09.14.09

Clock Ticking on $8,000 Tax Credit

Time running out for home buyers, who must close by November 30, 2009

Irvine, CA, (September 14, 2009) – The government’s $8,000 tax credit for first-time home buyers has been extremely successful, but time is running out to capitalize on this unique opportunity.

The tax credit, available for first-time home buyers and individuals who have not owned a principal residence in the three-year period prior to purchase, expires November 30, 2009. Home loans closed past that date will not qualify.

It generally takes a few weeks to negotiate a purchase, followed by 30 to 45 days to close on a loan — and today’s more stringent appraisal and disclosure requirements add more time to the process. That means buyers need to select a home by mid-October to meet the deadline.

“This incentive has brought the dream of homeownership to thousands of individuals and families,” said Ron Peltier, chairman and CEO of HomeServices of America. “But time is running out, and there are no guarantees at this point that Congress will extend the program.”

“New homeowners have accounted for approximately one-third of recent home purchases,” adds Jon Cook, President and CEO of Prudential California Realty, “so the program has clearly been highly successful in attracting first-time buyers to the market. But like all good things, this one has an end. Home buyers shouldn’t miss the chance to take advantage of this once-in-a-lifetime opportunity.”

The tax credit is available on homes purchased before December 1, 2009. Single-family homes, townhomes, and condominiums qualify, providing the property is used as the principal residence. New construction homes qualify if occupied by December 1, 2009.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

This new tax credit can help ease the transition and cover the expenses that come with home ownership. The tax credit does not have to be repaid, as long as buyers stay in their new home for at least three years after purchase. IRS Form 5405 gives all the details. As always, consult with your personal tax advisor.

About Prudential California Realty
With over 3,400 sales associates in 58 offices across Southern California and the Central Coast, Prudential California Realty is the name to trust when buying or selling a home. In 2008, our agents closed more than $12 billion in sales volume and well over 16,000 transactions. As one of the top five brokerages in the nation and the largest company in the Prudential Real Estate international network, we have the resources and connections to protect your interests and make sure your experience is a successful one.
Prudential California Realty is proud to be a member of HomeServices of America Inc., a Berkshire Hathaway affiliate. For more information, visit www.prudentialcal.com

07.26.09

Should Buyers Use a Real Estate Professional?

By Jon L. Cook, President & CEO

With just the stroke of a few keys, you can find myriad resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options.

With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.

Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because he or she has inside knowledge on the history, culture and stories that you may not have otherwise received.

The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. He or she knows the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs. For instance, should you require help relocating an aging parent with you, your real estate professional may be able to direct you to local services or organizations for the elderly.

A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.

Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.

And something easy to overlook is our familiarity with the complexity and risks inherent in the process. When complex questions arise, a sales professional can help you quickly locate an attorney or other licensed professionals whose services you may require, such as home inspectors, engineers, surveyors and lenders.

As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, estimating closing costs, and helping prepare for a smooth and uneventful closing.

If you’re about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it’s comforting to have a specialist by your side.

07.05.09

Why a Condo May Be Right for You

By Jon L. Cook, President & CEO

An option often overlooked by those desiring homeownership is purchasing a condominium or condo. For those just starting out, affordability may be an issue. An empty nester may want to downsize and not have the hassles of yard work and other maintenance. Or it can simply be that the traditional family home doesn't suit your lifestyle.

When you own a condo, you own the title to the space within the walls of your living quarters. Common areas such as hallways, roofs, parking lots, green areas and pools are shared with the other owners in the complex. The more common type of condo is the apartment-style, in which you may have units on either side of you and above and/or below. However, there are other styles. There are units that are designed more like townhomes, with single or multiple levels and one or two common walls with neighbors. You may even find a condo in a building that was a multi-unit apartment converted to condo units.

Condos are attractive to many buyers because they offer them a chance to own their residence and build equity at what is usually a lower cost than a single-family detached home. Of course there are exceptions, such as the luxurious condominiums that many developers are building in downtown and affluent neighborhoods.

One factor to consider is that condominium owners generally must pay a condo association fee monthly. These fees defray the cost of maintenance, repairs and upgrades to the community's common areas as well as the cost for the services of a property management company.

However, if you would rather spend your free time doing something besides mowing the lawn, painting the outside of your home, or waiting at home for the pool maintenance person, then a condo may be for you.

Other advantages of owning a condo are the amenities that may be part of your complex such as a pool, tennis courts, fitness center or clubhouse. These are some of the perks you might not be able to afford or even have room for if you were to purchase a single-family home.

