Where Properties Sell the Fastest, Slowest

Nearly 50 percent of properties nationwide were on the market for less than a month before selling, according to the June 2016 REALTORS® Confidence Index Survey Report.

Only 11 percent of properties were on the market for six months or longer. Homes are tending to sell the fastest in the Midwest and Western regions of the U.S.

In June, properties typically were on the market for 34 days. Short sales were on the market the longest time at 156 days. On the other hand, foreclosed properties tended to stay on the market for about 49 days. Non-distressed properties had the shortest time on the market, averaging 30 days.

View the chart below to see the averages for your state.


Source: “In What States Did Properties Sell Quickly in April-June 2016?” National Association of REALTORS® Economists’ Outlook blog (Aug. 11, 2016)

These 10 Expenses Are Why Realtors Don’t Make The Kind Of Money You Think They Do

People often think when I tell them I am a Realtor that the money is rolling in and I do little work. The fact is that the opposite is usually true. Real estate IS NOT an easy business despite what many think, and the money, well, it can be relatively good, it's not just rolling in.



Much of the general public is oblivious to all the costs associated with being a real estate agent. They mistakenly believe we all drive Benz’s and are grossly overpaid. Nothing could be further from the truth. Carrying a real estate license comes with great expense, and we have to charge our clients accordingly to cover the costs of doing business.

According to Payscale.com, the median yearly salary for real estate agents is $44,488. Most agents don’t even sell five homes per year. With that in mind, there’s a myriad of monthly costs that must be covered, whether we sell a home that month or not.

To demonstrate that it’s not all fancy cars and mansions in the lives of agents, I’ve listed 10 things real estate agents blow their commission checks on which the public has no idea about.

1. Lockboxes:
These little guys, who hang on your door when your home is for sale, are not cheap. Think about it, these are boxes that are destruction proof and operate by satellite. Not to even mention the expensive supra key that you have to buy and have a subscription to, in order to unlock the boxes. Agents who have 10+ listings have thousands of dollars in lockboxes alone.

2. Signs:
An agent can’t sell a home without a sign. Signs aren’t free. Much like lockboxes, when an agent has dozens of signs, they have lots of money invested. The design and shipping alone is hundreds of dollars. Agents use yard signs, open house signs, location signs, sold signs, pending signs, and in the HOA controlled neighborhoods, designer signs. It adds up very quickly.

3. NAR Dues:
The National Association of REALTORS® (NAR) is America’s largest trade association, representing over 1 million members involved in residential and commercial real estate. Not all real estate agents opt to join NAR and become REALTORS®, but the vast majority do. And guess what—NAR wants its money every month. And they don’t take IOUs.

4. MLS Dues:
On top of belonging to NAR, you have to pay monthly to have access to the MLS. The MLS is the source that lists all the homes for sale. Trulia and Zillow don’t have near as much data as the MLS. The MLS charges a hefty monthly fee to list and sell the agents’ homes. It’s very much a necessary tool in the agent toolbox.

5. Marketing Materials:
The agent’s main job is to market. They market properties and themselves. Between websites, business cards, flyers, and belonging to sites like Zillow and Trulia, the average agent will spend almost $1,000/month on marketing materials. Some spend $10,000+ in marketing each month. It’s not cheap to spread the word about a multi hundred thousand dollar asset for sale.

6. Advertising:
Paid ads aren’t cheap. Whether it’s on Facebook, a billboard, or the baby seat in a shopping cart, ads cost a lot of money. They’re the lifeblood of a good agent. That’s how they sell your home—by advertising it.

7. Website Hosting:
If you’re going to sell real estate in this digital age, you need a website. You’ve got to have a place for your prospects and clients to come and search for homes. That website has to feed into the MLS (another fee to do that), and the website has to be responsive. The average custom website costs $5,000 and comes with a monthly charge of $200. You starting to see the pattern here?

