Monday, April 14, 2014

Median Price of SFR Home Listings Sold in Fresno & Clovis at a 12 Month High

The median price of SFR home listings sold in Fresno & Clovis increased by 28% from March 2013 to March 2014.   




If you have any questions on his information or want specific information on the Fresno/Clovis Real Estate housing market, please contact Greg Maroot at 559-994-0254.


Maroot Properties herein deemed this information is reliable but not guaranteed; representations are approximate, individual verification recommended. Real property transactions information listed above is limited to Fresno MLS listings and may exclude total number of real property transactions which occurred in the marketplace

Wednesday, April 9, 2014

Fin 181 BP: Commercial Site


Commercial site
The property that I will be discussing today was an appraisal that took place March 6, 1962 on block 274 of Fresno city, located at the southwest corner of Fresno and "B" streets, Fresno, California. Mr. Harris had requested an estimate of the current market value on Lots 1, 2, 3 and 4, 150 front feet and a depth of 100 feet. Mark Massie a local appraiser with Miles, Andrew & Cullington Inc has provided his procedures on why the property is with $25,000. Finally I will close with information that I found on the property in today's market.
At the time of the appraisal, March 1962, three houses were located on this lot, since it was a residential area at the time the houses were built. This property was in a gradual transition from residential to commercial and light industrial land users. There was very little real estate activity happening in this area.  For example there were only two roughly comparable properties that had recently sold in 1962 in that area, but were not on the main street.  With that being said Block 274 was appraised using the Highest and Best Use method of the land for the commercial nature.  Mr. Massie chose two commercial properties to support his appraisal, a Shell Oil Company and a single-story brick store building.
The Shell Oil Company is on the corner of Fresno and “C” Street with close proximity to the on and off-ramps of Freeway 99.  Therefore this corner has greater traffic flow. September 1958 the land was purchased for $42,000, a 160 front feet length and 150 feet depth, based on a $225 per front foot.  The single-story brick store building located on Fresno and “A” Street was purchased in September 1959 for $25,000. The building itself was estimated to be worth $13,000. The building had 100 front feet with 135 feet, and estimated the property at $120 per front foot.  Since Block 274 lies between the two properties Mr. Massie to into consideration the various factors and concluded that the value of the subject property is valued at $165 per front foot.
Harry F. White Estate the owner of lots 1, 2, 3, and 4 on Block 274 had a property area of 15,000 sq. ft. in zone c-6, Heavy Commercial. The latest information that I found on this property was in February 2002 Mr. and Mrs. Luh had purchased the property for $372,954.00. The zoning and square footage remains the same, but two business, Radio Shack and Advance Amerixca that lease the buildings, have replaced the houses. If this retail property was on the market today Loopnet.com has appraised it at $1,200,000 a $283.02 price per sq. ft. which is a little high compared to the $179 price per sq. ft average in Fresno retail asking prices.


In conclusion I believe that property would have been a great investment back in the day since I was able to also see that Shell’s Oil Company was in business until 2011, until they sold in March of 2012.  Even then a $42,000 property that was sold for $1,750,000 and the subject property at $25,000 selling for nearly $373,000 is a good investment.

Work Sited

Friday, March 28, 2014

Fresno & Clovis Home Pre-Foreclosure Inventory Up (Feb. 14)

The total number of Pre-Foreclosure Home Inventory in Fresno & Clovis increased 5% from February 13 to February 2014.  Pre-Foreclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property, but have not yet been Scheduled for Sale.



If you have any questions on this information or want specific information on the Fresno/Clovis Real Estate housing market, please contact Greg Maroot of Maroot Properties at 559-994-0254.


Maroot Properties herein deemed this information is reliable but not guaranteed; representations are approximate, individual verification recommended. 

Thursday, March 27, 2014

Gazarian Center Real Estate Sentiment Index Report - Spring 2014

Thank you to everyone that participated in the Gazarian Center Real Estate Sentiment Index Survey. Your participation is greatly appreciated!

Here are the results of the Spring 2014 survey.


















