Wednesday, December 16, 2009

KW Agent in Christmas Spirit


The Seitzler family knows a lot about giving.But now, in their time of need, it’s their turn to receive. John and Kathy Seitzler were on the brink of losing their Terrell home of 17 years when Debbie Brown stepped in. Debbie, an agent with Keller Williams Rockwall who helps families who are facing foreclosure, responded to the Seitzler’s plea for help as Director of the Angel Foundation. “Once I met the Seitzlers, I knew I had to help and do everything in my power to save their home from foreclosure,” Debbie said. “I wanted to be sure the mortgage company could make this home affordable for the Seitzlers so they could stay living in their home.”

The struggles for the Seitzler family began about four years ago when John, who had supported the family of six children with a six-figure income, lost his job as an IT specialist. Although he has searched for work that utilizes his expertise, it’s been very difficult for the 61-year-old to find a suitable job in this job market. To make ends meet, he now works 55 hours a week—40 hours at a local fast food restaurant and 15 hours a week at the local skating rink. “I’m doing everything I can to get the bills paid,” he said. “We’re living day by day,” Kathy said.

The Seitzler family has always given to others. Along with raising their own four children who are still at home, John and Kathy also adopted two special needs children and have round the clock care for them out of their home. They also hold regular prayer and church group meetings at their home for underprivileged and
handicapped children. In fact, the youngest special needs child they adopted-Ashley, who is now 5 years old--came to the Seitzler family from Illinois. As a baby, Ashley was in such bad condition, she couldn’t move, swallow, see or hear. Doctors said she wouldn’t live much longer and Ashley was headed to a nursing home. “That was basically a death sentence,” John said. “Even in our situation, we couldn’t let that happen. We don’t believe any child or baby is a mistake. We decided that regardless of her fate, we would take her into our home and let her know she was loved and important to us.”

The Seitzlers fought to have Ashley come to Texas and then Senator Barack Obama, President George W. Bush and Governor Rick Perry were all involved in getting special permission for Ashley to come to Texas to be with the Seitzler family. She is now doing better than anyone ever expected. “She can see and hear and she touches everyone she meets,” John said. “She has made great progress. Our children have learned to care for her and people that meet them and interact with Ashley are amazed with their love and care for Ashley.”

However, it does take a lot of special equipment to care for the special need children in the household. Therefore, it would be very difficult for the Seitzler family to just move into a smaller house. “We never knew from one month to the next if we’d be able to stay here,” Kathy said. “And we have nowhere to go if we lost our home.”

Debbie is assisting the family in every way she can and is in communication with the mortgage company to find a solution for the Seitzler family and for now, they can stay at their home. “The Seitzlers have given so much of their time, money and love to others,” Debbie said, “we feel it is time to help give back to the Seitzler family.”

The house also is in need of many repairs and foundation work. The Seitzler family is thankful to have Debbie working on their behalf. “We’re so thankful,” John said. “We trust Debbie. Our faith has grown so much through all of this and we know God will always provide.” The Seitzler family has six children living at home: Justin, 17, De’Anna, 16, John Wayne, 13, Joseph, 11, Haley, 8, and Ashley, 5.

-From the Kaufman County Enterprise
Story and Photo By Jennifer LaPrade, Managing Editor

Wednesday, November 25, 2009

7 Tips For A Preapproved Mortgage

By Lisa Scherzer for SmartMoney - Source: www.MSN.com
Having a letter of preapproval can remove a lot of obstacles to homebuying, but the process isn't as simple as it used to be. Preparation and caution are advised.

During the height of the real estate boom, getting a mortgage was as easy as picking out a new coffee table for the living room. Now, homebuyers have to jump through rings of fire before they can sign on the dotted line.

Today, the first step in landing a home loan is obtaining a letter of preapproval. This means a mortgage lender has verified that you're approved for a mortgage of a certain amount over a fixed time frame.

Preapproval letters are prepared even before you've picked out your home. They remove some of the uncertainty in the home buying process. In the current housing market, real estate agents and sellers and builders prefer to work with buyers that have one.

"Before you even get in my car, you want to get preapproved," says Gerry Bourgeois, a real estate broker and president of Towne & Country Realtors in Leominster, Mass.

With a letter in hand, buyers know exactly how much they can borrow -- and therefore how much house they can afford. A preapproval letter shows the seller and the seller's agent that the buyer is capable of buying their house. "For most sellers, the issue is not whether they can get an offer, but whether they can close the deal," says Tara-Nicholle Nelson, a real estate broker in Oakland, Calif.

Agents see preapproved buyers as more serious (and more valuable) because they've taken proactive steps to secure a preapproval. When it's time to make an offer, a preapproved buyer will be in a better position to negotiate.

Here's what homebuyers need to know about the new rules of mortgage preapproval.
Shop around, and shop early: When seeking preapproval, talk to a few mortgage lenders to find the best mortgage package that suits your needs.

Two or three lenders is customary, says Brad Blackwell, a national sales manager at Wells Fargo Home Mortgage in Danville, Calif. More aren't necessary to get a good deal because loan packages are generally very similar and pricing tends to be comparable, he says.

