Register Real Estate Advisors

Don’t do it!  There are many reasons why I recommend seller financing over rent to own in Texas.

If a buyer does not have adequate funds for a down payment and has poor enough credit or income to keep a lender from offering them a loan, I don’t think they should be purchasing a home.  If they do have the income or the down payment, regardless of credit, then seller financing is a great option for them.  I don’t believe a landlord should offer to sell to someone that has poor credit, limited down payment, and unsteady employment.  That sounds like trouble to me – so I would never recommend this to one of my landlords or sellers.

If a tenant needs more time to get adequate financing, then I feel they should  purcahse a home at a later date – that is my opinion.  What if they are never able to get their credit in better shape and now the seller/landlord has agreed to sell their house to this renter?

It doesn’t help that ForSaleByOwner.com is now offering a lease to own advanced search option.  Other states that have different real estate laws, may be more suitable for rent to own tenants than Texas.

All rent to own contracts should be written up by attorneys or atleast reviewed by a real estate attorney.  The contract has to have a lease component and a sale component.  They are legal in all the United States, but I do not recommend doing it.

What if the seller is entering foreclosure?  Would you the tenant buyer know it?  If they got foreclosed on, you’d lose all your equity and get booted out of the house.  There has also been fraud associated with rent to own transcations.

Now for more down side to buyers – what if prices go down and you are locked into purchasing the home for more than it’s worth.  What if interest rates go way up?  If you don’t buy the home, then you lose all your money that was supposed to be going to the down payment.  Some contracts say that if buyers are late on a payment, that payment cannot count towards the down payment.

Realtors don’t have promulgated forms for rent to own options, so you have to pay an attorney to write it up.  Do you know everything you need to put in that contract to protect you and your property?  Neither do I.  That’s why I encourage rent to own buyers to instead use the option of Seller Financing.   Seller Financing can be completed on Realtor promulgated forms and all title company attorneys can write these up easily.  I believe seller financing is a better option for both sellers and buyers/renters.  It’s not just about the forms.  The forms are there because seller financing is more simplistic.  The buyer takes possession right away.  They don’t have to wait to own the property.

If you want to rent to own a home, I recommend you set up seller financing if you are in the state of Texas.  Call me if you want more details.  I can explain better over the phone – 281.288.3500.  Let me know if you want the buyer or seller’s point of view!

Did you know that some of the things in your home could be toxic for your family? Air fresheners, carpeting, and even granite countertops can be toxic!

Those air fresheners smell nice, but some contain formaldehyde and other toxic substances. Don’t breath the air when you spray an air freshener. Also, don’t keep plug in air fresheners down low where animals or children could reach them. If you would prefer not to use air fresheners after hearing this…use the old baking soda box to natually absorb those bad odors. You can also boil some nice herbs in water on the stove to make the house smell nice or light a few scented candles.

When carpet is installed it emits more than just a smell. There are chemicals that can cause headaches and throat irritations and more. If carpet or rugs get wet, they can start growing mold which can cause allergic reactions. Many consumers are now requesting hardwood floors in both new and resale homes.

Granite has been known to emit low levels of radon, which is a colorless and odorless gas. You wouldn’t know it’s being emitted into the air. Most homes have radon anyway because it comes from the soil. You can buy at home testing kits if radon is a concern for your family. High levels have been known to cause lung cancer.

To learn more about things that could be toxic in your home, visit the environmental protection agency online. They can provide additional information.

This article below contains information from an article by Dr.Mark Dotzour in the July 2011 Tierra Grande Magazine.  He is a chief economist with the Real Estate Center at Texas A&M University.

This year we went from extreme drought to a rainy winter and spring.  You never know what the Texas weather will bring and the housing market is very similar.

Many factors influence the underlying reasons for increases and decreases in sales volume that predicts future real estate sales.  The normal flow of the residential real estate market is affected by demand for housing.  Demand in turn is influenced by many “life events” that occur throughout peoples’ lives.  For example, they may:

• graduate from college and get a job;
• get married;
• have children and need a bigger home or a different school district;
• get promoted and move to another city or another neighborhood;
• lose their job and no longer be able to afford the house;
• get divorced and have to sell the house or move into a smaller one;
• buy a second home near their adult children;
• need to move into a smaller, one-story house with less maintenance;
• reach a point at which they can no longer care for themselves and need to move to an assisted-living facility;
• move to the United States from other countries to improve their quality of life; or
• move from other countries and buy homes here to protect their wealth and secure their safety.