Of course, as with all things, there are some disadvantages to owning a condominium, such as the lack of privacy that a single-family detached home affords. You are also confined to the rules and laws of the community association, which can run the gamut from how to display a satellite dish to the type of animals you can keep.

Is a condo the right living arrangement for you? Make an informed decision by weighing the pros and cons. Talk with a real estate professional who is familiar with condominiums and the laws that govern them. Preview the various condos in your area to get an idea of how the properties are run. If your real estate professional has sold condos in any of these complexes, find out the type of feedback he or she has received from clients.

Condo living isn't for everyone, but can be an attractive option for many.

06.07.09

Choosing the Right Community for You

By Jon L. Cook, President & CEO

If you are buying a home, one of the first things your real estate professional will do before taking you on home tours is interview you to determine the type of house you want such as a 2,000-square-foot four-bedroom, split-level with a formal dining room and two-car garage. But just as important is the type of community you want to live in. Knowing what your requirements are will
help narrow your home search and save time.

To expedite the house-hunting process, start by making a list of the dream home factors that are most important to you and your family’s lifestyle. Consider style, location, proximity to work and schools, yard size, children in the community, and of course, price. Price and location generally are the key factors you’ll use to identify the communities that best suit you. If you are moving within the same city, you may want to start your community search by getting in your car and exploring. There are also resources on the Internet that let you compare communities.

You’ll want to ask yourself critical questions, such as: Do you dream of something quaint and charming that can only be found in an older area? Or, do you prefer everything new? Are you willing to sacrifice size and space for architectural detailing? What about drive and commute time to the office and schools? Will you forgo the number of bedrooms and a big yard for proximity to a lake or other recreational areas?

Whether you have children or not, buying a home in a community with good schools is important. It not only adds value to your property, but also is an attractive feature when and if you decide to sell. There are plenty of resources available to get information about schools within the communities you are considering. Various Internet sites offer school reports and profiles. They provide statistical data such as graduation rates, college-bound percentages, and standardized test scores. You can also learn about special programs the schools offer. In addition to these reports, many schools have their own Web sites you can peruse. And of course you can always talk to people in the area or take a tour of the school.

Additional factors you’ll want to consider during your community search are crime, recreational activities, proximity to shopping and restaurants, and other specific family needs. Once you’ve narrowed your search to two or three communities that fit your price range and lifestyle, make comparisons of price and sales activity. Your real estate professional can help you determine which communities are most sales-worthy at present, and which are more likely to continue to be.

There are many factors involved in selecting the right community for you and your family. Discuss your options with your real estate professional. This will provide the information he or she needs to help you find property listings to tour. Remember, a targeted approach to house hunting is less time consuming, less expensive and more efficient.

05.24.09

Tips for First-Time Homebuyers

By Jon L. Cook, President & CEO

Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be. Here are six common mistakes to avoid.

1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.

2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.

3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.

5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.

Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.

04.07.09

An Easy Move Takes an Action Plan

By Jon L. Cook, President & CEO

The key to a smooth move is careful planning. Many steps need to be taken long before the day the first box is loaded on the moving van. Take the time now to write down and organize the decisions and activities you’ll need to address before the move, from choosing and hiring a mover to changing your address.

To avoid getting overwhelmed, try to break up these tasks over a two-month period. (This can also save you time and money.) To get started, use this checklist as a guide.

Eight Weeks Before
• Get estimates from at least three professional movers. If you’re planning to do it yourself, get estimates on rental trucks.
• Decide what you’ll be taking, tossing, and replacing
• If you’re moving to another city, contact the Chamber of Commerce for a New Resident packet, and ask your agent for information.

Six Weeks Before
• Inventory your non-furniture possessions – kitchenware, decorative items, electronics, apparel and so on.
• Complete a change of address form with the post office. (You can do this online at www.MoversGuide.com for $1.) Notify organizations, credit card companies, and publications of your new address.
• Obtain copies of all your medical, dental, legal, accounting and veterinary records.
• If your children are changing schools, arrange to transfer their educational records.
• Itemize moving-related costs with your mover, including packing, loading, special charges and insurance.

Four Weeks Before
• Make arrangements for packing your belongings. If you’ll be using professionals, schedule a day or two before the move. If you’re doing the packing, be sure you have enough boxes, packing materials and tape.
• Arrange for short- or long-term storage if needed.
• Make travel arrangements for pets, including medical records, immunizations and medications.

