Steve Jacobs

I was skepitical at first when my brokerage was setting down rules and guidelines on how we were to conduct short sales. It has been my attitude to see everything else first then if we just had to we would look at short sales. They take a long time, the commision is always reduced, and worst of all the clients suffer by not knowing if they will ever actually get to buy the house.

With the reduction in the number of foreclosures and regular sales far and few between, the only thing to really look at are short sales.

Lyon Real Estate along with other prominate brokerages in the Sacramento area is setting the standard for how this transactions are going to be handled. 1st, the offer accepted by the sellers will require the EMD(earnest money deposit) check to be cashed and placed with the title company. This will ensure serious buyers and not just people shopping short sales with the same check on 20 different properties. 2nd, all offers received after the accepted offer will be placed as back up offers to the accepted one. This will ensure that the bank is not interrupted mid-stream by a new offer and have to start over (remember we are obligated to the seller or buyer, not the bank). Then there are several other things that Lyon is putting in place for agent protection.

All good things as far as I can tell. At first I was defensive but then after listening and thinking about it, it just makes sense. Work smarter not harder.

Short sales will still take a long time, and banks will still screw up deals but at least I know I will be working as effective and efficient as I can.

Got a short sale or considering a selling as a short sale, I am ready for you.

Steve Jacobs

Lyon Real Estate.

It has been an amazing ride so far in this ever changing market. We went from huge inventories with no end in sight to homes under priced with multiple offers. Everyone wants that 3/2 cosmetic fixer for $100k and they all have cash. Well they missed that boat in Sacramento Metro. Where are the deals now. Think bigger. Thats right there are numerous deals out there but they happen to be big. Want something pennies on the dollar....well look for large homes. Some were originally sold for $600k-$800k that are now selling from $300k-$400k or less. These are smoking deals. Some are as much as 4000sqft and I think that actully scares some people. Regardless these are the steals of the market now. Have a $100k you are looking to invest? Run your calculater on a $350k home with 100k down and I am sure it will pencil for you. And if it pencils now just think what the future may hold5 - 10 years down the road. This is the time millionaires are made. Free and clear is awesome but dont pass up these other great deals.

Steve Jacobs, Realtor.

This may not be true in all areas but it is true for some zip codes. Multiple offers, above asking offers, homes not appraising because the purchase price is too high. Explain all that to your clients thinking it is still a buyers market. In August of 2007 in the four county Sacramento region there were 16262 homes for sale, as of January of this year there are only 8947 homes on the market. Homes are selling fast! Going by months of inventory in September of 2007 there were 14 months of inventory, come January of this year there is only 4.7 month of inventory. How can this be? I thought a buyers market typically consisted of above a 6 month inventory level. Now this is a broad scope. The numbers vary from zip code to zip code and neighborhood to neighborhood. But this is good information to know. Why is nobody letting this stuff out. The average sold price in the four county region has gone down 49.2% since August of 2007 though January of this year. The worst part is that prices are still falling. Try buying a four bedroom home in 95823 area at or below asking price. It won't happen. Homes are selling for above asking price all day long. Investors are out with cash and buying. Competition is getting fierce. The low end is getting gobbled but nothing of this is making it to the news. Sales are up, prices are still sliding, interest rates are down. These are all good things for home buyers and investors. Have we hit bottom? I can't say that yet. Are we close? YES! Will we bounce along the bottom for a while? Probably. Is it a good time to buy? YES! Is it a good time to sell? Depends on your situation and your reason for selling. Homes are selling fast if they are priced in line with the market. These are exciting times in real estate and I am glad to still be in the business. My advice to the politicians....don't intervine anymore, the market is fixing itself, so let it! These are my two cents for the day.

Steve Jacobs

Lyon Real Estate

916-412-6493