And consult with lenders before you start house-hunting. This way, you'll know how much you can borrow -- and which houses are in your price range, says Ann Stickel, vice president of affiliated services at Michael Saunders and Co., a real estate brokerage in Sarasota, Fla.
Prepare your financial biography: Getting preapproved means a lender must review and verify your income, credit and assets to ensure you could make the necessary monthly payments on a house. In the wake of the housing bust, borrowers must be more forthcoming when it comes to their finances, Stickel says. Your lender should tell you precisely what you need, but be prepared to include:

W2 statements (or 1099 income statements) for the last two years.
Federal tax returns for the last two years.
Bank statements for the last few months.
Recent pay stubs and proof of other income.
Proof of investment income.

Know you're not obligated to one lender: Preapproval doesn't bind you to a particular lender; it's just a promise -- albeit, a conditional one -- that the lender is willing to make the loan. The buyer isn't obligated to borrow from that lender.

Don't expect a rate quote: A preapproval will stipulate the loan amount or monthly payment but not necessarily the loan type or rate. When you apply, lenders use that day's mortgage rates to estimate costs and payments. "Just don't expect them to keep the same rate they preapproved you with as the actual rate that will be available when you find a property and sign a purchase contract," says Danny Valentini, a senior vice president and regional manager at Homeservices Lending, a mortgage lender in San Diego.

Keep an eye on your credit score: Usually, a loan inquiry can ding your credit score. If you applied for a bunch of credit cards within a short period of time, for example, your FICO score might fall. (Most lenders use some version of the FICO score to determine your eligibility for credit and what interest rates and other terms they should extend to you.)
But the credit-scoring models are designed to allow for mortgage loans. The score ignores mortgage, auto and student loan inquiries made during the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping, according to MyFico.com. Also, the score looks at your credit report for mortgage, auto and student loan inquiries more than 30 days old. If it finds some, it counts those inquiries that fall in a typical shopping period as just one inquiry when determining your score.

Deal only with a reputable lender: Sellers now are looking much more closely at who the buyer's lender is. To avoid instances in which the lender might not be able to deliver on the loan, they want to see that any prospective buyer is working with a financially sound and reputable lender, says Blackwell. Most national brokerages and banks have local branches, so buyers should ask their real estate agent (and the buyer's agent who is representing them) or builder for recommendations.

To satisfy any doubts you might have about a particular lender, visit the Better Business Bureau's Web site to find out what kind of reputation they have.

Watch the clock: Preapproval letters -- and the documents they verify -- have expiration dates. Those dates vary by lender, but the letters are typically valid for 90 days, Blackwell says. If you're still house-hunting after, say, 60 days, and you're concerned, ask your lender to revalidate the preapproval letter. Sellers want to be sure the buyer's financial situation hasn't changed since the time the lender initially checked them out.

If any part of your financial picture has changed -- your credit, job status, income or assets, for example -- you should notify the lender so your preapproval can be adjusted.

Friday, November 20, 2009

Foolproof Fall Plants

Source: My Home Ideas.com/www.MyHomeIdeas.com

Try these six easy ideas for gorgeous gardens to provide great color throughout the fall.

Fall Flowers
Curious what to plant now for great color throughout the fall? We've highlighted our favorite autumn bloomers, from 'Alabama Sunset' coleus to heirloom mums.

Mexican Sage
Purple Mexican bush sage and yellow chrysanthemums make a simple, striking fall combination.
This sage has velvety purple-and-white blooms and grayish-green foliage. Forming a large, rounded mound, Mexican bush sage reaches 3 to 4 feet tall. It begins to flower in September and continues until frost.

Coleus
Hardy throughout the fall season, coleus adds bright splashes of color to any landscape.
The new foliage of 'Alabama Sunset' coleus is bright chartreuse but quickly turns pinkish-red (as shown here). It looks stunning through both stages. To highlight its rich colors even more, plant this coleus beside light blue flowers-such as those of wild ageratum.

Blue Asters
Ethereal New England asters add long-lasting color to fall gardens.
While these asters are rather inconspicuous for most of the year, the 2- to 3-foot-tall plants come into their own around mid-September, producing billowy clouds of blooms. Their delicate blue petals encircle small yellow centers; although the centers soon fade to brown, the petals retain color for almost an entire month. Here, New England asters are paired with light pink mums for a colorful show.

Sedum
A fall classic, 'Autumn Joy' sedum combines dependability with remarkable color and structure.
About the only thing that can kill this sedum is too much water or shade. 'Autumn Joy' first blooms a dark pink, then turns a bronzy red. Here, its broccoli-like blooms and thick, sturdy stems add both structure and color to this fall garden.

Mums
Fall-blooming heirloom mums make great garden companions for asters, salvias, and ornamental grasses.
'Ryan's Pink' mums, at left, have rose-colored blooms that look great with the purple spires of Mexican bush sage. When the plant gets full sun and a good thinning every few years, it produces fall blooms that resemble blushing pink daisies.

Containers
Fall gardens don't have to stay grounded. Try hassle-free container gardening in the coming months as well.

Pansies and violas make great choices for an autumn container garden. Light, however, is the most critical factor to consider when placing your pots; choose a location that receives at least four to six hours of sunshine every day.
Groom pansies regularly, removing spent blossoms to encourage new growth. Violas do not need deadheading, as they bloom freely.

