Landlords Market in Sacramento Area – Bad News If You Are a Renter…!

Rents Are Up “Big Time”…So Start Your Search Early ..!

 

If you’re a Landlord/Investor in the Sacramento Area and recently tried to lease or rent up an apartment you were probably shocked at the responses.  Old news to us in the Residential Investment and Property Management business.rental search

Rents are up so much in the Sacramento Area and supply so low,  if you’re a person looking to rent, you’d better start your search very early and have any credit issues resolved first, because it is a “landlords market”.

You may not have heard but Landlords and Property Managers are experiencing “multiple” applications for just about every unit that comes up.

It doesn’t matter what kind of property we’re talking about either.   Our Property Management company has so many people seeking a Home/Apartment to rent that we have set  up a  “showing/viewing” schedule each week posted on the website instead of making specific appointment times when prospective tenants call.

On most occasions now days we have several prospective tenants come to those showings and many of them will bring a completed application as well.

This kind of Landlord’s market will make most investors smile.   So if you are thinking of getting into the Residential Investment market, this is a great time.   No one seems to know when the rise in Rental Rates will stop because there’s a lack of supply.

With an improving economy with lots of jobs and a lack of supply,  even paying more for the investment won’t necessarily be a bad thing.

Call me at 916-203-1260 or drop a note to favinger@rwnetwork.com and we’ll see if we can’t place you into an investment that works for you.

Now… If you are a prospective tenant with good income…?  May I suggest you think about buying because it will be better for you in the long term.    Call me and we’ll see if we can’t get you “pre-qualified” with the various loan programs that are available to you.

In the mean time…?

Make it a Great Day..!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE     favinger@rwnetwork.com   916-203-1260

 

Folsom or El Dorado Hills Home Prices Are a Bargain…!

San Jose’s Median Home Price – $800,000 range – Folsom/El Dorado Hills = More Home for Much Less.

Prior to moving to  Folsom in 1989, my family sold an 1800 sq foot  home in San Jose for $300,000 and thought we’d robbed a bank in doing it.Home Prices in San Jose - Compare with Folsom & El Dorado Hills

Our new Folsom home was new in the new neighborhood of Lexington Hills.

A brand new 2500 sq.ft. home that included a pool and spa for under $220,000.

It’s plain to see  you can buy much more home for a lot less money in Folsom or El Dorado Hills then you can in San Jose or anywhere else in the Bay Area.

Today’s market is the same and I think we’re about to experience another wave of Bay Area buyers coming to our area to scoop up some homes here that would make a “Central American Dictator” proud.

Check out this article I got from the Silicon Valley Business Journal to see what I’m talking about.

If you live now in San Jose or anywhere else in the Bay Area, Click Here for a list of homes in Folsom and Click Here for a list of homes in El Dorado Hills and let me know what you think.

Some fun facts about our area;   We’ve got awesome weather.  We’re close to the Bay Area and Lake Tahoe.   If you like wine tasting, you don’t have to drive to Napa.  Just check out next door Amador County.   If you have school aged children, trust me, moving to this area was the best thing I ever did for my family because we’ve got great schools with lots of activities and superior academics.

If you are from San Jose or any where else in the Bay Area and thinking of relocating, call me and let me give you what I call the “Chamber of Commerce” tour of the area.   I can help you find the home of your dreams, or… if you’re an investor we also specialize in the Sales and Management of Single Family homes, Duplexes, Four-Plexes and small to medium sized Apartment Complexes.

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE   916-203-1260    favinger@rwnetwork.com

 

Sacramento Area is the Best Area Residential Real Estate Investors

In An Improving Economy – Not Enough Homes – Creates Higher Prices & Rents.

If you’re a San Francisco Bay Area home owner or investor and looking for a place to move to or invest in, you can’t really beat the Sacramento Area.

tamis cambridge
Two Homes On One Lot in Cameron Park Managed by Haven Properties

Prices and rents have gone up but are still a bargain when you compare them with Santa Clara, Contra Costa, San Mateo, Alameda and San Francisco Counties.

