Do appraisers need to use comps within a one-mile radius of the property they are appraising? That’s a good question. Many times underwriting guidelines of various lenders mandate that the appraiser MUST use comps located within a mile of the subject property.
I was thinking about this today after a conversation I had with a Realtor in Sacramento about his renovated listing that is pending far higher than anything else in the immediate neighborhood. His suggestion was that the appraiser for his deal should use comps North of the immediate neighborhood, while ignoring the most recent sales on surrounding streets. I know, this sounds heinous, but there is actually some validity to his case because the neighborhood to the North is competitive to the subject neighborhood, and only big-time fixers have sold recently on surrounding streets to the subject.
What does Fannie Mae say? The Fannie Mae Seller’s Guide (PDF) addresses the importance of selecting a minimum of three truly comparable properties in an appraisal report, but there is no mention anywhere of a “one mile radius” standard. The Fannie Mae Seller’s Guide is 1,126 pages, so if you are interested in researching more about comp selection, start at page 477 and scan through 5-10 pages. Fannie Mae basically says that the appraiser needs to use the best available similar properties for comparison, and that comps from competing neighborhoods can be used too (but the appraiser must explain why he/she went out of the immediate neighborhood to utilize “comps” from a different neighborhood – there better be a good reason).
Ultimately lenders have set up their own “one-mile” guideline. Many underwriters mandate that an appraiser is to stay within a one-mile radius of the subject property when in a suburban setting and then a five-mile radius when in a rural area. That’s fine as long as the best available comparables are truly located within those parameters, and if the lender can be understanding why this rule does not work out in every case too. In an ideal world, there will be three recent model match sales within a 1/4 mile of the subject property. But anyone in the housing industry knows how rare that is – especially in today’s market.
I can see the value of a “one mile” guideline from a lender’s standpoint because they want to make sure that an appraiser is not cherry-picking comps from a far superior neighborhood to justify an inflated value in a neighborhood where properties sell for astronomically less. For example, when looking at the map above, an appraiser probably shouldn’t be selecting “comps” from Curtis Park or Land Park when appraising in Oak Park - unless there is a sincerely good reason to do so of course.
Let me know if you have any questions. 916-595-3735.
Before heading out shortly to inspections in Galt and Stockton, I wanted to post a new video I just put up on our YouTube page. What do you think? This video highlights my company’s local service in Sacramento. I used www.animoto.com to make the video. Check out the Animoto website and see what you can produce (they even have free music). Animoto will allow you to produce 30 second videos for free, but otherwise you pay $30 for longer videos (and an entire year of unlimited service). There are so many ways to have fun with a service like this. I can think of how it would work for family, business, friends, jokes, holidays, party invites, etc… Enjoy.
Since we are taxed at a rate of up to 1.25% on the total assessed value of our properties, this basically means that for every $10,000 of assessed value you are paying roughly $100. Thus if you purchase a house for $300,000 and the value is $300,000, you will pay roughly $3,000 in property tax per year.
Imagine the following:
Assessed Value $25,000 too high = you overpay by $250 per year
Assessed Value $50,000 too high = you overpay by $500 per year
Assessed Value $100,000 too high = you overpay by $1,000 per year
Assessed Value $150,000 too high = you overpay by $1,500 per year
Assessed Value $200,000 too high = you overpay by $2,000 per year
As I stated in a previous post, my primary residence is currently assesed $35,000 too high and so I am scheduled to pay an additional $350 per year beyond what I should rightfully pay the Assessor. That doesn’t sit well with me. But there are home owners facing much more drastic situations where if they appeal their property taxes, they have a potential to save as much as $500-$1,000+.
