Scandalous Suggestion from Debt Commission

Author and commentator Chavez outlines how proposed changes to the mortgage interest deduction would immediately reduce the value of homes by as much as 15 percent.


http://news.yahoo.com/s/uc/20101203/cm_uc_crlchx/op_2016210

House to House: Selling A Home for the Holidays?

Photo courtesy of Amy Glover Bryant

I’ve always thought that listing a house for sale at Christmas was a bad idea. I figured that the holidays were crazy and cold enough without adding the stress of shopping for a house to people’s lists. Plus, aren’t homes just easier to sell when the flowers are blooming and the weather is welcoming? Isn’t that usually the spring and summer months (although in Arkansas you never know). Then again, I think my house always looks its best at Christmas and, with mortgage rates at historic lows right now, perhaps it’s not such a bad idea to try and sell one’s home at the holidays.

Not knowing which way to turn in my thinking, I did a little research and asked a few Realtor® and mortgage banking friends what they thought.

As I’ve previously pointed out in this column, smell has a tremendous impact on what people think of your home. In fact, the smell of fresh baked goods is the scent the Scent Marketing Institute recommends for inspiring folks to purchase a home. Christmas is full of wonderful smells: apple cider, sugar cookies, evergreen trees, peppermints. You could even leave some of the baked goodies and cider out for prospective buyers to enjoy.

I also think there is no better feeling than to walk out of a cold, blustery day into a warm home filled with yummy sights and smells. It’s cold out there and your house is going to feel like a haven in a cold world to prospective buyers.

Houses show better when decorated for the holidays. From all accounts you definitely should decorate, but do so in a way that helps your home look inviting, homey and welcoming.

Photo courtesy of Amy Glover Bryant

Cindy Meyers of Meyers Realty in Hot Springs had this to say, “Even if your home sells during the holidays it won't close until after. It's your home, live in it and enjoy the holidays with family and friends.” Karen Crowson at Crye-Leike Realtors® in Benton completely agrees, “Life has to continue,” says Crowson. “Decorate but consult your Realtor®. He or she can help keep cluttered decorations to a minimum so buyers can focus on your home’s attributes.”

According to Little Rock Realtor® Wally Loveless another reason to consider selling during the Christmas season is that any prospect that is looking for a home has a deadline. There are no casual prospects just passing time. So when you do have a showing it will be to someone who is serious.

There are also strong tax incentives motivating buyers to purchase a home before the end of the year. I’m definitely no tax professional but from what I understand the major tax factor is that the buyer can deduct most of their major closing costs such as the origination fee, appraisal, title insurance policy, etc. on their 2010 income tax. According to Loveless even if the seller pays the costs for the buyer the IRS has ruled that the cost are imputed to the buyer as included in the cost of the home.

Furthermore, in 2011 the buyer will be able to deduct their mortgage interest and property taxes on their income tax return. These deductions can be significant, particularly in the earlier years of a mortgage when you are paying off so much interest.

"In many cases, there are certain tax advantages to buying a home. Closing the loan on a new home during the holidays could lower the amount of taxes paid or increase a return - as always you should check with your tax professional," says Justin Moore, President of the Arkansas Mortgage Bankers Association.

According to Jim Cargill, President of Arvest Bank in Little Rock, not only are interest rates at historic lows right now but the services that support the home sale such as the banks, title companies and appraisal services are less busy during this season which could result in a more streamlined closing time-table.

Cargill also pointed out that although it is generally a slower time in home sales, some families are relocating for the start of a new job in a new year. “Relocating ‘at semester’ for families with school-aged children, allows for somewhat less disruptive transition to a new school, as opposed to during the semester,” he said.

As one Arkansas Realtor® put it, we all have a bit more of a “warm fuzzy feeling” at the holidays. Perhaps that “better, more softened frame of mind” will drive buyers to take that leap of faith and purchase your home – hopefully for the price you are asking.

Finally if you are concerned about the inconvenience of having to empty your house of friends and family in order for buyers to tour it remember you have the option to restrict showings to times that are convenient for you. Good luck and happy holidays!

♦♦♦

House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors®  Association.

Regulating Real Estate Professionals

If you have ever bought or sold real estate, you have undoubtedly employed the services of a real estate agent to guide and assist you through the process. Consumers are often uncertain who regulates real estate professionals.

Many real estate professionals are subject to two sets of rules. First, each jurisdiction has a governmental agency, typically referred to as the real estate commission, charged with the authority to issue licenses to real estate professionals and enforce related state laws and regulations. Additionally, many real estate professionals, after obtaining a license, choose to become members of a REALTOR® association, whose mission is to promote the profitability and success of its members. Those licensees agree to abide by a strict Code of Ethics, and the local REALTOR® association is responsible for assuring that members adhere to the Code.

Real Estate Commissions

Each jurisdiction has a real estate commission whose primary mission is to protect the public from unqualified real estate practitioners. As such, the real estate commission has the authority to implement and enforce real estate licensing laws. In keeping with this authority, the real estate commission serves various important functions, including:

• Authority to Issue a license, and monitor real estate activities.

• Establish requirements for maintenance of a real estate license, such as continuing education.

• Conduct investigations into alleged violations of jurisdiction licensing laws and regulations based on complaints filed by the public or on the real estate commission’s own motion.

• Perform routine audits of trust accounts.

• Enforce licensing laws and take disciplinary action against licensees who have been found in violation, including revoking their ability to practice licensed real estate activities in a respective jurisdiction.

Members of the public who suspect a real estate licensee has violated the licensing laws can direct their complaint to the real estate commission of the respective jurisdiction, which will then review the allegations and determine what action, if any, is appropriate for the jurisdiction to pursue.

REALTOR® Associations

Membership in a REALTOR® association is entirely voluntary, but carries with it the responsibility for each REALTOR® member to adhere to a strict Code of Ethics. Real estate professionals join their local REALTOR® association and, as part of their membership, they automatically become members of both the state REALTOR® association, and the National Association of REALTORS® (NAR). The NAR Code of Ethics, which establishes a public and private standard of behavior for REALTOR® members when dealing with the public and other real estate professionals, is enforced at the local level through the local REALTOR® association. It is therefore the function and authority of the local REALTOR® association to:

• Conduct hearings into alleged violations of the NAR Code of Ethics.

• Take disciplinary action against a REALTOR® member, which can include the ordering of fines or revocation of a real estate professional’s membership in the REALTOR® association.

Similar to filing a complaint with the state real estate association, members of the public can also contact their local REALTOR® association and file a complaint where they suspect a violation of the Code of Ethics has occurred. It is important to understand, however, that a REALTOR® association does not have any authority over a real estate professional’s license, as this is the exclusive jurisdiction of the respective real estate commission. REALTOR® associations only discipline REALTOR® members for violations of the NAR Code of Ethics. For all other alleged wrong doing, consumers should contact the respective real estate commission or consult with an attorney.

In conclusion, real estate professionals are held to high standards under which they must conduct their business. The real estate commission enforces its license laws, while members of a REALTOR® association must agree to follow the NAR Code of Ethics. If a real estate professional fails to adhere to these standards, appropriate action can be taken.

This article was written by the National Association of REALTORS®, in collaboration with the Association of Real Estate License Law Officials.

