A client called yesterday to share bad news with me. Patricia (not her real name) just received a pink slip and will soon be out of work. She is part of the national growing trend of single women home buyers, and had bought a home last month in College Greens, a popular Sacramento neighborhood just over the river near Sac State. It closed a few weeks ago. But instead of sounding depressed over the terrible news, Patricia was bubbling over with enthusiasm and joy. I was confused.
The reason for Patricia's giddiness was because although many of Patricia's friends had encouraged her to buy the biggest home she could afford to buy, she instead bought a home well below her means. Her mortgage payment is less than rent. She called me to say thank you for guiding her to make the right decision.
I take a personal interest in my clients. They are not just another escrow to me. Part of being a real estate agent means helping people to do what is best for them. I'm not afraid to lay out options for buyers and speak up if I think they are doing the wrong thing.
In uncertain economic times, like those facing us in Sacramento right now, it's smart to think ahead and prepare for the worst. State workers are furloughed 3 days a month, which means about a 15% reduction in pay for many of them. Sacramento unemployment is almost 12%.
The CALIFORNIA ASSOCIATION OF REALTORS offers a free 6-month Mortgage Protection Program to first-time home buyers. It pays buyers up to $1,500 a month if that home owner loses a job due to a layoff, but not many buyers are taking advantage of this program. For various reasons, Patricia didn't qualify for that program, but even so, she's not about to lose her home because she can afford her mortgage.
It's not always wise to buy a bigger, more expensive home with all the bells and whistles just because you can. Sometimes, it's better to buy a smaller, more affordable home.
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.
Photo: Big Stock Photo
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
Elizabeth: This is a great story, oddly enough. While there is bad news, it doesn't mean that this buyer is about to become one of your listings. I wish that all agents in this business took their responsibilities to their clients as seriously as you do. Perhaps there would be fewer families listing their hoems for short sale because their interest only arm finally adjusted.
Good advice Elizabeth, and a great story. She can comfortably look for employment without panic. Professional real estate service doesn't mean selling the customer the maximum, but properly situating them. Clearly you are a professional!
Elizabeth
Great story; when she bought within her means it allows her to rough out the storms and avoid the amazing anxiety that has been in our market for sometime now with all the stress one accumulates with many of the associated pitfalls of the times.
Elizabeth, This is another great example of your abilities! My husband wanted to buy a bigger home in 2007 and am glad we didn't, he was laid off and we were still able to pay the mortgage on our existing home. Whew!
That's great that your company is offering that. Our company Nova Home Loans is actually Insuring against job loss as well, we started that a few months back, and it has been a home run. People need assurance in uncertain times.
Elizabeth - It's nice to hear good stories where someone made a good decision and when faced with a bad situation, doesn't have to shift into full-on panic mode. I think the 6 month mortgage protection is a great idea. We don't have anything like that in Nevada that I know of. I am sure it's a real confidence booster in California.
Smart move. We have a lender in our area that is offering the insurance to public employees for a year. In these uncertain time it can be a very smart decision.
Elizabeth- You had a very wise client! My own home would probably be considered modest by many. I bought it as a cosmetic fixer in 1983. It's not overly large, although when my kids were at home it was a bit of a struggle. Over the years, as I had the money, I fixed it up, upgraded, updated, and added a really nice covered patio, etc. This house has served me really well!
I think the tendancy is to move away from the McMansion, and into more simpler, and manageable digs for the future.
I had no idea about the California Association of Realtors Mortgage Protection Plan. Thanks for the heads-up!