A Lesson for Victorian Homes from the Eureka, CA Earthquake

Many of you will recall that Eureka, California made national news on January 10, 2010 when a 6.5 earthquake rocked the city. We counted our own blessings, and were promptly forgotten by the rest of the world, when 2 days later when a 7.0 earthquake destroyed the country of Haiti. We in Eureka were truly fortunate, as there were no injuries, and relatively little property damage. My family lives in a 1902 Queen Anne Victorian home in the Henderson Center neighborhood of Eureka, and we sustained some property damage as our home rolled with the ground – lots of broken glasses, some dumped bookshelves, and our spice rack got de-alphabetized. (tear, sniffle)


Like all Californians, though, I know the “big one” is coming, so I immediately vowed to put a concrete perimeter foundation under my Victorian as soon as I could afford it. When a friend asked me how we had fared during the earthquake, I mentioned my plans. He gravely told me that was a bad idea, as the rigidity of the concrete perimeter would transfer more of the force of the earthquake to my home, thereby causing more structural damage; but the original post and pier foundation would allow the home to roll with the ground wave, and minimize the structural damage. “Why in the world do so many other updated Victorian homes have concrete perimeter foundations?” I thought. Hmm. What to do?

A couple of months ago I was visiting with a local civil engineer, Neale Penfold Sr., about the home of a client, and it was evident to me that he was in the talking mood after a long day. I decided to make it productive talk, so I asked his opinion; “Which is the better foundation for a Victorian home to survive the next big Eureka quake, a post and pier foundation, or a concrete perimeter?” He said, “Neither.” Mr. Penfold confirmed that post and piers allowed a home to flex, and that a concrete perimeter did indeed transfer more shock to the home.

He went on to explain a 3rd way. He said that lots of folks in the Eureka area have had lots of luck with a reinforced, braced post and pier system, whereby the posts are set on structurally enhanced concrete footings much bigger than the originals. The house is then attached to the posts, and the posts to the piers. Finally, the piers are cross-braced pretty extensively to one another. He said that this combination had the flexibility of the post and pier foundation, and the strength of the concrete perimeter foundation, and with the added bonus of being cheaper to boot!

Any other California Victorian owners out there? What experiences have you had with your home and earthquakes? Send them to me at Jeff@RealtorJeff.net!

Humboldt County, California Real Estate Statistics, September, 2010

What is the state of the real estate market in Humboldt County, Califorina? Our "Active" homes, while starting out the year lower than last year, crossed over 2009 in August, and have been tracking slightly higher than last year since. While this certainly isn't bad news, it does neutralize one of the good pieces of news we had through the first half of the year. If real estate inventory is down, it would certainly seem to put upward pressure (or neutralize any downward pressure) on home prices. Moving from under to over 2009 just removes a little reason we have to be optimistic.

Similarly, our monthly "Sold Homes" numbers were running higher than last year until July. They dipped under 2009, and started tracking pretty closely with 2 of the 3 most recent years. Again, this isn't bad news in itself, but it does take away one of the main real estate market factors for keeping home prices flat or rebounding. It seems to indicate that the same ooze south we've been seeing for the past 2 years is not finished.

Sure enough, while it's not a lot, the average home sales price insists on tracking just a bit below last year. Indeed, our real estate sales prices do seem to be going ever so gradually lower.

Our median home sales price is a little more decisively lower. It has been below our psychological $250,000 floor for over half of the months so far this year. It is pretty clearly indicating that Humboldt County home prices, while not falling dramatically by any means, are in a pattern of gradually lowering.

Does any of this worry me? No. One day in the future, you will be sitting around with your friends, and someone will say, "Dang, I wish I would've bought real estate in Humboldt County back in ____." And there will be a date in that blank. It could be September, '10. It could be October, '10. It could be January '11. It could be May of 2013. We don't know, but I am relatively sure that, with the elections coming up in a month, that both the Federal and California state governments will be making some changes that will improve our economic situation, and with that improvement will come a bottom and a turn up for the real estate market.

