Ilyce Glink

My mother said something interesting to me the other day. She said, "The realtors in my office are much busier than they were two months ago. They're doing real deals."

This would be just another one of those passing comments except that my mother works for the top Baird & Warner office in downtown Chicago. She has been one of the top Realtors in Chicago for the past 27 years, and in addition to doing deals even now (at age 71), she's also teaching other agents in the firm how to do their jobs in a better, smarter way.

So when my mother, Susanne Glink, says that agents in her office are doing deals, it's worth paying attention. That said, it's not like 2005 all over again. There is an abundant supply of unsold condominiums, and condos that have been put back on the market again by developers frustrated by buyers who have walked away from their deposits, and condos, single family homes and townhomes in foreclosure all waiting for someone to step up and plunk down some cash.

And then there's all of the commercial real estate that's going unsold, unrented, and undeveloped. In the building where I have our ThinkGlink headquarters, the building owner told me recently that he sees an increase in leasing activity. Indeed, there's a mortgage broker moving in across the hall, who has combined two offices into one. The building owner tells me that activity is up because people who were in 6,000 square feet are figuring out that they can do more with less and are deciding to look at (and lease) 2,000 feet while giving up the larger, more gracious 6,000 square foot offices.

This isn't a time for graciousness, either in residential or commercial real estate. It's about surviving until life gets better - hopefully somewhere in 2010.

For everyone else who is playing along at home, here are 5 Ways to Know that the Real Estate Market is Improving:

#1 The Number of For Sale Signs Starts to Shrink in Your Neighborhood.

If you have a sea of "for sale" signs littering your neighborhood, it's hard to imagine what could happen to make those disappear. Well, once those properties start selling, the property owner, bank or Realtor will take down the "for sale" sign. Walk or drive around your neighborhood and count the signs. Then, do the same thing next week. At some point, you'll notice fewer signs which means inventory is going down in your area. You can also do some of this electronically, but going online to Realtor.com and other real estate listing sites that allow you to search for houses for sale by price and location.

#2 Your Realtor Takes More Time to Return Your Phone Call.

These days, it's easy to get your Realtor's attention. Any Realtor worth his or her salt will bend over backwards to give you exceptional customer service because that's what you do when a market has almost ground to a halt and you want to keep every customer you have completely happy. But the day will come when your Realtor takes a little more time to answer your calls and emails. And you should welcome that delay (well, a little) because it's the sign of a healthier real estate market.

#3 The High Cost of Financing or Refinancing Real Estate Drops.

Right now, loan fees are about as high as I've seen them in the 20+ years I've been writing about real estate. I'm not sure what lenders are thinking other than this is a great way to pad their profits in a tough market. And their first quarter numbers (1Q2009) are really showing the strength of the refinancing market. But competition will come into play again, as the residential real estate market bounces off the bottom of this very deep trough. When it costs just 1 percent in loan fees to finance or refinance your property, you'll know that the credit markets are gaining strength.

#4 The Pace of Foreclosure Filings and the Number of Homes in Foreclosure Falls.

The number of foreclosures is still rising quickly. One of the signs that the real estate market is improving is reducing the pace of foreclosure filings from banks and reducing the number of homes foreclosure. There are two ways for that to happen. First, homeowners have to make their mortgage payments on time and do whatever they have to do to get their mortgages modified to a reasonable and affordable amount. Second, lenders need to push more homes through the foreclosure tunnel so they can get them out and sold on the other side. Only when the pace of foreclosure filings and the total number of homes in foreclosures falls will we be able to put a floor on the housing market.

#5 Housing Prices Stop Falling.

The news this week that homes in Arizona have fallen more than 50 percent in value since the top of the market was at best depressing. While home valuations haven't been damaged that much elsewhere (Arizona was the first to hit the 50 percent mark), everyone has taken a bath as the housing bubble has burst. But before housing prices can rise, they've got to stop falling. And that will only happen when the number of buyers increases to create a more balanced real estate market. What's helping there? The $8,000 first-time home buyer tax credit. But it ends on December 1, 2009. Will it be extended? That's got to be one of the options the Obama administration is looking at. There has to be some motivation other than the lowest interest rates in 50 years, to help sop up all of the housing inventory that is currently for sale.

Are there any other signs you'd add to this? Please leave your comments here.

When you're deep in debt you may think you should sell your home. What if you live with someone in this situation? Is it your responsibility to help him or her pay off debt by selling the home the two of you share? You need to calculate how much each of you has spent on the property's maintenance, mortgage and renovation to determine how much each of you should get from selling the home. If you're unmarried and don't have a partnership agreement you need to familiarize yourself with your state's common law marriage rules.

Question: I have been in a home with a partner for a few years. I have paid all of the mortgage payments, all of the property taxes, and all water and sewer bills. I also put an 18’x25’ addition onto this home with a new roof and all new windows and a stamped concrete drive way.

My partner has got herself in debt for $175,000. This amount does not include the first mortgage on the home. I am not a cosigner for her debts and I didn’t get anything out of all the stuff she charged. She is now claiming that we should use the proceeds from the sale of the house to pay off her debt and then split what is left.

Since I don’t owe any of these debts, and since I have paid for this property on my own, do I have to do this? Please advise.

Answer: The real question you need to focus on is what is your financial arrangement with this woman? Is she on the title to the property? If so, is she supposed to share in the expenses of the property? Are these arrangements written down anywhere?

If she is on the title to the property and if she is supposed to share in the expenses as well as the profits, then you should agree to her request to share in the profits - once her unpaid share of the expenses has been deducted.

So, tally up what you have spent for the mortgage, maintenance, upkeep and renovation of the property and divide that number in two. Present your partner with a copy of the bill. Once you sell the property, deduct her share from the net proceeds and split whatever remains. Fair is fair.

If, however, her name is not on title or the mortgage, you may still have an obligation to share the revenue with your partner.

Those states that recognize common law marriages and that recognize same sex marriages would allow each person in the relationship to claim ownership of the property. In your case, the home could be considered owned by both of you and upon the sale of the home, both of you would share in the expenses of the home, and any profit from its sale.

While this issue may not apply to you and may not apply to the state you are in, the issue will become more prevalent in states where common law marriages are recognized. This issue will also become more prevalent in states that are starting to recognize marriages (whether formal or common law) between same sex couples.

Please talk to a real estate attorney to make sure you're not missing anything. And, be glad that you are not a co-signer to her debts.