A: The home is now yours. Unless you want to lose the home to the lender, you will need to continue to make the monthly mortgage payments. If you can get a good price for the sale of the home in this market, you might want to consider selling the home.

If your situation is such that you might move into the home someday and can afford the mortgage, taxes, insurance and upkeep, then keeping the home might work out. Also, if the costs are low enough that it would be less to carry the property than rent another place in the area when you visit, then that’s an important consideration also.

If you can rent the property, and get enough cash to cover all of your expenses and more, you should consider keeping the property as an investment home. Just make sure you find quality tenants who will maintain the home and take good care of it.

But be prepared for the time you’ll spend managing the property from out of state. If you won’t be living within a few hours of the property, selling becomes a better idea.

After all, who will take care of making sure that everything is going well at the property? Who will periodically visit the home to make sure that the tenants have not destroyed the home? Who will take care of maintenance issues at the home when the tenants tell you that the roof is leaking or the house needs normal repairs?

Your pending divorce might also complicate the issue. If this property is considered part of the marital estate, you may have to sell it to give your soon-to-be ex a share of the proceeds. Please consult with your divorce attorney on what you plan to do so that it doesn’t affect your divorce proceedings and settlement with your spouse.

Finally, since you did not inherit the home but received it as a gift from your grandfather, you might have a tax problem on your hands. When your grandfather quitclaimed the home to you, you took title to the home and accepted it as if you had purchased it for the price your grandfather paid for the home. If he owned it a long time and bought it for little and now it’s worth a lot, you may have federal income taxes to pay on the profit from the sale of the home.

If the home were to become your personal residence and you live in it for two years and then sell it, you might avoid having to pay any federal income taxes on the sale. You are allowed as a single person an exclusion from federal income taxes on the sale of your primary residence $250,000 of profit if you have lived in the home for two out of the prior five years.
But since you are moving out of state, you won’t be able to use it as your primary residence now. If you might be able to do so in the future, then renting it for awhile until you can move into it full time makes sense.

Please consult with a real estate attorney, in addition to your divorce attorney, who can help you sort through these issues and make a smart move

For other information regarding real estate, to search for homes, find out your current home’s value or get preapproved for a mortgage, visit homesjustlisted.com

Illinois bill would restrict real estate rebates
State Realtor group opposes legislation

By Glenn Roberts Jr.

The Illinois Association of Realtors is opposing state legislation that seeks to restrict cash rebates and other rewards offered by real estate professionals to unlicensed persons who engage in real estate transactions.The U.S. Department of Justice has taken legal action in other states to undo similar restrictions that prevent real estate agents and brokers from rebating a portion of the money they receive in a home sale to consumers, and the department is aware of the proposed Illinois legislation, a spokeswoman said Tuesday.

House Bill 4313, proposed by Illinois state Rep. Robert S. Molaro, D-Chicago, seeks to amend the state’s Real Estate License Law Act of 2000 to state that “no licensee shall give or pay cash rebates, cash gifts or cash prizes to an unlicensed person who is a party to a contract to buy or sell real estate.” The legislation would allow licensees to offer compensation “including prizes, merchandise, services, rebates, discounts or other consideration to an unlicensed person who is a party to the lease of real estate,” as long as that offer complies with other provision of the existing act, according to the bill text.

Steve Bochenek, legal counsel for the Illinois Association of Realtors, said the association’s executive committee took a vote to formally oppose the legislation. The association’s opposition to the bill has been communicated to members, he also said, and to the bill’s sponsor.

“We think it may put some of our members at a disadvantage because it only applies to licensees,” he said, as it would allow builders and developers to offer rebates and other cash rewards to consumers that Realtors, as real estate licensees, could not offer.

Also, there are situations in which a home buyer may need some assistance to complete a sale transaction, he said. “Sometimes licensees kick in a little bit” to complete deals, he said, and “this would preclude them from doing that.”Molaro, a lawyer by trade, could not be reached for comment Tuesday.

