VA Financing is Frustrating for Vets in Today's Market!

We are experiencing tough times for veteran buyers seeking to buy homes utilizing their eligibility for a VA loan. Veterans can obtain 100% financing. This is a great benefit to the veterans, and I believe they should be the only ones allowed to use 100% financing. Bank owned foreclosures AKA (REO's), are a large part of the current inventory, and these type listings are generally not accepting VA financing, and rarely accepting FHA offers. I'm having the toughest time trying to place my verteran buyers into homes because the banks or asset managers will not entertain offers written with VA financing. The banks sell their REO inventory AS-IS, and mostly without paying for repairs, termite reports and certifications. Most of the listings need work as a result of foreclosure, and due to the huge inventory and huge losses, we are not seeing the banks invest money to make repairs. If banks could invest money to bring up their property to the proper standards, we could sell many more properties to VA and FHA buyers.

Fresno Rejects CalRedd MLS, Returns to Rapattoni

In a surprise move, the Fresno MLS has stopped using the new calRedd MLS system as of 9/1/09, after only 16 days. A majority of Realtor members were "challenged" and frustrated by the new format. We tried to work with the system for 16 days, and I must say calRedd support was making their best efforts to make fixes to the numerous bugs in the system. Myself, I was learning the calRedd system and felt confident I could get my work done, but there was still an endless number of deficiencies. At the rate we were going, it seemed like it would take a month longer to work out the bugs. Some agents felt they were going to be monetarily damaged because of the time involved beta testing, fixes and the learning curve of the calRedd system. The main issue that angered many agents, was the fact the system was released before it had been fully tested. They were leaving it up to the agents to identify problems, instead of beta testing it themselves. It was far from ready on their initial release. At this point, I have no idea what the future of calRedd MLS may be, but if we try this again, it better be a superior working model from the start.

Working with Fresno calRedd MLS Week 2

We are in our 2nd week working with the new calRedd system. We are the working guinea pig agents for the new statewide MLS system. I hope all the other cities that are considering this system for their MLS will pay tribute to the guinea pigs here in Fresno. We are the ones paying the dues here to help beta test and build the most powerful MLS in the world. At least that is what they are hoping for! At this point we are still nowhere near the features that the Rapattoni system had. I must admit, they are improving everyday and I am learning new tricks. I'm still not confident enough in the "auto prospecting" yet to go full steam ahead with my clients, but I can see that bugs are being fixed daily. Hopefully we will get more administrative controls for our agent profile pages. One peculiar thing also, is there are no hyperlinks anywhere on the pages, nor is there any way to verify emails have been sent or recieved by clients. I'm sure it's all in the works. Anyway, it seems the frustration level among agents is easing a bit as some of the search basics are learned by the agents to keep them working and selling properties.

Fresno MLS CalRedd System Starts off Badly

The much anticipated Fresno MLS system, "CalRedd" has started today. So far, I'm not impressed. There are many problems with the new system. We are having issues with the data, searching and property reports are inaccurate. This system affects some 4000 Realtors in the Fresno area, including the public data feeds to my website www.FresnoHomes.net. We expected problems, however the way that they initiated the system was not the best. There is no backup system to use today. They should have had a transition period where our old system, "Rappatoni" would work and we could migrate to the new "CalRedd" system. That is not the case, and basically our business is somewhat paralyzed until we can get the data correct.

Announcing Fresno MLS Changeover August 17, 2009

We are about to embark on a major change in our MLS system august 17th. We are going to a statewide system called "CalRedd". There will be now new listings added to the system between 8/13 to 8/17, so that they can transfer all existing data to the new system. As with most new software systems, there will be bugs to work out. We look forward to the technology changes that will help us in our business. As far as my website at www.FresnoHomes.net is concerned, I am working on some changes to help make it easier to distinguish the listing status of properties, between "active" and "pending" sale status. Also, I am trying to get the option ability to filter out the "short sales" from search results. These changes will result in less frustration among buyers browsing for listings. I spend a great deal of time each day, answering emails from buyers just to tell them that the listing already has an accepted offer.

2009 Fresno Real Estate Forecast

The Fresno County Economic Development Corp had a meeting and Joan Eaton of Guarantee Real Estate presented a report and graphs illustrating the current trends of our local market. Very interesting stats, showing the recent improving sales statistics, and outlook for the market in 2009. Go to: www.guarantee.com/edc to listen to the audio report and view the graphs that were presented.

FHA Loans Proving Difficult with Fresno REO listings

The good news is interest rates are low, and FHA has the lowest down payment and easiest qualifying ratios for homebuyers. The bad news, is that most of the inventory of low priced bank owned homes will not qualify for the FHA insured loans, or the sellers don't want to fix their property to the FHA standards. FHA has minimum property standards, and the popular financing is proving e to be less attractive to the banks when your negotiating an offer to purchase. They would rather sell to a buyer with conventional financing or even better yet "all cash". Let's face it "cash is king", and due to stricter property requirements, the sellers will take the path of least resistance. If the banks could invest a little bit in bringing their properties up to specs, I could sell a lot more properties, and for higher sale prices. Most people only have enough money to buy the property and don't have the extra cash to fix up the property after acquisition. Another alternative is an FHA rehab loan called the 203K, but unfortunately their aren't many local lenders that are using this particular loan and are not well versed in the process of this loan.

2009 Tax Credit For First Time Home Buyers

2009 Tax Credit For First Time Home Buyers

1. The NEW $8000 Tax Credit does NOT have to be repaid if the home buyer stays in the home for 3 years.
2. Escrow must close between Jaunuary 1 and December 1, 2009.
   
3. The buyer must be a First Time Homebuyer which is defined as, "someone who has not owned a home for the past 3 years."

