Mortgage Rates Return to Record Low

Mortgage rates revisited record lows this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate returning to 4.42 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

The average 15-year fixed mortgage hit a new low of 3.81 percent, and the larger jumbo 30-year fixed rate did as well, sinking to 5.04 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent. Mortgage rates fell back into record low territory this week. The Federal Reserve has announced another injection of $600 billion over the next 8 months, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much. Even if the Fed is successful in pushing rates lower, it doesn't alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security.The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of $238 per month for a homeowner refinancing now.

SURVEY RESULTS
30-year fixed: 4.42% -- down from 4.51% last week (avg. points: 0.37)
15-year fixed: 3.81% -- down from 3.90% last week (avg. points: 0.28)
5/1 ARM: 3.57% -- down from 3.67% last week (avg. points: 0.34)

(Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.)

Source: RISMEDIA 11/9/10

HUD Awards $100 Million in Grants

WASHINGTON – For the first time ever, the U.S. Department of Housing and Urban Development (HUD) is awarding nearly $100 million in new grants to support more livable and sustainable communities across the country. HUD Secretary Shaun Donovan today announced that 45 regional areas will receive funding through a new initiative intended to build economic competitiveness by connecting housing with good jobs, quality schools and transportation.

In Texas, groups in Austin and Houston-Galveston are finalists for awards of $3.7 million.

HUD’s new Sustainable Communities Regional Planning Grant Program will support State, local, and tribal governments, as well as metropolitan planning organizations, in the development and execution of regional plans that integrate affordable housing with neighboring retail and business development. Many of the grants will leverage existing infrastructure and all reward local collaboration and innovation.

“Regions that embrace sustainable communities will have a built-in competitive edge in attracting jobs and private investment,” said Donovan. “Planning our communities smarter means parents will spend less time driving and more time with their children; more families will live in safe, stable communities near good schools and jobs; and more businesses will have access to the capital and talent they need to grow and prosper. In awarding these grants we were committed to using insight and innovation from our stakeholders and local partners to develop a ‘bottom-up’ approach to changing federal policy as opposed to ‘top-down.’ Rather than sticking to the old Washington playbook of dictating how communities can invest their grants, HUD’s application process encouraged creative, locally focused thinking.”

These grants are part of the Obama Administration’s Partnership for Sustainable Communities, which brings HUD, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency together to ensure that the agencies’ policies, programs, and funding consider affordable housing, transportation, and environmental protection together. This interagency collaboration gets better results for communities and uses taxpayer money more efficiently. Coordinating federal investments in infrastructure, facilities, and services meets multiple economic, environmental, and community objectives with each dollar spent. The Partnership is helping communities across the country to create more housing choices, make transportation more efficient and reliable, reinforce existing investments, and support vibrant and healthy neighborhoods that attract businesses. At a time when every dollar the federal government invests in jumpstarting the economy is critical, the President’s plan ensures that all these agencies are coordinating efforts and targeting resources with precision. Reflecting this new collaboration, these grants were judged by a multidisciplinary review team, drawn from eight federal agencies and from partners in philanthropy.

HUD’s inaugural grants under this program will support metropolitan and multi-jurisdictional planning efforts that incorporate housing, land use, economic development, transportation and infrastructure. This holistic planning approach will benefit diverse areas across the U.S. including $25.6 million split evenly between regions with populations less than 500,000 and rural places (fewer than 200,000 people). HUD is reserving $2 million to help all of these areas build the needed capacity to execute their plans.

The grants are awarded through one of two categories. One category of grants will assist regional planning for sustainable development where such plans do not currently exist. A second category of funding will support the implementation of existing sustainability plans.

Shelley Poticha, the director of HUD’s new Office of Sustainable Housing and Communities said, “The response to this program is huge. We were inundated with applications from every state and two territories – from central cities to rural areas and tribal governments. This program was designed by people from local government, and incorporated local input at every stage.”

View a complete list of finalists here.

Galactically Recognized!

Relocating? Call me!

Bank of American Stops Foreclosure Sales

Bank of America just announced it will stop the sales of foreclosure properties in all 50 states. If you are under contract to PURCHASE a foreclosed property, it would be prudent to seek legal counsel.

http://news.yahoo.com/s/ap/20101008/ap_on_bi_ge/us_foreclosure_mess

Imagine New Possibilities for Under-used Spaces

Home Design--How to Analyze How You Use Your Home and Imagine New Possibilities for Under-used Spaces

TX Attorney General Demands Suspension of Foreclosoures

Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties” until these institutions have taken eight specific steps to rectify possible past errors in mortgage documents.

In this case, Texas Attorney General Abbott has noted possible violation by these banking institutions of the Texas Deceptive Trade Practices Act, the Texas Debt Collection Act, the Texas Penal Code, the Texas Property Code, the Texas Government Code, and the Texas Constitution.

