Real Estate News You Can Use from Las Vegas

Who Decides if a Short Sale is Approved?

Kristine Dugan, ABR, CRS — Fri, 27 Aug 2010 13:56:00 GMT

I get asked this question often and wanted to clarity for those who do not understand the layers of decisions that have to be made on Short Sale Transactions...

"Who makes the decision to approve or deny a Short Sale transaction when the Owner owes more on the home than it is worth?"

There are three entities that are usually involved in approving a short sale - it gets a little overwhelming for folks to understand but here is it broken down in its simplest form:

1.       The Servicer - which is usually who you pay your mortgage to (i.e. Bank of America, Wells Fargo, Chase, etc.) they companies just offer their services of collecting the money on the loan for the investor and charge the investor a fee to do so. Once the Servicer takes their fee from the mortgage payment, the rest of the money is forwarded to the Investor for their return on your mortgage loan. In a short sale, the Servicer is the initial decision maker in approving a file. Once they make a decision on it, they will forward it along to the other two entities - the Investor and the Mortgage Insurance Company (if there is one).

2.       The Investor - which has the "financial interest" in the loan. They collect the money that is left over after the Servicer has collected their fees. The investor can be large entities located here in the US like Fannie Mae, Freddie Mac, and some Servicers are the Investor on mortgage loan too (but not too often). Most loans are owned by Fannie Mae and Freddie Mac. Other Investors may include entities overseas that invested in the US Mortgage Market. The Investor has the final decision on the short sale to approve, change terms or decline it because it does not meet their "guidelines."

3.       The Mortgage Insurance Company - which has insured your mortgage loan in the case that you stop paying, the Mortgage Insurance Company will pay out a fee to the Investor in order to protect their investment. Not all loans have a Mortgage Insurance Company involved. If there is a Mortgage Insurance Company involved, they have to agree with the Investor on the terms of the short sale. Same as the Investor, the Mortgage Insurance Company has the final decision on the short sale to approve, change terms or decline it because it does not meet their "guidelines".

As you can see, it is much more complicated than just getting one person's approval and each entity is designed to provide a protective layer for all parties involved. If you are thinking about or need to do a short sale on a property you own, make sure you do your homework on the agent that will be assisting you to make sure they understand the layer of entities involved in making the decision on the approval of your short sale. If you need an agent, I am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction. Feel free to contact me anytime at Info@ForeclosureSolutionsVegasValley.com.

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Investor's Special! Great Rental Property for $30,000

Kristine Dugan, ABR, CRS — Wed, 18 Aug 2010 19:22:00 GMT

Monthly Profit Loss Analysis

ListPrice

Dwnpmt

Taxes

Assoc Fee

Low Rent

High Rent

Est P&I

Mth Taxes

Insurance

Est Mth Pmt

Net Proceeds*

$30,000

$7,500

$689

$115

$625

$695

$142

$57

$14

$329

$296

*The figures above contain an estimated monthly net profit for this unit. All rental estimations were calculated from a conservative stand point (so if comparable properties could be rented for an estimated $600 to $800, I used the $600 to calculate the monthly net profit). I also figured all monthly payments based off of a 25% downpayment and 6.5% interest rate.

3716 Snorkel Court, Unit 2, Las Vegas, NV 89108

Type: Residential , Condo

Bedrooms: 2

Bathrooms: 2 Total ( Full:1, 3/4:1 )

Square Footage: 912

Year Built: 1984

Aerial Photo & Map

NEWER UPGRADES THRU OUT!!! This 2 bedroom / 2 bath Condo is recently remodeled! Newer Carpet, Paint, Window Coverings, Updated Appliances, Light Fixtures. Patio with Mountain Views! Community Pool and Park. Ideal Location Near Shopping and Freeway Access. GREAT PRICE and Ready for any Buyer or Investor!!!

Room Descriptions

Master Bedroom: 15x13

Master Bathroom: Shower Only

2nd Bedroom: 13x11

Downstairs Bedroom: Yes

Downstairs Bathroom: Yes

Family Room: None

Den: 0

Dining Room: 11x8

Front Living Room 18x13

Kitchen: Breakfast Bar/Counter, Linoleum/Vinyl Flooring

Appliances & Ammenities

Appliances: None

Dryer Utilities: Electrical

Washer/Dryer Location: AREA

Oven: Stove (E)

Fireplace(s): 0

Furnishings: Not Furnished

Heating: Central Natural Gas

Cooling: Central Electric

Interior

Interior: Blinds, Drywall

Structure & Design

Roof: Pitched, Composition Shingle

Construction: Frame & Stucco

Flooring: Vinyl, Carpet

Garage: 0

Converted Garage: No

Ground Mounted: No

House Faces: North

Property Information

Exterior: Patio

View: Mountain View

Landscaping: Desert Landscaping

Parking: Assigned Uncovered Parking

Community

Community Features: CC&R's Restrictions, Community Pool

Utilities

Water: Public Water

Sewer: City Sewer

Utilities: Underground Utilities

Additional Information

Zoning: Multi-Family

Occupancy: Tenants

Unit: 2

County: Clark

Schools

Elementary K-2: TOBL

Elementary 3-5: TOBL

Junior High: MOLA

High School: CHEY

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Vegas Valley Market Dynamics

Kristine Dugan, ABR, CRS — Wed, 28 Jul 2010 11:37:00 GMT

With so many statistics and numbers floating around the industry, I have found that Absorption Rate and Inventory Depletion are two calculations are two of the most important (I believe the unemployment rate would follow up in third place - which I will elaborate more on one of my next blogs). By utilizing Absorption Rate and Inventory Depletion, it allows one to observe the amount of listing inventory available on the market and is an accurate calculation of how quickly the inventory is being sold.

An easier way to state this is if no other homes were put on the market as of today, how long would it take for the buyers in the Vegas Valley to buy up all of the homes. Currently, Las Vegas has under 3 months of inventory which a "healthy" market is 5 to 6 months of inventory.

What is Absorption Rate and Inventory Depletion - and why are they the best indicators of Market Performance?

As it relates to the Las Vegas Valley Real Estate market, I first heard the term "Absorption Rate" and "Inventory Depletion" in a class that I earned my Certified Residential Specialist Designation (CRS). My initial thought was that they are something very complicated. You know one of those tedious things to learn. But I was wrong. Perhaps wordy, and nothing more than that, "Absorption Rate" and "Inventory Depletion" are very simple and immediate to understand.

