How Do I Select a Good Home Inspector?

Experience, skill and personalities of inspectors vary greatly, so we recommend you do your diligence before hiring an inspector, and verify the following information:

 

Is the inspector properly licensed and certified?

Make sure the inspector is state-licensed (if required in your state) and/or certified by an appropriate national professional association, such as the National Association of Home Inspectors (NAHI) or the American Society of Home Inspectors (ASHI).

Does the company carry General Liability (GL) and Errors and Omissions (E&O) insurance?

Appropriate risk insurance protects businesses, clients, and property owners.   Do not assume that the inspector has the appropriate insurance, as some inspectors may not carry insurance.   Check the inspection company’s insurance status before signing a contract with them.

How and when are the inspection reports delivered?

Inspection reports should be clear, concise, easy-to-read and available quickly. You’ll want to have a clear understanding of the condition of the home prior to the expiration of the contingency period of your real estate contract.   Ask whether they deliver the reports on site or via e-mail soon after the inspection.

Does the report provide a summary of defective items and pictures?

The report should provide a summary of defective items &/or concerns about the property (as often they are not “defects” but possible items to be addressed as a preventative measure, etc).   This “summary ” allows you to easily see what functional &/or safety concerns exist with the property. Additionally, digital cameras allow inspectors to effectively illustrate their reports, especially items that are difficult to describe.   No other item has so positively affected communication of reports in recent years as the digital camera!

What is the inspector’s experience and background?

Inspectors should have attended an in-depth training course to learn how to perform home inspections. They should also have an excellent experience base and ideally be part of an organization with a strong continuing education program.   Find out how long the inspection company has been in business, and what education, certifications, and experience the home inspector that will be conducting your inspection has. 

Can you order more than one inspection at the same time?

Check to see if the inspection company can save you time by offering multiple types of inspections on the same day, such as radon, mold, and termite inspections.

Is the fee too high?   Is the fee  too low?

Some inspectors will attempt to compete based on price, particularly if they are new to the inspection business.   Although price is a concern, all inspectors are not “created equal.”   The $25, $50, or even $100 price differential to hire the “right” inspection company is minimal compared to the thousands of dollars it could cost you if you hire the wrong inspection company.   Be careful though - pricing is not a true indicator as to the competency of the inspector, so do not make the assumption that an inspector is under-qualified because they have a more competitive price than another, or that an inspector is “better” because they charge more. 

Does the company encourage you to attend the inspection?

Attending the inspection is a great opportunity for you to learn first-hand what is included in the inspection and about the systems and components in the house you are purchasing.   Be wary of inspectors that do not include you in the inspection process.

Is it a well-established inspection company?

Well-established inspection companies have more availability for inspections, especially for those needed immediately.   Additionally, they have the resources to provide ongoing training to their inspectors, and comprehensive post-inspection customer service to you.

Waiting Periods to buy a new home after a Short Sale or Foreclosure

Good Afternoon Homebuyers! 

We are frequently asked the same question by people who lost their home due to a short sale, foreclosure, or bankruptcy: "When can I buy a qualify for a new mortgage?" The answer is it depends... But don't be discouraged, our friends at W.J. Bradley Mortgage created this easy to understand flyer on when you may qualify for a new loan. Please feel free to contact us with any questions or to get the process of finding you a new home started today!

5 inexpensive ways to prep your home for sale

Neutralize it:  Bold colors can look great, but it limits your appeal to certain buyers.  Having an Artichoke colored kitchen may go wonderfully with your theme, but it could make the buyer feel a little green at the thought of staring at it every day.  A coat of paint in a neutral color can go a long way to broaden the number of people who enjoy the way it looks and may propel them to write an offer. ($30-$100)

Give it the white glove inspection:   When it comes to preparing your home, a clean home will sell faster and for more money every time.  Buyers want to see pride of ownership and they want to see how much space they’ll have, not how small the closets are because you have 10 shirts laying on the bed. Vacuuming, dusting, and cleaning anything that shines, sparkles, or reflects (Faucets, counters, mirrors, windows, etc) is a fast and easy way to keep the buyers looking. ($0)