How will the banks respond?

The Houston Chronicle reported on Oct. 6 that some banks will not honor the AG’s request. If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed as if no demand letter had been sent.

If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:

Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosures until the dispute has been resolved.

Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.

Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.

Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.

Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.

Commercial vs. residential properties: The demand letter makes no distinction between commercial and residential properties.

Read the Demand Letter and see a list of banks below:
Letter from the Attorney General
List of Banks

Source: Texas Association of Realtors

Lead Paint Rules Update

Lead is a toxic metal that was used for many years in products found in and around our homes. Lead also can be emitted into the air from motor vehicles and industrial sources, and lead can enter drinking water from plumbing materials. Lead may cause a range of health effects, from behavioral problems and learning disabilities, to seizures and death. Children six years old and under are most at risk

Recently, law was passed to require contractors who disturb lead-based paint in homes, child-care facilities and schools built before 1978 to be certified and follow specific work practices to prevent lead contamination. Although the law applies to 79 million houses, just 38 million of those are believed to have lead paint. That law took effect April 22, but in late June, the EPA said it would delay enforcement of the law until October because there weren't enough government-approved trainers needed to certify thousands of contractors. That enforcement deadline has now been extended to Dec. 30.

By early July, 320,000 contractors had been certified. There had been an "opt-out" clause that allowed consumers to permit contractors to bypass extra preparation, cleanup and record-keeping requirements in homes where there were no children under 6 years old or pregnant women, thus avoiding additional costs. That provision expired July 6, and the EPA had no plans to reinstate it. The National Association of Homebuilders and others filed suit to force the EPA to reinstate the opt-out rule.

The law states that a hazardous condition exists when lead-paint dust is present on a floor to the extent of 40 micrograms (one millionth of a gram) in a square-foot area. Another way of expressing it is if a square centimeter lead-based paint chip were ground into dust, it would (by EPA standards) contaminate 25 square feet of floor space. The feds require the "proper" containment and cleanup when six or more square feet of lead-based paint will be "disturbed" in a home.

The EPA suggests consumers ask to see certification before they sign a contract. Since December 2008, contractors have been required by law to supply a brochure to customers outlining the dangers and rules.

If your home was built prior to 1978, it could contain lead paint. There could be extra costs associated with a remodelling project for testing and remediation of lead paint, so please talk to your contractor about this before any paint is disturbed in your home.

For more information on Lead-Based Paint rules, please visit the EPA website.

Sources: RIS Media (c) 2010, The Philadelphia Inquirer.Distributed by McClatchy-Tribune Information Services, and the EPA.

"As-Is" Home Purchases

Many homes, especially bank-owned properties, are advertised as to be sold "as-is." What does this mean? A home being sold in as-is condition is one that will transfer ownership in its current condition, and the seller is stating up front that no repairs will be made to the property. The home could be in good condition, or it could have major structural or mechanical components in need of repair or replacement.

In Texas, buyers can present a purchase offer to a seller that includes an "option period" to evaluate the condition of the property. This option provides the buyer a prescribed period of time, in exchange for monetary consideration, to terminate the contract for any reason or no reason.

During this option period, an inspection can be performed at the expense of the buyer. In an as-is purchase, the inspection should be considered as an evaluation to see if the buyer wants to move forward with the purchase or terminate, not to re-negotiate the terms of the contract. However, if specific repairs are identified, the parties can negotiate to amend the contract to specify seller-paid repairs of the items before closing, a price adjustment, or buyer termination of the contract. Some sellers will agree to make repairs prior to closing, especially if they are lender-required repairs, and other sellers will stick to the "as-is" condition, particularly banks. Banks will usually include contract addenda at the time of acceptance that address whether repair requests will be considered.

It's important to have the guidance and advice of a REALTOR during your home search and purchase. I cannot emphasize enough the need for a home inspection and an option period to evaluate the condition of any property. A home (foreclosures, particularly) might be listed at a bargain price, but it isn't a wise investment if the repair costs after the purchase are astronomical.

As always, seek the advice of an attorney for legal questions.

Bigger Isn't Better, Know Who's in Charge

Before selecting a real estate agent to represent you during a sale or purchase transaction, please be aware that "bigger isn't better" when it comes to real estate brokerages. Just because a real estate agent works for a large company, it does not necessarily translate into them having more experience or knowledge. I am a licensed broker in the state of Texas, and I am the owner of my real estate company. The buck stops with me.

The Texas Real Estate Commission recently issued this letter to brokers:

The Texas Real Estate Commission (TREC) is duly concerned about the ability of one sponsor to adequately supervise a large number of licensees. We would like to take this opportunity to
remind you of your obligations as a sponsor under The Real Estate License Act (“TRELA”) and of the Commission’s intention to diligently enforce these provisions.

