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Real Estate is an “Essential” Business

April 14, 2020

Real Estate Is An Essential Business

With strict regulations in place regarding self-distancing, what is to become of the real estate market? While California real estate sales is now deemed an “essential” industry, it does not mean back to business as usual.  All realtors still need to follow health guidelines and each city and county can stipulate what that looks like for their community.

“Necessity is the Mother of inventions”, but with regard to the situation we face today in the midst of Covid-19, it could be rephrased to read:  “If necessity is the Mother of Invention, than adversity must surely be the Father of Re-invention.”  In keeping with this philosophy, realtors across California have devised old and new ways to stay in touch with their clients and pursue their business, maybe not in the usual way, but still successfully.

Among the ways realtors and clients have been able to communicate is through a virtual tour.  Utilizing this tool, a realtor agrees on a specific day to walk through the prospective home with his/her buyer via a video app.  (Prior to this exercise, all would need to agree on the app to be used that would be the most comfortable for the buyer.) While “showing” the home, the realtor would comment on the features in each room that are noteworthy and could possibly be overlooked, e.g. high ceilings.  Finally, when the realtor has returned to his/her car, there should be a discussion regarding the overall feeling for the property and any specific questions the client might have.

Among the other tools realtors can employ are the old standbys of email, text, phone calls and video calls.  With the latter, be sure that your client is using the same platform you use. Maybe when we are on the other end of this pandemic, we will find these tools to be valuable enough to keep

Bottom line:  Stay calm and breath!  This won’t last forever, and our clients will appreciate whatever efforts you make on their behalf during this time of crisis.  Homes will still need to be bought and sold when we see the end of this.

Is It The Right Time To Sell Or Buy In California?

March 3, 2020

Is It The Right Time To Sell Or Buy In California

People generally believe that the winter months are not the best time to list their home for sale; however, a recent report in Showingtime, a real estate industry magazine, reveals how this year is different all over the country: Buyer activity is way up compared to the same time last year.

The West, specifically, saw the greatest growth in activity with a 23.1% increase – believed to be the best in the history of record keeping.

In the past, most people thought April was the beginning of the surge in buyer activity – not anymore!  There is a lot of speculation about why the search for a home is shifting to an earlier start.

The one thing we do know is if you’re thinking about buying or selling a home this year, the earlier you get started, the better.  With the reality of fewer homes on the market in the winter, waiting for more competition in the spring might be a mistake. It makes sense to sell when there is a greater demand and less inventory, and according to the experts, that time is now!

No need to fear beginning to search for your new dream home before selling your present house. If you should be fortunate enough to find the home of your dreams, but don’t yet have the funds from the sale of your old home, Sun Pacific Mortgage can help you with their bridge loan program, even if you have less than stellar credit.

We have been able to span the gap between old and new for our clients over the past 32 years of alternative financing.

If you would like more information regarding our real estate financing programs, give us a call at 707-523-2099 and we would be happy to help you determine your eligibility.

Q4 2019 Sonoma and Napa Counties Real Estate Reports

February 25, 2020

Q4 2019 Sonoma And Napa Counties Real Estate Reports

Recent Sonoma and Napa Counties real estate statistics reveal a flattening of the market experienced last quarter:

Napa County

  • # of closed sales = 276 (1% decrease over prior year)
  • Average sales price:  $1.0 Million (9% decrease over prior year)

Sonoma County

  • # of closed sales = 1,022 (2% decrease over prior year)
  • Average sales price:  $788,000 (1% increase over prior year)

As of February 2020 Sonoma County Real Estate Market Results:

  • Median Price:  $660,000 (+4.8%)
  • Average Price:  $796,992 (4.6%)
  • No. Sold: 208 (-24.6%)
  • Pending Properties: 357 (+25.3%)
  • Active:  586 (-8.3%)
  • Sale/List Price Ratio:  98% (-0.3%)
  • Days on Market:  94 (+23.4%)
  • Days of Inventory:  84 (+2)

At present the market remains divided between listings that buyers find appealing and well-priced (which sell quickly) and listings that sit on the market for longer periods and require price reductions to sell.  The difference, most probably, is a lack of preparation on the part of the seller to show the property at its best or pricing buyers find unreasonable.