Holiday Safety Tips

Shopping Tips

1. Let someone you trust know about where you will be shopping, and if possible, give them a timetable for the locations you will be visiting.

2. Never take more cash and credit cards with you than you need. Ladies, carry a small purse or billfold to prevent purse-snatchers from seeing an opportunity to get easy cash.

3. Always lock all valuables in your trunk and remember that some vehicles have buttons on the inside of the passenger compartment that open the trunk. If possible lock this device away.

4. Never walk around shopping centers with a large amount of packages. As you make your purchases, place them in the trunk of your car.

5. Always walk to your vehicle with a group of people. You can ask a store security person to walk with you to your car.

6. While in your car, lock all doors and keep a look out for suspicious acting people.

7. If you are robbed, remember that your money is not worth your life. Give the robber what they want and call for help as soon as possible.

Home Safety Tips

1. Always keep your doors locked while at home. Never open your door to someone you do not know.

2. Never leave your Christmas gifts out in plain sight. If they are under the Christmas tree, place the tree in a location where the gifts cannot be seen from outside the home.

3. Always remember fire safety if you are using a real tree.

4. If suspicious activity is noticed in your neighborhood, call the police as soon as possible and remember to get a description of the suspect vehicle and persons.

Driving Safety Tips

1. Never drink and drive, period. Even one beer can impair your ability to drive. If you are going to drink alcoholic beverages, use a designated driver.

2. If you have a cell phone, take it with you just in case you have trouble.

3. Always plan your route and obey all traffic laws.

4. If you notice someone following you, drive to a safe location where you can notify police.

5. Think safety and do not panic if trouble arises.

Real Estate Brokers have “Signatures”, not “Robo-Signatures

By Gary Isom
Executive Director
Arkansas Real Estate Commission
Gary.Isom@Arkansas.Gov

Lately, the news has been full of stories about hundreds of thousands of foreclosures being delayed because of robo-signatures. The legality of many individual foreclosure proceedings are being challenged based upon the claim that the person who gave the final stamp of approval to move forward with the foreclosure action did not actually have knowledge of important facts of the case. That claim, if proven, could allegedly convert the authority’s “signature” into a “robo-signature”, thereby calling into question the validity of the foreclosure proceeding.

Fortunately, that rationale does not apply to the supervising broker’s signature on a real estate contract. Otherwise, we might have parties to real estate transactions claiming that their sales contracts were not valid because the supervising broker signed the document without reviewing and having knowledge of all the facts of the transaction. However, let’s ask ourselves this question: if the contract could be declared void because the supervising broker did not know all the facts of the transaction, would we have a lot of voidable contracts in the real estate business? Unfortunately, I’m concerned that we would.

Arkansas Real Estate Commission Regulation 10.4(d)(1) states:

“The preparation of instruments in connection with a real estate rental or sale and the closing of a sale by a licensee must be performed by or under the specific supervision of the principal broker.”

Arkansas Real Estate Commission Regulation 10.12(b) states:

“ (b) Every offer received must be signed by the licensee who receives it and by that licensee's supervising broker. Every acceptance must be signed by the listing licensee and that licensee’s supervising broker . (It is desirable for the supervising brokers of the selling licensee and listing licensee to review and sign each real estate contract before it is submitted to the seller, although that is not always possible. However, such supervising brokers shall review and sign the real estate contract as soon as possible after it is received, and, in all cases, prior to closing.)”

As for Timing for Supervising Broker Signatures, the Sooner the Better

There are often questions about when a supervising broker should sign the sales contract. The above regulation addresses that issue somewhat by stating that the brokers should always review and sign the contract prior to closing. However, the sooner a supervising broker signs a contract, the more apparent it becomes that the broker was involved in the transaction, thereby fulfilling his or her supervisory responsibilities. If a contract negotiation goes through several stages and parties are left holding multiple versions of the contract that do not include the supervising broker’s signature, it can appear that the broker is not supervising his or her agents. While it may not always be practical for the supervising broker to sign at each stage, as a matter of practice, a supervising broker should attempt to establish that he or she was supervising at the earliest stage possible. The broker’s signature does just that. Parties should be given copies of contracts as they sign them. If parties are left holding multiple copies of the contracts that are not signed by the broker, those copies will most assuredly be submitted to the Commission if the party files a complaint. It certainly looks better if those copies are signed by the supervising broker.

To sum it up, principal brokers and supervising executive brokers are responsible for knowing the facts of the sales contracts that are brokered by agents licensed with their firm.

When a commission investigator visits an office to review files, the supervising broker’s signature must appear on all sales contracts for closed transactions. The supervising broker’s signature should also appear on pending sales contracts, unless there is a good reason that the supervising broker has not had the opportunity to review and sign. The supervising broker’s signature establishes that the broker reviewed the document and was knowledgeable of the facts of the transaction. The concept of a robo-signature is simply not an acceptable option for supervising brokers in a real estate firm. The language of a formal ORDER OF NOTICE to appear before the commission would read something like “The supervising broker knew or should have known the facts of the real estate transaction”.

Always remember Commission Regulation 10.4(a)(1) which states:

“A principal broker is generally responsible for all business conducted by the broker’s firm and for all of the real estate activities of all of those licensed under or associated with the principal broker…”

NOTE: For purposes of this article, the term “principal broker” should be interpreted to include designated executive brokers of branch offices and the term “supervising broker” includes principal brokers, designated executive brokers of branch offices, and executive brokers who are assigned supervisory responsible over licensees in the firm.

House to House: Realtor® Survey Reports Sellers Experiencing Positive Returns



Photo provided by Arkansas Realtor® Dwayne Hatt



A recent survey by the National Association of Realtors® found that home buyers confirmed a long-term view of home ownership, the typical seller is experiencing positive returns and the vast majority of home owners see their property as a good investment. The 2010 National Association of REALTORS® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers.

Although typical sellers had been in their previous home for eight years, up from seven years in the 2009 study, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.

NAR 2010 President Vicki Cox Golder, said the pattern of home buyers taking a long-term view has solidified over the past few years. “This underscores two simple facts – home ownership encourages stability, and the longer you own, the better your investment.”

Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.

“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” Golder said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”

In the 2006 study, covering sellers during the close of the housing boom, 6 percent of sellers had owned their property for less than a year and a total of 30 percent had owned for three years or less. In the 2010 study, only 3 percent had owned their home for less than a year and a total of 11 percent had owned for three years or less.

Paul Bishop, NAR vice president of research, said the lion’s share of buyers view their home as a good investment. “Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” he said. “Even with the turmoil created by the housing boom and bust, this indicates the long-term view of home ownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.”

The next biggest reasons for buying, identified by all home buyers, were desire for a larger home, 9 percent; a change in family situation and the home buyer tax credit, cited by 8 percent each; a job-related move, 7 percent; and the affordability of homes, 6 percent. Twelve other categories were 5 percent or less.

The number of first-time home buyers rose to a record high 50 percent of all home sales from 47 percent in the 2009 study, building on success of the home buyer tax credit which began in 2009. The previous cyclical high for first-time buyers was 44 percent in 1991; records date back to 1981.

