Peak Mortgage November 2014 Mortgage Market Update with Pitt Miller

Barry Asks Pitt Miller of Peak Mortgage for an update on the status of the mortgage industry in Sacramento and surrounding areas.

Pitt Miller Peak Mortgage

Pitt Miller

Barry Mathis: We’re going to jump out for a market update for our mortgage market update. Hey Pitt Miller what are you doing?
Pitt Miller: Well I’m just calling in now but I have been listening in to your great show, how are you today Barry?
Barry: We’re doing awesome. We’re going to be revealing our two new additional steps in our 79 point marketing plan which is now an 81 point marketing plan. But tell us what’s going on in the mortgage world. I heard that they’re giving away money again that it’s all free loans out there now.
Pitt: I love the way you say that giving it away. Well as you know for some of our clients last week rates are low. We have a 30 year fixed rate that hovered around 4% for 15 years under three and a half.
Barry: Hold on a second did you say under three and a half?
Pitt: Under three and a half Barry.
Barry: That’s amazing.
Pitt: But what I really wanted to talk about was how prepared a buyer needs to be. One of the questions I always get with customers in working with them is, can you ensure the deal’s going to close on time because we want to set up our sale of our one house to buy the next house. I want to talk about what it takes to make that happen.
Barry: Let me hear it, what do we need to be doing in advance to make that happen?
Pit: There’s the key word in advance. More than ever you really need to take the loan through the full approval process. What that means is you submit all the documents to the lender. You get the lender to under ride it and give actual full approval upfront. So if it’s an FHA then that’s a DE underwriter, if it’s a conventional you get it fully approved and then once we get it in contract it’s very realistic that we can close inside that 30 day period.
The biggest push back that we get from clients and the thing I have to help them through is just the documentation of tax to close. That seems to be the number one issues that always takes extra time and I kind of want to explain that.
Barry: If I go to the casino and lay down a black chip and I win that’s not good enough documentation?
Pitt: That was great thank you. Let’s talk about that, that is acceptable if you have the documentation to show that it was a pay out from the casino and you want it, and then we’re going to want to see if on the tax return you have a history of making money from the casino.
Barry: I don’t think anybody has a history of making money from the casino.
Pitt: That would be a surprise. What I normally see is people are used to people questioning their deposits into their bank when we look at their bank statements and that’s what it boils down to. We have to question or source all deposits into the account and that’s just sometimes frustrating with buyers.
I kind of preach that people take the time upfront let us vet everything, let us get the documentation done and then once they write the contract with you then you get on to the things like home inspection and little things to close not big things.
Barry: Absolutely, well thank you so much for joining us I really appreciate it. if somebody wanted to reach out and get a hold of you, it sounds like you’re being really prepared in trying to make sure that there’s no surprises. I tell you these kind of surprises are emotional, and heartfelt, and people cry. There’s moving trucks in the yard and people are sad, so we don’t want to have these kind of surprises.
So if somebody is trying to solve that in advance and being pro-active how do they get a hold of you?
Pitt: Well you get a hold of me by calling Barry Mathis, and Barry will refer you to me, or you can contact me, Pitt Miller, directly. Thanks Barry have a great day.
Barry: All right thank you very much. You heard it, we do have that from time to time. When you hear about the tightening of the credit market when you’re listening to the tightening of the credit market these are really some of the things that they’re talking about it’s those unmentioned things. It’s not that you now have to have a 700 FICO in order to get your credit.
You can get your credit with a much lower FICO score. You can get a credit with actually surprisingly low, in the low 600s and even some programs that don’t even have credit scores. You can get approved for a loan it’s just this kind of stuff the documentation, the making sure that you really can source your funds. That’s actually the tightening up of it.
When they say they’re being conservative that’s what they mean.
Missy: This is part of a real estate marketing plan Barry. When you are thinking about buying or selling a house you need to have that planned and part of the plan is the mortgage, is the financing. If you don’t have a plan, you don’t have someone to talk to that is an expert what are you going to do?