Just take a peek at what you can buy here in Folsom and compare that where you live in the Bay Area.

If you’re an investor, you can still get a decent Duplex or Four-plex for under $400,000 and have a “cash flow” which is unheard of in the Bay Area now.    Foreign Investors are just parking their money in the Bay Area in hopes of higher appreciation down the line, but they don’t have a decent cash flow return in the mean time.

I thought I’d pass on this article from the East Bay Times.    Maybe it’s time to Move here and/or Invest here…?

And Finally…. The two things we don’t have as bad as the Bay Area….? 1. No Rent Control… 2 And Bay Area “traffic”.

In the mean time…?

Make it a Great Day…

Ed Favinger, Broker, CRS, GRI, SFR, CDPE   916-203-1260  favinger@rwnetwork.com

 

Is Value Added When You Install a Pool or a Solar System…?

It All Depends… of course…!

If you have pondered adding a Solar electric system to your home or a pool, then take a minute and read here.

There was an interesting discussion started today on a Facebook Real Estate Group page that I and other Brokers/Agents belong to  regarding the costs/savings of installing a solar system.   Ryan Lundquist a local appraiser and Real Estate Blogger pointed out some interesting numbers.

I’ve cut and pasted his question to the group here:

A solar salesman told an owner the system would add $6,000 in value for each kilowatt of power. Since this system was 6kw, it would supposedly add 36K. Keep in mind this home is located in a 350K neighborhood. On a practical level would we expect to see a home without solar sell for $350K and one with solar sell for $386K? Here’s the thing. Buyers don’t pay the full cost of a solar system in the resale market. Moreover, even if it did add $36,000 in value, borrowing that much money for 30 years would cost a Borrower $170 per month (and $61,000 over 30 years). Of course the system is probably only going to last for 20 years though. At the least the first question a buyer should ask if there is at least $170 savings every single month. Thoughts?

After reading the above, I asked him “if a pool costs $50,000 to install, I know you’re not going to get that back,  but is there some kind of a rule of thumb you look at..?”

He had a very interesting response that hadn’t occurred to me, even though I’ve been selling real estate over 30 years.

Ryan Lundquist Good question Ed.

It would be nice if there was one adjustment that fit every situation, but the truth is that 50K pool in Granite Bay is probably worth way more there than it would be in a 200K neighborhood because the market expects a pool like that in the neighborhood.  Thus the adjustment is about where the pool is located and what buyers expect and pay for in that area.

We’d like to think there is one adjustment to apply everywhere, but that just wouldn’t work. On a practical level, we can consider the cost because it probably says something about the quality, but at the end of the day let’s start comparing homes with and without pools to see if we can come up with a reasonable and supported adjustment (or a reasonable range of what buyers having been willing to pay).

It’s okay if there are no recent sales too because we can look through years worth of data as well as competitive neighborhoods. I actually wrote a post about the percentage of pool sales in different areas of town.

When the market expects a pool, it can be a big hit to value when there is not one, but when the market doesn’t expect a pool, it might not be that big of a deal for value to have one.  http://sacramentoappraisalblog.com/…/what-does-the…/

What do you think….?   My thoughts are that what ever you decide to do as an improvement I don’t think you should expect to get it all back.  I would rather look at the test of whether or not the improvement I added would make my life a little more enjoyable when I’m home.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE     916-203-1260 favinger@rwnetwork.com

 

The New Water Conservation Rules – Folsom

Pretty Much The Same…With Some Changes

 

shutterstock - california drought

 

I thought I’d pass on the City of F0lsom’s Website posting regarding the new water use reduction rules because of the ongoing drought.

 

CLICK HERE FOR THE UPDATE

 

Have you started saving water yet…?  Have you put the bucket in the shower to save for your plants…?

 

They also have a great App that you can track your water usage in Folsom called Dropcountr.

 

Take a peek at that app and let me know what you think.

 

In the Mean Time..?

 

Make it a Great Day…!

 

Ed Favinger, Broker, CRS, GRI, SFR, CDPE      916-203-1260     favinger@rwnetwork.com