8. Open Houses:
You may think that we just sit in your home using up your free wifi, but that’s not the case. Depending on the agent, there’s food involved as well as balloons, signs, ads, and staging—all designed to make the place look and feel like a million bucks. I’ve even paid to have someone mow the yard and trim the bushes before an open house. I didn’t have time to wait on the owner to take action.

9. Closing Gifts:
In most markets its customary (but not necessary) for agents to give a gift to the clients after doing business with them. What most don’t know is that they usually send one to the title company and the loan officer as well. When everyone puts in hard work, the agent wants to reward them so they continue to do so. You may view it as frivolous, but you can never be too nice to title companies and banks. When you need a favor, gifts go a long way.

10. Office Space (often included in an agent’s commission split—read more here)
Most people think that agents have a job with an office. They don’t realize that the broker charges for the office space and the furniture that occupies it. Just know this: Nothing is free in the real estate game. Not even a place to do your work. Agents are nickled and dimed to death. And as you know, commercial office space isn’t cheap.

So next time you’re thinking about hiring an agent, and you think their fees are a little high, think of this list (which is just a fraction of what’s really paid for). They’re all things to facilitate properties getting moved faster and for higher dollar amounts.

It’s not easy, cheap or always fun being a real estate agent, but the smile we see on our clients’ faces when they buy a new home or profit from selling their old one, makes it 100% worth it.


Source: LighterSide of Real Estate, Ryan Stewman
http://lightersideofrealestate.com/real-estate-life/agent-life/10-expenses-realtors-dont-make-kind-money-think

U.S. Supreme Court leaves San Jose housing law in place

The City of San Jose has a requirement in which builders of new construction have to allocated 15% of their units for below market rates - for low income buyers. If the builder doesn't want to allocate some of their units for low income buyers, then the builder has a fee, which works out to be over $100K. Naturally builders/developers are upset about this and took the issue to the California Supreme Court which upheld San Jose's law, so then it went to the US Supreme Court but they didn't want to hear the case.

This issue is kind of a big deal. It may affect the future of the real estate market here in numerous ways that only the time will tell. Great article below from the San Jose Mercury news.



The U.S. Supreme Court on Monday turned away a legal challenge to a San Jose affordable housing law, leaving intact the city's effort to address the exploding cost of housing in Silicon Valley.

The justices declined to hear the building industry's appeal of a ruling last year by the California Supreme Court upholding San Jose's law. In a brief opinion, Justice Clarence Thomas observed that the law on the issue remains "unsettled" and needs Supreme Court guidance, but agreed with the vote to reject the appeal because the San Jose case had technical legal problems that may prevent reaching the core questions.

In its appeal, the building industry argued that San Jose's law and others like it across California violate federal constitutional protections against the "taking" of private property. The Pacific Legal Foundation, a conservative Sacramento group representing the industry, pressed the fight to the nation's high court.

"The rights of all property owners were dealt a blow today, as San Jose's punitive treatment of homebuilders was allowed to stand," said foundation attorney Brian Hodges. "It is disappointing that the U.S. Supreme Court has chosen not to review the California Supreme Court's decision to uphold San Jose's inclusionary building mandates."

San Jose city officials welcomed the conclusion of the legal fight.

"(The) Supreme Court ruling could not have come any sooner for the thousands of families in our community who are struggling to keep up with skyrocketing rents, and we look forward to implementing this policy as quickly as possible," San Jose Mayor Sam Liccardo said.

The state Supreme Court, in a unanimous ruling in June written by Chief Justice Tani Cantil-Sakauye, determined that San Jose's affordable housing program is within the law, observing: "These problems have become more and more severe and have reached what may be described as epic proportions in many of the state's localities."

The case involved a legal challenge to a San Jose law that would require housing developers to include affordable, below-market priced units for low-income buyers on any new projects within the city. The building industry sued to block enforcement of the so-called "inclusionary housing" law several years ago.

The League of California Cities and California State Association of Counties, which backed San Jose in the case, estimate about 170 local governments have put versions of the law in place to deal with the state's shortage of affordable housing, considered an acute problem in Silicon Valley and around the Bay Area.