Wednesday, November 18, 2009

TEXAS' EXISTING HOME SALES, PRICES UP

TEXAS (Real Estate Center, CNNMoney.com) – A total of 18,643 existing single-family homes were sold in Texas last month, a 4 percent increase from September 2008, according to MLS data compiled by the Real Estate Center at Texas A&M University.
The median price rose 2 percent to $147,900 during the same period, and the state finished the month with a 7.1-month inventory of existing homes.

Meanwhile, the National Association of Realtors reported today that, nationally, year-over-year sales of existing homes were up 9.2 percent last month. The median price of homes sold in September was $174,900, down 8.5 percent from last year.

Monday, November 16, 2009

WHEN WILL RECESSION END?

COLLEGE STATION (Real Estate Center) – Three things have to happen before the current recession can be declared ended. One is underway, said Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University.

"I think the economy will begin to turn for the better once the health care and cap-and-trade issues are settled. Those two political debates are creating substantial uncertainty for business owners and investors," he said.

The personal savings rate is the second trend to watch, said Dotzour.
"Over 70 percent of the U.S. economy is consumer spending," he said. "When the savings rate finally levels out, consumer spending will start to increase again."

Increased corporate profits are the third trend that must occur to bring the recession to an end. There is some indication that has already begun. The last three data points were all up. Rising profits lessen the urge for companies to lay off workers.

Research Economist Dr. Jim Gaines added that the increased corporate profits have come from reduced costs, not the kind that leads to expansion.

"Keep your eye on these three issues," Dotzour said. "When they are resolved, the economy will begin to turn the corner."

Friday, November 13, 2009

TEXAS CITIES LABOR AWAY

TEXAS (San Antonio Business Journal) – Four of the five best labor markets in the country are in Texas, according to a new study compiled by Portfolio.com.
Austin leads the way, followed by San Antonio. Houston ranks fourth and Dallas–Fort Worth fifth.
Landing at third is Baton Rouge.

All 100 metropolitan areas in the study, including those in Texas, have seen employment decline since last year. However, while 5 percent of the nation’s private-sector jobs have disappeared since June 2008, the collective decline for the 'Texas Four' has been 2.6 percent.
The Texas markets still have 589,500 more jobs than they did five years ago.
Portfolio.com used a nine-part formula to analyze employment trends in the nation’s 100 largest labor markets. The formula used midyear U.S. Bureau of Labor Statistics data for 2004–09, including unemployment rates and trends, and raw and percentage changes in private-sector employment.

Wednesday, November 11, 2009

MANY MIGRATE TO TEXAS

NEW YORK (CNNMoney.com) – Texas had the highest net migration in the country in 2008, according to the U.S. Census Bureau.

As other states suffered through a falling economy last year, the Lone Star State experienced an influx of residents, thanks to relatively stable housing and employment markets.
The population grew by 140,000 in 2008, after subtracting those leaving the state from those moving into it.

The Census Bureau also reported that fewer residents were moving within their home states.
The percentage of people who lived in different homes within the same state dropped to 12.6 percent during 2008. It was 12.8 percent in 2007 and 13 percent in 2005, when housing markets were hopping.

Monday, November 9, 2009

POSITIVE PREDICTIONS FOR TEXAS ECONOMY

AUSTIN (Austin Business Journal) – The Texas economy is predicted to begin a slow, steady recovery in 2010, according to BBVA Compass’ U.S. Regional Watch third-quarter report.
The report predicts a 1.7 percent increase in the state’s gross domestic product (GDP) in 2010, following a small contraction in 2009. This will be aided in part by a surge in home sales, according to the bank’s economists.

Home sales across Texas are predicted to increase by 4.5 percent in 2010 after declining by 12 percent by the end of 2009.

Though Texas projected a 9.5 percent deficit at the beginning of the year, it is the only state among the seven Sun Belt states covered by BBVA Compass to forecast a balanced budget in 2010.

The report also said that Texas will benefit the most from funding through the federal government stimulus program, considering the amount of money to be received by the state equates to its entire 2009 budget shortfall.

Friday, November 6, 2009

BUILDER CONFIDENCE RISES AGAIN

WASHINGTON (National Association of Home Builders) – Builder confidence in the new single-family home market edged higher for a third consecutive month in September, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released Wednesday.

The HMI rose one point to 19 this month, its highest level since May 2008.
The HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor."

The index gauging current sales conditions rose two points to 18, while the index gauging traffic of prospective buyers rose one point to 17. Meanwhile, the index gauging sales expectations for the next six months declined one point to 29.

Specifically, the Southern region of the United States posted a two-point gain to 19.

Wednesday, November 4, 2009

TEXAS TO LEAD ECONOMIC RECOVERY

SAN ANTONIO (San Antonio Business Journal) – The four major Texas metros will be among the first in the nation to recover from the recession, according to a nationwide forecast by IHS Global Insight.

San Antonio and Austin will lead the way, bouncing back to their prerecession job levels sometime next year, predicts the Lexington, Mass.–based economic forecasting firm.
Houston and Dallas–Fort Worth are among eight other metropolitan areas predicted to recover by 2011.