The Arkansas Realtors® Association, with thirty-seven local Realtor® Boards and Associations statewide, is the state arm of the Chicago- and Washington, D.C.-based National Association of Realtors®. Members of the National Association, the State Associations and the local Boards and Associations are identified by the registered membership term, “Realtor®” and pledge adherence to the Realtors® Code of Ethics.

The 2010 National Association of REALTORS® Profile of Home Buyers and Sellers survey can be ordered by calling 800-874-6500, or online at www.realtor.org/prodser.nsf/Research.

♦♦♦

House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors Association (http://www.arkansasrealtors.com/).

October 2010 Housing Market Report

The Arkansas Realtors® Association reports that Arkansas home sales are down 3% for the year through October as compared to sales for the same period in 2009. The average price for a single-family home in Arkansas rose almost 5% in October to $144,674 from $137,819 in October 2009. However, for the month home sales are down almost 27% as compared with October 2009 home sales. This matches up with reports from the National Association of Realtors® that home sales in the South are 24.0 percent below the year-ago surge. NAR also reports that the median price in the South was $148,700, down 0.7 percent from October 2009.

The following is a link to the full Arkansas Realtors Association report for 42 counties in Arkansas:
http://dl.dropbox.com/u/12295076/ARA_%20Housing_market_report_for_October_FINALwithWashingtonCountyChange.xls

Lawrence Yun, NAR chief economist, said the recent sales pattern can be expected to continue. “The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales. Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels,” he said. “Based on current and improving job market conditions, and from attractive affordability conditions, sales should steadily improve to healthier levels of above 5 million by spring of next year.”

The following is a link to the full NAR release on October sales: http://www.realtor.org/press_room/news_releases/2010/11/october_retreat

As always, please keep in mind that this is an approximation of the Arkansas housing market based on the information provided to the Association at the time of the report's distribution. Data is provided by Realtors® reporting through participating multiple listing services in Arkansas and while deemed reliable is not guaranteed.

House to House: Talking Fried, Baked or Smoked Turkey

The big topic around my house this week is whether to smoke, fry or bake our Thanksgiving turkey. We’ve all been recounting the various commercials where anecdotes are shared and statistics are given about how many houses burned down or turkeys exploded because someone tried to fry their turkey, didn’t know what they were doing and put the bird in the hot oil frozen.

According to the U.S. Department of Agriculture, more than 45 million turkeys are cooked and eaten at Thanksgiving. While I and my family love the crunchiness of a deep fried turkey, United Laboratories (UL) – the folks that have been testing, verifying, validating and inspecting thousands of products to keep us all safe since 1894 – does not certify any turkey fryers with its trusted UL Mark and urges consumers to take extra caution if they are going to use turkey fryers this holiday season.

According to the UL website, manufacturers have made strides toward enhancing product features in an attempt to make turkey fryers safer for consumers. These new features include designing non-heat conducting handles and sturdier stands; but, based on continued observation, turkey fryers still pose a considerable risk if not used correctly.

“We’re worried by the increasing reports of fires related to turkey fryer use,” said John Drengenberg, UL consumer affairs manager. “Based on our test findings, the fryers used to produce those great-tasting birds are not worth the risks.”

Great. Another aspect to add to the Great Bryant Holiday Bird Debate. According to United Laboratories, here’s why using a turkey fryer can be dangerous:

• Although some manufacturers have improved the stability of their fryers, some units could tip over, spilling as much as five gallons of hot oil out of the cooking pot.

• If the cooking pot is overfilled with oil, the oil may spill out of the unit when the turkey is placed into the cooking pot. Oil may hit the burner/flames, causing fire to engulf the entire unit.

• Partially frozen turkeys placed into the fryer can also cause a spillover effect, resulting in an extensive fire.

• Most turkey fryers have no thermostat controls, increasing their potential to overheat cooking oil to the point of combustion.

• The sides of the cooking pot, lid and pot handles get dangerously hot, posing severe burn hazards.

To the Bryant Boys and all those reading this column, I say again: Use extreme caution when using turkey fryers. If you absolutely must use a turkey fryer, here are some tips UL provides for safer use:

• Turkey fryers should always be used outdoors, located a safe distance from buildings and any other flammable materials.

• Never use turkey fryers on wooden decks or in garages.

• Make sure the fryers are used on a flat surface to reduce accidental tipping.

• Never leave the fryer unattended. Most units do not have thermostat controls. If you don’t watch the fryer carefully, the oil will continue to heat until it catches fire.

• Never let children or pets near the fryer when in use. After use, continue to exercise extreme caution as the oil inside the cooking pot can remain dangerously hot for hours.

• To avoid oil spillover, do not overfill the fryer.

• Use well-insulated potholders or oven mitts when touching pot or lid handles. If possible, wear safety goggles to protect your eyes from oil splatter.

• Make sure the turkey is completely thawed and be careful with marinades. Oil and water don’t mix and water can cause oil to spill over, starting a fire or even an explosion hazard.

• The National Turkey Federation recommends refrigerator thawing and to allow approximately 24 hours for every five pounds of bird thawed in the refrigerator.

• Never use water to extinguish a grease fire. Remember to use your best judgment when attempting to fight a fire. If the fire is manageable, use an all-purpose fire extinguisher. If the fire increases, immediately call 9-1-1 for help.

At my home the debate rages on. However, the turkey is purchased, it’s thawing and I’ve got the portable phone programmed to call 9-1-1 (even if I take over the turkey preparation responsibilities and try to bake one).

Here’s hoping all of us have a happy and healthy Thanksgiving.

Did You Remember? Change Smoke and Carbon Monoxide Alarm Batteries

Did you remember to change the batteries in your smoke alarms and carbon monoxide (CO) alarms when you changed your clocks last weekend? If not, do it today.

“Properly working smoke and carbon monoxide alarms can save lives by alerting you to a fire or to poisonous carbon monoxide in your home,” said Consumer Product Safety Commission Chairman Inez Tenenbaum. “In order to work properly, alarms need fresh batteries at least once every year.”

In addition to changing batteries every year, CPSC recommends consumers test their alarms monthly.

According to the CPSC, fire departments responded to an estimated 385,100 residential fires nationwide that resulted in an estimated 2,470 civilian deaths, 12,600 injuries and $6.43 billion in property losses annually, on average, from 2005 through 2007.

The National Fire Prevention Association also offers the following tips regarding installation, maintenance and testing of smoke alarms:

Installation

• At least one smoke alarm should be located on every level of the home, including the basement, as well as in every sleeping room and outside each sleeping area.

• NFPA strongly recommends either installing combination smoke alarms, or both ionization and photoelectric alarms, in the home. An ionization alarm is typically more responsive to a flaming fire, such as a pan fire. A photoelectric alarm is typically more responsive to a smoldering fire, as might occur where a lighted cigarette is dropped on a sofa. Combination smoke alarms have ionization and photoelectric capabilities.

• Whatever type of smoke alarms you choose, they should carry the label of a recognized testing laboratory.

• Interconnected smoke alarms offer the best protection; when one sounds, they all do. This is particularly important in larger or multi-story homes, where the sound from distant smoke alarms may be reduced to the point that it may not be loud enough to provide proper warning, especially for sleeping individuals.

• A licensed electrician can install either hard-wired multiple-station alarms, or wireless alarms, which manufacturers have more recently begun producing. An electrician can also replace existing hard-wired smoke alarms with wireless interconnection capabilities.

