California real estate is ‘on sale!’

And, if you needed more of a reason to buy now, other critical factors are also in your favor.

1. HOME AFFORDABILITY IS AT AN ALL-TIME HIGH.

The median mortgage payment on the median priced home as a percentage of the median household income is lower than it’s been in a generation. You could be buying your home under better circumstances than your parents did.

2. MORTGAGE RATES HAVE REACHED ROCK BOTTOM.

As interest rates start to inch back upwards, monthly payments and total loan costs will spike upwards. Buy now while prices are low, and lock-in that dream interest rate for the next 30 years.

3. BUY NOW; BUY LOW!

After declining nearly three years, home prices are stabilizing. You can’t accurately predict the absolute bottom of any market. But, I bet you’re closer to the bottom now than your parents were when they bought.

4. SELLERS ARE MOTIVATED.

This means that buyers have the upper hand! From banks looking to dispose of foreclosed properties to homeowners who are fiercely competing among an excess of housing inventory, buyers have untold choices and negotiating power. Trust me on this one. I represent people looking to sell their home. It’s a buyer’s market right now. Go after it.

5. FINANCING IS READILY AVAILABLE FOR QUALIFIED BUYERS!

Banks are getting back in the game and ready to lend to well-qualified buyers. I have yet to work with a home buyer that was declined for a loan after they received their pre-approval letter from a lender. Lenders are making loans again.

6. OWNING vs. RENTING IS INCREASINGLY FAVORABLE.

Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years. I have personally worked with buyers this year that are spending less per month on their mortgage payment than they did on their monthly rent payment.

7. HOME OWNERSHIP IS AT THE CORE OF THE AMERICAN DREAM!

Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live and a fabulous tax deduction. Plus, if you lock in your fixed interest rate for the next 30 years, you will no longer see you rent increase year-after-year.

You have to admit, that these are 7 great reasons for buyers to act now. So, please do us a favor. Click on one of the colored buttons below and share this article with your personal social network of friends and family. Others will definitely benefit from reading this as well. It only takes a second to do, and we would really appreciate it.

If you are currently home shopping, congratulations! I hope it has been a fun process for you so far.

Not to rush you or anything, but if you’re still on the fence about buying a home, you should know that the Federal Housing Administration (FHA) is increasing mortgage insurance premiums on FHA home loans as of April 18, 2011. This deadline applies to the FHA case assignment date.

MORTGAGE INSURANCE DEFINITION

Not sure what mortgage insurance is and how it might affect you and your loan?

Let me explain it briefly.

FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default. Loans must meet certain requirements established by FHA to qualify for insurance.

Put another way, if you are going to use an FHA loan to help you purchase your next home, and you are going to make your down payment a minimal amount, you will have to pay mortgage insurance.

Because you have such little equity in your home in the beginning, your lender is forcing you to pay for insurance in case you default on your loan. The insurance helps to protect your lender from losses on their investment in you, if you default on your loan.

MORTGAGE INSURANCE PREMIUMS TO INCREASE

Well, FHA has decided to increase those insurance premiums you will be paying on a monthly basis.

This increase could cost buyers more money each month for their total monthly mortgage payment.

What can you do? If you are close to contract, buy now before the new mortgage insurance premium takes effect.

You must have an active loan application for your home purcahse prior to April 18, 2011.

If you need a great California loan guru to chat with and ask questions of, let me know. I can e-mail you her name and number. She knows her stuff.

FRESNO REALTOR, JOSEPH HOLLAK

Real estate is definitely a people business, and it doesn’t matter if you are a Realtor, a buyer, a seller, a loan expert or an escrow officer.

Real estate transactions don’t get done without people being social with one another.

Couple that with social media sites like facebook and twitter exploding in the past five years, and you get real estate professionals moving to these platforms to better connect with others. People you never thought would be on facebook are posting on you wall or tweeting on twitter.

JOSEPH HOLLAK REAL ESTATE on FACEBOOK

If you’re on facebook (I know, who isn’t on facebook by now) look for real estate related news, information and the occasional behind-the-scenes look at my day as a Realtor, on my facebook business page.

