Register Real Estate Advisors

As a member of USAA, my husband and I receive their USAA Mailer, the Member’s Guide to Financial Security. In our latest issue, there was a wonderful article about the different metro areas in the United States and the best places to move right now based on the housing market. Although it’s a great article, I am just summing up the information below from the article written by Kerry Hannon.

There were three areas that were indicated as the median home price projected to increase in 2010 and they were Tacoma, Washington, Pittsburg, Pennsylvania, and Memphis, Tennessee. The areas where the median home price is projected to decrease in 2010 were Las Vegas, Phoenix, Amarillo, Denver, Chicago, Detroit, and Orlando. Job loss is a major factor. Though unemployment were seems to be leveling off, many borrowers who have been out of work are likely to fall into foreclosure.

In a topsy-turvy housing market, it’s more important than ever to know the facts before buying or selling. From California to the Carolinas, homebuyers are snapping up some of the best home prices in decades. Sellers, on the other hand, grapple to get what they believe is a decent offer. The housing market may be on the mend, but things aren’t likely to change overnight. Sellers are not lowing their prices, they are just taking what people will give them for their homes.

Hope for the future?

There are glimmers that the housing market is beginning to lift out of one of the worst slumps since the Great Depression. In 2009 low home prices pushed sales higher in many parts of the country. But the encouraging news should be met with caution. Why?

The boost was fueled primarily by:

• Foreclosure sells.
• A tax credit for first-time home buyers.
• The Federal Reserve’s program of buying most new mortgages to keep rates low for mortgage seekers.

Some experts argue the market already hit bottom, but others do not agree. The national median home price is forecast to decline 11.5% by the third quarter of 2010, to $157,707 from $178,200, according to the Fiserv Case-Shiller Home Price Index. Then, it’s expected to rise 4.8% by the third quarter of 2011.

A major factor is job losses. Though unemployment seems to be leveling off, many borrowers who have been out of work for some time are likely to fall into foreclosure or short sales. Ultimately, that will dump more houses on the market, dragging down prices. Detroit currently has the lowest housing prices in the country due to the recession in the auto industry. And homw prices in osme of the nation’s biggest metro areas – New York City, Los Angeles, and Chicago – are expected to slide further. Prices are expected to start up again in 2011 in Los Angeles and Chicago.
But there are locations, such as Charlesston, S.C., and parts of Washington state, where home prices are improving. And in other places the market is still depressed.

Sage Advice for Buyers

• Prepare your finances – In general, your monthly mortgage payment, including principal, interest, real estate taxes, and homeowners insurance, should not exceed 28% of your gross monthly income. And don’t overlook the variable cost of homeowners insurance from state to state.
• Consider your horizon – Prices aren’t expected to improve significantly in most areas for several years, so think twice before you buying.
• Be pragmatic – Avoid buying something too unusual, but you don’t have to buy a cookie cutter house, either.
• Be hard-nosed, but reasonable – Don’t expect a seller to take off $40,000 from the sale price, but do offer around 10% below what comparable houses are selling for in the neighborhood. Offer less, but be willing to pay the selling price if the seller will pay closing costs. And be willing to walk. If there are other homes that fit your criteria, don’t get stuck fighting for one.

Sage Advice for Sellers

• Set a fair price – If you’re anxious to sell, list your home at 10% below comparable homes in your neighborhood. To get attention, set your selling price at the low end of a price scale.
• Use online help selectively – Check Zillow.com, HomeGain.com, RealEstateABC.com, Trulia.com, and other online sites that offer home value estimates. But be aware that data may be old and spotty on details.
• Be open-minded – Many buyers come in with lowball offers, but don’t be fooled. They’re probably testing the waters. Keep the dialogue open and hopefully you will be able to strike a deal.
• Give and you will receive – Buyers want to think they got a steal, so make them feel like they did. Pick up the tab for some of the closing costs, dangle a cash bonus of $1,000 to a buyer’s agent, toss in new appliances, spring for repairs, or pay for a home warranty.
• Use an agent – It pays to list your property with a knowledgeable agent. Get a market analysis. Make sure the agent is going to market your property properly both online and using traditional marketing.