Make it Beautiful:  The exterior is your homes handshake to the buyer.  It is both the first and the last impression a buyer has of your home, so it’s important to have it looking it’s best.  Cutting back trees, pruning bushes, raking leaves, and cutting the grass will improve the buyer’s opinion of your house even before they set foot inside.  For extra points, planting a few flowering biennials in the winter months is an inexpensive way to add a fresh touch to a dormant yard in the middle of winter. ($0-$30)

Fix it:  Be proactive; fix the leaky faucets, running toilets, squeaky doors and broken light switches before listing your house.  Don’t think the buyers won’t notice, because they, their agent, or the inspector will. ($0-$150)

Stage it:  The potential buyer will visualize their furniture where yours is now.  Get rid of unneeded pieces of furniture, by selling them, hosting a garage sale, or donating them.  Move the furniture around, see which orientation makes the room feel most open and inviting.  Clean up the garage (this is often an overlooked area) by renting a storage unit or asking a family member to stow excess items for a few months.  ($0-$50)

Does Your Neighbor's Pool Resemble A Swamp?

Is there a swimming pool in your neighborhood that resembles a swamp?  Is it breeding harmful bacteria, mosquitos, and possible diseases?  If that is the case, notify your local health department.  In Clark County, call Code Enforcement at (702) 455-4191.  They will look into the matter and take the necessary steps to keep your neighborhood safe. 

It's HOT HOT HOT out there! Hot weather, hot market...hot all around!

Heaven help us, it's HOT HOT HOT out there!  Hot weather, hot market...hot all around!

 

Hot weather......   Just a reminder to pay close attention to the signals that your body may be giving you about the temperature outside.  It's important to drink more fluids, wear sunscreen, dress in light weight and light colored clothing, wear a hat and sunglasses....  all the things your parents always told you to do!  Some people are more susceptible to heat-related illness than others, but in particular infants, those over 65, and those with certain conditions such as high blood pressure can succumb to the effects of the higher temperatures very quickly.  Many of you may know that I am a volunteer for the Girl Scouts and have been a leader for many years.  These types of safety tips are exactly what I try to impress upon the adolescents that I work with in order to help them live healthier lives.  There was an unfortunate (and avoidable) incident last week involving one of our local scout troops that went hiking in the Lake Mead area - the troop leader who was chaperoning the hike suffered a heat stroke and passed away before help could reach them.  My heart aches for the children who witnessed this and their families, whose lives will undoubtedly be forever changed.  Please take the proper precautions to protect yourself and those around you from falling victim to our extreme temperature conditions!  We live in the desert, and it's a beautiful place to be as long as we respect Mother Nature and take the precautions necessary to stay safe and healthy.

 

Hot market....  I'm sure you have all noticed the rising prices in our area!   The low inventory of available homes continues to drive prices upward, which is good news for those interested in selling.  We aren't experiencing the "crazy" market of years past, but it is still the most positive movement that we have seen in a long time.  We can expect higher inventory numbers toward the end of the year that will likely stall the upward pressure on pricing, but I don't think it will be a "flood".  We may have a small spike lasting a few months when various banks initially start releasing more properties for sale in our area, but overall we are going to be looking at a steady influx of properties being placed on the market over a period of years, which will hopefully contribute to stabilizing our real estate market while we finish turning over the remainder of the "bad debt" in this area - after which we should see a normal rate of appreciation again.  That's good news for everyone, buyers and sellers alike!

 

Please call or email me anytime if you would like more information.   You will notice that included with this letter is information about a free seminar that I am co-hosting with Chase Bank and other real estate related professionals dedicated to educating the public regarding the current market and what options are available for both sellers and buyers.  Please RSVP if you would like to attend, as space is limited to 50 attendees.  If you are unable to attend but would like a copy of the materials that will be provided at the seminar, please let me know.  My office is open 7 days a week for your convenience, and we are looking forward to hearing from you!