The state building industry, backed by groups such as the California Association of Realtors, considers such legislation a strong-arm tactic that in the long run will drive up already exorbitant housing prices. They maintain such laws will force developers to simply pass along the cost of subsidizing below-market units to new homebuyers.

In particular, the industry argues the law is an unconstitutional "taking" of property and that San Jose has not established a connection between the building of new housing and the affordable housing problem. Cities, they argue, make that case in forcing developers to pay fees to cover the impact of new housing developments on things such as local schools and parks, but haven't done so for affordable housing.

San Jose's law would require developers to offer 15 percent of units in new projects of 20 or more units at below-market rates. Developers could opt out of building affordable units by paying a fee, which the housing industry estimates could run about $122,000 per house.

Housing advocates warned of dire consequences if the Supreme Court invalidated San Jose's affordable housing regulation. California has been considered a model for such laws, designed not only to provide more low-income housing but also to get it built in a larger cross-section of neighborhoods.

Source: Mercury News, Howard Mintz
http://www.mercurynews.com/real-estate-news/crime-courts/ci_29576352/u-s-supreme-court-leaves-san-jose-housing.html

REALTORS®' Top Concerns Heading into 2016

REALTORS®' Top Concerns Heading into 2016

An improving job market, still-low interest rates, and recent measures to make credit more accessible are all offering help to the housing market’s recovery, but several challenges prompting closing delays remain.

The latest REALTORS® Confidence Index conducted in November reveals some of the top concerns on real estate professionals' minds. The survey is based on more than 2,500 responses from members about local market conditions.

Here are some of the most common concerns that REALTORS® raised in the latest survey:

1. New mortgage disclosure rules: The implementation of the TILA/RESPA Integrated Disclosure (TRID) regulations on Oct. 3 has been delaying closings and having an impact on sales, according to members. About 47 percent of respondents reported longer closing times compared to a year ago, up from 37 percent in the October 2015 survey.  It typically took another 40 days to close a sale, up from 35 days in July 2015.

2. Condo financing: REALTORS® continued to report difficulty in obtaining financing for condominium unit purchases because many condominiums are not FHA or GSE eligible. Read more.

3. Tight inventories: A smaller number of homes for sale across the country are limiting choices for buyers and pushing prices up, decreasing housing affordability. REALTORS® particularly reported low inventory of properties in the lower price range and for those that are move-in ready.

4. Tight credit: Stringent credit standards continue to affect sales, particularly for first-time home buyers who are still struggling to qualify for financing, according to the REALTORS® surveyed. “Credit profiles that fail to meet tighter underwriting standards are conditions that continue to work against first-time home buyers,” according to the report.

5. Appraisal issues: “Late” and “low” appraisal valuations was also cited by REALTORS® as being problematic in transactions.

Source: National Association of REALTORS
http://www.realtor.org/reports/realtors-confidence-index

Realtor Saftey Month

One year ago, a fellow Realtor lost her life by just doing her job of showing properties. Ever since then there has been greater awareness on Realtor safety which I whole heatedly agree with. During my career I've had my fair share of sketchy characters to deal with at open houses and while showing houses, and thankfully nothing happened. I sincerely hope that with this awareness campaign that is underway will stop any other Realtors from becoming victims in the future.



It’s been one year since real estate agent Beverly Carter went missing and was later found murdered after showing a vacant home to a prospective buyer in the rural area of Scott, Ark. Since that dark day on Sept. 25, 2014, Brenda Rhoads, Carter’s friend and managing broker at Crye-Leike, REALTORS®, in North Little Rock, Ark., has been working hard to promote safety awareness in the real estate industry.

“I don’t want Beverly’s death to be in vain,” she says. “If there’s just one person who comes out of this and realizes how important safety is, that’s the most important thing. Beverly would have wanted that.”