As a sponsoring broker, you are responsible for the authorized acts of your salespeople. [TRELA §1101.803, Rule 535.2] A broker should also be aware that a complaint filed against a sponsored salesperson is also a complaint against the broker for the purpose of determining the broker’s involvement in the alleged violation and whether the broker properly supervised the salesperson. [Rule 535.141(c) and (d)] Corporations or LLCs can only provide the required level of adequate supervision through the personal involvement of the designated officer (DO), or where the broker or designated officer clearly delegates certain responsibilities to a qualified supervisor who fulfills these obligations.

The sponsoring broker and the DO are always responsible for the salesperson's actions, even when the salesperson does not work out of the broker’s main office or when the salesperson owns his or her own real estate company. [TRELA §1101.803, Rule 535.2(a)] A salesperson may not lawfully engage in brokerage activity unless the salesperson is associated with, and acting for, a sponsoring broker at all times. [TRELA §1101.351(c)] The broker will also need to obtain a branch office license for the office location from which the salesperson transacts business. [Rule 535.112] If the salesperson’s company engages in business under an assumed name, the broker must notify TREC in writing within 30 days after the salesperson or the sponsoring broker starts or stops using the assumed name. [Rule 535.154(c)]

Although a broker’s responsibility to supervise the broker’s sponsored agents may be delegated to another person with the proper level of experience and expertise, adequate supervision under the law must be maintained for all agents and entities in every location. Brokers operating at a significant distance from the entities for which they serve as DOs, or who have a significant number of agents or entities that they sponsor have a very high hurdle to overcome to ensure the methods and tools of adequate supervision are in place, are workable, and are effective. Formal written policies and procedures should be available, should be reasonable, should be actually used, and sponsored agents should be adequately trained on them, and such training documented. There are many practical matters which must be dealt with, such as client access to the broker or DO, advertising methods and disclosures, to ensure consumers are adequately protected and not misled.

For example, all advertisements by a broker’s sponsored agents must comply with TRELA §1101.652(b)(23) and Rule 535.154. At minimum, subsection (e) of this rule requires an advertisement placed by a licensee to "include information identifying the advertiser as a real estate broker or agent. The name of a salesperson sponsored by the broker may also be included in the advertisement, but in no case shall a broker or salesperson place an advertisement which in any way implies that the salesperson is the person responsible for the operation of a real estate brokerage." A broker may be held liable for a sponsored agent’s violation of any advertising requirement and we suggest that the broker conduct a careful review of all sections of Rule 535.154 and have proper advertising guidelines and/or an advertising review procedure in place to ensure compliance at all times prior to placement of any advertisement.

This message is a reminder to live up to the high standards of the profession you enjoy. We know that most brokers take these responsibilities seriously and strive to make them a part of their daily business practices. The Commission’s Broker Responsibility Working Group is currently developing enhanced professional standards for brokers to better enable the Commission to carry out its primary mission of consumer protection. We hope that you will continue to take your supervisory responsibilities as a broker seriously and will join us in working for the betterment of the profession as a whole. By doing so, we will surely gain increased trust and respect from the people of Texas whom we all serve.

Sincerely,
Douglas E. Oldmixon, Administrator
Texas Real Estate Commission

Preparing Your Home for Fall

With fall around the corner, it’s a great time to start prepping your home for the cooler months. It's better to be ready for the cold season…before it hits. State Farm offers up some fall maintenance tips for your home:

Windows and Doors

• Check all windows and doors for proper operation and seal.
• Windows that can be opened by breaking the glass and unlocking them, are less effective deterrents to criminals. Check with the hardware store for window lock alternatives.
• All exterior doors should have deadbolt locks.

Stairs

• Make sure there are working nightlights at the top and bottom of all stairs.
• Tile and painted wood or concrete stairs can be slippery when wet or when a person's shoes are wet. Resurface the treads with slip-resistant strips near the stair nosing.
• All stairs of at least three risers should have a handrail.
• Do not store items on the stairs.

Heating

• Have a heating professional check your heating system every year.
• Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
• Replace your furnace frequently to allow your heating system to operate properly.
• Have a certified chimney sweep inspect and clean the flues and check your fireplace.
• Remove bird nests from chimney flues and outdoor electrical fixtures.

Source: RISMedia

10 Lost (or no) Cost Ways to Improve Home Appeal

When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. It is a buyer's market, and a buyer will move on to the next listing if your home is not presented at its best.

Tip #1: Refresh the exterior

First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:

-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.

-Painting siding, trim and shutters and lamp and mailbox posts.

-Pressure washing vinyl siding, roofs, walkways and the driveway.

-Washing windows.

Tip #2: Spruce up the lawn and landscape

Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:

-Mowing and edging the lawn.

-Seeding, fertilizing and weeding the lawn.

-Keeping up with regular lawn maintenance and frequent watering.

-Trimming and/or removing overgrown trees, shrubs and hedges.