Laura's Maximum Exposure Marketing Plan

Happy New Year

Dear  Friends,

 

Happy New Year!  I hope that you have all had a wonderful holiday season!   May all of your New Year's resolutions be a success....

 

As the New Year begins, many consumers appear to be in a holding pattern, waiting to see how the economy reacts to the different demands both here and abroad. Yet with steadily increasing sales and record-breaking affordability, now is the time to take advantage of these opportunities to buy or sell a home.

 

If one of your New Year’s resolutions is to sell your home, here are a few things to keep in mind:

Although the traditional home-buying season starts in the Spring, there are some reasons why starting to market your home now, rather than waiting, could prove to be a smart decision:

• On average, the number of home sales in January drops almost by half from the previous year’s peak.  A house that is priced right and staged well will stand out even more with less competition.
• Lenders, home inspectors, movers, and other vendors also see a seasonal dip in transactions. This could mean a quicker, easier, and possibly cheaper time to sell and move.

Even if you’re not ready quite yet, now is a great time to start the conversation with me about setting up a personalized marketing plan that will help you achieve your goals.  I can give you pointers on which repairs and preparations to tackle first, and which ones may not be necessary, saving you time and money.  Starting now can help you capture qualified buyers before the busy season.

 

My office is open 7 days a week for your convenience, and we are standing by to assist you with all of your real estate needs.  Whether you wish to sell, buy, or lease a property, my qualified staff and I will assist you with all of the details.  Please call me to discuss your options - I'm looking forward to hearing from you!

Thank you for your donations to A Touch of Home!

Thank you to everyone for the wonderful donations to A Touch of Home! The children really appreciate the clothing and supplies that they have received. Unfortunately there are still over 1000 children that haven't received much needed jackets and sweatshirts, so we are still in desperate need of donations as the days & nights just keep getting colder. It's hard to imagine how many children that are attending our public schools do not have adequate warm clothing, shoes, or other basic needs being met. Please help if you can. Thank you!!!!

Opportunity to work with a Dynamic Team and Earn Six Figure Income!

Opportunity to work with a Dynamic Team and Earn Six Figure Income!

Passionate about selling Real Estate?  Work with Laura!

 Laura Harbison is now interviewing Real Estate Agents to join her team.  This is an amazing opportunity to work with a real estate agent with more than $1 billion dollars sold.

Laura is looking for professional Real Estate Agents who represent buyers in Las Vegas and Henderson neighborhoods.

REQUIREMENTS

To join our highly successful team, you must:

Ø  Have an ACTIVE Nevada Real Estate License and GLVAR Membership

Ø  Be familiar with Las Vegas and Henderson areas and neighborhoods

Ø  Have knowledge of MLS

Ø  Sit weekend Open Houses    

Ø  Be an enthusiastic team player

Ø  Be a motivated self-starter

With more than 25 years of experience in the Greater Las Vegas Valley area real estate market and career sales totaling over $1 billion, Laura has the skills and experience necessary to ensure the success of her team.  Laura has unrivaled familiarity with the current and recent inventories of available homes, area trends in valuation, and time on market – key information for both buyers and sellers.

Laura’s team was named by the Wall Street Journal as one of the Top 100 Teams nationwide in 2010 and 2011, and she has earned recognition for the highest sales volume in Clark County for residential real estate.  

 Please submit your resume to Resume@LauraWorthington.com.  All information received will be kept confidential.

Back-to-School Backpack Drive

In 1996, I decided that I wanted to give something back to the community.  After checking with the Clark County School District, I discovered that no agency was addressing the needs of the Clark County School District’s Homeless Education Division, which has thousands of children enrolled in their program.  To help with this great need, I created “A Touch of Home”.  I collect new, unwrapped toys and various necessities and the Homeless Education Office, now “Title One” of Clark County School District, sees that they are delivered to the children most in need of a little cheer.

