Attention Dallas County: This is how it's done.

Ask me about mortgage fraud. Go ahead. I dare you. I can tell you stories that will curl you hair.

Anyway, kudos to Collin County for sending a clear message of STAY AWAY for the past few years to perpetrators of mortgage fraud. Dallas County, you have a lot to learn, and I know you have the knowledge to do it. After all, the current Dallas County DA happens to be a former mortgage broker with title company experience to boot.

Over two years ago, investigative reporter Becky Oliver from FOX4 news asked Dallas County DA, Craig Watkins, what his office plans to do about mortgage fraud. His answer? “We don’t have the prosecutors that can go forth and prosecute these cases because we don’t have the resources.”

When asked what message his office is sending by not prosecuting mortgage fraud cases. Watkins replied, “…the criminals are running the show.”

On the other hand, here is what Collin County is doing:

12:00 AM CDT on Sunday, August 30, 2009
By ED HOUSEWRIGHT / The Dallas Morning News (Excerpts)

Chris Milner, a former federal prosecutor, heads the Collin County district attorney's effort to crack down on mortgage fraud.

"I could keep just about the entire office busy with mortgage fraud," he said. District Attorney John Roach began investigating mortgage fraud in 2005 and has four prosecutors assigned to it and other white-collar crimes. His office has held training seminars on mortgage fraud for law enforcement agencies throughout the region.

"I think we'll be prosecuting mortgage fraud forever," Milner said.

Read the full text of today's Dallas Morning News article here.

Another Study Shows Dallas Prices Stabilizing

It's so refreshing to have multiple recent studies showing that the Dallas housing market is steadying that I just can't help sharing them as they're published.

The good news: Home sellers in several cities (with Dallas being at the top of the list) are pricing aggressively, and forgo the need for price reductions. I can attest to this. Appropriately priced homes, particularly in East and North Dallas, that are well maintained and updated are frequently under contract within a day or two of listing at prices very near and sometimes even above list price. Multiple offer situations are not uncommon these days.

The bad news: The study shows that 25% of homes on the market have experienced at least one price cut. These sellers continue to ignore market conditions and overprice their homes.

Now, more than ever, it's crucial to rely on your REALTOR's advice when pricing your home! Today's sellers need to price aggressively to avoid reductions. Buyers are looking for value and, when they find a good deal, they jump on it.

Cities showing signs of recovery with significant declines in percentage of listing with price reduction from June 2009 to August 2009 include:
-Dallas, TX – 42% fewer price reductions
-Las Vegas, NV – 33% fewer price reductions
-Louisville, KY – 33% fewer price reductions
-Los Angeles, CA – 19% fewer price reductions
-Washington D.C. – 17% fewer price reductions

For more information, visit www.trulia.com.

Things Aren't As Bad As They Were... And That's Good!

Data through June 2009, released today by Standard & Poor's for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009.

"For the second month in a row, we're seeing some positive signs," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years.... As seen in both seasonally adjusted and unadjusted data, there are hints of an upward turn from a bottom."

As of the 2nd quarter of 2009, average home prices across the United States are at similar levels to what they were in early 2003. From the peak in the second quarter of 2006, average home prices are down 30.2%.

More upbeat news is seen in the monthly data across other markets; Dallas and Denver have reported four consecutive months of positive returns.

Ed. Note: Based on the table below, it appears that Dallas home prices performed the "best" of the major metropolitan areas studied. Things still aren't great, but Dallas properties are definitely holding their values better than other areas.

The table below summarizes the results for June 2009. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 22 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com.

Level Change (%) Change (%) Change (%)
U.S. National Index 132.64 2.9% -7.4% -14.9%
June 2009 June/May May/April 1-Year
Metropolitan Level Change (%) Change (%) Change (%)
Area
Atlanta 107.52 1.5% 0.5% -13.7%
Boston 152.71 2.6% 1.6% -5.9%
Charlotte 120.66 0.7% 0.9% -9.6%
Chicago 124.99 1.1% 1.1% -16.7%
Cleveland 106.38 4.2% 4.1% -3.0%
Dallas 119.68 2.7% 1.9% -2.2%
Denver 126.92 2.5% 1.3% -3.6%
Detroit 69.49 -0.8% 0.2% -25.0%
Las Vegas 107.31 -2.0% -2.6% -32.4%
Los Angeles 160.90 1.1% -0.1% -17.8%
Miami 145.37 0.5% -0.8% -23.4%
Minneapolis 113.48 3.1% 1.1% -19.8%
New York 171.49 0.4% 0.2% -11.9%
Phoenix 104.73 1.1% -0.9% -31.6%
Portland 148.47 1.0% 0.1% -15.2%
San Diego 147.31 1.6% 0.4% -16.0%
San Francisco 124.70 3.8% 1.4% -22.0%
Seattle 149.53 0.4% -0.3% -16.1%
Tampa 140.90 0.4% 0.0% -19.5%
Washington 174.32 2.8% 1.3% -11.8%
Composite-10 153.20 1.4% 0.5% -15.1%
Composite-20 141.86 1.4% 0.5% -15.4%
Source: Standard & Poor's and Fiserv