Many times local home owners opt out of doing anything to contest their property taxes because they just don’t know what to do. That’s where we come in. We are glad to walk Greater Sacramento home owners through the process of appealing property taxes. We can help you understand what you can do and also what we can do for you. Whether you live in one of the following counties or own property in Sacramento, Placer, Yolo, El Dorado, San Joaquin, Stanislaus, Yuba, Sutter, Solano, or Merced County, give us a call today at 916-595-3735 or email us at LundquistCompany@gmail.com We invite you also to take a look at our property tax appeal website at www.SacramentoTaxAppeals.com
We have put together a property tax appeal FAQ for local home owners within the Sacramento Region. We hope to answer some of your questions and that you will walk away from this document with a better understanding of the tax appeal process and what you need to know as a home owner. If you would like a copy of “Tax Appeal FAQ for Home Owners” , give us a call at 916-595-3735 or send us an email at the email address below. If you email us, try to remember to type “Sacramento Property Tax Appeal” in the subject line of your email since we don’t want to delete you as SPAM. We can also fax this document to you.
The “Arden Manor” neighborhood is located off of Watt Avenue just South of Arden Way and West of the “Arden Park” area. The map below depicts the boundaries of what is referred to as ”Arden Manor”. The subdivisions due West, East & South tend to have larger houses and lot sizes and are deemed less comparable to Arden Manor.
The Arden Manor subdivision consists of single-story houses for the most part which range from 2-3 bedrooms typically. Houses usually have a 1-car garage and tend to be between 930-1200 square feet in size (930 and 1081 are two of the most common sizes). There are a number of households with either converted garages or additions. I have appraised quite a few houses in this neighborhood over the years.
Below are two trend graphs to depict sales over the past 36 months as well as current listings in Arden Manor as of today.
If you have any questions regarding “Arden Manor” real estate market trends or have any appraisal-related needs in the Sacramento Region, please give me a call at 916-595-3735 or shoot me an email at ryan [at] lundquistcompany [dot] com. Our company website is located at www.lundquistcompany.com.
What’s been going on in the “Meadowview” real estate market in Sacramento? Meadowview is an area located in South Sacramento which is bordered by Florin Road to the North, Open Land to the South, Freeport Blvd. to the West, and the Light Rail line to the East. The data and trends below take into consideration the Southwestern portion of the Meadowview area as pictured in the map.
The above area is comprised of mostly single-family detached residences (some duplexes) buit between the late 1950s through the 1970s. There are a handful of properties built in the early 1980s too as well as a newer development within the Southwestern portion of this territory (houses built between 2001-2005).
Let’s take a look at the newer portion of Southern Meadowview:
Meadowview Houses Built after 2000 – Real Estate Market Trends:
These houses were built between 2001-2005
168 sales in past 12 months
45 sales in past 90 days
Median Price in past 90 days: $160,000
Low Price in past 90 days: $111,000
High Price in past 90 days: $260,000
Average of 75 days on market for sales in past 90 days
1948 average square feet of living area
6 Active listings
21 Active Short Sale listings
39 Pending listings (median price of $174,900)
Let’s take a look at the older portion of Southern Meadowview:
Meadowview Houses Built before 1999 – Real Estate Market Trends:
These houses were built mostly between the late 50s to late 70s
151 sales in past 12 months
54 sales in past 90 days
Median Price over past 90 days: $62,000
Low Price in past 90 days: $28,000
High Price in past 90 days: $130,000
Average of 105 days on market for sales in past 90 days
1192 average square feet of living area
9 Active listings
15 Active Short Sale listings
23 Pending listings (median price of $69,950)
It’s interesting to take a look at the data above and to see such a difference between two portions of the Southern Meadowview market even though they are located within the same general area. But this is true in so many settings and we regularly see a dynamic in real estate where buyers are willing to pay more or less for certain areas depending on location, quality of construction, condition of homes, year built, pride of ownership, the public perception of the area, etc… When comparing the older and newer portions of the Southern Meadowview area in Sacramento, there is a clear difference in median price level, size, and maybe even overall appeal. What else do you notice about the data or graphs presented above?
