Fresno's No Match For The Donald

…so says our next door neighbor Phil Fullerton. Phil, a retired attorney, offered his opinion - about the City of Fresno’s plan purchase the Running Horse property and resell it Donald Trumps orginization - to the Fresno Bee. You can READ IT HERE.

Kudos to Phil for his well written opinon!

Fresno CA Real Estate Market Update

Sales Statistics for the month of October

Down,Down, Down She Goes - and where she stops, nobody knows!

It would be nice to be able to report an improvement in the numbers, but that's just not in the cards. The Fresno Market has a large (HUGE) supply of unsold inventory on the MLS which is only aggravated by large numbers of unsold new homes by the builders. Builders are offering substantial incentives to attract buyers. I received a correspondence from a broker representing D. R. Horton informing of builder incentives of $40,00 to $60,000 with an additional $10,000 towards closing cost and very liberal 4.25% cooperating broker commission. Translation: desperate to sell!

Here are the numbers:

Closed sales for September 250 down 62 from last month
Closed sales for the month of September 2006 409 down 39% from last year
Closed sales year to date 1/1/07 to 9/30/07 2913
Closed sales in 2006 1/1/06 to 9/30/06 3943 down 26% from last year

Now to put these numbers in perspective you need to understand that the Fresno MLS has added 41 additional licensed Realtors last month bringing the total to 4243 members. If you do the math it's not a pretty picture.

Now - that's the not so good news and yes it is NEGATIVE, but I, "Lazarus", have a smile on my face and I'm ready to assist you with your home purchase or sale with a POSITIVE ATTITUDE.

If your are looking to buy a home (for your personal residence) there are some attractively priced homes. I do think that the best bargains right now are the new homes that the builders are offering incentives on.

If you are an investor, the best opportunites lie in the vacant REOs, short sales, and otherwise desperation sales.

In either case, home buying or investing, I can help you find what you looking for. Please call me to discuss your real estate needs.

Randy "Lazarus" McAtee
559-301-1647
Owner/Broker Lazarus Realty

Aram Atikian Joins Lazarus Realty

Lazarus Realty is proud to announce the addition of Aram Atikian to its small but growing sales force. Aram has lived in Fresno for over 30 years and besides his endearing character he is fluent in Armenian, and has better than average grasp of Arabic. You can contact Aram at 559-974-0624. He can help you with the purchase or sale of land, home, or investment properties.

Information On The Fresno CA Real Estate Market

Here are some stats on the Fresno Market:

• In a 24 Hour period between Wed and Thursday afternoon the Fresno MLS had 168 residential listings that expired.
• The average time on the market for those listings was 165/185 days.

What does this mean?

It means these properties sat on the market approx 6 months with no buyers!

Who is to blame?

• Agents for taking an overpriced listing to begin with.
• Sellers for either expecting or NEEDing too much money.

Why do I say "needing?" Because I look at the public records and see that many of the sellers either bought or refinanced in the last 2 years and I can tell by the price that these sellers are just hoping they can get out whole i.e. sell for enough to pay off what they owe and the closing costs.

I looked at one that had been listed for $220,000 and see that the owners refinanced earlier this year for $200,000. I can tell you definitively that house will NOT sell for $220k. Maybe - and that's only MAYBE it will sell for $165k. Many of the sellers are in the same situation.

If you want to sell you want/need to buy or sell a home in Fresno CA. Call me: 559-301-1647. The last sale I closed I got my buyer in at $95,000 under the ask. I'm a seasoned investor/broker who knows when the numbers work and when they don't.

© R. "Lazarus" McAtee
Owner/Broker Lazarus Realty
aka BloggingBroker

Short Sales - Fresno Ca Real Estate Market

Beware the eager broker or real estate salesperson who wants to list your home for a SHORT SALE
___________

Defaults are rising and there is a lot of buzz in the Real Estate industry about Short Sales. Everybody and his brother is spamming me with seminars to educate me on "how to do them".

Short Sales are NOT for everyone. I will be happy to assist you with a short sale on your property but please read this:

A client called me the other day asking if I could do a Short Sale on an investment/rental property he has and after hearing the details this was my conclusion:

• His property would probably sell for 100k less than what he owes : around $320k
• The $100k forgiveness of debt would be taxed as income
• Additionally he would have to pay the FRPTA of 3.3% to the state

All I could see was one huge tax liability. Depending on his tax bracket, based upon the above he could be liable for approx $40,000.00 in taxes on a Short Sale (quick mental guestimate). So I told him to consult with his accountant regarding the tax ramifications and if he said to do it call me back. In his situation his best option may be to just let the lender foreclose. However, with a foreclosure the possibility of a deficiency judgment may exist.

