Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Courtesy of National Association of Realtors

Two special provisions in the present tax credit law will assist members of the military, intelligence and foreign services in taking advantage of the homebuyer tax credit, said National Association of Realtors President Charles McMillan, broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.

Armed services members, as well as intelligence service and foreign service personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, get an additional year to buy their homes, to May 1, 2011.

Another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.

First-time homebuyers who are eligible can obtain a tax credit of $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. 

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

The homebuyer tax credit was recently extended. All qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by July 1, 2010)

Courtesy of National Association of Realtors.

Real estate news and information is on the radio airwaves!  Real Estate Today, is a National Association of Realtors (NAR) produced, national radio show that debuted earlier this year on stations across the country.  The show also airs nationwide on XM and Sirius Satellite Radio, and worldwide at www.RETRadio.com – visit the site any time to listen to current or past programs.

Real Estate Today covers the benefits and challenges of homeownership, from expert advice on buying and selling, to remodeling and landscaping, to the state of the current market and home financing issues.

The show’s interactive experience offers listeners an opportunity to exchange information and learn from some of the nation’s most recognized experts on a variety of real estate related topics such as buying and selling homes, obtaining mortgages, seasonal markets, home improvements and more. Guests often include key lawmakers, NAR leadership, staging and remodeling experts, and respected members of the national media.

Hosted by award-winning radio broadcaster Gil Gross, the show offers a fast-paced format that includes the week’s top real estate news, listener call-ins, field reports and customizable segments on local market conditions.

Satellite radio subscribers can hear Real Estate Today on:
XM Satellite Radio: America’s Talk, XM Channel 158, Saturdays 5-7 p.m. EST
XM Satellite Radio: Talk Radio, XM Channel 165, Saturdays 1-3 p.m. EST
Sirius Satellite Radio: Sirius/XM Stars, Sirius Channel 102, Saturdays 6-8 a.m. and Sundays 9-11 p.m. EST

Courtesy of NAR.

In the last few years, home staging has become an increasingly popular method of preparing a home for sale. However, home staging involves far more than the cleaning and minor repairs required to put your home on the market. The process of staging a home is actually an in depth dressing of a home to make the property seem as appealing as possible to prospective buyers. Home staging professionals use a variety of methods to help homeowners sell their properties, incorporating both amenities already inside the home and a number of special products. When preparing to sell your home, you may want to think about some of the home staging methods outlined here to help you find the right buyer.

At its most simple, home staging is about setting the right mood for prospective buyers. By decorating and arranging a home’s interior to present an ideal way of life, buyers are assisted in visualizing themselves in your home. Whether you undertake the process of staging your own home or decide to consult a professional, there are a number of different “props” that may be used around the home. For example, to add a vibrant sense of life to the home, many home staging professionals recommend using different types of potted plants and arrangements of flowers and fruit. Throughout the home, they tend to utilize soft, luxurious fabrics – such as satin, lamb’s wool and silk – to create an atmosphere of comfort. This process can also extend to the exterior of the property, where patio furniture can be added in the backyard and colorful flowers or unique accessories outside the front door.Many home staging professionals come from interior design or art-related backgrounds. Hence, when working on staging a home for sale, these professionals utilize a number of visual tricks to capture the attention of potential buyers. For instance, furniture is always arranged very carefully to simulate the ideal living space. In living rooms, home staging professionals often use loveseats and ottomans in lieu of large couches to create the illusion of added space. Likewise, mirrors are often placed throughout a staged home to make the living area seem larger to potential buyers. In areas where you hope to focus a buyer’s attention – like a hand built stone fireplace or a remodeled kitchen – staging professionals can place unique artwork or accessories to catch the eye.

One of the most important steps in home staging is the exchange of your personal decorations with more neutral furnishings. Beyond replacing family pictures with more design-friendly items, a successful home staging will attempt to eliminate any idiosyncratic tastes and represent a living space that has broad appeal. Though this process may feel like a slight on your family’s home, you should hardly take offense. This commonly used tactic simply helps potential buyers view the property not as someone else’s home, but as something they can call their own.

Most real estate experts claim that home staging is especially important when the home is empty. Without any furniture or amenities, even a home for sale in the most attractive area can make potential buyers feel uncomfortable. If you are trying to sell your home and have already moved out, you may want to consider working with your agent to stage the home’s interior. With the assistance of your agent and a home staging professional, you could quickly transform a lifeless house into dream home.