If you have any questions regarding the Meadowview area of Sacramento or any potential appraisal needs, feel free to see my company website at www.lundquistcompany.com, call me at 916-595-3735 or email at ryan [at] lundquistcompany.com I am available to assist local home owners, attorneys, buyers, banks, mortgage professionals and more.
I snapped the following shot while inspecting a Beazer property the other day in Rancho Cordova. This type of sign is very typical in many portions of the Greater Sacramento Region for new construction.
In hopes of selling off their inventory, most builders these days use marketing language such as “Foreclosure Pricing” or “Closing Costs Back to You” or “Tax Credits”. Builders definitely have to compete with the foreclosure and short sale properties within the marketplace and so there is quite a different marketing strategy from what we saw just five years ago. Let’s take 2004, for example, the Builders could pretty much command whatever price they wanted (prices went up 10K a month like it was nothing), “upgrades” were quite pricey, and the builder was definitely in control. Nowadays the buyer is in charge, sometimes the “upgrades” are now included as more standard features, concessions and closing costs offered within the purchase price are more normative, and prices have come down substantially in most areas.
What other ads or signs have you seen in the local market?
Tip for the Buyer of New Construction: Make sure that you are paying fair market value for the house you are purchasing. You need to have a reliable appraiser who understands the current market. It’s nice to get closing costs and concessions included within a purchase price, but if the purchase price is padded so greatly with these things, one must wonder if the house is really worth what it is being sold for. For example, if a house is being sold for $325,000 and there are $25,000-$35,000 worth of concessions within the purchase price, maybe the house is truly worth $290,000-300,000. If the house was offered for sale without concessions or closing costs covered within the purchase price, what would it sell for? That’s a good question to ask and it might save you some money in the long run. Obviously though many times the inclusion of concessions and closing costs is what helps the deal get done and assists the buyer’s financing. Even though prices are much lower in California right now, it is still very difficult for the bulk of buyers to put down 20% of the cost of a home (hence the popularity lately of FHA financing programs with 97% loans).
If you have any questions, feel free to call me at 916-595-3735, see my company website at www.lundquistcompany.comor email me at ryan [at] lundquistcompany [dot] com.
Whenever title transfers on a deed, a real estate appraisal is usually needed. Situations like the death of a loved one, inheritance of property, divorce, refinance, estate settlement, and buyout of other persons on title warrant a credible real estate appraisal so that decisions can be made about the property.
Tips for Hiring an Appraiser for a Title Transfer Situation:
Make sure the appraiser knows the real estate market where the property is located. This is key toward producing a reliable appraisal. It’s okay to ask the appraiser questions about his/her experience.
Help the appraiser understand why the appraisal is needed. Did you inherit property? Are your elderly parents moving and title is transferring to you? Was there a death in the family? Is there a divorce or break-up in progress? The appraiser is bound to confidentiality and cannot by law share your situation with others.
Inform the appraiser what type of value is needed. An experienced appraiser will be able to easily figure this out with you in just a couple of minutes of conversation. Is this a market value as of today’s date or do you need an appraisal based upon a previous date? For example, in estate settlement appraisals, it is common for the appraisal to be based upon the date which title was transferred in the past or the date of death of the loved one. This is called a “retrospective value”.
If you are a home owner working with an attorney and it would be easiest on you for the appraiser to work directly with the attorney, that’s definitely doable. I see it work out either way and I defer to whatever the client needs and prefers.
Remember that the lowest-priced fees for appraisals usually produce the lowest-quality of work (my fees are very reasonable). The last thing you want is for an unreliable appraisal to get in the way of what you are trying to accomplish with a transfer of title.
If you have any questions about the information above or would like to talk more, feel free to call me at 916-595-3735, see my company website at www.lundquistcompany.com or email me at ryan [at] lundquistcompany [dot] com. I am available to help you in your time of need and I am glad to speak with you about your situation.