"Absorption Rate" and "Inventory Depletion" are also the most important guide we know of to help understand the supply of inventory available and how long it will take (in months) for the current demand of buyers to "deplete" the inventory in the local marketplace.

What is Absorption Rate and Inventory Depletion?

"Absorption Rate" means the average number of homes sold per month over a specific period of time. That's it, and there is nothing more complex about it.

Absorption Rate may be applied to a market as a whole, or to a particular price range, such as $200,000 to $250,000, for example.

"Inventory Depletion" is just a fancy way of saying how long it will take the homes that are on the market to sell.

"Absorption Rate" and "Inventory Depletion" are the best means of tracking market performance. They are usually used to indicate "overall market performance", or how an entire market is doing.

Why are Absorption Rate and Inventory Depletion calculations Important?

"Absorption Rate" and "Inventory Depletion" provide a truthful projection of the competition in the marketplace by providing accurate figures of supply and demand. It is also an indication if the local real estate market is a "Seller's Market" or a "Buyer's Market" which help Buyers and Sellers create a strategy when approaching a Real Estate Transaction.

When Inventory Depletion is five to six months, this is considered a healthy amount of inventory or a "Neutral Market".

Anything less than five months is considered a "Seller's Market" due to a low/shortage of inventory and constant demand which can contribute to a higher amount of competition in the market place that increases price. Additionally, the lower the Inventory Depletion, the faster properties are selling.

Conversely, an Inventory Depletion of more than six months is considered a "Buyer's Market" due to a constant or increasing inventory and a decrease in demand with the competition being scarce and the price will likely go down. The higher the Inventory Depletion, the longer it will take to sell a property.

In the "Inventory Depletion" examples above, the first one is an example of a "Neutral Market" (5-6 months of inventory). The second example is a "Seller's Market" (4 months of inventory). The last example is one of a "Buyer's Market" (12 months of inventory).

By calculating Absorption Rates and Inventory Depletion, it helps to have a better understanding of current, and sometimes, coming trends in the Las Vegas Valley area.

To Learn More about Absorption Rate and Inventory Depletion, click here.

For current Absorption Rates and Inventory Depletion calculations for the Vegas Valley, click here.

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Tax Credit Extension Passed by House and Heads to President

Kristine Dugan, ABR, CRS — Fri, 02 Jul 2010 10:43:00 GMT

The House of Representatives passed Legislation that extends the Homebuyer Tax Credit until September 30th which will be the closing deadline for those Homebuyers already under contract. President Obama will be signing the legislation into law by as early as today. There will be no gap between June 30 and the date the President signs the bill into law for Homebuyers to be eligible for the tax credit.

Homebuyer credit extension heads to Obama
By Tami Luhby, senior writer July 1, 2010: 10:54 AM ET - NEW YORK (CNNMoney.com) -- First-time homebuyers will have until Sept. 30 to close on their purchases and land an $8,000 tax credit under a bill passed by the Senate late Wednesday.

President Obama is expected to sign the bill, which was overwhelmingly approved by the House on Tuesday. The deadline had been June 30.

The bill doesn't help anyone currently shopping for a home. Buyers must have signed a contract by April 30 to qualify for the tax break. At issue is when the deal must be finalized.

Qualified existing homeowners also have until Sept. 30 to close on new homes and receive a tax credit of up to $6,500.

An estimated 200,000 people have missed out on the tax credit because they wouldn't have been able to close by the end of business Wednesday. Many are trying to take advantage of short sales, which are complicated deals to complete.

The Senate approved the stand-alone homebuyers tax credit shortly after a failed attempt to advance a bill that combined the credit with an unemployment benefits extension.

To read the full article, go to http://money.cnn.com/2010/06/30/news/economy/homebuyer_tax_credit/index.htm

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Senate OKs new Tax Credit closing deadline for Buyers in Escrow

Kristine Dugan, ABR, CRS — Thu, 17 Jun 2010 15:39:00 GMT

For those Buyer's that qualify for the Tax Credit that are currently under contract with a Seller, the requirement to close escrow deadline of June 30th, 2010 is fast approaching. Yesterday, the Senate OK'd that extended the requirement to close from June 30th to September 30th which will assist approximately 180,000 home buyers nationwide. The House will need to work with the Senate to resolve difference in the pervious bill before the extension will become law.

Senate OKs new tax credit closing deadline - Backers of amendment cite backlog of 180K homebuyers

Wednesday, June 16, 2010 - Inman News - CLARIFICATION: While the Senate has amended HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010," to extend the closing deadline for the tax credit, it has not held a vote on the amended bill itself. Senate Democrats have reportedly trimmed $60 billion in spending from the bill in hopes of passing it this week. The House and Senate must resolve differences between previous versions of the bill passed in both chambers before it can become law.

The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal homebuyer tax credit.

Extending the deadline for closing from June 30 to Sept. 30 would allow lenders more time to clear a backlog of 180,000 homebuyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.

The amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" -- which primarily extends unemployment insurance benefits -- was approved in a 60-37 vote Wednesday. The vote on the amendment was mostly along party lines, with only four Republicans in favor and one Democrat opposed. The Senate has not yet voted on the amended bill itself.

"While I am disappointed that more Republicans did not support this common-sense measure to strengthen the economy and reduce the deficit, I am committed to ensuring that more Nevadans and Americans can become homeowners and that this amendment becomes law," Reid said in a statement.

The House passed an earlier version of the bill in December, which the Senate amended and approved in March. The House and Senate must resolve differences between versions of the bill before it becomes law.

The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.

The amendment does not extend the deadline for homebuyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.

"Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs," NAR President Vicki Cox Golder said in a statement.

There has been some speculation that some homebuyers will attempt to submit fraudulent claims for the tax credit by backdating documents showing they were under contract by April 30, and that extending the deadline for closing would expose the government to more fraudulent claims.