A husband and wife have been charged with Carter’s murder. The wife, Crystal Lowery, was sentenced to 30 years in a plea bargain, and the husband, Arron Lewis, will stand trial on charges of capital murder, kidnapping, and robbery in January.

National Association of REALTORS® President Chris Polychron has responded to Carter’s murder — which took place in his home state — by making safety a major priority during his tenure. Rhoads and Polychron participated in a safety discussion, along with broker and chairman-elect of the Texas Association of REALTORS® Leslie Rouda Smith, during NAR’s Broker Summit in Seattle in August.

During the discussion, three points were reinforced:

Know whom you’re dealing with. Brokers are encouraged to create a policy that requires all new clients to come into the office before being shown a property. At the office, photocopies of the person’s ID should be taken and a showing itinerary shared with office personnel.
Use a buddy system. A broker could also encourage agents to pair up for open houses or showings by offering sign-up sheets or opportunities to coordinate during sales meetings.
Be aware of your surroundings. Agents should understand the layout of a property before showings or open houses. Counsel them to put the phone away while walking, stay alert, and look for signs of forced entry before entering a home. Crye-Leike, REALTORS®, has promoted a two-second rule: Take two seconds to look around when you arrive at your destination, after you step out of your car, as you walk toward the home or property, at the door, and as soon as you enter the property.
Carter’s murder has motivated other brokers throughout the country to make safety a part of the industry culture.

Sam DeBord, managing broker of Seattle Homes Group with Coldwell Banker Danforth, says brokers have the power to minimize fears agents might have over losing a client by creating an office policy that makes it mandatory to check clients’ IDs.

“It seems like we hear almost weekly now about [another] assault against an agent,” DeBord says. “I don’t want to be the person who gets that call to say one of your agents went out to meet someone you sent to them and something happened to them.”

Source: Realtor Mag, Erica Christoffer
http://realtormag.realtor.org/for-brokers/network/article/2015/09/making-real-estate-safer-industry

Half Of U.S. Homes Now Selling In 40 Days Or Fewer, Says National Association Of REALTORS®

HOME SALES HIT 22-MONTH BEST

Home sales volume continues to impress nationwide.

According to the National Association of REALTORS®, 5.35 million homes sold in May 2015 on a seasonally-adjusted, annualized basis, continuing this year's strong start for the housing market.

Current mortgage rates, which have been low since October of last year, are helping to boost sales.

The typical prime mortgage borrower now gets access to rates near four percent; with lower rates available to borrowers using FHA loan and VA loans.

Furthermore, with an abundance of low- and no-downpayment mortgage programs available to first-time and repeat home buyers, the pool of potential buyers is as big as its been all decade. 32% of last month's buyers were first-timers.

It's all combining to help homes sell faster.

The median Days on Market for U.S. homes reached 40 days in May, which marks a 42% reduction from the start of the year.

With 30-year mortgage rates below their year-ago levels, it's a terrific time to be a home buyer. Mortgage rates are low and housing payments are as affordable as they've been during any time in the last two years.

Click to see today's rates.

EXISTING HOME SALES: 5.35 MILLION HOMES SOLD ANNUALLY

Each month, the National Association of REALTORS® publishes its Existing Home Sales report, a tally of sold homes which have been previously-occupied or are otherwise not "new construction"

The trade group's May 2015 report showed 5.35 million homes sold on a seasonally-adjusted annualized basis, a five percent increase from the month prior and a 9% jump from one year ago.

Also, there are now just 2.3 million homes for sale nationwide, a figure which puts into numbers what today's active buyers have already known for months -- the market for right-priced homes is highly competitive.

In May, Median Days on Market for an MLS-listed home was 40 days. This means that half of all homes sold were listed for forty days or fewer, which is the second-highest percentage in nearly two years.

Furthermore, 45% of homes sold in May sold within one month and many more were sold before ever getting listed at all, a sale-type known within real estate circles as "pocket listings".

Multiple-offer situations are common and home prices are climbing, as a result.