Wednesday, March 26, 2014

Welcome Home Radio Podcast

Please click the link below to listen to the most recent Welcome Home Radio podcast featuring:

Dr. Andrew Hansz, Director of the Gazarian Real Estate Center
Diane Ray President of the Student Society of Real Estate
Cameron Scheidt, Real Estate Student and Winner of the 2014 Elevator Pitch Competition 

http://kjwl.com/mp3_files/WHR/03-22-14_Full%20show.mp3 

Workshop and Industry Panel on High Speed Rail: A Systems Approach


Workshop and Industry Panel on
High Speed Rail: A Systems Approach

Monday, April 7, 2014
8:30am-5:45pm

University Business Center
California State University, Fresno






The Lyles College of Engineering and the Division of Continuing and Global Education at California State University, Fresno present "High Speed Rail: A Systems Approach", a technical professional development workshop for practicing engineers, construction managers, planners, policy makers, and others interested in learning more about the systems approach towards high speed rail implementation.


This workshop will be followed immediately by an industry panel and a reception presented and sponsored by the Fresno County Economic Development Corporation and Precision Civil Engineering. Jeff Morales, Chief Executive Officer, of the California High Speed Rail Authority (CHSRA) will be a panel guest.


For detailed event information, click here.

You may also contact the Office of the Dean, 
CSUF Lyles College of Engineering at 559-278-2500.





Tuesday, March 25, 2014


Then and Now: Grail Fernwood Shell Oil Company Appraisal


By: Joshua Tabers

Although this is the Mark Massie appraisal assignment, the appraisal report that I studied was done By Grail O. Fernwood, a colleague of Mark Massie, in 1961. The property was a 120’x150’ parcel on the southwest corner of Palm and Bullard Avenues in Fresno. This appraisal was done for Shell Oil Company and their interest of building a service station. At the time, the parcel was just a vacant lot and the area surrounding it was farmland. To the east and northeast was developed land. At the north east corner of Palm and Bullard there was already a functioning service station and the lot on south east corner of Palm and Bullard had been approved for a service station. An appraisal was done for the value of the land and also for the value of the property with a service station.



Grail Fernwood used the sales comparison approach method for his appraisal. The appraisal for the land value was $3,000 which was based on the prices of other properties with consideration of the conditions of the property. The property needed minor grading and had good drainage and visibility as well as accessibility to gas, water and electricity. For the appraisal of the proposed service station, Fernwood looked at the selling prices of 10 different service stations that sold in past years. He also looked at the asking prices of 7 different service stations that were on the market at that time. Along with that, he researched 8 different service stations that were being leased with 1 of them being the service station on the north east corner of Palm and Bullard Avenues. With all of this information, Fernwood came up with an appraisal for the proposed site to be valued at $45,000.

Through countless research, I was unable to find any evidence that Shell Oil Company carried out the service station on the southwest corner of Palm and Bullard Avenues. Currently, there is a Valero Gas Station on that corner with the property that Grail Fernwood appraised nearly 53 years ago. Since there is currently a gas station on that same property Fernwood appraised, it is fair evidence that Shell Oil Company built their proposed service station. Although the highest and best use for this property was not requested for this appraisal, a service station may have been its highest and best use since there is one there over half a century later.



According to findthebest.com, an estimated current value for the property is $1.51 million with the value of the land being $470,456. The last selling price was $780,000 which was on March 7, 2001 and the last major renovation was in 1989. The property value of $1.51 million seems high compared to the last sale and also what other gas stations in the area are selling for. At the current inflation rate of 3.96% the property would have been appraised at $360,983.25 and the land value would have been $24,065.48 which are much lower than what the values estimated today. This property value would have increased by 418% which would have been 8% per year. Although this is, improvements and maintenance on this property would make this amount lower.

 

Sources:


Grail Fernwood: Shell Oil Company Appraisal.

Ratterman, Mark R., MAI, SRA. The student Handbook to The Appraisal of Real Estate, 13th edition. 2009.

Saturday, March 22, 2014

Average Days on Market for Fresno & Clovis Home Listings Up

The average days on market for Fresno and Clovis home listings sold increased by 4 days from February 2013 to February 2014. 




If you have any questions on this information or want specific information on the Fresno/Clovis Real Estate housing market, please contact Greg Maroot of Maroot Properties Inc. at 559-994-0254.


Maroot Properties herein deemed this information is reliable but not guaranteed; representations are approximate, individual verification recommended. 

Wednesday, March 19, 2014

Welcome Home Radio Talk Show and the Gazarian Real Estate Center

Listen to 940 AM ESPN radio this Saturday, March 22nd from 9:00 am to 10:00 am where the activities of the Gazarian Real Estate Center and Student Society of Real Estate will be the topic of the day.  Guests will include Andrew Hansz, Director of the Gazarian Real Estate Center,Cameron Scheidt, current Real Estate student and Diane Ray, President of the Student Society of Real Estate.