You really need to look closely at all the options and the consequences. Always consult with a tax adviser or CPA prior to doing a Short Sale. Call me and I will be happy to discuss the alternatives.

© Randy "Lazarus" McAtee
Owner/Broker Lazarus Realty
559-301-1647
email me

Are You Itching For Attention?

FRESNO CA REAL ESTATE

I admit I am.

Which is why I have accepted the nomination to the Ponkeyderm Party, the nations first transgender political party.

WHAT IS A PONKEYDERM YOU ASK?

A Ponkeyderm is a political diploid, acknowledging that his inner constitution contains both democratic and republican chromosomes. True, the republican chromosome is always dominant in the Ponkeyderm, but every Ponkeyderm is in touch with his inner-Democrat.

If all you need is to get your property sold, call me, I can get your property the attention it needs.

© R. "Lazarus" McAtee
Owner/Broker Lazarus Realty

So You Want To Be A Landlord Part II Story 2

Part I
Part II Story 1

Stories Of A Landlord in Fresno CA.

BEWARE WATER DAMAGE:
Story 2

I had the house rented to a tenant that for all intents and purposes was a good tenant: rent paid on time; trouble free tenancy.

When the tenant moved out I noticed a small leak in the bathroom at the shutoff valve under the stool. The tenants never bothered to inform about this problem and the water was soaking in where the floor meets the wall. The caulking around the tub was also faulty and this water, and water that escaped the tub when they bathed the kids, had soaked through under the tub. The end result was serious water damage.

I had to remove the toilet and tub/shower, tear out the floor, replace all the damaged sub-floor structure and then replace tub, toilet, and install new linoleum.

Story 3

House was rented to good tenants who took care of the home and paid the rent on time. Whenever there was a problem they would call me and explain the problem and usually they would take care of it themselves and deduct it from the rent.

One day I drove by the house to check on things and noticed the hose bib on the front porch was shooting out tiny but constant stream of water. I spoke with the tenant about it and he said he would pick up a hose bib at the hardware store and take care of it. So what’s a hose bib cost? Less than $5.00. Anyway, I never gave it a second thought. My bad!

About 6 months later when the tenants moved out I went down to check on things and found that he never did put in a new hose bib. The wood skirting on the entire left front of the porch was rotted as a result. Not a big deal really. But when I tore it off I found out that the beam under it that supported the entire front of the house was also rotted. I had to go to a specialty lumber store to get a beam sized to match the old house. Then I had to go rent house jacks to jack the house up. Then I had to get a crew of helpers together to jack up the house and replace the beam. I would dread to think what a contractor would have charged me to do the above. All because of hose bib that could have been replace for next to nothing!

________________________

If you’re stuck with a home that you have to sell or rent call me – I can help.

© Randy “Lazarus” McAtee Owner/Broker
Lazarus Realty
559-301-1647email me

So You Want To Be A Landlord Part II - Story 1

So You Want To Be A Landlord Part II

Well, maybe you don’t want to be, but you’re in the position that I mentioned in Part 1 of this Series.

Before you take the plunge, allow me to share a few stories with you: nothing fabricated; all TRUE. How do I know? They are mine, and mine alone to tell J
Story #1

I get a call from Susie (not her real name) enquiring about my house for rent . I must emit “soft touch” radar, because the next thing I know Susie is appealing to my Christian charity and asking me to save her and her child from homelessness. I should have ended it right there. I knew from what she told me that she couldn’t qualify under any traditional guidelines. It wasnt long before I took pity on poor Susie and told her I would rent to her if her parents would be willing to meet with me and co-sign a contract.

Her parents, who obviously didn’t want Susie living with them, agreed to co-sign for her rent payments. Whew! Ok, so I figure if I rent to her I shouldn’t have any problems, at least collecting the rent. Partially right, here’s what happened.

Susie paid her rent on time and took good care of the property until…. UNTIL her boyfriend was released from prison. #1 I had no knowledge of the boyfriend. #2 the boyfriend was not on the Rental Agreement. But I can guarantee you boyfriend was sharing the house with Susie, who was now not paying rent. I don’t think Susie’s parents approved of boyfriend because I stopped getting the rent.
When I went to collect I was greeted by a shirtless, tattooed, guy who obviously had nothing better to do in prison than work out. If I were to guess where the rent money was – I would say in his veins. He didn’t look happy; didn’t act happy. Just asking him for the rent money made my butt pucker.

