Category: Real Estate

California Dream For All Loan Example

Our team has become well-versed with the new California Dream For All Loan program and is ready to offer it to first-generation home buyer clients when the program is released next month.  Let’s unpack a common example and see how this program functions.

Assume someone buys a home for $500,000.  They would obtain a traditional 30-year fixed loan at a fair market interest rate for 80% of the purchase price, making the loan $400,000.  Now instead of making a $100,000 down payment, something most first-generation home buyers don’t have, they obtain a 2nd mortgage from the state of California for the needed $100,000.  No monthly payments are required and no interest accrues on this $100,000 2nd mortgage.  But it is not a grant; it is not free money.  This 2nd mortgage is a Shared Appreciation Loan, meaning that when the home buyer goes to sell the property they have to pay back the loan in full AND share in the gained equity with the state of California.

Lets see how those numbers work.  Lets assume this $500,000 home appreciates over the next few years and is now worth $600,000; it has appreciated by $100,000.  Most folks utilizing this program will need to pay back 20% of that appreciation to the state, in this case $20,000 dollars.  So when they sell the home, they will pay $120K to the Dream For All mortgage, the outstanding balance of the 1st mortgage that started at $400,000, leaving them with $110,000 in equity before selling costs.

So, in a nutshell, a borrower who put in nothing for a down payment ends up earning nearly $110,000 in realized equity.  And to do so, they had to pay $20,000 in shared appreciation to borrow a $100,000 loan. 

Here’s another example created by CalHFA worth taking in:

Like any loan program, there are qualifying restrictions and there are limited funds available so a lottery system is being implemented by the CA Housing Finance Agency to award approximately 2,000 folks to utilize the program. Contact my team and I for the full details on how first-GENERATION home buyers can take advantage of this new loan!

GET REAL – Education

Let’s Get Real about Education in Real Estate. It’s not a field that requires a ton of it. To get your license you have to have a high school diploma; that’s it! To keep your license, you need to complete a few courses every four years, and I just completed mine last month.

There are a ton of classes to take once you become a REALTOR, but most of them are offered by sales companies who teach you how to get folks attention. Every day I get emails offering classes on social media mastery, You Tube proficiency, scripts for cold calling, and so on.

I try to focus on education that helps me give value to my clients. Here is a list of some of the educational classes I took last year. Again, they were aimed at learning something new so I could provide value rather than learn a new gimmick just to get your attention.

The real estate industry is constantly evolving, so even though you can get into the business with very little education, it takes a learn-for-life mentality to stay sharp, relevant, and helpful.

Spring Market Comes Before Spring Season

For those of us who miss the sunshine during these cold wintery months, springtime is a welcomed season. With daylight savings and the spring equinox both later this month, it feels like Spring is right around the corner.

But for the real estate market, spring is already here! The months of April-June (known as the Spring Market) are generally when we record the highest number of sales in the Sacramento region. A sale doesn’t typically close until 30 days after the listing goes into escrow, which means the market activity today gets reflected in those Spring month counts.

As this current crazy storm passes through Northern California and the weather eventually heats up, more folks will consider their options to buy or sell. If you’ve been thinking about a real estate transaction this year, don’t wait until Spring Break to do these essential “Spring Cleaning” steps!

  • Buyers need to get pre-approved for financing, check their credit report for any errors, and become laser-focused in the areas or amenities that are most important to them
  • Sellers need to spruce up the exterior of their homes, clear out the clutter, and do market research to identify how their home compares to other recent nearby sales

The Blue Waters Group is uniquely abled to help both buyers and sellers in this Spring Market. As experienced REALTORS and Mortgage Brokers in our region, we are well-versed in the changing dynamics of our market and can best counsel you through your next transaction. We look forward to hearing from you.

GET REAL – Marketing

Let’s Get Real about Marketing. There’s no 1 right way of promoting a business, and in real estate it’s common for REALTORs to use automated ads to stay in front of their clients. Maybe it’s a baking recipe postcard, or an email newsletter written by a marketing agency, or even a video like this where the agent is reading a teleprompter script that they paid for to sound smart on camera. And these tactics kind of makes sense, right?! If we are all busy helping clients buy and sell homes, who has time to create marketing materials?

But that approach sort of backfires when the same copied content is used by many others. Check out this screenshot from my inbox last month where I received the exact same canned email wishing me a Happy New Year from 5 different real estate professionals. There’s nothing personal or sincere about this; kind of falls flat if you’re the audience, right?

For me I make it a point to create all of my own marketing content. In the age of AI and virtual assistants, some will probably say I’m inefficient and old-fashioned for doing so. And they’d be right! But it also makes me genuine and authentic. I would like to think that before you work with me, you would want to know about me, my business, and my approach to serving my real estate and mortgage clients. And how are you learn those things if I’m out here hocking generic stuff that others pre-fabricated to be used by any REALTOR willing to pay for it?

Whether it’s the 200 posts I’ve written at MattsMemos.com, these Get Real videos, or emails if you’re on my mailing list, you can count on me keeping things real. If it’s from me, it truly is from me.

