Register Real Estate Advisors

As a buyer, you and your real estate agent should walk through the home your are purchasing before going to the closing to sign the documents.  This is your last opportunity as a buyer to be sure the home is in the same condition it was in when you first viewed it.  This is a visual inspection of the property you are about to purchase.  If you are buying a new construction home, your builder should do the walk through with you so that they can repair anything that is not correct.  This is your final inspection before  the purchase.  When you are purchasing new construction, this is also a great time to learn about your new home.  The builder can explain the details of the home that you may not be familiar with.  Knowing these details should help you know what to do to maintain the home and keep it up.  The builder should also go over warranty coverage and procedures for repairs as they come up in the future.  The builder will provide you with a book or packet of information about your new home.  If it is a resale home, the best you can hope for is that the previous owners left instruction booklets in the home.

When you purchase a resale home, the owner usually provides you a one year warranty on the home through a home warranty company.  New homes usually come with a one year warranty as well, and a longer warranty on the structure of the house.  However, usually no warranty will cover items that have not been maintained properly by the homeowner.

During your walk-through be sure to look at all the walls and floors for possible damage.  Also check out the fixtures, counter tops, and air conditioning system.  Your Realtor or new construction builder will usually ask you, the buyer, to sign a form stating the home is in acceptable condition for move in.

Do you have your new year’s plan in place?  Do you have plans to relocate, upsize, or downsize? The first quarter of next year in real estate in the Houston, Tx area looks good.  Spring, The Woodlands, and Montgomery county areas, is especially in a good position for growth. The construction of Exxon’s new headquarters, new corporation relocating to the area.  I believe you’re going to see a sufficient demand for house’s in these areas.  This will be a good time to list your home for sale. As you know as demand increases, so do the prices.  This may be the time to get a good price for your home, and still be able to purchase home for reasonable amount.

While banks are usually the ones who go after delinquent home
owners, more homeowners’ associations (HOAs) around the country are deciding to
take on that power too in fighting against home owners who have stopped paying
their HOA fees.

For communities governed
by a homeowners’ association, which one in five communities are, more HOAs are
discovering they have a power they have ever rarely acted upon until
now —the right to foreclose on residents who stop paying
fees.

For example, a condo complex in Fort
Pierce, Fla., for 55-and-older residents was once a desirable area with condos
once fetching nearly $80,000 four years ago but now sell for as little as
$3,000. The HOA levied $6,000 assessments on its residents for much-needed
repairs in the complex and when some residents didn’t pay, the HOA foreclosed on
them, even if they didn’t owe the bank anything.

“The treacherous part is that homeowners’ associations are acting
like a local government without restraints, and they have this extraordinary
power,” Marjorie Murray, a lawyer and founder of the Center for California
Homeowner Association Law, told the Associated Press.

If HOAs need to do major repairs, the board can levy a “special
assessment” on top of its regular dues. When a home owner fails to pay, all of
the home owners then have to step up to pick the costs.

“What many people didn’t realize when they bought their homes
was that the fine print gave the association the right to foreclose —even over a few hundred dollars in unpaid dues,” according to an
article by the Associated Press. “All the association board has to do is alert
its attorney to place a lien on the property to start the process. The home can
then be auctioned by the board until the bank eventually takes ownership. Home
owners typically have no right to a hearing.”

About 65 percent of HOAs have reported delinquency rates higher than
5 percent, according to a September survey by the Community Association
Institute.

Source: “As More Are Unable to Pay Homeowners’
Fees, Associations Pit Neighbor Against Neighbor,” Associated Press (July 7, 2011)

1.  Current Mortgage and Account Numbers

2.  Lease/Rental Agreements

3.  Divorce Decree

4.  Monthly Debt Information

5.  Bank Account Information (2 Most Recent Statements)

6.  Social Security Number

7.  Two Years of Residence History

8.  Current Pay Stubs

9.  Prior Year W-2 Forms

10.  Two Years Employment History/ Two Years of  Tax Returns if Self-Employed

If you need to apply for a mortgage you can apply online at:

http://rrea.com/mortgage/qualify

 Preparation Checklist

Exterior List:

• Check to make sure roof and gutters are clear of leaves and debris, and trim trees away from house and roof line.
• Trim landscaping back away from the house and make sure there are at least 3 to 4 inches between the ground cover and brick ledge.
• Make sure exterior crawl spaces are clear of vegetation and debris.
• Check siding, soffits and trim boards for decay.
• Check all stations of your sprinkler system for proper function.
• Make sure all exterior door latches and dead bolts are working properly.

