Register Real Estate Advisors

Story Published in the November 2009 edition of Houston Real Estate Executive

Shareholders of Pulte Homes and Centex overwhelmingly approved the merger of the two companies, making the combined company the nation’s largest home builder and vaulting it into the top 10 of Houston-area builders. 

“Combining these two industry leaders creates tremendous opportunities for our customers, employees, and shareholders,” says Jim Rorison, President of Pulte Homes’ Houston operations.  “Our shared commitment to product quality and customer service, combined with the complementary brands, land positions, and building models make this a powerful merger that can accelerate our return to profitability.”

Rorison also adds that there is tremendous value in fully leveraging its brands across all buyer segments to further drive better results in traffic, sales and profitability.  “With the addition of the Centex brand, we have a great opportunity to position Centex (and Fox and Jacobs regionally in TExas) as our high-value brands, targeting the entry-level buyer seeking affordability and value.  Pulte will be positioned as the brand for move-up buyers looking for high quality.”

The combined company now builds in 26 communities in Greater Houston.

For details and information about a community near you, visit www.pultehoustoninventory.com .

TEXAS (Real Estate Center, Realtor.org) – A total of 19,347 existing single-family homes were sold in Texas last month, a 15 percent increase from October 2008, according to MLS data compiled by the Real Estate Center at Texas A&M University.

The median price rose 1 percent to $143,300 during the same period, and the state finished the month with a 6.9-month inventory of existing homes.

Here is how select Texas cities fared in October (data current as of Nov. 24, 2009):

Additional home sales data for these and other major Texas cities are available on the Center’s website.

At the national level, the National Association of Realtors reported this week that single-family home sales rose 9.7 percent to a seasonally adjusted annual rate of 5.33 million in October from a pace of 4.86 million in September. That was 21.4 percent above the October 2008 pace. The median price was $173,100 in October, down 6.8 percent from a year ago.

I found an article by Kerry Hannon in the Winter 2009 publication by USAA Magazine and really liked what it offered.  I hope it will be helpful to you.  Not everyone can be a member of USAA, but I am, so I am sharing with you the information I took from the article they published.

Sometimes it only takes a small stumble to wind up in deep debt.  Ready to get out?  A USAA Member and a financial expert point you in the right direction.

10.  Budget and Save – Pay yourself in a savings account like you would pay a monthly bill collector.  You will quickly learn not to miss that 10% of your income each month.  Systematically adding money to a savings account is a must. 

9.  Cut Spending – Trim those grocery bills!  Look at downsizing options or getting a roommate or move in with you.

8.  Track Daily Expenses – Write down everything you spend money on.  Most of the time it’s not the big items that get you into trouble.  Little expenses add up.

7.  Set Goals – You can make a plan to exit from that revolving debt.  Quit using the credit cards and pay cash for items.  Make a plan for paying down the debt.  Some good short term goals are paying down your debt by $1,000 or paying off one credit card at a time. 

6.  Take a Second Job – Getting some extra income can pay off debt quicker.  Cutting expenses and increasing income works to reduce debt.

5.  Pay Off High Interest Loans Systematically – Don’t pay off the smallest debts first just to see progress.  Work on the larger ones.

4.  Pay Bills Automatically Online – Paying bills online will help you budget and get things paid on time.  Paying bills on time increases credit scores.  

3.  Find Out Your Credit Score – A good credit score can translate to loans when you need them and thousands of dollars in interest savings.  Scores range from the 300s to 850, with most people falling in the 600-700s.  Strive for a score of at least 720 to 740 to get better rates on credit cards, auto loans and mortgages.

2.  Fix Credit Report Errors – Regularly check your credit report so you know if there are any errors you need to correct.  Go to the official site, AnnualCreditReport.com, to request a FREE Credit Report from each of the three reporting agencies – Experian, Equifax, and TransUnion – every 12 months.  Your credit score doesn’t come with the report.  You’ll have to purchase your score from each bureau. 

1.  Do Periodic Checkups – Assessing your situation regularly should be part of your financial regimen.  Getting out of debt is possible, but it takes patience.

NEW YORK (Forbes.com) – Texas’ four major metros are in the top ten fastest-recovering cities nationwide, according to Forbes magazine.

Forbes ranked San Antonio the second fastest recovering city in the country, Austin the third, Dallas–Fort Worth–Arlington the sixth and Houston–Sugar Land–Baytown the eighth.

The magazine attributed their relatively quick recovery to San Antonio’s and Austin’s high number of municipal jobs, Dallas’ thriving technology industry and Houston’s energy sector, as well as the state housing market’s ability to remain stable while other states’ markets crashed.