There are a number of reasons why today's homes may be selling more quickly.

One reason is seasonal. There are often more homes sold between March and September each year as compared to other months, and, after a particular frigid winter, pent-up demand may have spiked last month's data.

Median Days on Market showed a similar drop last spring; and the spring before that.

Another reason why homes may be selling more quickly is because today's mortgage rates continue to troll near four percent even as rents are rising in many U.S. markets.

Low mortgage rates have boosted buyer purchasing power approximately 10% from the start of last year. If you could afford a home for $300,000 last year, you can purchase a home for $330,000 this year with the same monthly payment.

Click to see today's rates.

45% OF HOMES SOLD WITHIN A MONTH

The May Existing Home Sales report showed homes selling more quickly as compared to earlier in the year. In January, the typical home for sale went to contract within 69 days of listing on the MLS.

Today, homes sell in 40 days or fewer as demand outpaces supply in many U.S. markets.

Median Days On Market is not a perfect housing market metric, but it can highlight the relative ease with which a seller can sell a home as well as the relative difficulty a buyer may face in purchasing one.

Days on Market can drop for a number of reasons. One reason is a general improvement in the U.S. economy. When the economy is performing well, consumers are more likely to take risks, which including moving to buy a home.

Another catalyst for a reduction in Days on Market is when mortgage rates remain low during period of rising rents; the answer to the question "Should I buy or should I rent" can change quickly as market conditions move.

However, a third, less obvious reason why Days on Market may drop is that home sellers may be feeling less confident in their ability to find a buyer.

According to a Fannie Mae consumer attitudes survey, 49% of consumers think now "is a good time to sell" a home -- a 9-tick increase from February and the highest recorded measure since Fannie Mae began tracking such data.

When sellers start believing that "it's a good time to sell", it's because they believe housing is reaching a peak, or falling from one.

Falling confidence suggests that sellers are concerned about their future ability to get top-dollar which can result in home getting listed for cheaper prices. Homes are inclined to sell more quickly when sellers get nervous; and, may go under contract at the "the first reasonable offer".

Strangely, though, NAR's Existing Home Sales reports suggests that sellers may be misguiding; that the market is particularly strong. There is just a 5.1-month housing supply and supplies of less than six month are said to favor sellers over buyers in negotiations.

Home supply hasn't been below six months going on three years. The market favors today's sellers, but sellers aren't necessarily believing it.

Source: The Mortgage Reports, Dan Green
http://themortgagereports.com/17775/national-association-realtors-nar-median-days-existing-home-sales

The biggest threat to Realtors

The National Association of Realtors (NAR) commissioned a new report called the D.A.N.G.E.R. report. Basically, the report details different threats that are out there that can threaten agents, brokers, real estate associations and the MLS. It's a very informative and useful report. Anyhow, the number 1 threat facing today's realtors is. . . . . . . . other realtors.

Yes, all those untrained, unethical, shady and part time agents are threatening the credibility of our profession. And when the public has no confidence in a group or profession, they will take their dollars elsewhere.

In my time as an agent here in the silicon valley, I've had to deal with my share of incompetent, lazy, unethical and shady operators. Most agents that I have done business with aren't like that, but some are. Many don't want to invest the time and money into getting additional training like I have and some just want to get that commission even if it means being fraudulent. And according to the DANGER report, agents such as this are threatening the credibility of our industry to they point where we viewed in the same light as used car salesmen.

'Marginal Agents' Biggest Threat to Industry

NAR to Congress: Ease Up on Mortgage Credit

Everyone who calls themselves a REALTOR, such as myself, does so because they are a member of the National Association of Realtors. They are a national advocacy group for those of us in the real estate profession. Not only are they looking out for the best interest of Realtors like me, but also for the average home buyer and seller. NAR testified before the U.S. Senate Banking, Housing and Urban Affairs Committee yesterday to urge our legislators to have banks ease underwriting requirements for borrowers to make it easier to get a loan. Yes, on one hand we want tougher standards on banks so we don't have a repeat of the 2008 housing collapse where by banks were issues out loans to unqualified borrowers, BUT on the other hand, we don't want banks to go too far. If the banks make it too burdensome for buyers to obtain financing, then that will impact the market negatively - something nobody wants to see.



