How to Sell Your Home in a Slow Market

Although the real estate market has slowed in recent months, there are still plenty of people looking to buy a home. If you know how to prepare your home, when to allow access for property showings, and are willing to consider offering buyer incentives- you can find the right buyer, even in a declining market.

Before you put your home on the market, take a once over of the property and make sure that all basic or minor repairs are completed. Nothing can turn off a prospective buyer quicker than little things. These repairs don't cost a lot of money and buyers are likely to believe that the larger things may be neglected too if the little things aren't maintained. You want buyers to know that you have pride in your home, so make sure that all of the small repairs are taken care of. Make sure to fix loose railings, torn screens or missing hardware on cupboard doors as these do not cost much to repair.

Keep your home clean throughout the time it is on the market. Its important, especially in a slow market, to have your home available to show at a moment's notice so vacuum regularly, keep kitchens clean, grass cut, and windows washed.. The more often your home is shown, the more likely it is that your home will sell.

Have your home staged by a professional. Home stagers have become a booming business and a professional home stager can help you remove clutter and depersonalize your space. If cost is an issue, you can remove the clutter and personal items yourself. Some real estate agents can advise you on how to arrange the furniture or what pieces to remove so your home is well received. I, myself, have a background in Interior Design and Visual Merchandising so I can certainly help you with this. Don't get too crazy with the removal of furniture, unless of course you intend to keep the home vacant while you are trying to sell the property, but, any pieces that are difficult to maneuver around or are unnecessary should be cleared away. It's important to remember that prospective buyers want to picture their family in the home, not yours and a home full of personal clutter won't show the potential your home offers.

Keep pets contained while your property is being shown and make sure that your cat litter box is always clean and waste of any kind is thrown out (preferably outside of the property). Nothing will turn off a prospective home buyer like a home that smells. Also, make sure that if you have a dog, that you either take your dog for a walk while your home is shown or is put away. Many people are afraid of dogs and although yours would never bite or wouldn't jump on people, its best to remove them to keep buyers safe and to make sure the buyer doesn't accidentally let the pets out of the house if you intend to not be present during the showing.

Be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been and focus on what your home is worth now. In a buyer's market, buyers won't negotiate much. They know that you want to sell your home and a home that is priced too high is likely to be dismissed. You and your realtor should come up with the best price that will not only get your home sold quickly, but will create a lot of activity and interest in the property. High activity and a reasonable price will guarantee a quick offer.

In a slow market, it is crucial to hire a real estate agent so your home will sell in a reasonable amount of time. Yes, there are ways you can list your home for sale by owner using the internet, but nothing beats the experience and know-how of a real estate agent who is able to take care of everything in order to sell your home. This is especially true if you plan to sell your home as a short sale. Navigating through the process of a short sale can be difficult, confusing and time consuming, only a professional should handle the transaction.

Selling your home can be a stressful time, but if you remain patient, flexible, hire the right agent and can think of it as a business transaction, you'll be able to sell your home in a reasonable amount of time. There are buyers out there and the key is to make your home the best one on the block for the best price.

Contact me today and let's discuss your situation and my plan of action on how I will get your home sold!

Rent vs. Buy

To Rent or to buy? That is the question! With the amount of foreclosed properties, short sales and bankruptcies occurring in this economy there has been a huge fluxuation of renters in the market like never before. These instances, unfortunately due to their decreased credit scores and rules, renting may be the only option at this point and time.

The people I'd like to focus today's discussion on, are those that already are renting or may be thinking of renting. In Las Vegas and other cities in my local market, I'm seeing a big majority of young families, recent graduates, and retired families renting properties. These renters are paying any where from $900 to over $2000 per month in certain areas in the valley, when they could be using that money towards the purchase of a property... and more often than not, could be paying less per month on a mortgage!

So, let's take a look at the differences between buying and renting.