GET REAL – Lead Generation

Let’s Get Real about Lead Generation. Finding new customers is an important piece of any business, but in real estate there is an usually high emphasis put on it. Case in point, a very prominent broker and coach that many in our industry try to emulate says that as real estate agents we have only 1 job – to generate leads. Really?

I’m currently at a property in Folsom that I’m listing for sale this weekend; you can check it out at 105strouse.com. In my time working with the seller and her family over the months leading up to today I’ve worn many hats, and my most valuable jobs for her are in the days & weeks ahead as we market the home for sale, review offers from buyers, and navigate the escrow process. If I was solely focused on generating leads, I would be on to the next prospect and not caring for her when she needs me most.

I get it; in sales you need to always be prospecting, but I think the REALTORs that are really good at generating leads are really good at getting your attention, but are they any good at actually giving you value? Before you hire your next real estate professional, make sure you know if they are more focused on operating a marketing system for their business, or guiding and caring for you through your real estate transaction.

GET REAL – Teams

Let’s Get Real about Teams! I hope your favorite NFL squad is playing this coming playoff weekend…GO NINERS! But the ones I want to Get Real about right now are Real Estate Teams.

They have become all the rage in the past decade in our industry, but I wonder how many of them are truly teams if it’s called the John Doe Team or the Jane Smith Team. Truthfully many real estate teams are more about image, ego, or revenue sharing; an actual team may not even exist beyond the name. 

Not all of you know that in 2018 I took a nine-month sabbatical to live abroad on a sail boat with my family. I spent the six years prior to casting off building and teaching a team to operate without me. While I was away, I did not run my business or interact with clients, and our firm did great without me! It was a testament to the systems we’ve built to not be dependent on any one person, even the leader of the company.

I’ve been back for five years now and am very active and involved again in our operations and serving our clients, but I can’t do what I do at the level I do it without the entire Blue Waters Group! Our clients are better served by us as a team than by me trying to be a one-man-show. The next time you need a REALTOR or Mortgage Broker, give me a call and put the experience of our entire team to work for you.

Winter Is For Home SELLING

You read that right! If you’ve considered selling your home, you better get a move on!

I’ve insatiably tracked statistical trends in the real estate market over my 20-year career. It’s one of my favorite, and most under-appreciated, parts of the job. Back in September, I wrote about how Fall has been the best season for home buyers over the past decade. Is it perhaps a coincidence that I had more clients buy homes this past Fall season than any other time of 2023? Or perhaps my readers are listening to my insights!

Mining from that same data I used last year, its clear to see that the Winter season (what I consider Jan 1st-March 31st) has consistently seen the largest seasonal median price appreciation for Sacramento County homes than any other time of year.  From 2013-2023, home prices have appreciated on average $24,000 during the Winter season, outpacing even the assumed “prime” Spring selling season.

Its often believed that the real estate market “hibernates” during winter. Its true that fewer transactions take place during the winter, but this is the very reason why winter is a seller’s market! There are fewer homes for sale to compete with, but buyers have consistently shown up in our mild California winter seasons prepared to buy, driving up prices.

Presently, there are fewer than 900 homes for sale in Sacramento County, a historically low number by normal comparisons. In my hometown of Folsom, with a growing population of over 80,000 people, there are only 64 homes currently for sale. Overall, this is very unhealthy for our market, but for would-be sellers, it doesn’t get any better than this!

The statistics are again in your favor if you are contemplating selling your home. Maybe health concerns are prompting a sale, or a relocation for work or family. Whatever the reason, if you’ve been thinking about selling your home in the greater Sacramento area, give me a call so we can do some localized analysis on your market, competition, and ultimately potential selling power of your home. With mortgage rates dropping it is sparking renewed interest for buyers to re-enter the market as we head into winter. Don’t think waiting till spring is your best bet. As I hope I just showed you, history would suggest otherwise.

GET REAL – Zillow

Let’s Get Real about Zillow. It is not a public information service nor is it a real estate firm. Zillow is a for-profit advertising company.

Much like Google, when you get search results, the first items or people aren’t necessarily the best ones. They’re simply the ones that paid the most to be at the top of the list.

If you want unbiased and unfiltered information about listings or service professionals in real estate, use the website of a REALTOR. Search all listings in the greater Sacramento area using the link in my bio. No advertising or sponsoring will alter the results of your search.

GET REAL – Attending Inspections

Let’s Get Real…Did your REALTOR attend the home inspection on your last transaction? Why the heck not??!!

It’s such an important step in the buying process; I make a point of being at every one. It may be a big time investment, but it’s one of the best ways to advocate for my buyer clients.

GET REAL – IMAGE

Let’s Get Real about IMAGE in Real Estate. Make sure you don’t fall for flashy marketing and false self-promotion that makes a REALTOR’s image suggest they’re more successful and valuable to you than they truly are. Look for EXPERIENCE and AUTHENTICITY!!!