This article was obtained from: http://www.inman.com/news/2010/06/16/senate-oks-new-tax-credit-closing-deadline

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Bank of America making Short Sales a priority to sell over Bank Owned Properties

Kristine Dugan, ABR, CRS — Wed, 16 Jun 2010 10:43:00 GMT

I found this article last week pertaining to the bank industries efforts to assist current homeowners with the short sale of their property. Bank of America is one of the largest banks in the U.S. and I expect if short sales are going to be a priority for them, I would assume many other banks will follow suit.

Bank of America Puts Short Sales Ahead of REO
by JON PRIOR

Tuesday, June 8th, 2010, 5:04 pm - Bank of America, one of the largest lenders in the U.S., has instituted a policy of liquidating as many assets saddled with defaulted loans as possible before repossession, said Matt Vernon, the short sale and REO executive at BofA.

Vernon took the position at BofA in February. He has since announced plans to add 1,000 employees to the short sale staff. BofA currently holds more than 477,000 loans eligible for the Home Affordable Modification Program (HAMP), and has provided more than 600,000 modifications through HAMP and its own programs.

But Vernon said BofA will continue to make the short sale push when he spoke on a panel at REO Expo, being held this week in Dallas.

"We're going to do everything possible to liquidate property prior to foreclosure," Vernon said. "REO will still be available, but we will do everything we can to do short sales." Vernon said the goal is to get as close to market value as possible, or even over market value. "Short sales is not an investment strategy to get homes on the cheap," he said.

He added that agents who want a part of that market need to make short sales a major part of their business strategy through 2010 and into 2011.

Not just agents, but other companies in the default space were listening as well. Danielle Washburn, assistant vice president at Lender Processing Services Asset Management Solutions said lenders are beginning to put more emphasis on short sales because of recent efforts from the current Administration.

The Treasury Department launched the Home Affordable Foreclosure Alternatives (HAFA) program in April to provide incentives to servicers to provide short sales and deeds-in-lieu of foreclosure.

"Because of programs like HAFA, the process is getting easier," Washburn said. "But they remain very complex. There are sometimes 10 decision makers with just one transaction, the lender, the buyer, the seller, mortgage insurer, investors and more. Just one of them can stop the whole deal."

Milton Shaw, senior vice president of LPS Asset Management Solutions, said modifications and short sales through HAMP or HAFA could just be delaying the inevitable foreclosure and REO process, and the real estate business is growing frustrated with the delays.

"There's just been an incredible amount of frustration," Shaw said.

Both Washburn and Shaw agreed that more short sales will be on the way as HAMP continues to underwhelm both the industry and the public. In implementing the push for short sales, Vernon said a lot has been learned from HAMP.

"We are learning from the past where we struggled mightily," Vernon said, "and from now as we still struggle. We need the best to execute these transactions."

This artilce was obtained from http://www.housingwire.com/2010/06/08/bank-of-america-puts-short-sales-ahead-of-reo

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Loan Professionals Don't Matter when you are Buying a Home

Kristine Dugan, ABR, CRS — Sun, 02 May 2010 10:00:00 GMT

I recent had a very interesting conversation with a colleague regarding the importance of loan professionals in transaction where a buyer is purchasing a home. The conversation went something like this...

The average consumer spends 6 hours researching a computer before they purchase, 4 hours researching a car before they purchase and 2 hours research a home loan before they move forward looking for a home. The research was done by the Wall Street Journal and the article's argument was that loan professionals do not contribute much to a home buying transaction.

This particular colleague agreed with the WSJ article. I will agree to disagree with the WSJ article and my colleague. In my experience, the loan professional is the single most important person in a home purchasing transaction.

Consider the two items noted below:

The number one item that contributes to affordability when a consumer is purchasing a loan is the interest rate - if the interest rate is 1% higher for a consumer, it could very well be the difference of payment of $100 a month which could mean purchasing a home and not being able to purchase. Who is in charge of keeping an eye on interest rates and informing the buyer if rates are on the rise and they need to lock - the loan professional.
Picture this, you as a buyer find the perfect home, the home of your dreams. Your real estate professional negotiates a stellar contract and the seller delightfully accepts it. The home purchase moves forward and escrow is opened, inspection is completed, appraisal is done - the only thing left to wait on is the loan professional to do their job - finance the home. If the loan professional does not complete this step, all of the above is completed in vain. Time, energy, and the buyer's money is at stake if a loan professional does not do their job qualifying the buyer before the offer is made and follow through with their commitment to complete the loan on time.

Considering that a home purchase is the largest financial commitment a consumer can make, the figures presented in the WSJ are startling to me. As a buyer, make sure you are researching and qualifying the loan professionals you are interviewing. They are providing YOU with a service so make sure they know what they are talking about. They should ask you questions, they should find out your financial needs and future financial goals. They should provide you options and educate you on the current market conditions. If you would like a list of questions to ask while you are interviewing, feel free to email me and I can forward information to you.

In closing, I found this video below of "Dave's Story" of how he found his loan professional - It provides a little humor and education of the process - Enjoy!

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Government Program to Assist Upside Down Homeowners to Sell

Kristine Dugan, ABR, CRS — Sat, 13 Mar 2010 11:57:00 GMT

The following is an article regarding what the government is contemplating regarding short sales in the near future. The program is call HAFA (Home Affordable Foreclosure Alternatives). If you or someone you know have questions pertaining to selling their home when they are upside down, please do not hesitate to contact me so I can explain the options available.

Program Will Pay Homeowners to Sell at a Loss
By: David Streitfeld - The New York Times

In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.

More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.

Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.

“We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury senior adviser.

The problem is highlighted by a routine case in Phoenix. Chris Paul, a real estate agent, has a house he is trying to sell on behalf of its owner, who owes $150,000. Mr. Paul has an offer for $48,000, but the bank holding the mortgage says it wants at least $90,000. The frustrated owner is now contemplating foreclosure.

To bring the various parties to the table — the homeowner, the lender that services the loan, the investor that owns the loan, the bank that owns the second mortgage on the property — the government intends to spread its cash around.

Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”

Should the incentives prove successful, the short sales program could have multiple benefits. For the investment pools that own many home loans, there is the prospect of getting more money with a sale than with a foreclosure.

For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender’s assurance that they will not later be sued for an unpaid mortgage balance.

For communities, the plan will mean fewer empty foreclosed houses waiting to be sold by banks. By some estimates, as many as half of all foreclosed properties are ransacked by either the former owners or vandals, which depresses the value of the property further and pulls down the value of neighboring homes.