“Texas didn’t have as big of a boom,” said Dr. Jim Gaines, research economist at the Real Estate Center at Texas A&M University. “So we’re not having anywhere near the kind of bust.”

El Paso and McAllen-Edinburg-Mission were also placed within the 100 fastest-growing MSAs, ranking 43rd and 48th, respectively.

Forbes ranked the country’s 100 largest MSAs according to each area’s September unemployment rate and foreclosures, gross metropolitan product, home prices and sales rates.

• The $6500.00 Move Up Homebuyers Tax Credit is in NOW in effect (as of November 6, 2009.)
  • If you owned and resided in your current home for a consecutive five out of the past eight years, and your adjusted household income doesn’t exceed $125,000 if you file taxes singly, $225,000 if you are married filing jointly — you can claim the credit as soon as you close on a qualifying house.
  • There is no “move up” requirement in the new credit. In fact, homeowners who plan to downsize into a smaller dwelling may prove to be significant users of the credit, along with people who are relocating because of employment changes.

• Some other key features of the $6,500 credit you ought to know about:
  • Whatever you intend to purchase, the house cannot cost more than $800,000.
  • The replacement house must become your main home. There is no requirement in the legislation that you sell your current home. You could rent it out, turn it into a second home, or list it for sale later in 2010 when prices might be higher. If you plan to retain it, however, make sure you move into the new house on the day you close so that there is no question it was your principal residence at that time.
  • The revised rules require taxpayers to submit copies of their settlement statements (HUD-1 forms), along with their requests for credits using IRS Form 5405. Congress’ new rules also prohibit individuals under the age of 18 or who are counted as dependents on another taxpayer’s filings from claiming the credit.
  • Homebuyers in 2009 — those who go to closing after Nov. 6 but no later than Dec. 31 — can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible purchasers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns.
  • If you aren’t sure if you can make the deadlines established for the new credit — a binding contract by next April 30 and a settlement by June 30.

If you are in the market for a home, contact Terry Traylor at 713.705.1244 for a great mortgage rate and excellent service.  Tell him Shannon sent you!  I highly recommend Terry at Network Funding for my buying clients mortgage needs.  Then you and I can go shopping for the home of your dreams!

7Published in The Houston Chronicle, Sunday, November 22, 2009

It’s official, President Obama has signed a bill that extends the tax credit for first-time home buyers (FTHBs) into the first half of 2010.  In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure opens up opportunities for others who are not buying a home for the first time.

The program gives those who own a residence some additional reasons to move to a new home.  This incentive is a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a Primary Residence for 5 consecutive years during the last 8 years.

Deadlines for all contracts need to be in effect no later than April 30, 2010 and close no later than June 20, 2010. 

Single tax filers who earn up to $125,000 are eligible for the total credit amount.  Those who earn up to $145,000 can receive a partial credit.  Joint filers who earn up to $225,000 are eligible for the total credit amount.  Those who earn up to $245,000 can receive a partial credit.  Maximum purchase price:  $800,000.

What is a tax credit?  A tax credit is a direct reduction in tax liability owed to the IRS.

What is the tax credit for  first-time home buyers?  An eligible buyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home.  If the amount of the home purchased is $75,000, the  maximum amount the credit can be is $7,500.

Who is eligible for  the tax credit?  Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.  This applies both to single taxpayers and married couples.  If either spouse has owned a primary residence in the last 36 months, neither would qualify.  In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.  As mentioned, the tax credit has been expanded so existing homeowners who have owned and occupied a primary residence for a period of 5 consecutive years during the last 8 years are eligible for a tax credit of up to $6,500. 

How do I claim the credit?  For those taking advantages of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405.

Other Restrictions?

If any of these apply, a credit would not be due.

• You buy your home from a spouse, parent, grandparent, child, or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You area nonresident alien.
• Your home financing comes from tax-exempt mortgage revenue bonds.
• You owned a principal residence at any time during the 3 years prior to the date of purchase of your new home.

Are you thinking about new floors this holiday season?  Changing your floors can add value to your home and there are so many options available. 

Carpet gets worn and dirty over the years and usually needs stretching after just a couple of years, so replacing carpet is always a great incentive for buyers when choosing a home to purchase.  Tile is durable because there is no maintenance for tile unless you are concerned about grout stains.  If it does it get chipped, it can usually be repaired.  Hardwood floors are nice because they are seemless and easy to clean.  I do not recommend them for wet areas, though, as water will cause them to buckle. 