The Homeless Education Office of Clark County School District has a huge job on their hands.  They keep track of the children, and try to provide them with basic necessities so that they may attend school, even though they do not have a “residence”.  Many of these children live in shelters, or even a car or a tent.  

School can be stressful enough, but it is even harder when you don’t have the right supplies.  The school district has provided a list of some items that the children will need to get off to a great start this school year.  These items include:

 Backpacks, pencil boxes/bags, pens, pencils, erasers, crayons, colored pencils, markers, paper, notebooks, dividers, folders, binders, glue bottles/sticks, rulers, pencil sharpeners, highlighters, Sharpies, tissue boxes, scissors, calculators, lunch boxes, hand soap, hand sanitizer, index cards, flash drives, watercolors.

 HOW YOU CAN HELP!  Items can be donated, (the school district picks them up from my office), or donations to purchase these items can be made payable to “A Touch of Home”.  If you can help us, please contact one of my staff at 702-777-1234.  Speak to Kim, Karen or myself.   Supplies and monetary donations can be delivered to my office.  100% of your donation will be spent on the children!

It's amazing to me how quickly the year is flying by, so I thought I would revisit topics that are important to be addressed sooner than later.  Before you know it, it will be New Years Eve again (a funny statement to be making in July....), and the regrets of tasks that we procrastinated on will be upon us if we don't take action now.  This can apply to so many things, but since I am your Real Estate Consultant, I'll stick to some changes that are coming up that are applicable to real estate...

Now that the health care law has been declared constitutional, the remaining provisions will be going into effect. One little known provision is a new 3.8% investment income surtax, also called the health care surtax or the Medicare tax; it will go into effect on January 1, 2013.

This new surtax will be assessed on the lesser of a) net investment income or b) the excess of modified adjusted gross income (MAGI) over the “threshold amount.” For married taxpayers filing jointly, the threshold amount is $250,000; married filing separately, $125,000; all other individual taxpayers, $200,000. For trusts and estates, it is the beginning of the top income tax bracket ($11,650 in 2012).   What this means is: 1) If your modified adjusted gross income (MAGI) is less than or equal to the threshold amount that applies to you, you will not pay this tax. 2) If your modified adjusted gross income (MAGI) is greater than the threshold amount that applies to you, you will pay the 3.8% tax on the lesser of a) your net investment income or b) the amount of your MAGI over the threshold amount.

Note that the surtax liability is determined on income before any tax deductions are considered. That means your deductions could put you in the lowest income tax bracket, yet you could still have investment income that is subject to the surtax.  Also, the capital gains rate is scheduled to increase for high-income taxpayers to 20% in 2013, so the total tax on capital gains (with the surtax) could be 23.8% in 2013 and beyond.

The good news is that there may be some steps you can take this year to help you avoid or reduce the amount of surtax beginning in 2013.   Also, 2012 is an exceptional year for estate planning in general. The federal estate tax exemption is $5.12 million, which allows a married couple to transfer as much as $10.24 million from their estate with no estate tax. Under current law, this exemption is scheduled to shrink to $1 million in 2013. Other tax cuts, including income and capital gains taxes, are set to expire at the end of 2012.  With the new 3.8% surtax becoming effective in January, 2013 is on track to have the highest tax rates we have seen in many years.

Another change in the tax laws regarding real estate that we have coming up is the expiration of the Mortgage Debt Forgiveness Relief Act, which gives tax relief to homeowners that sell their primary residence through short sale.  The difference between selling your primary residence in 2012 via a short sale versus 2013 could be a considerable amount of tax.  Note that the transaction has to actually close escrow by December 31, 2012 to qualify, and that a short sale can take many months to close.  Please contact me if you have questions about short sales, or if you would like for us to mail or email you a free brochure about the process.  Even if you don't need or want to do a short sale, there may be some very legitimate reasons for not postponing the sale of a property, so it's worth investigating your options.  The consulation is free, and I will always give you an honest, direct answer.