If short sales are about to have their moment, it has been a long time coming. At the beginning of the foreclosure crisis, lenders shunned short sales. They were not equipped to deal with the labor-intensive process and were suspicious of it.

The lenders’ thinking, said the economist Thomas Lawler, went like this: “I lend someone $200,000 to buy a house. Then he says, ‘Look, I have someone willing to pay $150,000 for it; otherwise I think I’m going to default.’ Do I really believe the borrower can’t pay it back? And is $150,000 a reasonable offer for the property?”

Short sales are “tailor-made for fraud,” said Mr. Lawler, a former executive at the mortgage finance company Fannie Mae.

Last year, short sales started to increase, although they remain relatively uncommon. Fannie Mae said preforeclosure deals on loans in its portfolio more than tripled in 2009, to 36,968. But real estate agents say many lenders still seem to disapprove of short sales.

Under the new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.

Mr. Paul, the Phoenix agent, was skeptical. “In a perfect world, this would work,” he said. “But because estimates of value are inherently subjective, it won’t. The banks don’t want to sell at a discount.”

There are myriad other potential conflicts over short sales that may not be solved by the program, which was announced on Nov. 30 but whose details are still being fine-tuned. Many would-be short sellers have second and even third mortgages on their houses. Banks that own these loans are in a position to block any sale unless they get a piece of the deal.

“You have one loan, it’s no sweat to get a short sale,” said Howard Chase, a Miami Beach agent who says he does around 20 short sales a month. “But the second mortgage often is the obstacle.”

Major lenders seem to be taking a cautious approach to the new initiative. In many cases, big banks do not actually own the mortgages; they simply administer them and collect payments. J. K. Huey, a Wells Fargo vice president, said a short sale, like a loan modification, would have to meet the requirements of the investor who owns the loan.

“This is not an opportunity for the customer to just walk away,” Ms. Huey said. “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way, I’m losing my job and moving to another city, and have all the documentation,’ we’re not going to do a short sale.”

But even if lenders want to treat short sales as a last resort for desperate borrowers, in reality the standards seem to be looser.

Sree Reddy, a lawyer and commercial real estate investor who lives in Miami Beach, bought a one-bedroom condominium in 2005, spent about $30,000 on improvements and ended up owing $540,000. Three years later, the value had fallen by 40 percent.

Mr. Reddy wanted to get out from under his crushing monthly payments. He lost a lot of money in the crash but was not in default. Nevertheless, his bank let him sell the place for $360,000 last summer.

“A short sale provides peace of mind,” said Mr. Reddy, 32. “If you’re in foreclosure, you don’t know when they’re ultimately going to take the place away from you.”

Mr. Reddy still lives in the apartment complex where he bought that condo, but is now a renter paying about half of his old mortgage payment. Another benefit, he said: “The place I’m in now is nicer and a little bigger.”

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Home Buyers Rush to Take Advantage of Tax Credit Before It’s Gone

Kristine Dugan, ABR, CRS — Sat, 13 Feb 2010 09:05:00 GMT

This article was written by Alan J. Heavens from RISMedia and I found it very relevant as to what I am seeing right now in the market place. Home buyers are scrambling to find a home that will fit their needs before the Tax Credit expires in April. This article also reitterates the qualifications and guidelines for the Tax Credit for First Time Home Buyers and Repeat Buyers (Be sure to consult your tax profession to see if you qualify for the tax credit). Enjoy!!!

RISMEDIA, February 12, 2010—(MCT)—Liv Mansfield is racing the clock, hoping to find and settle, or at least sign a purchase agreement, on a townhouse before the $6,500 tax credit for qualified repeat home buyers expires April 30, 2010.

While the credit is not as important as staying in the Wallingford school district, where her younger daughter will enter sixth grade next fall, Mansfield says it will help make expenses associated with the move ‘a wash.’ “It will help with moving costs, and with getting this house ready for sale,” said Mansfield, who has lived in the five- bedroom split-level Colonial she bought with her former husband nine years ago.

The house, which she says is far larger than what “two people and a small dog need,” will list for under $525,000 and heads for the market Feb. 15, 2010.

Current homeowners buying a house between Nov. 7, 2009, and April 30 and who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight can qualify for the $6,500. It seems less is known about the repeat buyer credit. This incentive was added when the original $8,000 tax credit for qualified first-time buyers, which expired Nov. 30, was extended.

Houses purchased for $800,000 or less are eligible for repeat buyers. Single buyers with incomes up to $125,000 and married couples up to $225,000 may receive the maximum tax credit for both repeat and first-time purchases. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Buyers earning more than the maximum are not eligible for the credit. If a binding written contract to purchase is in effect April 30, the purchaser will have until July 1, 2010 to close.

The 2009 credit for first-timers helped jump-start the sagging home market in the summer and fall, data show. Walt Molony, a National Association of Realtors (NAR) spokesman, said two million existing-home sales in 2009 could be attributed to the $8,000 first-time buyer credit. Although it is too early to measure the credit’s effect on sales so far this year, Molony said NAR chief economist Lawrence Yun believes it will add 1.5 million sales to the tally.

The repeat-buyer credit was added to appease builders, who said the original did not offer enough time to purchasers of new houses, which take at least six months to build, to close on them. New homes accounted for only 7% of the tax-credit-based sales, Molony said.

The National Association of Homebuilders’ Donna Reichle said, “We hear builders saying they are getting inquiries, but that’s all so far. According to our economists, it’s way too early,” Reichle said. “If you look back at the passage of the original $8,000 credit and impact on housing starts, it took a couple of months, and that was in the spring as well.” Moody’s Economy.com chief economist Mark Zandi says the credit will boost sales “modestly,” however, by 300,000, with one-third trade-up buyers. “I don’t expect the credit to be extended again,” Zandi said. “Each time it is extended, it becomes less effective and thus more costly.”

David Krieger, senior vice president and general manager of Coldwell Banker Preferred in Philadelphia, says he believes that “a very large increase in our listing inventory in January is a result of the $6,500 credit.” Still, the $8,000 first-time credit remains the chief reason his company’s home sales were 33% higher last month than in January 2009, he said.

