Real Estate Appraiser

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When do you do the appraisal during a divorce?

September 23, 2009 in Divorce | No comments

I had someone ask me the other day about when a real estate appraisal is needed during the divorce process. I have written previously about some of the details of divorce valuations, but to answer the question here, I’ll say the following. An appraisal should be completed whenever your attorney gives you the go-ahead to have an appraisal done. Usually that takes place after divorce papers have been formally filed and before any court or mediation date. On the other hand, if you are not working with an attorney, then it’s really up to you. 

Keep in mind that the appraised value is typically based upon the date that divorce papers were filed, so it’s not a bad idea to hire an appraiser not long after filing (maybe a matter of months as opposed to waiting two years). I find that most clients dealing with divorce in the Sacramento Region typically order these types of appraisals within 3-6 months of papers being filed, though each situation is different.

If you have any questions, feel free to reach me at ryan@lundquistcompany.com or 916-595-3735. You can see our divorce appraisal website also at www.SacramentoDivorceAppraisals.com.

http://www.lundquistcompany.com/blog When do you do the appraisal during a divorce?

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City of Galt Market Trends & the Value of Age

September 21, 2009 in Galt, Market Trends | No comments

Over the years I have done quite a bit of appraisal work in the city of Galt. If you are not familiar with the area, then know that Galt is located off Highway 99 in Sacramento County just North of the San Joaquin County Line and South of the city of Elk Grove. The Highway basically divides Galt into two portions (Western & Eastern), and in general the Western side contains older houses (though there are still patches of newer developments as well as many properties built in the early 1990s in particular).

The information in the graph below is based upon sales in Sacramento MLS for detached single family residential units.

City of Galt Market Trends Graph by Lundquist Appraisal Company September 2009

Instead of keeping all sales in the graph as one color, I thought it would be more interesting to plot properties built after 2000 (blue dots) against homes built before 1999 (red). What do you see in the graph? It looks like the panoramic view of sales is showing that buyers are willing to pay higher amounts for properties that are newer in age. This isn’t a revolutionary concept, but it’s interesting to see on paper. Yet at the same time one notices there are many properties built prior to 2000 that compete with the upper end of blue dots between $250-400K. Overall though, we see that the lower end of the market has fewer blue dots, doesn’t it?

I suppose if we really wanted to segment the entire Galt market in the graph, it would be most prudent to further break down age categories into something like the following: pre-1900, 1900-1940, 1940-1960, 1960-1979, 1980-1989, 1990-1999, and 2000-2009. And then we could start segmenting other factors like square footage, location, lot size, bedroom count, condition, upgrades, etc…. Okay, this is starting to sound like what I do everyday as an appraiser. 

By the way, if you have not seen our Galt video on YouTube, check it out HERE or below. The photos are original and they help to show some of the different types of property found in Galt – on both sides of the freeway. The city of Galt has some neat historical properties and also really typical tract homes.

 

Feel free to comment above or contact me at info@lundquistcompany.com or 916-595-3735 if you have any questions. If you are a Galt home owner, what is it you love about your city?

http://www.lundquistcompany.com/blog City of Galt Market Trends & the Value of Age

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San Joaquin & Solano County: Unemployment Rates for July 2009

August 25, 2009 in Unemployment | No comments

I was running some data today in various counties and wanted to share a bit here. The figures below are based upon information provided by the Employment Development Department. Since I do appraisals in multiple counties surrounding the Sacramento Region, it is very important for me to know understand real estate markets as well as possible. In appraisal jargon, knowing a local market is called ”geographic competency”.

In my mind, part of being in touch with a local market is to keep tabs on unemployment. Could the unemployment rate for a city be an indicator of the overall health of a local community sometimes? Or could rising unemployment impact housing prices and values? What else can unemployment rates tell us? What do you think?

July 2009 Unemployment in San Joaquin County:seal

  • Stockton:  19.2%
  • Lathrop:  11.3%
  • French Camp:  48.7%
  • Manteca:  14.0%
  • Ripon:  9.6%
  • Tracy:  10.1%
  • San Joaquin County Overall Unemployment Rate:  16.0%

solano_countyJuly 2009 Unemployment in Solano County:

  • Dixon:  9.2%
  • Fairfield:  12.6%
  • Green Valley CDP:  10.5%
  • Suisun City:  11.9%
  • Vacaville:  8.6%
  • Vallejo:  14.2%
  • Solano County Overall Unemployment Rate:  11.5%