Fresno Extreme Home Makeover

The TV hit show "Extreme Home Makeover" is in town filming the construction of a new home this week at 23 E. Robinson. I've been trying to witness the construction progress over the last couple days to no avail. The police and security have roadblocks and are letting in only a limited number of public looky-loos. The entire neighborhood is a zoo, with lots of people and traffic. Finally today, I was able to walk down the street to the construction site. The owner's story is great, because the owner is very deserving of the new house for their family. I took some pictures below and have some interesting info I dug up in the MLS and public records. The original house was 1213 SF, 3 BR 1.5 Baths and it was bought at the height of the market for $235,000 in Sept. 2006. It was in good overall conditon. They Extreme Home Makeover show demolished the entire house down, and are rebuilding a totally new 3200 SF home that is specifically designed for the handicapped owner. The entire construction of the house is done in about 4 days while the owner is sent on a vacation. When they return, they will film the owner seeing the home for the first time after the construction as the show's star shouts out "Move that Bus" The show will air sometime in March 2009

This is a picture from 2006 when she first bought the home for $235,000

These below are taken on day 2 of construction 1/12/2009

Mortgage Changes Effective January 1st 2009

Here are some mortgage changes we will see in the coming new year.

FHA Loans

1. Maximum loan amount for Fresno area $281,750
2. Minimum down payment will be 3.5%
3. Monthly mortgage insurance .55%
4. Up front mortgage insurance premium 1.75%

Conventional Conforming Loans (Fannie Mae and Freddie Mac)

1. Maximum loan amount remains at $417,000
2. 6 month seasoning required for all cash-out refinances
3. Total number of financed properties is four

Fresno Real Estate Market Surging!

We are seeing increased activity over the last several months as prices have dropped dramatically. Many homes are 1/2 the price they were just 3 years ago! Just last week, I got an accepted offer on a bank owned home in Madera for $157,900, that originally sold new in 2006 for $340,500. The bank is also paying 3% towards buyers closing costs. The home is 4 bedrooms, 3 Baths with 2053 SF of living space. Here is a picture of that listing:

It had been roughed up a bit in the foreclosure process, and needs interior painting and carpeting, but will be a "like new" home when those items are completed by the new owner. Prices in Fresno are slightly higher than Madera, but there are many good buys to be found. The negotiating process is slow with bank owned properties due to the massive inventory these banks and asset managers carry, and buyers must be patient. This home took about 3 weeks waiting for an answer to the offer. It was worth the wait.

Fresno Real Estate 4th Quarter Market Snapshot

Here's how our inventory of active listings in the Fresno MLS stand at the start of the fourth quarter 2008. I ran a search today for all active listings of homes and condos in Fresno and Clovis. The results are a total of 3156 active listings. From the total, there are 681 "short sale" listings or (21.5%), 902 "bank owned" (28.5%) and 1573 (49.8%) traditional seller owned listings.
So from these numbers, it shows that a whopping 50% of the homes for sale are distressed and foreclosed properties.

Important Facts About Buying Bank Owned Properties


Prospective purchasers of bank owned properties (REO's), are hereby advised of the following:

1. The bank or lender that owns the property may require that you sign and agree to the provisions of an Addendum to the purchase agreement.
2. These bank owned properties are sold "as-is", without any inspections or disclosures provided by the seller.
3. Addendums are prepared by a lawyer representing the bank. Guarantee Real Estate is a licensed real estate broker and is not responsible for, and is prohibited as a matter of law from explaining or advising you regarding the legal ramifications of the Addendum. If you agree to the Addendum, you are strongly advised to seek the advice of a lawyer or tax consultant, prior to signing.
4. You may risk the return of your initial deposit or any money delivered into escrow if the transaction is not consumated or escrow does not close. The release or return of funds delivered to escrow can only be released by the mutual, written agreement of the buyer and seller, typically emodied in escrow cancellation instructions.
5. Most Addendums include a "per diem" charge which is a fee charged to the buyer for every day the deal is not consummated/closed, beyond the date agreed to for the close of escrow, regardless of which party caused the delay in closing the escrow/consumamation of the purchase agreement.
6. Some banks or lenders may not be duly licensed California corporations or foreign (out of state) businesses, which may create difficulties in filing suit or recovering monetary damages (or return of your deposit).
7. You can attempt to negotiate the removal of the Addendum or certain provisions thereof, including per diem charges, prior to executing the Addendum. Most banks or lenders will not negotiate the removal of the Addendum or any provisions thereof.
8. If you agree to the Addendum, make sure you read it carefully and proceed with diligence in performing your obligations under the purchase agreement and Addendum thereto.
9. If you agree to pay a "per diem" fee, be sure you, your lender and your Realtor act diligently. If possible, avoid making changes to the purchase agreement or escrow instructions, which may cause a delay in the transaction closing or being consummated.
10. If the bank or lender, or escrow company causes delays in the transaction, make sure either you or your Realtor send and email, fax, or letter to the listing agent representing the bank notifying them of the delay, the cause of the delay, requesting a waiver of the per diem and enclose an Addendum waiving the per diem and granting an extension of time to close escrow, sot he per diem fee can be addressed by the parties, for the bank or lender's signature. Also, send email, fax or letter wtiht he ddendum to the escrow officer, signed by the bank or not.
11. If you refuse to pay the "per diem" fee, regardless of which party caused the delay, you must notify the escrow officer that you will not close escrow unless the per diem fee is waived by the bank. While not required, such notification should be in writing, with proof that it has been transmitted.
12. All contracts for the purchase of real property must be in writing. If a verbal acceptance of your offer is transmittd to you, in most cases it is unenforceable and you do not have a contract for the purchase and sale of the property, or the right to compel performance of the bank by court order, unless you received you offer, signed by the bank and all contingencies have been removed.

Tips In Making Offers On Bank Owned Properties

1. Buyers must be "pre-approved" for financing in advance, and submit a letter of pre-approval with the offer. If the buyers are paying all cash, provide a bank statement or proof of funds at time of offer.
2. Be prepared to have the property inspected by a professional home inspector at the buyers expense. Bank owned properties are sold "as-is" and they are exempt from providing any disclosures. Buyer beware!
3. Buyers must be patient, and expect 3-5 days for a response to their offer.
4. If there are multiple offers submitted, expect a counter offer requesting a final "highest and best" offer.
5. Make the offer clean, and without any contingencies of another sale closing.
6. Banks will negotiate on price and many times will pay some of the buyers closing costs, but they are looking at their highest "bottomline" net cash at closing.