As you can see from this example, when you "RENT" the longer you stay in the property the more you end up "WASTING". In the example shown above, the renter is losing out on $54,000 if they stay 3 years, and $90,000 if they were to stay for 5 years. Could you use $54,000-$90,000 in your savings? I'm sure you could come up with better uses of that money in this economy!

Now let's look at if you "OWNED" a property... notice that the property tax you pay each year is a deduction, and the amount of money you receive if the market appreciated even 1%... you are receiving an extra $66,514 in 3 years or roughly $125,000 in just 5 years. Notice your "costs" in this example are at a 6.5% interest rate- imagine how much you can gain at the current interest rates of around 4%! Plus, you'll be getting in when home prices are low so you can save even MORE money and you have the potential to gain quite a bit of equity as the market rebounds!

This past year in fact I helped a couple get into their first home, where their payments ended up being around $800 a month!! As I've said time and time again, there is no time like the present to buy real estate. There is already talk that interest rates will go up before the end of the year, and this may be your last opportunity to take advantage of these historic lows. So contact me today and let's get started!

Down Payment assistance?

If you are like most people, you recognize that now is the best time to buy a home- but unfortunately you don't have an extra $5000-$10,000 dollars just lying around for a down payment. So what do you do? Luckily, state and local governments across the nation have created "down payment assistance programs" or low- and no-interest loans for people just like you!

The number of programs, about 1,000 nationwide, have increased 3% to 5% in the last six months alone... Some banks are now far more willing to work with people who need down payment assistance, or were considered too risky 18 months ago. State housing agencies say that they're seeing the biggest spike in lender support since before the housing downturn and foresee this will continue to increase this year.

These programs specifically target low- and middle-income buyers who are brand new homeowners, or haven't owned a home in a few years. Typically, the programs offer up to $80,000 in loans with interest rates from 0% to 2% for people with little or no money to put down. And then, because participants often have to get their mortgage through the programs' preferred lenders, primary mortgage rates are usually about 1% lower than average interest rates. Surprisingly, these programs can be a better deal than FHA-insured mortgages, due to their required annual mortgage insurance, upfront fee, and possibly higher interest rates.

Even cash strapped states are finding ways to fund the programs because they find the programs boost homeownership, which lead to more jobs and higher home prices. "It promotes affordability, gets people into homes and improves the economy," says a spokesman at the California Housing Finance Agency.

There is no national database as of yet, but ask local mortgage lenders and realtors, check state housing agencies and local government web sites to find if a program is currently available in your state. Also, look for programs that offer grants – they may not be able to provide you with a lot of money up front, but you also don't have to pay the money back!

Buying a home for your college student

A new trend among investors is buying a property in the town where their college-bound children will be attending school. The move allows parents peace of mind as the investment would provide a low cost alternative than if the child were paying rent or lived in on-campus housing. For the kids, it's a way of learning responsibility, the do's and don'ts of looking after their own home, and perhaps a chance at being a landlord.

The most important thing to consider when investing on a property with the intent of having your child live in it, is deciding what will happen to the property after he or she graduates. Is the property going to be a vacation home, will you retire their some day, will your child live there once they find a career? Or will you rent it out to another person or family? My suggestion is determine what your intention with the home is, take in to consideration the wants and needs of your child, but ultimately find a home that will satisfy your needs. Find a place you can see yourself living in and ask your agent if the home is in a good neighborhood for renters and/or if renters are allowed (should the home be located in an HOA) in case you decide to rent it out.

So you've found the home you want, now what? My advice would be to speak with your tax advisor to determine the way in which you purchase the property. Ideally you should speak with this person before even finding a property. They can help you determine if your name should be the one on the deed, your child's-in order to save on Capital Gains tax, or if you should put the property in a family trust. Many out of state colleges require a deed or lease agreement in order to receive in-state tuition, so it is important to have this discussion prior to the start of their semester.