In the end, home staging is about making the most of your home’s potential. If the staging of your home is completed effectively, it is also possible that your home may receive better offers from potential buyers and spend less time on the market. By minimizing the flaws of your home and making the living area seem larger, brighter and more appealing, home staging may be one of the most important steps in selling your home quickly and at the right price

Getting your home ready for sale seems easy enough.  You have taken well care of your home and given it a lot of TLC.   However, have you stopped to take a more objective look and view your home through the Buyer’s eyes?  Think about what you look for when you are house hunting.  It might surprise you. 

Below are questions to ask yourself when preparing your home for sale, to ensure it looks the best it possibly can to the buyer’s eyes.

 Exterior
• Does your yard look well maintained?
• Are the trees and bushes trimmed?
• Is your lawn mowed and edged?
• Is your lawn free of weeds?
• Are the decks and patios clean?
• Does your house need painting?
• Are there any exterior holes or cracks?
• Are your walks and porches clean and in good repair?
• Does your roof leak or sag?
• Are any shingles or tiles missing?
• Is your chimney in good shape?

 Carpeting/Walls/Ceilings
• Are your carpets clean and in good condition?
• Do your carpets need stretching?
• Are there any pet or smoking odors?
• Do your walls have any cracks or holes?
• Do your walls need painting?
• What about that wallpaper?
• Do your ceilings have any water stains, cracks or peeling?
• Do your ceilings need painting?

 Kitchen
• Are your appliances clean and in good working order?
• Are your cabinets in good condition?
• Are your countertops in good condition?
• Is your tile grout clean?
• Is your sink stained, chipped, or in need or re-calking?

Bathroom
• Do your faucets shut off completely?
• Do your sinks drain freely?
• Are your toilets in good condition?
• Are your shower doors shiny?
• Do your tubs need caulking?
• Is your floor in good condition?
• Are your vanities and mirrors in good condition?

Living Room
• Is your fireplace clean?
• Is the fireplace screen in good shape?
• Are all drapes, shutters and shades clean and working properly?
• Are any window screens bent?
• Do all the windows open and close easily?
• Are the windowsills clean?
• Are your doors in good condition?
• Do any doors sag or stick?
• Do the locks work?
• Is the paint in good condition?
• Do the doors seal tightly?

Basement/Attic
• Is your basement/attic organized?
• Are they well lit?
• Are they clean? •Are the stairs in good repair?
• Do the doors open and close easily?
• Are there any signs of insects or rodents?

Garage
• Is your garage organized?
• Is it well lit?
• Is the floor swept?
• Are there oil spots or other stains on the concrete?

You have received an offer on your home.  Now what?  When selling your home, it’s likely that your primary focus is receiving the highest price possible for your property. While this is certainly an important factor, there are other details that must be considered when you receive an official offer on your home in the form of a Real Estate Purchase Contract (REPC).

Negotiating this wordy and legally binding document can seem daunting, but understanding the information contained in the REPC will save you time, money and heartache during the process of selling your home.

• Understanding the REPC: The Real Estate Purchase Contract, also known as a Purchase and Sale Agreement, or a Real Estate Contract, is an agreement between a buyer and a seller to purchase real estate. Your first encounter with a particular purchase contract will be in the form of an offer from a potential buyer.• Considering Your Three Options: After reviewing the offer, you have three options: to accept the terms of the offer, thus entering into a contract; to change the terms of the offer in a counter-offer; or to reject the offer wholesale.

• Checking for Contingencies: After considering the price offered by the buyer, savvy sellers will then determine if the Real Estate Purchase Agreement contains any contingencies. One common possibility is that the offer to purchase your property is contingent on the sale of the buyer’s home. If the buyers’ property sells, the sale goes through. But, if it does not, the sale is off and the buyers’ deposit is usually returned.

• Structuring a Contingent Sale Offer: There are ways to structure a contingent sale offer to make it less risky for sellers. One way is to include a release clause in the contract, which allows sellers to continue marketing their home in the hopes of finding a better offer. If such an offer comes along, the sellers notify the buyers that they must remove the contingency by a certain date and show that they are able to close. Otherwise, they must withdraw from the contract. The sellers are then free to proceed with the other offer.

• Financing Red Flags: Another red flag to watch for is a request by the buyer for excessive time to secure financing. This is a reality for many first-time home buyers or even veteran buyers whose credit is spread thin. If you’re not comfortable with the extended time frame, you can request that the buyer provide you with proof of loan application and/or a letter of loan qualification by a certain date. A well-priced offer can also seem less appealing if the seller offers a low earnest money deposit or asks you to pay the closing costs. Feel free to counter any elements of the offer that don’t sit well with you.