Monday, November 2, 2009

TEXAS CITIES RANK HIGH ON ECONOMY, HOUSING PRICES

TEXAS (Dallas Morning News) – Texas metros boast the strongest economies, according to a just-released analysis by the Brookings Institution.
Austin ranked first in a second-quarter comparison of 100 U.S. cities. Dallas–Fort Worth ranked fourth and El Paso sixth.

Houston's economy landed it at ninth, but the Bayou City ranked first among cities with the biggest increases in home prices. Local home prices jumped 4.9 percent over the last year.
Third-ranked DFW had a 3.8 percent increase in home prices, while tenth-ranked San Antonio had a 3.1 percent increase.

Friday, October 30, 2009

TEXAS METROS AMONG BEST TO LIVE, WORK

NEW YORK (Forbes.com) – Dallas, Houston and Austin are among the top four U.S. cities in which to earn a living, according to Forbes Magazine.

The magazine found Dallas to be the most desirable city in the nation to live and work, while Houston was second and Austin came in fourth.

Among the best reasons to take up residence in Houston or Dallas, according to Forbes, is the number of top-ranked companies headquartered in each city: 38 and 15, respectively.
The rankings were determined by median income, cost of living, job growth and the quality of the business environment.

Wednesday, October 28, 2009

TAX CREDIT EXPIRES SOON

HOUSTON (Houston Chronicle) – The window for first-time homebuyers to take advantage of the $8,000 federal tax credit will close at the end of November.
To qualify for the credit, any transaction involving a first-time buyer must close before midnight on Nov. 30, 2009.

Tax credit guidelines are discussed in the Houston Chronicle and in past issues of RECON.

Monday, October 26, 2009

On The Rise

Pending Home Sales ROSE by 6.4% in August to 103.8, its highest level since March 2007. According to Mr. Wood, "Pending home sales increased in August for the seventh consecutive month, suggesting that a bottom has been reached in existing home sales and a moderate recovery is underway. However, the level of home re-sales is still extremely low and any rebound is likely to be modest, especially in the near term. Some of the recent strength is due to first-time homebuyers attempting to close transactions before the federal government's tax incentives expire at the end of November."

Friday, October 23, 2009

TEXAS ECONOMY'S TURNING POINT?

COLLEGE STATION (Real Estate Center) – Texas lost fewer nonfarm jobs in July than in June, suggesting that the state's economic downturn has reached a turning point.

According to the latest economic review from the Real Estate Center at Texas A&M University, the Texas economy lost 219,200 nonfarm jobs from July 2008 to July 2009, an annual job loss of 2.1 percent. This was an improvement on the 2.4 percent loss from June 2008 to June 2009.
The U.S. economy lost 4.2 percent of its total nonfarm jobs from July 2008 to July 2009, the same rate as from June 2008 to June 2009, indicating a trend toward stabilization of the national economy. The state’s seasonally adjusted unemployment rate rose from 4.9 percent in July 2008 to 7.9 percent in July 2009, while the U.S. rate rose from 5.8 percent to 9.4 percent during the same period.

Only three Texas industries (education and health services, leisure and hospitality, other services industry) and the government sector had more jobs in July 2009 than in July 2008. Nine industries experienced net job losses over the same period, said Dr. Ali Anari, research economist with the Center.

Four Texas metro areas experienced positive employment growth rates from July 2008 to July 2009, while 22 metros had net job losses. McAllen-Edinburg-Mission ranked first in job creation, followed by El Paso, Laredo and Odessa.

The state’s actual unemployment rate in July 2009 was 8.2 percent. Amarillo had the lowest unemployment rate, followed by Lubbock, Midland, Abilene and College Station.

Wednesday, October 21, 2009

TEXAS TOPS U.S. IN HOUSING AFFORDABILITY

COLLEGE STATION (Real Estate Center) – Texas beats the rest of the country when it comes to housing affordability, according to first quarter 2009 Texas Housing Affordability Index (HAI) numbers compiled by the Real Estate Center at Texas A&M University.
The numbers reflect the ability of a median-income family to purchase a median-priced existing home in their area. Texas had a ratio of 1.95 in first quarter 2009 compared with the nation's 1.55.

"The slowdown in the housing market nationally and within Texas has led to significantly increased housing affordability everywhere, and Texas continues to maintain its place as the most affordable high-growth state in the country," said Dr. Jim Gaines, research economist with the Center.

The index is posted on the Center's website.

Monday, October 19, 2009

It's Fall: Time to Prepare Your Home for Winter

Fall maintenance is important because it helps make homes more energy efficient during the winter months, and will safeguard homes against potential seasonal 'disasters' such as leaking roofs or home fires caused by neglected chimneys. Here are ten tips to a safer, warmer winter.

TIP #1 -- Check the heating system. Check the filter, pilot light and burners in a system fueled by gas or oil. Fireplaces, boilers, water heaters, space heaters and wood burning stoves should also be serviced every year. Have the specialist inspecting your unit show you how to change the filter and then you should change it at least once every 2 months. Clean ducts in the heating system. Clean and vacuum dust from vents, baseboard heaters and cold air returns. Dust build-up in ducts is a major cause of indoor pollutants. Ducts should be professionally cleaned about every three years.

