Meaningful Moves

Selling this spring? Start cleaning now

2012-02-13T06:57:00.000-08:00

Spring is the busiest time of the year for selling a home. The trees are budding, the grass is green, the songbirds return, and homebuyers feel the urge to begin their home-buying search.
January is one of the best times for home-sellers to begin the home-selling process. If you are planning to sell your home in the spring, January is the time to start moving. Successful home-sellers know there is more to selling a house than simply putting a “for sale” sign in the front yard, negotiating the top price for their home, and handing the keys over to the next homeowner. In today’s economy, your home has to sparkle to differentiate it from the competition. The drive-up must be inviting, the interior must be spotless, and the price must truly be competitive.
January is a good time to put the yard and exterior of the home back in “drive-by” condition. A brisk January day is a good time to clean up the debris blown into your yard by the winter winds. Rake up the stray leaves and trim the dormant bushes and hedges. If it is warm enough, wash the windows and wash or repaint the exterior doors. Clean the rain gutters. And while you have the ladder out, take down the Christmas lights. The lights looked nice in December, but now, some of the bulbs are burned out, so take them down. The new buyers can design their own lighting scheme next year.
January is also a perfect time to spread some weed and feed fertilizer on the lawn. Make sure the grass really is greener at your house than the other houses on the block. A tidy, green lawn will help your house sell quicker.
January is also a good time to get the interior of your home ready for the spring selling season. While preparing to sell your home, take some time to really inspect your home’s interior. Enter your house and look at it the way a new buyer will look at it. Pretend you are visiting for the first time. Now, start removing things. Donate or sell the items you really don’t use, put away the items of sentimental value and remove the items that are truly high-value. Remove everything you don’t want lost, broken, or touched.
The candlesticks you received as a wedding present from Grandma 20 years ago may be nice, and the dusty Kitchenaid mixer, sitting on the kitchen counter, will be handy when you make Halloween cookies in 10 months, but new buyers won’t appreciate them. The same goes for your child’s first-grade drawing proudly posted on the refrigerator door. They all have meaning to you, but put them in storage! They detract from the house.
Donate the sneakers you purchased to run the marathon you never entered. Pack that high school prom dress you will never wear again. No matter how nice your “stuff,” buyers want to see your house, not your possessions or memories. You are planning to move so pack your keepsakes, unused kitchen tools, and clothes that are too small, too old, or too outdated to wear.
You really won’t miss the items, and buyers will be able to “see” the house more clearly. You are selling your house, not your stuff … so remove it. The more you remove, the bigger your home will appear to prospective buyers. Rent a storage space if you have to and clean out the closets. It will be money well spent!
After removing all the clutter (including most of your family pictures), start cleaning. Really clean. A quick vacuum of the carpet will not make your home “showroom ready” to potential buyers. Deep clean. Have the carpets professionally cleaned, scrub the tile and vinyl flooring, clean the baseboards, wipe down the door and window frames, disinfect the bathrooms, and scour the oven and cooktop.
Do it all! If the walls have spots that can’t be cleaned, paint the walls. If the carpet can’t be cleaned, replace the carpet. Everything you do today to improve your home’s appearance will pay dividends when you sell, either through a higher price, a quicker sale, or easier negotiating. Buyers tend to “horrible-ize” any blemish in a house and hold your house to an idealized standard. Remember, the used house you are selling is a buyer’s new house, so they expect it to be in new-house condition.
Finally, after all the yard work is complete and the interior pristine, you are ready to begin the most competitive portion of the home selling process … pricing and marketing. I recommend speaking with a Texas REALTOR® to maximize your competitive edge when marketing your home. According to the National Association of REALTORS® 2011 Profile of Texas Home Buyers and Sellers, only 8% of sellers sold their home without the assistance of a real estate agent, and half of those sellers knew the buyers prior to the home sale. If you don’t already know the name of the next buyer of your house (only 4% of sellers do), can you really afford to miss the remaining 96% of the buyers?
Interview several Texas REALTORS®, ask them for their professional opinion of the value of your home, request a comparative market analysis, known in the real estate business as a CMA (and usually provided free of charge) of similar homes in your area, compare marketing plans presented by these Texas REALTORS® … and, finally, listen to their advice.
To sell your house this spring, start the process now. Dig out the cleaning supplies, de-clutter your house, call a Texas REALTOR®, and get started. Today.

Do the math … affordability of homes depends on many factors

2012-02-07T10:41:00.000-08:00

I did some math this morning when I saw 30-year mortgage rates still under 4%. That’s unbelievably low.
How low? For a median-priced Texas home of $150,000, monthly mortgage and principal payments come to $716. Compare that to December 2000, when the median-priced home was only $128,500 but interest rates were 7.65%. Plug those numbers into a mortgage calculator and you’ll get a monthly payment of $912.
So we’re talking about $196 less per month today compared to December 2000 … even though the actual median price of homes is $21,500 higher now. That’s a savings of $2,352 during a year or $70,560 over a 30-year loan.
Now, there are other factors involved. First, you have to do more these days to qualify for a loan than simply ask for one. Home prices in your neck of the woods may be higher or lower than the median. (Or perhaps your taste in homes is higher or lower than the median.) And if you really want to sharpen your pencil, you can figure out inflation, property taxes, your own income, and so on.
The point, though, is this: Low interest rates give buyers incredible buying power. If you’re wondering what you can afford or what it takes to qualify for these low rates, talk with a Texas REALTOR®.

Don’t take anyone’s word for it

2012-01-26T05:52:00.000-08:00

Negotiations were tense when I bought a used backyard play house for my two-year-old. The seller wanted $60. I countered with $50. We consulted our attorneys, faxed amended offers back and forth – include the plastic fireplace logs or no deal – but finally settled on $52.75.
Write it down
Alright, I exaggerated a bit. I did buy a play house, but I just called a guy who posted an ad, haggled for a minute on the phone until we agreed on a price, then showed up the next day with the money.
While verbal negotiations are a good way to buy a $60 toy, they’re a lousy way to buy a real house. Even if your initial offer to a seller is in writing, any subsequent counteroffers should be in writing, too.
It’s your word against someone else’s
Think I’m paranoid? Let’s say you submit a written offer on a home, and you and the seller verbally negotiate until you agree on a price and terms. You’ve bought a house, right? Wrong.
Until your agreement is in writing and both parties have signed it, that seller could accept another offer. Talk to a Texas REALTOR® to learn the best way to expedite negotiations and make them legally binding.

The next level of clean

2012-01-06T05:53:00.000-08:00

Aside from the necessary intrusions, the most inconvenient aspect of having your house on the market may well be keeping the house in showing condition.
Making a good impression on buyers is very important. It's not a huge leap for a potential buyer to equate a cluttered or dirty house with poor maintenance of the overall structure, systems, and appliances. Whether accurate or not, this can or result in a lower offer than the home might otherwise bring … or worse, discourage an offer altogether.
Getting rid of clutter and keeping up with the constant cleaning can be a full-time job, so it helps to get help from everyone in the family. Even if you are neat and organized and keep a clean home, showing condition is another level. Keeping the house at such a level can be overwhelming. It may even benefit you to hire a short-term professional service to help ease your burden.
Some buyers may call for last-minute appointments to see your home. If it has gotten too messy, you may find that you simply can't spend the time to get it ready for a showing.
If you do find out you've only got a few minutes and it looks like a West Texas wind storm just swept through your house, pick up what you can and stow it somewhere—the trunk of your car, the washer and dryer, maybe even the dishwasher. Sure, they may take a peek inside your appliances, especially if they're conveying with the sale, but there's also a good chance they won't and your secret will remain safe.
You may even rent a storage space for your old furniture and other large or off-season items.
Keeping your house in prime condition when it's on the market is tough, but many hands make light work. Don't neglect this important part of selling your home—it may make a huge difference and considerably shorten the process.

Texas economy still best; 2012 looks to mirror 2011

2012-01-03T05:16:00.000-08:00

On New Year’s Eve, many bid farewell to the old year by singing “Auld Lang Syne” lyrics that include, “Should old acquaintance be forgot and never brought to mind.“
Apparently, it will be hard to forget 2011 because 2012 is expected to look pretty much like it.
If the experts are correct, however, Texans will again have more to sing about in the New Year than will their fellow Americans.
Texas: Slow but still leading
Real Estate Center Chief Economist Mark Dotzour, Ph.D., sees “modest, positive economic growth” for the nation in the next 12 months. Nationally, he expects 2012 to look something like 2003-06.
By comparison, Dotzour predicts a “much more robust economic outlook” for Texas in the coming year. He bases this on documented evidence that Texas dramatically outperformed the United States in 2011.
The state’s positive job growth came not only in the energy industry but also in construction, manufacturing, retail, transportation, professional business services, health care, and hospitality.
“Job growth is occurring in nearly all Texas metro areas and is likely to continue into 2012,” says Dotzour.

Photo Card

2011-11-29T11:13:00.001-08:00

Initially Merry Christmas

Personalize your holiday card this Christmas with Shutterfly.

View the entire collection of cards.

Why pricing your home from a Web site could cost you thousands of dollars

2011-11-23T06:00:00.000-08:00

Home valuation Web sites are great … except when they’re wrong … which is most of the time. If you want to read a lot on this topic, check out this article from SmartMoney, “The Fuzzy Math of Home Values.” If you prefer the summary, here goes:
Some real estate Web sites like Zillow and Homes.com estimate the value of most homes in the U.S. But even the sites themselves will tell you their numbers are often off. Way off.
In Texas, Zillow rates their accuracy one star out of four. Even for states with four-star accuracy, the valuation is off by at least 20% about a quarter of the time. (If I were younger, I’d end the last sentence with five or six exclamation points.) And the values for Texas properties are even worse than that?
Think about it. If you sell your home for 20% less than it’s worth, you’ve just lost a big chunk of change. Overprice by 20% and your home will languish on the market.
Sure, online home valuations are fun, but when I’m ready to sell my home, I’m going to work with a Texas REALTOR®.

Why has this great house been on the market for so long?

2011-11-17T07:02:00.000-08:00

If I told you a house had been on the market for the average amount of time for its neighborhood, would that affect your decision to make an offer? How about if I told you that it had been on the market for 13 months?
Like it or not
It shouldn’t matter how long a house has been on the market – if you like the house, you like the house. But some buyers get scared when a property has been on the market for a long time. Rather than worrying, however, they should ask some questions.
You’re just guessing
Buyers may think a property that’s been on the market for a while has serious problems – termite infestations, toxic mold, haunted bedrooms – but it may not. There are plenty of reasons why a home could on the market.
The seller might’ve set his price too high at first. The home may have been listed too soon, when repairs were underway or a tenant was living there. Maybe the sellers aren’t very motivated, preferring to test the market for a while.
Find the real reason
Ask why a particular property has been on the market longer than you’d expect. A Texas REALTOR® can also help you figure out why a house has lingered on the market – and if you should be concerned.
Don’t let a number scare you away from a great house.

