September Real Estate Newsletter

 

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September 2010
Why it’s still beneficial to own your own home For decades, homeownership has been a key part of the American dream. Recently, however, some media outlets, academics and others have questioned this notion. However, here are some reasons why homeownership is still valuable: Homeownership strengthens communities. Homeowners generally stay in their homes longer than renters. This helps prevent crime, fosters a better school system and generally makes for more secure, established and attractive neighborhoods. Financially, owning a home is one of the best ways to build long-term wealth, by building equity in your home and allowing you to deduct mortgage interest on your federal income taxes. Some homeowners even consider their home a forced savings account. Renting can cost less in the short term. But like the cost of most things, rental rates generally increase over time, with typical increases of about 7 percent per year. For homeowners with a fixed-rate mortgage, their monthly payment will be fixed for the life of the loan. All real estate is local. With local home prices and mortgage interest rates at historically low levels today, even those who advocate renting acknowledge that Southern Nevada is one of the places where you now have a strong financial incentive to buy a home – even without a tax credit. That being said, owning a home is a responsibility. It’s not for everyone. If you’re thinking about buying or renting a home, contact me so that I can help you evaluate your options. Tips for Buying in a Tight Market   Increase your chances of getting your dream house in a competitive housing market, and lower your chances of losing out to another buyer. 1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller. 2. Stay in close contact with your real estate agent to find out about the newest listings. Be ready to see a house as soon as it goes on the market – if it’s a great home, it will go fast. 3. Scout out new listings yourself. Look at Web sites such as REALTOR.com, browse your local newspaper’s real estate section, and drive through the neighborhood to spot For Sale signs. If you see a home you like, write down the address and the name of the listing agent. I will schedule a showing. 4. Be ready to make a decision. Spend a lot of time in advance deciding what you must have in a home so you won’t be unsure when you have the chance to make an offer. 5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t go too low to get a deal. In a tight market, you’ll lose out. 6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. 7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound. Source: NAR Sellers: 5 Questions to Ask When Reviewing an Offer You made the decision to list your home with a REALTOR®. You worked hard to get the house in tip-top shape, the curb appeal shines, and you’ve priced it well. Some might say that’s the easy part. When an offer comes in, your agent will review it with you. It’s important that you read and understand all of its terms – not just the purchase price. Here are five things to keep in mind when reviewing offers to help you choose the one that’s best for you. 1. What contingencies are involved? A contingency is something that has to happen before the contract is fully enforceable against the buyer and seller. If a contingency is not met, the party benefited by that contingency can walk away. Common examples include the buyer seeking a mortgage loan to purchase the home; selling the buyer’s current home; conducting inspections; and in a short sale, approval of the seller’s lender. 2. What’s the bottom line? Can you afford to cover everything the buyer is asking for? Your agent can provide you with a “net sheet” that takes all of the financial terms – such as requests for closing costs and repairs – and calculates what the net proceeds will be, based on the offer price. This is especially important for owners who are short selling their homes. 3. What timeframes are involved? Be available for your agent to present offers. Every offer has an expiration date, and it’s important to meet that expiration date or get an extension if you need more time to review the offer. When is the buyer proposing to close escrow? How long is the buyer asking for due diligence? The purchase agreement will have a “time is of the essence” clause, so it’s important to pay attention to all contractual deadlines. 4. What is most important? This is a question that only you as the seller can answer. If maximizing proceeds is most important, you’re more likely to stand firm on your financial terms, whereas if a quick closing date is most important, then you may be willing to compromise in other areas. 5. What are my options? The seller always has the right to accept, reject or counter every offer that’s made on the property. Selling a home can be a very emotional time for a homeowner. It’s important to stay flexible, look at it as the business transaction it is, and for each provision in the offer decide whether it’s a deal breaker or if you’d be willing to compromise. Working through the offer with your agent, decide what course is best for you. Sales Statistics   Type of Property Median List Price Traditional 224,900 REO/Bank owned 137,000 Short Sale 135,000   Type of Property   Median Sale Price Diff Percentage Traditional   170,000 54,900 76% REO/Bank Owned   122,000 15,000 89% Short Sale   135,000 0 100%   Comparing the above charts for Median List Price vs. Median Sales Price for Traditional, REO/Bank Owned and Short Sales we see that the traditional listings are selling at a very high percentage (78%) of the average list price and the average list price is much higher ($224,900) than either REO or Short Sale properties. The REO and Short Sale average List Price are almost the same, but the average Sale Price for REO properties is lower. It is interesting that the Short Sales properties’ Median List Price is the same as the Median Sale Price. Email me at danya@buyvegashouses.com or call me at (702) 256-4900 for more information regarding the market.	Brought to you by… Danya K. Gresham Coldwell Banker Wardley RE (702) 256-4900 Click for Website Click to Email Pending Home Sales Rise Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said. “But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.” Why Use a REALTOR®? The REALTOR® mark shows that your real estate agent is a member of the National Association of REALTORS® and adheres to a strict Code of Ethics. There are many reasons to use a REALTOR® to help you buy or sell a home. Here’s one: A REALTOR® can give you up-to-date information on what is happening your local marketplace and the price, financing, terms and condition of competing properties. For information on choosing and using a REALTOR®, click here. Fight Foreclosure Fraud Foreclosure fraud has become epidemic in Nevada, and there are some red flags you should be aware of before you seek assistance. Be suspicious of anyone that: Guarantees to stop foreclosure; Tells you to make payments to them; Pressures you to sign or pay; Offers to fill out paper work; Tells you NOT to contact your lender; Tells you foreclosure ‘scams’ aren’t real; or Wants to charge you up-front. There are reputable groups who can help and you will not be charged for their services. So before you do anything, stop and call 702-229-HOME or 877-448-4692 to find a local HUD-approved housing counseling agency. Also visit www.fightfraud.nv.gov. Source: Nevada Foreclosure Prevention Taskforce Tips for Lowering Homeowner’s Insurance Costs 1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property you’re interested in buying. CLUE reports detail the property’s claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE report have been repaired. 2. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you don’t want to be told at closing that the insurer has denied your coverage. 3. Maintain good credit. Insurers often use credit-based insurance scores to determine premiums. 4. Buy your home owners and auto policies from the same company and you’ll usually qualify for savings. But make sure the discount really yields the lowest price. 5. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower. Avoid making claims under $1,000. 6. Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify for a discount on theft insurance. You also may be able to obtain discounts for having smoke detectors, a burglar alarm, or dead-bolt locks. 7. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may have deals on insurance coverage. 8. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage. 9. Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value. Source: NAR Mortgage Calculator

