Erin Attardi's Blog

This is a long-winded blog...needless to say I have been dealing with literally 5 separate requests for repair during the last week, so for me this is a timely post. On 3 of them, I am representing the buyers, and on 2 I am representing the seller.

Buyer Investigation, Inspections, and Request for Repairs are all inter-related, and kind of a broad, sweeping topic that I am often asked about. In real estate transactions in California, the seller has the duty to disclose any and all known material facts and defects affecting the subject property...the buyer has the right to investigate and inspect the property. Even though most sellers are thorough with their disclosures, often times sellers may be unaware that a certain condition in their home represents a safety hazard, is not working properly, is defective, etc. For this reason, most buyers opt to obtain a whole house inspection by a qualified professional home inspector.

A whole house inspection generally costs anywhere from $300 - $600 on average, depending on the size, age, and condition of the house. These inspections are not intended to be a warranty or guarantee of any kind. These inspections are intended to give you a qualified opinion regarding items that may be in need of immediate or future repair or servicing. The home inspector will crawl the attic, crawl the sub-area of the home, and thoroughly evaluate the different systems in the house to make sure they are in adequate, operational order. Home inspectors are generalists, and may refer you to specialized trade contractors for further evaluation of different things. Buyers usually pay for this inspection.

In addition to the whole house inspection (whether the home inspector recommends it or not), I often recommend other inspections such as a chimney inspection, HVAC inspection, roof inspection or certification, pest inspection or certification, sewer line inspection, etc.

A Chimney inspection is something that most buyers will not even think to do...but chimneys can be quite expensive to repair if they are damaged. It is very common for there to be missing or deteriorated morter, cracks in the firebox, missing spark arrestors, missing weather caps, etc. The seller may not be aware of these conditions. A chimney inspection usually includes a cleaning/sweeping, and costs anywhere from $125 - $175 on average depending on the number of stories, pitch of the roof, and age of the chimney. The buyer usually pays for this.

An HVAC inspection can also be quite important. Ideally, the seller has had routine maintenance and cleaning of the unit twice annually since the unit was installed, but that is often not the case. A licensed HVAC contractor can evaluate the unit, tell you if it is heating and cooling the house properly, and recommend any maintenance to be performed. An HVAC inspection usually costs between $75 - $150. The buyer usually pays for this.

Roof inspection and certification is generally something that is agreed to by buyer and seller at during the initial contract negotiations. It is very common for the seller to agree to provide a 2 or 3 year "Roof Certification" from the start...most agents will include this in the residential purchase agreement (aka, the offer). A certification entails a licensed roofing contractor inspecting the roof, recommending/performing repairs, and giving a written guarantee that the roof will not leak for 2 or 3 years. Common repairs include sealing around roof vents, installing flashing, replacing shingles, etc. The certification itself usually costs $250 - $400 (repairs are extra), depending on the age and pre-existing condition of the roof. If properly negotiated in advance it is very common for the seller to pay for this.

Pest inspection and certification is generally something that is agreed to by buyer and seller at during the initial contract negotiations. It is very common for the seller to agree to provide a "Section One" and/or "Section Two" pest certification from the start...most agents will include this in the residential purchase agreement. Section One pest work will be items of active infestation - termites, dryrot, etc. Section Two pest work will be items that are conducive to creating a future active infestation - plumbing leaks, contact of the siding and soil, etc. A licensed pest company will do an intial inspection and make recommendations to remediate these types of items. The work is then performed, and the pest company issues a clearance that the house is free from infestation. The pest inspection generally costs $90 - $125, with repairs being an additional cost.

A sewer line inspection, especially with older homes, can be very important. Orangeburg sewer pipe is known to deteriorate over time, so that great home in Land Park that you love likely has an old sewer line unless the current or previous owner replaced it. It is also common for sewer lines to be obstructed by tree roots. Scoping the sewer line with a camera and recording the images on tape will let you know one way or the other if the line has collapsed or has any obstructions - or if it has been replaced with ABS, clay, cast iron, copper pipe, or whatever. Scoping the sewer line generally costs between $125 - $250. Repairs to the line can be costly. The buyer usually pays for this item.