Act Now to Get a Foreclosure Deal

A study released today indicates that bargains on foreclosed properties are becoming few and far between. I can attest to this locally, as many properties are being snapped up at blinding speed--sometimes before my clients have a chance to look at them--by first-time buyers looking to cash in on very low interest rates before the December 1 deadline for the $8,000 tax credit deadline.

The high foreclosure rate during last two years caused an abundance of properties to flood the market. Prices on real estate dropped as the number of available homes kept growing. An analysis conducted by ForeclosureDataOnline.com using their database of foreclosures has found that situation is changing. Prices are rising and homes are being purchased more quickly than in recent months.

According to the analysis, the sell price for foreclosed property in many states has increased significantly in just the last month, from 3% to more than 13%.

In addition to the price increases, the database also suggests many homes are not staying on the market as long. While REO (Real Estate Owned) properties were once sitting empty on the market for months after ending up back in the hands of lenders, now they are sometimes selling in less than 24 hours.

The increased demand for these properties is driving up prices while the supply is also dwindling thanks in large part to the fed's program to slow the foreclosure rates. However, the foreclosure moratoriums that saved many homes will be lapsing in the very near future and will probably lead to a new batch of fresh foreclosure properties on the market. Just in case, investors and home buyers looking to secure a bargain need to act fast before the deals are gone.

Freddie Mac is offering a special through October 30, where they will pay up to 3.5% of the buyer's closing costs AND a 2-year home warranty in an effort to clear their inventory of foreclosures. HUD is offering a $100 down payment option for list price offers on their foreclosures if FHA financing is used. If you would like more information on either of these foreclosure incentives (for owner-occupied buyers), contact me!

2009 School Ratings

2009 District Accountability Ratings for Texas schools are out. Congratulations especially to JJ Pearce High School--my daughter's school--and its feeder elementaries for earning the highest rating of Exemplary. Great job students, teachers, and administration! It's a boost for home values to be in a neighborhood surrounded by exemplary schools.

Please email me if you would like a copy of the complete list of Dallas County schools, I'll happily forward it to you in PDF format that my good friends at Republic Title assembled.

Tax Free Weekend Starts Now!

It's been a few years (ahem) since I was in school, but back-to-school time is still exciting! Anyone who knows me KNOWS that I love the scent of pencil shavings more than freshly baked cookies. I have a real weakness for school supplies. New school supplies = new beginning.

That's why Tax-Free Weekend is big news! Today (8/21) through Sunday (8/23) retailers throughout Texas will not charge sales tax on clothes, footwear, backpacks and other school supplies priced under $100. For a complete list of qualifying items, click here:

http://www.risd.org/SchoolTimesNOW/073009/TAX%20FREE%20DAY%20-%2009.pdf

Anything is possible when you have a new pencil...Happy Shopping!

Lights, Camera, Action--Stage Time!

While at work, you probably dress differently than if you were, say, spending a lazy Sunday afternoon at home or a night on the town. If you work in a corporate environment, you most likely dress to project a certain image--clean, well-groomed, appropriately accessorized and looking your best. Of course, this doesn't mean you can't incorporate your personal style.


Think of that analogy when preparing your home for sale. You are dressing your home for work! You want prospective buyers to see your property at its best and project an image of a lovely, well maintained home that will appeal to the greatest number of buyers and offend no one. It's not necessary to completely redecorate, but there are certain things that are a must to attract buyers.


The four basic rules are:


CLEAN: Your home must sparkle, whether you do it yourself or hire professionals. No exceptions! Even if your home is the best buy on the block, buyers will be turned off by your dirty dishes, laundry, and the lingering aroma of last night's boiled cabbage.


REPAIR: You must fix those "little things" that you planned to get around to later. Buyers will notice stained carpets, a door that sticks, dripping faucets, etc., and they will perceive even the smallest item as indication of an entire home that has not been well maintained. Even if the buyer doesn't notice something, a home inspector will.


DECLUTTER: Buyers must be able to see your home and imagine themselves living there. Toys, papers, holiday decorations, etc., should be tossed, put away, or placed in temporary storage.


