The big Real Estate question I get asked is, "When will Real Estate get better in Sacramento?"
Real Estate is a cycle and every 10 years there has to be an adjustment in price.
We were a little late in the 10 year Real Estate cycle and when it hit, it hit hard. The economy has suffered greatly with this economy twist but we will get through it and bring new home buyers into the real estate market that previously had been priced out while cleaning up those scam and fraud artists who were in their heyday for awhile.
We must get through all of the Short Sales and Foreclosures in Sacramento before we see a turn around in Real Estate. There are those who think the Real Estate Recession will ease the second quarter of 2009 with the government takeover of Freddie and Fannie. And yet those that who still profess that there are ARMs waiting to readjust until 2011 which will further continue the Foreclosure market.
There will be a 6 month stabilization after all of the Foreclosures and Short Sales are sold and then home prices will gradually increase. Not the exorbitant 5 digit increase in property values that we saw but a slow steady increase. Homeowners who will realize this increase will be those who took this time to remodel and improve their homes, condos and townhouses.
Added after publishing: Today, there was some good news on the horizon for lessening the bloodshed and possibly getting through all of the Short Sales and Bank Owned homes since the government is taking over Freddie Mac and Fannie May. There is talk that by the second quarter of 2009 we will have an end to this madness. At the same time, there will be more loans available for home buyers and a brighter horizon.
This is a good time to discuss Sacramento Foreclosures and Sacramento Short Sales. These homes and condos for sale are not for every home buyer.
Many of the bank owned houses are sold as-is and not in the best of condition. Some previous homeowners took liberty with the house and their anger and left their homes in very poor condition. Other bank-owned properties may have been broken into and are missing appliance, light figures and unfortunately all of the bank owned foreclosed houses have landscape that needs replacing.
But that's really not what I mean when I say that a foreclosed house is not for everyone. The procedure that the home buyer must endure is nothing short of a miracle. Patience is essential since the banks, who are not in the business of selling houses or condos are managing to make this a drawn out fiasco that could be so much more efficient and timely. As Realtors we know how to make the home buying process efficient, timely and in the best interest of all parties. We know how to sell houses and know how to close within a short time period making home selling less of a stressful situation.
You ask what is the difference between Realtors selling houses and the Bank selling houses? Glad you asked. There's a big difference. If I could talk to all of the banks involved in the short sale and Foreclosure homes for sale, I would say this:
Banks,
Let me list the house, tell me what the bottom line is for you and let me do my job. Let each state use their own Real Estate forms and don't push your forms in my home buyers face, anymore.
Let me open up escrow in the city and county where the house resides instead of another state or a great distance away. When you open escrow with your own selected Title and Escrow companies they don't know where to order the home owner documents for a home owners association, they get boggled down with the hundreds of escrows you have given them so that nothing runs smoothly.
Are you aware banks that home buyers are being asked to close long before they are given the proper disclosures because of your inability to know how to sell a house? The penalty of paying $100 per day for every day that goes by after the close of escrow that you determine when you don't even send the ratified contract back for weeks is ludicrous.
There are Title companies who have gone out of business because they were not on your list to send escrows to and Realtors that are overwhelmed with hundreds of listings that never return phone calls and demand that offers be sent a particular way. Spread out the wealth and let us all do our job.
You expect a home buyer to accept a verbal acceptance from you and have them start spending money on home inspections and yet you take your time sending the formal acceptance with all the penalty fees that they must agree to.
I realize that you are losing money. I also realize that you don't have enough people working toward getting the offers accepted. But, for every day that you delay, it is costing you money. There are home buyers that have become disillusioned by the process and have stepped away, there are other home buyers whose loan programs have lapsed while you took your sweet time.
Understandably, you wish to use your own contracts since every state has a different contract but it would seem that by now you would realize that it isn't efficient and houses are not closing in a timely manner. For many home buyers this has added more stress to the buying process. And I'm sure that your bottom line dollar figure that has put you in the hole has only increased.
Since it is essential that the foreclosed and short sale homes be sold before the economy improves, I would strongly ask that you rethink how you are inefficiently selling houses and condos. Ask the professional who does this for a living and knows how to sell houses. We may be able to teach you a thing or two. You could certainly use the help.
Signed,
Sacramento Realtor
If you would like to check out the Short Sale homes for sale or Foreclosed homes for sale 
simply click on the picture and select the county that you would like to view homes for sale. Next select your criteria for a house or condo and then place an X in REO/Bank Owned Property (which means Foreclosure and Bank Owned) or select Active Short Sale.
It's just that simple. Make sure that you have met with a reputable Mortgage Lender to get pre-approved since loans change almost daily.
We see home buyers who no longer qualify since the loan program that they were going to use no longer exists. As interest rates climb, the home buyer will qualify for less money which means less house.
It is very important that you understand your mortgage loan and the terms. Interest rate is not the only significant part of the loan. Don't get caught in a loan that you regret later. Read the terms.
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For more reading about Foreclosure and Short Sale homes:
Do You Understand Foreclosure?
Search Foreclosure Homes For Free
Short Sale and Foreclosure Real Estate Tax News
Sacramento Short Sales and Foreclosures
The Lights Have Gone Out For Many in Foreclosure Friday Home Buying Tour in Elk Grove, CA
Sacramento Real Estate Writes Letter to All Banks
Are Short Sales and Foreclosures A Good Deal?
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