Please let me know if you have any questions about the data above or any other cities or Census Designated Places that were not listed above. The lists are not exhaustive for every city and CDP in the respective counties. You are welcome to contact me at 916-595-3735 or info@lundquistcompany.com.

http://www.lundquistcompany.com/blog  San Joaquin County Hits 15% Unemployment Rate for May 2009

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A Lesson in Neighborhood Boundaries: Tahoe Park, Tallac Village & Fruitridge Manor in Sacramento

July 16, 2009 in Market Trends, Tahoe Park | No comments

I wanted to put up a brief post to talk about neighborhood boundaries and how important it is to know the local market when appraising (or hunting for real estate). Often times it is obvious when a new neighborhood or housing niche begins because the style of homes change or there is a natural barrier such as railroad tracks, a main street, commercial property or a highway. Other times it is not so obvious to the unfamiliar eye.

The image below is a portion of Sacramento known as Tahoe Park South (blue), Tallac Village (green) and Fruitridge Manor (orange).

Tahoe Park - Tallac Village - Fruitridge Manor

According to our uniform appraisal standards called USPAP, appraisers are to select the best available comparable sales when doing an appraisal. Lenders know this and so most of the time they have a standard requirement for the “comps” to be located within a one-mile radius from the subject property (NOTE: the best comps are not always located within a one mile radius). So when applying this lending guideline, in theory an appraiser can value a property location in the orange section (Fruitridge Manor) and then find comparables in the blue portion (Tahoe Park South), right? Well, not really because even though these housing areas are well within a one-mile radius of each other, they are actually much different market areas as illustrated with the data below.

Tahoe Park South (blue):

  • 5 sales over past 90 days
  • 32 sales over past 12 months
  • Median price over past 90 days:  $225,000
  • Current Actives:  11

Tallac Village (green)

  • 20 sales over past 90 days
  • 59 sales over past 12 months
  • Median price over past 90 days:  $89,500
  • Current Actives:  31

Fruitridge Manor (orange)

  • 13 sales over past 90 days
  • 66 sales over past 12 months
  • Median Price over past 90 days:  $85,000
  • Current Actives:  31

The most obvious difference above is the striking change once you head North of 21st Avenue from Tallac Village to Tahoe Park South. If one were comparing property values between the areas above, the median price levels alone tell you that property in the current real estate market in Tahoe Park South sells for a great deal more than Tallac Village or Fruitridge Manor. For more information on the Tahoe Park area, click HERE.

We can also see that Fruitridge Manor and Tallac Village have a similar median price level and so they appear more similar on paper. However, one important difference to note that comes from knowing the local market is that the bulk of houses in Tallac Village are block construction (yes, houses made out of block) in comparison to the typical stick-built houses in Fruitridge Manor.

Knowing local neighborhoods is important when buying a house, investing in real estate and definitely when appraising properties. This post is not meant to be exhaustive, but only briefly informative. If you have further questions or any real estate appraisal needs, you are welcome to contact me at 916-595-3735 or ryan@lundquistcompany.com. 

http://www.lundquistcompany.com/blog  A Lesson in Neighborhood Boundaries: Tahoe Park, Tallac Village & Fruitridge Manor in Sacramento

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Fannie Mae’s Definition of Market Value

June 24, 2009 in Appraisal Stuff | 3 comments

As an FYI for any readers, this is Fannie Mae’s definition of market value, which is contained in the Fannie Mae appriasal form (1004) that is used for most conventional loans:

imagesMarket value is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Examples: If you sell your house and include your red corvette in the garage as part of the sale, it probably wouldn’t fit the definition above because the buyer very likely paid a higher price for the house because of the machine parked in the garage (#5). Or if there are $50,000 of concessions contained in the purchase price, chances are that the buyer paid more for the house to get the benefit of money back, right? (#5) Or if a property is listed on the market for 1 day only, it may have been under-priced and not reflective of the market, right? (#3) (not always the case if a property goes quickly, but often so). Or consider when a family member sells to another family member and how the sales price is often much lower than it would have been if a non-family member purchased the house. This would very likely not be an arms-length transaction where each party is acting in his own best interest (#4). Or imagine a couple is getting divorced and they need to sell their house quickly. The house sells $30,000 below other recent sales in the neighborhood and so it does not fit the definition of market value (# 2 & # 3).  These are the types of issues that appraisers must consider constantly (and these are the reasons why speaking with local Realtors is a crucial part of our job. Having reliable and accurate information leads to better appraisals). 