What can we expect going into 2020? According to economist Broker Rosen at UC Berkeley we are looking at the Bay Area median price to remain basically flat, that is, within a 2% range either way.  This means it would look very much like 2019. Nobody can accurately predict the future, but this report sounds much less sensational and more reasonable than others.

If you are looking for a fast loan or cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099.  We have helped thousands like you to achieve their dream of homeownership or to purchase investment properties as a path to wealth.

Real Estate Predictions for 2020

February 11, 2020

Real Estate Predictions For 2020

At the end of the year all eyes are on the new year.  Too bad we don’t have a crystal ball to predict the real estate market of the future.  We only have the current situation and historical trends to guide us.  

Real estate market trends are driven by several factors:  inventories, home prices, interest rates, days on the market, regional differences, population shifts, and global stability to name a few.  No wonder it is virtually impossible to predict the future.

Let’s look at a few the driving forces which have influenced real estate in the past:

INVENTORIES:  Housing inventories have fallen for the past 43 straight months, going back to 2016 according to the noted housing expert, Eman Hamed Mashvisor.  This shortage has driven up prices and increased competition, especially in the entry-level home market.

HOME PRICES: The rise of home prices has outpaced income by 31% since 2013.  2019 saw some moderation in pricing, but still leaves the appreciation rate for 2020 at 3.7%.

MORTGAGE INTEREST RATES: Rates continue to drop for the conventional lending community.  Those who fail to qualify for these loans can look for relief from alternative financing Hard Money lenders, such as Sun Pacific Mortgage, to help get them into a home or invest in rental properties.

MILLENNIALS:  Don’t discount the impact of the immense millennial market in 2020.  Their demand for entry-and-mid-level homes in urban areas could help keep us in a seller’s market given the lack of inventories.

 

What have we learned from history and from this examination of the present market?  Real estate is a complex entity. The only prediction that is guaranteed for 2020 is the world of real estate will remain interesting.  Get ready to enjoy the ride! 

What a Difference a Decade Makes!

February 4, 2020

What A Difference A Decade Makes

Just ten years ago, many homeowners were desperately trying to hang on to their homes.  Trying to sell a home was considered a nightmare. Buyers were having a struggle to find a financial institution that would lend them the money to purchase or refinance a home.  Thank heavens that is all behind us!

The fundamental landscape of American real estate has changed in many ways.  This phenomenon is especially evident in California where more people are moving out of cities, and Millennials are replacing the Baby Boomers and Gen Xers as the dominant buying forces. One constant has been the lack of homes for sale making it difficult for buyers since 2015.  Even if home construction increases slightly, it still won’t be enough.  

Buyers are done with “overpaying”.  This has happened already in major cities like San Francisco where housing prices have skyrocketed and driven many to more affordable locations, even if it means increasing commute times.  

By the middle of 2020 the oldest Millennials will be turning 39, and it is predicted that they will account for more than 50% of the mortgages taken out in the country.   Millennials are going to be a big factor in the homebuying industry because it is at this age, that they begin to think of having a family and are more motivated to become first time home buyers.

Sellers of entry-level homes should be very happy in 2020, because these homes will continue to be the most in-demand properties.  Higher end sellers should be mindful of the competition and price their home competitively if they don’t want their properties to sit on the market for extended periods.

While we are all enjoying a healthier real estate market, compared to the one we suffered through a decade ago, we still have our issues:  lack of inventory, construction restrictions, and over-priced homes. But, as with all good (and bad) things, it too will pass.  

The real estate market has always been cyclical and the 2020 prediction is that real estate values will continue to increase, overall making it a good time to sell or buy!

Can’t Afford a Professional Stager for Your Home Sale?