 Interior List:

• Check switches and bulbs on all light fixtures and make sure they are working.
• Check and adjust the downward pressure on the garage door opener.
• Replace all dirty a/c and furnace filters.
• Provide access to electrical panel, furnace, water heater and attic area at time of inspection.
• Be sure to have at least one (1) smoke detector per floor and in bedrooms.
• Check for any leaky faucets or under-counter pipes; also check sink and tub stoppers.
• Check to make sure all windows are operating smoothly and replace any damaged or missing window screens.
• Remove window security screws and provide keys to all security windows.

 These are just a few things that will help the seller at the time of the inspection and have been provided by A Total Inspection Real Estate Inspection Services. 

Many people buy homes and never think about their exit plan.  When you buy, make sure you have one.  Unforseen circumstances could cause you to have to sell your home unexpectantly.  So when you purchase a home, think about how quickly you would be able to resale the property if needed.  Are there things about the house that you don’t mind, but would make it hard to resale?   Is it in an area where you could rent the house if you needed to?  Usually, if you have to sell quickly, you don’t make much, if any, profit.  Generally speaking, real estate is a long term investment.  During a great sellers market you might be able to flip a home quickly for profit, but probably not in today’s market.

The following information is reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS – copyright 2005 – all rights reserved.

Condominiums and townhouses offer an affordable option to single-family homes in most areas, but consider these facts before you buy.

1.  Storage.  Some condos have storage lockers, but usually there are no attics or basements to store belongings.

2.  Outdoor space.  Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit.  However, if you hate yard work, this may be the perfect option for you.

3.  Amenities.  Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home. 

4.  Maintenance.  Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in owrkers when you’re not home.

5.  Security.  Many condos have keyed entries and or even door attendants.  Plus, you’ll be closer to other people in case of an emergency.

6.  Reserve funds and association fees.  Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.

7.  Resale.  The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar.  Single-family homes usually are more individual.

8.  Freedom.  Although you have a vote, the rules of the condo association can affect your ability to use your property.  For example, some condos prohibit home-based businesses.  Others prohibit pets.  Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

9.  Proximity.  You’re much closer to your neighbors, in a condo or town home.  If possible, try to meet your closest prospective neighbors before making a decision.

By David S. Jones, senior editor, Real Estate Center

Release No. 19-0410

COLLEGE STATION, Tex. (Real Estate Center) — 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,” said Dr. Ali Anari, a Center research economist and one of the study’s authors.  “When Texans are able to spend more on nonhousing 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,” said Center Chief Economist Dr. Mark Dotzour. “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.

 his allows Texas employers to be able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy,”  said 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 percent of Texas labor force last year and 64 percent of Texas GDP the previous year.

 “Houston and Dallas consumers spent the smallest shares of their incomes on shelter in 2008 (18.6 percent),” said Anari.

 The two Texas metros in the study had virtually no increase in their shelter expenditure shares from 1987 to 2008. Houston’s share rose 1 percent while Dallas’ share increased 2.2 percent.

 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 percent).

“It is not surprising that the two Texas regions are experiencing normal home price fluctuations,” said Anari. “The risk of a home price decline in Texas is low.

 “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,” said Anari, who conducted the study along with Center Chief Economist Dr. Mark Dotzour.

 “Consumers allocate their income among various goods and services,” said Anari. “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,” said 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,” said 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 said, “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 highest? California. San Diego-Carlsbad-San Marcos led the nation with 30.8 percent of income going to shelter.