Now, more than ever, you need the assistance of qualified professionals to advise you and help you implement the best plan for you and your family.  This is something that many people put off, and don't think about seriously until it's too late.  There are many aspects to estate planning other than the real estate aspect, so this advice is not just for investment property owners - everyone can benefit from proper estate planning, regardless of age or financial status.    Today is the first day of the rest of your life, what better time could there be to put your best foot forward?

Make the Most of Your Realtor!

The common perception is that Realtors “just sell houses”.  And while that is partially correct, there is so much more your Realtor can do for you.  Here are just a few of the additional services that the Worthington Hatcher Harbison Team offers free of charge:

Determine the value of your home.  Laura Harbison will tell you even if you're not a client.  She is happy to help homeowners figure out how much their homes are really worth.  Often, she has prepared a comparative market assessment for homeowners that purchased their home during the peak of the market a few years ago and they were able to use Laura’s assessment as proof to get a county tax break.

Find some help around the house.  Laura maintains a Preferred Vendor List, available to anyone who would like a copy.  Whether you need to be qualified for a loan, have your lawn mowed, your taxes prepared or your trim re-painted, Laura has compiled a list of reputable vendors to meet your needs.*

Be a friend for life.  A top-notch agent doesn't stop helping once the ink dries on the sales contract, but stays in touch with clients and their needs.  For Laura, selling the house is only part of it.  She is always there for her clients when they need her.

* The Worthington Hatcher Harbison Team, Laura Harbison LTD & Realty Executives of Nevada cannot be held responsible for any work of service provided by these businesses. It is suggested that you thoroughly investigate and business before contracting their services.

BEAT THE HEAT

As the temperature rises, so does the cost of cooling your home, especially if you use an air conditioner.  Here are some extra tips to stay cool in the hot summer weather:

1.       Stay hydrated with lots of water.  Avoid caffeine and alcohol as these promote dehydration.

2.      Close your blinds and curtains during the day to block the sun’s heat.  Open the windows at night to let the cooler air inside.

3.      Cool your house down with fans.

4.      When possible, avoid using heat sources such as the oven, stove and dishwasher.  The most common sources of internal heat are appliances, electronic devices, and lighting.

5.      Take advantage of the shade.  Daytime air temperatures can be 3 to 6 degrees cooler in tree-shaded  neighborhoods.

6.      Check window and door frames for any hot air leaking in and seal them with caulk or weather stripping.

7.      Replace you’re A/C unit’s intake filter once a month to allow for greater airflow.

8.      Use the exhaust fan in the bathroom when showering to remove the humid air.

9.      During peak heat hours, find a cool spot to run some errands or catch up with friends.  Go to the mall, coffee shop, library, community pool or movie theater.

10.   Don’t forget your pets!  Our furry friends can suffer from dehydration, heat stroke and sunburns too.  Make sure they always have fresh water and shade.  Don’t over-exercise them and never leave them alone in a parked vehicle. 

STAY COOL AND HAVE A GREAT SUMMER!

Be a Good Neighbor!

Your neighbors see the coming and going at your house and are probably more familiar with your schedule than you think.  They know when your in-laws are visiting from out of town, when your dog barks at the UPS delivery person and when your sprinklers are running off schedule.  You probably know the same things about your neighbors without even realizing it.  Most of us don’t even think about it until we see something out of the ordinary in our neighborhood.  This is why it is so important to be a good neighbor.  We can help our neighbors by taking in the paper when they are out of town, letting them borrow that cup of sugar or notifying them of any suspicious activities.  The benefits of being a good neighbor are numerous.  Not only will you feel good about what you are doing by setting a good example, but your community will be friendlier and your neighborhood safer.  You may even inspire your neighbors to be good neighbors too!

Spring Cleaning and You!

