What is an agent and who do they represent?

More often than you’d expect, homeowners refer to the person they bought their insurance from as their agent. It sounds reasonable but it’s definitely not accurate. That person is the agent of the insurance company and they legally represent the company, not the customer. Even an independent agent who can place a policy with different companies is still an agent of the company.

A mortgage officer, in most cases is an employee and represents the company. And the same is true for a title or escrow officer. It’s important to understand the actual relationship to know what you can expect from them.

Any business person who wants to stay in business must treat their customers fairly and with a high degree of service. As a customer, you should be able to reasonably expect honesty and accountability. The difference is that employees owe their loyalty to their employer and agents owe their loyalty to their principal.

An agent owes more than just honesty and accountability. The principal can expect complete disclosure, obedience, loyalty, reasonable skill and care and confidentiality from their agent.

This advocacy is very beneficial during the buying or selling process to coordinate all aspects of the transaction. The agent can bring valuable experience to your side of the transaction to provide confidence that your best interests are being represented from start to finish.

Most states have a recognized procedure for the real estate professional to create a formal relationship between themselves and a buyer or seller. This requires a fiduciary/statutory responsibility that places the principals’ interests above the agent’s own personal interests.

Please call me at 559-447-1978 for advise about buying, selling or investing in the Fresno real estate market.

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5 Reasons to Buy a Home NOW

1.  Lowest Housing Prices in Years

Home listing prices have been at their lowest in several years and they are now inching back up again.  So buying now or in the near future may be the right time for you.  An abundance of bargain –priced housing is now available because of foreclosures.  It’s a red-hot market right now inFresnoandClovis!

2.  Interest Rates at a 50-Year Low

According to housing analysts, interest rates are now at a 50-year low.  Today’s 30-year rate, as low as 2.75% fixed for 30 years, is an attractive inducement to first-time buyers, or buyers who want to either move up to larger residence, or others, including many empty-nesters wanting to sell and move into smaller homes or condos.

3.  Interest Rates Expected to Go Up

As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more expensive.  Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly payments, depending on the amount of your loan.

4.  Low Down-Payment Mortgages Available

Low-down-payment financing through Federal Housing Administration insured mortgages is available as an additional inducement to buy a house now.  Down payment minimum requirements also fluctuate and may increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to buy now.

5.  Easy to Qualify, Easy to Borrow

Lending standards have become less rigid recently, so qualifying for a mortgage may be easier.  Here at California Property, we advise that potential buyers become pre-approved for a loan by a lending institution- meaning that a lender guarantees to make the loan contingent on an appraisal of the property.  The good news in seeking pre-approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula allowed- a percentage of monthly income.

So, what does all of this mean for you…

With the convergence of the factors above, all of which are favorable to you, the home-buyer, there may not be a better time to buy than right now.  Like everything else in life, the bargain deals won’t last.  To help determine if this is the right time for you to buy, call The Kelly Holcomb Team at California Property 559.447.1978. 

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Now is the Time to Buy!

Currently in the Fresno-Clovis area, the number of single-family homes for sale continues to decrease and now stands at a 1.1-month supply. As the inventory numbers continue downward, the prices, however, continue to rise.

This combination is creating a red-hot market.

Interest rates are still low at 3.25% FHA and 3.5% conventional.

The current average sales prices show

 a 9% increase over last year with 4.75% of the increase occurring in 2012 alone.

Active Fresno-Clovis ending 9/30/11: 2,466
Active Fresno-Clovis ending 9/30/12: 940

Average Price 9/30/11: $148,250
Average Price 9/30/12: $165,000

Months Supply 9/30/11: 3.9 months
Months Supply 9/30/12: 1.1 months

This really is the time to buy or sell in the Fresno-Clovis area. Give us a call today to get started!

(559) 447-1978


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Good News for Home Sales in Fresno

I just got back from the California Association of Realtors Expo in San Jose and thought I’d spread some good news regarding expected increases in home prices.

REALTORS® expect 1 percent rise in Calif. home sales
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) released its 2012 Housing Market Forecast this week during CALIFORNIA REALTOR® EXPO 2011 in San Jose. The forecast calls for California home sales and median price to improve only slightly in 2012, as the continuation of the tepid economic recovery, uncertainty about the future, and funding challenges for residential mortgages are expected to keep the market moving sideways, with little foreseeable momentum in either direction.

… … Making sense of the story

•The forecast for California home sales next year is for a slight 1 percent increase to 496,200 units, following essentially flat sales of 491,100 homes this year compared to the 491,500 homes sold in 2010.

•“Discretionary sellers will play a larger role in next year’s housing market,” said C.A.R. President Beth L. Peerce. “Those who held off selling in 2011 may list their homes in 2012, thereby improving the mix of homes for sale compared with the last few years. Additionally, distressed sales will remain an important segment of the overall market as lenders continue to work through the foreclosure process.”

•The California median home price is expected to increase 1.7 percent in 2012 to $296,000 in 2012, according to the forecast. Following a double-digit increase in the median price in 2010, the median home price will decrease a projected 4 percent in 2011 to $291,000.

•“2012 will be another transition year for the California housing market, as the continued uncertainty about the U.S. financial system, job growth, and the stability of the overall economy remain in the forefront for all market participants,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “An improvement in job growth, consumer spending, and corresponding gains in housing are essential to a broader recovery in the economy, but would-be buyers will remain cautious as they weigh these myriad uncertainties against the clear opportunities presented by today’s very affordable housing market.

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