Crazy Las Vegas Real Estate!

I feel crazy bad complaining but dang! I’m BUSY! I’d love to sit down with all those people who say the Real Estate market in Las Vegas is slow and show them my schedule and only 3/4′s of the way completed to do list…maybe they have some extra time on their hands they can lend to me! I love it though! This has got to be one of the best times to be selling houses here in Las Vegas…okay, maybe not as great as when the median price of a home was about $340k, but the median price is really all that’s changed.

Before all you’d hear is the “old-timers” reminisce about how all you had to do is put up a yard sign and you’d be into a bidding war…well guess what??? It’s baaaacccckkkk (please tell me you got the Poltergeist reference!). It’s true though…prices have dropped, hugely. But, you can still put a decent house on the market and if it’s priced right have multiple offers within days! If it’s an REO or an “equity” sale, all the better (and all the more offer’s you’ll get). It’s amazing. Back in 2006 when I first got my license, you’d go to show a house and maybe call ahead to the listing agent just for kicks. Now, you HAVE to call ahead because between the time you pulled the property up for your client and the time you get in the car, bet that they’ve gotten two to three offers in…and if you’re client isn’t ready to go in at at least list price, you might as well save your gas for the next one. I’m telling you, it’s crazy!

If you’ve been in Real Estate longer that a year or so, you can start to feel the energy building back up again. People are scurrying around the office trying to make it to appointments. Heck, I’ve even seen them hand-off buyer referrals because they’re just too busy to take care of them.

And what about the buyers? They’re coming out in droves…really! People are starting to realize that they’re running out of time to get a contract written so they can get the Home Buyer Tax Credit (if you’re thinking about buying a house and aren’t sure of the guidelines, there’s a post below that has a lot of the answers.) They only have until April 15th to get it into escrow and they’re hot to jump in and get their share. Sellers are seeing their houses close at or above list prices, appraisals are still a bit of a challenge, but I just had one come in right on target last week, so maybe the appraisers are catching up.