January 15, 2020

Can’t Afford A Professional Stager For Your Home Sale

While we have all witnessed the dramatic transformations on HGTV when a home is put on the market, we are pretty sure the price is more than most of us can afford.  So, what can we do to make our listings as attractive as possible without breaking the bank? Here are a couple of tips that might help and save you money, too: 

  • Fluffy white towels:  Bathrooms are the second most important room and selling feature of your home (right after kitchens).  You can freshen up a tired bathroom with a six-pack of premium soft white hand towels for under $15.00 from Walmart (a good place to find staging props).  Roll them up and place them in an attractive basket or simply pile them up on the counter. In the master bath you might want to fold them by the tub to give a spa like feel.
  • Round Accent Mirror:  Mirrors always make a room look larger and they go with any style or age of the home.  Use them above an entryway or hallway table. They make a good filler for an empty wall.
  • Fake plants:  A simple plant, such as a fern, especially one that looks strikingly realistic, can draw a buyer’s attention to a certain area or piece that would otherwise go unnoticed.  Faux plants have come a long way these days. 
  • Flameless candles:  LED flameless pillar candles add a warm glow for less than $20 at Walmart.  Place them on a tray and use them on a coffee table or dining table.
  • Print arts:  A large art print creates a focal point.  Consider packing away all your personal photos a replacing them with a reasonably priced art print (again from Walmart or Pier 1).  If it is the right size for the space, it can add a sleek, modern feel to the room.
  • Colorful pillows:  Every room needs a splash of color and there is no more economical way to provide that touch than a pillow.  These can add a pop of color for under $15.

You can make your listing look like a professional staging job with just a little effort and minimal expense.  Take some tips from the many home shows on HGTV, become your own DIY decorator and very likely capture a higher sales price for your house!

 

Landscaping 101: Blunders and Remedies

October 15, 2019

Landscaping 101 Blunders And Remedies

Landscaping can be an expensive item on one’s household budget.  Making mistakes can be costly and disappointing. Here is a list of some factors to consider that can assist getting a greater yield on your investment:

  • Improper Plant Placement:  Sunlight and exposure are extremely important to the health of any plant.  You need to be aware of how big the plant will get. Check the tag on your plant or ask advice from your neighborhood nursery. 
  • Trees:  One of the quickest ways to kill a tree is to plant it too far into the ground. This is the surest way to encourage root rot. The hole should be the size of the root ball.
  • Plant Like a Painting:  Place your containers where you want them, and then go inside and look through your window to see what they’ll look like before you plant.  It should look like a painting framed by your window.
  • Curb Appeal:  Instead of putting your energy and money into the backyard, which many homeowners do, improving the front of the house where first impressions are made could be a better use of your funds.  Three simple improvements go a long way: paint the front door, keep the grass trimmed, and plant colorful flowers.
  • Make a Plan:  Buying plants without a plan can be tempting, but very expensive.  Before setting out to the nursery, decide on a color palette that you would like.  Consider the color of your house and then choose one color that really frames it.  

 

Landscaping can be 30% more expensive than any other type of home improvement project.  There is always a lot of sticker shock at the nursery. We tend to think, “It’s just a couple of plants.”  When we are faced with the total bill for the wagon load of beauties we have chosen, we realize we just blew the entire budget!   Avoid unnecessary do-overs or “buyer’s remorse” by doing your research before you go to the garden center. 

Don’t Get Caught Up in the Drama du Jour – Real Estate Stability

June 26, 2019

Real Estate Stability

Lately, we have seen the financial media spouting fear, uncertainty, drama, and doubt.  Wall Street sends us on a roller coaster ride every day, while the Everyman continues to go to work, get the same paycheck, pay the bills and largely tries to ignore all the drama.  This explains why investing in Main Street has proven to be so attractive. 

While stock prices are on a dizzying ride, the real estate market offers some modicum of stability.  Real estate’s resilience isn’t invincible, just consider the pain of the 2008 market, but investors in real estate can usually react in time to avoid disaster.  These investors continue to collect their passive income and acquire equity, untouched by all the drama on Wall Street.

Watching macro-trends is still vitally important to any investor.  These provide clues about long-term patterns and warn of systemic breakdowns.  Staying abreast of market fluctuations makes for a successful investor.

The Wall Street roller-coaster ride may be exciting for the young and daring, but most folks want stability, ease, and the ability to keep ahead of real-world inflation.  This is the main reason income-producing real estate is so attractive right now. 