Lastly, If the your child intends to have roommates, even if they are with friends, it's important that the living arrangements are spelled out in advance in a businesslike manner. Each renter should sign a lease agreement that covers how much rent will be paid, fees associated with late payments, what additional costs (such as utilities) will be paid by the renter, what facilities will be shared, and house rules such as whether pets are allowed, smoking policies and provisions for parking and laundry facilities if applicable. This will set the tone as to what is to be expected and will ensure your investment is protected and maintained.

Economists look to fix Foreclosure woes in Nevada

Housing experts will soon get together with Nevada legislators to discuss ways to improve our current housing market. Their intention is to increase the amount of short sales and provide even more protection to homeowners facing financial trouble.

Experts say that although our market is seeing improvement, we are still a long way from where we need to be. Reports expect the valley will exceed 20,000 foreclosures this year for the third year in a row. However, reports also indicate that since July 2009 the number of foreclosure transactions have been declining and short sale transactions are increasing. Currently, short sales account to about 30% of our market and are expected to increase throughout 2011. If we can continue to increase the amount of short sales and improve the way short sales are conducted we should see that number increase extensively.

Assembly Speaker Barbara Buckley, who wrote legislation creating our state’s foreclosure mediation program in August 2009, said she expects a push in 2011 to better protect homeowners and make short sales easier. "Currently, when homes are sold as short sales, or are foreclosed, the holders of the mortgage have up to six years to collect the deficiency," Buckley said, "We will be trying to make second mortgages and short sale deficiencies limited to six months."

This will undoubtedly be great news for homebuyers. For now, those that do not get their deficiencies waved can expect to repay that amount long after the sale of their property. “The lenders won’t sue the homeowners, but they will sell the debt to investors who will,” Buckley said. “If you’re making 30 grand a year and they garnish you at 25 percent of your income, you will be an indentured servant the rest of your life."

Regardless of your situation it is best to speak with an attorney as soon as possible. They can answer all of your questions and give you all of your options. They can help you get your loan modified and in some cases your principal reduced. If you qualify for a short sale, they can help you lower and in most cases clear your deficiency.

Obviously, we are a long way from the boom in 2004, but with the kind of legislation being proposed by housing experts and legislators like Barbara Buckley we can get through the recovery sooner rather than later.

What else do you think legislators could do to help our market recover?

Free Online Resource for Struggling Homeowners

Since the creation of the HAMP program (Home Affordable Modification Program), many people have complained about the delay in processing of paperwork despite the hundreds of people hired. By using the free online software at www.FreeMortgageFix.com, homeowner's can expect an expedited response and hopefully a higher percentage of approvals. Johnathon Ende, the CEO of Free Mortgage Fix states, "homeowners can expect help in 15 minutes."

FreeMortgageFix.com's software will calculate your debt-to-income ratio, the current value of your home, and your overall eligibility. Once all has been determined, the appropriate forms are created and then printed with a cover sheet addressed to your lender. The site also provides tips, solutions, a communication log and a to-do list for you to keep track of what's needed from you and your lender.

For more information about the HAMP program such as eligibility requirements, you can go to www.makinghomeaffordable.gov or simply click on the "HAMP-FAQs" link under "Helpful Information".

Paul Bell is the new 2011 president of the Greater Las Vegas Association of Realtors. In his interview he addresses his expectations of the coming year, the rumors of the "shadow inventory" and the state of the Las Vegas market. Some great information that I just had to share. Enjoy!

Excerpts from Q&A with Paul Bell interview from Las Vegas Sun

Do you trust what the numbers are saying for inventory?

We feel like we have a pretty good handle on the available inventory right now, and our discussions with the Department of Housing and Urban Development, the current inventory of 16,500 units (without any offers) includes 500 new home products. That’s a pretty good supply for a population of about 1.9 million people.

What about the discussion of shadow inventory?

Reports from escrow companies are telling me 20 percent of the monthly foreclosures are purchased by parties other than the foreclosing lender. I’d say you have 2,000 to 3,000 units a month that are trying to come to market as foreclosures. There’s another caveat in that there are a number of investors who are buying these foreclosures at the courthouse, and they’ve restored the houses for rent. We’re finding out that you probably have 300 to 400 units that investors bought at the courthouse and are renting them right now. We’re trying to develop a system to track down that number.