All in all, it’s a crazy time to be a Realtor and a great time to GO GET THAT HOUSE BEFORE SOMEONE ELSE DOES!!

1813 Tarrant City Henderson, NV 89052 – $275,000

Hope you don’t need me, I’m taking off!!!

Okay, it’s one in the morning…what am I doing up?  Oh, right, my husband came home from work and decided that now would be a good time to work on the car?  Well, as long as he’s quiet and doesn’t disturb our neighbors, more power to him.  I suppose there are much worse things he could be doing in the middle of the night.

So here I am, finishing up my work for the day (sorry Linda, you were at the bottom of the list again).  Open house thank you cards to write, files to get ready for the paperwork that’s being emailed, and tasks to plop down on my schedule for next week.  Gotta get it all done tonight because tomorrow I’m OFF!  I know, I know – a Realtor that takes Sunday off…don’t people look at houses on Sundays.  Well, yeah, I guess they do, but not with me!  I have to take one day off and Sunday seems like a good one.  I can sleep in, go to church, maybe grab a bite with the hubs…yes, I am a disappointment to Realtors everywhere….except we took three listings this week, have one if not two of our other listings closing this coming week, did five open houses, three hours of cold calling (got a couple of leads from that), and an hour of door knocking…I think I’ve earned my day off. 

So I met some fun people at open houses this week.  It’s odd how a person would never let their kid run wild in someone’s house, unless they’re at an open house and then I guess all bets are off.  Little old ladies who want to know if you’re the salesperson because she’d like you to stop by her house when you’re done except as she’s giving you directions, she forgets which way to go and then laughingly admits that she has dementia.  Old men who figure cover-alls are just as good as a well put together outfit and the wives that have to be seen with them.  People who’s “tax guy” says they need to buy something…anything (I’d love to have that problem).  The man who almost keeled over because he didn’t want to bring his oxygen in when he was looking at the house and then tried to slyly make his way back out to his care “to get some air” – and his wife who ratted him out!  It’s just fun to be with these people, I mean come on…you can’t beat the lady who to walk over the stepping-stones to get across the smallish lava rock has to have a death grip on the side of the house so she doesn’t fall off…OFF OF WHAT????

Then my exciting trip down to the strip (thanks Brad).  Who the heck needs a CVS in the middle of the Las Vegas Strip…I know the logical answer for that – people forget to pack certain items that could be found there but c’mon.  I can understand the Coke Place, the M & M place, but who says “hey, we should really check out the CVS before we leave”?  And, as much I as appreciate everyone coming in to spend their money and pay for my kids supplies at school (and I really mean that – thank you!), I hate the fact that those sidewalks full of people carrying their yard-long cocktails, those guys flapping the cards for the girls who can come to your room in less than 20 minutes, and that dang billboard with the girl laying on her back with a disco ball on her lips with the phrase “take it all in” really?  Who doesn’t know what they were saying without “saying” it?  I hate that that’s a lot of the time how people think about Las Vegas.  I have to spend twenty minutes on the phone with people moving into town convincing them that there’s so much more to the town than that sliver of decadence and self-indulgence.

Well, okay, enough of this.  My point is, it’s been a long week and I’m done until Monday morning.  If you want to buy a house, call Linda or Brad!  I’ll be in bed!

Home Buyer Tax Credit Information…

Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

•• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
•• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Recent news:

IRS Releases Revised Tax Forms, Instructions for Claiming Tax Credit (Jan. 25)

Economists’ Podcast: Lawrence Yun Discusses Market Recovery, the Tax Credit, and Employment (Jan. 12)

Economists’ Commentary: Existing-Home Sales and the Tax Credit (Dec. 22)

Who Qualifies for the Extended Credit?
•• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.

•• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
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.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by two additional factors:

1.The price of the home.
2.The buyer’s income.
Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer 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 $125,000 and $145,000 for single buyers and between $225,000 and $245,000 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 $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

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 this three-year period, the full amount credit will be recouped on the sale.

My first blog post…again!

I’m not sure what happened, but I signed in one day and **poof** my blog was gonzo. Oh well, I’m sure it’s floating around out there in cyber space…time to put together more awesome real estate information for Las Vegas!

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