Turning off the tap

2011-11-08T06:01:00.000-08:00

Unfortunately, the drought in Texas continues and, according to most reports I read, it’s not likely to let up for another year. For me, that means it’s time to scale back on our lawn watering.
Like many places throughout Texas, my neighborhood has been on water restrictions throughout the summer, but those just got a little tougher. We’re now restricted to watering once per week and this has created a little dissonance for me.
On one hand, I feel an obligation to keep my lawn green and maintain the property, both for my own benefit and for property values in the neighborhood. On the other hand, when I see cracks in the ground in my park and watch wildfires race around the state due to lack of rain, it’s hard to justify my need for green grass.
Fortunately, we’re heading into winter, so my watering needs will decrease. However, what will I do when the heat of summer kicks back up next year? My plan is to need less water.
For example, we have great trees in our front yard, but they block sunlight, creating patches where grass doesn’t grow well. Rather than trying to nurse those patches back to life next year, I think I’ll install a stone island where I can place a bench to watch my little guy play in the yard. Also, we have an expansive backyard covered in nothing but grass. Over time, I think we’ll put in walkways, gravel paths and other landscaping that doesn’t need water to look great.
While I love my green grass, the price we pay for it – both in precious resources and actual dollars – is just too high. It’s time for Casa de los Armijos to have a little less green in the front yard and a little more green in our hearts and wallets.
Are you on water restrictions? You can find out from the Texas Commission on Environmental Quality. Also, you should know that you will have a chance to help your cities and counties gain access to affordable funding for water through Proposition 2, which is on the ballot this month. Learn more and go vote early through Nov. 4 or on Election Day on Nov. 8.

Have a Happy and Safe Halloween!!

2011-10-28T06:11:00.000-07:00

-Swords, knives, and similar costume accessories should be short, soft, and flexible.
-Avoid trick-or-treating alone. Walk in groups or with a trusted adult.
-Fasten reflective tape to costumes and bags to help drivers see you.
-Examine all treats for choking hazards and tampering before eating them. Limit the amount of treats you eat.
-Hold a flashlight while trick-or-treating to help you see and others see you. Always WALK and don't run from house to house.
-Always test make-up in a small area first. Remove it before bedtime to prevent possible skin and eye irritation.
-Look both ways before crossing the street. Use established crosswalks wherever possible.
-Lower your risk for serious eye injury by not wearing decorative contact lenses.
-Only walk on sidewalks whenever possible, or on the far edge of the road facing traffic to stay safe.
-Wear well-fitting masks, costumes, and shoes to avoid blocked vision, trips, and falls.
-Eat only factory-wrapped treats. Avoid eating homemade treats made by strangers.
-Enter homes only if you're with a trusted adult.
-Never walk near lit candles or luminaries. Be sure to wear flame-resistant costumes.

TIME TO BUY

2011-10-24T11:44:00.000-07:00

It was refreshing to see a headline in the weekend Wall Street Journal declare that
"It's Time to Buy That House."

The article, written by Smart Money columnist Jack Hough, appeared on the front page (B7) of the Weekend Investor section and analyzed how buying beats renting in many communities these days. A few excerpts:

"Two key measures now suggest it's an excellent time to buy a house as a long-term residence or an income property (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its pre-bubble average, suggesting the financial advantages of homeownership once again await buyers. Second, when ultra-low mortgage rates are taken into consideration, houses are the most affordable they've been in four decades of data.

"... For most house buyers, mortgage rates are a key determinant of their total costs. Rates are so low right now that houses in many markets look like bargains, even if price-to-rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or points.) The latest rate is still less than half the average since 1971."

How green is that home really?

2011-10-10T06:21:00.000-07:00

Many homes you see listed for sale these days advertise they are “green” homes. But what does that mean? Until now, there has been little or no mention of a home’s green features in a property appraisal report. But with the introduction of a new appraisal form, home sellers as well as potential buyers now have a tool to tell them exactly how green a home really is.

The Appraisal Institute, one of the nation’s largest professional associations of appraisers, has released a new form – an addendum to the typically used appraisal form – to help appraisers consider energy-efficient home features in a property appraisal. As an additional benefit, the new form can be used by sellers to identify green features to advertise when selling their home and can be used by buyers to compare green features of homes they are considering purchasing.

2011-10-03T16:53:00.000-07:00

One of the most discussed issues at our house is … our house. Not the house we just bought, mind you, but the one my wife owned before we got married. We made the decision to hang on to it and give property management a shot.

I’m not going to say we’re failing, because that would be inaccurate, but suffice it to say we’re pretty much ready to sell it.

Now, I’m sure everyone at HGTV would tell me the house isn’t “ready to sell” … it needs some new appliances, a fresh coat of paint, and other improvements.

Here’s the problem: We did a bunch of projects on the house we just sold, and I truthfully don’t know if we can go through it again so soon. Plus, we live almost 40 miles away from the rent house … and that can be an aggravating drive in Austin traffic.

We discussed it with our Texas REALTOR®. She said something that really resonated with me: She said, “Price fixes a lot of ugly.”

We’re in a pretty good position because we don’t have to sell it. I know many people don’t share that luxury, but just remember … you don’t have to break the bank if you really need to sell. A downward revision in your asking price will almost always do the trick.

One less fee to worry about

2011-08-31T05:55:00.000-07:00

I'm not a fan of tacked-on costs. I don't like surcharges, usage fees, and processing charges. I'm especially annoyed with fees that appear to be nothing more than attempts to squeeze a few more bucks out of me.

Thanks to Texas REALTORS®, there's one less add-on to worry about … and a pricey one at that.

What's a couple thousand dollars more?
Imagine you're a homebuyer or seller and you find out there's a fee tacked on to the sale of the home. This fee is payable to someone who isn't even involved in the transaction … someone who didn't provide you any service.
Now imagine the fee is 1% of the sales price. We're talking $2,500 on a $250,000 home.
Outrageous, right? But that's exactly what's been happening with so-called private transfer fees.
The fee that keeps on stinging
These transfer fees … typically attached to properties by developers … are due anytime the property changes hands. They often remain in place for 99 years!
Think about that … a developer sells a home, makes a profit, and then gets 1% of every future sale of that home for the next century. Not a bad deal if you're the developer.
Putting an end to this nonsense
Texas REALTORS® supported and helped pass a bill during the 82nd Texas Legislature to prohibit future private transfer fees. For properties with private transfer fees already attached to them, the new law requires proper disclosure, so at least no one gets a nasty surprise when trying to close the transaction.

Lessons from a master negotiator

2011-08-29T06:09:00.000-07:00

Are you a good negotiator?
My cousin thinks he is and put an offer on a house last week. The house was listed for $355,000, and he offered $315,000. I asked why his offer was so low, and he said, "That's how you negotiate."
Don't make up a number
I asked if there was something wrong with the property or if it was overpriced. He said, "No, it doesn't need much work, and my REALTOR® determined it was priced in line with the neighborhood. But you have to start low if you're ever going to get a good price."
I hope you have time
I called him today to see if he'd gotten a response from the seller, and he said, "Yeah, the guy came down to $350,000 and said it was his final offer. I'm not paying that."
Did I mention that my cousin's been looking for a new house for almost two years?
Be reasonable
It's a good idea to ask for a price reduction when buying a house, but your offer should have some basis in the reality of your real estate market—unless you enjoy wasting time with fruitless negotiations.

Ward Lowe Consumer columnist

Are open houses useful or a waste of time? Yes

2011-08-23T12:59:00.000-07:00

I love it when I happen upon an open house in my neighborhood. I’ll wander in, check out the kitchen and bathrooms – wow, that’s a lot of avocado green – and grab a cookie on my way out.
You might be thinking, You just answered the question: open houses are a waste of time. Not so fast. Even though I come across as a dreaded lookie-loo, I know two families interested in moving to my neighborhood.
Yes, I’m nosy and enjoy checking out neighbors’ homes, too, but when I visit one that might work for my friends, I’ll e-mail the address and MLS number.
It’s not for everyone
Not everyone likes the idea of people parading through their home on a Sunday afternoon. And it takes a lot of effort to execute an open house, from cleaning and staging to moving your family somewhere else for three hours. You and your Texas REALTOR® need to come up with a comprehensive marketing plan specific to your situation, with or without open houses.
But you never know
One of the biggest arguments in favor of holding an open house is that it increases the visibility of your home. Because you never know where your buyers will come from. They could attend the open house, be the clients of a REALTOR® who visits your open house, or get an e-mail from me asking, Do you guys like avocado green?

Before we set sail

2011-04-13T06:18:00.000-07:00

I’m so excited, I can hardly stand it: my husband and I are going on vacation!!! A real vacation! No sleeping on family members’ fold-outs and no work. Just beaches, water views and food enough for an army for seven glorious days. I can smell the sea water already… Before I reach vacation bliss, however, I need to prepare. Fortunately, our nanny and my son’s two grandmothers will be spoiling him rotten at our house while we’re gone, so our home won’t be empty. If it were, here’s what I would do. 1. Pick up the papers – A dead giveaway that your house is ripe for burglary, we ask neighbors to pick up our newspapers while we’re away. Stop the mail – If we’ll only be gone a few days, a neighbor grabs the mail. For longer trips, we ask the post office to pause it, which keeps us in the good graces of our mailman. 2. Turn off the water – Growing up, our neighbor’s water pipes burst during their vacation. That minor household annoyance became a property damage nightmare because no one noticed until we saw water running out their front door. Trust me, shut off your water. 3. Care for the pets – When we leave for just a day or two, friends come by to feed the pets. For longer trips, we make other arrangements. Libby, the big dog, gets boarded at doggie daycare; Dora, our tiny rescue dog with “separation issues,” stays with a family member; and Chookie, the cat, stays home and dutifully expresses her superiority to the neighbor who comes to feed her. 4. Light the outside – We’re lucky to have three big lights outside our house that are timed to light the property from 7 p.m. to 7 a.m. If you aren’t as lucky, I’d leave an outside light on. The minor expense is worth the peace of mind. 5. Remove garage door openers – Do you keep a garage door opener in a car parked outside your home? If so, in a matter of minutes, a thief can gain access to your house, often avoiding alarm systems. Throw the garage door openers in an inside drawer and avoid the risk. Taking all the right steps to get ready for vacation can be hectic. But the prospect of crystal blue waters and a daily nap poolside make it all worthwhile. Hasta luego!

Please spend your money

2011-03-19T05:53:00.000-07:00

I watch a lot of HGTV. Not only are they relevant to my profession, but having just remodeled one house and bought another one, I find the shows interesting.
One show I’m particularly fond of is Holmes Inspection. If you’ve never seen it, here’s the premise: Due to a vague or less-than-thorough inspection, someone unwittingly buys a home that needs a ton of work. They usually get some inkling what they’re up against during a small remodel. Enter contractor Mike Holmes. As the show progresses, he fixes the house, brings it up to code, and makes everyone happy.
I feel really bad for the buyers. They got an inspection and thought they were making an informed decision … in other words, they tried to do the right thing, but it just didn’t work out. Sometimes that happens … I get that.
What I don’t get is why anyone would ever buy a home without a professional inspection.
It’s always better to know what you’re getting into. The cost of a home inspection is usually between $250 and $500. Pardon my candor, but if that’s a prohibitive amount, you probably shouldn’t be buying a house.
Here’s a piece of related advice: Go to the home inspection and walk through with the inspector. He works for you and should be willing to tell you what he’s looking for and what he finds. He will also create a detailed report for you.
When you go through the report, keep this in mind – a house doesn’t pass or fail an entire inspection … it’s more like a checklist where individual items may or may not be up to current building code. So, if you’re buying a home that’s a little older, there are going to be details that need attention. And that’s OK.
If you purchased a termination option and the house has more issues than you want to deal with, you’re only out the cost of the inspection and the option fee. Yes, it’s a healthy chunk of money – but it’s way cheaper than buying a lemon.