What’s been happening over the past 30 days in the real estate market in surrounding counties within the Greater Sacramento Region. Let’s take a look below.
Real Estate Data in Sacramento County:
1684 sales over past 30 days
Low Sale: $9,000 (no, that’s not a typo)
High Sale: $975,000
Median Price over past 30 days: $165,000
Sacramento had the lowest-priced sale in the past 30 days out of all the counties in this post.
There are quite a few houses that sold under $100,000, aren’t there?
Real Estate Data in Placer County:
326 sales over past 30 days
Low Sale: $89,000
High Sale: $1,120,000 (2 houses over 1,000,000)
Median Price over past 30 days: $290,000
A much higher median price in comparison to Sacramento County.
It’s interesting to see such a price variance from neighborhood to neighborhood or county to county, isn’t it?
Real Estate Data in Yolo County:
138 sales over past 30 days
Low Sale: $47,500
High Sale: $790,000
Median Price over past 30 days: $220,000
Real Estate Data in El Dorado County:
115 sales over past 30 days
Low Sale: $100,000
High Sale: $1,798,000
Median Price over past 30 days: $335,000
El Dorado County has the highest median price of all other counties listed in this post.
Real Estate Data in San Joaquin County:
1058 sales over past 30 days
Low Sale: $11,700
High Sale: $1,140,000
Median Price over past 30 days: $145,000
The highest-priced San Joaquin County property sold in Tracy, CA.
San Joaquin County has the lowest overall median price out of the counties listed in this post.
If you have any insight or see any particular trends based upon this snapshot over the past 30 days, feel free to comment above. Or if you have supplementary information to add or questions about your own neighborhood, speak on. My company provides real estate appraisals in all the areas mentioned above as well as other nearby counties. If you have any questions, give me a call at 916-595-3735 or shoot me an email at ryan [at] lundquistcompany [dot] com.
http://www.lundquistcompany.com/blogComparing the Past 30 Days of Real Estate Market Trends in Surrounding Counties: Sacramento, Placer, Yolo, El Dorado, San Joaquin
What’s been happening in the real estate market in the city of Rancho Cordova in 2009 so far? Below is a graph and some stats for you:
Rancho Cordova Real Estate Market Trends in 2009:
179 total sales in MLS in 2009
77 current Active listings
129 current Short Sale listings
104 current Pending listings
99 of 179 sales were in the 95670 zip code
80 of 179 sales were in the 95742 zip code (Anatolia)
Overall 2009 Median Sales Price for 95670: $165,000
Overall 2009 Median Sales Price for 95742: $290,000
Low Sales Price in 95670 in 2009: $75,000
High Sales Price in 95670 in 2009: $420,000
Low Sales Price in 95742 in 2009: $220,000
High Sales Price in 95742 in 2009: $510,000
Property Taxes in Rancho Cordova (and Surrounding Counties):
While on the subject of Rancho Cordova, I wanted to say a few words on property taxes. When looking at my blog stats and what keywords people are typing in to get here, it is clear that property taxes are on the minds of fellow Cordovans as well as many locals in surrounding counties. There are quite a few people finding this blog by searching for things like “How to Lower Property Taxes in Rancho Cordova”, “City Taxes in Rancho Cordova”, “Stockton Property Taxes”, or “Placer County Property Taxes” (etc…)
I hope the following information proves to be helpful:
1.Our local cities (including Rancho Cordova) do not collect property taxes. Property taxes are handled through the local Assessor’s Office (for Rancho Cordova, that would be the Sacramento County Assessor’s Office).
2. The Sacramento County Assessor’s Office has not yet released their assessed values for 2009. Their assessed values will be based upon January 1, 2009. You should receive a letter in the mail if they determined that your property taxes have decreased based upon a decline in value last year.