Bochenek said that a lobbyist who has been working to pass HB 4313 referred to a group called “Homeowners Club of America,” and the group has distributed information in support of the bill that suggest that “West Coast brokers are coming into Illinois and skimming off buyers and taking that money out of state.” contacted a Chicago-based group called “Homeowners Club of America,” which has a Web site at www.hca-il.com, though a representative was not immediately available for comment. That Web site states that the club is “a value added program for home sellers and purchasers that facilitates ‘one-stop shopping’ for closing related services, and participating professionals include real estate lawyers, “experienced local Realtors,” and “reputable mortgage lenders,” according to the Web site, and the club has strategic alliances with Realtors representing national franchises including Re/MAX, Coldwell Banker, GMAC, among others.. To his knowledge, Bochenek said that none of the local Realtor associations have taken a position on the legislation that is counter to the state Realtor group’s position. He said that based on the Justice Department antitrust officials’ reaction to real estate rebate restrictions in other states, “we fully anticipate that they would take a position contrary to (the bill) in this state as well,” though he said that is not the basis for the Realtor group’s opposition.

The American Real Estate Broker Alliance, a national alliance of flat-fee real estate brokers, “is opposed to all government actions to limit competition in real estate services, whether they be minimum-service laws or rebate prohibitions, which effectively prohibit buyers from receiving or brokers from offering a discount,” said Albert Hepp, owner of Minneapolis-based BuySelf Realty and president of AREBA. Hepp is also a licensed broker in Illinois.

Bill Brynelsen, an agent for New Market Realty Inc. in Spring Grove, Ill., who offers rebates to buyers, said he is perplexed by the proposed legislation, which he learned about through a phone call by a Justice Department official.
“I’ve called my elected officials … to find out why was it introduced, what purpose is it going to serve. I get nothing out of anyone,” he said. Brynelsen said he has offered rebates to buyers for about four years. “I think (rebates are) a good thing. I’m not looking to hurt anyone.” He said he expects that consumers would be outraged by the proposed legislation if they fully understood its impacts. “This is going to hurt a lot of people,” he said, and he would be forced to change his business model.
“Some of the people who I’ve done business with — they absolutely could not have bought a house had it (not) been for the rebate that I offer,” he said, adding that the timing of the legislation is horrible given the slowdown in the residential real estate market. “To take it away in this market …. could they do anything more to destroy this market? It really is tragic.”

Glenn Kelman, CEO for Redfin, a company that offers rebates to buyers, wrote about the proposed legislation in the company blog — Redfin has plans to expand its operations into the Chicago area. The blog noted that Molaro and a co-sponsor of HB 4313, state Rep. Angelo Saviano, R-River Grove, both received contributions from the Illinois Association of Realtors in the 2006 election cycle.

The bill, introduced Jan. 9, was assigned to a committee on Feb. 13 and a staff member for Molaro said it will not likely be heard in committee this week.

For more information about residential real estate, visit the homepage. There you can search for homes, get preapproved for a mortgage, or estimate the value of your current home.

ASHI Members Diversify Services to Help Homeowners Weather Storm

(Des Plaines, IL - February 7, 2008) - With reports that foreclosures are up 51 percent from 2006 and that home ownership took a record plunge in 2007, it’s clear that 2008 will be a year of economic uncertainty, and at worst, a year of continuing downturn. As consumers continue to feel the squeeze, the American Society of Home Inspectors (ASHI) reminds homeowners and those eager to sell to look to ASHI Certified Inspectors when considering options for buying, selling or maintaining their home in a down market.

“ASHI has taken steps to arm its members with the resources and support to provide a diverse range of services for homeowners,” said Brion Grant, 2008 ASHI president. “We know that one-size doesn’t fit all in this market. From energy audits to maintenance inspections, phased-inspections and more, we’re arming members with tools to diversify their services so that they can meet the needs of the public.”

New Services for Homeowners

Energy audits are among the core services that ASHI is encouraging its members to fine-tune so consumers have the benefit of potential cost savings. In December, members of ASHI’s Blue Ridge Chapter (Virginia) participated in group training with a nationally certified energy auditing company to secure certification to perform energy audits in their region. “With the cost of fuel skyrocketing, energy audits can uncover inefficiencies and point to savings,” added Grant. “ASHI is working in conjunction with a certifying organization to provide opportunities for training and certification so that its members can offer this ancillary service nationally.”

Another service homeowners may not think about is maintenance inspections. “Maintenance should be at the top of every seller’s list this year”, said Grant. “In this market, homebuyers have more properties to choose from, and will look closely at how well a home has been kept up.”

Homeowners who are serious about selling their home in 2008 should consider hiring an inspector to conduct a maintenance inspection, which includes checking everything from the foundation, roof and gutters, to a home’s exterior and interior walls, electrical wiring and plumbing. ASHI also offers a maintenance checklist, a list of items in the home that should be maintained annually or by season. Those interested in obtaining a copy of ASHI’s home maintenance checklist should contact a local ASHI Certified Inspector via ASHI’s Web site www.ASHI.org.