Be sure to ‘like’ the page at the top to get access and connect with us.

If home location is the #1 most important item on the list of home buyers’ needs, what do you think #2 would be on the list?

• Schools?
• Home size?
• Number of bedrooms?
• Property tax rate?
• Swimming pool?
• Lot size?

Actually, none of these.

WATCH THE VIDEO

If you are looking for a real estate professional to help you through the Fresno home buying process, call and schedule an initial appointment with Realtor Joseph Hollak. He can be reached at (559) 399-0004.

If you’re curious to know what the home buying process entails, Joseph Hollak has outlined the typical Fresno home buying process for you to read ahead of your meeting.

When mortgage lenders take over a home through the foreclosure process, they want to sell it as quickly as possible.

Since mortgage lenders aren’t in the business of owning and operating residential real estate, they turn to real estate brokers for help in selling these REO / bank-owned properties.

If you have been previewing Fresno real estate within the past year, there is a high probability that you have been inside of a bank-owned property. Fresno has a high inventory of these properties available and on the market.

Buying a Fresno REO (foreclosed home) can be a bargain, but it can also be a problem-filled process.

5 TIPS TO BUYING A FRESNO REO (bank-owned) PROPERTY

Because of this, Fresno REALTOR® Joseph Hollak has compiled a list of 5 tips for buying a Fresno bank-owned property and the report is yours free.

To request your free copy, contact Joseph Hollak with the subject line “5 tips for buying a Fresno bank-owned property” and Joseph will send the report straight to your inbox.

In the meantime, please do us a favor and click one of the buttons below and share this article with others in your social network. We would seriously appreciate it.

[audio:http://josephhollak.com/wp-content/uploads/2010/10/Foreclosure.mp3|titles=Foreclosure vs. REO]

KNOW WHEN TO USE THE CORRECT TERM

Do you know the difference between ‘foreclosure’ and ‘REO’ and how to use each term correctly when discussing Fresno real estate?

If not, don’t worry about it, because today, right here, you will learn exactly what you need to in order to use the two terms correctly. You will also recognize when others use the terms incorrectly when describing Fresno real estate.

LET’S BEGIN WITH A COUPLE OF SIMPLIFIED DEFINITIONS

FORECLOSURE is a legal process in which a lender is taking back its interest in a real estate asset from a borrow that has defaulted on the terms of a loan.

On the other hand . . .

REAL ESTATE OWNED (or REO) is a real estate asset owned by the lender that was taken back during the foreclosure process.

You can view and make an offer on a Fresno REO property.

You cannot go and view Fresno foreclosures. Foreclosures are legal proceedings and not physical properties.

CONTACT JOSEPH HOLLAK

If you have specific Fresno real estate questions, or would like to discuss selling your Fresno property, contact Joseph Hollak.

(Don’t forget to click the “like” button below and let use know you were here.)

SATURDAY, SEPTEMBER 25TH, 2010 – 6:30 pm

At the Harlan Ranch Amphitheater “Pipe on the Hob” will be playing.

Bring the family out for an evening of live Irish music. The concert is free to attend and will be the final live concert for the summer. Bring a blanket or lawn chairs and sit on the grass and enjoy friends, family and the live music.

If you are thinking of upgrading the neighborhood you live in, consider the Harlan Ranch way of life. And, use a Realtor that has helped other families make the move to Harlan Ranch real estate.

Joseph Hollak

Realtor

Keller Williams Realty Fresno

(559) 399-0004

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Going after a distressed property can be scary, uncharted territory for most buyers. Thus, making the choice to work with an experienced Realtor that has successfully put together distressed property deals in the past, that much more important.

Distressed property deals are different and unique when compared to traditional real estate transactions. Different. Not impossible, not bad, not miserable, not stressful, just different.

5 KEYS TO SUCCESSFULLY PURCHASING DISTRESSED PROPERTIES

Here are five key areas that real estate buyers should focus on when they consider purchasing a distressed property.