Three Weeks Before
• Begin packing items you won’t need right away or plan to put in storage.
• Contact utilities on both ends of the move to end/turn on services on specific dates.
• Confirm travel arrangements for your family and pets.

Two Weeks Before
• Cancel newspaper and other delivery services.
• If necessary, arrange and confirm bank accounts and local services in your new neighborhood.

One Week Before
• Gather important papers, records, and valuables for protected shipment to your new home or a safe deposit box.
• Purchase any prescription medications you’ll need for the next few weeks.

Day Before/Day of Move
• Defrost refrigerator/freezer and give away all perishable food.
• Keep a box marked “Last Box Packed/First Box Unpacked” for tools, flashlights, first aid kit and other essentials. This should be the last box loaded on the truck.
• Pack items you’ll carry with you: valuables, financial records, personal papers and other important items.
• Give the movers a telephone number and address where they can reach you.

Moving is a big production — but with a detailed action plan, you’ll be well down the road before you ever leave for your new destination.

03.22.09

Why Hire a Real Estate Professional?

By Jon L. Cook, President & CEO

Let’s say you’ve decided to remodel. Even if you’re fairly handy, you know you’re better off hiring an expert, someone who knows the ins and outs, who’s familiar with regulations and red tape. Do you hire the least expensive person you can find? Or a licensed professional?

Now consider a home sale transaction. Given the sizeable monetary outlay — possibly the single largest financial transaction in anyone’s lifetime — it seems reasonable, even smart, to call in a specialist. Buying and selling property involves complicated transactions, strategized marketing and skillful negotiation. Real estate transactions are more work than you might think, which is why four out of five homes sold annually in the US are sold through a real estate agent.

Your agent will draw on specialized knowledge and experience to move in and out of various roles during a single transaction:

• Marketing Manager: To position a home to sell quickly and at a profit, a comprehensive marketing strategy must be developed. Successful strategies generally include sharing information through the local multiple listing service, promoting the home to other agents, placing ads, featuring the home on the broker’s website, developing fact sheets, installing a yard sign, and planning and conducting open houses. Your agent also handles calls, schedules appointments with prospective buyers, and shows the home for you.
• Transaction Coordinator: As a single point of contact, your agent will manage your entire transaction, including coordinating inspections, keeping in touch with the other party’s agent, managing the documentation for and following up on the progress of loans, monitoring deadlines on contingencies, providing appropriate paperwork, estimating closing costs, and helping to prepare for a smooth and uneventful closing.
• Property Specialist: If you’re looking to buy, a sales associate can help you identify houses that meet your needs and give you objective information about each property. If you’re selling, a sales associate can determine a realistic price based on comparable sales, local market conditions and your motivation to sell. Your agent can also advise you on preparing the property to be shown.
• Skilled Negotiator: Whether buying or selling, you’ll benefit from working with a strong advocate during the negotiating process. Your agent can help you objectively evaluate an offer, then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and more.
• Trusted Advisor: Your agent can familiarize you with the various processes involved in buying or selling a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, and provide tremendous moral support.

Aside from the convenience of having a real estate professional handle all aspects of your transaction for you, one of the most important reasons for hiring an agent is to help you with the legal issues that can come up during and after a transaction. The number of real estate-related claims and lawsuits is increasing, and the majority of them are filed by buyers against sellers. Experienced, professional agents understand these risks and can help you minimize or avoid them.

If you’re about to begin the process of buying or selling a home, partnering with a skilled real estate professional is the best place to start.

03.01.09

Buyer-Broker Agreement Helps Buyers Get the Most from Their Agents

By Jon L. Cook, President & CEO

In today’s real estate market, you can encounter many challenges when trying to find the perfect place to call home or searching for an ideal investment property. Working with a qualified Realtor who looks out for your best interests puts you at a great advantage. One way to create a strong working relationship with your Realtor is by signing a buyer-broker agreement.

The Buyer-Broker Exclusive Agreement (BBE) is a document that outlines the responsibilities of both you and your Realtor throughout the real estate transaction. It creates an exclusive partnership between the two of you for a set amount of time to locate property and negotiate terms and conditions for the purchase, exchange, option, or lease of that property. The BBE also documents the commission agreement between you and your agent, but in most cases, the seller pays some or all of the commission.

There are many advantages to signing a buyer-broker agreement. The document puts in writing all of your agent’s responsibilities, so you can hold him or her accountable to making every effort to find the right property. In addition, agents are more committed to clients who have agreed to work with them exclusively and assured them compensation in return for strong representation. The BBE outlines the areas that interest you, the property characteristics you want, and the expected price range for purchase. It puts you in control of your transaction by making you a contracted participant who can expect a full range of services from your Realtor.