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Freakonomics in Real Estate

Freakonomics in Real Estate Sales

Barry V MathisBarry: Freakonomics is a book you would really like, it’s that kind of book. You’ve got to stay awake when you read it, you better get some coffee and sit down and read it. but it’s a great book and he talks about these anomalies that happen with things that we’re all familiar with.
Freakonomics [Revised and Expanded]: A Rogue Economist Explores the Hidden Side of Everything

Here’s an anomaly, real estate agents sell their own houses many of them do right. They sell houses for other people and then they sell their own houses. What do you think happens when a real estate agent sells their own houses? Do you think they sell it super fast?
Missy: You’re about to tell us.
Barry: I’m about to tell you. I’m putting her on the spot here. You know what they actually take 10 days longer on average to sell the house if they don’t own it themselves.
Missy: Okay so why, why do you think they do that?
Barry: Well my agent buddies may not like this answer but I think.
Missy: Just be honest and be real.
Barry: I’m just going to be real with you. I think it’s because they negotiate harder. I think that they’ve got more back and forth and it takes a couple of days to get that negotiation dance back and forth and I think they negotiate harder on their own deals.
That’s probably actually in many cases I have clients tell me not to negotiate just take their answer. I had a client this week we got an offer on a property but you know what he’s ready to sell his house. I would have countered him and I told him I would counter and we would have made an extra $10,000 on the sell if we had done a counter and I think we would have got it. I’ve been doing this for 14 years, I know when we can get it you know what I mean.
I think we would have got that 10,000. He said, you know what I don’t want to do that I just want to take the offer. So I think what’s happening is there’s nobody in that conversation that’s getting them to go ahead and accept an offer that they negotiate harder on their deals.
It not only takes them a little bit longer while they wait for the right offer, but they also get 3% higher on their sales price than if they’re working for a client.

For your convenience you can purchase the book Freakonomics from Amazon below.

Missy: But I think also too maybe it plays into the whole fact that they know their home. You know what I mean? They know the property, they’ve lived in it, they feel it and maybe they just.
Barry: I bet you they’ve cleaned it.
Missy: They’ve cleaned it, they probably put new flowers in the front garden, they’ve done a lot of things.
Barry: Have you ever gone on to a car lot, any car lot even the scummy used car lot on the south side of town. If you’ve ever gone to a car lot you get the car and it’s dirty no. They detail the cars, even the cheap car lots detail the cars. Matter of fact the cheap car lots that may be all they do is detail the car. They clean the car before they sell it.
Missy: That’s part of marketing too.
Barry: that’s presentation.
Missy: Exactly.

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How to sell my house for more money

How to sell my house for more money is a question on a lot of peoples minds. Barry Mathis and Missy discuss what it takes and even give you an example of a site for one of Barry’s houses.

Homes For Sale in Sacramento CA Real Estate SignBarry: All right Sacramento, that’s me that’s my cue we’re back. We’re talking about marketing your properties and speaking of marketing properties let’s do a little bit of marketing for one of our properties. We have an incredible property out in Citrus Heights, it’s not going to be like anything else you find out there.
This property has been totally remodelled with massive granite countertops, all new stainless steel appliances, French doors, counter depth refrigerator, flat surface oven range, brand new dishwasher, matching stainless steel microwave, new lights, new fans, new carpet, new bathrooms, new kitchen, everything is new in there.
Custom fit 42 bottle wine chiller that’s actually my favorite part of the whole house. It’s got this little blue light inside of it. It just really tops off the market. If you want to see how your property should look when you’re marketing them, check out this website http://6037whitecloud.com.
Go out and check that out and we’d love to sell that property to you. It just took a reduction in the price, the owner of that property is wanting to move it he does not want to hold it through the holidays.
If you’re out there and you’ve got a house on the market you’d better be doing the same thing. There’s nothing wrong with your house, you don’t have a psychological connection with a house where if I don’t over price it, it means I don’t like the house. No there’s nothing wrong with your house, you just need to sell it.
And guess what, the way to sell it is you drop the price until it sells as long as you have great marketing in place. So that’s the mantra that you hear all the time from agents is, drop the price until it sells.
As a matter of fact I just went to a conference and you know what they say when they’re in darkrooms by themselves or big rooms by themselves? What they say is only price sells houses, it’s all about price. That’s what they say.
Missy: Oh my goodness.
Barry: They say, only price sells houses and I agree that if you overprice a house here’s what the truth is. If you overprice a house no amount of proper marketing will sell that house. But to tell me that only price sells houses is absolutely false and if that was the case Nordstrom’s wouldn’t be in business. It wouldn’t be there.
Missy: That’s true and different coloured tile, and carpet, and paint, and pictures that you have in the house it’s not just based on square footage. It’s not, it’s very much emotion and honestly when you go into a home and you feel what you want to feel when you buy a new house that’s going to help sell the house.
Barry: You hit the nail on the head right now. Emotions sell houses, feelings sell houses. And my job is an agent is forget the word agent, very little of what I do as an agent has little to do with having a real estate licence. I think a lot of people get this idea 14,000 agents have a license in our local area.
Only 9,000 of them sold a house at all last year. And out of the 9,000 that sold a house, very few of them I think I believe the number is somewhere around 75% of the houses were sold by 20% of the agents. It’s not quite the 80/20 Pareto principle. But 70% of all the houses were sold by the top 20%.
That means 70% of those houses were sold by the top 1,800 guys. That’s just crazy. let me get beyond that though, the reason that you’re hearing this idea that only price sells houses is because the agents aren’t marketers.
The agents are just doing their agent thing. I segued into two different thoughts there.
Missy: Yes you did, I’m with you. I am tracking you.
Barry: I can see that look on your face. Okay what I was saying is I’m a marketer, having a license.
Missy: And your side job is agent.
Barry: Yeah exactly. Having a license and doing the real estate transaction and protecting people legally that’s a part of what I do. I’m very good at that, I have loyalty as a backbone I love doing that. That’s one of my core values is protecting my clients.
It gets me in trouble sometimes with other agents but that’s one of my core values. However that’s actually not the majority of my job. The majority of my job is to position that house so that it sells for top dollar.
Missy: For your clients and here’s the thing with marketing. You’re trying to marketing a message, a feeling, an emotion about a home. Every single home is different so your marketing plan for each home could be a little bit different but your main goal is to communicate how wonderful that home will be to the new potential buyer right.
Barry: Absolutely and you hit another part of it on the head right there.
Missy: I’m hitting heads all over the place.
Barry: We don’t rehearse it at home we just talk. You’re hitting it because it’s about a plan. Do you even have a marketing plan? Did you have a written marketing plan or did you just list your house with somebody that said I have a license.