TIP #2 -- Have the chimney inspected by a qualified chimney professional. Chimneys should be checked and cleaned, if necessary, on an annual basis. If you are using a wood stove this season, be sure that the stovepipe was installed correctly according to the manufacturer's recommendations and local codes. If there is any doubt, a building inspector or fire official can determine whether the system is properly installed. If you have a chimney that will not be used, consider having it sealed shut.

TIP #3 -- Test fire alarms, smoke detectors and carbon monoxide detectors, and vacuum out the dust. Batteries should be checked every six months to ensure that they're working.

TIP #4 -- Remove excess leaves and damaged branches from trees surrounding the house. Dead branches have the potential to break and fall, ruining roofs, decks, or vehicles and the possibly causing injuries to people.

TIP #5 -- Maintain gutters. Remove all debris that can slow or impede the ability of water to drain effectively from the roof. Trapped water can be destructive not only to the gutters themselves but to the adjoining roof as well. Make sure gutter water drains away from your home.

TIP #6 -- Inspect the roof. Look for damaged or loose shingles, gaps in the flashing at joints with siding, vents and flues, as well as damaged mortar around the chimney.

TIP #7 -- Inspect exterior walls, doors and windows. Check walls and window sills for damage such as cracks, gaps, loose or crumbling mortar, along with splitting and decaying wood. Caulk exterior joints around windows and doors, which helps keep the home weather tight and lower heating bills. Check windows and doors to make sure locks work properly and that they are in good condition. Clean tracks and lubricate hinges. Repair or replace any cracked windows.

TIP #8 -- Maintain steps and handrails. Repair broken steps and secure loose banisters and handrails. Broken steps can cause a dangerous fall. Similarly, a person slipping will grab a handrail for support.

TIP #9 -- Inspect the attic and basement or crawlspace. Insulate voids in the attic - the entire attic floor above a living space should be insulated with at least six inches of insulation, except around electrical fixtures such as recessed lights that aren't rated for contact with insulation. Damp basements and crawl spaces can become mold and mildew problems. Watch for leaks from your water heater, plumbing system and seeping rain water from the roof. Locate and maintain a clear access to your main water shut off valve. If you have a sump pump, test, clean and lubricate it.

TIP #10 -- Shut down sprinkler systems and outside faucets. Homeowners can shut down outside faucets, however weatherizing the underground sprinkler system is best performed by industry professionals who will flush the system before the cold sets in, preventing cracked pipes.

Friday, October 16, 2009

Become a Facebook-posting pro

How do you keep your business and social connections engaged with your posts? Read these tips to find out what you should be posting and how you should be managing your online content.

Before you post your listings or write about what you ate for lunch today, remember that while social networking and online interactions have the potential to turn into business opportunities, Facebook is best used as a way to connect with people on a social level.

Use the following tips to turn yourself into a Facebook posting pro.

Mix personal and business posts. Share great articles and content that your friends would find interesting. Whether it’s a new article from The New York Times on the $8,000 tax credit, or a link to a recipe to the potato salad you are making at a Labor Day party, mix it up. You can also post local events, a photo from your open house or links to videos on YouTube, for example, KW's This Month in Real Estate videos.

Keep your content fresh. Try to post at least once a day, but two or more times a day is best. This gives your friends an incentive to stay connected with you and to visit your page. Not only will your page offer great content, your contacts will continue to come back or even suggest new friends. An easy way to stay connected while on the go is by updating Facebook through your mobile or smart phone.

Join in the conversation. Engage in communication as much as possible. Comment on people’s photos, posts, notes, status updates and look for new friends regularly. Remember, whenever you comment on something it populates your home feed and your friend’s see what you’ve commented on. But, only comment if you have something worthwhile to say, not to just post your blog name or contact information.

If your content is quality, your time spent on social networking will be quality as well. Keep these tips in mind when posting and you will see increased success through your social media efforts.

Be sure to visit the Facebook Pages for KW: www.facebook.com/kellerwilliamsrealty; www.facebook.com/yourfirsthome; www.facebook.com/realestateshift; http://www.facebook.com/millionaireinvestor;and http://www.facebook.com/millionaireagent.

Wednesday, October 14, 2009

Send the right news at the right time

Do your clients know?

  • Mortgage rates for Aug. 2009 are at 5.25 percent, down from 6.5 percent the same time last year.
  • Affordability remains favorable with the median mortgage payments requiring just 16 percent of the average income.
  • Home sales are up 17 percent from July 2009, boosting the median home price for June up 3.6 percent to $181,000.
  • Get more stats plus tips for making the most out of the buyers market from mortgage industry expert, Tommy Nelms in August’s This Month in Real Estate.

    Watch it now and then send it out to your database!

Monday, October 12, 2009

Calling all social media mavens!

Between Twitter, Facebook and LinkedIn, the opportunity to find and cultivate business online has increased dramatically. So tell us: have you seen an increase in your bottom line as a result of all your tweets, posts and general online networking?

Click here to tell us!

Friday, October 9, 2009

Got Questions? Ask Gary!

Get the answers to your most challenging real estate questions. Straight from Keller Williams Realty, co-founder and chairman, Gary Keller, this is your chance to tackle the timeliest topics impacting your business today.