If you don’t hang onto your money, someone else will …

2011-03-01T05:55:00.000-08:00

My wife and I bought a house in December and since then, I’ve had two scams come through my mailbox. And I want to warn you about them.
The first ruse is an oldie … it offers to file homestead exemption paperwork on your behalf – for a $35 fee.
Fact: There is no fee for filing your homestead exemption. Make it easy on yourself and download the form now. Don’t send them a dime.
The second offer is one I hadn’t previously seen. You, the homebuyer, get a letter from a deed retrieval service suggesting you send $87 for a copy of your general warranty deed and property profile. They even have the audacity to try and impose a $35 late fee if you don’t act by a prescribed date!
Fact: You or your seller paid to have your deed prepared and recorded at closing. Not only that, but the county clerk or title company will send the original copy to you, usually within the first two weeks after closing. If you can’t find it, go to your county clerk. You can get a copy for as little as $10. Some title companies will even provide you a copy free of charge.
In each of the above cases, the documents appear on official-looking paper with lots of legalese and data about you and your property – such as your name, the closing date, and your address. This personalized information gives the document an authoritative look, but is actually publicly available information.
So how does it work? These companies cast a broad net. I live in Austin, where there were over 20,000 homes sold last year. With those numbers, it’s not difficult to imagine the scammers getting a few bites every day – they clearly must trick enough people to justify combing public records and sending out the form-letters.
If you recently bought a house, or are planning to in the near future, keep an eye out for these kinds of scams. And if you’re unsure or feel intimidated, ask your Texas REALTOR® for help.
I know, I know … in the world of real estate scams, these are small potatoes – the most you’d be out would be just over $150, so they’re not like mortgage fraud, house-flipping schemes, or foreclosure-rescue scams, but I want you to hang on to your money.

Give yourself an option

2011-02-18T13:20:00.000-08:00

Whoever invented the undo function in computer software is one of my heroes. Think about it: If something doesn’t turn out the way you intended, hit Control + Z and – poof – it never happened. There aren’t many places in life where you get to undo your actions like that, but the option period in a real estate contract is one of them. It lets you walk away from purchasing property, legally undoing your contract.
How do I know? At my REALTOR®’s urging, I purchased an option period in the contract to buy my current home. With three days remaining in that period, my home inspector found a leak in the plumbing system that he couldn’t pin to a source. The next day, I had a plumber scour the house. I was ready to exercise my termination option, to undo the contract, if he couldn’t figure out what was going on. He eventually located the source: a faulty valve in the sprinkler system. No big deal. The seller fixed it, and I bought the house.
If that leak had turned out to be something larger, however, I had the chance to hit Control + Z on the whole deal. That’s what the option period is for, and it’s right there in your real estate contract.

Sellers: Would you respond to an insult?

2011-02-08T06:23:00.000-08:00

If a potential homebuyer made you a low offer … and I mean really low … would you be offended?
Many sellers are. So offended that they refuse to respond. After all, it’s an insult!
That’s one way to look at it. Another is this … Someone just showed interest in buying your house. Isn’t that what you wanted when you put it on the market?
Perhaps the person who made the offer is willing to come much closer to your asking price. Your Texas REALTOR® can help you find out. There are ways to respond that don’t tie up your property while you determine whether this buyer is serious. You may learn that he’s just fishing. Then again …

Sellers … let go (while taking control)

2011-01-05T08:13:00.000-08:00

As a seller, you have no control over some things that homebuyers factor into their purchase decisions. Location comes to mind. You can't do much about the quality of schools in your area or the nearby shopping options. My first house had no attic.
On the other hand, there are many things you can do to make your property more attractive to buyers. You could take care of long-needed repairs. You could tackle a remodeling project or spruce up your landscaping. You could "stage" your home to increase its appeal. And then there's the biggie … you have control over theasking price.
These decisions and others will affect how long your home is on the market and how much you sell for. The key is to figure out which changes will be most successful in helping you meet your goals.
A Texas REALTOR® can help you understand what actions will make the biggest difference to buyers. Once you know more about these factors, you can make good decisions about how to proceed with the sale of your house.

Market versus appraised value

2010-09-27T12:16:00.000-07:00

The appraised value of a property is a professional estimate of a property’s market value. It’s based on the recent sales of similar properties, square footage, location, construction quality, and more. An appraisal varies in cost depending on the price and size of the home. Most lenders require appraisals as part of the loan application process.
But don’t confuse the appraisal with market value. The appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. And it should give you a pretty good idea what your home will sell for. Ultimately, though, your home’s market value is the price a buyer is willing to pay for it. Having your home professionally appraised before putting it on the market will help you and your Texas REALTOR® determine a fair asking price. There are other methods of determining the value of your home, including a comparative market analysis (CMA). A CMA compiles information and sales prices from homes similar to yours from your neighborhood that have sold recently. Many Realtors perform CMAs for clients and potential buyers.
Whether you rely on a CMA, an appraisal, or both, you will be able to price your home according to objective measures rather than a gut feeling or a number plucked from the air.
Texas Association of Realtors®

Texans pay less of our income on shelter

2010-08-30T08:29:00.000-07:00

A new study from the Real Estate Center at Texas A&M University explains why Texas’ housing market fared far better than other states during the current downturn. It also suggests why the state’s economy is expected to continue to do better than the rest of the nation in the coming months.

“Texas’ lower-than-national-average housing cost is one reason for the state’s higher-than-national-average growth rate,” says Ali Anari, Ph.D., a Center research economist and one of the study’s authors. “When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted.”

“These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year,” says Center Chief Economist Mark Dotzour, Ph.D. “The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life. Texas offers a lower cost of living than many places in the United States.

“This allows Texas employers to be able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy,” says Dotzour.
Since 1987, the average annual expenditure for shelter per consumer increased in every major American metropolitan market.

Texas data for the study came from the Dallas-Fort Worth and Houston-Galveston-Brazoria metro areas because they are among the major metropolitan areas for which consumer expenditure data are available. These two metros accounted for 60.3% of Texas’ labor force last year and 64% of Texas’ gross domestic product (GDP) the previous year.
“Houston and Dallas consumers spent the smallest shares of their incomes on shelter in 2008 (18.6%),” says Anari.

The two Texas metros in the study had negligible increases in their shelter expenditure shares from 1987 to 2008. Houston’s share rose 1% while Dallas’ share increased 2.2%.
According to the National Association of REALTORS®, Houston was the only metro in the study to post a home price appreciation, albeit a small one. Dallas had the nation’s smallest home price decline (-3.8%).

“The study found that the larger the share of housing expenditures in the consumer’s budget, the more home prices in their region have fallen since 2007,” says Anari, who conducted the study along with Dotzour.

“Consumers allocate their income among various goods and services,” Anari says. “By doing so, they determine the quantities produced and prices of consumer goods and services.

“Regardless of income level, the most important items in a consumer's budget are food, shelter, and clothing. However, no matter how important an item, its share of a consumer’s total expenditures cannot continually increase for a long time.”

When expenditures in a particular category in the consumer’s budget take larger and larger shares of total expenses, consumers look for less expensive substitutes, which can lower demand for more expensive goods and services, leading to lower prices for those goods and services. “For example,” says Anari, “if the price of beef gets too high, people eat more chicken.”
Consumers have two basic shelter choices: buy or rent. Shelter expenses run the gamut from rent to mortgage interest, to property taxes, to insurance, to repairs, to security and other expenses.

“Even when on vacation, consumers have shelter expenses,” points out Anari, “from costs on vacation homes to hotels and motels. Family members in college must be housed, and that’s another shelter expense.”

Anari points out that home price changes affect expenditures and wealth. Lower housing costs allow consumers to spend more on other goods and services, leading to higher regional economic growth, increased growth rates, a larger labor force, and more demand for goods and services.
“At the same time,” he says, “lower costs and prices of real estate properties can significantly increase economic productivity, lead to more investments, and increase economic growth rates.”
Where were shelter shares of income the highest in 2008? You guessed it. California. San Diego led the nation with 30.8% of residents’ income going to shelter. Compare that to Houston and Dallas-Fort Worth, where residents spent just 18.6% of their income toward shelter. No wonder Texas is still where folks want to be.

JUST FOR TEXANS!!!!!

2010-08-05T08:24:00.000-07:00

Visit these new microsites

First-time homebuyers, check out TxHomePrograms.org to find out which special programs you may be eligible for.

Existing homeowners, go to KeepMyTexasHome.org if you’re in danger of falling behind on your mortgage payments.

4th of July Celebrations in the DFW Area

2010-07-02T07:45:00.000-07:00

7/3/2010
Kaboom Town Fireworks Display
Addison, Texas
www.addisontexas.net
The dazzling 30-minute fireworks show is choreographed to music and a live radio
simulcast on 100.3 JACK FM. Rated one of the top places to watch fireworks in the
country. Starting at 5:00 p.m. - midnight.
7/3/2010
Arlington Highlands July 4th Celebration
Arlington, Texas
www.arlingtonhighlands.com
Bring the whole family for an evening of fun and festivities at the Arlington Highlands
July 4th Celebration from 7:00 p.m. ~ 10:00 p.m. with live entertainment. Around 9:30
p.m. experience a fireworks extravaganza.
7/3/2010
Light Up Arlington
Arlington, Texas
www.arlingtontx.gov
Arlington's annual July 4th fireworks festival moves downtown. Enjoy a night filled
with live music, great food and children’s activities topped off with fireworks.
7/3/2010
45th Annual 4th of July Parade
Arlington, Texas
www.arlington4th.com
Parade entries include marching bands to exotic automobiles, military color guards to
clowns, and dignitaries to unique presentations. Additionally, the parade has a
distinguished assortment of floats. Starts at 9:30am.
7/3/2010
Farmers Br Independence Day Celebration
Farmers Branch, Texas
www.farmersbranch.info
The Farmers Branch Independence Day Celebration will be held at the Farmers
Branch Historical Park at 2540 Farmers Branch Lane. Starts at 7:30 p.m. Free.
Fireworks at 9:35 pm.
7/3/2010
Liberty By the Lake July 4th Celebration
The Colony, Texas
www.ci.the-colony.us
Bring out the whole family and celebrate America's freedom in The Colony - Texas
style! The fireworks are scheduled to begin at 9:30 p.m.
7/3/2010
Quad Cities 4th of July Fireworks Celebration
North Richland Hills, Texas
www.nrhtx.com
At The Hills Shopping Center, located at 6351 Boulevard 26. Admission and parking
are free. The fireworks will start at 9:30 pm.
7/3/2010
Frisco’s 8th Annual Freedom Fest
Frisco, Texas
www.friscofreedomfest.org
Frisco Freedom Fest at Pizza Hut Park marks its ninth year as the city's premier,
signature event! One of the biggest fireworks extravaganza in North Texas.
7/3/2010
7/4/2010
Lone Stars & Stripes Fireworks Celebration
Grand Prairie, Texas
www.lonestarpark.com
Enjoy two full days of exciting live Thoroughbred racing and fun activities for the
whole family followed by our 20-minute fireworks spectacular choreographed to
music.
7/4/2010
Fair Park Fourth
Dallas, Texas
www.fairpark.org
Fair Park Fourth is free and open to the public and will feature a state-of-the-art
national class fireworks program. Free admission to all the museums, musical
performances, games and plenty of Fourth of July food favorites.
7/4/2010
Annual Independence Day Celebration
Flower Mound, Texas
www.flower-mound.com
A free family event at Bakersfield Park, 1201 Duncan Lane. Gates open at 7 p.m. with
concessions and children’s activities including a bounce house, giant slide, obstacle
course, and rock wall, and face painting.
7/4/2010
28th Annual Fireworks Over Lake Grapevine
Grapevine, Texas
www.grapevinetexasusa.com
At 9:30 p.m., find your spot and stake a claim near Lake Grapevine Be prepared to be
astonished by the fireworks spectacular, which can be viewed from any lakeside
location as well as several other spots throughout Grapevine.
7/4/2010
Red, White & Lewisville, Fireworks Festival
Lewisville, Texas
www.visitlewisville.com
The city's annual Red White & Lewisville fireworks show, will be held July 4 around
Vista Ridge Mall. The spectacular fireworks show will start shortly after dark at
approximately 9:30 p.m.
7/4/2010
Red, White & Boom 2010
McKinney, Texas
www.mckinneytexas.org
Location: Historic Downtown to Craig Ranch. The event kicks-off the afternoon
activities in Historic Downtown McKinney with a Hometown parade at 1:00pm.
7/4/2010
All-American Fourth Fireworks Show
Plano, Texas
www.planoparks.org
Plano's All-American Fourth Fireworks event is one of the best light shows ever, so
bring your family, friends, lawn chairs and blankets to enjoy it.