Maintenance and Testing

• Test smoke alarms at least once a month using the test button, and make sure everyone in your home knows their sound.

• If an alarm “chirps,” warning the battery is low, replace the battery right away.

• Replace all smoke alarms, including alarms that use 10-year batteries and hard-wired alarms, when they’re 10 years old (or sooner) if they do not respond properly when tested.

Outside your home, ADT Security Services offers the following advice for preventing fires:

• When buying, building or renovating your home, make sure all roofing materials are fire resistant.

• Clean your gutters regularly. Dry leaves and evergreen needles in rain gutters can easily catch fire.

• Trim back any tree limbs that are within 10 feet of your chimney and dead limbs overhanging your home to prevent them from catching fire.

• To prevent sparks or embers from wildfires from entering and igniting your home and triggering a residential fire alarm, place screens with openings of ½" or smaller over all attic and foundation vents.

• Store firewood and other combustibles away from your home, and keep the lid on your trash can.

• To make sure firefighters can find your house if a residential fire alarm is triggered. Post your address prominently.

• Maintain your landscape to eliminate dead vegetation that could catch fire and use fire-resistant plants.

♦♦♦

House to House is written by Amy Glover Bryant and distributed weekly by the Arkansas Realtors® Association.

House to House: Majority of Americans Believe Homeownership is a Solid Investment in their Future

By now you have no doubt seen the headlines that according to a recent report compiled and distributed by the Arkansas Realtors® Association, home sales in Arkansas are down 21 percent from the same time period last year.  

Blech.

The good news of the report is that the average price for a single-family home in Arkansas rose almost 4% in September to $145,690 from $140,534 and, at least for this far in the year, 2010 numbers have remained pretty-much unchanged.  In other words, it ain’t pretty but we’re holding our own.  

We at the ARA attribute the 4 percent increase in average home prices in part to Arkansas’s strong economy. The  Brookings Institution's MetroMonitor, a quarterly, interactive barometer of the health of America’s 100 largest metropolitan economies, recently ranked the Little Rock region the nation's fourth strongest.  The Brookings Institution ranked the 100 largest metros by averaging the ranks for four key indicators: employment change, unemployment change, gross metropolitan product, and home price change.

Don’t get me wrong, I don’t think we are out of the woods yet by a long shot.  All the economists I’ve heard from and Realtors® I’ve spoken to anticipate it being months before we are seeing strong home sales numbers again – as in next spring.  Or summer.

However, despite economic uncertainty and recent challenges in the real estate market, nearly eight out of 10 Americans believe buying a home makes good financial sense. This is according to a recent annual survey released by the National Association of Realtors^®. The 2010 National Housing Pulse Survey measures how affordable housing issues affect consumers. 

Predictably, job security concerns were among the highest in eight years of sampling. A majority of Americans said layoffs and unemployment are top concerns in their area and eight in 10 say those issues are barriers to homeownership.  The Arkansas Realtors® Association also cites job security as one of the main obstacles for consumers who are considering whether to buy, although homeownership is still a worthy long-term investment. 

“There is no doubt that job recovery is needed to get the economy and the real estate market back on track,” said Mike Henry, President of the Arkansas Realtors® Association. “However, despite employment concerns, Americans continue to believe that owning a home is part of the American Dream, and it is a dream they still strive to achieve. Homeownership has proven to offer many social benefits and build wealth over the long term.”

We here at the ARA think historically low interest rates and affordable home prices are attracting buyers to today’s housing market. According to the survey, more than one-fourth of renters say they are more serious about purchasing a home than they were a year ago. In addition, 63 percent of renter respondents say owning a home is a priority in their future, and nearly 40 percent say it is one of their highest priorities. 

Despite attractive prices and low rates, a majority of Americans, 79 percent, consider having enough money for down payment and closing costs to be among the biggest obstacles to owning a home. Survey respondents are also concerned about their ability to be approved for a loan. 

 “When deciding whether to buy a home, buyers should carefully evaluate their finances and get preapproved for a loan before beginning the search process,” said Henry who is also a Realtor® with Coldwell Banker Faucette-Fay in Fayetteville. “Realtors^® are a valuable source of information about the costs associated with buying and owning a home and can help consumers navigate the increasingly complex buying process.” 

The 2010 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program. The telephone survey was among 1,209 adults living in the 25 most populous metropolitan statistical areas. The study has a margin of error of plus or minus 3.1 percentage points.

House to House is written by Amy Glover  Bryant and distributed by the Arkansas Realtors^® Association.

NAR Home Buyer and Seller Survey Shows Value of Long-Term Home Ownership

Home buyers today have affirmed a long-term view of home ownership, the typical seller is experiencing positive returns and the vast majority of home owners see their property as a good investment, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2010 REALTORS® Conference & Expo.

The 2010 National Association of REALTORS® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers.

Although typical sellers had been in their previous home for eight years, up from seven years in the 2009 study, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.

NAR 2010 President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said the pattern of home buyers taking a long-term view has solidified over the past few years. “This underscores two simple facts – home ownership encourages stability, and the longer you own, the better your investment.”

Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.

“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” Golder said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”

House flipping is virtually nonexistent in today’s market. “The primary exception is for experienced investors, many of whom pay cash and are making renovations or improvements after a careful study of properties, neighborhoods and market demand,” Golder explained. “The house flipping and quick gains which occurred during the boom period were abnormal, driven by risky, easy-money financing that should never have been allowed in the market.”

In the 2006 study, covering sellers during the close of the housing boom, 6 percent of sellers had owned their property for less than a year and a total of 30 percent had owned for three years or less. In the 2010 study, only 3 percent had owned their home for less than a year and a total of 11 percent had owned for three years or less.

Paul Bishop, NAR vice president of research, said the lion’s share of buyers view their home as a good investment. “Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” he said. “Even with the turmoil created by the housing boom and bust, this indicates the long-term view of home ownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.”

The next biggest reasons for buying, identified by all home buyers, were desire for a larger home, 9 percent; a change in family situation and the home buyer tax credit, cited by 8 percent each; a job-related move, 7 percent; and the affordability of homes, 6 percent. Twelve other categories were 5 percent or less.

The number of first-time home buyers rose to a record high 50 percent of all home sales from 47 percent in the 2009 study, building on success of the home buyer tax credit which began in 2009. The previous cyclical high for first-time buyers was 44 percent in 1991; records date back to 1981.

The profile shows the median age of first-time buyers was 30 and the median income was $59,900. The typical first-time buyer purchased a 1,540 square foot home costing $152,000, with 93 percent using the first-time buyer tax credit.

First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 27 percent received a gift from a friend or relative, typically from their parents, and 9 percent received a loan from a relative or friend. Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-five percent chose a fixed-rate mortgage.

The shares of entry-level buyers receiving a gift or loan were modestly higher than 2009 when 22 percent received a gift and 6 percent a loan from a relative or friend. “It appears more parents were motivated to help their children to take advantage of the home buyer tax credit and very favorable affordability conditions,” Bishop said.

Fifty-six percent of entry level buyers financed their purchase with an FHA loan, while another 7 percent used the VA loan program. Forty-two percent said financing their first home was more difficult than expected and 9 percent had been rejected by a lender.