After they moved out I had to patch a hole in the living room ceiling made by ballistics (translation: it looked like he blew a hole in the ceiling with a shotgun). I was also told later that while they were living there, a mutual friend who didn’t like how boyfriend was treating girlfriend, during an argument, shot boyfriend in the leg on the porch. I had good reason to be uncomfortable when collecting (or trying to collect) the rent.
___________

Check back soon! I have plenty more stories to tell. And if you need help selling or managing your Fresno California property don’t hesitate to call me. My stories might sound negative but I am POSITVE I can help you.

© Randy “Lazarus” McAtee
Owner/Broker Lazarus Realty
559.301.1647

Fresno California Real Estate Statistics

Information for SELLERS in Fresno

Here are the MLS STATISTICS for the last 24 hours (as of 9:05 p.m.) This chart speaks for itself but if you want to review a post in which I explain the numbers go here.

If you're reading my post on stats for the first time then the most important thing you need to know is that these statistics show a market that is totally out of balance in favor of the buyers. For example: in a balanced market the ratio of price increases to price reductions would be close to equal.

For every 1 home that went pending or contingent 4 homes came on the market.

Many of the sellers who are making price reductions have already had their homes on the market for 99 to 120+ days.

If you need to sell a home it has to be priced right. Homes that overpriced from the beginning become market-worn and stale. Buyers ask how long a property has been on the market and the longer the property has been on the market the greater their incentive to make a ridiculously low offer. Dated listings are stigmatized and become more difficult to sell as time wears on.

Bottom line, this is no time to be "testing the market". If you need to sell or want to sell in this market, which has a huge inventory of unsold homes and stale listings, start right by pricing right.

Call me today: 559-301-1647

I will provide you with a free Comparative Market Analysis and help you with a marketing plan to GET YOUR HOME SOLD.

Investing in Fresno Real Estate

I could have titled this: HOW NOT TO BUY REAL ESTATE.

I received a call from a gentleman who saw my number on a sign I had on a property I own. He told me he was from L.A. and wanted discuss investment property with me. He came by my office and the first thing I learned was he just closed a deal with another Realtor on a piece of commercial property.

He showed me a flyer his with a picture of the property just purchased, and told me he bought it for $225,000 cash and wanted to buy some more property in the area. The more we talked the more he opened up and it turned out that while he DID buy the property for cash, a substantial portion of the cash used to make the transaction came from an equity line on his primary residence.

I then asked him the question I would ask anyone who buys real estate as an investment: "So Mr. ________ 'WHY did you purchase this property'?"

His answer: He believed that one day he could develop it (at which time it would be a good investment) but until then he was going to rent it out. So I asked him how much he intended to rent it out for and he said he was hoping he could get $900-$1,000 per month.

It turned out that his payment on his credit line for the financed portion of the property is right around $1,000 per month. So here is what I laid out before him:

M. ______ if you put $225,000 cash in the bank at 5% interest you would collect approx $937.00 per month without doing anything: no risk, no hassles, no taxes, etc.

Every month that you hold this property you will have the following fixed costs:

• Taxes: $225.00


• Utilities: 60.00


• Insurance: 65.00


• Managment: 100.00 (unless he decides to manage it himself)


• Payment 1000.0


• Total $1450.00 PER MONTH

If you rent this property for $1000 per month it will cost approx $450.00 per month to carry it - not including deferred maintenance and vacancy factors.

SO - MY TWO QUESTIONS:

• 1) HOW IS THIS A GOOD INVESTMENT?


• 2) CAN YOU AFFORD TO PAY $450.00 PER MONTH TO HOLD ON TO IT UNTIL SUCH TIME AS YOU DEVELOP IT?

Believe it or not - he had never been asked these questions and I could tell his wheels were starting to seriously spin. He left my office and returned to L.A.. A couple of months later we met in my office again. He had contacted the City of Fresno and an architect to get an estimate of development cost (something he should have done BEFORE he bought the property) and from the information he gathered the cost to develop the property exceeded the potential income.

So now he asks me, "CAN YOU HELP ME?"