Life is Too Short for Short Sales!

When it comes to making sales in real estate, I focus on the listings that are genuine, and can close escrow. I would estimate that 90% of short sale listings never sell and close escrow. The fallout factor of short sale escrows is huge, because what buyer can and would want to wait months to get an answer on an offer? Sure, the owner will accept any price, because he is not getting any of the proceeds due to his upside down equity position. In a short sale, the sellers owe more on their loan than the asking price, usually tens or hundreds of thousands of dollars. The lender holding that loan, must approve of the short payoff and loss. If they do make that decision, it will happen just before the property gets foreclosed on at the public trustees sale on the courthouse steps. The lender may end up approving some loss, but maybe not at the original price the seller accepted. Buyers are reluctant to hang on for months waiting for an unsure tranasaction, and I don't blame them for backing out. Most of the time the property just ends up going thru the foreclosure process and becoming a "bank owned" listing. When it gets repossessed by the bank, the bank will aggressively price it to sell . The market is full of great listings of bank owned and other well priced listings, so why mess with a short sale. In my opinion, the listings that are short sales are nothing more than a big waste of time. Most agents like myself, won't even show these listings.

Fresno County FHA Loan Limits Increased!

Good news in the mortgage market! As of 3/5/08, the FHA has increased the maximum loan limit to $381,250 for Fresno County. This will significantly help the local Fresno Home market, because FHA loans are available with as little as 3% down payment. Madera county had it's maximum FHA limit was also increased to $425,000. There are many benefits to FHA loans, such low down payment, and easier qualifying.


Search the Fresno MLS database of active listings at http://www.fresnohomes.net/

Auctions of Bank Owned Foreclosure Properties in Fresno!

There are a couple of auctions coming up, one tonight where there will be about 30 foreclosed homes up for auction. This is a very small percentage of the actual number of foreclosed homes currently on the market in Fresno. One thing bidders should be aware of, is that these auctions have a "reserve" price, which means if you are the winning bidder, the bank that owns the home may not allow the sale to thru unless the price meets their reserve price. It's really all about the media hype that goes on with the slick TV advertising and auctioneers driving up the frenzy in bidding. The last time an auction came to town, about six months ago, there were about 20 homes that were auctioned off, but only about 5 of them actually resulted in a successful sale with the bank. There are hundreds of homes available that are bank owned in our active Fresno MLS system. Buyers can search all active listings at http://www.FresnoHomes.net

2008 Fresno Real Estate Market Ripe With Opportunities!!

Amid all the negative news we hear daily, with foreclosures, subprime mortgage losses, and failing consumer confidence, there is some real opportunities for investors and serious home buyers. Many of your average buyers are running scared from national news reports that are creating a lot of fear. Many buyers are asking "when will we see the bottom". Well, by the time we know where the bottom is, it will be too late. Get in the market now!!!I'm seeing many outstanding prices in the Fresno, Clovis real estate market today. Investors are starting to take interest in the new values of homes. Interest rates on new loans are at historic lows. The new guidelines for financing, which is really like the old guidelines: (you have to qualify on income and credit scores) Unlike the subprime days when anyone with a heartbeat could get a loan. Hence we have eliminated some buyers from buying homes, but it is fundamentally sound lending now and this will be good in the future as the economy recovers from the current turmoil. For good credit buyers with some money to invest and hold onto, this is a great opportunity time. It was the unscrupulous lending practices that got us into the mortgage mess and slowing economy as we have now. Prices have been falling steadily throughout in Fresno during 2007 and I've seen another round of price reductions at the start of 2008, and the most aggressive pricing is coming from the "bank owned" listings. The properties are being sold "as-is" and many are in poor condition due to deferred maintenance. Visit my website fresnohomes.net where over 7000 properties can be found by searching the Fresno MLS database.

Bank Owned Properties Are Opportunities in Fresno Market!

If your looking for good deals on bank owned properties, check my Featured Listings page on my website FresnoHomes.net These listings seem to be the most aggressively priced listings in the current market. Many are priced below other similar properties that are owner occupied. These are the deals I hear most people asking for in 2007. What you need to understand is, that these properties are sold on an "as-is" basis, without warranty of condition. Many of the properties are in poor showing condition, due to being vacant for some time and lack of maintenance. For some buyers, this becomes a great opportunity for to get a good price.

"Short Sales" are not well understood by buyers!

There are hundreds of "short sale" lisings in the Fresno MLS today. I have found that most buyers I consult with in the Fresno real estate market today do not understand or know what a "short sale" is. A short sale is a situation whereas the existing loans are larger than the asking price, and the owner of the property is behind in payments. If you were to make an offer on the property, the exisiting lender would be making the final decision on the offer, because the lender would be taking the "short" payoff. From what I see, many lenders are taking their time making these decisions and it is frustrating and misleading to the buyers. The buyers get an offer accepted by the owner, only to find out weeks later that the lender is not approving that sale price!! I see many listings where the listing price of a home is $100,000 less than the balance of the existing loans!! Do you think the lender is going to be cooperative and quick to lose $100,000?? I think not! Many times the lender will not appprove of the short payoff, so foreclosure is the remedy. Typically, the existing owner must be able to prove to the lender they are having a financial hardship to get approval for a short payoff. As an agent, I have to make sales. I avoid showing short sale listings most of the time and discourage most buyers from getting involved. Sometimes it will take weeks for the lender to answer an offer, or the owners hardship is not approved, or the lender just forecloses rather than take a short payoff. Also many owners will find out that if the lender approves of a short payoff, that the amount of debt releived is considered income by the IRS, so there can be an income tax consequence for the existing homeowner who sells under a short payoff sale.

Mortgage Business Changing Fast!