If you’re looking for something new, check out bamboo, cork, or corboo which is a mixture of cork and bamboo.   

By changing the color, pattern, or material of your flooring, you can drastically change and update any room in your home.

By:  Vicki Fullerton, 2009 Chair of the Houston Association of Realtors, previously printed in the Houston Chronicle

While working with a Realtor to buy or sell a home, you may have seen “GRI”, “CRB”, or “CRE” after a Realtor’s name and wondered what those letters meant.  Like most industries that constantly are changing, real estate demands continuing education throughout a Realtor’s career.

A successful agent must keep up to date with current issues, evolving technology, changing laws and regulations, and other important aspects of the business.  After all, it’s that comprehensive knowledge that gives Realtors the ability to help consumers buy and sell houses successfully. 

The National Association of Realtor (NAR) offers advanced education designation and certification programs through its institutes, societies and councils for Realtors.  Though there are other designations, these programs carry an official endorsement from NAR.

Just as an MBA carries with it a certain distinction in the business world, so do the letters after a Realtor’s name in the world of real estate.  These designations and certification programs are tailored to every real estate specialty you’ve heard of, and probably some you haven’t, so if there’s an area of specialty you need, you almost certainly can find a Realtor who has it.

For example, your Realtor might have extra training as a buyer’s representative, land consultant, commercial investment expert, property manager, appraiser or brokerage manager.  Many Realtors earn several designations to keep as current as possible in multiple areas of the real estate industry.  You may want to work with someone who knows the ins and outs of a particular area.  After all, buying property is pretty complicated.  New technology, laws, procedures, and the increasing sophistication of buyers and sellers require real estate practitioners to perform at top professional levels, and consumers are demanding it.

GRI designation

One of the most comprehensive designations for Realtors is the GRI  (Graduate, Realtor Institute).  It’s a curriculum that requires Realtors to complete an advanced course series that includes 90 hours of classroom instruction.  There’s an emphases on technology, business development, sales and marketing, and critical legal and regulatory issues such as fair housing, brokerage relationships and environmental concerns.  State and local Realtor associations offer these classes, giving Realtors ample opportunity to stay on top of the real estate profession.

The GRI program gives Realtors an understanding of the industry’s finer points and that can only benefit folks who rely on that expertise to find the house of their dreams or sell their longtime residence.  And there’s more.

The following are NAR-endorsed designation and certification programs.  Look for these next time you need a Realtor with a specific area of expertise:

ABR:   Accredited Buyer Representative

ABRM:   Accredited Buyer Representative Manager

ALC:   Accredited Land Consultant

CCIM:  Certified Commercial Investment Member

CIPS:  Certified International Property Specialist

CPM:   Certified Property Manager

CRB:  Certified Real Estate Brokerage Manager

CRS:  Certified Residential Specialist

CRE:   Counselor of Real Estate

GAA:   General Accredited Appraiser

GRI:  Gradate, Realtor Institute

Green:  Sustainable Property Designation

PMN:  Performance Management Network

RCE:  Realtor Association Certified Executive

RAA:  Residential Accredited Appraiser

SRES:  Seniors Real Estate Specialist

SIOR:  Society of Industrial and Office Realtors

Certification Programs:

AHWD:  At Home with Diversity Certification

e-Pro:  Certification program for online professionalism

RSPS:   Resort and Second-home Property Specialist

REPA:  Real Estate Professional Assistant

TNC:  Transnational Referral Certification

Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

HOUSTON (Marcus & Millichap) – Although oil prices have rebounded to a level that should sustain operations in most energy companies, the national recession is weighing on office operations in Houston, according to a fourth-quarter Office Research Report by Marcus & Millichap.

The abundance of Fortune 500 headquarters in the area, in particular, is resulting in significant layoffs in the professional and business services segment.

Other findings from the report:

• The rate of job losses is expected to fall dramatically in the next few months. Nonetheless, payrolls are forecast to be thinned by 76,000 positions this year, a 2.9 percent decline. Office-using employment is projected to decrease 4 percent, or by 22,300 jobs.
• Builders are expected to complete 4.2 million sf of office space in 2009.
• As the recession weighs on office properties in the Houston metro, vacancy is projected to rise to 15.7 percent by year end, 300 basis points above the rate at the close of last year.
• Asking rents are forecasted to fall 1.4 percent this year to $23.93 per sf while effective rents retreat 3.7 percent to $19.91 per sf. In 2010, office rents are expected to recede further because of sluggish economic growth.