Services for Buying or Building a Home
With a record 2.18 million homes sitting vacant and sellers chomping at the bit to unload their home, buyers are at risk too. Before purchasing a home, ASHI encourages buyers to hire an inspector to conduct a pre-sale inspection to determine its quality, efficiency and safety. “There are a lot of people who are willing to do whatever it takes to sell their homes,” said Grant. “In a market like this, people are quick to jump in because of the rock-bottom price rather than the quality and safety of the home.” And, with many bank-owned properties being sold “as is,” meaning the seller will not be performing any repairs, pre-sale inspections can provide vital information about costly defects.

Phased inspections are also a good way to protect the interests of people who are building a home from scratch. By engaging a home inspector early on, even in the site selection, homeowners can benefit from having an inspector assess the quality of construction at every step. From pouring the foundation, to closing the walls, home inspectors can provide an unbiased assessment of a home that will save homeowners time and money. ASHI encourages individuals who are interested in learning more about phased inspections to visit www.ASHI.org.

I wish forecasting the future was as easy as picking up a Magic 8-Ball,” said Grant. “‘Outlook good’ would be a welcomed relief from what we’ve seen over the last year. But Americans are resilient, and ASHI is committed to helping homeowners weather this storm.”

If you are considering buying or selling a home soon, please visit our homepage. You can search for homes, get preapproved for a mortgage, or estimate the value of your current home.

Here are some advantages of buying a home instead of renting.

Tax Deductions: When you file your taxes you can deduct the money that you paid for interest, real estate taxes, discount points from your mortgage, etc. Of course while your are renting, you can not deduct any portion of your rent. You pay taxes on more income.

You can build equity as your home appreciates. Historically, the value of real estate has gone up. Although there are corrections in the market, eventually your home hopefully qill be worth more than you paid for it. Also, as you pay your mortgage, some of it gets applied to your equity. When renting, your payments go to your landlords equity.

If you have gotten a conventional, fixed rate mortgage; your payments will remain the same to the bank. Of course if you pay taxes and insurance through your mortgage and they go up, your payment will also. When you are renting, your payment could increase at the end of your lease.

You can remodel your home as you see fit as long as it is within the zoning codes (or homeowner associations, if applicable.) When renting, you have to ask for permission to make any changes.

Pet lover? You can usually own most common household pets when you own your own home, If renting, you may not be allowed to have any pets or may be required to pay more rent and/or security deposit if you are allowed.

Some utilities require a deposit for non-owners.

Then there are the disadvantages of owning a home.

Unless you have purchased a condo, you will be responsible for the exterior and interior maintenance. Of course, if you are renting, the landlord usually takes care of the repairs.

If you need to relocate fast, it is a lot easier to not release a home than if could be at times to sell it. Since no one can forecast how the real estate market will be, you may end up losing money or having to wait to sell if the market goes soft.

Usually when you rent, you do not have to pay insurance on the property itself. Of course when you own, you would definitely want to cover your investment. However, even if you are leasing, you should definitely acquire renters insurance to cover your personal belongings.

If you think you may move within two years, you could end up having to pay capital gains tax on any money that you may have made due to your home appreciating.

Buying a home is probably the biggest investment that you will make during your life. Make sure you are educated about the home buying process, what your options are, how much home you can afford, and the current market conditions.

Now is the time to buy a home. Stop listening to the press, historically they have been wrong! (edit/delete)

We have long been saying that now is a good time to buy a home in direct counter-diction of what the press has been saying. I feel that reckless reporting has in some part put the real estate market where it is in some parts of the country. After all, when prices were up three years ago, they kept reporting that there was a bubble. Now that there is extra inventory for buyers to select from , prices are a bit lower & interest rates are low, they still say don’t buy. I actually wonder when they think it is a good time to buy. Maybe when there are 10 or more competing offers on homes.

Now I do not want to put down every member of the press, but I really wish that they would realize that Real Estate is local, not national. I also wish they could start reporting some positive news. By this I mean, in all the news. I know that negative things sell newspapers and get people watching t.v., but could we please put some good things out there. Believe it or not Mr or Ms Reporter, there really are good things happening in our country.

I received this email from someone who definitely knows the market and has been writing to the newspapers, etc to try to stop the negative reporting that has been going on locally. There are also at least 2 other individuals from competing brokerages also trying to set the recored straight about the condition of the real estate market in Buck County, PA.