The expansive Midwest flooding that made headlines for weeks this spring is a reminder that every now and then nature plays havoc with rivers.  Similarly, certain events and circumstances can cause housing transaction volume to rise significantly.  For example, increases may occur when:

• home prices increase fast enough that the investment motive spurs purchases;
• prices increase even faster and speculators buy homes to flip them;
• prices increase consistently, so people prefer to buy now rather than pay a higher price later;
• mortgage rates drop enough that many people can afford to buy a bigger house or move to a nicer neighborhood without a significant increase in their house payments;
• the government offers tax incentives to homebuyers; or
• houses are affordable to a broad segment of all households and mortgage underwriting standards are lowered to include a broader range of credit risk.

The extreme weather patterns that spawn floods do not last forever.  When they end, the river returns to the normal level within its banks.

At the other end of the weather spectrum is drought, which lowers the river’s water volume.  Transaction volume ebbs, too, when circumstances such as the following occur:

• people are worried about losing their jobs so they postpone buying decisions;
• people are worried that home prices will fall, and they might lose their equity;
• house prices rise so fast that they become unaffordable;
• lenders tighten mortgage underwriting standards, and by doing so remove potential buyers from the market;
• appraisals come in  well below the contract price agreed to by a seller and a buyer;
• cost of homeownership increases (taxes, utilities and insurance);
• lack of liquidity in the market makes it harder to sell homes;
• employers reduce corporate transfers to save money; or
• random scares, such as radon gas or black mold, make media headlines.

Buyers all over the country are still skittish because of all the negative housing headlines.  But there is evidence that Texas’ residential housing market is beginning the gradual, lengthy process of moving back to normal.

And remember, real estate operates in local markets.  What happens in Las Vegas does not really matter to a homebuyer in Abilene.  Each local market has its own story and its own dynamics.  So be familiar with where you are purchasing a home.

Real estate professionals must understand their clients’ psychology—their hopes and fears.  Careful consideration of the factors influencing home sales volume will help buyers and sellers make the best decisions for their circumstances.

1. Social Security Numbers
2. Driver’s License
3. Employment Info for the past two years, Current Pay Stubs
4. 2 Years Tax Returns
5. If renting, landlord info
6. Addresses for past two years
7. 2 Months Bank Statements
8. Current Loan Information
9. Homeowners Insurance Info
10. Purchase Contract for the Property if it has been chosen
11. Bankruptcy Documentation if applicable
12. Divorce Decree if applicable

For more information, contact your RREA lending professional at 281.288.3500.  We want to help you purchase your next property!

I was shopping in Kroger and picked up one of their pamphlets off the meat market counter and thought you might like to have this info, too.  Now that summer is fast approaching, it’s a great time to start grilling!  I love Kroger’s meat market!

1.  REFRIGERATE fresh meat promptly.

- USE a cooler or chill bag to keep meat cold on the way home from the store or outside by the grill, especially on warm
days.

- SET your refrigerator at home to 40° F.

- THAW or marinate beef, pork and poultry in the refrigerator, not on the kitchen
counter.

- KEEP cold food and perishables on ice at picnics and cookouts.

- PLACE leftover cooked foods in a refrigerator or cooler with ice within two hours.

2. CLEAN hands & surfaces often.

- WASH hands with warm water and soap for 20 seconds before and after handling food.

- WASH cutting boards, dishes and utensils with hot soapy water after preparing each food item.

- USE paper towels and soap to clean kitchen surfaces often.  Or clean cloth towels frequently in your washing machine’s hot
cycle to kill bacteria.

3. DON’T cross contaminate.

- SEPARATE fresh meat from other food in your grocery cart, shopping bags, in the refrigerator and by the grill.

- KEEP cutting boards and utensils separate to prevent spreading germs.

- PLACE cooked food on a clean plate – never on a plate that held raw meat.

4.  COOK to a safe temperature.

- USE a food thermometer every time you cook fresh beef, pork and poultry to reach its
proper internal temperature and kill harmful bacteria.