What about claims that banks are holding back 10,000 to 20,000 in foreclosure homes from the market?

That’s completely bogus. The banking regulators require (that when) a residential property is foreclosed upon, it’s got to get on the market within 30 days. The only reasons for a delay have been title problems and lawsuits.

What about what the analysts say?

If you look at our short-sale inventory, the amount of property that’s available and in contract and add maybe 25 percent on top of it, those are tomorrow’s potential foreclosures. Two years ago, we were told there would be a mass increase of 40,000 to 50,000 units into our Multiple Listing Service. Guess what? They were already on the MLS as available short sales or ones under contract. Up until last year, 95 percent of those properties were reclassified as foreclosures in the Multiple Listing Service. The banks were saying here is what we’re rejecting, but we don’t have title to these properties. That’s what the shadow inventory really meant.

What are you expecting from foreclosures?

In talking to a real estate attorney, Southern Nevada appears to have gotten through the worst of the subprime loan cycle that was the beginning of the foreclosure crisis here. Those loans ceased to be underwritten in 2007, and we pretty much went through those in 2009. There’s a concern going into 2011 and 2012 about resetting loans, but they are mostly prime loans, according to some lenders, and will be resetting at a lower rate.

What else?

In November, 48 percent of the buyers were all-cash deals. We are attracting investors globally and domestically right now. There’s quite of bit Chinese investment coming here.


But the market has fallen off. Aren’t you concerned?

We started January 2009 with 24,000 listings, which is about 6,000 too many. By June 2009, that inventory dropped to 11,500 units and stayed that way until this past June. During January 2009, not only did we have the first-time homebuyers, but retirees moving here paying cash and (we had) investors. We had more than 47,000 closings on the MLS in 2009. This year (2010), we are projected to go to 43,000. I think to have 43,000, considering that we started with less than half of the inventory of 2009, really shows a very active market here. Since January 2008 when we started seeing the rebound in the number of units closing, about 20 percent of the overall inventory in the region has changed ownership. If we go over 25 percent change of ownership during 2011, I think we are going to start seeing continued overall appreciation, but much more noticeably in master-planned communities where homes have traditionally been better maintained.

So it is more about supply?

I think it’s more of the inventory.

What about 2011 with sales trending down and prices falling and the jobless rate over 14 percent?

We have the first major wave of Baby Boomers retiring. Southern Nevada is one of their top choices because there’s no state income tax here, there’s quite of bit of recreation and no longer will they have to shovel snow.

What is your prediction for 2011?

I think if we can have 36,000 to 40,000 closings, that would be a very good year. It may be down but we might start seeing a rebound in prices in certain areas — master-planned communities like Summerlin and Green Valley. They have been very good in their pricing the past two years, but have had little new construction starts. We have seen values in those areas start to rebound.

What about prices?

If you can take out the properties under $100,000 in poor condition, you will see higher median prices. Job growth is going to be key to more appreciation in this market.

Are we in a double-dip housing recession?

Probably in other parts of the country, but for Southern Nevada there’s too much demand for housing here to have a double-dip recession. There’s so much cash buying right now — 45 percent of the transactions year-to-date (2010) are cash. It is an unheard of number elsewhere in the country. Ten percent is your maximum normal purchase of homes with cash.

What’s your expectations for foreclosures in 2011?

We still think there will be a steady stream, but at a lower pace because of the increased number of transactions getting approved as short sales. There’s quite of bit of incentives for lenders to do short sales rather than foreclose.

Why? And is that good?

The lending institutions have been much better at setting up their systems and communicating with agents. It’s good because they sell for higher prices than foreclosures, and it saves on the cost of foreclosures.

I hope you found this excerpt as inspiring and informative as I have. What did you think of what Paul Bell had to say?