DE-PERSONALIZE: Make your home neutral so buyers can imagine where they would display their own things. Political or religious items are certain to turn off whole groups of buyers. Personal collections, family photos, and other memorabilia should be put away. A properly staged home will look almost like a hotel lobby or model home: well appointed but impersonal.

Dress your home for success!


Kristine Baugh, Accredited Home Stager

Savings for You!

Here are two special savings programs that my professional organization, the Texas Association of REALTORS®, has negotiated. (I don’t receive any royalties or payments whatsoever with these programs.) Here’s information on the current offers …

Appliances and home furnishings

Members of the Texas Association of REALTORS® and their clients can buy high-definition 37" - 61" TVs, refrigerators, freezers, washers, dryers, dishwashers, stoves, gas grills, garbage disposals, lawn mowers, garden tractors, tillers, snow-blowers, and many other appliances at big discounts through Sears Commercial. You will save as much as 40%-50% or more on big-ticket items through this program. However, it won’t work by going into a Sears retail location. To take advantage of these significant savings, here’s what you do:

Go to www.Sears.com to find the model number(s) of the item(s) you’d like to purchase.
E-mail this information to Texas REALTORS® program manager Bill Gillette. Be sure to include your name, a phone number where you can be reached, your city within Texas, and account number CU066433.
You will receive your discounted price quote within 72 hours.
Questions? Call 214/392-5088.

Lodging

Texas REALTORS® and homeowners can save 15% at any of 5,000 Choice Hotels worldwide, including Comfort Inn & Suites, Quality, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn, and more. Book online at ChoiceHotels.com or call 800/258-2847. You must use ID number 00801517 to get the discount.

Survey Says: Homeowners Optimistic About Market

Zillow survey results released today indicate that 81% of homeowners are optimistic their home values will either increase or stay the same within the next six months.

The survey, taken in the second quarter of 2009, reflects an optimism from American homeowners about the future values of their homes, with 81% of homeowners believing their own homes’ values will not decline in the next six months.

Only 19% of homeowners believe their own home will decrease in value over the next six months. The survey also indicated that many homeowners could be waiting on the sidelines to sell. When asked about future plans to sell, 29% of homeowners said they would be at least “somewhat likely” to put their homes on the market in the next 12 months if they saw signs of a real estate market turnaround.

One caveat: Although all signs are pointing toward a stabilizing market, an increased inventory of homes could slow a recovery. My advice is to hold off putting your house on the market just to "test the waters." It's still a buyer's market...remember the law of supply and demand. But if you need to sell because of relocation, change in family size, etc., consult an experienced real estate agent (I happen to know one!) price your home appropriately and stage it well to attract the most prospective buyers. You'll have a reason to be optimistic about selling!

Time's Running Out for Tax Credit!

Buy Now! Time is running out to take advantage of the $8,000 tax credit made available earlier this year through the American Recovery and Investment Act.

The real estate market has never been better for qualified buyers. When you factor in ridiculously low interest rates + low housing prices + the financial incentive from the government, it’s easy to see why right now = a great opportunity to invest in a home.

To receive the tax credit, a first-time buyer must purchase and close on a principal residence before Dec. 1, 2009. Since closing on a home generally takes anywhere from 45-60 days, that leaves buyers a short time to take advantage of the tax credit.

Another reason to buy now is the stabilizing real estate market. Last week, the National Association of Realtors announced that home sales increased in 39 states in the second quarter of the year compared to the first. Last month, the S&P/Case-Shiller index showed an increase in the monthly value of homes for the first time in nearly three years.

Buying a home might not only be the opportunistic thing to do but also the more practical decision. In many instances, renting is more expensive than owning. By choosing a fixed-rate mortgage, you can lock in to a lower payment that will stay the same--unlike rent which can increase yearly. And, consider that each mortgage payment builds your financial bottom line rather than your landlord's.

First-time buyers, as well those who haven’t owned a home in more than three years may be eligible to claim all or part of the tax credit based on their income level. Congress will even allow individuals to still claim the credit as part of their 2008 tax return if they file an amended tax return. Individuals can also elect to receive the credit on their 2009 tax return. As with any tax law, check with a tax advisor to discuss any specifics regarding the use of this provision.

Read more:http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Source: RIS Media

Dallas Real Estate on the Rebound

“It appears we are at the bottom of the housing market in most Texas cities,” said Real Estate Center Director Mark Dotzour after reviewing the state’s latest home sale numbers.

Dotzour mentioned two years ago that new home construction needed to fall dramatically to avoid the level of overbuilding that could damage Texas housing markets. He even predicted summer 2009 as the bottom of the housing cycle.