• Checking What’s Required of You: Don’t forget to take note of your requirements in the offer. Some buyers will include a clause that penalizes sellers who don’t move from the property by a specific date. Be confident that you can vacate your home by the date requested before accepting the offer. On the other hand, you may want the closing process to move swiftly. Even if the offered price is less than you wanted, a buyer who can close and take possession quickly can counterbalance the lower price.

• Agreeing on What’s Included With the Sale: It is generally accepted that all attached fixtures and appliances will be sold with your home, but the buyer must list these carefully in the offer to purchase. Such appliances and fixtures can include ovens and dishwashers, window treatments, light fixtures, fireplace mantels and even landscaping features like trees and flowers. Additionally, buyers can request the inclusion of certain furnishings and personal property. If you have items that you do not wish to include when selling your home-whether the washer/dryer, an heirloom rosebush, or all your furniture-it’s a good idea to let your real estate agent know from the get-go, so he or she can help mitigate the expectations of buyers.

The bottom line? It pays to spend 20 minutes reviewing a blank real estate purchase contract as soon as you put your house on the market. That way, when you receive an offer, you’ll be ready to break it down into its specifics, and respond confidently.

Every seller wants her home to sell quickly and bring top dollar. While there are some factors you can’t control, like neighborhood popularity and market fluctuations, you can help your house put on its best face for showings and open houses. If you want to sell your home, here are some tips to prepare your house and turn it into an irresistible home.

Before any physical preparations, you first need to prepare yourself emotionally. Begin to dissociate yourself, and decide to let go of your attachments to the home. From now on, this is a house you really want to sell, not your own beloved home.It’s important that potential buyers can imagine calling your house “home,” too. Make it easier for them by de-personalizing the space. Remove personal photos and family heirlooms. Buyers should be allowed to connect with the space, and to imagine displaying their own photos and artifacts. You want buyers to think, “I could see myself living here.”

It’s no surprise that you’ll want a tidy house for a showing, but what about those hidden areas of the home? Buyers need to look everywhere; they will open cupboards and peer into closets. So, make sure storage areas are organized, and that coats hang neatly in hall closets. Stack dishes and re-arrange kitchen drawers. Tidy other stored items, like books, games or CD’s. Bathrooms and kitchens should be especially clean, with counters clear of miscellaneous personal items and knick-knacks. Don’t forget the outside of the home. Give your house curb appeal by trimming the lawn, sweeping the front walk, and artfully arranging outdoor furniture.

Now is the time to take care of those bothersome little repairs you’ve been putting off for years. Buyers will notice the flaws that you’ve grown accustomed to. From replacing light bulbs, to cleaning scuff marks off walls, to replacing missing tiles in the bathroom, or fixing the broken screen door, take care to repair all the minor problems with the house before the open house.

While you may have long determined which aspects of your home you love, having a fresh set of eyes scrutinize its best features is a smart idea. If you want to sell your home, take the time to walk through it methodically with your real estate agent. Together you can point out which features of the home should be accentuated…and which elements should be downplayed. Does your home have a wonderful view? Draw attention to it by sprucing up window treatments and arranging furniture to draw the eye toward the windows. Is the kitchen small and cramped? Make the most of it by lighting the space well, clearing counters of debris and displaying a vase of fresh flowers.

If you want to take window coverings, built-in appliances or fixtures with you when you sell your home, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, he won’t want it. Once you tell a buyer he can’t have an item, he may suddenly covet it and it could blow your deal. Pack those items and replace them, if necessary.

Finally, when it comes time for the open house, try to avoid being home. Not only does it make buyers uncomfortable, but it can interfere with your real estate agent’s sales process. Whether you head to the office or just out for a walk with the dog, you can rest assured that in your absence, your house will look enticing to its new owners!

There’s no doubt that a buyer’s market can be challenging for sellers. Yet it does not mean that sellers cannot enter the market – or that they cannot garner a fair price for their homes. Home sales in a buyer’s market may take longer. But a little creativity can go a long way toward helping sellers move homes, without having to significantly drop the price. 

Following are suggestions for sellers who want to speed the process:

Price Your Home According to the Current Market. Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home. Remember that in this market, your sales associate may encourage a list price in accordance with others currently on the market, rather than those previously sold.

Be Realistic About Appreciation. Since the housing market began to slow significantly in late 2007, home prices have fallen all over the country. Yet understanding trends in your specific market is critical – as not all areas have experienced the same drops. Some regions of the country have remained more steady relative to prices, and are even back to experiencing modest appreciations. And if you bought your home many years ago, the gains you made in the decades before the downturn may still be far more than recent drops. So speak with your real estate professional to get a realistic view on how your home has gained or lost, relative to its value and potential price.

Make Your Home More Marketable. When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller.

Conduct a Full Home Inspection. If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each.