NAR to Congress: Ease Up on Mortgage Credit

Credit-worthy borrowers are being denied a chance at home ownership due to "unnecessary regulatory burdens" that are preventing them from qualifying for a mortgage, National Association of REALTORS® leaders testified Thursday before the U.S. Senate Banking, Housing and Urban Affairs Committee.

"REALTORS® support strong underwriting standards to protect consumers from the risky lending practices of the past, but we are concerned that the pendulum has swung too far," NAR President Chris Polychron testified. "In some cases, well-intentioned, but over-corrective policies are severely hampering the ability of millions of qualified buyers to purchase a home. I believe, and our members believe, that we have yet to strike the right balance between regulation and opportunity."

Mortgage rates continue to hover near historical lows, yet the number of first-time buyers entering the market is at its lowest point since 1987. The number of homes purchased annually is less than 70 percent of what was purchased prior to the real estate boom and the subsequent collapse, NAR states.

"No one wants to see a return to the unscrupulous, predatory lending practices that caused the Great Recession, but some modifications to existing regulations would help restore the home ownership rate to pre-bubble levels," Polychron said.

Polychron proposed adjustments to several regulations that he said would still ensure safe access to mortgage credit. For example, he urged changes to restrictive condominium polices from the Federal Housing Administration and the Government-Sponsored Enterprises, which he says are limiting opportunities for buyers to own condos. Condos often represent the most affordable buying options for first-time home buyers and minorities.

Polychron also urged the Consumer Financial Protection Bureau to conduct more lending from responsible community banks and provide more flexibility for lending in small specialty markets, such as rural communities.

Polychron voiced the association's support of the Mortgage Choice Act, bipartisan legislation that redefines a provision in the Ability-to-Repay rules that limits mortgage fees and points to 3 percent in order for home loans to be considered "Qualified Mortgages." Polychron urged the Senate to approve the legislation, following the House of Representatives' passage of the act earlier this week.

Currently, the rules "unfairly prevent consumers from obtaining Qualified Mortgage loans through certain affiliated lenders whose joint venture services are collectively counted against the cap, while individual services from large retail financial institutions are each capped separately," according to NAR's testimony. "The discrimination in the calculation of fees and points is being felt by consumers, including lower-end buyers, who are seeing reduced choices and added obstacles in their transactions."



Source: National Association of Realtors via RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/04/17/nar-congress-ease-up-mortgage-credit?om_rid=AAFmZk&om_mid=_BVMVEuB9A4eKHv&om_ntype=RMODaily

Home Staging Can Help Sell Home for More, Realtors® Say

Home Staging Can Help Sell Home for More, Realtors® Say


Most homeowners know it is important to keep a home clean, bright and free from clutter while it is on the market for sale. But sometimes, Realtors® say, taking the extra step to stage a home can make a difference in how a buyer values it and the price a seller might get for it, according to the National Association of Realtors® 2015 Profile of Home Staging.

“Realtors® know how important it is to have a home in the best shape possible when showing it to prospective buyers,” said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Arkansas. “At a minimum, homeowners should conduct a thorough cleaning, haul out clutter, make sure the home is well-lit and fix any major aesthetic issues. Another option is staging a home, which Realtors® often suggest to sellers to help prospective buyers better visualize themselves in the home and could modestly increase the home’s value for both the buyer and seller.”

The report, the first of its kind from NAR, found that 49 percent of surveyed Realtors® who work with buyers believe staging usually has an effect on the buyer’s view of the home. Another 47 percent believe that staging only sometimes has an impact on a buyer’s view of the home only. Only 4 percent of Realtors® said staging has no impact on buyer perceptions.