If anyone has questions, feel free to contact me at 916-595-3735 or www.lundquistcompany.com

http://www.lundquistcompany.com/blog  Fannie Mae’s Definition of Market Value

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Lundquist Appraisal Blog: iPhone and PDA View

February 27, 2009 in Internet Stuff | No comments

I configured the Lundquist Appraisal Blog to be viewable on the iPhone or any PDA. If you are able, please take a look and let me know if it works on your particular phone. Thank you.

This is what the Mobile Phone View should look like:

lundquist-appraisal-blog-pda-view-0051

http://www.lundquistcompany.com/blog Lundquist Appraisal Blog: iPhone and PDA view

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Project 680: Serving Rancho Cordova & Folsom

February 26, 2009 in Giving Back, Rancho Cordova, Resources | No comments

Blogs can sometimes be hubs where over-sharing takes place, huh. Have you ever read something and thought, “whoa, that was way too much information.” Well, that’s not the vibe here, but I do want to get a little more personal and share something close to my heart.

After learning recently that there were 680 documented cases of homeless students last year within the Folsom Cordova School District, a group of residents and I decided to something about it. We call ourselves Project 680 and we seek to find simple and practical ways to assist these “680″ students located in Folsom and Rancho Cordova. 

The Project 680 Promo Video Explains it All: 

On March 11th, 2009 at 6:30pm we have a community forum set up at 10600 Coloma Road in Rancho Cordova (Cordova Neighborhood Church is giving us free meeting space). We’ll meet with the District Liaison for Homeless Services, have a Q&A, and then take part in discussion as a community about what it can look like to support local students. This is about working together to discover simple solutions to a real problem that is relevant to many areas in the Sacramento Region. You are invited and please spread the word. For more information, see www.cordovatowne.com, leave a comment, or give me a call at 916-595-3735. Thank you.

What does this have to do with real estate appraisal? Not much per se. But isn’t it great when we can pool our resources together to make a meaningful difference in the lives of local students? Isn’t it wonderful when local businesses can network and promote something altruistic that impacts the local community? In both our personal and professional lives we can find ways to bring positive change in our communities, even in this economy - that’s the good stuff in life.

Have a tremendous day of business everyone!!!

http://www.lundquistcompany.com/blog Project 680: Serving Rancho Cordova & Folsom

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The Skinny on Lowering Property Taxes (Sacramento Region)

February 20, 2009 in Property Taxes, Resources, Sacramento, Tax Appeal | No comments

Have you received a letter? My household has been mailed two so far claiming that XYZ Company will help me lower my property taxes if I send themhouse some money. Fellow residents, may I offer some advice? If you feel that the Assessor’s Office did not get your home value right, then don’t waste your money on out-of-area companies like this? If you need to contest your property tax levels, use a local specialist who knows your neighborhood very well and can personally talk you through the entire property tax appeal process.

 

Here is what you need to do:

1. First off, wait to see what the Sacramento County Assessor’s Office says your home is worth. They should have this data available around May 2009 (hopefully). Figures for 2009 property taxes aren’t even out yet, so be leery of companies that promise to be able to “lower your taxes” if they don’t even know what your home is assessed at?

 

2. If you are not satisfied with your property tax assessment, you can contact the Assessor’s Office and fill out a “Decline-in-Value Reassessment Application” between July 2, 2009 and November 30, 2009 (NOTE: Some other local counties besides Sacramento have a filing date of September 15, 2009). Basically, the application asks you to provide two similar properties that sold in 2009 between January 1 and March 31. Honestly though, this step is not an appeal and the best use of your time is to go straight to step 3. If you do want to do this step and you are unable to provide the needed information, I am capable of doing so for a very reasonable fee.

 

3. You can file an “Application for Changed Assessment” with the Assessment Appeals Board by November 30, 2009 for Sacramento County. This application basically asks you to provide evidence for your opinion of value. If you can supply this evidence through your own knowledge and research, that’s great. If not, this is where we can work together. As a local and reputable licensed real estate appraiser in the Sacramento area, I can act as a consultant on your behalf and provide detailed evidence of the true value of your property. With my detailed knowledge of how the appeals system works and what they look at to justify lowering property values, I can be a crucial asset for your property tax situation.

 

4. Don’t wait until the end of November to do Step 3. Make sure you have enough time to get your appeal in (or I can do that for you). After the November 30 deadline for Sacramento County, there is nothing more you can do to contest your property taxes if you miss the deadline.

 

Please contact me with any questions at 916-595-3735. I look forward to helping you understand the tax appeal process and working together if it is relevant for your needs.

 

http://www.lundquistcompany.com/blog The Skinny on Lowering Property Taxes (Sacramento Region) 

 

 

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