furthermore, many of their listings are not only old sales, but were never on the market at all. If an individual agent did this, it would be a punishable crime. It is "bait and switch." These firms are seemingly untouchable by the regulating authorities or the agencies just don't care. 

These firms are in the business of making the phone ring for agents who pay them money to get unsuspecting buyers to call the agents, and when they call, the agents who take the calls have a much more sparse selection of homes to share, a selection that more represents the true reality of the marketplace. These agents are actually paying and supporting these firms to use unscrupulous tactics, and, these agents know they are doing it.   

Sadly, I have also noticed many real estate agencies also leaving very old sales on their own lists as "Active" to also make the phone ring. Buyers have not totally realized what kind of damage this "come on" marketing does, as it tends to skew the buyer's perception of just what kind of a market we are in.

A buyer simply needs to hook up with an honest agent who will run a computerized list of the true market and actual "available" homes. We at MFN Realty can do this list for you and we can make sure you get the latest new listing in your desired area sent to you instantly by email as they are entered into the system.

If professionals play games with the truth in business, then who knows what other truth they will bend? Food for thought!

Greg Nichols

MFN Realty

916-580-7235

DRE # 00632894

mfnnetwork@gmail.com

A Licensed California Real Estate Broker

We Can Sell Any Home No Matter the Issues! 107924606

Fixers, Probates, Trusts, Code Issues,

Permit Problems, Inheritance Homes!

We Can Sell Any Home!

I have years of selling properties with issues: family trusts, fixers, family properties, probates, foreclosures, code violations, permit problems, short sales, divorce forced sales and inheritance properties with problems. Call me if you or a friend or loved one needs help with selling a piece of real estate for the "most value possible" in Sacramento County or Placer County areas! I take care of our sellers, and we have a waiting list of buyers. Call us at 916-580-7235 Greg Nichols, Broker of MFN Realty, #00632894

Greg Nichols

MFN Realty

916-580-7235

DRE # 00632894

mfnnetwork@gmail.com

A Licensed California Real Estate Broker

More and Higher Offers with Our Service! 107924606

Our System Can Enhance Your Bottom Line As a Seller!

We have set up a proprietary marketing arm online in the SF Bay Area to display your home to millions of additional people over and above the Sacramento Valley people we show it to. This costs you nothing extra, we pay for this. 

Call us today to discuss selling your home. 916-580-7235

Greg Nichols

eXp Realty

916-580-7235

DRE # 00632894

greg.nichols@exprealty.com

A Licensed California Real Estate Broker

A Blog to Help Buyers and Sellers Understand the Marketplace! 107924606

We Sell Homes With Issues, Permits, Codes, Trusts, Etc!

This is a blog to help homeowners and home buyers figure out and get a handle on what exactly is going on in the marketplace in Sacramento, Placer and El Dorado Counties.  We will share many expert sources with you and give our opinion too.  Is there a downturn coming?  When will it begin?  Should I get my house sold now before it's too late?  Should we wait to buy another home?  These are questions we hear. 

No one in the industry knows the future, but past history, certain indicators, and basic real estate principles can help you make decisions as you become more savvy about the market and real estate.  My goal is to help my blog readers become more knowledgeable and gain some understanding so that they make more educated decisions and lose less money in real estate over the rest of their lives. Does that sound fair?  Some may use this blog update to launch a career in house flipping or more conventional real estate investing.  You can subscribe with us to receive the updates if you would like. 

A Few Critical Inspections in a Home Purchase Transaction

There are a few inspections that no home sale should be without, except in cases of the most knowledgeable buyers such as property flippers.  But even most of the flippers want to see at least a pest inspection.  Most consumers desperately need at least 2 inspections: a Pest Control Inspection, and a Whole House Inspection.  A few weeks ago, I covered Pest Inspections here.  On this blog entry, I will discuss Whole House Inspections. 

What is a Whole House Inspection Report?

"Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections. The inspector prepares and delivers to the client a written report of findings. A professional home inspection is an examination of the current condition of a house."*

*Source: Wikipedia, the Free Encyclopedia, Home Inspection page, https://en.wikipedia.org/wiki/Home_inspection

From Greg:  Last time we discussed termite inspections and the Whole House Inspection is another critical inspection done during an escrow to protect the buyer.  The Whole House Inspections did not even exist When I began in real estate.  The buyer and I would go check over the home right before closing to find a fix list and then present it to the agent of the seller.  The industry has certainly come a long way to do things better.  The inspection is now done by an expert.  It can cost anywhere from $250 to $400, depending on the inspection firm, and the buyer usually pays for it at the time it is done.  It is done early in the escrow, before the contingency lapse time, so a buyer is not obligated to buy the home if something earthshaking is found by the inspector.  It also allows time for buyer and seller to negotiate through their agents over what findings on the inspection are valid and unacceptable to the buyer and should be done by the seller. 