Conclusion: I found him a tenant that did a lease/option and the lease payment is close to break even for him, the option money put some cash in his pocket, the option price (if exercised) will give him a profit ---- HE'S HAPPY.

If you're going to buy real estate as an investment you need to know WHAT YOU'RE BUYING AND WHY YOU'RE BUYING IT. How simple is that? If its an investment then you need have numbers that show a reasonable RETURN ON INVESTMENT (ROI). The first thing you should ask your agent when he says that he has a good investment property is SHOW ME THE NUMBERS.

If you're interested in purchasing INVESTMENT PROPERTY in Fresno, don't hesitate to call me.

© 2007 Randy "Lazarus" McAtee - owner/Broker Lazarus Realty and Fresno's Foremost Blogging Broker.

Fresno Farmer's Market

WHAT I LIKE ABOUT FRESNO

On Saturdays mornings in Fresno there's just about nothing I enjoy more than strolling through the local Farmer's Market at Blackstone and Shaw. The San Joaquin Valley is one of the worlds richest and most abundant bread baskets and Fresno is right in the heart of it. And what better place to experience the cornucopia of the region than a Farmer's Market.







I love the shirt on the girl in the background (above)

You can view more of my pictures of the Vineyard Farmer's Market here.

So you want to be a Landlord - Part1

HELP! – I CANT SELL MY HOUSE – I NEED TO RENT – NOW WHAT???

Is this your situation?

• You have your property listed but no offers

• You cant lower price further without losing money (i.e. I would have to come up with cash to close
• The mortgage payments are eating you alive.

The first thing you need to is call me educate yourself with the laws regarding Landlords/Tenants.

You can get plenty of information off the Internet. This California Courts Self-Help website is good for starters.

WARNING #1: Having been a landlord I can tell you many tenants KNOW their legal rights; you need to know what your legal responsibilities are.

visit my main blog site

U.S. Homes Post Steepest Price Drop in 16 Years..

NEW YORK (AP) -- The decline in U.S. home prices accelerated nationwide in July, posting the steepest drop in 16 years....( go here for full story ).

Browsing some of the local Realtor's web sites I came across one that had a graphic market guage on it indicating the Fresno real estate market was in perfect balance. YEA RIGHT! This market sucks, and to be quite honest its sucking even worse than I thought it would.

Take a look at the 24 Hour Stats I just pulled up from the MLS
New Listings - 87
Back on Market - 35
Price Increases - 5
Price Reductions- 129
Contingents - 4
Pendings - 22
Sold - 21

Add the New Listings and Back on the Market to get the inventory that came onto the market and we have 122 properties that came onto the market. Now minus from that the homes that went Contingent and Pending = 26. Then divide 122/26 and you get 4.69 which means for every 1 property that went off the market 4.69 came on the market. The reason the SOLDS are not included in the above equation is that they are the homes that went pending/contingent 30-45 days ago that actually closed. We dont really know how many of the Contingent and Pending sales will actually close. But if we replace the Pendings and Contingents with the Solds then then we have 122/21 = 5.8 .... or a ratio of about 6 to 1. VERY IMBALANCED. For further proof of how imbalanced the market is just look at the ratio of Price Increases to Price Reductions.

Now in order to state this more simply, if the equations above don't make sense, lets just say a balanced market would look like this:

50 properties come on the market
50 properties go off the market
50 price increases
50 price reductions

that's a balanced market - where buyers and sellers are equal.

If you need a home, it may not be a bad time to buy; but if you need to sell... it's tough. If you're an investor the big question is: WHERE'S THE BOTTOM? Of course, if I could call market tops and bottoms I would be in better financial shape than I am. I love to trade stocks and this chart pretty much sums up how the market treats you:

click image or here to view larger

I was once a dot com multimillionaire. I lost more money in paper profits than the average real estate broker makes in 30 years of work :( .... So don't even think to ask me when then market has bottomed. Had I known the top (of the recent runup in property values) , I would have done some things differently. Many of you are probably saying the same thing.

If you have property that needs to be sold, don't let this negative information deter you from calling me to help you sell it. If you don't absolutely need to sell the property right now - your best bet might be to wait and ride things out. Unfortunately, I can't tell you when it will improve - and it could even get worse ( I hope not ). One of my friends was able to find tenant for his home that he couldn't sell. I recently got a 3 year lease option for an owner of a commercial property that was sitting on the market with no bidders.

PLEASE VISIT MY OTHER WEBSITE AT: WWW.BLOGGINGBROKER.COM

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