-Weeding and mulching plant beds.

-Planting colorful seasonal flowers in existing plant beds.

-Removing trash, especially along fences and underneath hedges.

-Sweeping and weeding the street curb along your property.

Tip #3: Create an inviting entrance

The front door to your home should invite buyers to enter. The best ways to improve your entry include:

-Painting the front door in a glossy, cheerful color that complements the exterior.

-Cleaning, polishing and/or replacing the door knocker, locks and handles.

-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.

-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce clutter and furniture

A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:

-Holding a garage sale to prepare for your move, getting rid of unnecessary items.

-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.

-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.

-Removing any visibly damaged furniture.

-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.

-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.

-De-personalize rooms as much as you can.

Tip #5: Clean, clean, clean

The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:

-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.

-Cleaning carpets, area rugs and draperies.

-Cleaning inside the refrigerator, the stove and all cabinets.

-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.

-Eliminating house odors, especially if you have pets. Do not attempt to "cover up" odors such as pet stains in carpets with candles or potpourri.

Tip #6: Make minor repairs

The small stuff does count, especially with first-time home buyers. Except for major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:

-Repairing ceilings and wall cracks.

-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.

-Caulking and grouting tubs, showers, sinks and tile.

-Adding fresh paint to ceilings, walls, trim, doors and cabinets.

-Tightening door handles, drawer pulls, light switches and electrical plates.

-Lubricating door hinges and locks.

Tip #7: Showcase the kitchen

The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:

-Replacing cabinet doors and hardware.

-Installing under-cabinet lighting.

-Replacing light fixtures.

-Replacing outdated shelving with pantry and cabinet organizers to maximize space.

Tip #8: Stage furniture

Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:

-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.

-Creating a reading corner in the master bedroom.

-Clearing an empty room to set up a reading space.

-Turning an awkward space into a home office or exercise area.

Tip #9: Light up the house

Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:

-Opening shades and drapes to let the sunshine warm and brighten rooms.

-Installing brighter light bulbs in rooms that tend to be dark.

-Adding additional lamps for ambient lighting.

-Turning on all the lights for a showing.

Tip #10: Add fresh touches

You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:

-Placing fresh floral arrangements in the entry and master bedroom.

-Placing bowls of bright-colored fruit in the family room and the kitchen.

-Filling an empty corner with a potted leafy plant.

-Setting new hand soap in the bathrooms.

-Displaying fresh towels near sinks.

Source: RISMedia

The 9's

Here's something fun I like to do every so often.

I go on a scavenger hunt through the multiple listing service for homes listed at a certain "number." For example, since September is the 9th month, I looked for homes priced in the 9's. Here are the results of Dallas homes (bathrooms, specifically) priced from $9,000 to $9 million. These are not my listings, by the way. Enjoy!

Here's one priced at $9,000. Brings new meaning to the term "garden tub."

At $90,000 simple, yet functional.

$900,000. Very nice.

And a "whoa mama" master bath suite for $9 million.

Why Some Houses Sit While Other Houses Sell

2010 School Ratings

From my friends at Republic Title, here is a link to school ratings in the Dallas area.

Schools Do Affect Home Values

As we prepare for traditional back to school activities, some families are searching for affordable housing based on local schools or desirable school districts. In some cases, proximity to quality schools is so important buyers may choose to rent close to a preferred school until the right home becomes available, especially if they're running out of time before the first day of school.

Because proximity to a quality school is such a high priority for some of these families as they search for their next home, they specifically chose neighborhoods with top ranked schools, which can sometimes as much as 10 to 28 percent higher in price than a comparable home in an area with lower ranked schools.

In my experience, North Dallas neighborhoods within the Richardson Independent School District are a popular choice for buyers relocating from other states or moving from other areas within the city. Other school districts, such as Plano, Allen, and Carrollton/Farmer's Branch are gaining in popularity.

So whether you have school age children or not, keeping an eye on your school's ranking does make a difference when it's time to sell your home. Many homeowners also support their local PTA and offer volunteer hours to stay involved with neighborhood schools.

No Federal Sales Tax on Home Sales

It's a myth ... there is no federal sales tax on home sales. An Internet rumor continues to spread false information about a supposed tax on home sales. The erroneous e-mail claims that a provision of the healthcare reform bill passed earlier this year will place a tax on "all real estate transactions" in 2013. Not true.

Source: Texas Association of REALTORS

What in the World is Xeriscaping?

Xeriscaping (or xerogardening) is the practice of landscaping and gardening in ways that reduce or eliminate the need for excess water. Taken from the Greek word, "xeros" (meaning dry), xeriscaping was initially designed to provide landscaping options for areas which are particularly sensitive to draught.

In addition to reducing the costs of watering and chemical maintenance, well executed xeriscaping can actually improve the curb appeal and value of a home.