Just for Texans!!!!

2010-06-27T07:59:00.000-07:00

First-time homebuyers, check out TxHomePrograms.org to find out which special programs you may be eligible for.

Existing homeowners, go to KeepMyTexasHome.org if you’re in danger of falling behind on your mortgage payments.

Active first quarter for Texas

2010-06-04T07:59:00.000-07:00

The latest Texas Quarterly Housing Report shows statewide increases in both sales volume and price, fueled by a rare March boost. Texas sales volume for existing single-family homes was 42,682 for the first quarter of this year, up 4% from the first quarter of last year. The median home price in Texas jumped from $137,200 in first quarter 2009 to $141,500 in 2010, a 3.13% increase.

The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University. "First quarter 2010 figures were up compared to 2009, despite sales being down in January and February," says Jim Gaines, Ph.D., an economist with the center. Gaines notes that the positive year-over-year gain was due solely to significant March sales being strong enough to bring up the whole quarter. "With March's increased figures we are cautiously optimistic that we'll continue to see positive results in the second quarter," he adds.

According to Gaines, several local MLSs reported a larger percentage of sales coming from foreclosed properties. But he added that Texas has maintained a near-balanced market of 6.8 months of inventory, statistically unchanged from 2009. In addition, the market is showing strength by maintaining property values, indicating the market is absorbing the foreclosed properties and not experiencing an excess of supply.
"We are seeing gradual improvement in the Texas housing market and managing our foreclosure rates well compared to national rates," Gaines says. "Other states, such as California and Florida, are seeing significant foreclosure increases due to high unemployment rates in combination with exotic mortgage-financing options such as option ARMs. Texas is not experiencing the same levels of pressure in these areas."

Bill Jones, chairman of the Texas Association of REALTORS®, sees a correlation. "For more than a decade, our state's home-equity lending laws have provided Texas homeowners with some of the strongest consumer protections in the nation," Jones says. "And that's one reason we've been able to avoid drastic foreclosure increases compared to other states."
The Texas Association of REALTORS® played a pivotal role in getting these consumer protections passed in 1997 when the Texas Legislature was considering home-equity-lending legislation. Texas REALTORS® lobbied for and won several consumer lending protections for homeowners. The most important of these protections is that homeowners can only borrow a maximum of 80% of their appraised home value.
Chairman Jones continued, "Many of the states facing the highest foreclosure rates and largest drops in real estate values are the same states that allow homeowners to borrow 100% or more of their home value. Over time, Texas has maintained relatively low mortgage foreclosure and default rates as a result of these consumer lending protections."
While the March uptick is positive, the next two quarters will determine the real strength of the market for 2010, Gaines maintains. He thinks the second quarter should continue to show positive improvement due to increased demand and government incentives, notably the federal homebuyer tax credit, which expired April 30. The third quarter, typically the best quarter in the year, "will show us how well the market can sustain itself."
Concluded Jones: "In Texas, we've been more fortunate than other areas of the country. Sound public policies have contributed to our quality of life and relative low cost of living. And, as the latest numbers show, we've enjoyed improvement over the past year in our housing market, which is a key driver of the Texas economy. In the past, the summer has been a busy time in the real estate market. This year, we expect that will be the case once again as we see continued market growth throughout 2010."

I’ve heard of a Trojan horse, but a Trojan house?

2010-04-26T10:03:00.000-07:00

Imagine if you will, Hector and his wife Andromache purchase a new home from a builder. They have paid for inspections, appraisals, possibly surveys, an option fee, closing costs, repairs, etc.
Fast forward 10 years … the couple has been paying their mortgage, homeowners insurance, HOA fees, property taxes, etc. Finally, they decide to sell their home. As they prepare to place house on the market, they are mortified to find out that they will owe the original developer 1% of the sales price.
How could this be? Well-buried in the fine print of the neighborhood covenant, the builder has been lying in wait … one last fee stab that even Homer could not see coming.
Although property transfer fees (i.e. taxes) are not levied by the state of Texas, there is a disturbing trend as builders and developers across the state have been signing up for a service that would attach private transfer fees to homes. The idea was the brainchild of a company originally started in Texas called Freehold Capital Partners. Freehold has an almost iconoclastic view that seeks to place land developers in the same class as copyright and patent holders. Namely, as a Freehold brochure states, they should be entitled to royalties since their creations “will be enjoyed for generations to come… .”
What makes matters worse is that the transfer fee is inscribed on the neighborhood covenant, which developers file with the county clerk’s office prior to the completion of construction in a subdivision. So, even if a title search unearths the fee, the lengthy nature of neighborhood covenants would almost ensure that the property owners would not read every covenant and restriction.
This fee is not just a one time occurrence; the encumbrance would last for 99 years and would assess 1% each time the property changed hands. Freehold Capital states that allowing developers to sell transfer fee rights to investors in secondary markets would allow the developer to add more amenities to the neighborhood or lower the costs of the home or possibly both. Whether this true is debatable, since at this time there have been no studies to confirm or deny these claims.
Texas law already restricts private transfer fees. The Legislature did carve out a small exception for the fee, though, if it benefited certain groups, like charities, property owner associations, or governmental entities. Freehold has used this exception and is interpreting the statute to mean that a fee is legal if a portion collected goes to charity.
Parts of the federal government are taking a stance on the issue. The general counsel for the Department of Housing and Urban Development has issued an opinion that private transfer fees clearly violate HUD’s regulations, which prohibit legal restrictions on conveyance. This proclamation bars any private transfer fees to be attached to any mortgage insured by the Federal Housing Administration.
The Texas Association of REALTORS® has consistently fought all real estate transfer taxes in Texas, as they raise the price of homeownership. Such is the case with this latest tactic, since the seller of a home with a private transfer fee would likely raise the price to “pay” for that cost. Letting that Trojan horse through the gates would definitely be an unwelcome surprise that harms many Texas homebuyers.

10 Steps to a Total Yard Makeover

2010-03-29T08:05:00.000-07:00

It is spring in McKinney and the perfect time to put your house on the market! One of the most important things that you can do is get your lawn in order. Here are 10 easy steps to get your lawn in tip-top shape!
1. Organize: Now that you have everything you want to keep, it’s time to assign it a home. Storing summer toys, rakes, and additional patio furniture against the house not only looks bad, but it’s also dangerous and these things can take up lots of space in your garage. If you need extra space, we recommend a Lifetime storage shed. Choose the best fit for your yard: 8x10, 15x8, 11x13, or any size in-between. These polyethylene plastic sheds are easy to care for, and have shelves and pockets great for storing rakes, shovels, and your other important “stuff.”

2. Break out the Lawn Mower: Mow the main lawn area, cutting off about 1/3 or less of the grass blade. Grass blades, like any other plant need their leaves to take in sunshine. Mow while the lawn is dry, and try not to go the same direction every time (which makes the blades grow at a slant.) If you took our advice and purchased a storage shed, try using it to store your mower. In the future, you can pull out right onto the grass to start cutting.

3. Even things out: Rake up fallen leaves, twigs and other debris so nothing stands between you and the lawn. Next, get a garden spade or shovel and level the high and low spots in your lawn by cutting down bumps and filling in holes with topsoil and grass seed. To remove bumps, use a garden spade to cut an “X” shape into the raised area. From there, use a shovel or garden-hoe (if it’s small enough, your hands will do) to peel the back the sod and dig out enough soil to let the area lay flat once again. Lay the sod back in place. While you’re at it, sprinkle grass seed mixed with soil into any bald spots.

4. Break out the Lawn Mower: Mow the main lawn area, cutting off about 1/3 or less of the grass blade. Grass blades, like any other plant need their leaves to take in sunshine. Mow while the lawn is dry, and try not to go the same direction every time (which makes the blades grow at a slant.) If you took our advice and purchased a storage shed, try using it to store your mower. In the future, you can pull out right onto the grass to start cutting.

5. Edging: This is a simple but important step that gives your lawn a clean, manicured look. Use a string trimmer to cut tall grass along the edges of your lawn, and grass shears around trees. Use a broom or hose to brush clippings into piles, you can either throw them out or use them for nutritious mulch somewhere else in your yard. Eliminate weeds- Like party crashers; weeds are uninvited guests that rob your plants of nutrients and sunshine. You can pull out weeds with your hands or use a shovel to dig them out. Taking loads of weeds to the compost pile can be laborious. Use the Yard Cart from Lifetime to save time and effort. Various chemicals will kill weeds without harming your other plants. You may also think about laying down a weed barrier mat in real problem areas, keeping weeds from even breaking through the soil.

6. Lighten up: Now, go pour yourself a tall glass of lemonade, and take a few minutes to relax. Once you’ve taken a load off, do the same for your trees and shrubs. First, find out the best ways to prune each of your trees. Each type of tree reacts differently to pruning; there is much information to be found online. First, with black spray paint, mark the places you should cut. Then use long pruning shears or a saw to cut the branches down and up, forming a point in the direction you’d like it to start growing again. Finally, spray all the clipped edges with the black paint to keep away wood-eating bugs. Haul off your clippings to the dump, or rent a mulching machine and turn it into nourishment.