Realtors® on the buyer side believe that staging makes an impact in several ways; 81 percent said staging helps buyers visualize the property as a future home, while 46 percent said it makes prospective buyers more willing to walk through a home they saw online. Forty-five percent said a home decorated to a buyer’s tastes positively impacts its value; however, 10 percent of Realtors® said a home decorated against a buyer’s tastes could negatively impact the home’s value.

From the seller side, a majority of Realtors® utilize staging as a tool in at least some instances. Just over a third of Realtors® (34 percent) utilize staging on all homes, while 13 percent tend to stage only those homes difficult to sell, and another 4 percent will do so only for higher priced homes. The median cost spent on staging a home is $675. Sixty-two percent of Realtors® representing sellers say they offer home staging service to sellers, while 39 percent say the seller pays before listing the home.

Realtors® representing both the buyer and seller agreed on two major points in the report—which rooms should be staged and the change in dollar value a buyer is willing to offer for a staged home compared to a similar not-staged home. Realtors® ranked the living room as the number one room to stage, followed by a kitchen. Rounding out the top five rooms were the master bedroom, dining room and the bathroom.

Realtors® believe that buyers most often offer a 1 to 5 percent increase on the value of a staged home (37 percent from Realtors® representing sellers and 32 percent from Realtors® representing buyers). Additionally, 22 percent of Realtors® representing sellers and 16 percent of Realtors® representing buyers said the increase is closer to 6 to 10 percent.

 “Working with a Realtor® gives buyers, sellers and investors the advantage they need to succeed in today’s market, as they know what buyers want and how to best market and stage a home for sale,” Polychron said. “While many factors play into what a home is worth and what buyers are willing to pay for it, staging is an excellent tool that can be used to give a home a little extra push for sellers. Staging isn’t used by every Realtor® in every situation, but the impact it may have and the value it can bring is clear to both home buyers and sellers.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Source: National Association of Realtors, Maggie Kasperski
http://www.realtor.org/news-releases/2015/01/home-staging-can-help-sell-home-for-more-realtors-say#sf7138486

Realtors® Applaud FAA's Proposed Rule to Allow Commercial Drone Use for Real Estate

I am starting to see more and more listings with nice, clear aerial photos, particularly on the higher end listings $1M+. In fact, just the other day I saw a listing for a $2.4M listing in the Silver Creek area of Evergreen in San Jose that had an aerial photo that was part of the listing. There's a growing number of professional property photographers that are offering the service to Realtors and home sellers who want it. Personally, I think having a few nice aerial photos of a larger property can sort of go a long ways with selling a home. Now it seems, the FAA has loosened the rules a bit taking us one step closer to widespread drone use in real estate and elsewhere. So next time you look up and you hear something buzzing overhead, it could be neighbors selling their house or someone taking pictures of you sunbathing in your bikini in the backyard! LOL!

Realtors® Applaud FAA's Proposed Rule to Allow Commercial Drone Use for Real Estate

Used McMansions are selling briskly

According to new data, McMansion's are selling like hotcakes. McMansions are homes in the $750K to $1M price range (though that price range is higher here in the valley), are really big compared to lot they are built on, and doesn't really fit for the neighborhood it is built in. According to the article from Market Watch, existing home sales in January were basically flat, but the higher end homes, the McMansions have seen a 13% increase in sales.

Usually these are homes someone built in an existing neighborhood of older, smaller, average homes. It's like the one newer, nice house some built in the neighborhood. An example of that here in the Silicon Valley is the Ranco Rinconada area of Cupertino (the area west of Lawrence Expressway, East of Miller Ave, South of Stevens Creek Blvd, North of Bollinger Rd). In this area you will find, if I may call it so, lower cost homes built in the 1950s of Stern and Price design. Dotted among these lower end homes (which are pretty high value at an average sales price of $1.5M since it is Cupertino after all) are McMansions. The reason why home buyers and investors have been flocking to the area over the years and buying homes there is because they sit on HUGE lots. I'm talking 7,000 Sq. Ft on average, some lots as big 11,000 Sq. Ft. So with those ginormous lots, investors and some home buyers are tearing down the smaller, older existing home and building giant home new homes. They are typically two stories, with the newer amenities, allot more square feet inside and taking up more of the lot they are built on. The house definitely doesn't match compared to the neighborhood it sits in. Anyhow, whoever coined the term McMansions might have been thinking about Rancho Rinconada.