In any transaction, make sure you are satisfied with the condition of the property before moving forward. I also want to point out - with the presence of SO MANY bank owned properties on the market, performing these inspections becomes even more important. When banks sell properties, they are sold with NO disclosures regarding the condition of the property. If you are lucky, the bank owner may provide you a pest inspection. Take your right to buyer investigation very seriously with these types of transactions.

On to the actual request for repairs...a little known fact to buyers an sellers is that all properties are sold "as-is" unless otherwise agreed to. Buyers can certainly ask for repairs, but sellers do not have to grant those requests...heck, per language in the purchase agreement, they are not obligated to respond to those requests. Buyers must provide any inspections obtained to the seller as a reference point and basis for any requests for repairs...see the contract language below...

So what does all of this mean to buyers? Make sure you investigate your heart out! If you want a house to be up to current code standards - buy a new home. It is not reasonable to ask the seller to upgrade the entire house. It is reasonable to ask for broken, malfunctioning, or defective items to be fixed. Most sellers will respond to and take action to repair reasonable requests - or give you a credit (if your lender allows it) for you to perform repairs at a later time after the close of escrow. Do not submit unreasonable requests to the seller, as they will likely not be well-received. It is not advisable to "split hairs." No home will be perfect.

So what does this mean to sellers? It is advisable to obtain these inspections in advance and provide the reports to the buyer. Doing so protects you in the transaction, and allows you to negotiate potential repairs with the buyer in the early stages of the transaction - rather than the middle or end of the transaction. Expect that the buyer will find issues, and expect to allocate a certain amount toward "unexpected" buyer repair requests.

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Contract language - straight out of the California Residential Purchase Agreement...

In paragraph 7 of the California Residential Purchase Agreement (on page 3), item A reads, "Unless otherwise agreed: (i), the Property is sold in (a) its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer's Investigation rights; (ii) the property, including pool, spa, landscaping, and grounds, is the be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by the Close of Escrow."

In the same paragraph 7, item D reads, "NOTE TO SELLER: Buyer has the right to inspect the Property and, as specified in paragraph 14B, based upon information discovered in those inspections: (i) cancel this agreement; or (ii) request that you make Repairs or take other action.

Paragraph 14B (referred to in paragraph 7 described above), item (2) reads, "Within the time specified in 14B(1), buyer may request that Seller make repairs or take any other action regarding the Property (CAR Form RR). Seller has no obligation to agree to or respond to Buyer's requests.

It's no secret that I list many short sales...

I just received written approval for a Countrywide short sale yesterday. Yesterday was 8/26/08. We submitted the offer to the bank on 3/14/08. No that is not a typo...almost 5 1/2 months of constant phone calls, emails, and coordination between buyer, seller, and loan officer. This particular short sale has a first and second mortgage - both with Countrywide. Unfortunately, I started working on this file right at the same time Countrywide did a massive re-organization of its Loss Mitigation department. We went through 14 "negotiators" (basically Countrywide's term for a "case worker"). I have 9 full pages of conversation notes. The seller is extremely fortunate that the original buyer we were working with stuck around. Her parents live on the same street as this property, and she really wanted this house.

I just received written approval for another short sale on Friday. I had been working on this file for just three weeks...two loans with two separate banks. Both banks were really on top of their game. I had written approval from the first loan after 2 weeks, and coordinated approval from the second loan for another week. I wish all of my short sale negotiations could be so smooth!!! The problem? The buyer walked. The approval for this short sale expires on 9/30/08, so if somehow we can get an acceptable offer over the weekend, we just might be able to salvage this one. So...if you know of anyone looking to buy a 2,700sf+ 4/3 nicely upgraded newer home in the Bridgeway Lakes community in West Sac for $307,500 - CALL ME! The price adjustment and new Active Short Sale status hit MLS tomorrow.

I have heard several interpretations of the First Time Homebuyer Tax Credit language that was wrapped into HR 3221. Not sure how reliable the information in this website is, but the National Association of Home Builders created a Q&A website to address common questions surrounding this legislation - http://www.federalhousingtaxcredit.com/. Definitely consult your CPA.