“The Buyer-Broker Exclusive Agreement is a beneficial document with some similarities to the listing contract you’d sign when selling your home,” says Alan Shafran of The Alan Shafran Group in Prudential California Realty’s Carlsbad office. “It puts buyers in the driver’s seat by providing them with complete agency disclosure, a full list of their broker’s authorizations and obligations, and a negotiated timeframe for the contract.”

Signing a buyer-broker agreement establishes a strong working relationship between you and your Realtor by fostering better communication about your goals and the outcome you want for your transaction. A knowledgeable agent will ask the right questions to learn what you’re really looking for in a home. You can also negotiate the length and terms of the contract to ensure you feel comfortable with the agent you’ve chosen.

“Some buyers do not want to commit to an agent because they don’t want to feel pressure from that agent” says Ken Kaplan of The Kaplan Team at the Gaslamp office of Prudential California Realty and the company’s Buyer-Broker Exclusive Agreement trainer.

“The irony is that just the opposite should happen. Without a contract, many agents fear their clients will purchase a property with another Realtor. That makes them put more pressure on their buyers to buy from them. A buyer-broker agreement establishes a commitment by both parties that alleviates this stress and pressure.”

Signing a BBE does not obligate you to purchase a property, but it will motivate a good agent to alert you to properties within hours of their coming on the market. Your agent will also go the extra mile to create opportunities for you, rather than wait for opportunities to present themselves.”

Working with a qualified real estate professional and protecting your interests as a buyer are extremely important when purchasing property. Buyer-broker agreements help ensure that you get the most from your real estate agent.

02.08.09

Range Pricing Benefits Both Buyers and Sellers

By Jon L. Cook, President & CEO

From coast to coast, range pricing has changed the face of real estate. The approach, an alternative to the traditional way homes are bought and sold, markets properties within price ranges rather than at set prices.

One advantage of range pricing is that it allows interested buyers to focus their negotiations within a minimum and maximum price span, rather than trying to guess the price at which the owner will sell.

Another benefit of range pricing is that the seller promises to entertain any offer within the set price range. That assurance opens the door to negotiations and, most likely, a transaction. With a fixed-price listing, the seller is free to refuse any offer, and negotiations may not even begin.

Range pricing gives sellers the privilege of determining their home’s market value. It also enables them to obtain the maximum price possible while keeping their property competitive in the market.

"Changing markets happen overnight," says Maxine Gellens, who, with her daughter, Marti Gellens, has been Prudential California Realty's top-producing La Jolla team for many years. "In an upswing market, the seller will benefit from the ability to get the upper price in the range, not leaving anything on the table," she explains. "In a downturn market, there's less need to reduce the home's price, especially if the right value range was selected in the first place."

Homes listed with range pricing routinely sell in a fraction of the time it normally takes to sell traditionally priced homes. Listing the entire range attracts the attention of more potential buyers — and the more people who see a home, the quicker it will sell.

Imagine a buyer sees a house and falls in love with it — but the listed price is more than the buyer was hoping to spend. Rather than risk insulting the seller, the buyer may shy away and continue searching elsewhere. The rules of range pricing give buyers the confidence to step up and make an offer, because the seller has committed to responding in writing to any offer within the range.

Range pricing also benefits the buyer during the search process. Most buyers know how much they want to spend, and typically search for properties within their “range of affordability.” Homes marketed using range pricing will show up in many more “range of affordability” searches — dramatically broadening the number of properties the buyer looks at.

For real estate professionals, range pricing eliminates the listing agent’s two greatest fears: under pricing, which results in the sellers leaving money on the table; and overpricing, which attracts the wrong buyers to the home.

Since Prudential pioneered the approach in 1994, range priced listings have taken off. The approach is now supported by the MLS and the Board of Realtors and used in the USA, Canada, Australia, New Zealand and Asia.

02.03.09

Challenging Times Spark Great Solutions

By Jon L. Cook, President & CEO

One of the good things about challenging times is that they spark great new solutions. In our field, the latest is the renovation loan, or 203K. Demand for this loan is surging, because it meets the new needs of both buyers and sellers in this market. In today’s market, there are phenomenal buys on homes in very attractive locations. But in some cases, these properties need work. Until recently, buyers looking for move-in ready homes would regretfully pass, since it takes too much time to line up financing for the upgrade.