Items inspected by a home inspector are the electrical, plumbing, roofing, appliances, and many other items too many to list.  It is a totally comprehensive inspection and report. 

The home inspector usually provides a written report and supporting photos to the buyer, and often it is 20 to 30 or more pages, so it is quite thorough.  I always urge buyers I represent to use an inspector right away after buying a home, and the cost of it is a routine buyer's closing cost.  An inspector's trained eye can find a serious but hidden major defect.  It is just good business to always have the two reports I covered here when you are buying a home. 

Neither of the 2 minimum inspections are usually done on new builder homes, as the builder usually has a company representative inspect the home with the buyer at closing and then fix defects found from the builder.  Then, the builder is responsible along with the builder's subcontractors for 3 years afterward.  The whole house inspection is done on most resale purchases and is an integral part of almost all house transactions to protect the buyer. 

____________________________

Greg Nichols

eXp Realty

916-580-7235

DRE # 00632894

greg.nichols@exprealty.com

A Licensed California Real Estate Broker

What 5 Housing Experts Said About 2019 Sacramento Real Estate Prices! 107924606

From Greg: I quit law school in 1977 to go into Sacramento real estate.  I was 22 years old, and the firm that I joined was Kiernan Realtors, a very large multi-office firm, headquartered at 3001 P Street.  Maybe some of you older individuals that have been around awhile remember that firm.  As I recall, they later merged with TRI Realtors, a firm from San Francisco.  Another firm bought TRI out, I think it was Prudential Real Estate.  Unless I am mistaken, Coldwell Banker now owns all those offices that still exist. 

That was a different era of real estate.  The purchase agreement and offer form back then was a single, legal size page.  There were no disclosure forms that I remember unless provided from the lender later for the seller and buyer to sign.  Now, in 2019, the offer form, called a Residential Purchase Agreement, is 10 letter sized pages long with further attached disclosures plus many, many separate disclosures also.

     The California real estate law has grown enormously since I began in the industry, with aggressive legislation and many court precedents handed down based on lawsuits filed.  This is why there are so many documents, literally myriads of paperwork to sell a single house.  But every document and disclosure is necessary to protect you in this modern litigious environment we have in 2019 California.  Now, most of these forms are signed with e-signing in the client's own home, saving mountains of literal paperwork.  A good real estate agent understands the land mines out there today that can blow up on a seller or buyer, or the agent.  Great care is taken on every escrow to dot every "i" and cross every "t."  These are the times we live in.  In some ways it is better, in some ways it is not.  I began this blog to help sellers and buyers get more understanding of the marketplace and gain information that can protect and serve them in making better decisions and save them $$ on their bottom line.

And now, our feature article.     

What 5 Housing Experts Said About 2019 Sacramento Real Estate Prices!

Just today, I ran across this recent Sacbee.com article, written by Tony Bizjak, quoting 5 experts about 2019 home prices.  I was interested to find out that they mostly agreed with my comments to you in the previous 2 blog entries.  entry1  entry2  Not only is there a consensus that there will be home value appreciation this new year, but they also seem to agree with each other that we are not in a bubble like the one that burst in 2008.

The 5 experts are:

Excerpts begin here:

"Our team: Dean Wehrli is an analyst for John Burns Real Estate Consulting.  Erin Stumpf is a Realtor with Coldwell Banker.  Greg Paquin heads The Gregory Group, a real estate research and data firm.  Pat Shea is president of Lyon Real Estate.  And Ryan Lundquist is an appraiser and author of the Sacramento Appraisal Blog.

WHAT’S YOUR 2019 FORECAST?

Stumpf: 'I believe Sacramento will see a slight increase in home prices in 2019. I foresee a balanced market between buyers and sellers, and that is great news as far as I am concerned. The number of homes available on the market will be slightly higher than in past years, and homes will take slightly longer to sell on average. Appealing homes that are appropriately priced ... will still see competitive multiple offers and sell quickly.'

Wehrli: 'Home prices are likely to be pretty stable, rising modestly by year end. I expect a decent spring selling season, particularly if mortgage rates remain lower as they have been very recently. Inventory is likely to rise a bit, but, remember, we are coming from a few years now of extraordinarily low levels of inventory.'