The mortgage guidelines have been changing rapidly over the last few months. We are seeing more escrows failing to close due to financing issues. Due in part to the subprime mortgage crisis, and the increase in foreclosures, the lenders are scrutinizing loans and buyer's qualifications. We're seeing them tighten their belts, and declining loan applications, or making them unaffordable with higher than average interest rates or higher mortgage insurance costs. It's no surprise to me, I could've told you that this was going to happen. Now it's back to the old days, when you had to have verifiable income, good credit scores, and money to put a down payment. The days are mostly over for 100% financing, stated income applications, and marginal credit scores. If you were pre-approved for financing a few months ago, you might want to contact your lender again to go over your loan options.

Motivated Sellers Are Willing To Pay The Costs!

Buyers are asking for help with the closing costs, and they are getting it. This is commonly happening in the Fresno market these days. Most of the transactions I see today, the buyer is asking for at least 3% of the purchase price to be contributed to the buyers closing costs. There are truly motivated sellers that are negotiating on purchase price as well as closing costs. I counsel my sellers to expect to see this kind of activity when they list their home, so it is not a surprise when they recieve an offer with these terms. Most lenders will allow up to 3% of sales price to be contributed to the buyers closing costs. Some lenders allow up to 6%, however this seems rather excessive if you do the math.

The subprime mortgage correction period is happening!

Without a doubt, the subprime lending market has been tightening their belts over the last couple of months. Due to increasing loan defaults and foreclosures, this tightening means more people are pushed out of the market. These buyer will have to qualify now like everyone else and qualify on their income and credit scores. They'll have to save for a down payment and build income to manage payments. Gone are the days of lending 100% financing with stated income, or 100% investor financing etc., where any buyer with a pulse can get a loan. These practices, now referred to by the press and media as "predatory lending" have lead to a decline in consumer confidence and decline in housing sales abroad. The changes will be good for the future, and hopefully there will be some legislation to help prevent these unscupulous practices among loan brokers.

Subprime Mortgage Blues!

You've heard it in the news lately, about the subprime mortgage market that's now in trouble. Well, it's about time! We all knew it would catch up to them someday. It just didn't seem right. People were buying houses with loans they shouldn't have qualified for. Stated income, and or 100% financing and other exotic loans are now bad business and referred to in the media as "predatory lending". The notices of default are coming in very fast now as many of these loans were adjustable rates with prepayment penalties and or balloon payments. With the interest rates rising above market level on these loans, monthly payments increasing beyond affordability and many of the borrowers put little or nothing down, it's no wonder that they are walking away from them and letting their property go into foreclosure. Just today, I had a sale transaction fall thru because of these lousy subprime loans and the lenders involved. It was the second time that this escrow fell thru. Both times the buyers were investors going for 100% financing from the "subprime" market. Both times I had pre-approval letters and from the lenders. I will now be very skeptical of this type of financing in offers presented to me on my listings.

Worthless Pre-Approval Letters!

I can't tell you how many times I receive worthless mortgage pre-approval letters with offers on my listings. They say "congratulations, you are pre-approved for a home loan", then it goes on to say that this pre-approval is based on verbal information given to the lender or some sort of inadequate information disclaimer. The letter is not based on a review of a complete loan application, credit review or anything like that!!! It's a letter that's not worth the paper it's printed on. I see this happen all the time. Do these buyers and their agents think this is acceptable? It's not professional to say the least, and they lose some credibility in the offer. If buyers want their offers seriously considered, they should use a reputable lender and be pre-approved based on a complete review of a credit application, verifications of income, job and bank accounts and have a letter that states all this has been verified. With a valid pre-approval letter in-hand, the buyers offer will have more power.

Short Sale Listings Are Increasing in Fresno MLS!

I am noticing many "short sales" in our Fresno MLS. My advice to active buyers right now is to avoid getting involved with short sales if at all possible. Short sales are situations where the owner is typically behind in his mortgage and owes more on the loan than what the value or asking price is of the property. Even if the owner accepts your offer, you may not get the property, because the mortgage company for the seller has to approve the "short", or approve how much money they will lose by selling to you. Most of the time, it's a huge waste of time for buyers and agents alike because the lender drags their feet and eventually denies the short sale or tries to negotiate different terms than originally accepted by the owner. With so many homes on the market, why get involved in a short sale escrow?

Has the Fresno Real Estate Market Bottomed Out?

One thing's for sure. The market is picking up! Our office is seeing increased activity in 2007 now after the holidays are over. The market was slow during the fall months of 2006, but now I see many buyers and sellers believing that the market has pretty much bottomed out. Many buyers are coming out of the woodwork to look at homes. My website www.FresnoHomes.net has had some incredible traffic increases, Jan 13th getting 459 visitors! On the average I get about 250 visitors per day. I got 3 offers on an investment property I listed, and that is a good sign. Many investors have left the market over the last year, but now I see more of them coming back. The Fresno market is attractive to many buyers, basically it's still one of the lowest priced areas in California. Do you think the market has bottomed out?

Pinedale planning to remain residential

Pinedale started in the early 1920s as a new town for employees of the Sugar Pine lumber mill, seven miles north of Fresno near the San Joaquin River's south bank.

[via FresnoBee.com: Local]

How to deal in a slack housing market

What's the shape of a post-bubble, post-correction real estate market? And more to the point: What does that mean for you in the new year?

[via San Jose Real Estate -- MercuryNews.com]

Is The End Of The End Of The Housing Bubble Near?

Is it the end of the end of the housing bubble? The National Association of Realtors (NAR) seemed to think so as it issued its November report on the sales of existing houses, the second month in a row when sales showed slight improvement over the previous month.

Read More Now

[via MortgageNewsDaily.com]

Betting Everything on the House: 3 Risky Loans to Avoid

Falling prices, sluggish sales and risky loans that let borrowers pile up debt faster than they can pay it off could put more homeowners out of their houses this year than at any other time this decade. Yet many homeowners — particularly in California, Florida and Colorado — are still purchasing or refinancing their mortgages with “exotic” loans that may keep their monthly payments low now, but when these gimmicky loans “reset” upward borrowers could lose their homes if they haven’t planned for...(read more)

[via ForeclosurePulse Blog]

Zillow is for sales, not just snooping

Real estate website Zillow.com became an instant hit by telling homeowners - and their nosy neighbors - how much their houses might be worth.
Comment

[via Real Estate - Topix.net]

Windows prove a challenge

Big windows; little ones. Tall, rectangular windows; small, round windows. High windows; low ones. No matter what shape or size, windows often are a welcome sight as they bring in sunlight.