Fifty-eight percent of all buyers are married couples, 20 percent are single women, 12 percent single men, 8 percent unmarried couples and 1 percent other.

Bishop noted that women buyers have accounted for roughly one out of five transactions since the late 1990s, and single men have been at the one in 10 level since 1981. “A modest increase in the share of single men buyers may result from the home buyer tax credit, but this is the highest share for single men in the history of the study,” he said.

Buyers searched a median of 12 weeks and viewed 12 homes. Fourteen percent of buyers own two or more homes.

The typical repeat buyer was 49 years old, earned $87,000, and purchased a 2,000 square foot home costing $215,000.

The median downpayment of all home buyers was 8 percent, ranging from 4 percent for first-time buyers to 14 percent for repeat buyers.

The median age of home sellers was 49 and their income was $90,000. Sellers moved a median distance of 18 miles and their home was on the market for 8 weeks, down from 10 weeks in the 2009 survey. Half traded up in size, 28 percent bought a comparably sized home and 21 percent traded down.

Sixty-four percent of sellers chose their agent based on a referral or had used the same agent in the past. Reputation was the most important factor in choosing an agent, cited by 35 percent of respondents, followed by trustworthiness at 23 percent. Eighty-four percent of sellers are likely to use the same agent again or recommend to others.

Forty-four percent of sellers offered incentives to attract buyers, such as home warranties or assistance with closing costs. The typical home sold for 96 percent of the listing price, compared with 95 percent in the 2009 profile.

Home buyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. Buyers also most commonly choose an agent based on a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors.

Buyers use a wide variety of resources in searching for a home: 89 percent surf the Internet, 88 percent use real estate agents, 57 percent yard signs, 45 percent attend open houses and 36 percent look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online and then contact an agent.

When asked where they first learned about the home purchased, 38 percent of buyers said the Internet; 37 percent of buyers from a real estate agent; 11 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 4 percent home builders; 2 percent a print or newspaper ad; 2 percent directly from the seller; and less than 1 percent from a home book or magazine.

Eighty-five percent of home buyers who used the Internet to search for a home purchased through a real estate agent, while 70 percent of non-Internet users were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.

Local metropolitan multiple listing service websites were the most popular Internet resource, used by 59 percent of buyers; followed by Realtor.com, 45 percent; real estate company sites, 43 percent; real estate agent websites, 42 percent; other websites with real estate listings, 41 percent; and for-sale-by-owner sites, 15 percent; other categories were smaller.

Seventy-seven percent of all buyers purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 6 percent some other kind of housing.

Commuting costs continue to factor strongly in buyer decisions, with three-quarters of buyers saying transportation costs were important.

Environmentally friendly features remain a significant factor: 88 percent of buyers said that heating and cooling costs were important, 71 percent desired energy efficient appliances, and 69 percent wanted energy efficient lighting.

Fifty-two percent of all homes purchased were in a suburb or subdivision, 18 percent were in an urban area, 17 percent in a small town, 11 percent in a rural area and 1 percent in a resort or recreation area. The median distance from the previous residence was 12 miles.

Not surprisingly, for-sale-by-owner transactions reached a record low, accounting for 9 percent of sales in the 2010 study, down from 11 percent in 2009. The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18 percent in 1997. “In a market as challenging as today, it’s clear most home sellers need professional assistance,” Bishop said.

As seen in previous studies, many FSBO properties were not placed on the open market. Factoring out private sales between parties who knew each other in advance such as family or acquaintances, the actual number of homes sold on the open market without professional assistance was a record low 5 percent – the rest were unrepresented sellers in private transactions. The market share of open-market FSBOs is half of what it was six years ago – 10 percent were sold on the open market in 2004.

The median home price for sellers who used an agent was $199,300 vs. $140,000 for a home sold directly by an owner, but there were important differences. The median income of unassisted sellers was $64,000, in contrast with $93,200 for agent-assisted sellers. Unassisted sellers were much more likely to be selling a somewhat smaller home, and they were more likely to be in a rural area. Combined, these factors suggest a lower value for FSBO properties.

The most difficult tasks reported by unrepresented sellers are getting the right price, preparing and fixing the home for sale, understanding and performing paperwork, and selling within the planned length of time.

NAR mailed an eight-page questionnaire in July 2010 to a national sample of 111,004 home buyers and sellers who purchased their homes between July 2009 and June 2010, according to county records. It generated 8,449 usable responses; the adjusted response rate was 7.9 percent. All information is characteristic of the 12-month period ending in June 2010 with the exception of income data, which are for 2009. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.

The 2010 National Association of REALTORS® Profile of Home Buyers and Sellers can be ordered by calling 800-874-6500, or online at www.realtor.org/prodser.nsf/Research. The study is free for NAR members though the end of 2010 but costs $125 for non-members.

Got Debt? Arkansas AG Offers List of Easy Solutions

If it sounds too good to be true and quite often it is: debt relief, debt settlement, and debt negotiation company ads claim that the companies they represent can reduce or eliminate your unsecured debt. On October 27, 2010, new amendments to the Federal Trade Commission's Telemarketing Sales Rule went into effect. These amendments prohibit for-profit debt relief companies from charging advance fees before completing the services they claim to provide. Today, Attorney General Dustin McDaniel released this consumer alert, providing updated information for Arkansas consumers on the FTC’s new rules.

“While debt relief services may seem like an attractive option to consumers looking to regain financial security, my office, the FTC, and other consumer protection agencies have found many of these services cannot follow through on their advertised promises,” McDaniel said. “Many providers’ advertisements and ensuing telemarketing pitches include false, misleading, or unsubstantiated representations.”

The FTC found that a large percentage of customers who enrolled in such plans failed to obtain results represented by the company. “The most important element of the new rule is a prohibition on the charging of any fee before the promised services are delivered,” McDaniel added.

The amended rule covers telemarketers of for-profit debt relief services, including credit counseling, debt settlement, and debt negotiation services. The rule does not cover nonprofit firms, but does cover companies that falsely claim nonprofit status. The rule applies to both outbound calls, as well as inbounds calls made by consumers as a result of advertising.

To learn more about the new FTC rules, visit http://www.ftc.gov/opa/2010/10/debtrelief.shtm.

If you are burdened by debt, here are some tips to remember:

• Talk to your creditors directly. Often times they will lower your interest rate upon request and some may be willing to work out a modified payment plan.

• Talk to a legitimate non-profit credit counseling service. These organizations will work with you to come up with a monthly payment plan to satisfy all of your unsecured creditors. Counseling organizations may require a relatively small fee for this service. Beware of any service that charges a substantial fee up front.

• Talk to an attorney. An attorney can also advise you as to your financial options, especially if you are considering filing bankruptcy.

If you are unsuccessful in managing your debt, bankruptcy may be the appropriate option. However, you should be aware that bankruptcy information stays on your credit report for years, and can negatively impact your ability to complete basic but essential financial transactions like getting a new car or home. It can also impact your career, as many employers review credit reports before hiring candidates. For more information about bankruptcy, visit http://www.uscourts.gov/bankruptcycourts.html.

If you have questions about or are unsatisfied with a debt relief service, contact the Public Protection Department of the Attorney General's Office at 501-682-2341 or toll-free statewide at 1-800-482-8982.