Remember, the press tries to sell newspapers or magazines. Here are the reports that they made in the past. I agree with the comment by my associate “don’t you wish you would of bought homes then so you could possibly sell them now. Don’t let history repeat itself.

Those who do not remember history are doomed to repeat it. -George Santayana

· “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” (Time, December 1, 1947)

· “Houses cost too much for the mass market. Today’s average price is around $8,000-out of reach for two-thirds of all buyers.” (Science Digest, April, 1948)

· “The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs $28,000.” (Business Week, September 4, 1969)

· “The era of easy profits in real estate may be drawing to a close.” (Money, January, 1981)

· “The golden-age of risk-free run-ups in home prices is gone.” (Money, March 1985)

· “Most economists agree… [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s.” (Money, 1986)

· “Financial planners agree that houses will continue to be a poor investment.” (Kiplinger’s Personal Financial Magazine, November 1993)

Recently, we tuned into NBC’s Today show and Suze Orman was discussing the recession that some of our country has already started to experience and what consumers should do to protect their money. Orman recommends that consumers:

Do not panic and make rash decisions based on the current state of the economy. Markets are cyclical. Think of your investments on a long term basis. Especially those that you might not need to turn around for the next 10 years. Save your money.

Do not cash out of your 401K. If you needed to file bankruptcy your 401k is protected. If you pull this money put you will not have it for later when you really need it.

And last is Orman’s recommendation,paraphrased below, when it comes to buying real estate:
If you can get a good deal on a house, 30-50% off. and you can get a mortgage at the currently low interest rates of 5.5%, buy now. The feeling today is that many buyers are waiting for a better deal and waiting for prices to come down. Some are trying to tap into the foreclosure market, preceiving that they will be able to get the deal of the century.Not all real estate markets are created equal, and neither are all homebuyers.

If you are ready to search for a home, get preapproved for a mortgage, or just want to find out your home’s current value, visit our website

Foreclosure causes heartache for renters
Rent it Right
Thursday, February 07, 2008

By Janet Portman
Inman News

A: In most states, when a landlord defaults on a mortgage that was recorded before the tenant’s lease was signed, the owner’s default and subsequent foreclosure will wipe out the lease. Since most leases are for a year or two, and many mortgages pre-date those leases, most tenants get shafted when the owners default. Lucky are the tenants in New Hampshire, Massachusetts, New Jersey, the District of Columbia, and tenants who rent under the federal “Section 8″ program — when their owners default, their leases will survive. Tenants who live in cities with rent control and “just cause” eviction protection may also be protected.
The foreclosing bank has the right to continue to honor your lease, but typically the bank will want the property vacant, in order to sell it easier. That’s why you’re being given a termination notice. While there’s nothing you can do to reverse the result of the foreclosure, you do have recourse against the original owner. It’s really very simple: Having promised to lease you the house for two years, the owner has failed to make that house available to you. Your damages are the expense of finding new housing and the difference, if any, between the rent for your eventual new home and the rent you expected to pay under the first lease. You can bring a lawsuit like this in small claims court, where procedures are simple and designed for nonlawyers. And while your original landlord may not be flush with cash (after all, he couldn’t pay the mortgage), if you win you’ll end up with a judgment that will be enforceable for many years. With patience, you can probably collect.

For other real estate information, to get preapproved for a mortgage or to find out your current homes value, visit our homepage.

The following article was written by Bill and Kevin Burnett.