Typically, repeat buyers are better off financially than first-timers, so a lot of repeat buyers realize from the start they don’t qualify for the credit, Weichert Realtors agent Alec Schwartz said. “What they do realize, and what is getting more sellers to list, is that they understand that there are plenty of first-time buyers who qualify for the $8,000 credit out there, and they have a much better chance of selling their house and buying a new one than before,” said Schwartz, Liv Mansfield’s agent.

This is also true in the region’s new-home market, said Wayne Norris, regional sales manager for Hanley Wood Market Intelligence. “Builders have experienced increased activity in recent months” attributable to the $6,500 credit and “the fact that many potential buyers were able to sell their houses” to those taking advantage of the first-time buyer credit,” he said. The sense of urgency to make the tax-credit deadline and fears of rising interest rates will push new-home sales higher in the spring, Norris said.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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Realtors Are Inept, Stupid & Completely Worthless..

Kristine Dugan, ABR, CRS — Wed, 23 Dec 2009 07:02:00 GMT

I love this post on Active Rain... I feel as if this address the feelings many consumers have in multiple industries.

Dear Consumer,

I understand your frustration, disappointment & even your anger about Realtors. You have been let down, lied to, and in some cases stolen from. And I do not feel sorry for most of you.

Let me share this story with you:

I had a computer that was constantly losing memory. It is now with it's 3rd technician. Like you, I know very little about "the industry." In fact, I know nothing about computers except what I've read online. Once in awhile a friend or relative will try to give me advice, but the result is always the same, more frustration. The first COMPUTER TECHNICIAN charged me $250.00 to fix my problem. He told me I had a leaky motherboard and to "throw it away." Unconvinced I took the computer to Best Buy ($150.00) where they simply said they needed to reconfigure my cpu and "wipe it." This would basically delete everything on the hard drive and restore it to day one. Guess what? That didn't work either!

On the third attempt I dropped it off to yet another technician, referred by fellow Realtor. I was so angry with the entire process that I was determined to get to the source of the problem, no matter the cost..... Finally I was told I had a VIRUS in my BIOS system, whatever the hell that means. My situation was now solved.

I very easily could have said... "all computer technicians are stupid liars looking to STEAL from me," but I did not. To be honest, I'm very, very angry about my experiences, but....

---->I have one person to blame for my misery, myself.<----

I rushed, trusted and didn't do my research when looking for the RIGHT guy to fix my computer. I was stupid, careless and too trustworthy. When I was growing up my parents always warned me to SHOP wisely. They reminded me that only fools make quick impulsive decisions with their money. And they were right.

Now that I've found my trusted computer technician I feel redeemed. If I ever need a computer repair, I'll know who to call. I'll refer him over and over again & even though I'm angry with my past experiences I harbor no ill will towards the industry. I would NEVER consider trying to nickle & dime him as I now know he's worth the money he was paid. I won't rely on my uncle in Nebraska who worked on computers in the 80's as he's "just trying to help.

The moral of the story is simple.

Ask lots and lots of questions before you hire a Realtor. Don't just sign paperwork assuming we are all bred, raised and educated the same. The 80/20 rule applies to our industry as well. I believe you get what you pay for in Real Estate. If you don't do your research than you are asking for potential problems.

Learn from other peoples horror stories and not your own.

By Greg Nino Houston Texas to read more about this blog, go to http://activerain.com/blogs/nino2001

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Tips to Improve your Credit Score

Kristine Dugan, ABR, CRS — Wed, 09 Dec 2009 13:01:00 GMT

The following information was discovered through an article that was emailed to me. I found it to be of value and wanted to share it. For additional information regarding credit scores, click here for a free report.

9 Tips for Improving Your Credit Score

RISMEDIA, November 14, 2009 - Christine Van Tuyl and Margaret La Grange, an award-winning mother-daughter team with Prudential California Realty in Coronado, have compiled their latest list, - Top Tips for Improving Your Credit Score Now. "Although interest rates are at historic lows, you need to have excellent credit to secure the best possible rate," said Christine Van Tuyl, real estate agent. "Whether you're looking to boost an already good score, or if you have a foreclosure or short sale on your record, it's never a bad time to improve your credit score."

Top Tips to Improve your Credit

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus - Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you're struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don't cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It's a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don't apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don't pay someone to wipe away the negative items in your file. If they don't follow through, the damaging items will reappear in two or three months.

Please keep in mind that Christine Van Tuyl and Margaret La Grange are real estate agents, not mortgage lenders. For more information on how your credit score will impact your loan and interest rate, please contact your mortgage lender.

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What to Know When You’re Buying an REO Property

Kristine Dugan, ABR, CRS — Sun, 15 Nov 2009 20:20:00 GMT

I found this article by Amy Hoak and found it very useful from a consumer's perspective. Enjoy!

Finding Your Dream Foreclosure: What to Know When You're Buying an REO Property

RISMEDIA, October 5, 2009 - (MarketWatch/MCT) - Buying a foreclosure often is appealing to buyers trying to stretch their dollars. It's finding a good one can that can be a challenge.

The vast majority of the banks don't want us to advertise them as "bank-owned" because it comes with a negative connotation," said Ryan Melvin, co-owner of More Realty Group in Las Vegas.

That means no sign on the front lawn indicating the home is anything other than a traditional sale. A buyer probably won't find a property advertised as a foreclosure on marketing materials, said Melvin, who specializes in real-estate owned properties, or REOs, those that have been reclaimed by a bank, typically after an unsuccessful foreclosure auction.

Plus, in some markets, including Las Vegas, foreclosure inventory is actually down compared with last year as government programs attempt to keep owners in their homes and banks aren't putting as many homes on the market, Melvin said. That's making it harder for buyers to snag a foreclosure, and those paying with cash often win a bid over someone who needs financing.

If you're considering the purchase of a home that is now owned by a bank, it's also important to know at the outset just how much work you're in for - and how much it is going to cost you. Many foreclosures are in various states of disrepair; some of the fixes are cosmetic, but some can be extensive.

Those looking for the best deal probably shouldn't rule out non-foreclosure properties, either, said Mark Goldman, a mortgage broker with Cobalt Financial Corp., and a real estate lecturer at San Diego State University. Sometimes, people set their sights on bank-owned properties - like the word 'foreclosure' equals 'good deal'," he said.