7. Check your Watering: One of the primary causes of brown spots is improper watering. If you have a sprinkler system, check suspicious areas for a blocked sprinkler head. It’s often as simple as identifying a shrub or tree trunk that’s blocking flow to a certain area. The best times to water are in the early morning and late evening when water does not evaporate as quickly in the sun. Also beware of over-watering. Watering too much can leach nutrients and cause fungus or runoff.

8. Get Flower Power: Nothing lends beauty quite like the color and versatility of flowers. If your yard already has a flower bed, revitalize it by pulling out weeds and replanting your favorite flowers. If you’re starting from scratch, decide where you’d like flowers in your yard, and start digging (call a locator service to be sure you’re not digging into cables or pipes.) Dig down about 1-2 feet, and as wide and long as you’d like the area to be.

9. Remove any chunks of sod or unwanted plants: Mix in compost or a good fertilizer, and rake the area smooth. Finally, pick out what plants you’d like to have. A good rule of thumb is to choose a bush, some medium height flowers, and ground cover, so that your plants vary in height and are more visually interesting.

10. Make a maintenance plan: Now that you’ve got your lawn right where you want it, it’s time to draft a feasible plan to keep it that way. For most of us, yard work is not a welcome chore. But by breaking down the upkeep into small steps, and setting a simple schedule, you can enjoy a beautiful lawn year round. One great system is to assign each family member one chore, and get together every Saturday to work. (I.e- mom-weed, dad-mow and prune, son-rake, daughter-edge.) Be sure to keep the seasons in mind. So the chore of raking becomes snow shoveling in the winter, and clearing out sticks and rocks before mowing in the summer, etc.

Texas still most affordable state for homeownership-Great time to buy a house in McKinney!

2010-03-04T07:04:00.000-08:00

Texas continues to beat the rest of the U.S. in housing affordability, according to first-quarter statistics from the Real Estate Center at Texas A&M. The Center uses a Texas Housing Affordability Index (HAI) to compare the ability of a Texas median-income family to purchase a median-priced existing home in their area vs. consumers in other states. Where higher numbers are better, Texas had a ratio of 1.95 in first quarter 2009 compared with 1.55 nationwide. “Texas continues to maintain its place as the most affordable high-growth state in the country,” says Jim Gaines, Ph.D., research economist.

Source: Real Estate Center at Texas A&M

Calling all dog lovers to McKinney, Texas this Valentine's Day!

2010-02-02T10:03:00.000-08:00

8th Annual Krewe of Barkus

Dress your four-legged friend in celebrity style and head to Historic Downtown McKinney for an afternoon of Mardi Gras fun! It’s going to be hearts and hounds this Valentine’s Day at the Art Institute of McKinney’s annual Krewe of Barkus Mardi Gras Dog Parade. This year we will be celebrating Barkus Romance and paying tribute to both real and fictional Valentines from TV, Movies and in the News. All area hounds and their handlers are encouraged to come dressed in their “Valentine’s Best”.

Costume prizes will be awarded in the following categories: Best Movie Valentine – Best Television Valentine, Best Political Valentine, Best Fairy Tale Valentine and Best Valentine in the News. Patterned after the legendary Mystic Krewe of Barkus in New Orleans, the festival will feature a parade, costume contest, dog vendor expo and shopping galore!

Humans and their dog escorts are invited to participate in the parade; however participants must be pre-registered and pre-paid. Children may also enter decorated wagons and bicycles as floats. Participants should meet at Mitchell Park located at the corner of Louisiana & Church in Historic Downtown McKinney at 12:30pm. Following the parade at 2 p.m. there will be a costume contest in Mitchell Park. Couple these festivities with an enjoyable shopping environment and plenty of parking which leads us to expecting a very successful event.

Festival Hours
Sunday, February 14: 12:30 p.m. - 4 p.m.
Festival Location
Historic Downtown McKinney @ Dr. Glen Mitchell Park (located at the corner of Louisiana St. & Church St., just one block west of the Downtown Square Proper) - 300 W. Louisiana St.

The secret’s out

2010-01-20T11:21:00.000-08:00

It’s one of the worst-kept secrets out there: Texas is a great place to live. If you need more proof of this, check out the Allied Van Lines Magnet States Report, which named Texas the top destination state in the U.S. for the fifth straight year.
What this means is that Texas had a higher net gain in relocations than any other state. Allied Van Lines defines that as the total number of inbound moves minus the number of outbound moves recorded by their company.

What makes Texas such a desirable place to call home? Those who live here enjoy a low cost of living, reasonable housing costs, mild winters (though summers can certainly test a person’s heat tolerance), vibrant cities and towns, abundant natural beauty, no state income tax, a business-friendly environment, a diverse population, and, as Real Estate Center at Texas A&M Chief Economist Mark Dotzour is fond of saying, the best Tex-Mex food on the planet. Certainly, our state has many factors that appeal to a growing number of people.

Just how popular is Texas? The Census Bureau reports that the state grew by nearly 500,000 residents between July 2008 and July 2009. That’s almost as many people as the entire population of Wyoming. Many demographers project the Texas population growth to continue for the next several decades. That certainly bodes well for the prospects of continued economic growth and real estate appreciation.

Market versus appraised value

2010-01-06T10:16:00.000-08:00

The appraised value of a property is a professional estimate of a property’s market value. It’s based on the recent sales of similar properties, square footage, location, construction quality, and more. An appraisal varies in cost depending on the price and size of the home. Most lenders require appraisals as part of the loan application process.

But don’t confuse the appraisal with market value. The appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. And it should give you a pretty good idea what your home will sell for. Ultimately, though, your home’s market value is the price a buyer is willing to pay for it. Having your home professionally appraised before putting it on the market will help you and your Texas REALTOR® determine a fair asking price. There are other methods of determining the value of your home, including a comparative market analysis (CMA). A CMA compiles information and sales prices from homes similar to yours from your neighborhood that have sold recently. Many Realtors perform CMAs for clients and potential buyers.

Whether you rely on a CMA, an appraisal, or both, you will be able to price your home according to objective measures rather than a gut feeling or a number plucked from the air.
Texas Association of Realtors®

Visit McKinney's Heard Musuem during the Holidays!

2009-12-02T10:24:00.000-08:00

The Holiday Trail of Lights is December 18th & 19th from 6:30-9:30 pm.

See thousands of twinkling holiday lights along the
Dinosaurs Alive! nature trail and enjoy festive activities with the whole family! Just one more reason that McKinny is Unique by Nature!!!

Tax credit is going to be extended!!!!

2009-11-11T10:03:00.000-08:00

It looks like Congress is going to extend the homebuyer tax credit. That will give first-time homebuyers a few more months to benefit from this great incentive. The plan on the table will even provide a credit to many existing homeowners who purchase a home.

The bill passed by the Senate and on the way to the House allows first-timers to continue to receive up to an $8,000 credit, while current homeowners who have lived in their residence for five of the last eight years are eligible for a $6,500 tax credit when buying a home. The house must cost no more than $800,000, and there are income limitations above which the tax credit phases out, but those income limits have been raised as well. If the proposed bill passes, buyers must have a signed contract by April 30 and close the transaction by June 30.

This is certainly good news for people who are considering purchasing a home soon. Who wouldn’t want a hefty tax credit? But this is not the only financial help available for prospective homebuyers. There are dozens of programs that provide downpayment assistance or favorable interest rates. Some are offered to veterans, others are for teachers, police officers, and fire fighters. Many simply require a borrower to meet certain financial criteria. Some of these programs can be used jointly, though not all.

If so many programs exist, how come you don’t hear more about them? Many are not widely publicized. Also, programs come and go, and some are offered only in certain counties or cities, making it difficult to keep up with what’s available at any given moment.
One way to make sure you don’t miss out on assistance is to work with a knowledgeable Texas REALTOR®. In fact, many Texas REALTORS® now have the Texas Affordable Housing Specialist certification. These agents have taken classes to learn more about finding affordable-housing programs for their clients and helping those buyers be able to afford staying in their homes. You can search for a certified Texas Affordable Housing Specialist in your area.
Make sure you explore all options for assistance before you buy a home. Nothing is worse than finding out you could have qualified for a lower interest rate after it’s too late to do so.

Where things stand with the homebuyer credit

2009-10-29T07:07:00.000-07:00

Confused about whether lawmakers will extend the $8,000 first-time homebuyer credit and what it would look like?

That's understandable, since the situation is still very fluid.

Here's where things stand.

Support for the credit: There is still bipartisan support in Congress for extending the credit past Nov. 30 and making it available to more homebuyers.

Some of the issues still in play: Just how far past Nov. 30, the size of credit and how many more buyers would qualify.

It's still not clear where President Obama stands on the issue. Last week, Housing Secretary Shaun Donovan said the administration wanted to review more data to better assess the cost of the credit before weighing in.

What's on the table now: There appears to be movement toward a compromise deal that falls between the most and least generous proposals that have been put forth so far.

"There is bipartisan compromise to extend the credit through spring and expand it to existing homeowners who are stepping up to a different home," financial policy analyst Jaret Seiberg wrote in a research note for Concept Capital's Research Group.

The latest idea under discussion is a credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years. (CNN: Senate compromise may be in the works.)

To qualify for the full credit, however, homebuyers must have adjusted gross income of less than $125,000 ($225,000 for married couples filing jointly).

In addition, the credit would only apply to homes sold for $800,000 or less. Contracts to buy a home must be signed by April 30, 2010, and the deals must close by June 30 in order for a buyer to qualify for the credit.

Rationale for extending the credit: Supporters of the credit say it has helped to boost existing home sales in recent months. Extending the credit would help further support sales, stabilize housing prices and generate jobs in the face of an expected rise in foreclosures next year, which is expected to put downward pressure on prices.

If the credit is allowed to expire, they say, the housing market and the broader economy will grow moribund again.

"The most fundamental argument for the credit is that nothing works in the economy if housing is falling -- it hurts household wealth and credit becomes tight," said Mark Zandi, chief economist at Moody's Economy.com. "[The credit] is a good insurance policy. It's vital to stem the housing price declines."

What critics say: Though extending the credit has bipartisan support, it is not without its critics.
Critics, while acknowledging that the credit has helped to generate additional home sales, say it has been poorly targeted and therefore not cost-effective.

They point to estimates that only 10% to 20% of the nearly 2 million homebuyers who will have gotten the credit by Nov. 30 bought solely because of the tax break.

In other words, a large majority of homebuyers who benefited from the credit would have bought their homes without it.

By one economist's estimate, the government may have spent $43,000 for each sale that occurred strictly because of the credit.

In a position paper published this week, the liberal Center on Budget and Policy Priorities said making the credit available to existing homeowners would not help stabilize housing prices or reduce inventory.

"When [they] purchase a new home, they simultaneously put their current home up for sale. As a result, there is no net effect on supply or demand in the housing market."

Timing on a vote: An amendment to extend and expand the credit could be attached to a bill that would extend unemployment benefits and which could pass the Senate as early as this week.

However, there's a chance the housing credit will be dealt with separately. It could be attached to another piece of legislation or put in a standalone bill with other proposals to extend tax breaks.