Renters, coming to the realization that they are paying someone else’s mortgage, not their own, are entering the home buying market in increasing numbers.  With prices stabilizing and inventory inching up, home buyers are beginning to look once again at becoming homeowners. In addition, some existing homeowners are taking the appreciation gained over the past several years and investing in a rental unit.  It behooves Realtors and Lenders to relay this to their potential clients. 

Don’t want to deal with the messy issues involved in being a landlord?  Perhaps, you might want to consider becoming a private investor in hard money loans.  In this scenario you achieve passive income on your investment but avoid the “landlord blues”.  Your money is much safer with real property and, if borrowers are vetted well, you can rest easy that your hard-earned money is safely preserved and producing more than the normal return interest for you.

Sun Pacific Mortgage is a family owned and operated hard money lending business.  We have been in business for 31 years and enjoy a sterling reputation with our investors and our borrowers.  

Brokers & Lenders, Realtors and potential Investors feel free to give us a call at 707-523-2099 to discus the various ways we can assist you in increasing your success rate or diversifying your portfolio. 

You can also find out more about what we offer and how you can work with us on our website at www.Sunpacificmortgage.com 

Four Things Parents Should Consider Before Buying a Home

June 4, 2019

Four Things Parents Should Consider Before Buying A Home

Parents shopping for a home have different considerations than other demographics.  As parents, their primary concern is the safety and well-being of their children, at the same time, they are also concerned with the happiness of the entire family.  

Most buyers start their home search with a list of “must-haves”.  When children are a concern, there are some additional factors to be considered.  While they may seem obvious, it is tempting to forget them when under pressure to find a home quickly, or when you discover a fantastic feature in a home that you “can’t live without”.  The following are some of suggestions to keep in mind as you look for your next family nest:

  1. Placement of the bedrooms:  Depending on the age of the children, you might want them on the same floor as your master bedroom, or if you have older children, you might opt for more separation.
  2. Yard placement:  Most parents want the visibility to observe their children at play in the yard.
  3. Walking distance to amenities:  Life will be easier if you can avoid or shorten car trips to deliver children to their activities and their schools.
  4. Neighbors:  This is a vital part of any parent’s concern.  It makes sense to check out the neighbors who live nearby.  There are helpful websites to access, like Megan’s Law, and simply meeting the neighbors before purchasing, may be reassuring.

When all is said and done, life will be less stressful after the move if these considerations are part of the decision making.

The 2 R’s: Real Estate and Retirement

May 14, 2019

Real Estate And Retirement

More and more baby boomers are arriving at retirement age and are facing the question: “To sell or to stay?”.  A wise step to take at this juncture is to evaluate your home’s ability to adapt to your retirement needs. Below are some of the factors that a National Board of Realtors have suggested:

  • Affordability:  Would moving to a property with HOA dues offset the overhead of maintaining your own home?  Would your taxes go up or down? Would your monthly retirement income be enough?
  • Equity:  The equity in your present home may be enough to purchase your retirement home with little or no mortgage.
  • Maintenance:  As we age, we have less tolerance and stamina to handle the day to day maintenance a home requires.  Perhaps a condo with an HOA fee would be worth the peace of mind.
  • Security:  As we age, we are more concerned than ever about our security.  Having a gated community with 24-hour security can be a great comfort.  An extra set of eyes looking out for you can provide a much-appreciated sense of well-being.
  • Pets:  More and more rentals ban our pets.  This is another reason to own in retirement.  Consider your furry friend when making the decision about where to live.
  • Mobility:  While you may still be agile and active when you make this decision to move, keep in mind that down the road you might need assistance.  We hate to think of ourselves needing accommodations for our fragility, but it will make sense if the time comes. Consider the home layout and be certain it can adapt to your possible future needs.
  • Convenience:  How close do you want to be to family and friends?  The amenities you use most often should be near enough to make it convenient to access them without difficulty.

As you begin your evaluation, start with your current house and consider its ability to adapt as you age.  Then decide what course of action makes the most sense regarding your living situation in retirement. If you need help with financing, Sun Pacific Mortgage is here with alternative programs to assist you in purchasing or refinancing your dream retirement home.  Feel free to call us at 707-523-2099 with your questions and scenarios. We are happy to support you as you make this momentous decision.

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