Interested in saving water and eliminating lawn maintenance? Consider this green alternative. Below are a few links on the topic of xeriscaping:

An Overview of Xeriscaping:

http://eartheasy.com/grow_xeriscape.htm

Images of Xeriscaping:http://tinyurl.com/23keqet

Florida homeowners who have embraced xeriscaping: http://www.beacononlinenews.com/news/daily/2751

Photo: Texas hummingbird mint (A. cana) courtesy www.finegardening.com

Who’s Moving to Dallas?

Click here to view a fascinating interactive map from Forbes.com that shows the movement pattern to (and from) Dallas County.

Search capabilities for other counties across the country are also available.

Real Estate is a Local Market!

It's Good to Be #1

This has nothing to do with real estate...

But take a break, have some Romulin ale, and party like a Vulcan:

The Downsizing of American Homes

Americans are (finally?) realizing the benefits of smaller living spaces. Baby boomers retiring, young people delaying marriage and families until later in life, and the economic woes may have forever changed the scope of residential property design.

U.S. Census Bureau studies show that the average size of a new house decreased last year for the first time in decades. In 2008, the average size of new construction was 2,277 square feet, but 2009 statistics show that the average size last year was 2,215. That's still twice as large as homes built in the 1960s, but it was the first drop in home size since the early 1980s.

"Home buyers have been changing," says Fran Litton, a planner with Evans Group, an architectural firm in Orlando, Florida. "They still want the luxury and toys, but they're putting them into a smaller space."

Smaller homes require owners to rethink what they really need and how to maximize storage and counter space. Likewise, the scale of furniture is changing. The days of oversized, overstuffed furniture in every room are gone--replaced by multifunctional pieces that combine comfort with hidden storage.

Matthew McNicholas, an architect with MGLM in Chicago, says that "a room is nicer when the details in it are nice." He adds that "the trend in bigger homes is to use less expensive materials because you need some much of it." But in a smaller home, it's more practical to upgrade to higher quality molding, flooring, and furniture to capitalize on elegance rather than filling space.

And, remember that smaller living space usually means lower mortgage payments, property taxes and utility bills.

Source: Maggie Sieger, REALTOR Magazine

Owner Financing in Texas

What Property Owners Need to Know About the SAFE Act of 2008.

The SAFE Act improves the accountability and tracking of residential mortgage loan originators, enhances consumer protection, reduces fraud, and provides consumers with easily accessible information regarding the professional background of persons providing mortgage loan origination services. The SAFE Act's primary purpose is to place minimum licensure requirements on all mortgage-loan originators. However, the licensing requirements also expands to those who are offering to owner finance their investment or second home properties.

What does this mean to property owners and investors?

• A seller who wants to owner finance property must be licensed as a Residential Mortgage Loan Originator (RMLO) in ALL 1-4 family residential transactions that are not their primary residence or to a family member! (Property owners may finance the sale of their primary residence or provide financing to a family member without a license.)

• Applicants must complete education, submit fingerprints for background checks, pay association fees and pass an exam.
• Contrary to some rumors circulating, there are NO EXEMPTIONS for five or fewer transactions during a 12 month period.

UPDATE: The Department of Savings and Mortgage Lending has postponed the seller financing licensing requirement deadline until August 31, to allow time to discuss a proposal to allow sellers to finance up to 5 properties per year without a license. Stay tuned!

For more information, please visit the Texas Department of Savings and Mortgage Lending website.

Sources: Metrotex Realtor Assoc., www.HUD.gov, FDIC

Study Predicts Home Price Increase in 2010

Home prices will manage a small gain in 2010 after the worst crash since the Great Depression but gains in coming years are likely to come slowly, a Reuters poll found. Home prices, as measured by the Standard & Poor's/Case-Shiller 20-city index, should rise 1.4 percent this year and 3 percent next year, breaking three years of sharp declines, according to the median forecast. Home prices in the Dallas/Fort Worth market have increased 2.65% this year, compared with last year, according to the current Case-Schiller Index.

Three-quarters of the economists polled said it was possible that average prices would return to where they were in 2006 before the crash, which would require a rise of more than 40 percent, but that may not happen for some time.

Source: Reuters, May 20, 2010

Buyer Bonus Event Works!

The Coldwell Banker Buyer Bonus Event can work for you, whether you're buying or selling a home!

Buyers:
Receive up to an $8,000* credit at signing Open to all potential homebuyers — Where the home seller has agreed to participate
Sign on your terms — with flexible closing deadlines

Sellers:
Add prominence to your listing with an $8,000* incentive, applied at closing, for interested buyers
Increase exposure on coldwellbanker.com searches
Keep the momentum of the government tax credit going

Whether you are considering a home purchase, sale, or both. Please call me! My direct office number is 972-733-2204.

What Do Buyers Look For?

