Tamara Dorris

Having weathered the hot summer, it seems that there’s more cooling off in Sacramento real estate.

Earlier, I was writing offers left and right and getting rejections in all the same directions…but lo an behold, I am seeing a shift. In fact, I kid you not that I have gotten three acceptances in a row. These are the same buyers, same financing….everything is the same, but sellers (aka banks) seem to be coming around a little.

Two months ago I wrote an offer 11,000 over asking. The next week, I wrote one for 17,000 over. These are some significant overages, and yet, in both cases, the banks picked another buyer to work with (I suspect the winning offers were cash since my offers were otherwise clean and solid).

Yet in these recent offers, the ones that have been accepted, I notice that all of them are full price…maybe 1-2 thousand over asking, but that’s it. So what’s going on? Well, I can only venture to guess that with all of the Sacramento foreclosures out there that the banks are wanting to make things happen quicker. Previously, it was not unusual for me to not even get a response on a foreclosure offer to purchase, but just today, I got a response ONE HOUR after submission. This was unheard of earlier this summer.

One other thing I am noticing is that banks are refusing to initial items #16 and #17 in the RPA (purchase agreement). These are the clauses that have to do with arbitration and mediation. And, while I am not an attorney, I do know that this seems to be the norm with asset managers. So far, I haven’t seen any repercussions and don’t really anticipate any. After all, the banks are very clear on the fact that any foreclosed property is “as is.” This is not a trick. The Buyer’s Advisory gives buyers plenty of time and direction in making sure all inspections are done, and within that time-frame, if the buyers are unhappy with anything the inspections uncover, they can walk, deposit in hand.

All that said, the summer is coming to an end, inventory is moving quickly. There has never been a better time to buy a house in Sacramento, and now, it seems the banks are getting easier to work with.

Ta ta for now,

Tamara

In my recent efforts to up my endurance and strength on my mountain bike, I started going back to the Gym, Cal Fit in Carmichael, to subject myself to the merciless class known as X-bike. Doesn’t the name just say it all?

Here’s what happened. My dad died a year ago and before he did, he kept telling me how much he wanted me to take his little green mountain bike from Target and do some riding. I hadn’t rode a bike in 20 years and had no intention of starting, so I humored Dad and changed the channel.

For whatever reason, I found in my time of grieving the loss of my dad, that darn bike kept coming up in my mind. So, eventually, I loaded it in my son’s truck and took it home. My first ride was a bit wobbly. I mean, it had been years! But I guess that thing they say about never forgetting how to ride a bike is true, and eventually, I began to soar. Feeling the wind in my hair and the sun on my face was just about as close to heaven as I think I had ever gotten. Now I’m not discounting wine and chocolate or breath taking sunsets or anything like that, I’m just saying that when I was on the bike, something happened. I felt lighter, happy and free. I was hooked.

After seeing my joy for riding, and hearing my constant complaining about wanting to go on longer rides, my husband eventually sucumbed to my nagging and got himself a bike. A new bike. Wait a minute! My bike, by this time, was falling apart, plus it was a boy’s bike, and well, I’m not a boy. So I ceremoniously handed down my dad’s bike to my oldest daughter who was grateful as heck to have Grandpa’s old, green bike.

And I got myself a hot pink bike and a purple helmet.

So what does this have to do with buying a house in Sacramento, you might be asking yourself.

I’m getting to that.

So my hubby and I hit the bike trail and lo and behold, in spite of my constant riding, my husband kicked my butt. I huffed and puffed up the hills to Folsom, while he waited, glowing with testostrone, as I battled to catch up with him.

me and my pink bike

That’s when I decided to hit the gym and subject myself to the training that only x-bike, with its hills and sprints, could provide.

This morning, I started thinking about some of my buyers. Great people, first timers, FHA. While we’ve written five offers, so far, nothing has come through. And, it’s not like this is rocket science. Here’s a house, here’s a buyer; let’s dance. Unfortuanately, not all sellers want to dance with an FHA buyer. These buyers are getting stronger—more resolute in their determination that the right house WILL come along. There will be a home with a seller who wants to play ball.

In the meantime, through all of this, looking, writing offers, getting rejected….or worse and more often, not hearing anything at all. Not even the ringing phone in my office telling me we were rejected. In all of this, they are building their buying muscle. These kids started out like me, huffing and puffing on the bike trail—not knowing the difference between a contingency and a kitchen sink–but now, they know the rules (and I use that term loosely). They know the process and they know to have faith. The are like the Lance Armstrongs of Sacramento home-buyers. We keep looking at houses and writing offers.

Anyone who wants to buy a house in Sacramento right now, needs to exercise their buying mucle. Find an agent who be relentless in the search and like a bull dog in negotiating your offer. Do not give up. It WILL happen, but you’ve got to flex and stretch and strengthen that muscle.

You’ll have to excuse me now, I have a mountain to climb.