Every Saturday morning, Welcome Home Radio hosted by Don Scordino and various guest speakers entertain and educate the listeners on news regarding our local real estate market.   These topics are informational for consumers and real estate professionals alike.

FIN 181 Blog

Imperfect Markets
Josh Hovannisian Appraisal Blog post
 
Real estate is a very complicated subject to analyze. One of the largest reasons for this is because real estate occurs in an imperfect market. The reasons for the imperfections of these markets include the finite amount of space and the heterogeneity of properties. That being said, the supply and demand of the real estate market never quite meets equilibrium. I will examine a property that was appraised by Mark Massie to further examine the imperfection of the real estate markets.
The property in question is 1645 N. San Pablo Avenue in Fresno California. This property is located directly off of McKinley on a side road in a neighborhood. One of the more interesting characteristics of the property is the surrounding location. Across the street of where McKinley meets San Pablo is Fresno City College. This makes this property very interesting to study because of its distance from the junior college. The school is also directly across the street from Heaton Elementary School. This Proximity to an elementary school can be looked at in both a positive or negative light. Many families would be very happy to live so close to a school, however, there are also many people who wouldn’t like the constant traffic that goes with living next to a school.

Now that we examined the current location of the property, we can discuss the Massie report that was written up in 1961. This report was a 42 page detailed report of the property and included all three appraisal methods. The neighborhood, at the time of the report was decent according to Massie. He cited that there was a neighborhood with much larger lots nearby, however if someone was in the market for a standard home on a standard lot, this would be nice. An interesting thing is that Fresno City College was still around back in 1961. Because of this, when we look at the property at hand, we don’t have to adjust for different surroundings.

The sales comparison approach that Massie used focused on five sales. The lowest of these was $8,200 and the highest of these was $9,100. The cost approach that Massie used included a living area of $7.75 per square foot, a detached garage and other features. Massie estimated this amount to be $8,750. The income approach used by Massie indicates a sales price between $7,500 and $10,000. He does, however, believe the lower amount to be a better indicator of the subject property.  With all of these approaches, a potential sales amount of the subject property could be appraised at $8,900.
Obviously the house would sell for much more now, but first we must look at the changes in the neighborhood. The neighborhood isn’t quite as nice as it was in 1961 due to new development and the focus of the city moving north from the downtown and tower district area. The neighborhood is still next to Fresno City College, however, which, although not the most desirable area is still better kept than many neighborhoods to the south. Also, I believe it should be recognized that the fact that it is directly next to an elementary school is good for the property, although the school is in the Fresno Unified School District, the weaker of the local districts. I believe that the house in the current condition today would be sold for $75,000. This is of course factoring in the current condition of the house, which looks just as good as it used to, but also the fact the house is old.


Now we can examine the imperfection of the market. According to the Consumer Price Index, $1.00 in 1961 would be worth about $7.85 today. This inflation number could be calculated by using a 785% inflation rate from 1961 until today. Using this rate, we can determine that something costing $8900 in 1961 would cost $69,865 today. Factoring the fact the property was much newer in 1961 than it is today, we can see that real estate markets do not follow the same path as the value of money. This is because of the imperfection of the real estate market. This is a phenomenon that can only be explained by the finite space, the heterogeneity, and the other factors that separate the real estate market than any other market there is. In such case, we can conclude that real estate is a totally separate field than any other in the business world and is best to be examined by real estate professionals.



Sources:
Ratterman, Mark A.The Student handbook to The Appraisal to Real Estate 13th Edition
Hansz, J. Andrew. Lecture, FIN 181, Spring 2014

Tuesday, March 4, 2014

Student Society of Real Estate Monthly Club Meeting

Come join us at our SSRE meeting!




When: Wednesday, March 4, 2014

Time: 5:00PM - 5:45PM

Where: PB 012 (Peters Business Building)

Who: All students who are interested in Real Estate, Construction and other related industries

Topics to discuss:       Upcoming events, Openings for Vice President and Treasurer for Fall semester, communication in social media, etc.  