The facts about Texas real estate

2009-10-21T07:30:00.000-07:00

Texas home sales prices

1. Median sales price (half of all homes sold are priced higher and half are priced lower) in July 2009: $153,700, up 0.5% from July 2008

2. Median sales price year to date for 2009: $146,000, unchanged compared to 2008
Average sales price in July 2009: $185,200, down 2.8% from July 2008

3. Average sales price year to date for 2009: $183,200, down 3.3% from 2008Source: Real Estate Center at Texas A&M University

Texas home sales

1. Total sales in 2008: 232,101, down 16% from 2007

2. Total sales in July 2009: 22,445, down from 23,636 sales in July 2008

3. Months of inventory (how long it would take at the current rate to sell all homes on the market) in June 2009: 7.4 months

Foreclosures

1. Texas was 25th on the list of foreclosure rates for January - July 2009, with 1 of every 781 homes with a foreclosure filing

2. In Nevada, 1 in every 56 homes had a foreclosure filing – more than six times the national average; Florida had 1 in every 154; California was 1 in every 123

3. More than 57% of the nation’s foreclosure activity in July 2009 occurred in California, Florida, Arizona and Nevada

4. Texas foreclosure filings in July 2009 were up 16% compared to July 2008, while the U.S. Foreclosure filings were up 32% over the same period

Market versus appraised value

2009-10-14T09:56:00.000-07:00

The appraised value of a property is a professional estimate of a property’s market value. It’s based on the recent sales of similar properties, square footage, location, construction quality, and more. An appraisal varies in cost depending on the price and size of the home. Most lenders require appraisals as part of the loan application process.

But don’t confuse the appraisal with market value. The appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. And it should give you a pretty good idea what your home will sell for. Ultimately, though, your home’s market value is the price a buyer is willing to pay for it. Having your home professionally appraised before putting it on the market will help you and your Texas REALTOR® determine a fair asking price. There are other methods of determining the value of your home, including a comparative market analysis (CMA). A CMA compiles information and sales prices from homes similar to yours from your neighborhood that have sold recently. Many Realtors perform CMAs for clients and potential buyers.

Whether you rely on a CMA, an appraisal, or both, you will be able to price your home according to objective measures rather than a gut feeling or a number plucked from the air.

Texas Association of Realtors®

Time is ticking on $8,000 credit

2009-09-29T10:14:00.000-07:00

I hope homebuyers understand the deadline for the $8,000 federal tax credit. Getting it wrong could cost someone a lot. Well, $8,000, actually.

This credit, available to most first-time homebuyers, expires Nov. 30, 2009. Some people may think this means they merely have to have a signed contract on a property prior to December 1. Not so. The sale must actually close before December 1.

Since this credit is for first-timers, many of the folks who stand to benefit may not have a good feel for just how long it takes to get from an agreed-upon contract between buyer and seller and the successful culmination of the sale. What do you think? A week? A month? Try 45 days.
You may be able to get it done faster. More likely, it will take a little longer. But 45 days is the average I recently heard reported by a VP at the National Association of REALTORS®.

If you stick with the 45-day example, that means you’d want to have a contract on a home by October 16. Even so, you would be cutting it awfully close. One delay could blow the whole $8,000 for you. Consider this as well: There may be a bottleneck of transactions trying to beat that same deadline. A large volume of transactions will make it difficult to keep them all on track.
You may have heard of efforts to extend the deadline for the credit. There have also been proposals to broaden the pool of buyers who qualify beyond first-timers. And some have called for increasing the credit from $8,000 to $15,000.

So you could just wait and see. If you do, you take the same risk as a buyer who is counting on interest rates to drop. Maybe it happens, maybe not. Whatever you decide, at least now you know what’s at stake and when the current offer runs out.

It is Texas State Fair Time Again!!

2009-09-24T10:25:00.000-07:00

Sept.25-Oct.18

www.bigtex.com

State Fair of Texas FAQ's:

Where is the State Fair of Texas? The State Fair takes pleace in Fair Park. It is a 277 acre park just 2 miles east of downtown Dallas.

What time does the State Fair open each day? Exhibit buildings open at 10 am each day.

How much is admission? General admission is $25. Most of the shows and attractions are free once you are inside. Seniors (60 & over) and children ages 3 up to 48 inches tall enter at the reduced price of $11. Adimission tickets may be purchased online at bigtex.com. If you are near a kroger store, just step up and buy a discounted general admission ticket in advance. Kroger is also the only outlet for the DART/Fair combo ticket. For just $16, enjoy a day of fun and round trip transportation on DART.

What about parking? Parking is $10 on official State Fair lots. Valet parking will be offered again this year for $25.

For more information on the State Fair, visit their website and get ready to enjoy a Texas tradition that will bring you back year after year!!!

Yes, it is finally here….. First Time Home Buyers can use the $8000 Tax Credit up front to purchase a home….. HOWEVER… watch for the trade off- it may

2009-07-13T05:57:00.000-07:00

Using The $8000 Tax Credit Refund Upfront- 90- Day Loan

Terms of the 90-Day Loan:
Ø Proceeds may be used for down-payment, closing cost or prepaids.
Ø Amount of Assistance Available- 5% of the total mortgage (including UFMIP) up to the maximum of $7,000.
Ø Borrowers must complete a pre-purchase homebuyer education course.
Ø Borrower must pay an $250 Administrative Fee upfront.
Ø First 90 days, 0% interest to encourage borrowers to payoff 2nd lien with tax credit refund.
Ø Thereafter, 2 year term at 10% interest rate. NOTE that this possible monthly payment will be required to be counted in the income vs expenses ratios regardless if the buyer thinks that they will be paying off the 2nd lien (for example, $7000 at 10% interest for 24 months would be $323.01 per month). The buyers must qualify for the additional payment in their ratios.
Ø Available only with FHA loans.
Ø Tax credit advance loans may NOT result in any cash back to borrower at closing (i.e. cannot receive back earnest money, option fee, appraisal fee paid up front).
Ø Lender MUST submit a complete loan package to TDHCA (Texas Department of Housing & Community Affairs) a minimum of 20 business days prior to closing. This means that a minimum of total time to close will be approximately 60 days from contract to closing. Reminder that this could also require a lender to lock for 60 days (which is more expensive than a 30 day lock)

Other Options:
Did you know that FHA allows a gift from a blood relative but they also allow a loan from a blood relative? So… if the buyer has a relative that they can borrow the funds to close up front (and pay them back after they get their Tax Credit after closing), then it would be 1) Less cost- no admin fee or participation fee 2) Close faster (no extra 30 days) 3) Less hassle (We just have to document the gift funds or loan properly) and they would not have to take a pre-purchase homebuyer education course.

Also, did you know that FHA allows funds to close from a collateral loan (i.e., against a paid-for vehicle, boat, against 401K, etc). There are certain limitations but it may be a viable option.

Note that it is vital that before any transfer of funds, selling, gifting, etc is done, to please discuss with us the proper documentation and guidelines. It is also important to remember that some of these FHA guidelines may have additional investor and industry restrictions. Verification must be made up front prior to any action taken.

Information On The $8000 Tax Credit:
Feature
Explanation
Amount of Credit
Ten Percent of the cost of home, not to exceed $8000.
Examples:
Ø If a home costs $65,000, the allowable credit would be $6,500.
Ø If a home costs $120,000, then the allowable credit would be $8,000.
Eligible Property
Any single-family residence (including condos) that will be used as a primary residence.
Income Limit
Individuals whose Form 1040 filing status is single (or head of household) are eligible for the tax credit if their income is no more than $75,000. Individuals who file a joint return may have no more than $150,000 in income. Individuals with incomes between $75,001 and 94,999 (single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit. Individuals with incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this tax credit.
First-time Homebuyer Only
Purchaser (and purchaser’s spouse) may not have owned a principal residence in three years previous to purchase.
Recapture
This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
Effective Date
Purchases on or after January 1, 2009 until November 30, 2009

Can’t keep up with your mortgage payments? Here’s help

2009-06-26T06:21:00.000-07:00

If you’re falling behind on your mortgage, you shouldn’t wait to act. But you need not pay anyone to fix things on your behalf, either. Free help is available at-

http://makinghomeaffordable.gov./

Cell phone numbers go public this month!!!!

2009-06-12T09:21:00.000-07:00

REMEMBER: Cell Phone Numbers Go Public this month.

REMINDER...... all cell phone numbers are being released to telemarketing companies and you will start to receive sales calls.....

YOU WILL BE CHARGED FOR THESE CALLS!!!

To prevent this, call the following number from your cell phone: 888-382-1222. It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

HELP OTHERS BY PASSING THIS ON .. It takes about 20 seconds.

If you want to register online, go to:

www.donotcall.gov registry

Important McKinney news...

2009-06-02T09:24:00.000-07:00

For those of us who live in or work in McKinney, I thought you would be interested to know this...

1. There are now signs on all the school zones that you cannot use handheld cell phones in school zones.

2. There is a new post office on Virginia just west of Stonebridge Drive, on the right.

The facts about Texas real estate

2009-06-01T05:30:00.000-07:00

-Median sales price (half of all homes sold are priced higher and half are priced lower) in January 2009: $131,200, down 5% from January 2008

-Median sales price for 2008 (full year): $146,900, unchanged compared to 2007

-Average sales price in January 2009: $166,400, down 8% from January 2008

-Average sales price for 2008 (full year): $191,700, unchanged from 2007

75% in survey think worst is over in housing slump

2009-05-18T14:59:00.000-07:00

Thursday, May 14, 2009 By STEVE BROWN / The Dallas Morning News

Three out of four U.S. homeowners think the worst is over in the housing market.

And half of the homeowners in Southern states – including Texas – say home prices will stabilize in their areas in the next six months, according to a new survey by Zillow.com.

Researchers for the Internet real estate marketing company quizzed almost 1,400 homeowners
around the country in early April about where they thought the housing market was headed.
Almost half of the homeowners who live in Southern states said their home prices have fallen in the last year. That's about the same percentage the company reported at the end of 2008.

Nationwide, 60 percent of homeowners interviewed last month said their houses were worth less.

The National Association of Realtors reported earlier this week that median home sales prices
across the country were down almost 14 percent in the first quarter from a year ago.

Zillow estimates that about 70 percent of homes in the U.S. Southern region have actually lost value in the last 12 months.

Almost a quarter of homeowners in the South said they think their properties will increase in value during the next six months. "While homeowners are now more realistic when looking backward, they are still pretty starry-eyed when looking forward, with three out of four homeowners believing that their own homes' prices will increase or be flat over the next six months," Dr. Stan Humphries, Zillow's vice president of data and analytics, said in the report. "Unfortunately, there are few markets we expect to perform this well."

Thousands of potential sellers are waiting on the sidelines, Zillow said.

More than 30 percent of homeowners said they would be likely to put their houses up for sale at the first sign of a market rebound. That's bad news for prices. "With almost a third of homeowners poised to jump into the market at the first sign of stabilization, this could create a steady stream of new inventory adding to already record-high inventory levels, thus keeping downward pressure on home prices," Humphries said. Harris International conducted the research for Zillow's report April 6-8.