As Spring Cleaning time approaches, there are always a few important things that frequently get forgotten…

Ceiling Fans:  Change the direction of your ceiling fans.  The counterclockwise direction provides a refreshing breeze during warm months, while the clockwise position creates an upward draft, which redistributes warm air.  Most ceiling fans have a switch on the base to adjust the rotation.

Bed:  Turn over and rotate your mattress to distribute wear evenly.

Medical:  Update your first aid kit. 

Refrigerator:  Remove all the contents of the refrigerator and wipe down the sides and shelves.  Throw out all expired food and condiments.  Put the food back, wiping off jars and containers thoroughly. 

Smoke Detector/Air Filter:  Replace the batteries in your smoke detectors and carbon monoxide detectors.  Replace your air filter.

Plants:  Give your dusty house plants a bath.  Wash small plants in lukewarm water in a sink and larger plants in a shower.  Let them drip-dry before placing them in the sun.

Recipe Book:  Update your recipe book by adding your new favorites and throwing out anything you have had but haven’t used in 1 year.

Filing Cabinet:  Clean out any documents that you no longer need and bring them to the WORTHINGTON HATCHER HARBISON TEAM’S FREE SHREDDING EVENT on April 21^st from 10:00 am – 2:00 pm.  We will have a shredding truck on site to destroy your documents while you watch.  Call (702) 777-1234 for more details!

Cut Winter Heating Costs

Now is the optimum time to start thinking about preparing your home for winter. Here are some things you can do:

Take advantage of heat that’s there anyway. There are plenty of activities you do around the house that generate warmth, such as cooking a meal or taking a shower. When you shower, keep the bathroom door open so steam spreads to other rooms, and don’t turn a ventilation fan on; it will rapidly remove the warm air you’re hoping to keep around.

Lower your thermostat. You likely won’t notice a huge difference if you turn it down just a few degrees, a move that can shave 5 to 10 percent off of your heating bill. It’s especially wise to turn down the heat whenever you leave your home for several hours.

Consider a programmable thermostat. They cost between $30 and $100, but that’s money you’re sure to make back over the course of a year due to your heating bills being reduced. A programmable thermostat allows you to adjust the heat on a predetermined schedule, so you can lower the heat when you’re not home or when you’re sleeping.

Watch that water heater. It’s also not likely to be noticeable if you turn down the thermostat on your water heater to a recommended 120 degrees from about 140 degrees.  Consider installing an insulating water heater jacket. Be careful to follow manufacturer's recommendations and don't cover the thermostat.

Don’t let heat escape unnecessarily. Keep your doors and windows shut when the heat is on. If your home has a fireplace that you aren’t using, be sure the flue is closed and glass doors are in place to minimize heat loss.

Call for a checkup. Proper maintenance will help your heating unit run more efficiently. Electric and oil heaters should get professional attention at least once a year and gas heaters every other year. Also, here’s a step you can take all on your own: Remember to check the filters in your heating system and make sure they’re clean and clear. Dirty filters lead to higher heating costs.

Keep windows covered when it’s dark outside. This will help you reduce heat loss and keep cold air at bay, especially if you have older windows. Be sure to let in the light during the daytime — those rays of sun will help heat your home.

Explore outside. Check the exterior of your heating unit. Avoid stacking anything against the heat pump or draping anything over it. Hose the outside unit down to clear it of dirt, leaves and grass clippings. If your indoor unit appears to have excess water around it, see whether the condensate drain and pan are blocked.

Check and replace weather stripping on doors and windows.

Air leaks around faulty weather stripping on doors and windows contribute to making interior spaces of your home uncomfortable and increase heating costs. Check for drafts and repair or replace worn stripping.