Barry Mathis Sacramento Real Estate AgentHello this is Barry Mathis, the voice of real estate in Sacramento for over a decade. If you’ve been waiting to sell your home until the time was right you may find that that time has come. With the recent rise in local home prices your home may be worth much more than you think, online pricing sites such as Zillow or Trulia simply fail to provide an accurate picture of your home’s true market price.
To receive a true value report from a real live professional, simply call me Barry Mathis at 916-225-7777 or visit our website www.truevaluereport.com.

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November 2014 Real Estate Prices in Sacramento and Market Update

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Sacramento Home Prices – November Market Update

Join Barry as he shares what’s happening right now in the real estate market for the Sacramento and Placer counties.

Barry Mathis Sacramento Real Estate AgentI’m going to jump right in here. So the data is the number of sales for Sacramento County was up 15.7% from one year ago today so that’s the kind of data I’m going to give you today. Is your to date numbers over year over year numbers.

Number of for sale listings was up 15%, the number of sales listing was up 34% in Placer County so that’s a big increase in Placer County. And it was down 4.8% Placer County and down also in Sacramento County from the previous month so it’s dropping off. So the listings are dropping off really because of the holidays.

So you have huge increase on both counties, you’ve got a good sized increase in inventory year over year and then you have in the last month because people are settling in for the holidays you see that little bit of a drop off. So the number of sold listings what actually sold was five percent higher in Placer County and was down 5.9% in Sacramento County.
I really want you to notice that, we’ve got different markets at play, we’ve got different forces. And mainly that’s based on the difference in pricing in the two different counties. Number of sold listings was up 5.1% year over year in Placer County. What you’re really seeing there is that the median price moved up, you’ve got less homes that are short sales and distress sales so what you’re seeing in that is not a revival of a market what we’re really saying is just that there’s more traditional sales.real estate growth

That’s what’s explaining that difference. If you look at the number in Sacramento that 5%, almost 6% that’s a much bigger market so those numbers are felt a lot heavier. So I really want you to pay attention to that, don’t think those thing are exactly equal.

There is some things you really should be paying attention to, the properties under contract. The pending properties are up in October month over month. That’s a big deal that they’re up in October, you should be getting some activity October wasn’t that bad of a month. We had a great month in October, I think we did around six houses in October and so that was a great month for us, for my team that’s awesome.

What you’re not seeing is huge increases in price per square foot. In both counties it pretty much stayed the same. In Sacramento County it’s $174 a square foot, in Placer County it’s $194 a square foot that’s the average price per square foot and that’s pretty much the same.