The new renovation loan allows borrowers — including first-time homebuyers and owners that are refinancing — to fold the cost of home improvements into their new 30-year fixed rate home loan without a second mortgage, equity line, or other financing option. Work on the upgrade can begin immediately after closing.

Improvements can range from a kitchen or bath remodel to a room addition — in fact, just about any repair or renovation that makes the home fit your needs. You may hire a contractor, or do the work yourself. Either way, you will be required to submit architectural drawings of the proposed renovations before the loan can be considered.

While home equity loan amounts are based on the current value of the property, renovation loan amounts are based on the predicted value after the upgrade. The lender uses the plans you submit to estimate that figure. Construction is divided into stages, and you’ll be asked to document the completion of each stage before receiving a check for the next one.

“When you take the traditional route, a first mortgage with a home equity loan for renovations, the amount you can borrow is based on the current value of the home, and these days that may not be ideal,” says Danny T. Valentini, senior vice president/regional manager for San Diego and Orange County at HomeServices Lending, an affiliate of Wells Fargo Home Mortgage. “The amount you can borrow for a renovation loan is tied to the increased value of your home after the improvements are made. That makes more money available to pay for the enhancements you want.”

Renovation loans finance the home purchase and the improvements together, spreading the cost of renovations throughout the entire mortgage term. That means the interest rate and monthly payments can be lower than for the first/home equity package. The interest on the cost of your improvements may also be tax deductible. In some cases, the first six months of payments can even be folded into the overall loan amount, freeing you of loan payments during the construction period.

If you’d like to learn more about this new approach to having your home and fixing it, too, your local Prudential California Realty agent has all the details.

8.01.08

The Real World…of a Real Estate Agent

For many Americans, the purchase of a home is the biggest single investment they will ever make. Few will ever match the amount of time, effort and capital they put into their home. It is an investment that many wait years to realize, and one that can reap personal and financial benefits beyond that of any other venture.

For countless buyers and sellers, working with a professional real estate agent provides substantial, positive impact in terms of purchase and sales pricing, time on market, and time to close, and it takes a real estate agent who understands the complexities of the transaction to meet the many needs of the consumer. The choice to become a real estate agent has been the first step in all of these positive experiences.

The life of a real estate agent may be very different from what is perceived by consumers. It requires discipline, commitment, perseverance, enthusiasm, flexibility, and above all else, motivation. “In order to succeed in this business, self-motivation is vital,” said Bob Kelly, a real estate agent with Prudential California Realty’s La Mesa office. “The desire to help and support the consumer in achieving the American dream of homeownership is what drives the successful agent.”

Realty has become a popular vocation over the past ten years, with NAR (National Association of Realtors) membership growing 89.6% from 1998-2006. The popularity of the profession has increased precisely because a career as a Realtor can be highly rewarding—personally, professionally, and financially.

A commitment to service runs deep in the heart and mind of professional real estate agents, who are often highly involved in community service. An example is Prudential California Realty’s efforts with the Surfrider Foundation last year for Coastal Cleanup Day, when company volunteers in five counties cleaned 350 miles of beach stretching from San Diego to San Luis Obispo in a single day. Likewise, earlier this year agents and employees of Prudential California Realty contributed nearly $150,000 to a fund created to help people, pets and wildlife recover from the ongoing effects of Southern California’s devastating October 2007 wildfires.

In addition to the personal rewards of becoming a professional real estate agent, the financial benefits can be significant. Generally, your paycheck is determined by the amount of sweat equity put into the job. The potential for income growth is staggering, according to The National Association of Realtors: realtors who had just three to five years of experience had an income that was over three times higher than that of new realtors (realtors who have spent two or less years in the business). Working for a reputable brokerage is also a vital component to a successful career as a professional real estate agent.

Ongoing education and training are vital to success as a real estate agent. Nationally, Realtors are highly educated, with 44% holding at least a Bachelor’s degree (compared to a national average among 18+ year olds at less than 30%), along with their licenses. Brokerages such as Prudential California Realty offer their employees and agents dedicated training resources with career development in mind.

The life of a professional real estate agent is a rewarding and noble one; and it is no wonder that the highest caliber of professionals go into the business. Helping consumers to achieve the American dream of homeownership is no small task; a task suited to those who find themselves attracted to a profession that rewards service with success.

7.20.08

Today's Technology Makes Buying and Selling Even Easier

By Steve Rodgers, President & CEO

In a world gone wireless and mobile, consumers are able to do just about everything short of ordering their morning coffee straight from their cell phone. Mobile networking has become commonplace in every industry and age group, making the global marketplace the local marketplace.