Apparently he was right on all counts. The Texas inventory of unsold new and existing homes is in good shape.

“I feel now is the time to buy a house in most Texas cities,” he said. “Housing affordability has never been higher, and I never thought I would see 5 percent mortgages in my lifetime. If you plan to live in the house for at least two or three years, now is the time to buy.

Dotzour said mortgage rates should remain low as long as the federal government continues to purchase almost all residential mortgages. When they stop, rates will move up.

In the DFW area, home sales were essentially flat in the second quarter following a long period of declines, according to the National Association of Realtors (NAR).

The second-quarter survey indicated that North Texas experienced a 0.2 percent decrease from a year earlier in the median price of homes. Nationwide, median prices fell by 15.6 percent.
DFW's second-quarter drop represented the smallest in over a year, welcome news after a nearly 5 percent drop in the first quarter.

The NAR report has supported recent housing data pointing to a flattening of the North Texas home market.

"We are beginning to see some more positive trends in the housing market, which is great news," said David Brown, head of the Dallas Metrostudy office. "Although it is a short trend, both the new home and resale closings during the last quarter suggest the market is bottoming out in sales volume."

Sources: Real Estate Center at Texas A&M, Dallas Morning News, National Association of REALTORS

The House That Rock Built

I've visited hundreds upon hundreds of houses. It's my job, it's what I do. But by far, the coolest house I've visited lately is The House That Rock Built. During a trip back home to Pittsburgh last week, my daughter, sister-in-law, and I drove to Cleveland to tour the Rock and Roll Hall of Fame.

I'm unashamed to confess to being a rock music fanatic, so it was fun to see several items up close. For example: John Lennons' Sgt. Pepper uniform; Mick Jagger's stars and stripes cape; several Stevie Nicks dresses; priceless Les Gibson guitars; and handwritten lyrics to some great songs, to name a few.

The building's design is striking. Architect I. M. Pei's vision of the building's form is symbolic--suggesting the energy and dynamism of rock and roll. Still, Pei incorporated some of his signature forms, in particular the pyramid, dramatic angular planes, cantilevered spaces, and stark white cladding. The building sits on the shore of Lake Erie and has become paramount in the development of Cleveland's waterfront area.

What a great house tour!

IN SEARCH OF: The Perfect Home

Remember the TV series hosted by Leonard Nimoy, In Search Of? I loved that show. Bigfoot, Loch Ness Monster, UFOs...that's my kind of entertainment! The series explored possible explanations for curious phenomena and legends and featured a disclaimer at the beginning of each episode: "This series presents information based in part on theory and conjecture. The producer's purpose is to suggest some possible explanations, but not necessarily the only ones, to the mysteries we will examine." Let's use that disclaimer for today's blog entry and substitute "REALTOR" for the word "producer."

I have an idea for an episode called IN SEARCH OF: The Perfect Home. We will explore the quest for the Perfect Home. Does it exist? Where is it? How much will it cost? I'm going to suggest a possible, but not necessarily the only, explanation for the exact location of the elusive Perfect Home.

Comedian/Philosopher George Carlin said that "your house is just a place for your stuff." If he wanted to be fancy, he could have quoted my dictionary, which states: "A place in which one's domestic affections are sheltered." Therefore, logic would dictate (Mr. Spock would be proud) that the Perfect Home is big enough to keep all your stuff in, close enough to work & school so you don't have to be too far from your stuff, and affordable so that you can comfortably pay for it and buy more stuff!

Mystery solved.

I realize that this is an oversimplification, but my point is that buying a home doesn't have to be a complicated, frustrating process of looking at countless numbers of listings. It's supposed to be fun! Relax and allow your REALTOR, loan officer, and title company handle the details and offer advice.

Here is my definition the Perfect Home: A solid house you can comfortably afford that's just the right size in a good neighborhood where you and your family feel safe.

Not bad, if I do say so myself. But something is missing--a curious phenomenon that can't be defined or discovered in any MLS listing, newspaper advertisement, or home magazine.

The curious phenomenon/magic ingredient is YOU. You are what will make it a Perfect Home. A house is the place where you keep your stuff. The Perfect Home is what you create inside your house, whether it be a mansion, condo, or a box. I'd rather live modestly with the people, pets, and stuff that make me happy than stressed out over mortgage payments in the grandest estate in all the land.

So if you're shopping for the Perfect Home, find a good REALTOR to offer professional guidance and manage the details, then enjoy the search.

There really is no mystery: Invest in a good property and YOU will make it the Perfect Home. It's perfectly logical!