If you go back over a year you’ll find that it does increase but most of that increase came before June of 2014 so don’t read too much into that. And your days on market, days on market in both counties is increasing. In Sacramento County it’s 37 days on market, in Placer County it’s 44 days on market. And one other thing a point of interest there, is that the difference between the listing price and the sold price is tightening up.

There’s something big for you to know and that is we’ve got about 2.5 months worth of inventory, in both markets.

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RTRE ep 161 The Best Time To Buy Real Estate

Barry Mathis Sacramento Real Estate AgentDownload this latest podcast below and listen in as Barry discusses the best time to buy real estate. You can get the show notes here.

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Warren Buffett, Sammy Hagar and Missy Wilson Giving a Smooch

Here’s a conversation with Barry and Missy Wilson where they discuss everything from public speaking, smooching, Sammy Hagar’s new restaurant, the tragic deaths of local sheriffs, and they even mention Warren Buffett. Read on and see what it’s all about.

Barry: All right Sacramento this is Barry Mathis and we are live in the studio with Missy. Missy give out your last name, your contact information, where you’re from.
Missy: Missy Wilson Be Real Management and Marketing in Los Angeles, beautiful downtown Redondo Beach I’ve been doing it for over 15 years. Marketing and radio broadcast advertising.
Barry: Awesome and if you’re out there and you want to see Missy, if you want to see the face behind the voice and if you want to catch her smooching than you can go to our website and you will catch Missy Wilson in the act of giving a man a smooch.
Missy: That’s my son Barry. Keeping it clean.
Warren-BuffetBarry: That’s what all you LA socialites say right. That is her son and daughter and she’s on there. I love to see people that their families get involved. I mean I remember one time I went to a guy’s presentation and it was his company and he had a big sized staff.
He’s now working for Warren Buffet it was a good sized company and we went to his presentation. His daughter was in the back of the room taking notes on the presentation. Unless you just got this screwed up psycho family that’s usually a good sign that what you’re saying is true. I know that my kids, if I’m up front and I’m saying something, that my kids don’t think is right they’ll call me on it.
Missy: They’ll let you know, they’ll let you know right away.
Barry: They’ll go,”dad that wasn’t right.”
Missy: Keeping it real.
Sammy Hagar RestaurantBarry: Hey speaking of keeping it real if you’re out there, if you’re part of the friends of Placer County Sheriff’s Department if you guys know that we just lost some deputies. We have a new spot in Roseville, Sammy’s Island bar and Grill and you’ve heard me talk about Sammy’s before. That is Sammy Hagar and he’s done a lot of good things there for the city of Roseville.
Now he stepped up and did a benefit for the family of Placer County Detective Michael Davis. It was done on Wednesday night November 12th, 2014 from 11 am to 10 pm. If you went there for lunch, a portion of those proceeds were donated to the Davis family.
Our hearts and prayers go out to those famines not only in Placer County but also in Sacramento for those deputies that we lost. It was a celebration of life. It was an honor to celebrate life with those families.

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Show Notes: RTRE ep 161 The Best Time To Buy Real Estate

When is the best time to buy real estate?

Opportunity concept.Is it when rates are low? When you find the house you love? When your family starts growing? All of the above? Most people start looking for a house when they “feel” ready. What if there were a way to calculate the best time to buy and whether your paying off someones mortgage by renting when you could afford your own home?

Listen in today as Barry Mathis answers all these questions and more on the KTKZ online radio player http://goo.gl/90vpkG.

Below are the charts and data tables he will use to show you how to make a logical decision instead of decision based solely on emotion. Trust me, the emotions are much better when you know you’ve made the right decision.

Scroll left or right to see more info

 

Click the image below to go to the live renting vs. buying calculator

Screen Shot 2014-11-15 at 9.20.42 AM

Click this image to see the full calculator that will tell you if you should keep renting or take the step and finally get that house you’ve always wanted.

 

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Sacramento Real Estate Agents Have A Job But Most Don’t Do It

You may be surprised as you hear what a real estate agents REAL job is. You can be equipped next time you search for an agent. Listen in to Barry and Marketing Maven Missy Wilson as they discuss what makes houses sell for top dollar.

Download the full podcast here.

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RTRE ep 160 The Difference a Marketing Plan Makes When Selling Your Home

Be Real ManagmentIn this episode of Real Talk On Real Estate Barry discusses real estate marketing plans with Miss Wilson from Be Real Management.

Click here to read the show notes and here’s the transcription

Download the podcast below.

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