Shea: 'Look for a very predictable sales pattern once again in 2019. One can expect (house price) appreciation to (be in) the 4 percent to 6 percent range. Continued job growth and upward pressure on employee compensation appear to remain in play for the foreseeable future in Northern California. Mortgage rates remain incredibly favorable.'

Lundquist: 'If buyers put their foot back on the gas pedal, with mortgages rates going down now, there is room in the market to see values increase. It all boils down right now to what buyers are going to do. It’s a blank canvas.'

Paquin: 'We are optimistic for sales and pricing in 2019. There is a real possibility that sales will equal and perhaps exceed 2018 numbers. (Newly constructed homes) should see a modest increase of between 2 percent and 3.5 percent.'

ARE WE IN A BUBBLE, LIKE THE ONE THAT BURST IN 2008?

All five experts: No

Wehrli: 'The factors that led to a bubble last time — easy money boosting demand artificially and very high levels of supply — are not present now. That is not to say we are not in for a slowdown when the economy cools, but it should be nothing like last time.'

Shea: 'A respectable number of homes in greater Sacramento are free and clear, and the majority with mortgages have significant equity. Payments are very manageable, due to low interest rates and salary escalations.'

Stumpf: 'Previous buyers (a decade-plus ago) hyper-extended themselves and could not actually afford those homes, and when the market declined many had to short sell or were foreclosed. We just do not have those lending products anymore, and buyers have to qualify for loans. Your average buyer today cannot get a loan without a “skin in the game” down payment, good credit, and verifiable income and employment.'

Paquin: 'As compared to the last housing boom-bust cycle of 2008, there has not been the rapid or significant price increases, the artificial lending that helped facilitate the rapid price increases and lenders have become much more diligent in who can or cannot receive a new-home loan.'"*

End of excerpts

*Source: Sacbee.com, Real Estate News, writer - Tony Bizjak, January 10, 2019, updated January 17, 2019. 
https://www.sacbee.com/news/business/real-estate-news/article224041900.html 

From Greg: There are some great insights above, especially about the 2019 prices and appreciation.  As far as the part about not being in a bubble, I will, for now, not say much but I may have some thoughts on it.  It is possible we may actually have a current price bubble though smaller and less destructive than 2008's bubble, but a bubble just the same, but that is a subject for a future blog.

See the last 2 blogs: 

What is Going on in the Local Real Estate Market? 
https://mfnrealtyinsights.blogspot.com/2019/01/what-is-going-on-in-local-real-estate.html

Are Real Estate Prices Going Up or Down?
https://mfnrealtyinsights.blogspot.com/2019/02/are-real-estate-prices-going-up-or-down.html

Greg Nichols

eXp Realty

916-580-7235

DRE # 00632894

greg.nichols@exprealty.com

A Licensed California Real Estate Broker

Are Real Estate Prices Going Up or Down? 107924606

     In our previous blog, we stated that many believe the market has leveled out and softened, but we also stated that there seems to be a pent up demand for many types of houses in newer and higher socio-economic neighborhoods.  One basic rule of economics is that if the demand exceeds the supply, then prices will not decrease, but "may" yet increase more.  Is there still a demand for certain types of homes?  Yes, I believe most of us believe that a huge demand is here.  How many of us even since the New Year of 2019 have heard people shout out on social media, "my house just sold in one day," or, "my house just sold in two days?"

     Not only are there qualified buyers with housing needs right now within our own tri-county region, there are also Bay Area people wanting affordable "nice" housing and many of them have cold hard cash and will even sometimes pay more to beat the competition, thereby eliminating the appraisals that are needed on usual transactions.  This drives prices up.  So if we have mixed signals of a softening marketplace or a leveling, then can that cause a pause in buyers to wait and see?  Probably not because home-buying is an emotional act from the heart which causes people to buy quickly, even at wrong times.  You have the "softening" lingo on one side, and the "demand" principle on the other.  

     A Note on iBuyer firms.  These may seem like a simple solution to softened market selling as you get an instant offer.  One such firm is Opendoor. These firms do charge a fee to the seller.  "iBuyer profits mostly stem from the service fee they charge, which tend to be higher than typical listing agents' commissions."*

*Source:  From the "California Real Estate" magazine, September 2018 issue, page 23, from article, The ERA of iBuyers.

A Critical Inspection Needed in a Home Purchase Transaction

     There are a few inspections that no home sale should be without, except in cases of the most knowledgeable buyers such as property flippers.  But even most of the flippers want to see a pest inspection too.  Right here I will discuss one of the most important inspections a buyer should have. 