The Value of Investing in a Monitored Home Alarm System

The safety of your family and home should always be your number one concern.  Much like our cell phones, home alarm systems have come a long way.  In addition to “scaring away the bad guys”, a monitored alarm system can also call emergency personnel, flash your homes lights in an emergency, be controlled from your cell phone, turn off your air conditioning, turn on the porch light before you arrive at home, detect carbon monoxide and much more.  Alarm systems are most commonly thought of as a way to ward off intruders.  While they still serve that purpose in many cases, they also come with several other benefits. 

·         One touch emergency call – Most systems come with a one touch button for fire, ambulance or police.  This is an incredible feature if you need to leave quickly, tend to someone else in home.  Alarm companies will send emergency personnel after a few minutes of non-response once an alarm is sounded.

·         Deter intruders – The visual signs of an alarm sticker on your window or a sign in your front yard will be enough to make an intruder think twice.

·         Insurance Discount - If you own your home, you may be eligible to receive a discount on your home owner’s insurance policy.  Homes with an alarm system are a lower liability for insurance companies. 

·         Mobile operation - Many alarm systems allow operation from your mobile device.  You have the capacity to arm or disarm your security alarm, turn your air conditioning system on or off as well as operate interior and exterior lighting controls all from your phone.

·         Smoke detector - An alarm system has the capacity to detect both carbon monoxide and smoke, alerting you to danger.

·         Adds value to your home – In this competitive real estate market, an alarm system will add value to your home. 

Most importantly, a home alarm system can give you and your family peace of mind.  If you are considering an alarm system, most companies will offer you a free estimate.  It is wise to obtain three bids and thoroughly investigate any service provider before signing a contract.  In the Las Vegas and Henderson area, our preferred vendor is Total Safety, Inc. 

Glen Valiquette

Total Safety, Inc.

(702) 501-2487

www.tsivegas.com

*The Worthington Hatcher Harbison Team, Laura Harbison LTD and Realty Executives of Nevada cannot be held responsible for any work or service provided by this business.  It is suggested that you thoroughly investigate any business before contracting their services.

Will it get worse before it gets better?

Everyone wants to know why the housing market in our area isn’t getting better.  With interest rates staying at record lows, and housing at now “affordable” prices, it would seem that we would be on our way to recovery.  However, there are “headwinds” that are slowing, or preventing, our progress:

 

1.       Inventories are still too high, and it looks like that will continue to be the case for quite some time.  In addition to the MLS “listed” inventory, we also have to plow through what is now being called the “shadow inventory”,  which consists of inventory held by banks and loan servicers that are not yet offered for sale, plus a large number of homes which are seriously delinquent on their mortgages (so they will become either foreclosures or short sales).. The shadow inventory is increasing as banks struggle to process all of the foreclosures and short sales, and once the processing problems are overcome, we can expect the listed foreclosure volume to surge.  We cannot move toward recovery until there is less inventory.

2.       Home prices are still unstable.  Although we are no longer in “free-fall”, they still continue to fluctuate, and currently the Las Vegas area is experiencing prices similar to those in 1999.  Anticipation of increased future inventory (as the shadow inventory is estimated to be approximately a 2 year supply of homes) puts downward pressure on pricing, and that becomes a reality as that inventory is released for sale.  The fact that over 70% of the homes in the Las Vegas area are “upside-down” (where the homeowner owes more than current market value) tells us that roughly 3 out of 4 homeowners that will sell their property will be in a  short sale situation.  So, it’s predicted that we are going to be seeing even lower prices on the horizon.

3.       The “Foreclosure Crisis”, an inquisition into whether or not the banks have been properly processing foreclosures, has slowed the foreclosure process, and therefore slowed the recovery process.  The true extent of the problem this has created remains to be seen, and should not be underestimated.  This issue is likely to place significant downward pressure on home prices for an extended period of time, which affects not only the housing market recovery, but also the economy as a whole.