More facts about Foreclosures

2009-05-11T05:12:00.000-07:00

*Texas was 24th on the list of foreclosure rates for 2008

*Nevada (highest foreclosure rate on the list) had a foreclosure rate seven times higher than in Texas

*Florida (2nd on the list) had a foreclosure rate four times higher than in Texas

*More than 40% of all foreclosure filings in the U.S. occurred in California and Florida

*The 2008 foreclosure rate in Texas was up 13.84% compared to 2007 and up 14.96% compared to 2006

*Arizona’s 2008 foreclosure rate was up 203% from 2007 and up 655% from 2006

Collin County Foreclosures Down Over Same Time Last Year

2009-05-04T14:26:00.000-07:00

For the first time in several years, the number of new residential foreclosures is down in Collin County and surrounding areas. The first quarter of 2009 showed an 11.9 decrease in the number of new foreclosures over the same time last year, reports CCAR (Collin County Assocociation of Realtors). In addition, more than one-fourth of all closed sales in the first quarter were foreclosure listings - up 19 percent from the same time last year.

"If we continue to see a decrease in new foreclosure listings while foreclosure sales are brisk, the market will eventually absorb most of those listings. This is an important component to a return to a more normal market," says Steve Haid, CCAR member services director.

About Tucker Hill

2009-04-17T14:42:00.000-07:00

Tucker Hill is a traditional neighborhood development in McKinney, Texas. Located on beautiful rolling land on the north side of U.S. 380, North of Dallas, Tucker Hill will be uniquely beautiful. Providing McKinney new homes of distinctive design and architecture, Tucker Hill is sure to become a favorite of Dallas new home buyers and the North Dallas residents of Plano, Frisco and the McKinney area. Those aspiring for unique new luxury homes in Dallas and a master planned new-urbanism TND style community will be pleasantly surprised by Tucker Hill's attention to detail, walking trails, opens spaces and green preservation programs. Tucker Hill also plans to build a Prosper ISD elementary school and a mixed-use Town Center, amazing clubhouse and resort style swimming pools. You have many options for New Luxury Homes in McKinney and North Dallas, but you simply must see Tucker Hill.

For more information, call 214-544-7550

Homestead exemptions can lower your property taxes

2009-04-10T05:33:00.000-07:00

If you live in Texas and own a home, there are a lot of opportunities to reduce your property tax bill. From deducting mortgage interest to writing off home improvements, you can save a lot of green when it really counts – income tax time. One of those money-saving goldmines is the homestead exemption. No, you don’t have to own a ranch to qualify for one. Any homeowner can apply for a homestead exemption on their principal residence in Texas.

It’s a great way to lower your overall property taxes. Why? An exemption removes part of the value of your property from taxation and lowers your taxes. For example, if your home is valued at $125,000 and you qualify for a $15,000 exemption, you pay taxes on your home as if it was worth $110,000. This exemption only applies to your principal residence, not to any other property you own.

Come visit the beautiful Tucker Hill!!!

2009-04-04T04:56:00.000-07:00

Inspired by the architectural charm of pre-World War II neighborhoods, Tucker Hill is a Traditional Neighborhood Development that values yesteryear's simple pleasures. That includes the days when Spring Markets were joyous opportunities for gardeners to show off their latest wares.

You're invited to attend Tucker Hill's second annual Spring Market, located at Founder's Square in the center of Tucker Hill.

Early Bird Special...
First arrivals receive FREE flowers! (while supplies last)

Food and live music • Gorgeous planter and window box design demonstrated by a Tucker Hill's own Flower Lady • Plants and flowers offered at discounted pricing • Pot painting activities for children and other family fun

Saturday : April 25th : 9am-1pm

7270 West University Drive, McKinney, TX 75071 • www.tuckerhilltx.com • 214-544-7550

Collin County Real Estate Market Improves in February

2009-03-30T10:41:00.000-07:00

February saw an improvement in the real estate market of Collin County and surrounding areas, reports the Collin County Association of Realtors. Closed sales increased by more than 34 percent over January, and the median sales price was 7 percent higher in February ($167,250), than in January ($156,200).

The CCAR Pulse, which delves into the real estate markets of 36 local communities, reports that the average time a house was on the market in February was 111 days, down from 113 days a year ago.

Texas is one of the six U.S. states with home-price appreciation in 2008

2009-03-24T04:49:00.000-07:00

Alaska, Hawaii, North Dakota, South Dakota, and Wyoming also saw price increasesAccording to the Federal Housing Finance Agency (Feb. 24, 2009 reporting), Texas was one of the "isolated pockets of strength" in home prices in 2008. The states with the biggest price declines in 2008 were Arizona, California, Georgia, Florida, Maryland, Michigan, Nevada, and Virginia.

In Texas things are different … thankfully, better

2009-03-17T06:00:00.000-07:00

National media reports about real estate have been gloom-and-doom for many months now, painting a bleak picture for prospective homesellers and buyers alike. Texas REALTOR® Michael Scudder thinks those reports should end in three words … “except in Texas.” Scudder, 2008 president of the New Braunfels/Canyon Lake Board of REALTORS®, says the mortgage and housing crises affecting other parts of the country have left Texas nearly unscathed. “The market (here) is a lot better than many believe.” With low housing prices, low interest rates, high employment levels, and a strong economy, Texas real estate has weathered the national storm fairly well, confirms Brooke Hunt, 2009 chairman of the Texas Association of REALTORS®. “The national news media likes to talk about what’s happening in New York, Washington D.C., Florida, and L.A. – and they’re probably pretty accurate about what’s going on there,” Scudder says. “But they don’t ever talk about Texas unless we have a hurricane or something. We’re doing pretty well.”

The next level of clean

2009-03-15T04:55:00.000-07:00

Aside from the necessary intrusions, the most inconvenient aspect of having your house on the market may well be keeping the house in showing condition.

Making a good impression on buyers is very important. It’s not a huge leap for a potential buyer to equate a cluttered or dirty house with poor maintenance of the overall structure, systems, and appliances. Whether accurate or not, this can or result in a lower offer than the home might otherwise bring … or worse, discourage an offer altogether.

Getting rid of clutter and keeping up with the constant cleaning can be a full-time job, so it helps to get help from everyone in the family. Even if you are neat and organized and keep a clean home, showing condition is another level. Keeping the house at such a level can be overwhelming. It may even benefit you to hire a short-term professional service to help ease your burden.

Some buyers may call for last-minute appointments to see your home. If it has gotten too messy, you may find that you simply can’t spend the time to get it ready for a showing.
If you do find out you’ve only got a few minutes and it looks like a West Texas wind storm just swept through your house, pick up what you can and stow it somewhere—the trunk of your car, the washer and dryer, maybe even the dishwasher. Sure, they may take a peek inside your appliances, especially if they’re conveying with the sale, but there’s also a good chance they won’t and your secret will remain safe.

You may even rent a storage space for your old furniture and other large or off-season items.
Keeping your house in prime condition when it’s on the market is tough, but many hands make light work. Don’t neglect this important part of selling your home—it may make a huge difference and considerably shorten the process.

Texas Association of Realtors®

Closing costs...what are they?

2009-03-10T09:14:00.000-07:00

Everyone knows that in most cases you’ll need at least a small down payment to purchase a home … but that’s not all. You’ll also need to come to the transaction with money for closing costs, which can be sizeable.

Your lender is required by the Real Estate Settlement Procedures Act (RESPA) to provide a good faith estimate of your closing costs. This estimate is an itemized list of fees you’ll pay to get a loan.

Mortgage closing costs cover things like appraisals, attorney fees, title insurance, taxes, and other expenses associated with getting a loan.
A property appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. An appraiser is needed to make this determination.

A survey of the property is usually required to verify that boundary lines for your property, easements, and fences are where they’re supposed to be.

You’re about to buy the home … after that, you’ll own it, right? Well, in some cases, there may be a lien on the property, or some historical dispute to your right of possession. A title search fee is paid to the title company for doing detailed research on the property records for your home. The title company will look at prior deeds, court records, property and name indexes, and many other documents. This is to ensure that there are no liens or problems associated with your ownership of the property.

You’ll need homeowner’s insurance, which covers the costs of rebuilding should an insured event occur. In some cases, your first year's insurance may be paid at closing.

Other fees that you may see include attorney fees, courier fees, pest inspection, plat drawing, underwriting, flood-zone certification, document preparation, and others.

It’s important to check your lender fees and closing costs carefully, and don’t be afraid to ask for advice … the only bad question is one that you don’t ask. This is where your Texas REALTOR® can really help.

Texas Association of Realtors®

Texas still most popular “moving-to” state...

2009-03-08T17:50:00.000-07:00

For the fourth straight year, Texas is the No. 1 state Americans are moving to, according to Allied Van Lines, which annually tracks U.S. migration patterns. Texas had the highest net relocation gain (inbound moves minus outbound moves performed by Allied Van Lines) of 1,903 in 2008. “With the continued job growth we’re seeing in major cities like Dallas and Houston, and very affordable home prices statewide, Texas is still the place to be,” says Brooke Hunt, 2009 chairman of the Texas Association of REALTORS®. Texas’ 9,879 total Allied shipments (inbound and outbound moves) in 2008 ranked second behind California, which had 11,400. But more people moved out of California last year, enabling Texas to retain its status as the No. 1 “moving-to” state in the country. In fact, according to new data from the U.S. Census Bureau, Texas gained more residents between July 2007 and July 2008 than any other state. Texas gained 484,000 residents during the 12-month period, followed by California (379,000), North Carolina (181,000), and Georgia (162,000).

I’m thinking of selling. Do I need an inspection?

2009-03-02T05:42:00.000-08:00

Most people know that inspections are associated with buying a house, but what if you’re already a homeowner? Can an inspection benefit you, too? Well, if you’re thinking of selling, an inspection can give you a better understanding of conditions that may be discovered by the buyer’s inspector – and give you the time needed to make repairs that will put the house in better selling condition

Even if you’re staying put for a while, an inspection can help you learn about preventive measures to help you avoid expensive repairs. And when you are ready to sell your home, you’ll be that much more informed as to the value of your house.

8,000 reasons to buy your first home!!!!

2009-02-25T14:03:00.000-08:00

If you’ve been paying attention to the recent “stimulus” activities in Washington, you already get the reference to 8,000 reasons in the headline above. It’s really only one reason, but it could be worth $8,000 to you. The legislation signed this week by President Obama contains a measure for first-time homebuyers to receive a tax credit up to that amount if they purchase a home.

But wait … there was already a $7,500 tax credit in place, so is another $500 really such a big deal? Yes, but not because of the higher dollar amount. Hey, I’m not one to look askance at 500 bucks, but the real exciting news is that the repayment feature of the tax credit has been removed.

With the previous version of the tax credit, you were obligated to pay it back in equal installments over 15 years. Now you don’t have to repay it at all (unless you sell your house within three years). As before, a first-time homebuyer is defined as someone who hasn’t had an ownership interest in a primary residence in the last three years. Also unchanged is the fact that the credit starts to phase out at an adjusted gross income of $75,000 for individuals and $150,000 for joint filers.

This credit, which totals 10% of the purchase price of the home up to a maximum of $8,000, is available for first-time buyers who purchase a principal residence between Jan. 1, 2009 and Dec. 1, 2009. That principal residence need not be a detached home, as the credit also applies to condos and townhomes.