Ta ta for now,

Tamara

@tamaradorris

Traditionally, FHA was an undesirable loan for sellers to consider when offers were made by buyers who were FHA qualified. The good news is that FHA is no longer the “F” word it used to be, but, alas, there are still some things we need to remember when making offers with an FHA loan.

One of the first and most important is that FHA requirements are more stringent then conventional appraisals, so appraisers actually have a different set of guidelines when appraising a property for an FHA loan. For instance, the roof may need a certificate from a roofing company/contractor stating that it has, for example at least a 2-year life span remaining (2-year roof cert.). That said, don’t go looking at fixer uppers when you’re looking to buy a home in Sacramento and think that it will pass FHA requirements.

The things that’s been a big problem lately for me has been this 90-day rule. With home prices in Sacramento being at an all time low, many investors have bought homes, fixed them up and now want to sell them. Well, there’s sure nothing wrong with that, now is there? But here’s the problem, FHA requires that the person who owns the home they are funding has owned it at least 90 days. Kinda dumb, if you ask me, and I’ve yet to have anyone provide an intelligent reason how and why a flipped home could possibly increase risk to the loan. Nevertheless, that’s the rule.

On a brighter side, there are some homes that are flips that have had their flip-efforts (i.e. remodeling, updates, etc.) done through a certain program and in these cases, the 90 day rule does not apply (yay!). While it may not seem like such a big deal to wait 90 days to make your offer, here is the problem: HOUSES IN SACRAMENTO AREN”T STAYING ON THE MARKET THAT LONG! Seriously, a new house hits the market, my buyers write an offer (if all requirements are met) and even at full-price, we are not always getting our house.

Quite frankly, when the sellers are banks (foreclosures) your chances of getting FHA approval isn’t as likely as a flip (that meets 90 days or the program I mentioned) or a non-distressed seller owned Sacramento house.

So, if you are a buyer who can only qualifies for FHA, look at the bright side: at least you qualify! Be sure you have an agent (like yours truly!) who knows the ropes and won’t waste a bunch of time showing you properties that you can’t qualify for. Another hint I am suggesting is this: with FHA offers, always offer full or above full price and don’t ask for concessions. This will make your offer stronger and more more competitive with cash and conventional loan offers.

Ta ta for now!
Tamara

Let’s face it, when it comes to buying a house in this market, it’s a jungle out there. Buying a house in Sacramento right now requires one to have the right tools and knowledge.

Two of the most important parts of the process, really the MOST IMPORTANT PARTS, are financing and representation. Trust me, in this market, it is not at all possible to write an offer on a house without having an agent who is on top of things, sharp, bright, and totally looking after your best interests. And then, why bother writing on offer if you got no money? Well, that’s where me (Tamara, the Tiger of real estate) and Ed “The Money Man” Wacaster can help you out.

photo taken by respres/Jeff Turner

As you might know, Ed is my real estate segment co-host on the coolest radio show, make that the ONLY radio show, dedicated to making Sacramento Smile. Ed keeps up on ALL the lending trends, rules, regulations and legislation. In this market, money stuff is changing on nearly a daily basis and most real estate transactions that fall apart are usually a result of funding not working out. That means you need to know the lending process, how much you might qualify for, and what kind of loan will best suit your situation. Even if you, in some cases, have no money to put down, you might still be able to buy a home.

Also, it’s important to understand the different kinds of houses for sale we are seeing in Sacramento real estate sales right now. For instance, the way you make an offer on a short sale, a foreclosure or a seller-owned property will vary tremendously. For example, on a foreclosure, the seller is the bank (or asset manger) so you would write the offer much differently than if it were a human-seller!

Ed and I will take you through the process, because while ignorance is bliss, knowledge is power and we want to help you succeed. This isn’t a sales pitch of any kind, just good solid, accurate information mixed in with some fun and food. Don’t miss it!

Thursday, August 13th, 6 PM

3000 Lava Ridge Court, Suite 200

Roseville, CA 95661

Just call me if you have any questions 916-482-5834

See you there!

Ta Ta for now,

Tamara

I love working with first time buyers. They are so wonderful to work with and so excited to get those keys in their hot little hands!

In this market, it’s important in making sure you have your team to help you buy your first house in Sacramento. Your team is your Realtor and your lender. They are both key to the success of the purchase of your first (or any) home. If you pick a good agent, she’ll be able to refer you to a lender who can get the job done. It’s important that you do business with folks who have “evidence” of being successful.

For example, these photos are “evidence” that my buyer and his mother (who referred me to him) are thrilled with his new home in Sacramento. Forgive my garb, but I was on my way to Pollock Pines for a little rest and relaxation. Selling houses in Sacramento is my favorite form of livihood to be sure, but I do like to do some camping as often as I can to enjoy nature and re-energize. Hey, selling houses in Sacto takes a lot of energy!