I generally do not include information about my specific clients on this blog, however in this case I will make an exception. If ya'll recall, a few months back I was interviewed by the AP for an article about the current state of the real estate market (specifically regarding foreclosures and how banks are pricing homes insanely low), and the writer also asked to interview one of my clients. Not only did he interview Sally and Carlos, but he had a photographer do a shoot with them, and their photos were featured prominently with our quotes in the article. The article was picked up by several media outlets, including MSNBC, CNN, our local Sacbee.com, and others.

I first met Sally and Carlos back in 2006 when Sally inquired about one of my listings. At the time, they had finished college, had been dating for a few years, and were living in the River Park neighborhood in Sacramento. We looked at property at the time, but they postponed their search not long after their engagement. They were married last year, and we resumed the search in February of this year. After searching high and low, and submitting several unsuccessful offers - we found a great house in the Rosemont area, their offer was accepted, and they recently closed escrow. So this evening, I got to give Sally and Carlos the keys to their new house.

Handing the keys to excited first time homeowners has to be one of the most satisfying things a Realtor can experience. It makes all those 14-hour days seem easy! I know that they will be very happy in their home. This is where they will decorate and remodel. This is where they will finally enjoy central heat & air on a 100+ degree Sacramento day. This is where they will plant a garden. This is where they will start their family.

Congrats Sally and Carlos! You have been some of my favorite clients to work with, and I know our paths will cross again in the future.

Live on a highly sought after South Land Park Terrace street! This elegant 3 bedroom, 2 bathroom, 1,922sf home is ideally set up for entertaining. It features a separate living & family room - each with its own fireplace, large formal dining room, spacious bedrooms, updated kitchen with newer stainless appliances, stunning backyard with a covered patio, oversized detached garage w/new metal door and automatic opener, electronic driveway access gate with remote control, central heat & air, whole house fan, composition roof, and more. The living room features floor-to-ceiling windows that showcase a beautiful setting and allow lots of natural lighting. All this located in close proximity to William Land Park, shopping & public transportation! This home is a 10! Don't wait! Offered at $589,000. NOT A SHORT SALE! For more photos and a virtual tour, visit http://www.4531CrestwoodWay.com.

Upgraded 2 bed / 2 bath 1,089sf condo is a must see! You will love the custom paint selctions, ceiling fans, recessed lighting, custom shutters, glazed maple kitchen cabinets, decorative tile counters, dual balconies overlook swimming pool & play area. 2-car garage & extra storage -don't miss this great KB Home Hampton Village condo! Offered at $149,000 subject to lender approval of short sale. For more photos and a virtual tour coming soon, please visit http://www.3301NorthParkDrive.com. 

Spacious 4 bed, 2.5 bath, 2,284sf Natomas home is ready for a new owner! Open floor plan has a separate living room and family room. Gourmet kitchen has gas appliances, lots of space to cook. Master suite has a huge walk in closet, separate tub and shower and dual sinks. Vaulted ceilings and a cozy fireplace make this home seem even bigger! Huge 3 car garage. Close proxmity to schools, parks, and shopping! Don't wait!! Offered at $289,000 subject to lender approval of short sale. For more photos and a virtual tour coming soon, please visit http://www.3436hornseaway.com/. 

My husband and I decided to check out SMUD's (Sacramento Municipal Utilities District) and the Sacramento Tree Foundation's free shade tree program. We were visited by a "Community Forester" today who helped us to determine where we should plant our trees, and what trees to plant. There are about 30 types of Can you believe it - the SMUD shade trees and stakes, ties and fertilizers are delivered to your house within 10 days after the site visit! Looks like we will be planting a few Goldenrain Trees...we have almost a half acre parcel, and these get pretty big. They definitely will provide adequate shade.

If your home has an eastern, western or southern exposure that heats up during the summer, you may be eligible to receive free trees from SMUD. Shade is not the only benefit to planting trees...according to SMUD, tree roots help clean rainwater and add stability to the soil, they produce oxygen and help cleanse the air we breathe, and if properly placed they can cut your home cooling costs by up to 40 percent.

On of the things I like most about my home in the Arden area is all of the mature trees that line our streets...these will make a nice addition to the landscape. To set up an appointment with a Community Forester, click here.

