Pending home sales rose slightly in December by response to the home buyer tax credit, according to the National Association of Realtors®, a positive sign heading to the spring buying season. The Pending Home Sales Index, a forward-looking indicator of potential home sales based on contracts signed in December, climbed one percent to 96.6 from 95.6 in November, the National Association of Realtors said Tuesday. It remains 10.9 percent above its December 2008 level of 87.1.

In November, the monthly index had a double digit drop of 16.4 percent from surging activity in preceding months. NAR’s chief economist Lawrence Yun, NAR’s chief economist said that these changes and skewing of trends can be attributed to the tax credit.

“There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded,” according to NAR’s chief economist Lawrence Yun. “These swings are masking the underlying trend, which is a broad improvement over year-ago levels. December activity was the fifth highest monthly tally in two years. December activity was the fifth highest monthly tally in two years.”

The credit had been set to expire November 30 before Congress extended it to April 30. Lawmakers also expanded the scope giving current homeowners a $6,500 tax credit.

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

Regionally, the Midwest experienced the greatest monthly increase, where the index rose 5.2 percent to 86.9 and is 8.7 percent higher than the reading a year ago.

The Pending Home Sales Index in the Northeast increased 2.3 percent to 76.1 in December and is 14.9 percent above December 2008 reading.

In the Midwest the index rose In the South, the index climbed 2.2 percent to a reading of 98.4, and is 5.5 percent above December 2008 reading.

In the West the index dropped 3.8 percent to 119.9 but is 18.6 percent higher than the reading a year ago.

Yun predicts the extended and expanded tax credit will encourage 2.4 million households to take the credit in 2010. "While new-home sales will remain low due to a lack of construction, existing-home sales are projected to rise to around 5.6 million in 2010," Yun said. Last year there were 5.16 million existing-home sales.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

As the housing market continues to drop, many agents are leaving the real estate ranks in search of more stable careers. But still there is no shortage of real estate agents. The fittest just survive the challenges faced by the industry. With this scenario, it will be easier to find a good one among the current pool. But still you have to be aware of the of to find a good realtor

In getting a real estate agent, gather the necessary information. Start with a list of possible real estate agents. One way to find candidates is to talk to professionals from real estate related professions and ask their opinion. Don’t hire the first real estate agent you meet without interviewing a least three agents.

If you know someone who is employed or a professional dealing with realtors ask them for a recommendation. They can be an escrow officer, title representative, homeowners insurance salesman, and/or loan officer.

You could also make phone calls to real estate offices and ask questions. Ask the manager and/or a realtor in the office to make a recommendation not involved in their organization. With this, you would know who they respect as a competitor.

A new alternative to finding a Realtor is the internet.

After getting the names of the possible real estate agent, contact them. A good agent will always ask for an appointment to meet you. But you can give him/her the appointment he/she wants after a satisfactory telephone interview or conversation.

During the interview process, find out how much experience the agents have. Whether they worked at a time where the pressure to sell is huge and the housing market is on a downturn.

Buyers will be giving low offers especially this time and you, the sellers, should ask how the agent will market the house. You want someone who will be concerned about you and will take care of your interests.

You want someone who demonstrates ready knowledge of homes available for sale and does not have to call you back after they "check on the computer." This ready knowledge demonstrates they have actually been out previewing homes and don’t just sit around and passively wait for the phone to ring.

Also, aside from knowledge and experience, you should feel comfortable in dealing with them.

You also want someone sharp enough to ask you questions. You want a Realtor who takes that responsibility very seriously. If someone seems too much like simply a salesman, then maybe you should look a little further.

 
 

A real estate broker is a party (individual or an agency) who acts as an intermediary between sellers and buyers of real estate. They are proactive in their work as they attempt to find sellers who wish to sell and buyers who wish to buy. In the United States, the relationship was originally established by reference to the English common law of agency with the broker having a fiduciary relationship with his clients.

In the US, real estate brokers and their salespersons (commonly called "real estate agents") can wear two hats depending on if their client is the seller or the buyer. They assist sellers in marketing their property and selling it for the highest possible price under the best terms. When acting as a Buyer's agent with a signed agreement (or, in many cases, verbal agreement), they assist buyers by helping them purchase property for the lowest possible price under the best terms. Without a signed agreement, brokers may assist buyers in the acquisition of property but still represent the seller and the seller's interests.

In most jurisdictions in the United States, a person is required to have a license in order to receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed. In some states, lawyers are allowed to handle real estate sales for compensation without being licensed as brokers or agents.

The difference between salespersons and brokers

In the past, when brokers (and their agents) only represented sellers, the term ‘’real estate salesperson’’ may have been more appropriate than it is today, given the different ways that brokers and their agents can help a buyer through the process rather than simply “sell’’ him or her a property. Legally however, the term 'salesperson' is still used in many states to describe a real estate agent.

Real estate education: In order to become licensed, most states require that an applicant take a minimum number of classes before taking the state licensing exam. Such education is often provided by real estate brokerages as a means to finding new agents.

Today in many states, the real estate agent (acting as an agent of the broker with whom he/she is employed) is required to disclose to prospective buyers and sellers who represents whom. See below for a broker/agent’s relationship to sellers and their relationship to buyers.

While some people may refer to any licensed real estate agent as a real estate broker, a licensed real estate agent is a professional who has obtained either a real estate salesperson's license or a real estate broker's license.

In the United States, there are commonly two levels of real estate professionals licensed by the individual states, but not by the federal government:

Real estate salesperson: When a person first becomes licensed to become a real estate agent, he/she obtains a real estate salesperson's license from the state in which he/she will practice. To obtain a real estate license, the candidate must take specific coursework (of between 40 and 90 hours) and then pass a state exam on real estate law and practice. In order to work, salespersons must then be associated with (and act under the authority of) a real estate broker.

Many states also have reciprocal agreements with other states, allowing a licensed individual from a qualified state to take the second state's exam without completing the course requirements, or, in some cases, take only a state law exam.

Real estate broker: After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker. Commonly more course work and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of his/her own brokerage and hire other salespersons (or broker) licensees.

Becoming a branch office manager may or may not require a broker's license. Some states such as New York allow licensed attorneys to become real estate brokers without taking any exam. In states, such as Colorado, there are no "salespeople", as all licensees are Brokers.