And that's not always true...

You might want to enlist the help of a realty agent. Someone who works regularly with REOs might be able to track down the properties more easily than a traditional agent. Melvin is a member of the National REO Brokers Association, nrba.com, which has a searchable database of brokers on its site. There's also the REO Network, reonetwork.com, which connects buyers with those who specialize in selling REOs.

Lenders aren't held to the same disclosure requirements as sellers who have lived in the home, mainly because the lender hasn't occupied the home to notice leaks or other problems. For that reason, an inspection is crucial.

"If there are lessons out of the last couple of years, it's certainly buyer beware," said Dan Steward, president of the home inspection firm Pillar to Post, which has a U.S. headquarters in Tampa, Fla.

"We have all heard the stories of people ripping the copper pipe and wiring out - people have literally gone to the light switch, disconnected the wire from the switch box and have pulled the wire through the drywall," Steward said. Some have ripped out toilets and kicked in walls or left water faucets running before they left the house, often out of anger.

You don't need to be told the toilet is gone, but an inspector can tell if there is damage 20 feet down the water line because of the way that toilet was ripped out, he said.

Other issues could pop up due to the property being vacant. Large banks will often hire a field service to cut the grass, shovel the snow and winterize a home, yet when homes aren't occupied it's harder to catch small problems before they become big ones.

"When we live at home or drive the car, if something is off we notice it. We notice it and we deal with it," Steward said. When a place is unoccupied, pests could become an issue. If you were living in a home, a nest of raccoons probably wouldn't be able to find a home in your crawlspace - not for long, anyway.

A neighborhood environmental report might also be worthwhile, he said, which could reveal if the property was the site of a drug lab, for example. When a meth lab is operating in a home, air quality issues can arise; when a home was used for growing marijuana, there is a tendency for mold problems from the high humidity, Steward said.

The time it takes to complete the sale can vary from lender to lender. In some cases, the process goes smoothly, Goldman said. Other lenders are disorganized.

"It really depends on who you're doing business with," Goldman said.

But for your best chance at having an offer accepted and for a quick closing process, have everything in order before making the offer, said Duane Andrews, CEO of Clear Capital, a company that provides valuation products for the mortgage and lending industries. That includes having the financing firmed up and writing a clean offer - for example, asking for new oven racks as part of the deal could peg you as a demanding buyer who will be annoying to deal with, he said.

"What this tells the seller is this guy is going to be a pain and they don't have time for this pain," Andrews said.

In fact, most bank-owned properties are sold "as is," so if there is something you want fixed, it's best to just factor that into the price you're offering, Melvin said.

But don't expect to bargain the listing price way down, Melvin added.

Banks typically price their properties at a 20 percent to 30 percent discount anyway, he said. If the property has been on the market for a week or two, don't expect the bank to drop the price; if the listing is older, you might have more power, he said.

Also, don't be surprised if the bank that is selling the property asks you to get an approval from its mortgage operation; you often don't have to take the loan from their company, but they may want to get a closer look at your finances to make sure you're a solid buyer, Melvin said.

Above all, make sure to follow directions when submitting the offer, he said. That likely includes having an approval letter from the bank and the correct amount of earnest money.

"Most listing agents will have instructions how we want buyers agents to submit the offer," he said. Delays can occur when instructions aren't followed exactly.

Distributed by McClatchy-Tribune Information Services.

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Luxury Loft Style Living in Las Vegas

Kristine Dugan, ABR, CRS — Thu, 12 Nov 2009 15:42:00 GMT

Listing URL: http://homesearchvegasvalley.com/990909

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Listing Information

Status:

Active

Type:

Residential

Bedrooms:

Bathrooms:

5 Total ( Full:3, 3/4:1, Half:1 )

Square Footage:

3,842

Year Built:

2007

Acreage:

0.15

Garage:

Aerial Photo & Map

South West

$550,900

1517 CANYON LEDGE CT Las Vegas, NV 89117

MLS# 990909

Features

Community

Schools

Map

Flyer

eCard

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Contact Information

Room Descriptions

Master Bedroom:

Dressing Room, Master Bedroom Walk In Closet, Master Bedroom Upstairs, Master Bedroom Seprate From Others 19x17

Master Bathroom:

Double Sink, Shower Only

2nd Bedroom:

Built In Shelves, Upstairs, Tv/Cable 13x12

3rd Bedroom:

Downstairs, With Bath, Walk-In Closet 14x20

4th Bedroom:

Downstairs, With Bath, Tv/Cable 14x13

Downstairs Bedroom:

Yes

Downstairs Bathroom:

Yes ,

Family Room:

None

Den:

Dining Room:

Formal Dining Room 16x10

Great Room:

Cathedral/Vaulted Ceiling 22x19

Living Room:

None

Kitchen:

Breakfast Bar/Counter, Island, Breakfast Nook (Eating Area), Custom Cabinets, Garden Window, Recess Lighting, Granite Countertops, Tile Flooring

Loft:

Appliances & Ammenities

Appliances:

Microwave

Dryer Utilities:

Gas

Washer/Dryer Location:

ROOM,1STFLR

Oven:

Double Built In Oven (E), Cooktop (G)

Fireplace(s):

3, Gas Fireplace GRTRM,CRTPTO

Furnishings:

Not Furnished

Heating:

Two or More Units, Central Natural Gas

Cooling:

Central Electric

Interior

Interior:

Alarm System-Owned, Blinds, Window Coverings Through-Out, Drywall, Shutters

Structure & Design

Roof:

Flat

Construction:

Frame & Stucco

Flooring:

Carpet, Ceramic Tile

Garage:

2 Attached Garage, Auto Door Opener, Entry to House, Finished Interior

Converted Garage:

Ground Mounted:

Yes

House Faces:

West

Property Information

Exterior:

Balcony, Backyard Access, Courtyard

View:

Park/Greenbelt View, Strip View, Mountain View

Fence:

Block

Equestrian:

None

Landscaping:

Rock, Schrubs

Parking:

RESTRIC

Private Pool:

Property:

CASITA

Spa:

Lot Square Footage:

6,534

Lot Description:

Under 1/4 Acre, Cul-De-Sac, Paved Road

Community

Community Features:

CC&R's Restrictions, Community Wall, Gated, Play Ground/Park

Utilities

Water:

Public Water

Sewer:

City Sewer

Utilities:

Cable TV Available, Underground Utilities

Additional Information

Zoning:

Single Family

Occupancy:

Vacant

Miscellaneous:

County:

clark

Schools

Elementary K-2:

DERF

Elementary 3-5:

DERF

Junior High:

JOHN

High School:

BNZA

Year Round Schools:

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List Price:

Down Payment:*
%

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# of Years:

Monthly Payment =
Down Payment =

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This listing appears courtesy of: Billy Runyan , Windermere Prestige Properties
All information provided is deemed reliable but is not guaranteed and should be independently verified.