I recently had the chance to attend a City of Sacramento Preservation Commission meeting. Preservation Commission meets regularly on the first Wednesday of every month at City Hall downtown. The purpose of the commission is to ensure that Sacramento maintains its character by doing things like defining historic districts, registing local historic landmarks, reviewing development and redevelopment projects, developing and recommending to the city council certain preservation policies, etc.

Sacramento has literally thousands of registered historic landmarks (including single family homes, commercial buildings, factories, churches, bridges, statues, and parks, etc.). It also has a couple dozen "Historic Districts" and "Survey Areas."

Most notably on the agenda for the meeting I attended was a proposed project to redevelop the R Street Historic District, and a proposed residential solar project for a single family home in Southside Park...among other things. The R Street project was pretty interesting - it is a commercial area full of warehouses built around the turn of the century, and right down the middle is the first railway that went through Sacramento. It is proposed to improve the roadway surfaces, drainage, parking, and pedestrian access, while preserving the rail tracks and overall character of the area. The residential solar project was also interesting - the owner of this single family, victorian style home wants to completely change the look of the home to a different style, and rotate the second story of the house to face due South for optimal sun exposure. This project is was a pre-application exploratory conversation...so no decision was rendered.

What does this mean for you as a property owner in one of these districts, or if you own a property that is a registered historic landmark? It means that if you want to remodel your house (or business if you own a commercial building) and substantially change its appearance and character, it is likely that you may have to meet with the Preservation Commission to get your ideas and project plans approved. They also review residential and commercial new construction in these districts to make sure they are consistent with the character of the area. The commission meets the first Wednesday of each month at 5:30pm at City Hall in Downtown Sacramento...interesting stuff if you can find the time to attend...

Well...the Sacramento County Real Estate statistics are out for July 2008. Closed sales are still up, pendings are still up, and overall inventory is still going down. Good stuff!

What I find to be particularly interesting is the what the REO inventory is doing right now. Banks and asset management companies still seem to be drastically underpricing their listings. If you look at the second graph, this represents REO average days on the market, and the listing price vs. selling price ratio. Note that last month on average, REO listings sold for 101% of their asking price! These are very competitive bidding situations, and it is not uncommon for one property to have 5-10 offers on it within the first week of the property hitting the market.

There is only 1.6 months of REO Listing inventory for the entire county. That is a very brisk market! Non-REO listings represent 8.7 months of inventory - this includes short sales. Overall, there is 3.7 months of inventory in Sacramento County. The median home price dipped again to $215k - fueled by so many transactions under $100k! There are some really trashed homes out there - and investors are snagging them.

Offered at $299,000. Outstanding location in East Sacramento! Just blocks from dining, shopping, parks and public transportation. This 3 bedroom, 1 bathroom, 1,172 square foot home is the ideal blank canvas awaiting your personal touches. It has an outstanding layout, three large bedrooms, an updated kitchen that includes a dishwasher, and central heat and air. It has a newer 40 year comp roof, a detached garage with a workshop and carport, and a partial basement that is not included in square footage, and a huge backyard! Don't wait! NOT A SHORT SALE and NOT BANK OWNED! For more information or to schedule a private showing, please call Erin Attardi at 916-342-1372. For photos and a virtual tour coming soon, visit http://www.3566FolsomBlvd.com.

My hubby and I just returned from our anniversary trip to St. Helens, OR. For anyone not familiar with Oregon, St. Helens is about 30 minutes west of Portland. We stayed in a great B&B called The Seawright House - they only take one guest at a time. We also took a guided fishing trip on the Columbia River.

We were fishing for Sturgeon, and it is illegal to keep a Sturgeon that is shorter than 42" or longer than 60". I caught two under-sized fish. My husband on the other hand, caught an 8-foot, 400lb Sturgeon!!! He fought that fish for about 30 minutes. That fish swam frantically under the boat, around the boat, and way out about 100 feet. We knew it had to be a large one, but we had no idea just how large. When it went away from the boat, it jumped completely out of the water - it looked like a friggin' great white shart or something! It was as big around as a trash can! Finally Nick got it up close to the boat. The photo just really do not do that Sturgeon justice - you can only see it's white belly, and the rest of its body is not that visible. Take note of the guide's hand in that thing's mouth - that might give ya'll some perspective on just how big it is.