McMansions Remain a Hot Buy
Used McMansions are selling briskly

Push to Renew Mortgage Debt Forgiveness Gains Steam in Senate

When the real estate market here in the Silicon Valley first tanked in 2008 through about 2012 or so a large percentage of my business was short sales and bank owned properties (REO). It wasn't a hot seller's market like it is now and there were more than a few home owners who were under water (behind on their mortgage and/or owe more than the home is worth). It was the business back then and I had to adapt like many Realtors did. These short sales were made possible, in part, because of the Mortgage Forgiveness Tax Relief Act. Basically, a simple explanation for what the this act is was legislation passed by congress that made it so the home owner who has his/her mortgage debt forgiven by the bank, usually during a short sale, they would have No tax liability on the money that was forgiven - because forgiven debt is taxable. 

When the Mortgage Forgiveness Tax Relief Act was passed, congress put a "sunset period" on the legislation whereby the legislation would expire if not renewed by congress. The act has been extended a few times, but now with the housing market being relatively good right now (at least for sellers), two senators are working to renew the act - hopefully before it expires, and before the market goes south.



Push to Renew Mortgage Debt Forgiveness Gains Steam in Senate
by Sam Silverstein on February 23, 2015

An effort is under way in the Senate to renew legislation that spares underwater homeowners from having to pay income tax on mortgage debt forgiven by a lender, one of the chief supporters of the tax-relief provision told a group of politically active REALTORS® during NAR’s Federal Policy Conference in Washington.

Speaking on Feb. 5, Sen. Dean Heller (R-Nev.) said he is working with Sen. Debbie Stabenow (D-Mich.) to again extend a provision that Congress renewed for 2014, which lapsed on December 31. The Heller legislation, the Mortgage Forgiveness Tax Relief Act, would exempt forgiven mortgage debt from taxation through the end of 2016.

Heller and Stabenow are both members of the tax-writing Senate Finance Committee. Heller is also chairman of the Senate Banking, Housing and Urban Affairs Committee’s Subcommittee on Economic Policy.

Although he didn’t give a timetable for when the Senate might move forward on the measure, Heller indicated that he considers passing such a bill a priority and would like to see it happen quickly. He said that as a lawmaker from Nevada—which was particularly hard-hit by the housing downturn several years ago and has yet to fully recover—he especially aware of the severe impact falling home prices can have on home owners.

“I can’t make sense of anyone having to pay tax on income they never see,” Heller said.

Heller also said he thinks a deal on broader changes to the tax code is “within our reach,” although Hill staffers who spoke at the conference indicated that fundamental divisions over the issue between Republican lawmakers and President Obama will make achieving progress hard, particularly if the sides do not find common ground by late 2015.

One way the government could move ahead on tax reform is to reach an agreement on how to modify taxes on corporations, which Republicans on Capitol Hill and Obama agree should be a priority. The White House and Congress are further apart when it comes to the way the tax code treats individuals, because Obama has proposed raising taxes on the highest earners—a non-starter for Republicans, analysts say.

A key concern for some lawmakers, however, is that tinkering with corporate taxes without also providing relief to individuals would be unfair to small business owners such as real estate professionals, who often operate their businesses as limited liability companies (LLCs) or S corporations, meaning that income they generate passes through to their owners, who pay tax on it at their individual rate.

Source: National Association of Realtors, Sam Silverstein, Feb 23 2015
Push to Renew Mortgage Debt Forgiveness Gains Steam in Senate