Read Gary’s answers to the most recent questions:

- What if a buyer who is concerned about the market says "isn't my home an investment?"
- What do you find helps people through their fear of failure?
- If I love to do marketing but don’t like to pick up the phone, shouldn't I focus on marketing?

Click here to submit your questions! Check out Gary’s resources on all things real estate on the new Agent Mountain!

Wednesday, October 7, 2009

How is a Facebook Profile different from a Page or Group?

Facebook Profiles are for personal use and are where you get “friends.” Friends can be colleagues or relatives, as well as past classmates or neighbors. For example: Mo Anderson has a Facebook Profile.

Facebook Pages are for your business and are for a long-term relationships with your customers. With a Page, anyone can opt in to be your ‘fan.’ Keller Williams Realty has a Facebook Page.
Facebook Groups are a great way to participate in discussions centered around a shared interest or activity. Most often Groups are created by experts or fans of a brand or subject, or even just for fun. For example: Keller Williams Realty is the largest real estate company of Facebook is a group.

Monday, October 5, 2009

Media spotlights Chattanooga market center’s compassionate charge

In the business of helping to make dreams of home ownership come true, the Chattanooga-East Brainerd market center expanded that mission last year to include helping a terminally ill child to have a dream come true. Working through the Make-A-Wish Foundation, associates decided to grant a full wish for a child, says Robben Mathews, team leader.

Collectively they raised funds for Nash Norris, who has been afflicted with a terminal form of spinal cancer, to visit Disney World and Sea World with his family. The under-water themed sendoff party that they held for Nash and his family tugged at the heartstrings of associates and catapulted the market center into the media spotlight. Read More.

Friday, October 2, 2009

Top 10 cities to Earn a Living

The best cities to earn a living are those that have plenty of companies doing business in high-paying, growth industries.

Combine that with a high-quality business environment, job growth, and a low cost of living and you get a select-few locations where the pay check is generous and the cost of necessities like food and housing is modest.

Here are the top 10 cities where Forbes magazine says this is the economic reality now and the conditions are likely to get even better as health care, technology, and energy draw more employees into their ranks:

1. Dallas
2. Houston
3. Minneapolis
4. Austin, Texas
5. Washington, D.C.
6. St. Louis
7. Seattle
8. Atlanta
9. Kansas City, Mo.
10. Denver

Source: Forbes, Francesca Levy (09/03/2009)

Friday, September 25, 2009

STIMULUS FUNDS GONE TO TEXAS

TEXAS (Dallas Business Journal) – The Lone Star State has brought in more than $6.5 billion of the $787 billion stimulus package so far, according to the nonprofit organization ProPublica.
Texas ranked 48th on a per-capita basis, spending an average of $269.30 per person. The federal government has spent an average of about $216 per person after allocating more than $121 billion of the stimulus funds.

Three state agencies (the Health and Human Services Commission, Texas Education Agency and the Texas Workforce Commission) have dominated spending of the nearly $3 billion already appropriated by the state.

Harris County leads the state in total spending with $569.5 million. Tarrant and Dallas counties ranked second and third, respectively.

Wednesday, September 23, 2009

RISE IN DFW HOME EQUITY PREDICTED

DALLAS-FORT WORTH (Dallas Morning News) – Prospects are improving for rising home equity in the area, according to a report from the Center for Economic and Policy Research and the National Low Income Housing Coalition.

DFW homeowners could have an average $87,110 in home equity by 2013. That is a $6,000 increase from a similar estimate made in October.
The report's equity outlook is based on purchases of homes priced at 75 percent of the median price. Researchers suggest that positive home equity will be seen in all of Texas' major home markets during the next few years.

Area homeownership and rental costs were also slightly higher than the October estimates. There is now almost no difference in the two costs within the DFW area.

Monday, September 21, 2009

CENTEX, PULTE MERGER APPROVED

DALLAS (Dallas Business Journal) – Shareholders for homebuilders Centex Corp. and Pulte Homes Inc. have approved a merger of the two companies.

Michigan-based Pulte will acquire Dallas-based Centex, according to a source who attended the shareholders' vote on Tuesday. Pulte shareholders will own 68 percent of the merged company; Centex shareholders will own 32 percent.

According to research done by the Dallas Business Journal, Centex was the largest homebuilder in North Texas in 2007, with 2,170 housing starts. The company dropped to third last year, with 881 housing starts.

Pulte Homes of Texas ranked 12th in the Dallas–Fort Worth area in 2007, with 664 North Texas housing starts. That number fell to 495 in 2008, putting it at No. 11 that year.

Friday, September 18, 2009

EVEN JOB GROWTH BIGGER IN TEXAS

Six Texas counties have made CNNMoney.com's list of the nation's top 25 best counties for job growth from 2000 to 2008. At number two, Rockwall County led Texas with 84.9 percent job growth for the eight-year period.

2. Rockwall at 84.9%
6. Fort Bend at 61.3%
14. Williamson at 53.2%
15. Collin at 52.7%
22. Hidalgo at 50.6%
24. Webb at 49.2%

Arizona's Pinal County posted the nation's highest job growth rate at 95.9 percent.

Wednesday, September 16, 2009

Affordability is Here Again!