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First Time Home Buyer Tax Credit Extended and Expanded

Kristine Dugan, ABR, CRS — Fri, 06 Nov 2009 13:43:00 GMT

First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit - Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

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Interest Rate Update

Kristine Dugan, ABR, CRS — Mon, 26 Oct 2009 08:55:00 GMT

Avoid This Costly Mistake

If you've been following the financial news, you've probably heard that the Fed's been buying Mortgage Backed Securities. Unfortunately, people have picked up on the news and mistakenly discussed how these purchases will continue to cause rates to drop lower. But is that really what it means? No.

The following information can help set the record straight and help you make smart decisions that lead to a low interest rate for your home loan.

How is the Fed's Bond Purchase Related to Rates?

The Fed has been buying Mortgage Bonds. BUT... more precisely, they're buying a lot of FNMA 30-yr 5.0% and 5.5% Bonds. Many of the mortgages in these pools are outstanding home loans with rates between 6.0% and 6.5%, as the rate that a borrower pays is different than the coupon rate given to an investor buying into that mortgage pool, with the difference being taken by Wall Street firms and government agencies. The loans in these pools are likely to be refinanced and paid - because current rates make it very attractive to refinance a loan over 6.0%. Thus, giving the Fed a quick recoup on some of its investment. Bottom line: The Fed's purchase of higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

The Problem Is...

Many consumers are in situations where they can refinance or buy a home now and save hundreds of dollars a month on their mortgage payments. But if they hear people throwing around teases of lower rates ahead, they may decide to hold off on making the decision to save, in the hopes of gaining a few more dollars of savings per month if a lower rate came their way. Of course, while they're waiting, rates could turn higher - especially when you consider that the Fed is scaling back its purchases of Mortgage Backed Securities - and this window of opportunity could pass them by entirely.

Is the Fed Scaling Back? And What Will It Mean to Rates?

Last week, the New York Fed began to scale back their Mortgage Backed Security purchase program. The Fed has been buying about $25 Billion worth of Mortgage Backed Securities per week, but the new plan to drag out these purchases over a longer period of time means that they will be reducing both the frequency and amounts of their purchases. This will cause higher levels of volatility, as the Fed will be purchasing less often and less consistently. As a result, rates will probably rise gradually over time.

Here's the Clincher

Even if consumers are ultimately able to time the market perfectly and save another few bucks per month, they could still end up losing. That's because while they delayed, they lost the savings each month they could have gained by taking action sooner. In other words, they may have lost hundreds of dollars for every month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

I don't want anyone to miss an opportunity to buy a home by either waiting or misunderstanding the media headlines. If you would like to further discuss this, call or email me.

*This information was derived by Michael Rodriguez, VP of Bank of Las Vegas

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Kristine Dugan Awarded the Certified Residential Specialist Designation

Kristine Dugan, ABR, CRS — Thu, 22 Oct 2009 09:57:00 GMT

FOR IMMEDIATE RELEASE IN NEVADA

KRISTINE DUGAN HAS BEEN AWARDED THE CERTIFIED RESIDENTIAL SPECIALIST DESIGNATION BY THE COUNCIL OF RESIDENTIAL SPECIALISTS.

Las Vegas, NV October 22, 2009-Kristine Dugan, a Las Vegas Realtor has been awarded the prestigious Certified Residential Specialist (CRS) Designation by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of Realtors.

Realtors who receive the CRS Designation have completed advanced courses and have demonstrated professional expertise in the field of residential real estate. Fewer than 38,000 Realtors nationwide have earned the credential.

Home buyers and sellers can be assured that CRS Designees subscribe to the strict Realtor code of ethics, have access to the latest technology and are specialists in helping clients maximize profits and minimize costs when buying or selling a home.

Kristine Dugan is a sales associate with Windermere Prestige Properties in Henderson, NV. She is a member of the Greater Las Vegas Association of Realtors. Kristine Dugan is also an Accredited Buyer's Representative.

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Impact of Interest Rates in Las Vegas Real Estate Market

Kristine Dugan, ABR, CRS — Thu, 15 Oct 2009 13:52:00 GMT

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?

I have had numerous conversations with clients lately that are focused around home values here in the Vegas Valley. Particularly, the one question on many people's mind is "has Las Vegas Real Estate hit the bottom of the market"?

I have put together a couple of points below that bring up another important factor to consider in addition to home values as one is calculating the "right" time to purchase a home.

When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It's important to keep in mind, however, that the sales price is not the only factor that determines what the monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.

Below if a diagram that depicts this fact. Based off a purchase price of $207,000 if the interest went from 5% to 6%, the monthly payment would increase $125.46. With an interest rate increase from 5% to 7%, the monthly payment would increase $256.96 per month.

To further evaluate this diagram and put the interest rate factor into perspective, a buyer would have to negotiate a 10% reduction of the purchase price for every 1% increase in their interest rate. So using the same example as mentioned above, if the purchase price of the home is $207,000 with an interest rate of 5% the monthly payment would be equivalent to a purchase price of $186,300 with a 6% interest rate. Depending on the Seller, this 10% reduction in purchase price may not be an option.

From this simple example, I would suggest to an interested buyer to examine not only the trends of what the local real estate market values are depicting but also the trends of interest rates (keep in mind that rates are at historical lows and annalists have predicted that rates will increase at the beginning of 2010 due to some additional economic factors). If you need assistance regarding summarizing any real estate and loan data, feel free to contact me and I can provide you with additional information, worksheets to customize additional examples or your particular situation, and resources.

Take care,

Kristine

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When is a “Good” time to buy Real Estate?