[via FresnoBee.com: Home and Garden]

Significant Others Need To Think About Their Legal Status When Buying A Home

Significant Others Need To Think About Their Legal Status When Buying A Home

A young relative called over the long weekend. He had just made an offer on a house and wanted advice about inspections and other details. We had been in e-mail touch for several weeks as he worked through his mortgage pre-approval, structured the offer and generally obsessed over a very important decision. But I had never thought to ask a critical question of my own: "Are you and your girlfriend - buying this house together?"

They would, he responded, both be on the deed, but only he would sign the note...

Read More Now

[via Mortgage News Daily - Mortgage and Real Estate News]

Valley Lawmakers Pitch Plan to Improve Air Quality

Valley Lawmakers Pitch Plan to Improve Air Quality

Officials from the San Joaquin Valley have a clever plan for solving the region's tenacious air problems. Whether it succeeds in securing more money is another question. Federal lawmakers are not on board, and environmentalists are raising questions. But no one argues about the valley's air problem. The region's air and economy are among the nation's worst. Health costs related to air quality are ...

[via KnowledgePlex News]

Pending Home Sales Indicate Market Stabilization

Pending Home Sales Indicate Market Stabilization

‘Steady pace' can be expected for next two months, says Lereah

[via RISMedia.com RSS FEED]

Las Vegas Housing: A Perfect Storm?

Special to the Review-Journal I have read several articles recently about the current state of the Las Vegas real estate market. I now know why the public is totally confused. After 18 years selling real estate both here and in Los Angeles, I have seen all the elements that affect a market. But never have I seen the problems facing us presently all coming together at the same time. It's like a ...

[via KnowledgePlex.org News]

Housing prices to fall slightly in '07, Realtors say

Housing prices are expected to drop 2 percent in California, but the market should be slightly better in pockets of the Bay Area where the housing supply is tighter, according to the state Association of ...
Comment

[via Real Estate - Topix.net]

Think buying house in foreclosure is cheaper? Maybe not

Realtor John Izzo stands Thursday by a home that is under foreclosure. He says stiff competition, bureaucratic rigmarole and necessary renovations can make foreclosure purchases difficult.
Comment

[via Real Estate - Topix.net]

Metro: Fresno offers aid for home improvement

Disabled Fresno residents can get up to $10,000 to install a ramp, a grab bar or other equipment to help them stay in their homes instead of a nursing facility, city officials announced Monday.

[via FresnoBee.com: Metro]

Running Horse Golf Course: Up for Sale?

The PGA is starting to look at alternative sites for a pro golf tournament scheduled next year in Fresno. Construction is behind schedule at the Running Horse golf course in Southwest Fresno. Now, talk of a possible sale is only adding to the anxiety for people with unfinished homes in a development nearby.

[via KFSN Front Page headlines]

MAKE YOUR HOUSE A BLANK SLATE

Putting your home on the market often means cleaning, painting and planting flowers to make the house as attractive as possible. But homes for sale also need to be de-personalized, so that buyers can picture themselves living there.

[via San Jose Real Estate -- MercuryNews.com]

WANT A SPEEDY SALE? AVOID THESE PITFALLS

Sellers can learn something from the not-so-typical story of Gillian Tucker and her husband, who recently bought a home in San Carlos whose listing price was out of their price range.

[via San Jose Real Estate -- MercuryNews.com]

Seller Taking Buyer To Small Claims Court!

Well, the story thickens as it's been 3 weeks since the escrow tragedy on 9/11. The buyer will not release the deposit as "liquidated damages" for backing out of the sale. The seller will file a small claims court action today. After several letters going back and forth between buyer and seller, the buyer has offered half the $4000 deposit to the seller. The seller will not accept anything except the entire deposit as damages. Since no agreemnet could be made, the seller is forced to file the small claims lawsuit, and I applaud that action. In fact I am interested in the process and want to learn from it. There have been times in past experience when we just let a buyer back out and get his money back, but this time is different. We were wronged by this man, and there may be some blame to lay on the buyers agent as well. Apparently the buyers agent was aware of the "secret contingency". The buyer wanted the home to be home care facility business with approval permitted from governmental agencies. This was not in the purchase contract that the buyers agent prepared, although he was aware of it. To us, this constitutes a fraud, since the sellers were not made aware of this. We would not have accepted these terms in the original contract, and the fact that the buyer removed all contingencies in writing, and we lost a backup buyer makes the whole scenario worse. We have consulted an attorney looking over the file and he says we should win this case easily. Apparently there is only a small fee of about $26 to file a small claims court action. We will have our day in court!

Some Sellers Just Not "Getting It" In This Market

I recently had a listing expire after 3 months, which is not uncommon in 2006, but it bothers me to know that the seller thinks it's my fault that it didn't sell. I told him that there are three conditions that make a sale: price, terms and condition. The terms are good, because interest rates are still low, so it must be an issue of price vs condition. We had many showings by other agents in our MLS. with agents giving me feedback like: "it needs too much work" or "needs floor coverings & interior paint among other things. I had also advised them to de-clutter the interior, paint the front door, clean the carpets and do several repairs to make the property more presentable. The sellers did not complete my recommendations. In the first month I luckily found a buyer and brought him an offer that was about 10% less than the asking price. It was a good offer from a qualified buyer who wanted to buy "as-is" and fix-up the home himself. The sellers barely came off their price saying "it's early yet, someone will offer more". If we had made a counteroffer closer to the buyers initial bid, I may have been able to work the buyer up a little higher on his offer price. I told them, that by counter-offering back that high, they would be in effect, "buying the property back himself" for that amount if the buyer rejects your counteroffer. And he did, as the buyers rejected the counter-offer made by the seller. Well, here is a lesson learned, as time went on and the market prices deteriorated furthur this summer, it looks like the first offer was a pretty good offer after all because no other buyers made an offer and the Fresno property values continue a slow decline just like everywhere across the country in 2006.