The standard 8-foot ceilings came along with the tract homes of the 1950s. They used gypsum wallboard instead of lath and plaster for interior walls. “Gyp” board was manufactured in 4-by-8-foot sheets and fit perfectly on what became the “standard” 8-foot wall height. Before this, plaster walls could be any height, hence the 10- and 12-foot ceilings of Victorian homes and the 9-footers that you’ve inherited. As to why the kitchen cabinets stretch to the ceiling, making the reach to the top shelves impossible unless you’re an NBA center, we can only guess. Could be the idea was the more storage, the better.
We’ve said many times before that we much prefer trying to maintain the character of the existing architecture of a home instead of shoehorning in some modern design contrivance that appears out of place. We strongly disagree with your proposal to add an industrial dropped ceiling to your 1916 kitchen. That said, we do see the problems and would like to offer another solution that we think will better maintain the character of your home.
Before we offer up our advice, we’ve a few words about dropped ceilings. The reason they are so widely used in offices is that they are flexible. To change a configuration of a room, all one needs to do is move the walls or cubicles and change out the lighting panels and the heating, ventilation and air-conditioning supply. The entire ceiling doesn’t have to come out. Also, if you ever take the opportunity to see what is above the panels in most offices, you’ll see a maze of ductwork, wiring and pipes. What’s gained in usefulness is lost in aesthetics.
We think the better option for you is to frame a new ceiling with 2-by-4s, apply Sheetrock and paint it.
But if the real irritant is the height of the kitchen cabinets that currently reach to the ceiling, another option is to Sheetrock over the existing ceiling to hide the failed plaster and install soffits so the top of the cabinets are lowered to a reachable height. The combination of a dropped ceiling and soffit works well, too. If you drop the ceiling a foot, it’s simple to frame a 2-by-4-foot opening for a recessed fluorescent lighting fixture.
Reframing the ceiling is within the reach of an accomplished do-it-yourselfer. Assuming the room is a quadrangle, snap level chalk lines on all four walls and nail 2-by-4s to the wall studs. Fill in the quadrangle by nailing 2-by-4-foot ceiling joists spanning the shortest dimension of the room at 16 inches apart. This is known as 16 inches on center. Start the first joist 15 1/4 inches from the wall. This allows the edge of the Sheetrock to land in the center of a joist at 4, 8 or 12 feet. If installing soffits, nail blocking in the joist bays every 16 inches. Nail the soffit plate to the blocking.
Building a soffit is essentially building two short walls, nailing one to the wall, the other to the ceiling connecting at right angles. Frame the walls by nailing 12 1/2-inch studs 16 inches on center to a top and bottom plate, forming a finished wall. Make another one in the same manner. Nail one wall to the ceiling joists, the other to the wall. Then nail them together forming a box.
A soffit is a great place to install recessed lighting. Bill installed stereo speakers in the soffit of his Alameda, Calif., kitchen. The soffit in Kevin’s Idaho home acts as a visual divider between the living room, dining room and kitchen, which are in reality one large space.
Cover both the soffit and the ceiling with 1/2-inch drywall. Install the ceiling drywall perpendicular to the joists. Stagger the pieces of drywall so that the end joints don’t line up. This will help inhibit any joint failure. Tape the joints and apply joint compound to the joints. The finish can be either smooth or textured. The choice is yours, but a smooth surface is easier to clean.
So the bottom line is no industrial dropped ceilings. It might be a little more work, but we think you’ll be well advised to keep with the character of your 1916 house.

To search for a new home, whether it is from 1916 or 2008, visit the home page of our website. Once there, you can also get preapproved for a mortgage or estimate the value of your current home.

Real Estate Articles from Inman News

Bush proposes modest increase in HUD budget
Administration renews call for FHA modernization
Tuesday, February 05, 2008

Inman News
The Bush administration proposes scaling back or eliminating six Department of Housing and Urban Development programs to save $1.6 billion, while boosting the department’s overall budget by $1 billion, to $38.5 billion. The administration’s proposed fiscal-year 2009 budget for HUD would include $2 billion for federal block grants for affordable housing for low-income families — a $263 million increase in funding for the HOME Investment Partnerships Program. The increase will help an additional 13,000 families find affordable housing, HUD said. Other major provisions of the proposed budget include $29.4 billion in rental assistance for 4.8 million low-income families, including $16 billion for tenant-based rental assistance such as housing vouchers, and $7.4 billion in project-based rental assistance such as Section 8 payments.

Six programs representing $1.6 billion have been targeted for termination or reduction, including the Community Development Block Grant (CDBG) program, which the administration says is not well-targeted to the neediest communities and hasn’t shown results. The administration’s budget proposes $3 billion in CDBG funding, a $900 million reduction.
The Bush administration is once again proposing to eliminate the HOPE VI program, which is aimed at rehabilitating public housing projects. The administration has been unable to eliminate funding for program in past budgets, however, and the House of Representatives last year passed legislation to renew the program for eight years.

In briefing reporters Monday, HUD Secretary Alphonso Jackson renewed the administration’s call for Congress to pass legislation expanding Federal Housing Administration loan guarantee programs. Jackson said in the five months since the administration launched its FHASecure program to help delinquent borrowers refinance into lower-cost loans, it has helped 75,000 homeowners. He said FHA could serve an additional 250,000 borrowers by the end of the year if Congress approves legislation raising maximum loan limits, lowering minimum down-payment requirements, and allowing the expansion of risk-based pricing.