 Spending by U.S. consumers accounts for about 70 percent of the nation’s gross domestic product (GDP). Consumer expenditures are critical to the nation’s economy, and since 1980, the U.S. Census Bureau has conducted the Survey of Consumer Expenditures for the U.S. Bureau of Labor Statistics.

 The survey collects data and information on the buying habits of American consumers. These data are available for the United States, four geographic regions of the country (Northeast, Midwest, South and West), and for major metropolitan areas.

 Major Metropolitan Areas by Shelter Expenditure Share of Total Income, 2007–08

                                                                                                      Percent of Income Spent for Shelter      Median Home

                                                                                                                                  1987–2008                              Price Change

                                                                                                                        2008     1987     Change                 2007–09

Region                                                                                                                                                                                                 

Houston-Galveston-Brazoria, Tex.*                                                  18.6        17.6          1.0                                0.4

Dallas-Fort Worth, Tex. **                                                                     18.6        16.4          2.2                             –3.8

Cleveland-Elyria-Mentor, Ohio                                                            20.1        14.3          5.8                           –17.8

Minneapolis-St. Paul, Minn.-Bloomington, Wis.                           20.1        18.8          1.3                           –19.5

Seattle-Tacoma-Bellevue, Wash.                                                        21.9        17.5          4.4                           –20.9

Chicago-Naperville-Joliet, Ill.                                                                22.5        17.1          5.4                           –28.0

Philadelphia, Pa.-Camden, N.J.-Wilmington, Del.                        22.7        16.8          5.9                             –8.1

Boston-Cambridge, Mass.-Quincy, N.H.                                          23.3        22.7          0.6                           –15.8

Atlanta-Sandy Springs-Marietta, Ga.                                                 23.4        19.2          4.2                           –28.3

Washington, D.C.-Arlington-Alexandria, Va.                                  24.3        20.7          3.6                           –28.3

Baltimore-Towson, Md                                                                          .24.6        17.8          6.8                           –12.2

Miami-Fort Lauderdale-Miami Beach, Fla.                                      25.7        19.0          6.7                           –42.2

New York, N.Y.-Northern New Jersey, N.J.-Long Island, N.Y. 26.1        20.1          6.0                          –18.6

Los Angeles-Long Beach-Santa Ana, Calif.                                       26.3        22.1          4.2                           –43.8

San Francisco-Oakland-Fremont, Calif.                                             27.3        24.6          2.7                           –38.7

San Diego-Carlsbad-San Marcos, Calif.                                             30.8        21.7          9.1                           –38.9       

*Collin, Dallas, Delta, Denton, Ellis, Henderson, Hood, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise counties

** Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, San Jacinto and Waller counties

Sources: Bureau of Labor Statistics, National Association of Realtors and Real Estate Center at Texas A&M University

When you are purchasing a home, there are hidden defects that you will want to look for.  Your seller will give you a disclosure statement to read over that will indicate any past problems that they are aware of in the house.  However, if it’s a foreclosure, the bank has never lived in the house and does not have to supply you with a disclosure statement.  I always encourage my buyers to get an inspection because the inspector is licensed and knows what to look for in the property.  You also want to be on the lookout for water leaks, foundation issues, drainage problems, termites, roof issues, potential wiring problems, and plumbing issues.  Stains on ceilings and near baseboards can be indicative of water leaks.  Large cracks in the homes foundation and horizontal cracks in walls and ceilings can indicate shifting in the foundation.  Look for standing water, either around the foundation of the home or in the yard.  You will want to have an exterminator check for termites.  Your inspector will be looking for broken or missing copings and buckled shingles.  They will also check to make sure the property does not have an antiquated fuse box and outlets without a place to plug in the grounding prong.  Make sure you check water pressure in showers, faucets and outside water pressure.  Also listen for banging in pipes.  These are all things you want to be watching out for when you are purchasing a home.  In addition to a home inspector checking out the property, you might want to have a certified HVAC dealer check out the heating and air conditioning systems in the home.