Getting Ready to Sell Your Home

So you're going to sell your home and you need to get ready. What do you do? The first thing is to call me ((707) 499-7111) so we can sit down together, evaluate the value of your home and your goals in selling, and then plan a strategy to accomplish those goals. After that's done, you can start on this list.


1) Go through your home room by room, inside and out, with 2 pads of paper. On one pad write everything you love about your home. Start with the physical features, but then go beyond them. How does the morning sun come through that window? Where do you put your Christmas tree? How does it feel to have your family over for Easter dinner? What are the neat things about living in your neighborhood? Think about the highlights of your home in each season of the year. I will use these items in preparing my marketing materials so we can hook those buyers' hearts and minds and give your home a competitive advantage over other listings.

2) On the second pad of paper, write down every problem or repair you've made on the home. You'll need this list for your disclosures. Under California law, a seller must tell the buyer about every known problem with the home, even the ones that have been repaired. And there's nothing worse than being dragged into court after the sale to confront a lawsuit over non-disclosure of some item. So disclose until it hurts. If you think you might, maybe, just possibly need to mention something, do it.

3) Start packing. You ARE selling your house, so you WILL be moving. Start now. Pack up personal items first - pictures, trophies, all those quaint figurines that collect on our end tables. Next, move out all of the stuff that's not going with you. You can yard sell it, give it away, or take it to the dump - just get it out. Then, pack out those extra appliances and pieces of furniture that are cluttering up your home. De-cluttering can be the biggest money-maker you do in getting ready to sell your home. And don't put it all in the garage! Rent a mini-storage unit if you must. It will be worth it.

4) Clean, clean, clean! This is the 2nd biggest money maker you'll do. Clean the carpets, the walls, the ceilings, the top of all the light fixtures, behind the fridge and stove, the windows - everything! Hire a professional if you need to. Not only will cleaning make your house look crisper, it will smell better, and feel better. Smells can be one of the biggest turn-off's to potential buyers, and they will touch things you never touch - window frames, door trim, bath-tub caulking. So get it clean so the buyers can focus on your positives and not get distracted.

5) Lastly, after consulting with me and our sales plan, make any repairs or improvements that will add to your bottom line. Some repairs will pay dividends; others will cost more than they bring in, so we must be careful. Full kitchen and bathroom remodels almost never pay for themselves. But fresh paint, in a neutral color, almost always turns a profit. Updating the landscaping can pay big dividends. Even flooring can be done relatively inexpensively. But call or e-mail me first. (707) 499-7111, Jeff@RealtorJeff.net

Getting the house ready to sell can easily make a 10% difference on the purchase price. For more tips, drop by the Sellers page of my website or become a fan of my real estate Facebook page. Then, get started early, be consistent, and follow through. You'll be glad you did.

July 2010 Humboldt County, CA Market Statistics

The statistics show that July was a good news/bad news month for the Humboldt County, CA real estate market. First the bad news: inventory is up and sales are down.

As with the rest of the country, the expiration of the federal home buyers’ tax credits has created a lull in the market, with many people that would have bought in July deciding to buy in April and May to take advantage of the tax credit. A month later, there are fewer buyers, leading to fewer sold homes, and more homes left on the market.

The good news is that it didn’t affect prices much at all. The average home sales price actually rebounded from June, up to $287,939, the highest in the last 12 months.

The median sales price also rebounded, but to a more modest $246,000.

What will the future hold? There is still a great selection of homes on the market, and interest rates are at historic lows. One day we will all say, “I wish I would have bought real estate in Humboldt County back in _______!” What will be the date in that blank? It could be today! If you like the idea of buying at low prices with low interest rates, give me a call at (707) 499-7111, or search the available properties on my website.

Should I Use a Broker, a Realtor, or Someone Else?

Who should you use to represent you in a real estate transaction? An agent? A broker? A Realtor? Here's a brief explanation of real estate agency.