1) HAVE BULLET-PROOF FINANCING IN PLACE

Buyers must be pre-approved in advance of making an offer and that pre-approval must be in writing. Make sure Demand that your Realtor has a copy of your pre-approval letter that was issued to you from your lender. Do not be passive about the letter getting into the hands of your Realtor. Demand that you Realtor has a copy (both a physical and scanned digital copy).

Do not waste anyone’s time with a “pre-qualification” letter from your lender. Go the extra mile and get a bullet-proof, written pre-approval letter that is less than 30 days old.

Also, have written proof of funds that you will be able to use as your down-payment and possibly to cover closing costs. Make sure these funds are liquid, enough to cover these items and ready to go.

And finally, do not buy anything on credit after you get the pre-approval letter. Do not change anything from a credit standpoint until your escrow closes.

2) DON’T WAIT AND NO BEING LAZY

If you find a bank-owned property that you like and can afford, your financing is in place and your Realtor says the property is active, don’t mess around. No being lazy, no waiting, no “I’ll get to it tomorrow.” Insist that your Realtor writes up an offer immediately for you to sign and get submitted.

Just last Friday night, a client of mine found a bank-owned property that they really liked, their financing was in place, and the property did not yet have an offer to purchase in place. We signed documents at my kitchen table well after 9:00 PM and the offer was immediately e-mailed over to the listing agent to present to the selling bank. This is how deals get done. Anyone waiting a couple days to go see the property or waiting to get pre-approved will probably not have a shot at buying this property.

3) DON’T HAGGLE MUCH ABOUT PROPERTY CONDITION

When shopping for a new home and considering a distressed property, Fresno real estate buyers will inevitably come across a property for sale and labeled “as-is.” This is standard procedure for banks selling distressed property.

Banks are looking to sell the property, remove it from its books and get on to the next deal. The bank is therefore looking for a nice, clean, non-negotiated offer and sale. The bank is not looking for a buyer that has a demand list as long as the driveway.

When looking at the property, picture buying it in the current condition, and know that you are getting a discount on the purchase price, leaving you with the opportunity to fix items  later that might not be to your liking. Get used to “as-is” disclaimers.

4) FOLLOW INSTRUCTIONS WELL

Submitting incomplete or confusing documentation will only decrease your chances of succeeding in this market. When your lender or the agent representing you in the transaction asks for documents or signatures, be organized and follow instructions well. A delay in getting critical documents back to where they need to be will only hurt your chances.

5) WATCH TITLE REPORTS CAREFULLY

In buying an REO / bank owned property, issues with the legal title of the property will rarely pop up because the bank (as first lien holder) will clear all claims when it takes the property back from the defaulting owner.

However, in a short sale situation, where the lender on the property has not cleared the title, there is a risk of liens and claims on the property interfering with a clear title report.

Because of this, it is always a good idea to read and understand the property’s preliminary title report.

THE BOTTOM LINE

There you have it, five great rules to know and practice if and when you go after a distressed Fresno property.

Have additional questions? Contact Joseph and schedule an in-person appointment to discuss your individual situation.

If you found this material even remotely helpful or interesting, please click the “like” button below and that will help someone else to find this content in the future. Thank you.

When the term “distressed property” gets thrown around these days, it can conjure up some largely negative thoughts, and rightfully so. This term can be deceptive and doesn’t always equal a piece of Fresno real estate that is in total disrepair.

When you think of a “distressed property,” sometimes it is better to think of a financially distressed property than it is to think of a physically distressed property.

I have represented the buyers of a distressed property quite a bit since this financial melt-down and in my experience, a distressed property can look as good as a brand new home. I frequently see financially distressed properties that are move-in ready with brand paint on all of the interior walls and brand new carpets on the floors, and sometimes brand new appliances. The exact opposite of physically distressed. So going forward, if you are thinking of buying Fresno real estate, consider a distressed property.

A study by the real estate website Trulia.com and data provider RealtyTrac says that more than 55% of home buyers say they are actively considering buying a foreclosure.

In some markets, foreclosures represent more than 80% of all sales.