Real Estate: Condos take to the Valley

Home builders in the central San Joaquin Valley are planning condominiums as a way to reach first-time home buyers and to attract families looking for a more carefree or urban lifestyle.

[via FresnoBee.com: Real Estate]

30-year mortgage rates drop to lowest level since March

30-year mortgage rates drop to lowest level since March

Rates on 30-year mortgages fell this week to the lowest level in six months, offering support to the sagging home market. Mortgage giant Freddie Mac said Thursday that 30-year, fixed-rate mortgages dipped to 6.40 percent this week, down from 6.43 percent last week.

[via Classifieds: Real Estate -- MercuryNews.com]

Real Estate: Sellers willing to negotiate

Real Estate: Sellers willing to negotiate

During the go-go days, home sellers put their houses up for sale and sat back as would-be buyers jacked the price up with every bid.

[via FresnoBee.com: Real Estate]

Real Estate: Some 'flippers' stick it out

Real Estate: Some 'flippers' stick it out

Cara Peracchi Douglas doesn't scare easy.

[via FresnoBee.com: Real Estate]

Buyer Backs Out After All Contingencies Removed!!!!

Tradgedy struck again on 9/11, when my seller received the bombshell news from me. I had to call my seller to tell him that the buyer for his home was backing out of the purchase contract, 2 days prior to closing. I represent the seller and another agent represents the buyer. The buyer had removed all contingencies, the loan was approved, property inspected, requested repairs completed. This buyer was an idiot and a flake all along. The escrow started with him bouncing the $4000 deposit check, then after another attempt it was cashed in escrow. Then after 12 days, I hadn't rec'd a pre-approval letter, so I issued a "notice to preform" and was quickly given a pre-approval letter from a lender the agent had just contacted. A week later the buyer changes lenders to Wells Fargo. I was starting to have a bad feeling about this escrow. Just about that time a call from another agent, who was monitoring the escrow and had a backup buyer. We extended the time frames and escrow 1 week to give the new lender time to finish the loan. Then on Sept. 1st I requested that "all contingencies be removed" by the buyer, which was signed by the buyer because everything was done and we were ready to close. We were scheduled to close 9/14 and on 9/13 I receive paperwork from the buyer stating he is cancelling because "the property does not meet his requirements". 1 day before the close!!!!! Can you beleive it?? The buyer even has the audacity to request the return of his $4000 earnest money deposit. To make matters worse, the backup buyer couldn't wait any longer and ended up buying another property. The seller of course has damages and is demanding the entire deposit be released to the seller as "liquidated damages". The liquidated damages clause was initialed by both parties in the contract. Now my seller is going to take the buyer to small claims court and rightfully so! Now I am have to re-list this home on the market. The home is in Clovis at 2648 Hampton Way, a 5BR 3 Bath Centex home built in 2002 with 3163 Sq ft of living space. Current listing price is $489,500

Real Estate: Making homes more efficient

Scott Kruse gives one of the most unusual housewarming gifts around.

[via FresnoBee.com: Real Estate]

3435 Mayfair Dr N. $199,900 IMMACULATE!!!

$199,900

3435 Mayfair Dr. N., Fresno 93703
New on market and clean as a whistle! This 2/1 home should sell because the condition is so well maintained by the seller. Pride of ownership is an understatement. Click on this link to view information from the Fresno MLS system.

http://fresnomls.rapmls.com/scripts/mgrqispi.dll?APPNAME=Fresno&PRGNAME=MLSLogin&ARGUMENT=qtOFlVMH4J%2B3ROI70mu8pA%3D%3D

Fresno Is A Buyers Market!

Yes it is a "buyers market" in Fresno. The amazing thing I'm seeing, is how many sellers are still overpriced and holding on to values from the past. There are nearly 4000 homes and condos for sale in Fresno and Clovis right now. That's an 8 month supply of homes. There are however, many sellers who are truly motivated and the smart ones are making adjustments to their pricing, or offering incentives, such as "buying down the interest rate" for the buyers, or contributing money towards their closing costs. There is huge competition in selling right now, especially in certain zip code areas. I see many listings under $300,000 now in the popular 93720 zip code, which last year was hard to find anything under $300K. My advice to sellers is to compare what's on the market today as your competition and price below that, as opposed to looking at sales comps. Sales comps have to be within the last 3 months to be accurate with the current downward price correction in progress. How long it will last is anyone's guess. Buyers, on the other hand are being cautious and making offers lower than asking price, and rightfully so. They don't want to be caught "upside down" in equity soon after they purchase. My advice to buyers is to either negotiate on price or seller contributions to closing cost as best as they can and buy for the long term investment. Prices may drop furthur, but it will eventually stablize and increase in time. If your a buyer, don't wait for prices to drop, their are many good buys to found today in Fresno from the sellers that MUST SELL, due to job transfers, relocation, divorce, foreclosure, death etc.

Home-building nears 2-year low

Construction of new homes continued its tumble in July, dropping to the lowest rate in almost two years, the Commerce Department said Wednesday.

[via Home Building - Topix.net]

Business: Home sales in Fresno Co. slip

Existing home sales in Fresno County continued their downward slide in July, tumbling 6% from June and 33.5% from a year previously, the California Association of Realtors reported Thursday.

[via FresnoBee.com: Business]

Real Estate: Copper River mining gold

Copper River Ranch is debuting when home sales are slumping, but its developers hope the community's location and attributes will carry them through this rough period.

[via FresnoBee.com: Real Estate]

Home Buyers, Sellers Wait Until Price is Met

Most indicate they are in no hurry

[via RISMedia.com RSS FEED]

Real Estate: Prepacking property pays off

People stop Roger Hazard on the street dozens of times a week to thank him for his home-decorating advice.