An agent is someone who acts on behalf of another person. A real estate agent acts on behalf of his client to buy or sell real estate. In California, the "agent" is the agency for which the individual "agent" works. I am an agent, but I work for the agency, Ming Tree GMAC Real Estate. Ming Tree GMAC is the agent of record.

Per California law, each agency must be run by a Broker of Record. This is a person who has been licensed as a real estate broker by the state, and who takes responsibility for all of the real estate activities that occur under the license of the agency, or brokerage. A Broker of Record might choose to hire no one, and to operate as an independent agency. In that case, he is the broker of record, and the salesperson; he must keep up with the latest court cases and laws about real estate, the latest technology, the latest marketing strategies - he is a one man shop! He does it all.

Other brokers of record might choose to hire other real estate agents to work as sales people within their agency. These sales people can have a brokers' license (often they are called broker associates) or a salesperson's license. In this type of agency, the broker of record concentrates on the legal issues, institutional marketing, and support systems of the agency; the salespeople focus on meeting with clients and selling real estate. While a brokers' license does give a certain amount of additional credibility to a salesperson, it doesn't necessarily make them a better agent. One of the top agents in our office only recently got his brokers license, after he had a successful 15 year career as one of the top agents in the county!

Brokers of record, broker sales people, and licensed sales people are Realtors if they are members of their local Realtor association, like the Humboldt Association of Realtors, their state association (California Association of Realtors) and the National Association of Realtors. These associations are trade associations, and all of their members are designated as Realtors.

I am a real estate sales person licensed to sell real estate throughout the state of California. The agency for whom I work, Ming Tree GMAC Real Estate, has approximately 30 sales agent, an office manager, a transaction coordinator, an agent education coordinator, and a marketing coordinator. All of this help means that I can focus on my clients and meeting their real estate needs. Call me at (707) 499-7111, or drop by my website so I can help you with your real estate needs.

How Much Is My Home Worth?

Clients always ask me, “How much is my home worth?” The first step is remembering that neither you as the seller, nor I as the real estate agent, have the power to make your home sell for a certain price. It is the market that determines the fair market value of your home. What is the market? It is the price at which 2 buyers are willing to argue over your home. How can you ascertain what that price will be?

The most general way is to look at the asking prices of homes that are similar to yours. Go to the search page at www.RealtorJeff.net, type in the general characteristics of your home, including the neighborhood, and discount the prices by 10%. This will give you a pretty good rough estimate of the value of your home.



As you get closer to selling your home, give me a call (707.499.7111) and I will prepare a CMA, or Competitive Market Analysis. In a CMA I gather the most recent sold homes, pending sales, and active homes that compare closely to your home in regard to house specifications and selling features. I make adjustments, and am able to determine a price range where your home is likely to sell. In general, sold homes will tell you what you are likely to sell your home for, while homes actively on the market tell you what your home will not sell for.



I provide CMA’s for my clients free of charge, so if you are wondering what your home is worth, give me a call at (707) 499-7111, email me at Jeff@RealtorJeff.com, or drop on by the website!

June 2010 Humboldt County Real Estate Market Statistics

The numbers are in, and our real estate market statistics for June 2010 here in Humboldt County, California are hanging in there. Our "Active Homes," while rising, are still staying below the levels of the last couple of years. “Normal” for this time of year is up to around 650; we’re above that at 709.

Our level of "Sold Homes," 89, is as high as it's been in 2 years. The combination of lower inventory of homes on the market, and the higher volume of sales should support prices, keeping them from going lower, and perhaps even encouraging a modest price increase.

But not this month. Our "Average Sales Price" is down, considerably lower than any recent years, but at $261,265 it's still pretty close to the $275,000 to $300,000 range we've seen for the last 18 months. The trend line is erratic, and only time will tell if this is a downward “bounce” or a trend.

The "Median Sales Price" is down as well. I suspect these averages are down because of a higher rate of "starter home" sales caused by the government home buyer credits than any fundamental shift in the market. Only time will tell.