Studies show that buyers look at four main characteristics in a home.
(The percentage is the percentage of buyers who rate that characteristic as their "most important." )

1. Location - 69%


2. Curb Appeal - 12%


3. "Homey" feel - 10%


4. Size - 9%

So, if you are a seller, it's important to realize that 78% of what a buyer is looking for is out of your control. Obviously you cannot easily change the location or size of your home. You do, however, have complete control your home's interior appearance curb appeal. It is your job as a seller to make the best first impression possible.

What factors influence the buyer's first impression of your home's interior?

• Cleanliness, Clutter, Odors - 35%


• Decor - 21%


• Condition, Lighting - 16%


• Floor Plan - 15%


• Room Size - 13%

You can't easily change your home's floor plan or room size, but you do have control over 72% of the elements that most influence a buyer's impression of your home! If you want top dollar for your property, you simply cannot expect buyers to "see past" clutter, the lingering aroma of last night's dinner, or mountains of laundry.

The good news is that ALL of these things are easily and inexpensively remedied! Contact me for a free booklet on how to prepare your home for sale. Coldwell Banker even has a "Concierge" service with numerous resources to help with everything from carpet cleaning to moving company discounts.

Va-Va-Va Vinegar!

Vinegar is a miraculous liquid. What else could transform nasty cucumbers into delicious pickles? I use vinegar for various household tasks. Although the odor doesn't appeal to me, it's nothing a good squirt of lemon or lavender essential oil can't remedy in a flash!

Here are two websites detailing the use of vinegar for just about everything:

http://www.vinegartips.com/

http://www.versatilevinegar.org/

KERA: Flower Mound Voters Weighing In On Gas Drilling (2010-05-06)

Early voting in Flower Mound sets record turnout for city council elections due to a heated debate over natural gas drilling. Whoever wins Saturday will steer Flower Mound through the next round of drilling decisions, as the city tries to balance quality of life and natural gas revenue.

Full text/video available here:
KERA: Flower Mound Voters Weighing In On Gas Drilling (2010-05-06)

10 Warning Signs of Foundation Problems from Ricky Ellis

It doesn’t take a Rocket Scientist to figure out your home needs foundation repair.There are several overt signs that make it apparent there is a issue, or that the house is sinking. Look for these signs and call a home foundation professional to doublecheck. Take these with a grain of salt. Only a certified foundation inspection agent can tell you for sure. Fortunately many companies offer free inspections.

10 Warning Signs You Property Could Need Foundation Repair

Cracks in walls on the inside of the house- Corners of windows will crack horizontallyand doors will pull away and not shut properly.

Cracks in your fireplace bricks- When bricks start cracking, you know you have a problem,since they are more stable than drywall.

Previously fixed Nail heads protruding out backwards- This means the gypsum board is being compromised, or bending based on the house leaning, or sinking one way another.

Windows and doors aren’t fitting squarely- Try raising and closing all doors and windows. Are they uneven?That’s a big sign.

Windows on the outside of the house have cracks that run diagonally - This is a slightly different crack that you will see from windows within the house because the caulk joints could be pulling apart too.

Cracks in the exposed concrete at the base of the house - If they are small it could be a non-structural problem, or it could be the first sign of trouble. Check with an inspector to be sure.

Standing water around the house after a rainfall - This could also have something to do with having improper drainage which should also be addressed.

Leaky roof- This could have to do with foundation, or poor roofing. If the roof is in good shape and is relatively new, then it is a foundation problem.

Trees too close to the house- This can cause roots to sidewind under and around the house, cut through concrete, and cause problems.

Roof runoff from gutters not draining away from the house- If once it drains into the yard, the water stays and doesn’t diffuse to a lower place such as a ditch, there could be a problem.

Are you seeing any of these signs? I hope not. Depending on what part of the country you are in, your home may be more susceptible to these issues.

Also, the price of fixing the foundation could depend on the age of your home, weather conditions, the size of your home, and several other variables.

Source: Ricky Ellis, Safety First Home Inspection www.safetyfirsthome.com

Here to Help.

When you, a friend, or family member need assistance with finding or selling (or leasing) a home, please remember that I can help in just about any location in the U.S. and abroad.

Small Remodeling Projects that Add Value to Every Room

Well, not all of these projects are what I consider "small," but I agree that they all add value and marketability to a home.

Small Remodeling Projects that Add Value to Every Room

Earth Day - Celebrate with Native Texas Plants

It’s difficult to go anywhere these days without noticing reusable grocery bags, re-purposed material and recycling bins that dot courtyards and campuses. If you already use compact fluorescent bulbs, drink from reusable water bottles or carpool you might wonder, “What else can I do?”

The good news is small changes you make in how you approach your backyard and other landscapes are a big way to thank Mother Earth by showing your “go green” colors. Here are some eco-friendly tips from the Wildflower Center as part of charting a course towards greater ecological sensitivity and environmental consciousness.