Kristine Dugan, ABR, CRS — Wed, 30 Sep 2009 08:45:00 GMT

The majority of people I have come into contact with ask me if I believe it is a "good" time to buy right now in the Las Vegas Real Estate Market. I have realized by some of the conversation that has been generated by this topic that a lot of folks have a misconception of the current real estate market. I understand that there is a plethora of information disseminated amongst people within the industry, the media and consumers that I feel is conflicting or not as accurate as what I see on an everyday basis. I am writing this blog posting to provide my clients (and other individuals that may be interested) on my perception of the Las Vegas Real Estate Market.

To begin, let's lay some ground work - this summer Las Vegas hit some pretty impressive numbers when it came to having an all time high record of the amount of homes sold in a month, topping out at roughly 4,700 in June which broke the previous record of 4,414 homes sold in June of 2004 during the "boom" (per the Las Vegas Review Journal). Las Vegas is still one of the highest regions hit by foreclosures (which primarily what is most people are aware of via the media); however, the available listing inventory is shrinking (because the banks that own the foreclosures are not immediately placing the homes back on the market and are keeping them in their inventory). From what I see in the market, most homes that are in good condition and priced competitively, are selling within 2 to 10 days. In almost all situations I see, if a buyer is interested in writing an offer on a property, they will be in competition with multiple other buyers (anywhere from 1 to 20 and maybe more). Home values are also showing signs of stabilization. Considering that the buyers (or demand) are keeping up with the listings (or supply) and the values are stabilizing, some local analysts are reporting that Las Vegas Real Estate values have hit the "bottom."

Moving on, most people don't take into consideration that the economy has seasons. Just like we have spring, summer, fall and winter every year, the economy also has growing and declining seasons (or what I will refer to as cycles). What strikes me as the most interesting thing about these cycles is that most people tend to react to the market based on what everyone else is doing. If a person buys at the top of the market, there is the lowest chance for opportunity and the highest degree of risk. On the other hand, if a person buys at the bottom or near the bottom, there is a higher opportunity for an increase in value with lower risk of loss.

Below is a diagram (complements of Pat Zaby, CRS) that depicts the emotions that commonly coincide with market trends.

If local analysts are correct, I can safely assume that the Las Vegas Real Estate Market is somewhere in the "Depression" to "Hope" stage.

Currently, I feel as if there is a huge window of opportunity that one could currently take advantage of. In addition to the opportunity with the "bottoming" out of the real estate market, home values are still low (and I might add, the most affordable they have been in years), inventory is tremendous (especially with the bank owned properties that continue to hit the market on a daily basis), and interest rates are at historical lows (the lowest they have been since the 1950s)! If you happen to be a first time home buyer (which constitutes as not owning a home in the last 3 years) and fit the income requirements set forth by the IRS, there is also the First Time Home Buyer's Tax Credit - which is currently at $8,000 and set to expire on November 30th.

I have stated many facts that contribute to a great time to buy NOW, but let me take a moment to consider other valuable factors that contribute to people buying a home...

Home ownership is part of the American dream.
Many people buy homes to have control of where they live, how much they pay, and the condition of the property.
Most people consider their home to be their largest investment due to increasing values and the amortization of their mortgages.
Three out of four people say that pride of ownership is an important reason for buying.
Almost 70% of people didn't like the concept of "paying rent" and getting nothing but a place to live for it.
People like to be able to control and modify the feature of a home.
More than 50% of renters associate settling down to purchasing a home.
Home ownership continues to be the largest single source of savings for U.S. households.
Most renters say that the sacrifice made to be able to purchase a home is worth it.
The equity in a home can be accessed, with good credit, and used for any reason such as education, medical, or starting a business.
Homes have continued to appreciate in value over the long term and are considered to be good investments.

I would like to close with a quote from François de la Rochefoucauld, "The only thing constant in life is change." All too often opportunity looks us in the eye and we are not paying attention enough to take advantage. The interest rates that we are seeing today will not continue to last - they are superficially low. The home values that we are seeing today will not last either. There are many great reasons to buy a home now but at the end of the day the only reason to start looking is if you are ready for home ownership. If you think you are ready or would like to discuss your particular situation, please feel free to call me. I would be grateful for the opportunity to meet with you and discuss your options.

Be blessed...

Kristine

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Welcome to My Blog

Kristine Dugan, ABR, CRS — Mon, 21 Sep 2009 00:10:00 GMT

Thanks for visiting!

For those of you that know me and familiar with my beliefs, I work to have a life without dualism and believe that we, as human beings, should be holistic in our approach to life. Meaning rather than keeping our professional life, personal life and all factors of our inner and outer world separate, we should integrate them all as one (financial, relational, mental, physical, and spiritual) - one approach because we are all just one person and I believe sectoring each or any part of your life out is an unjustified way to live life.

Because of this, I have created a blog that includes my beliefs and thoughts on a professional and personal level. My intention for blogging is to share my thoughts and knowledge that I have learned (and continue to learn) to help enhance the lives of others.

To those of you visiting my website that I haven't had the pleasure of meeting, I encourage you to browse through my blog entries search for items you may find useful for your real estate needs and everyday life.

I hope you get value out of the information I provide and please enjoy and feel free to interact when you feel necessary. I look forward to interacting with each of you and if there is anything I can assist you with on a professional or personal level, please do not hesitate to call me.

Sharing your Goals,

Kristine

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ListPrice	Dwnpmt	Taxes	Assoc Fee	Low Rent	High Rent	Est P&I	Mth Taxes	Insurance	Est Mth Pmt	Net Proceeds*
$30,000	$7,500	$689	$115	$625	$695	$142	$57	$14	$329	$296

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ListPrice Dwnpmt Taxes Assoc Fee Low Rent High Rent Est P&I Mth Taxes Insurance Est Mth Pmt Net Proceeds* $30,000 $7,500 $689 $115 $625 $695 $142 $57 $14 $329 $296

3716 Snorkel Court, Unit 2, Las Vegas, NV 89108

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Welcome to My Blog

ListPrice

Dwnpmt

Taxes

Assoc Fee

Low Rent

High Rent

Est P&I

Mth Taxes

Insurance

Est Mth Pmt

Net Proceeds*

$30,000

$7,500

$689

$115

$625

$695

$142

$57

$14

$329

$296