Anway, back to the grind tomorrow.

Turn-key 4 bed, 2.5 bath home in a great Antelope location. Close proximity to schools, parks and shopping centers. You'll love the stunning wood floors throughout, open layout, separate living and family rooms, updated kitchen with stainless appliances and center island, master retreat with large walk-in closet, soaking tub, and a huge landscaped backyard with a shed. Sale is subject to lender approval of short sale. Please contact Erin Attardi for more detail or a private showing. For additional photos and a virtual tour coming soon, visit http://www.4808hiddenmeadowway.com/.

Well...kind of like the last time in March, I knew I had a busy month, and it turns out I was the Top Listing Agent in my office (of about 100 agents) for the month of July. The crazy thing is, I have already listed the same number of homes in August (we are only one week in) as I did the entire month of July. I am not sure if my office will award "Top Listing Agent" to the same agent two months in a row, but I suppose I will find out! On that note, I am leaving today for a long weekend to celebrate my 5th wedding anniversary. I deserve a break!

I caught wind of a brand new listing near Tahoe Park today before it actually went in to MLS, that sounded like a possible fit for one of my current buyer clients. When I called the listing agent to find out the scoop on the property, in the course of our conversation she mentioned that the house had been recently acquired by the seller via a Trustee Sale (foreclosure auction by the bank on the county courthouse steps).

RED FLAG!

So, I immediately called the buyer's loan officer, and he confirmed what I suspected. The buyer is using an FHA loan program, and FHA has strict guidelines regarding the purchase of "flipped" homes. FHA defines a flipped property as one that has changed ownership within the last 90 days. FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days...the exception to this anti-flipping rule is REO property marketed and sold by property disposition firms (asset management companies) on behalf of lenders / banks.

Buyers - if you are using an FHA loan program, make sure that your agent confirms the property has been owned by the seller for longer than 90 days. If you are purchasing a home from an investor who fixed up a property to sell, you may have issues when it comes time to fund your loan. When you look at the pre-liminary title report, see if there are any recent recordations in this regard. Your agent should be on top of this for you.

Sellers - if you are planning on rehabilitating a property and selling it prior to your 90th day of ownership, understand that you may be limiting your pool of buyers. Other scenarios are considered "flipping" per FHA as well. For example, if your property transfers ownership in and out of a living trust, or if the property transfers ownership in and out of a Corporation or LLC you may have the same issue.

There is an an appeal process (if the seller is not a bank or asset management company) and has owned the property for 90 days or less...however there is no guarantee that an exception will be granted though.  Just be aware...

I was having a conversation with a prospective listing client in Land Park this last week regarding if having a converted garage adds or reduces the value in a home. To clarify - this would be a garage that has been converted in to living space.

Let me start by saying that not all garage conversions are created equally. I have seen conversions where you would never know that a garage existed in the space prior to the conversion. The old driveway was demolished, and landscaping was planted in its place. The garage door was removed, and in its place siding that matched the rest of the house was installed. On the interior of the house, the transition from the interior to garage conversion was seamless - there was no step down, the decor matched, flooring flowed, drywall matched, and the room was tastefully painted.

On the other side of the coin, I have seen garage conversions that were a poor attempt to add extra space to the house. The garage door was just bolted shut, the driveway remained, and the transition on the interior of the house was so obvious and the workmanship so bad that it really detracted from the house overall.

Another factor that must be considered when determining if a garage conversion has added or subtracted value from a home is - what type of parking situation does the property have? Did the owner only convert part of the garage, leaving an available parking space or two in the un-converted part? With the converted garage, did the owner build a separate detached garage? If there is no garage, is there covered or off-street parking? Is there space for extra storage? What type of parking arrangement is typical for the area?

Let's not forget permitting issues. Was the conversion done to code? Can the square footage added by the garage conversion be counted in the overall square footage of the house? An appraiser will not count the square footage of the converted garage unless it has been permitted and was done in a professional workmanship like manner. If the conversion was not done in a professional workmanship like manner and/or with permits - not only will it NOT ADD any value, but it may cause the appraiser to subtract value from an appraisal depending on the estimated cost to restore that space to a functional garage.

