Pending Home Sales Lift Real Estate Business

According to the National Association of Realtors, pending home sales have increased for the sixth straight month, lending support to the idea that a recovery may be underway. Other analysts are not sure that the NAR’s assessment is correct. Earlier this year, the NAR changed its categorization of a “short sale” to a “pending home sale” when the purchaser makes an offer, instead of when the bank approves the sale. That’s created a lot of “pending sales” about three-fourths of which are unlikely to close.

The home sales market is tough, but home sales are up in part thanks to the first-time homebuyer credit, which is scheduled to expire in November. The program offers an $8,000 tax credit to first-time homebuyers and has generated a lot of interest from prospective home buyers. The increased traffic in homes for sale is good news for the real estate business. Home staging companies, property maintenance firms, landscapers, and home repair contractors are finding a lot of additional work. Real estate business financing is still hard to come by, however. The inability for these firms to access capital is driving interest in alternatives to small business loans.

Home staging is a particularly effective technique for showing off an empty home’s best qualities. Home staging requires the home to have a tidy but lived-in look, and often means that upscale furniture and other decorative touches are brought into the home. The home is professionally decorated to help the buyer envision the home’s potential. If you’re looking for real estate business financing, or furniture business financing, contact Rapid Capital Funding today for information on how our small business loan alternatives can put your real estate business in the black in no time!

Photo Credit: Juan ValideRuten, via Flickr

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