[via FresnoBee.com: Real Estate]

Real Estate: Houses need TLC to sell

Last summer, about all it took to sell a home was to post a sign in the yard. The real estate market was hot, and most homes sold within a few weeks.

[via FresnoBee.com: Real Estate]

Metro: More owners of homes squeezed

Metro: More owners of homes squeezed

Hundreds more homeowners in the central San Joaquin Valley are in danger of losing their homes to foreclosure this year because their houses are not gaining value fast enough, a real estate tracking company says.

[via FresnoBee.com: Metro]

FUSD's financial outlook is positive

FUSD's financial outlook is positive

On Wednesday, F.U.S.D. superintendent Michael Hanson addressed a group of 500 principals, administrators and employees in downtown Fresno.

[via CBS 47: Local News]

New Idea For Public Utilities' Budget Problems

New Idea For Public Utilities' Budget Problems

A Fresno commission is trying to come up with different ideas to try and fix the budget problems within the public utilities department. But one idea could have many concerned.

[via KFSN Front Page headlines]

Real Estate: Fresno market finally solid

After 10 years of stagnant rents and almost no new apartment construction, followed by five years of rapidly rising rents and a boom in new apartment projects, Fresno's rental market this year appears to have reached a new balance in supply and demand.

[via FresnoBee.com: Real Estate]

NAR Announces the Return of the Buyers Market

NAR Announces the Return of the Buyers Market

Home buyers have waited for years but perhaps the agony is over. It is official; the National Association of Realtors has confirmed that we are now in a buyers' market.

According to the NAR June report on existing home sales issued last week there is now a 6.8 month supply of existing homes on the market. One year ago the supply was 4.4 months. The joint report of the Department of Commerce and the Department of Housing and Urban Development on new home sales contained...

Read More Now

[via Mortgage News Daily - Mortgage and Real Estate News]

Real Estate: Old Fig Garden looks ripe

Architect David Brown likens Old Fig Garden to St. Francis Wood in San Francisco or Claremont Hills in Oakland, both unique neighborhoods with a style that is universally popular.

[via FresnoBee.com: Real Estate]

Valley Seeing Realty Market Cooldown

Valley Seeing Realty Market Cooldown

The valley's housing market is hitting a serious cooldown, with sales of new homes falling dramatically and people backing out of purchasing new homes.

[via KFSN Front Page headlines]

More mortgage pain coming after rate hike

More mortgage pain coming after rate hike

Get ready for mortgage rates of 7 percent -- or higher -- after The Federal Reserve increased the federal funds rate again Thursday.

[via Classifieds: Real Estate -- MercuryNews.com]

Real Estate: Local home market grows up

Real Estate: Local home market grows up

It's no Beverly Hills, but the number of million-dollar homes in Fresno and Clovis has surged.

[via FresnoBee.com: Real Estate]

Real Estate: Severed districts a problem

The Grupe Co.'s proposed 3,000-home development west of Riverbank isn't dead, "but it may be wounded," according to City Manager Rich Holmer.

[via FresnoBee.com: Real Estate]

Real Estate: Lenders shrink with market

Mortgage companies, which added scores of workers during the recent real estate boom, are now shrinking in the wake of rising interest rates and slowing home sales.

[via FresnoBee.com: Real Estate]

Metro: Dairy pollution rule passes; lawyer calls it an 'empty gesture'

Metro: Dairy pollution rule passes; lawyer calls it an 'empty gesture'

The San Joaquin Valley's air district Thursday passed the most sweeping dairy air pollution rule in the country to clean up smog-making gas from 2.6 million cows.

[via FresnoBee.com: Metro]

Metro: Fresnans worry about living near train tracks

Metro: Fresnans worry about living near train tracks

Wednesday's freight-train collision near Madera turned nagging anxiety into fear for several Fresnans who live near railroad tracks.

[via FresnoBee.com: Metro]

Real Estate: Local boom among state's best

The Fresno/Clovis area, with nearly 5,000 housing starts, was among the state's leading growth regions in 2005, according to figures from a trade association.

[via FresnoBee.com: Real Estate]

Investment property can be put into a self-directed IRA

Q I recently changed jobs and would like to roll over my 401(k) (approximately $100,000) into a traditional IRA. How can I then use the funds as a down payment on an apartment building and hold that building as an asset in my IRA? I am 50 years old. I have heard this can be done.

[via San Jose Real Estate -- MercuryNews.com]

Leading Real Estate Companies of the World Partners with Blogging Systems

Network of independent residential real estate firms will work with leading blog technology firm to generate sales and community recognition

[via RISMedia.com RSS FEED]

Real Estate: Middle America may be fertile ground for real estate

WASHINGTON — Could the real estate action be shifting to the heartland — the vast swath of middle America that never really was touched by the hyperinflationary housing boom?

[via FresnoBee.com: Real Estate]

Real Estate: Developers strive to be different

Leo Wilson calls the six models at his newest subdivision, Camden Place, "idea" houses.

[via FresnoBee.com: Real Estate]

Metro: District with developing future is open

Fresno's high-profile plans, from downtown development to Chinatown's revitalization, share this in common: The District 3 City Council member will play a significant role in the rebuilding efforts.

[via FresnoBee.com: Metro]

Fresno Buyers Making Lower Offers in 2006!

I see many sellers hanging on to price/values they remember from last summer. There are many more homes on the market now and Fresno prices have come down a bit, but I see many homes on the market that are just "overpriced" in the Fresno market today. I see the market as still very active too for sales (if they are priced right). I 'm working with several buyers and they are buying, but they are offering less than asking rather than full price or higher. If the home is perceived to be priced too high, the buyers tend to walk away to the next available listing that is priced better and they will negotiate on that one. Bottom line is this, "you better be serious about selling" if your home is on the market in 2006. This is not a market for "fishing" for that top dollar.

Realty Websites Reduce Visitors to Open Houses!

Over the past several years I've noticed one thing about the traditional "OPEN HOUSE" on sundays. They aren't getting the traffic they had in the past and I think it's because potential buyers are using the internet to view photos and research and make decisions faster whether they want to view it physically or not.