There are several factors that I take in to consideration when trying to determine what adds or subtracts value -- OR -- adds or subtracts to the desirability of a home in general. Best case scenario with a garage conversion that will add value = good workmanship, done with permits, and the presence of available garage parking that is consistent with the surrounding neighborhood. Worst case scenario with a garage conversion that will subtract value = poor workmanship, done without permits, and no available garage parking that is consistent with the surrounding neighborhood.

8805 Coral Berry Way is a very nice 3 bedroom, 2 bath, 1,842 square foot home in the serene Strawberry Glen neighborhood in Elk Grove. It is in an ideal location close to parks, schools, shopping, etc! The house has a spacious layout with a separate living and family room, formal dining room, big bedrooms, private yard, etc. Offered at $249,000. Sale is subject to lender approval of short sale. Virtual tour and more photos coming soon to http://8805coralberryway.com. For more information or to schedule a private showing, please contact Erin Attardi at 916-342-1372.

My ISP still says everything is fine, but I have had numerous issues with my email over the last couple days (this happened a couple weeks ago too). If anyone is trying to reach me via email and has not gotten a response - I am really sorry, and please email cc'ing an alternate email address - eattardi@golyon.com. That email address does not go to my Blackberry though. Here is what a title comany rep received:

From: Mail Delivery System[mailto:MAILER-DAEMON@post-app2.tdpserver.net]
Sent: Friday, August 01, 2008 12:05 AM
To: Debi Skelly
Subject: Undelivered Mail Returned to Sender
This is the mail system at host post-app2.tdpserver.net.I'm sorry to have to inform you that your message could notbe delivered to one or more recipients. It's attached below.For further assistance, please send mail to postmaster.If you do so, please include this problem report. You candelete your own text from the attached returned message.
The mail system: temporary failure

The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) was introduced by several members of Congress on Thursday, July 31, 2008. Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays sponsored this bill.

If it is passed and signed into law, it will allow downpayment assistance to continue after the 10/1/08 shut down date - but changes certain rules for allowing its use. It modifies the criteria under which someone will qualify for downpayment assistance - a positive change based on a borrowers credit scores...you can read the text of the bill by clicking HR 6694 above.

I am often asked what zip codes certain areas in Sacramento fall within, so I figured I would post a pretty comprehensive list. You will notice that some zip codes are repeated a few times, as different neighborhoods occasionally fall on a border or are just large generally speaking.

Antelope - 95843
Arden /Arcade - 95815, 95821, 95825, 95841, 95864
Arden Park - 95864
Campus Commons - 95825
Carmichael - 95608
Curtis Park - 95818
Citrus Heights - 95610, 95621
Del Dayo - 95608
Del Paso Heights - 95815, 95838, 95833
Downtown Sacramento - 95811, 95814
Elk Grove - 95624, 95757, 95758
Elmhurst - 95819, 95817
Elverta - 95626
East Sacramento - 95816, 95817, 95819
Fabulous 40's - 95816, 95819
Fair Oaks - 95628
Folsom - 95630
Foothill Farms - 95841, 95842
Garden of the Gods - 95864
Galt - 95632
Gold River - 95670
Granite Bay - 95746
Hollywood Park - 95822
Land Park - 95818
Lincoln - 95648
Lincoln Village - 95827
Loomis - 95650
Mather - 95655
McKinley Park - 95816
Meadowview - 95822, 95832
Midtown Sacramento - 95811, 95814, 95816
McClellan - 95652
Natomas - 95833, 95834, 95835, 95836, 95837
North Highlands - 95660
Oak Park - 95817, 95820
Orangevale - 95662
Pocket / Greenhaven - 95831
Rancho Cordova - 95670, 95742
Rio Linda - 95673
River Park - 95819
Rocklin - 95677, 95765
Rosemont / College Greens - 95826
Roseville - 95661, 94747, 95678
Sierra Oaks - 95864
South Land Park - 95822, 95831
South Sacramento - 95822, 95823, 95824, 95828, 95829, 95830, 95832
Tahoe Park - 95820
West Sacramento - 95605, 95691
Wilhaggin - 95864

If you would like to sign up to have listings from any of these zip codes emailed to you, click here. Did I miss an area - let me know!