7 REASON FRESNO REAL ESTATE BUYERS SHOULD CONSIDER A DISTRESSED PROPERTY

Fresno real estate buyers have a awesome opportunity before them to pick up great real estate if they were to consider the distressed property inventor. Here are some reason to consider:

1) GENERALLY LOW PRICES

All real estate pricing is market driven by supply and demand. But Short sale and bank-owned property prices do go below the rest of the current market. Sometimes 10% to 40% less than comparable traditional sale properties in the same neighborhood.

2) AFFORDABILITY

Affordability is related to falling prices. Declining Fresno real estate prices are making home ownership more affordable in comparison to Fresno incomes. There was a time, at the top of the Fresno real estate price boom, that only about 20% of residents could afford the average Fresno home. With falling Fresno real estate prices, that number is much higher and families that could not afford the “dream home” or first choice neighborhood can now reach that point.

3) MOTIVATED LENDERS

A lot of distressed properties on the market today are owned by financial institutions that have no interest in keeping the property on its books. Owning the property is not the bank’s first choice. Lenders no longer what the liability and the ongoing cost of owning the property. Most of the time, the lenders / owners are eager to sell the property to the general public quickly and even help with the financing.

4) LOW DOWN PAYMENT LEVERAGE

I have seen some lender programs that are offering as little as a 3% down payment for qualified buyers to get into a distressed property. This is allowing a buyer to move on a distressed property easier than a traditional sale property.

5) MOTIVATED LISTING AGENTS

The listing agent being asked to sell the distressed property doesn’t make the final decision about sale prices, however these listing agents are under a lot of pressure to get the properties priced right and sold. The listing agents only get paid when the property sells, so they are motivated financially to get the inventory moving.

6) MOTIVATED INDIVIDUAL SELLERS

Individuals that are underwater on their loan and are looking to get out from under a home they can no longer afford are highly motivated to sell as well. They are not enjoying their current financial situation and want to make things better for their families as soon as possible. The motivation to sell is definitely there, which will in turn improve their emotional situation as well.

7) MOTIVATED FIRST-TIME BUYERS

With interest rates on home loans as low as they are currently and Fresno real estate prices retreating as well, first-time home buyers are motivated to pick up Fresno real estate that has been in the past, out of their reach. It is reported that more than 50% of all buyers in the current market are first-time home buyers.

THE BOTTOM LINE

If you are a Fresno real estate buyer, you should consider adding distressed properties to the inventory that you view and consider for sale.

I know that buying a distressed short sale or bank owned property can be scary, and I will admit that these properties can be more complicated and stressful to get involved with. But, this means that choosing your real estate consultant becomes an even more important job. Choose a Realtor that has extensive experience in helping buyers to find, evaluate and acquire distressed properties.

Choosing a Realtor that has distressed property experience is the best thing you can do to help you navigate the current Fresno real estate markets.

I am happy to answer any questions you might have about the process.

Joseph Hollak

Realtor

(559) 399-0004

If you found this article timely, helpful or interesting, please consider clicking on the “like” button that you see below. This will help others who are interested in this type of information to find it as well.

Personally, the buy, rehab and flip market right now seems a lot more difficult, especially after you factor in short-term capital gains taxes. But the buy and hold investors seem to be doing well.

The later theory is based upon buying a distressed Fresno property now, repairing what needs repaired, building in some curb appeal and renting the property until real estate prices return someday down the road before you sell. The investors are filling a niche and that it part of what makes a healthy market.

NPR

National Public Radio recently broadcast a story looking into the idea that these real estate investors are actually helping to prop up the real estate market.

If you missed the original broadcast, click the play button below.

HARLAN RANCH SUMMER CONCERT SERIES

Alternative rock band Mother Girth will perform live on Saturday (August 28th) at 7:00 pm at the Harlan Ranch Amphitheater. The concert is free and is the third concert in the 2010 Harlan Ranch Summer Concert Series.

ROCK THE NIGHT AWAY

Bring the kids, invite the friends, grab the lawn chairs and blankets and enjoy the Saturday night concert. The weather is supposed to be perfect and the Harlan Ranch amphitheater is a great place to see a free concert.