According to the latest NAHB/Wells Fargo Housing Opportunity Index (HOI) released show nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago.
Here are additional excerpts from the HOI:

"The increase in affordability, along with the $8,000 federal tax credit for home buyers, is stimulating demand, particularly among young, first-time buyers," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "But to keep the recent upturn in home sales going into next year, Congress will need to extend the tax credit for another year and make it available to all buyers in an effort to encourage activity in the trade-up market."

Monday, September 14, 2009

DFW Homes Prices Flat in 2Q

Wednesday, August 12, 2009
By STEVE BROWN / The Dallas Morning News
If you're looking for a glimmer of hope in the Dallas-Fort Worth home market, the latest industry survey provides one. D-FW home sales prices were basically flat in the second quarter after a long string of declines, according to the National Association of Realtors' closely watched nationwide survey.

The median price of homes sold in North Texas was down just 0.2 percent from a year earlier in the Realtors' secondquarter survey released Wednesday. Nationwide, home prices fell by a record 15.6 percent during the same period. "The sharpest price declines continue to be concentrated in metros with high levels of foreclosures, including areas in California, Florida, Arizona and Nevada, where distressed homes comprise many of the transactions," Realtor economist Lawrence Yun said in the report.

The D-FW price drop, the smallest in more than a year, follows a drop of close to 5 percent in the first-quarter Realtors' report. Texas cities fared better than many others, with median home sale prices up 2.6 percent in Houston and up 11 percent in Beaumont-Port Arthur.
The Realtors' report reaffirms other recent housing industry data that suggest the North Texas home market is flattening.

"We are beginning to see some more positive trends in the housing market, which is great news," said David Brown, who heads the Dallas office of housing analyst Metrostudy Inc.
"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.

"If the current sales trend holds and inventory continues to fall through the remainder of this year, it will become clearer that we are at the bottom in the market." Other reports
Earlier this week, the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems Inc. reported that median home sales prices in North Texas were up 3 percent in July from a year ago. And through the first seven months of 2009, median single-family home sale prices through the Realtors' local Multiple Listing Service were down 1 percent from the same period of 2008.

Prices were down 3 percent for all of 2008. The D-FW area has had one of the smallest overall home price declines of any major U.S. market during the last two years. Analysts attribute the better home price performance here to the fact that North Texas didn't have a big run-up in residential values a few years ago like most other cities.

Economists anticipate that the D-FW market will be one of the first in the country to rebound.
"Yes, it appears to me that we are at the bottom of the housing market in most Texas cities at this point," said Dr. Mark Dotzour, chief economist at the Real Estate Center at Texas A&M.
The slowdown in homebuilding and very low mortgage rates have both helped the local housing market, Dotzour said. "I feel that now is the time to buy a house in most all Texas cities," he said. "Housing affordability has never been higher than it is right now.
"When the economy starts to rebound nationally, mortgage rates will surely move higher."

EXISTING-HOME PRICE CHANGES
Home prices in the Dallas-Fort Worth area were down 0.2 percent in the second quarter of 2009 compared with a record 15.6 percent nationwide decline. Median home price for each city for second quarter of 2009 and the percentage change from the same quarter of previous year.

BIGGEST INCREASES
Davenport, Iowa $113,200 30.6%
Cumberland, Md. $123,500 21.7%
Elmira, N.Y. $85,000 11.3%

LARGEST DECLINES
Fort Myers-Cape Coral, Fla. $84,000 -52.8%
Las Vegas $141,800 -39.7%
Riverside, Calif. $161,500 -39.1%
U.S. Median $174,100 -15.6%

TEXAS CITIES
Amarillo $127,300 2.2%
Austin $194,000 -0.1%
Beaumont-Port Arthur $138,600 11.0%
Corpus Christi $133,400 -7.6%
Dallas-Fort Worth $150,700 -0.2%
El Paso $131,800 -4.3%
Houston $157,400 2.6%
San Antonio $153,100 -3.2%

SOURCE: National Association of Realtors

Friday, September 11, 2009

Home Maintenance Tip

Conserve Water and Reduce Pocketbook Pressure!
You may love the forceful flow of water at your faucets, showerheads and toilets, but did you know that installing low-flow aerators could cut your annual water consumption by more than half? You can also conserve water and save money on your water bill just by adopting a few new habits:

  • While waiting for water to warm up, catch excess water in a bowl or bucket and use for houseplants or pets
  • Only run the dishwasher when it is fully loaded
  • Instead of using the in-sink garbage disposal, compost your food scraps
  • Simply cutting your shower by 2 minutes will save 1,000 gallons a year!
  • Turn off the water while you brush your teeth, shave, and while you lather up when washing your hands.

Wednesday, September 9, 2009

Seven easy steps to build your Twitter-sphere...

Use these tips to help you gain genuine Twitter followers, increase your popularity and in return, your business.


