Flipper Helping Bring Back Home Values

No not the dolphin! Flipper the investor, the person who buys  run down foreclosures, fixes them up and resells or “flips” them back on the market for resale and profit. Thanks to the flippers, we are seeing some clean fixed up homes that will pass appraisal inspection for financing, and they are helping to bring back higher sale values. This is a good thing, after the beating everyone took during the mid 2000’s boom market. One thing to be aware of, is that these investors have never lived in the property, therefore they can not give any good disclosures of known defects. Buying a flip home, even though they look like a model home, should always get a full home inspection from a professional home inspector. One unfortunate thing about the current market is the fact we have low inventory. This is causing prices to inflate due to multiple bidding. The downside is, many times this creates an appraisal problem. I see more and more buyers willing to pay above market value, or above what the property will appraise for. When this happens, the sale may fall thru, or the seller will have to lower sales price to appraised value. Sometimes, buyers will pay above appraised value, but not often.

FresnoHomes.net Gets Major Update and Re-Design

I’m proud to say we have just launched a total redesign of my website, thanks to my good webmaster Corey Davis of Web View Consulting http://www.webviewseo.com/. As you will see, the new design is simple, yet very functional, for searching the Fresno MLS database of homes for sale. The site has been optimized for mobile devices now, so you can use your internet enabled cellphone for easy search and navigation on the go. We are using the same IDX data provider, IDX Broker, because I feel they have the best overall product for providing the search functions for the Fresno MLS data feed to my site. I hope the users will find the site attractive and functional. Since the site has just launched less than 24 hours ago on June 6th, we may find some bugs. If you are using the site and find something not working, please email me, tavent@comcast.net and we will try to correct any issues. Give me your feedback, I would enjoy hearing from you.

Low Pricing Generates A Frenzy of Highest and Best Offers

In today’s market it should be known, that many sellers, especially the resellers, or “flippers” that buy foreclosed homes, fix them up and resale for a profit, and also listing agents for bank owned REO properties have an interesting marketing technique whereas they list the property for a price under market value purposely, collect several offers from the buyers who are attracted by the price, then the sellers send out a multiple offer notice to buyers and asking them to make their “highest and best” offer. It is a fair practice, but it creates an artificial buying hysteria that takes. I tracked one well known reseller over the past year, and they had sold 300 properties in 2011, and the average sale price was $4000. higher than the average asking price. Very few of them sold for less than asking price and most of them sold for more than asking price, but the average was about $4000. higher.

So the lesson to learn here is that asking prices for most REO and “flipped” properties is just a starting point, and that buyers need to carefully study the comparable sales in the neighborhood to help in making the decision to bid higher than the asking price.

Fresno Homes for sale – Low Listing Inventory for Fresno Making it Tough For Buyers!

As of today, August 13, 2012, there are only 885 “active” listings in the Fresno MLS, for homes, condos and PUD’s in the Fresno/Clovis areas. Of the 885 listings, 161 are short sales. So the actual homes that can be sold today is a mere 724 available listing. As you know, short sales take months to get approval and sometimes don’t go through at all, so I don’t count them as truly available properties. Also, of the 885 active listings, there are 110 “bank owned” REO listings.

This is an incredibly low amount of listing inventory! No wonder that buyers are having a hard time finding a good Fresno Homes to buy. I’m seeing multiple offers on nearly all listings that are clean and priced correctly. We actually need more like 2500 to 3000 listings to be a more balanced market with the number of buyers in the population of the Fresno, and Clovis communities.

This is having a positive effect on prices, as it is showing in the prices and values edging upward over the last year. The problem is we need listings. Anyone who is considering selling, must know that they can sell quickly at this time, and if they can find a suitable replacement property, they can reap the benefits of record low interest rates, such as 3.5% for a 30 year loan. It’s just incredible the low rates we can get! .  Many homeowners that I talk to, would like to sell, but their property values have taken such a hit, that they are waiting for the values to increase. They are increasing but it’s at a slow pace, maybe just a few percent higher than last year. I believe we have seen the bottom of the price decline, and values are slowly on the rise again.

Active Fresno Homes Inventory Getting Tighter in Fresno

With the start of 2013, I was hoping more sellers would be coming forward to list their homes. After all, prices are moving upwards. Most people don’t realize, we have seen prices in Fresno county increase by about 8% from a year ago. The problem we have right now is low active inventory. I ran my “market barometer” search today, and found that their are only 798 active listings of single family homes, condo’s and PUD’s in the Fresno/Clovis area. Now of those 798, there are 112 “short sales” and 107 “Bank Owned” listings. That leaves a mere 579 “traditional” home sellers in the local Fresno marketplace.
This has put the inventory at less than a 1 1/2 months supply of homes. I’ve witnessed a steady decline in active inventory over the last 3 years. With approx 600 fresno homes being sold per month, and slightly less than that being new listings, we have a declining active inventory.

The good news is that there is less foreclosure filings, and more traditional sellers coming forward to sell their homes. Everyone likes a traditional seller, because they are much easier to work with. The traditional seller will answer your offer in a few days, as opposed to the longer period experienced when working with banks and short sale lenders.
If you are thinking about selling, now is the time to get a good price and sell quickly. Clean, well priced homes are getting multiple offers in a short period of time, usually a few days or weeks, but not months.