What is a Pest Inspection Report?

     "Also called a termite inspection, this visual inspection is conducted by a state-licensed professional hired to look for signs of infestation or damage to a structure by wood-destroying pests.  Pest inspectors look for: Wood-destroying pests, such as termites, carpenter ants, rot fungus and wood-infesting beetles."**

     From Greg: One of the most expensive pest report finds to repair is dry rot. (rot fungus)  Dry rot is a slow creeping thing caused by moisture and if not put in check periodically, can cause a home seller a fortune at selling time.  It is good to get a pest inspection at least every 2-3 years when owning a home.  The danger to one's pocket book is that dry rot is not always visible but can be growing in a home internally and out of site.  It is up to a buyer to request a pest inspection when making an offer, and a good agent will guide them to do so.  Either the buyer or the seller may pay for the inspection.  The buyer then has a contingency period to examine the report and the seller can be required to fix the problems if the offer was written and accepted that way.  Only in rare cases would I ever sell a person a home without having a pest control inspection report provided.  Talk about flying blind.  A pest inspection is worth its weight in gold but only costs about $95 to $125 depending on the firm.

     My goal with this section about inspections is to give buyers and sellers better understanding of the escrow and inspection process.  My next blog entry will discuss another critical inspection.

**Source:  State of California Structural Pest Control Board, Q & A PDF   https://www.pestboard.ca.gov/forms/inspections.pdf

Greg Nichols

eXp Realty

916-580-7235

DRE # 00632894

greg.nichols@exprealty.com

A Licensed California Real Estate Broker

What is Going On in the Local Real Estate Market? 107924606

From Greg Nichols, Real Estate 

Broker Associate w/ MFN Realty:

      Welcome to my Local Real Estate Insight update.  I get many questions from people about the market and what is going on.  I have kept my finger on the pulse of the marketplace for years in this industry.  I have seen many upward trending markets and many downward trending markets.  We currently are near the tail end of an upward trending market.  However, buyers are still looking for more inventory so a pent up demand for housing is still with us.  The money is out there to be invested in housing in our region - the Sacramento Valley.

      The last upward trend that we were in in this country and region began about 1997 and it lasted until about 2006.  The current upward trend began in about 2013 and is still with us, but some believe it has leveled out right now.  Maybe you are thinking of selling and you just don't know when it is best to do so.  Right now is a great and strategic time. Below is one expert who is not expecting an imminent crash for real estate in California and their reasons why. 

      Will values be crashing soon in California?

The following is an excerpt from an online article by Managecasa, a software service for property managers:

Housing Crash Predictions? 

"Hoards of millennials, working poor, and homeless people are praying for a California housing market crash, but prices have only leveled or dropped a little. With such strong demand driving the whole California housing market in 2018, 2019 and beyond, it’s unlikely a crash will happen. In fact, with the extra economic activity spawned by housing construction and household formation, there is upward price pressure. And the US economy as a whole is booming and we could be looking at an even longer run of economic prosperity.
That spells opportunity for buyers in California if home construction is allowed in an era of ecology-inspired building code red tape. How confident are you right now in buying a home or rental income investment property? Which cities are best for buying?
Let’s take a closer look at the California housing market for those people and demand factors that are influencing the business of housing here. By the end of this post, you’ll have a better idea of price predictions and whether you should buy or sell or rent in this market in 2019/2020." *


End of Excerpt:  You may read the whole article here! *

*Source:  Managecasa is a property management software firm based in San Francisco.

How Do Homes Get Priced When Selling?

      Your real estate agent has the job of helping you price your home if you are selling.  Many home owners think that the extra dramatic features and upgrades in their home carry the most weight in pricing.  That is only a secondary consideration.  There is an overlying principle in appraising real estate called "conformity."

What is the Principle of Conformity?

      According to the Real Estate Glossary, "it's the idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood."  

      This means that your house value is tied to the comparable sales of similar houses in your area.  If you price your home without regard for this principle, you can possibly price it wrong and have it not sell for months.  Here is the good news.  You get to use the 3 best comparable house selling prices of neighboring homes, as long as they are less than 6 months from their selling time.  Your agent locates these comparable sales and then they are compared to your house to see if you have any differences that might allow you an upward adjustment of the prices found.  Isn't that simple?  A good agent will give you the knowledge about pricing so you can help the agent set the price in an educated manner.

Greg Nichols

eXp Realty

916-580-7235

DRE # 00632894

mfnnetwork@gmail.com

A Licensed California Real Estate Broker