When does Uncle Sam “show you the money”? The credit will be applied to your federal income tax bill. If you qualify for more tax credit than you owe in taxes, you’ll receive a check for the difference. So, for example, if you meet the criteria for the full $8,000 credit and owe $3,000 in federal taxes, you will pay no taxes and get a $5,000 “refund.”
If you’ve been thinking of buying your first home, this year is a great time to talk with a Texas REALTOR®. Whether you think of this new credit as 8,000 reasons or one really big one, it’s a new, strong incentive to make a move.

By MARTY KRAMER, Consumer columnist

Stimulus package continued...

2009-02-22T06:52:00.000-08:00

Whether or not you agree with the President Obama's new stimulus package, it is always good to understand how it affects the industry you work in. The package addresses real estate in many ways with all of them being positive for homebuyers and sellers. Here are the 4 things that they are doing to "stimulate" our market.

America’s homebuyers and homeowners will soon have:

1. Lower interest rates for home mortgages

2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas

3. A true tax credit incentive to buy a home NOW

4. Foreclosure mitigation and short-sale standards.

How to be smart about buying a home...

2009-02-18T07:41:00.000-08:00

This is a great time to buy a house, but be sure to avoid these common mistakes so that you can take full advantage of this market.

Mistake #1: Not knowing how much they can afford before they make an offer.The easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford.

Mistake #2: Not realizing in advance who the real estate agent represents.Most people think that the agent they are working with is working for them. Unless they are working as your buyer representative, they represent the seller.

Mistake #3: Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes.Check with your accountant before you make your final decision on which mortgage you are going to choose. Your CPA will be able to tell you what the long term effects will be on your income.

Mistake #4: Not discovering hidden defects before they buy a home. One of the most expensive mistakes is also one of the easiest to avoid, by having a professional pre-purchase home inspection.

Mistake #5: Not knowing how much their credit can affect their ability to buy or refinance a home.Before you buy a home, many of the clouds on your credit history can be cleared up or even eliminated. Your mortgage professional can help you review and prepare your credit file in advance.

Temporary credit for home buyers...

2009-02-16T04:47:00.000-08:00

The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit's expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.
Customer would file this on their tax return and receive the tax credit when the refund is processed by IRS.

For more information on this call:

C.J. Winchester

Service First Mortgage

175 Ridge Road, S #600

McKinney, TX 75070

972-562-0096 Office

972-562-0087 Fax

214-298-3156 Cell

Worry Free Protection Plan

2009-02-13T06:10:00.000-08:00

GOOD NEWS!!!! The Government wants you to buy a house!!!

What is the Worry Free Protection Plan? It is a plan which will insure against job loss due to layoffs or company closures during the first two years of the mortgage. Read below for more information.

Service First Mortgage
"WORRY FREE"
Protection Plan

Many Americans today are concerned with job stability and how they are going to make their mortgage payments if they lose their job. Let our
"WORRY FREE MORTGAGE" help you with life’s unexpected events for up to 2 years.
Mortgage Protection Program
Today the number one reason for mortgage default is loss of employment. This is why our involuntary-loss-of-employment coverage is such a tremendous benefit, protecting homeowners from the very thing that can put their households into financial crisis.
Six months of mortgage payments – Qualified homeowners who experience involuntary loss of employment will receive up to $1,800 per month (PITI) for up to six months coverage.
Emergency Fund Program
This service provides homeowners with assistance for certain types of unforeseen financial difficulties. In short, this program is a safety net for homeowners should they experience a short-term financial challenge. We provide both financial and educational assistance that can relieve the stress of home ownership.
Delinquency Protection Services
We provide financial protection to homeowners for life’s unexpected events. And to assist in creating and maintaining financial wellness, our communication approach to education and counseling is unique and effective. As a result of our Delinquency Protection Services, homeowners typically reach out to us even before they miss a payment and certainly before it’s too late.

We take the uncertainty out of home buying.
C.J. Winchester
175 Ridge Road, S # 600
McKinney, TX 75070
972-562-0096 office
214-298-3156 cell
cj@waymark.net
www.cjwinchester.com
Where Service Comes First

Is homeownership right for you?

2009-02-11T04:55:00.000-08:00

Homeownership has many advantages - both financial and personal. But buying a home is an important decision. Look at the benefits and the differences between homeownership and renting to better understand if owning a home is right for you.

- Tax savings. You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax and many states' income tax if you itemize your deductions.

- A more stable monthly housing expense. Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.

- Equity. You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child's education or your retirement.

Downtown McKinney is the place to be...

2009-02-10T13:02:00.000-08:00

I have lived in McKinney for 11 years and have always loved going to downtown McKinney. It gets better every year. The city has just finished widening the sidewalks to give pedestrians and restaurants more space, not to mention great photo opportunities! If you head to the square you will find fabulous apparel stores, bakeries, coffee houses, steak houses, wine bars, hotels, live bands, karaoke, antiques, and so much more! It is a great place to bring visitors or to visit if you haven't been in a while.

Check out their website for more information...

http://www.downtownmckinney.com/frameset.asp?aid=144

How the stimulus package could affect Real Estate...

2009-02-09T05:06:00.000-08:00

Urgent Message from Dave Liniger...

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn around in the real estate market.

Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences. Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official Senate and House web sites to locate the email and phone number of your legislators.This may be one of the most critical moments for the real estate industry in our time.

Top 10 Home staging tips

2009-02-06T06:50:00.000-08:00

It is more important than ever to have your home look its best when you put it on the market. You can hire a home stager to help you, but there are also many things that you can do that are low cost. Below are the Staging Diva's top 10 tips to turn your hosue into a show home...

1. Consider the curb appeal.
Landscaping is nice, but not in everyone's budget. At minimum, lawns should be freshly mowed, leaves raked, or snow shoveled. Consider a hanging or potted plant for the entrance. Sweep the porch, deck and all walk ways and ensure garbage and recycling are tucked neatly away from the front of the house.
Scrub your front door, porch, outside railings and steps. This is cheaper than repainting and makes a world of difference. Once the outside entrance is clean, decide if the paint really needs a touch up.

2. Get rid of clutter!
Pick one closet or area at a time so the task isn't as daunting. Look at every item with a very critical eye and ask yourself why you're keeping it.
Remember that how you live in your home and how you sell your house are two entirely different things. You're going for a "show home" look!
Forget about hanging onto items for a garage sale. Pick your favorite charity and donate it. You paid for these things long ago, why not just give them away to others who REALLY need them?
You'll probably have to edit the same closets a number of times to really whittle them down to the "essentials". If rooms and closets still look cramped, rent a storage locker.

3. Turn excess inventory into cash.
If you have a collection of items for projects you never got around to, return them. This also applies to the two-year supply of light bulbs, canned goods or paper products sitting in your basement. Without a receipt you won't get cash, but you will have a store credit that you can use once you move. Less clutter and less stuff to pack, move and unpack again!

4. Watch where the eye goes.
There are speedy and low cost solutions to many of the little problems that together make a home seem shabbier than it needs to.
Walk along each corridor and into every room and check where your eye is drawn (better yet, ask a critical friend or family member). If the eye is drawn to the chipped white paint on the door frame, take some "white out" and fill it in. If it's those old nail holes in the wall, see if you can hang a picture to cover them.
Glue any peeling wallpaper. If it's really horrible and you can't afford the time or money to fix it properly, hang pictures and strategically place baskets. You won't cover the problem entirely (which would be wrong anyway), but you will draw your audience's attention away from the problem and onto something more visually pleasing to focus on.

5. Find a fix-it person.
Ensure cupboards open and shut and that no taps are dripping. Look in all rooms for things you never got around to fixing and decide which ones might be distracting to potential buyers. No, it's not OK for door handles to fall off, even if you have learned to ignore it!

6. Clean, clean and clean again.
Most mortals can't live in a spotless environment all the time. This can be one of the more stressful aspects of having your home on the market— but it's worth the effort to sell your home for top dollar. You can hire a professional service to come in and deep clean everything; then take 20-30 minutes each day to maintain it.
Don't neglect hallways. They lead potential buyers through your home and should be bright and clutter free. Remember you're trying to maximize the feeling of space in your home!
Appliances should sparkle even if you're not including them with the house. After all, you might throw them in later as a negotiating tool. Counter tops, taps, sinks and bathtubs should be shiny and free of water spots.
If you have a pedestal sink, don't forget the dust that collects on top of the plumbing where it attaches to the wall. If the whole sink is spotless and the taps aren't dripping, it will look new!
Dust shelves and vacuum or "Swiffer" the floors. Naturally, all beds should be made. At a recent open house for a home listed over $500,000 (and over 60 days on the market), they hadn't even bothered with these two simple steps! It made you wonder what bigger things had been neglected.
Remember clean windows let in more light and look newer. Hire a service if you have to— it's worth the investment.
If all this attention to detail seems over the top, remember that a very clean home leaves the impression that the house is well cared for. This helps put buyers at ease— especially a first time buyer who may be worried about the responsibilities of owning a house.

7. Let in some air.
Open some windows for at least 10 minutes. There is nothing worse than walking into a stuffy house or one that smells of smoke and pet odors.

8. Let in some light.
It might be mood lighting to you, but if you're trying to sell your home, keep it bright! Dimly lit rooms tend to look small and dingy— especially during the day.
If you have a particularly dark room, consider investing in a floor lamp that will bounce light off the ceiling.
If your walls are so dark that they're sucking up all the light, consider repainting. You can even buy a small can of a lighter shade of your wall color, mix it with glaze and rub it onto the wall. It will reflect light and give the room a more open feeling. This approach saves much of the preparation and clean up involved in repainting.

9. Don't forget fresh flowers.
You don't need to spend a fortune to have fresh flowers throughout your home. Even a daisy in a bud vase brightens a bathroom counter. Ask your florist which blooms last a week. You can also use potted flowering plants that are in season for a low-cost solution.
Don't use plastic or obviously fake flowers, especially in an expensive home!

10. Carefully consider music.
Soft background music can help create a soothing environment and camouflage neighbor and traffic noise. But make sure the volume is very low. Blaring TVs are definitely a no-no, but you'd be surprised how many people leave them on for showings!

Home sales

2009-02-04T09:10:00.000-08:00

According to the magazine "Texas Realtor", Texas was able to avoid the housing bubble during the 2003-2007 boom that affected so much of the country. But, there was a "bubble" in sales transaction volume, as buyers took advantage of the low interest rates with easy credit and underwriting.

To put it simply, homes sales were down about 15% in 2008. We could see fall another 10% -15% in 2009. But, as we head into the new year, thousands of homes will be sold...and for Texans wanting to buy a home that they want to own long term, this could be the best buying opportunity of the decade!

Why RE/MAX

2009-02-03T09:24:00.000-08:00

Why did we choose RE/MAX when there are so many companies out there??? Some important reasons are...nobody sells more real estate than RE/MAX, “Entrepreneur" magazine ranked RE/MAX "Best of the Best" for real estate services for the seventh time in eight years.

All offices are locally owned, operated, and staffed with professionals who live in the area they work in. This means that we are as committed to the community as the clients we serve are. We have a personal interest in making sure our community thrives.