4.       The “Employment Crisis” directly affects the housing market and the overall economy too.  Statistics show that over 40% of the unemployed have been unemployed long term (over 27 weeks), which implies that their job loss is most likely permanent rather than cyclical.  Housing related employment, such as construction, has taken the hardest hit with roughly a million jobs “lost” nationwide by the elimination of those jobs completely (roughly 8 million jobs were lost during the recent recession).  Las Vegas had a high concentration of housing related jobs, leaving a large number of people trying to enter different segments of the job market, or in need of relocation.  Our rising population is outpacing the need for workforce, and new jobs are not being created to meet the demand.  The combination of unemployment, fears of unemployment, and stagnant (and decreasing) wages for those that are still employed are all obstacles to home ownership, and do not support growth in our housing market.

5.       Difficulty in obtaining a mortgage is a challenge too.  Currently, stricter underwriting standards are impairing housing growth, but it was the relaxation of those standards that caused a lot of the issue with our housing market in the first place.  With more and more potential home buyers being credit impaired, and overall wealth declining drastically, we have more people “willing” than “able” to qualify to purchase a home.  The fact that the lenders are going back to the previous strict guidelines is ultimately good for the market in the long run, but in the short term, it slows the recovery too.

So, if you want or need to sell your property, or know that in the near future you will, waiting for a “better time” is most likely not the best course of action, as it will probably be quite a few years before you will see a significant improvement in your property's value.  For instance, if our market starts to recover in 2012, and can appreciate at a rate of 4% per year consistently (which is optimistic), it will take approximately 30 years for our property values to get back to 2005 levels.  You will most likely be better off financially if you bite the bullet and get it done.  Think of it as pulling off the Band-Aid; doing it slowly just makes it hurt more and makes the pain last longer, with no benefit.

A definite positive to the current market is the renewed opportunity for investing, for those who are able.  Investing in the now deflated housing market is recommended, as long as it is looked at as a long-term investment.  The days of the “quick flip” are, for the most part, a memory now, and we are back to the credo “The steady pace wins the race.”  Rental return on investment makes sense now, and the potential for long term appreciation seems possible again.  There is a lot of opportunity in this market, as long as you proceed with caution and realistic expectations.  Housing can never go out of style, because people will always need housing, and we keep making more people.   

Seller's Coverage

Most home warranty companies provide FREE "Seller's Coverage" for the homeowner while the property is being marketed for sale.  Although the "free" coverage is not as extensive as the coverage provided to the buyer after close of escrow, it still gives significant coverage on many items, and can also be upgraded to cover additional items for a relatively low cost.  If the homeowner uses the coverage, they are going to pay a low co-pay to the vendor at the time of service (typically $55-75) for the covered repair.  It is important to read over the list of coverages and limits so that you understand what is and is not being covered.  One of the benefits to having the Seller's Coverage on your property during the marketing of the property is that it may reduce the chance of a claim being rejected as a "pre-existing" condition," as the original date the coverage was placed on the property is the effective date of coverage, even though the Buyer's Coverage is typically for one year starting on the date of close of escrow.  When you consider the longer marketing times we are experiencing, it's clear that having the earlier date of coverage is a benefit to both Seller and Buyer.  Even if you are not selling your property, having a home warranty can often defray the cost of unexpected repairs.  If you are purchasing a property, it may be wise to inquire as to whether there is any existing coverage on the property that may be of benefit to you.

Short Sales

Over 70% of the properties in Clark County are now "upside-down", meaning that the mortgage debt on the property exceeds the current market value.  So, property owners who are in this position may consider applying to their mortgage company (or companies, if they have more than one mortgage) for a "short sale."  The term "short sale" simply means that the property is sold for the current market value, even though the amount owed on the property exceeds that figure.  In order  for this to happen, the mortgage company must agree to release the lien on the property at close of escrow so that clear title can be conveyed to the new owner.  Approximately 90% of all short sales are now being approved (and conversely, approximately 90% of all loan modifications are being denied).  If you are curious about the short sale process, feel free to contact me for more information.  We will be hosting a Short Sale Seminar on April 28, 2011, at our office from 5:00 - 6:30pm.