HARLAN RANCH REAL ESTATE

Fresno Realtor Joseph Hollak has helped other families find great Harlan Ranch real estate and can help your family as well, if you are ready to upgrade your neighborhood.

If you’re curious about Harlan Ranch real estate prices, call Joseph Hollak or visit www.MyFresnoHomeValue.com to get a sense of the home prices at Harlan Ranch.

Fresno Realtor Joseph Hollak can put together a private home tour of Harlan Ranch homes for sale for you and your family by calling (559) 399-0004.

In the meantime, check out the free Harlan Ranch Summer Concert Series.

• 32 years old and
• has a household income of $50,000 to $60,000.

The typical second-home buyer is:

• 46 years old,
• is married, and
• has a household income of nearly $90,000.

After reading these, are they what you would have expected?

Realtor Joseph Hollak has worked with, and is currently working with, first-time home buyers to find them the perfect home.

“I help my clients find, evaluate and acquire great real estate.”

Joseph can be reach at (559) 320-0690 with Keller Williams Realty Fresno, if you have Fresno real estate related questions.

Professional and novice writers now have an outlet for hanging out with other Clovis writers.

The Clovis Writer’s Group at Harlan Ranch is open to local writers who are looking for constructive feedback to get their project to the next level or simply hang out with lick-minded people.

Harlan Ranch is the planned community in 93619 that is attracting a lot of real estate buyers looking for family oriented Clovis real estate.

The writer’s group is hosted by David Shireman and Jessica Lester every Thursday night inside the beautiful Harlan Ranch Clubhouse from 7:00 pm to 9:30 pm.

If you’re interested in the Clovis Writer’s Group at Harlan Ranch, here are some items to keep in mind:

• Bring your writing and nurture your talent through positive feedback.
• All genres are welcome.
• Meet other writers and build your network and friend list.
• Learn from others writing experience.
• No fees – come and meet for free.
• Ages 17 and up.

Still think you might like to attend? Thursday evenings inside the the Harlan Ranch Clubhouse.

HARLAN RANCH REAL ESTATE

If you’re interested in Harlan Ranch real estate, turn to a team that has sold Harlan Ranch real estate and is familiar with the current market prices in this community.

Joseph Hollak

Fresno Realtor

Keller Williams Realty Fresno

(559) 399-0004 | office

Friday August 13th is the last and final movie for the 2010 Harlan Ranch Movie Series.

1. Friday June 11th – Hotel For Dogs – done
2. Friday July 16th – Where the Wild Things Are – done
3. Friday August 13th – Akeelah and the Bee

All movies will show in the Harlan Ranch Amphitheater at 8:30 pm.

If you’ve been thinking about the family lifestyle living at Harlan Ranch, call Realtor Joseph Hollak for details.

Joseph has helped other families purchase Harlan Ranch real estate and can help you to navigate the area as well.

(559) 320-0690 | office

In the meantime, enjoy the 2010 Harlan Ranch Summer Movie Series (it’s free).

Mother Goose at Harlan Ranch

Harlan Ranch is one of the premiere home communities in the 93619 zip code. Definitely resort style living for Clovis California.

If you live at Harlan Ranch currently, you have one more chance to get the kids to the Harlan Ranch Mother Goose Story Hour on Tuesday August 10th (that’s this week).

Lynda Tatman will be back as Mother Goose as she brings the classic children’s stories to life.

Story hour begins at 2:00 pm this Tuesday inside the Harlan Ranch Clubhouse. This is the last story hour scheduled for the summer.

HARLAN RANCH HOME TOUR

If you’re not a Harlan Ranch resident yet, but you think you might love the lifestyle and community, call Fresno Realtor Joseph Hollak and have him put together a custom home tour for you and your family.

Joseph has helped other local families find, evaluate and acquire Harlan Ranch property and can you do the same.

Joseph has helped other families with Harlan Ranch real estate and knows the community. He can be reached at (559) 399-0004.