3. When the Assessor’s Office releases their assessment of your property in hopefully May 2009, you can follow a specific set of steps to contest the level of your property taxes if you disagree with their opinion (this process is the same for anyone in Sacramento County or for that matter, anyone in surrounding counties. The exact dates for appealing taxes may differ, so you can check with your local Assessor with specific dates).
4. Read an article I wrote called “The Skinny on Lowering Property Taxes” that gives you the gist of what you need to do to contest your property taxes. I would be glad to help you with this process also. Please see www.SacramentoTaxAppeals.com for further information.
Let me know if you have any questions. I am glad to talk you through the process of appealing your property taxes in Rancho Cordova (or elsewhere) and help you understand what you need to do. Even if you are in a surrounding county that I also serve (Placer, Yolo, El Dorado, San Joaquin….), feel free to give me a call at 916-595-3735. Just last week I spoke with two property owners who found me through this blog and I was able to shed light on what they need to do for 2009 property taxes and also what they could have done in 2008.
How are unemployment levels doing in Sacramento County right now? How is your city or area doing? Have a look at the data below to check out your area or places nearby to where you live. Do you think there is any impact on property values when unemployment rises? Might this lead to more foreclosures? Do you think the large decline in price levels over the past year in many areas below might be related in part to the large percentages of unemployment which have increased sharply? Does it seem like some of the hardest hit areas are also struggling with higher unemployment rates?
Unemployment Rates are based upon information provided from the Employment Development Department from February 2009.
State of California 10.1%
State of California One Year Ago 6.2%
Sacramento County10.7%
ArdenArcade CDP10.4%
Carmichael CDP7.9%
Citrus Heights city7.5%
Elk Grove CDP8.7%
Fair Oaks CDP5.9%
Florin CDP16.0%
Folsom city4.8%
Foothill Farms CDP13.7%
Galt city16.2%
Gold River CDP1.8%
Isleton city11.5%
La Riviera CDP5.8%
Laguna CDP5.5%
Laguna West Lakeside CDP7.2%
North Highlands CDP15.8%
Orangevale CDP7.6%
Parkway South Sacramento CDP18.0%
Rancho CordovaCity12.3%
Rancho Murieta CDP3.3%
Rio Linda CDP15.7%
Rosemont CDP8.4%
Sacramento city12.5%
Vineyard CDP4.9%
Walnut Grove CDP23.6%
Wilton CDP6.5%
For further reference and to look up unemployment information and rates on any county or city in California, see the following links:
If you have any questions about the data above or any other appraisal-related issues or thoughts, contact me at 916-595-3735 or www.lundquistcompany.com
Ryan Lundquist is a Certified Residential real estate appraiser serving the Greater Sacramento Region. He is FHA approved and does work for brokers, banks, governmental agencies, Realtors, attorneys, home owners and more. Ryan speaks some Spanish too.
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The material and information contained on this website is the copyrighted property of Ryan Lundquist and Lundquist Appraisal Company. Content on this website may not be reproduced or republished without prior written permission from Ryan Lundquist. The information on this website is meant soley for educational purposes and is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation or any other potential appraisal-related purpose. The material found on this website is meant for casual reading only. For more detailed market analysis to be used for an appraisal report or any appraisal-related purpose, please contact us for more information. Thank you.
We have put together a property tax appeal FAQ for local home owners within the Sacramento Region. We hope to answer some of your questions and that you will walk away from this document with a better understanding of the tax appeal process and what you need to know as a home owner. If you would like a copy of “Tax Appeal FAQ for Home Owners” , give us a call at 916-595-3735 or send us an email at the email address below. If you email us, try to remember to type “Sacramento Property Tax Appeal” in the subject line of your email since we don’t want to delete you as SPAM. We can also fax this document to you. 
Whenever title transfers on a deed, a real estate appraisal is usually needed. Situations like the death of a loved one, inheritance of property, divorce, refinance, estate settlement, and buyout of other persons on title warrant a credible real estate appraisal so that decisions can be made about the property. 