This year, NAR is teaming up with two great organizations – New Orleans Habitat for Humanity® and Rebuilding Together® New Orleans – to rebuild and restore homes for deserving families. Kent Dover, Cindy Magnoni Meyers and Andy Meyers from the Arkansas Realtors® Association sent these photos back to the Little Rock office.

House to House: Today’s Home Buyers Experience Significant Benefits, Savings

Buying a home can be a life-changing decision and one that many people take seriously, especially in this market. Part of becoming a responsible homeowner is weighing every aspect of the decision before buying, including lifestyle preferences, job and financial situation and affordability. Fortunately for anyone who’s considering buying a home right now, current housing affordability conditions can benefit today’s buyers for years to come.

According to economists at the National Association of Realtors®, NAR’s housing affordability index could potentially reach an all-time high of near 200 in the second half of this year. That means that a household making the median income today would have twice the income necessary to buy a median-priced home in the U.S. Historically, over the past 40 years the average affordability index was 118.

The Arkansas Realtors® Association says housing affordability has increased recently due to rock bottom mortgage rates – the lowest on record. Rates for a 30-year fixed-rate mortgage are hovering around 4.4 percent. The average wage rate has made modest gains- as well. Despite the high unemployment rate, the average wage rate rose three percent in 2009 and is up 1.2 percent this year-to-date.

“For people who are ready to buy, today’s housing affordability is really helping them invest in their future through homeownership,” said Andy Meyers of Meyers Realty in Hot Springs and President-elect of the Arkansas Realtors® Association. “On a nationwide basis, the affordability conditions have risen to compelling levels. In Arkansas, as in the rest of the country, it truly is a buyer’s market. Prices are low and there are plenty of fantastic homes from which to choose.”

Today’s affordability conditions are saving buyers thousands of dollars a year. Consider a buyer who purchased a median-priced home five years ago with an FHA mortgage. With the required 3 percent down payment for an FHA mortgage, their monthly payment would have been $1,650. Today, with the current interest rate and median prices, that buyer would pay a monthly mortgage of $1,150. That equals a $500 savings per month or a $6,000 savings per year.

“The savings today’s buyers are receiving are not a one-time benefit,” said Meyers. “Buyers with fixed-rate mortgages will save money every year they are living in their home. This is truly an example of how homeownership builds wealth over the long term.”

In addition to favorable affordability conditions, there have been 763,000 private sector job creations from the beginning of the year to August. NAR says affordability and job creation are a move in the right direction for the housing market.

“Of course, jobs must return to the market for many Americans to even consider homeownership,” said Meyers. “But buyers who have reviewed their finances and believe they are in a secure position to become homeowners have an opportunity to take advantage of affordability conditions in today’s market and enjoy the social and financial benefits of homeownership for years to come.”

Want to learn more about the benefits of home ownership? Ask your local Realtor® or visit www.ArkansasRealtors.com for a list of 10 Reasons You Should Buy A Home Now.

♦♦♦

House to House is written by Amy Glover Bryant and distributed weekly by the Arkansas Realtors® Association.

• 

  5 Steps to Owning a Home Again After Foreclosure

  Foreclosure is just a one-time event—with discipline and perseverance, you can get a mortgage and become a homeowner again. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Arkansas Home Sales Remain Flat for Year to Date

The following is a link to the September 2010 Housing Market Report from the Arkansas Realtors® Association.

http://dl.dropbox.com/u/12295076/SeptemberHousingMarketReport_FINAL.xls

The Arkansas Realtors® Association reports that Arkansas home sales in September 2010 remained 21 percent below the state's September 2009 pace when home-buyers were ramping up in advance of the initial deadline for the tax credit last November. The average price for a single-family home in Arkansas rose almost 4% in September to $145,670 from $140,543 in September 2009. For the year, Arkansas continues to remain relatively flat in terms of number of units sold, home valuations and average prices through the end of September. The National Association of Realtors® reported earlier this week that home sales in the South were 14.9 percent lower than September 2009 and that the median price in the South was $149,500, down 2.6 percent from a year ago.

The ARA attributes the 4 percent increase in average home prices in part to Arkansas’s strong economy. The Brookings Institution's MetroMonitor, a quarterly, interactive barometer of the health of America’s 100 largest metropolitan economies, recently ranked the Little Rock region the nation's fourth strongest. The Brookings Institution ranked the 100 largest metros by averaging the ranks for four key indicators: employment change, unemployment change, gross metropolitan product, and home price change.

The full MetroMonitor report can be found at http://www.brookings.edu/~/media/Files/Programs/Metro/metro_monitor/2010_09_metro_monitor/0915_metro_monitor.pdf

In commenting on the national home sales numbers for September, NAR Chief Economist Lawrence Yun said the housing market is in the early stages of a recovery stating that the housing market's recovery "will be choppy at times" but that the overall direction of the housing market "should be a gradual rising trend in home slaes with buyers responding to historically low mortgage interest rates and very favorable affordablity conditions."

"Mortgage rates are at record lows making it a great time to buy a new home," said Andy Meyers of Meyers Realty in Hot Springs and President-elect of the Arkansas Realtors® Association. "A 30-year, conventional, fixed-rate mortgage fell to 4.35 percent in September from 4.43 percent in August. For people who are ready to buy, today's housing affordability is really helping them invest in their future through homeownership. In Arkansas, as in the rest of the country, it truly is a buyer's market. Prices are low and there are plenty of fantastic homes from which to choose."

The following are links to graphics developed by the Arkansas Geographic Information Office of September's data:

http://dl.dropbox.com/u/12295076/Units%20Sold%202010%20YTD.bmp

http://dl.dropbox.com/u/12295076/Value%20of%20Units%20Sold%202010%20YTD.bmp

http://dl.dropbox.com/u/12295076/Avg%20Price%20Units%20Sold%20Sept.bmp

As always, please keep in mind that this is an approximation of the Arkansas housing market based on the information provided to the Association at the time of the report's distribution. Data is provided by Realtors® reporting through participating multiple listing services in Arkansas and while deemed reliable is not guaranteed.

Arkansas Residents Rank Last On Credit Scores

This just in from Attorney General Dustin McDaniel's office: According to at least one nationwide study, Arkansas residents rank last when it comes to credit scores. The study reveals that the national credit score average is 666, while the Arkansas average is only 636. Attorney General Dustin McDaniel today released this consumer alert offering advice for Arkansas consumers on how to improve low credit scores

Credit scoring is a system used by the major credit bureaus to provide a summary of a consumer’s credit history. Many creditors make the decision to extend credit and set credit terms based on an applicant’s credit score. While different credit bureaus have different credit scoring systems, all are influenced by a consumer’s bill-paying history, the number and type of accounts a consumer has, late payments, collection actions, outstanding debt, debt-to-income ratio, and the age of existing accounts. Generally, consumers with higher credit scores are more likely to receive higher credit allowances and better credit terms.

A low credit score may present several disadvantages for consumers, including difficulty obtaining a loan or higher interest rates on borrowed money. However, a low credit score can be improved. Attorney General McDaniel offers the following tips:

Review your credit report. Get a copy of your credit report so you are aware of what creditors will see. A free copy of your credit report is available at www.annualcreditreport.com or you can call toll free: 1-877-322-822. Errors or inaccurate information can impact your ability to get credit and affect your finance rate.