Please read the entire article here:

Webpage Feature - Lady Bird Johnson Wildflower Center

Source: Lady Bird Johnson Wildflower Center

Earth Day is April 22

Is It The Beginning of The End?

Fresh data on new construction of U.S. housing units revealed an upward trend in place since the beginning of the year, with an initial report of February 2010 weakness revised away. Is this the beginning of the end of the housing crisis?

Starts rose 1.6% in March to a seasonally adjusted 626,000 annualized units, the Commerce Department recently reported. This was stronger than the 610,000 pace expected by economists surveyed by MarketWatch.

Even more surprising, February starts were revised higher to a 616,000 pace from the 570,000 previously reported. This was up 1.1% from the prior month. The initial estimate had been a 5.9% drop.

As a result of the revisions, starts have risen for three straight months and are now at their highest level since November 2008. “The bottom line is that there is an upward trend and construction will be moving higher provided that new-home sales improve as well,” said Michelle Meyer, economist at Barclays Capital. Meyer cautioned that one should not get carried away with the improvement as it comes from “an incredibly low level of activity.”

In March, strength came from multifamily starts. There was a slight decrease in starts of single-family homes. Starts of single-family homes fell 0.9% to a 531,000 rate in March, while starts of multifamily units surged 39.7% to 88,000.

The strength was concentrated in the South; all other regions declined in March.

“This was a modestly positive report. It is nice that construction is improving, but it would be better if the gains were more widespread,” wrote Joel Naroff of Naroff Economic Advisers.

In the past year, starts are down 20.2%. Starts of single-family homes are up 47.1%, while starts of apartments and condominium units have plunged 31.8%.

Building permits rose 7.5% to a seasonally adjusted annual rate of 685,000 in March.

Building permits for single-family homes increased 5.6% to a 543,000 rate—the highest level since August 2008. Many economists consider single-family permits to be the most important number in the government’s release. Permits for apartments rose 15.4% to 142,000.

The National Association of Home Builders recently said its members were more encouraged about their business in April. The builder’s sentiment index rose to 19 in April from 15 in March. “We may be seeing some modest improvement in the fundamentals for new housing construction,” wrote the RDQ economic team in a note to clients.

A tax subsidy for buyers expires at the end of April, and “we will need to see data for May and June before we can put too much weight on this conjecture,” the RDQ note said.

It can take four months for a new trend in housing starts to emerge from the data. In the past four months, housing starts have averaged 606,000 annualized, up from 594,000 in the four months ending in February.

The industry has slashed production of new homes to work off a massive amount of unsold inventory. The number of homes under construction fell 1.4% to a seasonally adjusted 489,000, the lowest on record, dating back to 1970. “Any pickup in demand,” Meyer said, “will warrant an increase in new construction.”

RISMEDIA (c) 2010, MarketWatch.com Inc.

Dallas and Collin County Home Sales Charts

Source: Coldwell Banker Residential Real Estate

Homebuyer Tax Credit Deadline Approaching

April 30 is the last day to take advantage of the federal tax credit for homebuyers. Under the guidelines, a home must be under contract by April 30 and close by June 30.

First-time buyers are eligible for up to $8,000 in credit. Current homeowners who have lived in their home for at least 5 of the past 8 consecutive years can qualify for up to $6,500 when relocating.

The National Association of REALTORS estimates that 4.4 million households will take advantage of the credit in 2010.

Expect many open houses during the month of April to give buyers every opportunity to find a new home! For more information on the tax credit or for a list of homes that match your "wish list" please contact me at 972-841-0999!

Mortgage Fraud Conviction - Video

Eric Farrington, 7 others convicted in mortgage fraud case | News for Dallas, Texas | Dallas Morning News | Latest News

Eric Farrington, 7 others convicted in mortgage fraud case | News for Dallas, Texas | Dallas Morning News | Latest News

Posted using ShareThis

Pricing your home correctly

Yuri posted a good video on the importance of pricing your home corrrectly.

Pricing your home correctly

Dallas Shows Largest Population Gain!

Dallas-Fort Worth and Houston gained the most new residents of any city -- netting more than 140,000 each -- according to the Census Bureau's annual metropolitan area population estimates released on Wednesday. Meanwhile, music center Austin posted the second highest growth rate among top cities -- 3.1% -- just behind Raleigh, N.C.

"Texas stands as the most prominent Sun Belt survivor of the last half of the decade because of its diversified economy, smaller run-ups in housing prices, and fewer foreclosures," said William Frey, a demographer for the Brookings Institute, a liberal think tank.

Source: CNNMoney.com

5 Tips for a Successful Remodel

As spring approaches, many home owners grow eager to start remodeling projects to update and refresh their surroundings. Before getting started, it’s a good idea to hire a professional remodeler for a workable plan and better results, according to the National Association of Home Builders (NAHB).