When it comes to real estate, technology has played a huge part in streamlining the process of finding, purchasing or selling a home. As an example, new products like “WHAMmobile’s” mobile real estate listings service offer to simplify the shopping process for homebuyers.

This real estate listings platform allows homebuyers to receive property information instantly to their cell phones by texting a unique message to a designated destination. The code and message is displayed on the home’s yard sign rider and eliminates the hassle of getting out of the car to retrieve a traditional “Take Me” flyer.

With the popularity of text messaging growing every day, it gives prospective buyers the opportunity to use wireless communication to obtain instant access to home listings. Prospective homebuyers will receive basic information about properties including property size, photos, maps, and contact request options right to their mobile phone. Agents receive contact information from the prospective buyer and can follow up at their convenience.

The next WHAMmobile service planned to be released, for summer 2008, will include features to schedule showings, deliver e-flyers, navigate to other listings, and more. New technologies like this not only streamline the communication between agents and buyers but also increase the visibility of the seller’s home, which is key in today’s buyer’s market.

It is common knowledge that working with a professional real estate agent can make all the difference in a real estate transaction. The best agents recognize opportunities to improve their service on every level, and technology has become a key ally to both agent and client. “This is an ever-changing market, and ultimately our solutions have to meet the demands of our clients,” said Don Reedy, an agent in Prudential California Realty’s San Marcos office. “Using the internet and mobile technology creates a competitive advantage, and simplifies the process for the client.”

MLS (Multiple Listing Service) and other online listings have been key components in the technological push in the industry. By placing addresses, descriptions, pictures, virtual tours and contact information online, these listing sites have given consumers more resources than ever. “The MLS has changed the way our business works,” continued Reedy. “In the past, finding one’s perfect home took huge amounts of time and energy. Now, all the information is available at the click of the mouse.” In addition to online listings, many properties have their own “site-specific URL’s,” or websites. This approach brings added attention and prestige to a listing, with more space devoted to photos, tours and information about the property.

Whether it is through email, text message or mobile networking, working with a professional real estate agent is always a priceless benefit. The best agents help their clients every day to fulfill the American dream of homeownership, and new methods of technology are turning this dream into a reality.

7.01.08

Take Advantage of the Homebuyer Tax Credit

By Steve Rodgers, President & CEO

The decision to become a homeowner for the first time is one of the most important personal and financial choices one can make. The financial rewards of homeownership have consistently come from several streams, including sale profits and tax benefits. On July 30, 2008, President Bush signed into law H.R. 3221, or the Housing and Economic Recovery Act of 2008. The bill, which covers issues including GSE and FHA reform, VA loan limits, and the Homebuyer Tax Credit, passed the House of Representatives by a vote of 272-152 and the Senate by a vote of 72-13. The Homebuyer Tax Credit provision offers a significant incentive for first-time buyers to achieve the American dream of homeownership, making now the perfect time to make that decision.

H.R. 3221 offers first-time homebuyers a $7500 tax credit for any qualifying home purchase made between April 8, 2008 and June 30, 2009. Any purchase of a single-family dwelling used as a primary residence will be eligible for the credit, and the $7500 will be repayable over a 15-year period, creating in effect an interest-free loan. The terms of the provision put the taxpayer at a distinct advantage, with payments being calculated at 6.67% of the credit amount over 15 years. Thus, if the individual takes the full $7500 credit, repayment will be about $502.50 per year. Since the provision will lower the homebuyer’s tax liability by a maximum of $7500 on their 2008 tax return, it simply needs to be claimed on IRS Form 1040. Therefore, buyers do not need to apply for the credit.

The Homebuyer Tax Credit applies only to first-time homebuyers, who are defined as individuals who have not had an ownership interest in a principal residence within the previous three years. This creates a great opportunity for those who have been thinking about making this most important purchase, but have been holding off for one reason or another. However, the provision will expire on June 30, 2009. In a market recovering from a downturn, this tax benefit is an important incentive for first-time buyers, and it creates a buyer-friendly market.

As consumers consider the benefits of making their first home purchase, working with a professional real estate agent is of the utmost importance. The decision to do so will help consumers sort through the provisions of the Housing and Economic Recovery Act of 2008, and the expertise of a professional real estate agent will ensure that individuals will fully benefit from the incentives and programs the federal government is currently offering. When making the decision to achieve the American dream of homeownership, it only makes sense to consult with those who have made it their business to help individuals achieve that dream. And with a buyer-friendly tax incentive, the American dream has become more of a reality than ever before.