New Markets Tax Credit Seminar - March 11th

Nationwide, over $34 billion of New Markets Tax Credit capital
has been invested into thousands of businesses and real estate
developments since 2002. Please join Chase Community
Development Banking, California Statewide Communities
Development Corporation, and Central Valley NMTC Fund to learn
how to access New Markets Tax Credits for your qualified business
or real estate development. These unique tax credits have helped
developers and business owners gain access to a low-cost source
of capital to solve a portion of their capital needs while creating
significant community and economic impact in distressed areas.
Please join us to learn more about the New Markets Tax Credit
program and find out if your project or business qualifies.

REGISTER
To register, contact Lillian Weiland at lweiland@cvnmtc.com

NOTE The educational program is FREE; however, space is limited.

SESSION DETAILS:
Tuesday, March 11—Fresno
2:00 p.m. - 4:00 p.m.
Park View Plaza
9 River Park Place East
Fresno, CA

Monday, February 24, 2014

FIN 181 Appraisal: The Very Touchy Subject of Eminent Domain By Jazmin Padilla


FIN 181 Appraisal
The Very Touchy Subject of Eminent Domain
By Jazmin Padilla

Often one of the most controversial subjects in real estate is the subject known as eminent domain. Let me define it in its most simplistic form. Eminent domain is the power of a state or the federal government to take private poverty. This power is ingrained in the United States Constitution, more specifically the Fifth Amendment. However, restrictions and limitations are imposed with the acquiring of private property. The property must serve a “public use” and just compensation must be given for the property. This is where the slippery slope of eminent domain begins. What is “just compensation” and what defines “public use”? Many opinions from professionals within the real estate field can answer that question but more than likely, one will get different answers. However, Mark Massie, one of the most established appraisers, took on this task in 1965, with the property known as Parcel No. 8, 405 “M” Street Fresno, California. Let us dive deeper into the case, analyze his methodology behind the appraisal, and fast forward to now to appraise the property as is today.
Map of Subject Property and Comparable provided in Mark Massie Report, 1965.
Methodology and Procedure
The picture above is a birds-eye snapshot of the original  subject property taken in 1966. Using the sales comparison approach, Mr. Massie compared the subject property to other rooming houses within the city. The data was obtained through Mrs. Dardarian, owner of the property,  the Fresno Police Department, and the Fresno Realty Board. Furthermore, land sales comparables were not available and so, Mr. Massie relied on sales data from the case, “People vs. Mary Shamshoian, Fresno County SCC No.12231.”  Thus, in order to value the property so that the state government pay Mrs. Mary Dardarian “just compensation”, Mr. Massie used the sales comparison approach, which is often the most preferred method of valuation.

Property Specs and Market Data
As stated earlier, the use of the property was a rooming house, commonly known as a boarding house. The property was originally zoned for M-1 and light manufacturing. According to Mr. Massie’s report, the property included all standard utilities such as electricity, natural gas, telephone, water and sewer controlled through the city of Fresno. The property was located in a residential development established prior to 1900. The location is one of the first developments of Fresno and at the time, was in transition from residential to industrial use. Externalities affecting the value of the property during Mr. Massie’s appraisal was the completion of the Convention Center. Commercial use of the area grew tremendously. The actual site included a two story structure with wood frame, that was in fair condition. The report provided by Massie provides greater detail of the condition of the rooming house.

Valuation: Then and Now
Mr. Massie concluded that the highest and best use was to remain a residential unit. However, according to the Fresno City zoning code, the property would only have been permitted to be residential until June of 1980.
Aerial view of 405 M Street today. Yahoo Maps 2014
 
Following 1980, the land was converted to an industrial use. Mr. Massie valued the property at 16,250 dollars on June 15, 1965. After carefully reading the methodology and sales comparables completed by Mr.Massie, I believe his appraisal was accurate.


405 M Street today. Yahoo Maps 2014
As you can see from the picture above, there no longer exists a rooming house on M Street. With the use of eminent domain, the property is now used for freeway purposes. The street runs directly below Route 41, the state highway.  Many Fresnans will say that they in fact, use the freeway to travel not only to locations, such as Morro Bay and San Luis Obispo, but to get around the city itself since it interests with the local 99 route. Much can be learned from the appraisal by Mark Massie. Methodology, research, data, comparables, and so much more must be considered to determine the most accurate value of a property.

Sources:

People vs. M.A. Myron, et al. Appraisal of Parcel 8. 30 March 1966. Print. 18 Feb. 2014

Rattermann, Mark. The Student Handbook to the Appraisal of Real Estate. 13 Ed. Appraisal Institute, 2009. Print.