Both the House and Senate have passed their own FHA modernization bills, and differences in the bills must be reconciled before they can be signed into law.

Assistant Housing Secretary Brian Montgomery said the administration favors a provision in the Senate’s version of the bill that would lower minimum down-payment requirements from 3 percent to 1.5 percent, rather than eliminate them altogether as called for by the House bill. Private mortgage insurance providers have raised their rates or stopped providing insurance altogether in California and Florida on loans with down payments of less than 5 percent

Montgomery said increasing maximum loan limits will make more borrowers eligible for FHA guarantees in areas where it’s now priced out of the market. In California, Montgomery said, FHA guaranteed less than 5,000 purchase and refinance loans in all of 2007. The Bush administration supports raising FHA loan limits in high-cost areas to 100 percent of the conforming loan limit in high-cost areas including California and the Northeast, and from 48 percent to 65 percent of the conforming loan limit in lower-cost areas. The conforming loan limit is currently $417,000, although Congress is debating a temporary increase that would allow FHA to guarantee loans of up to 125 percent of the median home price, with a cap of $729,750 ***

If you would like more information on obtaining a mortgage, seaching for a home or your current homes’s value, please visit the home page of www.homesjustlisted.com

http://www.homesjustlisted.com

1. “Location, location, location” is still true
While people may debate what really matters most to homeowners, NAR’s research shows that the number one concern for all buyers (65 percent of all respondents) is “quality of the neighborhood.” Coming in second (50 percent) was “convenience to work,” while “overall affordability of homes,” “convenience to friends and family” and “quality of the school district” rounded out the top five.
The quality of the neighborhood was most important to married couples (68 percent), whereas single males were not nearly as concerned (56 percent). When working with buyers, be sure to explore what constitutes a “quality” neighborhood. Also recognize that couples will be less willing to compromise on this issue as compared to single men.

2. Give a little, take a little
Buyers, especially those in urban areas, were the most likely to compromise on the size and the planned expenditures on the home. They were the least likely to compromise on schools and quality of the neighborhoods. Only 2 percent of the respondents compromised on the distance from schools, 3 percent on the quality of the schools, and 5 percent on the quality of the neighborhood. Before showing property to your buyers who have children, carefully explore their expectations about both the quality and proximity of schools..

3. Correct pricing: the primary determinant of which properties sell
The next time a seller wants to “try it for while at a higher price” or a buyer wants to “steal a property,” here’s some data to share. Nationally, 36 percent of the properties sold at list price or higher. In the West, that number was 42 percent. Only 12 percent of the homes in the U.S. sold for 90 percent or less of ask price. In other words, properties sell when they are priced correctly. When they are overpriced, they languish on the market until the price is reduced to market level. Buyers can search for a steal, but once a property is correctly priced, it normally sells quickly.

4. Buyers look online first
As their first step in buying a home, 48 percent of all buyers either go online to view houses (32 percent) or to locate information about the home-buying process (16 percent). To address this consumer search pattern, link your Web site to your local multiple listing service as well as including a wide variety of items about the buying process. Consider offering a series of downloadable educational reports. Examples include explanations about FHA, HUD, foreclosures, how adjustable- and fixed-rate loans differ, closing processes, or how to save money on closing costs.

5. The Internet: more important than signs and agents?
One of the most surprising statistics from the NAR report was the steep decline in the number of buyers who located their property with a Realtor vs. on the Internet. In 1997, only 2 percent of the buyers found their property online, while 50 percent found their property through a real estate agent. In 2007, 29 percent of the buyers found their property online vs. 34 percent with a real estate agent. Buyers also found the Web to be more useful than working with agents. Seventy-eight percent reported that the Web was “very useful” vs. 70 percent who reported agents were very useful. In comparison, yard signs came in at 29 percent and open house at 24 percent.

6. Buying a home is still a real, not a virtual, activity
In 1995, Bill Gates predicted that real estate agents would become obsolete by the year 2000 because people would purchase their homes online. His prediction was wrong. The 2007 Profile shows that only 1 percent of all buyers did not visit the home they purchased prior to closing it. In fact, 81 percent of all buyers viewed the homes they purchased between two to six times.. Home buying is an emotional process for most people, and looking at online pictures can never duplicate the sense of what it’s like to walk through the property. When it’s time to purchase, 99 percent of us want to see what we are buying in person.