Earlier this week, when the NAR released data on existing home sales, their statement about appraisers’ role in killing purchase transactions was dead on the mark:
“The increase in sales is less than expected because poor appraisals are stalling transactions.
Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan. Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales.”
Showing posts with label NAR. Show all posts
Showing posts with label NAR. Show all posts
Tuesday, July 7, 2009
Tuesday, June 2, 2009
Pending Home Sales Gain for Third Month
Source: www.HousingWire.com
Amid mortgage rates holding near record lows and news that some buyers might be able to use the $8,000 first-time home buyer tax credit toward closing costs on government-insured mortgages, home sale transactions picked up for the third consecutive month in April.
An index of pending home sales, calculated by the National Association of Realtors (NAR) from contracts signed in April, indicated a 6.7% month-on-month rise in activity across the US.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” says Lawrence Yun, NAR’s chief economist, in a media statement today.
“Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers,” he adds.
Amid mortgage rates holding near record lows and news that some buyers might be able to use the $8,000 first-time home buyer tax credit toward closing costs on government-insured mortgages, home sale transactions picked up for the third consecutive month in April.
An index of pending home sales, calculated by the National Association of Realtors (NAR) from contracts signed in April, indicated a 6.7% month-on-month rise in activity across the US.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” says Lawrence Yun, NAR’s chief economist, in a media statement today.
“Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers,” he adds.
Monday, May 11, 2009
The Basics: 2009 First-Time Home Buyer Tax Credit
Bringing the Dream of Homeownership Within Reach
Source: National Association of Realtors
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
Source: National Association of Realtors
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
Thursday, March 12, 2009
Staging a Home to Sell
When you’re trying to sell a home in a tough economy, home staging is critical. Home staging is defined as the act of preparing your home for sale with an emphasis on presentation and appearance.
In markets with high foreclosure rates and decreased prices, staging has particular importance because the process results in a higher sales price compared to an unstaged home, according to the U.S. Department of Housing and Urban Development. Houston, TX, for example, had a 28 percent increase in foreclosure listings in 2008 compared to 2007, according to RealtyTrac. Median sales prices of single-family homes also decreased 11 percent, or $18,100, to $151,600 in that market between 2007 and 2008 according to the National Association of REALTORS®.
Here’s a rundown of what you can do to successfully stage a home to sell:
First and foremost, clearing out the clutter is key to staging a home. Make sure to avoid crowded kitchens and bathrooms, too much furniture and an overabundance of family photos and knickknacks. Now might be the time to donate items to charity or hold a garage sale.
Overflowing closets should also be avoided. You might try lining main closets with cedar, which is not only a great look, but it will also release a relaxing scent that will help create a good first impression. Cedar panels also protect the items that you store, and prevent insects from damaging clothing, books or important papers.
The rest of the home also needs to have a clean scent. If your client has pets, make sure they are bathed regularly, and deodorize and shampoo carpets that might be in their high-traffic areas. Clean drapes are also an important suggestion.
Also think about emptying trash cans and recycling bins. And, of course, a fresh coat of paint and neat landscaping will always help create curb and Web appeal.
Source: National Association of REALTORS®
In markets with high foreclosure rates and decreased prices, staging has particular importance because the process results in a higher sales price compared to an unstaged home, according to the U.S. Department of Housing and Urban Development. Houston, TX, for example, had a 28 percent increase in foreclosure listings in 2008 compared to 2007, according to RealtyTrac. Median sales prices of single-family homes also decreased 11 percent, or $18,100, to $151,600 in that market between 2007 and 2008 according to the National Association of REALTORS®.
Here’s a rundown of what you can do to successfully stage a home to sell:
First and foremost, clearing out the clutter is key to staging a home. Make sure to avoid crowded kitchens and bathrooms, too much furniture and an overabundance of family photos and knickknacks. Now might be the time to donate items to charity or hold a garage sale.
Overflowing closets should also be avoided. You might try lining main closets with cedar, which is not only a great look, but it will also release a relaxing scent that will help create a good first impression. Cedar panels also protect the items that you store, and prevent insects from damaging clothing, books or important papers.
The rest of the home also needs to have a clean scent. If your client has pets, make sure they are bathed regularly, and deodorize and shampoo carpets that might be in their high-traffic areas. Clean drapes are also an important suggestion.
Also think about emptying trash cans and recycling bins. And, of course, a fresh coat of paint and neat landscaping will always help create curb and Web appeal.
Source: National Association of REALTORS®
Monday, January 19, 2009
Working With a Realtor®
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict Code of Ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® CODE OF ETHICS requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
-Source: National Association of REALTORS® (www.realtor.org)
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® CODE OF ETHICS requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
-Source: National Association of REALTORS® (www.realtor.org)
Saturday, January 17, 2009
The National Association of REALTORS®' 10 Steps to Home Ownership
For First Time Homebuyers
The home-buying process doesn't need to be scary. The National Association of Realtors®' step-by-step guide will walk you through the process and answer your questions on what you should expect from your REALTOR®, where to look for loans, and what to watch out for when closing the deal.
Homebuying Guides
Even before you begin looking for a home, the homebuying process requires diligent preparation. Buyers who have been preapproved for a home loan often have their offers taken more seriously by sellers. With advance preparation, you can tackle the process of acquiring the financing you need with more confidence. To help you on the path to homeownership, the Fannie Mae Foundation offers free step-by-step guides that can help you get closer to achieving your dream:
Knowing and Understanding Your Credit
Opening the Door to a Home of Your Own
Choosing the Mortgage that's Right for You
Borrowing Basics: What You Don't Know Can Hurt You
These authoritative homebuying guides (in PDF format) are available in nine languages, including English, Chinese, Haitian-Creole, Korean, Polish, Portuguese, Russian, Spanish and Vietnamese. You can download a guide or order a print version online from www.HomeBuyingGuide.org, a Web site run by the Fannie Mae Foundation.
The Fannie Mae Foundation is a private, nonprofit organization devoted to affordable housing and the revitalization of communities. The foundation has provided free, step-by-step homebuying information to more than nine million people.
The home-buying process doesn't need to be scary. The National Association of Realtors®' step-by-step guide will walk you through the process and answer your questions on what you should expect from your REALTOR®, where to look for loans, and what to watch out for when closing the deal.
Homebuying Guides
Even before you begin looking for a home, the homebuying process requires diligent preparation. Buyers who have been preapproved for a home loan often have their offers taken more seriously by sellers. With advance preparation, you can tackle the process of acquiring the financing you need with more confidence. To help you on the path to homeownership, the Fannie Mae Foundation offers free step-by-step guides that can help you get closer to achieving your dream:
Knowing and Understanding Your Credit
Opening the Door to a Home of Your Own
Choosing the Mortgage that's Right for You
Borrowing Basics: What You Don't Know Can Hurt You
These authoritative homebuying guides (in PDF format) are available in nine languages, including English, Chinese, Haitian-Creole, Korean, Polish, Portuguese, Russian, Spanish and Vietnamese. You can download a guide or order a print version online from www.HomeBuyingGuide.org, a Web site run by the Fannie Mae Foundation.
The Fannie Mae Foundation is a private, nonprofit organization devoted to affordable housing and the revitalization of communities. The foundation has provided free, step-by-step homebuying information to more than nine million people.
Subscribe to:
Posts (Atom)