1. Put fresh or silk flowers in principal rooms for a touch of color.

2. Add a new shower curtain, fresh towels, and new guest soaps to every bath.

3. Set out potpourri or fresh baked goods for a homey smell.

4. Set the table with pretty dishes and candles.

5. Buy a fresh doormat with a clever saying.

6. Take one or two major pieces of furniture out of every room to create a sense of spaciousness.

7. Put away kitchen appliances and personal bathroom items to give the illusion of more counter space.

8. Lay a fire in the fireplace. Or put a basket of flowers there if it’s not in use.

9. Depersonalize the rooms by putting away family photos, mementos, and distinctive artwork.

10. Turn on the sprinklers for 30 minutes to make the lawn sparkle.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

DEER PARK (Bloomberg BusinessWeek) – Deer Park has been named “best affordable suburb” in Texas by Bloomberg BusinessWeek.
To choose the top town for each state, the magazine looked at living expenses, income, crime rate, school data, commute, local economy, racial diversity and green space in 863 communities.
Located near Houston, Deer Park has a population of 31,049, a median family income of $89,348, median home price of $131,709, an unemployment rate of 8.3 percent and a violent crime index of 35.

If your income and savings are making home buying a challenge, consider these options…

1. Investigate local, state, and national down payment assistance programs. These programs give loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program ( http://www.getdownpayment.com ) and the American Dream Down Payment Fund from the U.S. Dept. of Housing and Urban Development ( http://www.hud.gov ).
2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do a mortgage.
3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even a 3rd party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and all maintenance costs, but all investors’ names are usually on the mortgage. There are companies that can help you find such an investor if your family can’t participate.
4. Get help from your family. Perhaps a family member will loan you money for the down payments and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history.
5. See if you can qualify for a short-term 2nd mortgage to give you the money to make a higher down payment. This may be possible if you have a good income and little other debt.

Reprinted from Realtor Magazine Online by permission of the National Association of Realtors, Copyright 2005, All rights reserved.

This Saturday, March 13th, I will be holding open 20223 Cypresswood Glen in the Cypresswood Lake Subdivision in Spring, TX from 12 – 2pm. The gate code to the subdivision is 1057. You can get directions, see photos of the home, watch a video, and get more information by visiting http://rrea.com/blog/134900-20223-cypresswood-glen-spring-tx-77373/ . I hope you’ll stop in on Saturday!

EBBY STILL PARTYING AT 99!

DALLAS (Dallas Morning News) – The buzz around town is not about the Mavericks or the Cowboys this week, but about local real estate legend Ebby Halliday and her 99th birthday.
Although her birthday is today, the celebration began Friday and will continue until tomorrow.
The founder of Ebby Halliday Realtors, which began in 1945 and is now a $4 billion business, wanted a low-key birthday, but Dallas did not think that was suitable.
The festivities began Friday night at the Dallas Mavericks game, where her favorite player, Dirk Nowitzki, presented her with an autographed team ball, and have continued on party buses, in church, at the Winspear Opera House and with lunch with T. Boone Pickens.
“If I live to be a hundred, and the celebration is any faster or more furious, I won’t be able to stand it,” Halliday said.

NEW YORK (New York Times) – April 5th will mark the beginning of a new program by the Obama administration intended to end the foreclosure crisis — one that will pay homeowners to sell their homes.
The program will allow owners to sell their homes for less than they owe and give them cash to expedite the process.
Hundreds of thousands of delinquent borrowers will be encouraged to sell their houses through short sales, in which properties are sold for less than the balance of the mortgage.
The new program will give the servicing bank $1,000, and another $1,000 may go toward a second loan, if one exists. The distressed homeowners will also receive $1,500 in relocation assistance.
Borrowers could suffer less damage to their credit ratings under the new program, and they will receive the lender’s assurance that they will not later be sued for an unpaid mortgage balance.

If you are a renter, you might be wondering how much mortgage you can afford.  Please use the Rent vs. Buy calculator on my website to figure out what you can afford.  I thought the following information was interesting, so I am sharing it with you.  It is reprinted with permission from the National Association of REALTORS and reprinted from REALTOR Magazine Online.

The following calculation assumes a 28% income tax bracket.  If your bracket is higher, your savings will be, too. 