Clean up your credit report. If a credit report contains incorrect or obsolete information, consumers have the right to have it removed. Contact the credit reporting company in writing, specifically outlining inaccurate information. Maintain copies of all correspondences for your personal records.

Resolve delinquent accounts and keep up with payments. Payment history can constitutes 35 percent of an overall credit score; outstanding debts can comprise 30 percent. Focus on keeping your payments current and paying off debts in a timely fashion.

Stop using your card. Keeping your credit cards “maxed out” will negatively impact an already damaged credit score.

Keep older accounts. Credit history length can constitute 15 percent of a credit score. Do not completely close out older but seldom-used credit card accounts, as keeping older cards without incurring additional charges may improve your rating.

Lower balances. Make an effort to keep credit balances as low as possible. Your credit score takes into account the amount of credit available compared with how much credit actually utilized. The less you're using, the better for your score

Get professional help. If you are overwhelmed by your credit situation, seek professional assistance.

For more information, contact the Consumer Protection Division of the Attorney General’s Office at Suite 200, 323 Center Street, Little Rock, AR 72201. The office can be reached by calling 682-2341 (Little Rock) or 1-800-482-8982.

House to House: Raise Your Awareness about Lead Exposure

The National Association of the Remodeling Industry (NARI) is helping to raise awareness of the dangers of lead exposure by observing National Lead Poisoning Prevention Week (NLPPW) on October 24-30, 2010. In light of the new law mandated by the U.S. Environmental Protection Agency (EPA), called Lead Renovation, Repair, Painting Rule (LRRP), this year’s efforts are even more worthwhile to encourage consumers to hire lead certified remodelers when remodeling a home built prior to 1978.

According to the Centers for Disease Control and Prevention (CDC), childhood lead poisoning is considered the most preventable environmental disease among young children, yet an estimated 250,000 U.S. children have elevated blood-lead levels.

Since April 22, 2010, the EPA placed the LRRP rule into effect, and by the end of this year, contractors must go through an 8-hour training to certify at least one person in the firm to supervise the renovation of target housing (pre-1978) homes, and the contracting firm must be a Certified Firm with the EPA if they intend to work in pre-1978 homes.

In honor of National Lead Poisoning Prevention Week (October 24-30, 2010), NARI is providing this checklist to minimize lead exposure for renovations and remodeling by homeowners living in pre-1978 homes:

• Verify that your contractor’s firm is registered with the EPA unless your state has taken over their own lead safety program, in which case the certification process may be slightly different. To find out if your state is working under its own lead program, visit http://www.epa.gov/lead/pubs/renovation.htm#authorized.

• Verify at least one person in your contractor’s firm is a Certified Renovator and has documented the training of the work crew, and is supervising the work being completed in the home.

• Know that these certifications must be accessible at the work site at all times.

• The contractor’s firm must post signs before renovation begins, clearly defining the work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area.

• Make sure you understand and sign the EPA’s “Renovate Right” brochure.

• Remove all belongings from the immediate area of the renovation.

• Notice if your contractor is using plastic sheeting that is taped 6 feet beyond the perimeter of surfaces undergoing renovation; reusable cloth coverings are not acceptable.

• Renovators should be cleaning up and mopping daily to minimize dust contamination.

• Contractors must use HEPA vacuums and/or wet mopping to remove lead particles.

• All contaminated materials should be placed in heavy duty plastic bags before your contractor disposes of them.

Even if renovation isn’t in your home’s immediate future there are a few simple steps like getting your home tested for lead, keeping your home clean and feeding your family a well-balanced diet that will go a long way in preventing lead poisoning. You can begin right now, by taking these steps:

• Keep your home clean and dust-free.

• Wipe up any paint chips or visible dust with a wet sponge or rag. Clean dust around areas where there is friction and dust can be generated, such as doors, windows, and drawers.

• Wash children's hands, bottles, pacifiers and toys often.

• Teach children to wipe and remove their shoes and wash hands after playing outdoors.

• Ensure that your family members eat well-balanced meals. Children with healthy diets absorb less lead.

To learn more about testing your child’s lead levels, testing your home for lead for lead or preventing health effects related to lead exposure visit http://www.cdc.gov/nceh/lead/nlppw.htm.

♦♦♦

House to House is written by Amy Glover Bryant and distributed weekly by the Arkansas Realtors® Association (http://www.arkansasrealtors.com/)

Americans Still Believe Buying a Home Is a Good Financial Decision

The National Association of Realtor's eighth annual Housing Opportunity Pulse Survey reveals that nearly eight out of 10 respondents believe buying a home is a good financial decision, despite ongoing challenges with the economy and housing market. The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program.

Click here to read more.

House to House: Does Your Home Pass the Sniff Test?

When it comes to selling your house, it is the little things that can make a big difference in whether you obtain the price you are wanting for your property and in how long it takes to sell it.

With this in mind, I emailed a handful of my favorite Arkansas Realtors® and asked for their advice on how to prepare a home for sale. Much to my surprise they all focused on the importance smell has on a potential buyer’s impression of your property.

According to the Scent Marketing Institute, the sense of smell is the strongest and most primal of all our senses. It protects us from drinking milk that’s turned sour and alerts us to the presence of natural gas. It vividly reminds us of moments – good or bad – we first experienced decades ago. It is the first of our senses to evolve in the evolutionary chain and the sense with the strongest, most accurate level of recall.

In marketing, scent can trigger a memory or desire that influences a purchase decision. Alternatively, scent can remind us of pleasant associations, whether that is "home", the beach or a meadow. These associations help to create an environment in which we feel comfortable, "at home” so it only makes sense that as a seller you want to make sure visitors to your home are breathing in the right scents.

“A home’s smell has a tremendous impact on what a buyer thinks of your home,” said Paulette Richie, Executive Broker, Coldwell Banker RPM. “Your home needs to smell clean, even new if possible.”

To achieve a new-like smell, Richie recommends applying a fresh coat of polyurethane to natural wood surfaces or latex paint to walls. Kelli Small, an Associate Broker with McDowell Properties in Conway, recommends cleaning out all the clutter from closets and losing the moth balls.

Want your buyer to feel safe, secure and nostalgic? According to the Scent Marketing Institute you should introduce a talcum powder scent to your environment. Want them to relax? Choose lavender, vanilla or chamomile. Want to get your buyer to perceive a room as bigger? The smell of apples and cucumbers.

To eliminate the possibility of foul odors taking over, Laurie Rushing, Executive Broker with Trademark Real Estate in Hot Springs, recommends bathing your pets, changing the litter box frequently, shampooing carpets and emptying trash cans, recycling bins and ash trays. “Introduce pleasing smells to your home by placing fresh flowers throughout the house and refraining from cooking fish or other strong-smelling foods.”

So what is the smell that supposedly will get them in the mood for buying a home? Fresh baked goods.

For more information on scent marketing readers can visit the scent marketing web site at http://www.scentmarketing.org/.

♦♦♦

House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors® Association.