New Form: Energy Audit

Any deals you encounter this year, whether you are the buyer or seller, will find a new form added into your paper work. This form known as the "Energy Audit" is designed to make the buyer aware of the expected energy usage the potential investment/home uses. It must be filled out by the Seller, much like the "Seller's Real Property Disclosure". The energy audit typically costs $300 to $500 and can be waived if both the buyer and seller agree. If the seller chooses to have an energy evaluation performed by a certified inspector, the inspector will complete and sign the form. The audit is to be paid by the seller, but like all other things in the transaction- EVERYTHING IS NEGOTIABLE.

You can find more information about this form and how to fill it out at www.nvar.org

Attention Current Homeowners!

Do you currently own a home in Las Vegas? Do you feel like you are paying too much in Property Taxes due to the current economic situation we find ourselves in? If you answered yes to one, or both of these questions, I have great news! You can file an appeal for the city to review your Property taxes which can save you hundreds if not thousands of dollars! Who couldn't use an extra thousand dollars these days, right?

The cut off date for the Property Tax Appeal is January 17th. That's next MONDAY!!

For a free tax assessment, enter in your home address at http://www.valueappeal.com

You can do it yourself, which Michele Schafe assistant director of the Clark County Assessor's Office, suggests. Or you can hire a company like Value Appeal that will do it for you. Their cost is $99. More information about their services can be found at the website above.

"Property owners who believe that the market value of their property is less than the taxable value listed or believe that they were assessed differently than comparable property may contact the Assessor's Office Appraisal Division at 455-4997 for an explanation of the values. If not satisfied after speaking with the Assessor's Office, a property owner may file a petition with the County Board of Equalization for a review of the values. The petition must be filed on or before January 18, 2011. The petition forms are available in the County Assessor's Office, located at 500 S. Grand Central Parkway, second floor. The petitions will be scheduled for presentation to the County Board of Equalization during its meetings, which will be held in January and February, 2011. If further appeal is desired, a petition may be filed with the State Board of Equalization no later than March 10, 2011." copied directly from the Clark County assessor's page.

While you are at it contact your insurance rep and ask that they reduce your insurance too!

Get your Credit Repaired in as little as 90 days!

Today's topic, I'd like to discuss is credit repair. Collectively, there has been at least one time in our lives where we've missed a few payments, had a credit card cancelled or maybe even filed for bankruptcy. Nowadays these occurrences have increased and now people are finding their credit score lowered due to a short sale or foreclosure. These credit "hits" can keep you from buying a new home or from even renting a house. Don't worry! As your realtor, it isn't just my sole intention to help you buy or sell your home. I want to make sure you are taken care of long after your home is sold. I'm sure you're probably asking yourself, "how can you, a real estate agent, help me repair my credit?" Well, my answer is easy, with a credit restoration company of course!

Coldwell Banker Premier has teamed up with Certo Financial Restoration to help you get back on track and on to your new home in as little as 90 days. When you sign up with Certo Financial you'll be put in touch with a restoration associate who will provide you ways to get back on track. They'll identify inaccuracies, educate you on how credit reports work, and solutions on how to improve your score. You'll have access to your credit reports 24/7, receive a couple's discount so you can repair your credit together, and so much more!

If your thinking about foreclosing or short selling your property and want all the facts on how they will affect your credit, or if you would like more information about Certo Financial Restoration or my services. Feel free to contact me! Hope you all have a terrific day!

Happy New Year!

With the passing of each year, people are excited and energized by the promise of the New Year. It may feel hard to have the same positive outlook when it comes to real estate and the economy. But, don't let Mr. Negativity bring you down. There are positive signs of recovery brewing already! News stations across the country are reporting the lowest unemployment rate in 19 months. Sales during the holiday season, especially online, were higher than predicted. And in real estate, specifically, declining home prices look to have leveled off, interests rates still remain at record lows and New Home builders are buying up permits! In other words, it is a great time to buy! With over 16,000 homes currently for sale, there is no other time than the present to purchase your new home, or invest- because there's no way to go from here, but UP!