- COOK ground beef and pork to 160° F, and cook ground turkey and chicken to 165°
F.

- CHECK this cooking temperature guide to safely grill other cuts of fresh beef, pork and poultry.

- REMEMBER:  You can never tell if meat is cooked properly by looking at it.

Safe Cooking Temperatures

Internal temperature as measured with a food thermometer.

Ground Meat

Beef, Pork, Veal, Lamb                       160° F

Turkey, Chicken                                  165° F

Fresh Beef, Veal,
Lamb

Medium Rare                                      145° F

Medium                                              160° F

Well Done                                           170° F

Poultry

Chicken, Turkey, whole                       165° F

Poultry parts                                       165° F

Duck & Goose                                     165° F

Stuffing (cooked alone or in bird)       165° F

Fresh Pork

All Pork                                                160° F

Ham

Fresh (raw)                                          160° F

Pre-cooked (to reheat)                       140° F

It’s White Board Monday. This is the 61st edition and it is on what happens if you list your home at too high of a price. Enjoy!

The Woodlands, Texas is a lovely place to live just north of Houston.  This master planned community offers a lifestyle with art, entertainment, and healthy living.  Here you will find wine bars, restaurants, entertainment, and art scattered among the landscape.  It began in the 1970′s and has grown significantly in recent years.  Currently, there is very little commercial property left for businesses to move to The Woodlands.  There are both resale homes and new construction to choose from if you are relocating.  With a variety of home builders to choose from the prices range from $100 Thousand to $2 Million.  Hiking and bike trails run through all the villages and there are many parks.  It is a nature preserve full of greenbelts and wooded forest.  If you like to golf, you will have three courses to choose from.

When visiting The Woodlands make sure you take both a trolly ride and a water taxi.  These tours offer newcomers a great perspective of the area.  The Woodlands Mall and Market Street offer lots of shopping, dining choices, and entertainment.  The Woodlands houses the Cynthia Woods Mitchell Pavilion is one of the most popular outdoor amphitheaters in the world.  At night, Waterway Square is a great tourest attraction.  The large water wall with dancing columns of water and fountains are choreographed to music with colored lights.

The Woodlands has so much to offer.  If you work downtown, you can get to Houston by taking I-45 South or the Hardy Toll Road.  However, there are many employment opportunites in The Woodlands.

Below is a video of The Woodllands.  If you need a Realtor to help guide you through the forest, give us a call at RREA 281.288.3500.  You will be glad you did!

**This week’s show will air at 1:30. Next week we will be back in our regular 1PM time slot.**

Here are links to some of the topics covered on today’s show.

• LaVonda Fletcher is the owner of LaVonda Fletcher Insurance Agency. She was in the studio to talk about mortgage insurance.
• Our in-house lender, Jeff Wagner, with OnQ Financial, called in to talk about the lending environment and the state of the mortgage market.
• Home Path Program – No mortgage insurance, no appraisals for purchasing foreclosures. Find foreclosure listings at http://homepath.com (Fannie Mae homes) or http://homesteps.com (Freddie Mac homes.)

We have an amazing show planned for next week. It’s Memorial Day Weekend and we have some real estate topics for veterans. One of our call-in questions next week will win a beautiful coffee table book called “Warriors Remembered.” This book is written by a West Point graduate and combat veteran, Al Nahas, and covers Vietnam Veteran Memorials around the country.

Here is the video for the segment with LaVonda Fletcher on insurance.

Here is the first segment with Jeff Wagner on mortgages.

Here is the second Jeff Wagner segment.

1.  Tankless Water Heater

2.  Programmable Thermostats

3.  Tech Shield Roof

4.  Window Coverings

5.  New LED Light Bulbs

We are very happy to announce that starting Sunday, May 13th, 2012, RREA’s radio show, “Houston Real Estate Radio,” will air on am700 KSEV, the “Voice of Texas.” The first show will be from 1:30PM to 3PM but the show will air weekly from 1 to 3 on Sundays. The show will cover real estate news, information, areas of the Houston Metro area, and interesting people in our industry. We hope you tune in!

You can find details about the show at RREA.com/RADIO.