Navigating the Foreclosure Upheaval

Given the daily headlines on the foreclosure freeze it’s easy to lose sight of that fact that most lenders are not putting a halt to their foreclosure processing. Earlier this week Robert Freedman, senior editor of REALTOR magazine, sat down with his colleagues Jeff Lischer, NAR’s managing director of regulatory policy, and Paul Bishop, NAR’s vice president of research, to get their take on what’s happening with the foreclosure freeze.

Here's a link to their conversation.

Arkansas AG Joins Multistate Review of Foreclosures

Arkansas Attorney General
Dustin McDaniel

Attorney General Dustin McDaniel today announced that he has joined a multistate review into possibly improper practices within the mortgage service industry.

The group of attorneys general in 49 states, and state banking and mortgage regulators in 30 states, will explore whether individual mortgage servicers have improperly submitted documents in support of foreclosures. Specifically, the group will look into whether companies misrepresented on affidavits and other documents that they reviewed and verified supporting foreclosure documentation, whether companies signed affidavits outside the presence of a notary public, and whether the company was actually the appropriate entity to pursue a foreclosure, along with other possible issues regarding servicing irregularities or abuses.

"We realize that some foreclosures are necessary, but given the importance of the property right at risk, the process leading to a foreclosure is a serious one and should be above reproach," McDaniel said. "Our office has joined this investigation in order to make sure that foreclosing entities have fully complied with our laws."

Some of the concerns to be addressed -- such as the practice of "robo-signing" affidavits -- may not be applicable to some Arkansas foreclosures, which are pursued outside the court system through the state's statutory foreclosure process.

However, McDaniel said participation in the review may help identify other concerns about the process.

The multistate group will contact a comprehensive list of individual mortgage servicers. The group's initial objectives include:

•Put an immediate stop to improper mortgage foreclosure practices.

•Review past and present practices by mortgage servicers subject to the inquiry.

•Evaluate potential remedies for past practices and to deter future improper practices.

•Establish a mechanism for more effective independent monitoring of future mortgage foreclosure practices.

Fowler says real estate auctions solid alternative for some sellers

Nick Fowler,
Fowler Auctioneers

Nick Fowler of Fowler Auctioneers, with offices in Hot Springs and Glenwood, has seen a surge of real estate auctions over the past few years. Fowler says some sellers might consider an auction as an alternative to a traditional, negotiated transaction. Why has Fowler seen success with his company?

Find out in this article from this week's Daily Record.

Arkansas Realtors® Working to Restore Communities

Arkansas Realtors® play an important leadership role in building our communities, sharing their time and talents to help those in need and improve the communities in which they live and work. One such program created by the Arkansas Realtors® community, Project Realtor Restore, is a unique program designed to bring together Realtors®, public works entities in their communities, police, churches, school organizations, civic groups and private volunteers to improve the quality of life with little or no costs.

The program design is simple and effective. Most communities, both large and small, have areas in need of some improvement. Sometimes it’s as simple as cleaning a city park area, but can be as labor-intensive as cleaning several city blocks in areas that have become blighted. With Project Realtor® Restore the ground-work is laid by a Realtor® coordinator. The Realtor® and other community volunteers arrive for clean-up day, do their job, are fed lunch and sent home. It’s simple, it’s safe, it’s fulfilling and provides a much-needed community service.

Not only are Realtors® helping to identify ‘problem’ areas in their communities, they are also working side-by-side with others in their communities to solve problems. "It is wonderful to see how a community can get behind the clean up,” said Paragould Realtor Sandra Kelley. “Sometimes it's just that little spark that can turn a neighborhood around.”

The program began in 1999 when Jonesboro City Councilwoman Judy Furr and Sgt. Larry Rogers of the Jonesboro Police Department started looking for ways to put a program together that would clean up neighborhoods, instill pride in residents and reduce crime rates. In 2008 Furr presented a statewide version of her local program to the Arkansas Realtors® Association and the program was adopted by local Realtor® boards throughout the state.

“We have had a tremendous response to the program throughout the state of Arkansas,” said Kelley. “Over the years the program has been highly successful and has seen thousands of tons of trash hauled away and neighborhoods restored – all done with volunteers, city services and the will to make the community a better place to live. Volunteers look forward to the Saturday morning project and some have participated for the full eight years.”

For more information on Project Realtor® Restore and how Realtors® can collaborate with your community to help ensure safe, clean living environments, contact your local Board of Realtors® or the Arkansas Realtors® Association at www.ArkansasRealtors.com.

♦♦♦

House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors® Association.

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Believing in Hot Springs Brings Two Companies Together

          “We Believe in Hot Springs!” was the theme of today’s announcement by Rector Phillips Morse, Inc. (RPM), that it has completed a merger with the Hot Springs commercial real estate operations of PDC Companies, Inc. The sentiment clearly expressed a commitment to the growth and progress of the area through commercial real estate development and sales.
            The merger of the two firms has formed Coldwell Banker Commercial RPM, which brings to Hot Springs and the surrounding Diamond Lakes Region a collaborative network of independently owned and operated affiliates focusing on commercial real estate. RPM and PDC now become part of the Coldwell Banker Commercial organization, comprising over 220 companies and more than 3,400 professionals throughout the U.S., as well as internationally. In fact, Coldwell Banker Commercial has the largest geographic footprint in today’s commercial real estate marketplace.
            Speaking at a luncheon organized to announce the merger and bring the two staffs together, RPM’s president, Pete Hornibrook, said, “Our company was formed in 1955, and we have participated in the growth of Hot Springs since the early 1960s. Hot Springs gave RPM the opportunity to develop the first-ever condominium project in Arkansas. The year was 1962, and the development was Baywood Colony on Lake Hamilton. Since that time, we have continued to grow our residential sales here, and now will participate even more with the region’s largest real estate company dedicated to commercial development.”
            RPM’s residential sales office in Hot Springs now numbers 19 agents. With six commercial agents, the residential and commercial sales offices will have a combined sales and brokerage staff of 25, to be located in the former PDC offices at

401 Section Line Road

.
            “Residential sales has been our focus for over 50 years,” said Robin Miller, president of Coldwell Banker RPM, the residential arm of the company. “We have grown that presence in Hot Springs, and now complement it with commercial brokerage, rounding out our full-service approach to all types of real estate transactions.” RPM has seven offices in central Arkansas, including mid-town Little Rock, west Little Rock, North Little Rock, Maumelle, Cabot, Saline County, and Hot Springs.
            PDC Companies, operating as Phillips Development Corporation, entered the Hot Springs market in 2001 with the purchase of Selig Commercial Real Estate. The company changed its name to PDC in 2008. In addition to commercial real estate, PDC operates a multi-family division, which owns and operates 63 apartment properties in Arkansas, Kentucky and Missouri.
            “We are thrilled to now be associated with RPM and Coldwell Banker Commercial,” said Elizabeth Small, president and CEO of PDC Companies. “The combined strength of the new Coldwell Banker Commercial RPM will bring an even greater partnership to the business community of Hot Springs. We believe in Hot Springs!”
            Hornibrook confirmed that continuing the effective stewardship of current clients’ assets is the number one goal of the new company. Listing commercial properties for sale, locating investment properties for clients, and developing new commercial projects will bring to Hot Springs more opportunities to be viewed as a dynamic commercial center in southwest Arkansas. The merger of the two companies is scheduled to close on October 6, 2010.