Rent: _____________

Multiplier:  X 1.32

Mortgage Payment:  __________________

Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up wtih the same amount of income. 

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.  Right now, if you are a first time home buyer you can take advantage of the $8,000 tax credit available.  You must hurry, because it ends in April!  Call me today so we can get started.

The neighborhood you choose can have a big impact on your lifestyle – safety, available amenities, and convenience all play their part.

1.  Make a list of the activities – movies, health club, church – you engage in regularly and stores you visit frequently.  See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.

2.  Check out the school district.  The Department of Education in your town can probably provide information on test scores, class size, percentage of students, who attend college, and special enrichment programs.  If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering.  ven if you don’t have children, a house in a good school district will be easier to sell in the future.

3.  Find out if the neighborhood is safe.  Ask the police department for neighborhood crime statistics.  Consider not only the number of crimes but also the type-burglaries, armed robberies-and the trend of increasing or  decreasing crime.  Also, is crime centered in only one part of the neighborhood, such as near a retail area?

4.  Determine if the neighborhood is economically stable.  Check with your local city economic development office to see if income and property values in teh neighborhood are stable or rising.  What is the percentage of homes to apartments?  Apartments don’t necessarily diminish value, buyt they do mean a more transient population.  Do you see vacant businesses or homes that have been for sale for months?

5.  See if you’ll make money.  Ask a local REALOR or call the local REALTOR association to get information about price appreciation trends in the neighborhood.  Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be.  A REALOTR or the goveernment planning agency also may be able to tell you about planned developments or other changes in the neighborhood – like a new school or highway – wthat might affect value.

6.  See for yourself.  Once you’ve narrowed your focus on tow or three neighborhoods, go there, and walk around.  Are homes tify and well maintained?  Are streets quiet?  Pick a warm day if you can and chat with people working or playing outside.  Are they friendly?  Are their children to play with your family?

Reprinted from REALTOR Magazine Online by permission of the National association of REALTORS.  Copyright 2005.  All rights reserved.  http://www.REALTOR,org/realtormag.

New Lease on Apartment Life

COLLEGE STATION (Real Estate Center) — Many new Texas laws were effective with the New Year. Among them were new guidelines aimed at keeping Texas landlords and tenants at arm’s length.

Judon Fambrough, the Real Estate Center’s attorney and author of the recently updated Landlords and Tenants Guide, provided some examples of how rules for the traditional antagonists have changed. Here are some examples.

Parents sign as guarantors for their daughter’s apartment. The parents guarantee rent payments for their daughter as well as her two roommates. When the daughter renews the lease for the second year, do the parents continue as guarantors even though the daughter has different roommates?

“The answer is no,” says Fambrough. “Texas law provides for parents to be bound as guarantors for the renewal, but the renewal must involve the same parties.”

What if the parents agree to be bound as guarantors for subsequent renewals by their daughter? Assuming the daughter has the same roommates, do the parents continue as guarantors even though there is a rent increase?

“Again, the answer is ‘no.’ New Texas law provides that there can be no change in the guarantors’ financial obligation,” Fambrough explained. “A rent increase changed the parents’ obligation and, therefore, they are no longer bound as guarantors.”

What if the daughter is hearing impaired? If this fact is disclosed to the landlord prior to signing the lease, must the landlord install smoke detectors for her before she moves in?

“No,” says Fambrough. “Landlords must install smoke detectors that are capable of alerting the hearing impaired in the bedrooms they use — if requested by the tenant or as required by law. The daughter must request the installation. Otherwise, the landlord has no obligation to install smoke detectors for the hearing impaired.”

Fambrough’s 2010 update includes the latest on many landlord-tenant subjects. When may landlords interrupt a tenant’s utility service? What is required to terminate a lease when family violence is involved? What rights do members of the military have? What conditions must be met before a landlord can legally charge a late fee?

To learn about these and other landlord-tenant laws, take the Landlord-Tenant Law Quiz on the Center’s website at http://recenter.tamu.edu/quiz/quiz201002.html#. For a free copy of the Center’s Landlords and Tenants Guide, go to http://recenter.tamu.edu/pdf/866.pdf.