Real Estate: Demand for farmland grows

Farmland in the central San Joaquin Valley is in strong demand, often by buyers who have little interest in the crops.

[via FresnoBee.com: Real Estate]

HOA HOMEWORK

Buying into a homeowners association can be a daunting experience, but it will be easier if you do your homework. Here are some of the many things you should check out:

[via San Jose Real Estate -- MercuryNews.com]

Real Estate: Valley sees condos gain popularity

Would-be first-time home buyer George Salas likes to work on cars and wants more children, so a condominium would not fit his lifestyle.

[via FresnoBee.com: Real Estate]

Buyers seldom see settlement charges upfront

It's the No. 1 complaint that realty agents make about the home mortgage lending process. And it bugs their home buyer clients as well: the failure of settlement or escrow officials to provide a copy of the final settlement sheet in advance of closing.

[via San Jose Real Estate -- MercuryNews.com]

Be careful when using allowances in a home-building contract

Be careful when using allowances in a home-building contract

The allowance you got when you were a kid is nothing like an allowance in a construction contract.

[via Home Building - Topix.net]

City cracks down on signs

City cracks down on signs

Thumbs up to the city of Visalia for finally deciding to do something about all the illegally placed signs around town.

[via Home Building - Topix.net]

Online Marketing: Will Everyone but the Professionals Leave the Room Please?

Online Marketing: Will Everyone but the Professionals Leave the Room Please?

Commentary by Coracle, Inc.

[via RISMedia.com RSS FEED]

Quiet title lawsuit can clear title of missing owner

Seller's absent boyfriend still on property title DEAR BOB: I am a real estate broker with an opportunity to obtain a listing on a beautiful house.

[via Real Estate - Topix.net]

Metro: Neighbors leery of live-chicken shop

Foung Vang fans a sheaf of papers with pictures of his vision — a new market in the heart of Fresno where shoppers can buy live chickens and, upon request, have them killed and dressed to order.

[via FresnoBee.com: Metro]

Metro: Valley braces for another round of rain

After several rain-free days, residents of low-lying mobile home parks along the San Joaquin River near Highway 41 cast wary eyes on the sky Sunday.

[via FresnoBee.com: Metro]

Separating the wheat from the chaff: legitimate foreclosure investors vs. scammers

An article in the Los Angeles Times yesterday documented the sad story of a defaulted homeowner who became a victim of alleged foreclosure fraud. The homeowner said he was tricked into signing over the title of his home by a scam artist who did nothing to stop the foreclosure and then took out another loan against the property with no intention of paying it off. The article goes on to make the case that this type of foreclosure fraud is increasing along with rising foreclosures....(read more)

[via ForeclosurePulse Blog]

Real Estate: Fresno is hot investment item

For out-of-town investors, the Fresno commercial real estate market is hot.

[via FresnoBee.com: Real Estate]

Insurers pushed to note credit information

Insurers pushed to note credit information

Do you want to know when errors or omissions in your credit files raise your monthly mortgage payments by hundreds of dollars? Of course you do. But under current mortgage industry practices, you may not get even a hint of payment boosters that may be lurking when you apply for a low-down-payment loan that requires mortgage insurance. That's because mortgage insurers generally have not issued what are known as ``adverse action'' notices when they double or triple monthly premium charges because of...

[via Classifieds: Real Estate -- MercuryNews.com]

City Condo Sales Outpace Suburban Homes

City Condo Sales Outpace Suburban Homes

City Condo Sales Outpace Suburban Homes -- A two-bedroom condo in the city is pushing aside the four-bedroom colonial in the suburbs as the traditional American dream home.

[via Home Building - Topix.net]

Listen Closely, The Housing Bubble Might Not Be Leaking

Listen Closely, The Housing Bubble Might Not Be Leaking

Americans have been straining to hear the sound of the housing bubble bursting for many months, and according to the media on Monday, they might not have heard a pop but there was definitely a ssssst.

Read More Now

[via Mortgage News Daily - Mortgage and Real Estate News]

State Releases School Academic Rankings

State Releases School Academic Rankings

School rankings were released Tuesday for 8,700 public schools in California, and overall they are meeting the target score.

[via KFSN Front Page headlines]

Real Estate: Project targets CSUF students

JPI Companies studied housing needs at universities across the nation and determined California State University, Fresno, was facing a shortage.

[via FresnoBee.com: Real Estate]

40-year-loan program aids first-time home buyers

A California state agency that provides special loan programs for first-time home buyers this week announced it will offer a new 40-year mortgage with an interest rate lower than those most lenders offer.

[via San Jose Real Estate -- MercuryNews.com]

Mixed real estate market needs flexibility

The spring real estate season is about to get under way, and anybody who expects to take part -- as a seller or a buyer -- needs to start putting together a strategy, an action plan.

[via San Jose Real Estate -- MercuryNews.com]

Guarantee Real Estate Opens New Office in Fresno!

We finally opened the new Guarantee Real Estate office where I will be working out of at 7088 N. Maple in Fresno and all I can say is WOW! This is soooo nice! With everything new inside, including a state of the art computer network with T1 internet service, keeps everything running fast and smooth. Our office consists of approx 75 Realtors, some staff employees and the home office of Guarantee Home Loans with several loan officers. Guarante Real Estate is the proven market leader in the Fresno real estate market with marketing that includes a large advertising budget that includes full page Fresno Bee newspaper ads, top ranking website Guarantee.com, Guarantee Previews TV show on ABC channel 30 sunday mornings, Guarantee Previews magazine, Showcase of Homes magazine. Our clients are the ones who benefit the most. If you are thinking of selling or buying in the Fresno area visit my personal website at FresnoHomes.net and contact me for the professional service you deserve!

Housing boom unofficially over; no crash seen

The five-year housing boom is indeed over, judging from growing statistical evidence and the performance of some of the nation's leading builders, and the slowdown is already rippling through the economy.

[via San Jose Real Estate -- MercuryNews.com]