Don’t Worry. Properly priced homes that stand out from the competition are likely to sell.

Courtesy of National Association of Realtors
WASHINGTON, May 12, 2009

Improving the availability of credit and access to capital are essential to recovery in the real estate market. Addressing these challenges was the focus of the “Financing Real Estate for Tomorrow” session, part of the National Association of Realtors®’ daylong “Real Estate Summit: Advancing the U.S. Economy.”

“As the leading advocate for housing issues and homeownership, NAR knows that real estate is the road to economic recovery,” said NAR President-Elect Vicki Cox Golder. “It is vital for the health of both the residential and commercial real estate markets to improve the flow of credit, and we look forward to identifying paths toward a successful resolution of this current credit crisis.”

In his keynote address to the attendees, former Federal Reserve Board Chairman Alan Greenspan identified two major problems confronting a housing recovery and ultimately an economic recovery in the near-term – falling home prices and increased inventory. Falling home prices decrease homeowners’ equity, and when mortgage debt exceeds equity, defaults increase. To exacerbate the problem, increased inventory of unsold single-family homes continues to depress prices.

Greenspan’s remarks were followed by a panel discussion moderated by Jane Bryant Quinn, contributing editor for Newsweek. Members of the panel included Bruce Katz, vice president, Brookings Institution; Conrad Egan, president and CEO, National Housing Conference; Phil Bracken, executive vice president, Wells Fargo Home Mortgage; and Jeff DeBoer, president and CEO, The Real Estate Roundtable.

Panel participants emphasized the need to stabilize and provide liquidity to financing in both the residential and commercial real estate markets. Jerry Howard, president and chief executive officer of the National Association of Home Builders, reported seeing a significant reduction of available credit in land acquisition, development and construction. “There are no new homes being constructed right now,” said Howard. “Funding is vital to the health of the American housing market.”

“A sound and functioning commercial and multifamily real estate sector is critical to our country’s economic growth and development,” said NAR Treasurer Jim Helsel. “This sector now faces its worst liquidity challenge since the Great Depression, and we must address it to stem the threat of rising delinquencies and foreclosures.”

Michael Calhoun, president, Center for Responsible Lending, observed that restrictive lending isn’t the only challenge. “The market is being flooded with foreclosures, which is creating problems on the supply side,” said Calhoun. “We must address this excess supply before the real estate market can recover.”

Egan emphasized the fundamental importance of strong credit scores and personal savings on an individual level. “We need to get back to basics,” he said.

After what many residents around town would call a relatively mild winter season, it appears that spring has finally arrived.  As locals will tell you (locals being anyone living here for more than 20 years) spring means the daffodils begin to bloom, the mornings are cool, the afternoons are sunny and beautiful, and the evenings require a sweater.  And, spring really isn’t spring without the last snow storm.  We had that recently so, it is official, spring is here!   This means the town is gearing up for lots of activities.  The golf courses in Incline Village are scheduled to open (The Championship Course opens May 20 and the Mountain Course opens May 15 weather permitting) with the driving range and practice area at the Championship Course already open as of April 24.  The Shakespeare Festival schedule is out with Measure for Measure and Much Ado About Nothing the productions for the 2009 season.  This is a big event.  For those from Los Angeles, it is akin to going to the Hollywood Bowl.  Also scheduled as part of the Festival is the Monday Night Music Program at Sand Harbor: The Urban Village Music Series.  The music program features a variety of artists from around the world and cover a wide range of styles from Afro-Cuban to Broadway. 

Even residents around town are getting into the spirit. Some have put their winter cars away and are out sporting what is called the “summer car”.  It is easy to see. . .perfectly detailed convertibles, mini coups, Jags, Bentleys, Mustangs and more.  Heavy down jackets, snow boots and wool caps are replaced with short sleeve shirts and blouses, sandals and visors.  Yes, spring is here with summer just around the corner.

Just in time for spring, road work is scheduled on Highway 28 at Sand Harbor. May 3 – May 22 from 7:00 pm Sundays through 5:00 am Fridays State Route 28 from U.S. 50 to San Harbor will be closed to traffic (except emergency vehicles). The road will be open with no delays on Friday, Saturday and Sunday.

May 22 – July 2 traffic will be reduced to one lane with a pilot car from Sand Harbot to East Lakeshore Boulevard. Motorists can expect half-hour delays. The road will be open with no delays on Friday, Saturday and Sunday.

Check the Schwartz-Stanton Group (SSG) blog from time to time as more info on events and activities will be on the blog as well as updates on the real estate market for those looking for that Tahoe home.  Visit www.ssgtahoe.com for more.