“A professional remodeler knows how to translate a home owner’s dreams and budget into a beautiful reality,” said Donna Shirey, President of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. “They have the expertise and skills to satisfy a customer while keeping the budget in check.”

Here are five tips for planning a successful home remodel that you can enjoy for many years to come.

1) Compile a list of home remodeling ideas and draft a budget for the work.

You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials, and implementing creative design solutions.

2)Look for a professional remodeler to help plan the project.

Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project. Contact your city's Better Business Bureau for the company's rating. After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.

3) Agree on a contract.

Talk over the details of the home remodeling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.

4) Take advantage of the energy efficiency tax credits.

If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater, or installing energy generating products (such as solar panels, heat pumps, or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills. (Learn more at www.nahb.org/efficiencytaxcredit.)

For more tips on planning a home remodel or hiring a professional remodeler, visit www.nahb.org/remodel.

Source: RISMedia/NAHB Photo: Kristine Baugh

What's Your Walkability Score?

Walk.com rates neighborhoods based on residents' ability to get by without a car. Criteria used includes the area's proximity to public transit, schools, grocery stores, restaurants, parks, etc.

My neighborhood, Prestonwood Estates in Dallas, rates a 78 out of 100. This is considered "very walkable" and a terrific selling point for the neighborhood.

Check out your neighborhood's Walkability Score here.

Simple Bath Updates for Huge Impact

A few simple updates to bathrooms can do so much to enhance the value, enjoyment, and marketability of a home.  Whether you are considering selling, buying, or investing, here are some inspirational ideas for bathroom projects (in all price levels) that might help you visualize a bathroom's potential.  Here is a "before" photo.  Click here to see the AFTER photo!

Source: www.bhg.com

Creative Uses for Tile on Walls

The home improvement articles from Better Homes and Gardens' website are always informative. I love this one on the use of tiles, and surprising materials being used in tiles now.

Yesterday, I saw a backsplash made of clear, recycled glass. It was a small kitchen with good morning light, and the glass reflected the light and brightened the kitchen quite nicely. I always support using recycled materials in a project.

Click here for more!
Creative Uses for Tile on Walls

Dallas-Fort Worth home prices up by 3 percent | News for Dallas, Texas | Dallas Morning News | Latest News

Dallas-Fort Worth home prices up by 3 percent | News for Dallas, Texas | Dallas Morning News | Latest News

Posted using ShareThis

Extended Home Buyer Tax Credit

For details of the extended tax credit for first-time and move-up home buyers, which runs until April 30, 2010, click here: Extended Home Buyer Tax Credit: REALTOR® Magazine

Or just contact me!

Homes must be under contract by April 30 and close by July 1 to qualify.

Report States The Obvious--Foreclosures Are Bad for Neighborhoods

The Journal of Real Estate Research conducted a study of the impact of foreclosures on neighborhoods.  Surprising to no one, the results show that foreclosures definitely hurt neighborhoods and home values.  Although the study states the obvious, it is important to note the data and analysis prove the impact that the surge in foreclosures has had/could have on our housing industry and the economy.

Here are excerpts from the study findings:

Housing foreclosures likely have little neighborhood impact if there are few foreclosures in a neighborhood and the foreclosed housing can resell quickly. However, when there are many foreclosures along with a sluggish housing market, foreclosures can lead to neighborhood destabilization, which should cause house prices to further fall.

As an added bonus, foreclosed properties tend to produce negative spillover effects including vacancies, reduced maintenance of the foreclosure property, and increased neighborhood crime.

Foreclosures cause lower sale prices, which increase the probability of more loan defaults.

As foreclosed housing builds up in a neighborhood, home sellers may delay the sale of their house in order to avoid a loss.

The foreclosures impact on neighboring sales prices. For example, assume a family purchased a home for $200,000 six months ago.  Since the purchase, a foreclosure took place within 200 yards of the family's new home.  Data shows a decline of 1.1% or about $2,200 in that family's home.

Read the entire study.

Source: Rogers, W., & Winter, W.. (2009). The Impact of Foreclosures on Neighboring Housing Sales. The Journal of Real Estate Research, 31(4), 455-479. Retrieved February 17, 2010, from ABI/INFORM Research. (Document ID: 1940056661).

The 10 Must-Have Home Features

What features will sell a home quickly for top dollar in this housing market?

AVID Ratings Co. released the results of their annual home-buyer preference survey and revealed 10 "must have" features in a new home.

1. Large kitchen with an island
2. Energy efficient appliances, insulation, and windows
3. Home office/study
4. Main-floor master suite
5. Outdoor living area
6. Ceiling fans
7. Master suite soaker tubs
8. Stone and brick exteriors
9. Community landscaping, including walking paths & playgrounds
10. Two-car garage


Source: Avid Ratings                   Photo: Brava Realty