1. Tweet often and interesting content. If it looks like you’re never on, or all your tweets seem to be mini sales pitches, you will not gain Twitter followers.
2. Follow more people. There are a lot of tools to help you find people who have common interests such as Twitter Search and Find People.
3. Make your Tweets interesting. Tweet neat facts or link to interesting blogs, articles and Websites you come across.
4. Let more people know that you are on Twitter. Add a link to your feed on your email signature or link to your Website and blog.
5. Upload a profile photo or logo. There are many people who will not follow or allow followers who do not have a photo. Having a picture or logo makes you look more legitimate.
6. Contribute to your feed as a personality, not just as a business.
7. Engage in conversations on Twitter. Direct Message (D) people, @ reply people, re-tweet (RT) interesting tweets, and participate in hashtag (#) topics.

Follow Keller Williams Realty on Twitter: www.twitter.com/kwri.

Monday, September 7, 2009

Home Sales Tick Up

Last week, The National Association of REALTORS® reported that existing home sales – which include single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June.

This is third consecutive month that NAR has reported an increase in existing home sales. Lawrence Yun, NAR’s chief economist, added that “We expect a gradual uptrend in sales to continue due to tax-credit incentives and historically high affordability conditions.”

*Source: http://www.realtor.org/RMODaily.nsf/pages/News2009072301?OpenDocument

Friday, September 4, 2009

Keller Williams comes out on top

Congratulations! The Wall Street Journal / LORE Top 400* survey results were just released and once again Keller Williams Realty illustrated why we are continuing to outpace the industry. The report breaks down categories and rankings by individual agents and teams.

In 2009, Keller Williams Realty had:
Six additional associates ranked among the top 50 agents by transaction sides.
1,048 percent more transactions from the year before compared to an average increase of 31 percent for Century 21, Coldwell Banker, Prudential and REMAX combined.

Among the top 50 teams for total sides:
Keller Williams ranked second with 11 teams.
Those 11 teams had an impressive increase of 25 percent in transaction sides from the year before.

Keller Williams was the only company that posted an increase for two years in a row.

*The list is based on a survey of independently verified submissions to determine the top real estate professionals in the United States. REAL Trends states that it is the only independent study of its kind.

Wednesday, September 2, 2009

How to get tough in a tight market

During an interview with Michael Krisa host of ThatInterviewGuy.com, Eric Thomas of the Mid-Upper Cape Cod market center, shared his insights on what to do when the market gets tough.

His first piece of advice: Read SHIFT: How Top Real Estate Agents Tackle Tough Times; then he says, “Get back to the basics.”

Watch the short video clip on ThatInterviewGuy.com

Monday, August 31, 2009

Get Your Website Working for You!

Last year, 94 percent of buyers, ages 25 to 44, used the Internet to search for a home. Is your Website delivering solid information and search capabilities to meet their needs? Learn how to capture more business by improving your Website! Visit KW Connect to learn more!

Wednesday, August 26, 2009

Which listing agreement do I use?

I have a seller who wants to sell an unimproved residential lot. What listing agreement should I use?

The choice of listing agreement depends upon the likely buyer’s intended use. Since a buyer will probably use the lot for residential purposes (e.g., to build a home), the residential listing agreement (TAR form 1101) would appear to be the best choice. The listing broker could delete those matters that would apply to improvements or add a statement indicating that the property is an unimproved lot in the Special Provisions paragraph. Either of these alternatives would tend to eliminate confusion by the seller.
It should be noted that these same considerations would apply to the choice of a listing agreement if the likely intended use of a buyer of an unimproved property would be for commercial or farm and ranch purposes.

For other legal topics, visit the Legal FAQs on TexasRealtors.com.

Monday, August 24, 2009

Better manage your in-box

How many e-mails usually sit in your in-box? If your answer is more than 10, you may have a problem. Productivity experts agree that allowing messages to languish in your in-box is an extremely unproductive way to handle electronic mail. Your in-box becomes cluttered, and all the messages blend together.

Avoid this affliction by acting on every message when it appears in your in-box—reply to the sender, forward to a colleague, delete the message, or assign it to a folder. Few messages remain in the no-man's land of the in-box, allowing you to focus on the new ones that arrive.
And if you find that you can't process every new message when you check your e-mail, check it less frequently. Tell people that you open your e-mail only at certain times each day. You'll free yourself from the constant time-drain of e-mail while ensuring you act more decisively when you do pull up your in-box.

Friday, August 21, 2009

Learn how a Legal Defense Fund victory upholds Texans' property rights

Learn how a Legal Defense Fund victory upholds Texans' property rights
Listen to the latest Texas REALTOR® Update podcast and hear how the Legal Defense Fund helped a Richardson REALTOR® uphold property rights for all Texans. No matter your comfort level with technology, it’s easy to listen to Texas REALTOR® Update:
Click here to listen to Texas REALTOR® Update on your computer. If you have problems listening to Texas REALTOR® Update on your computer, check out these troubleshooting tips.
Or subscribe to Texas REALTOR® Update, so it automatically downloads to your iTunes or other audio file-management program.
Read about the topics discussed on this episode, or visit the podcast archives to listen to past episodes.

Wednesday, August 19, 2009

New "green" standard adopted

The International Code Council, which develops the building safety codes used to construct most residential and commercial buildings, approved a National Green Building Standard. The new standard provides guidance for safe and sustainable building practices for all residential construction. The standard's rating system allows builders, designers, and communities to choose the levels of high-performance green buildings that best suit their needs. Key provisions include: land conservation, rainwater collection, construction of smaller homes to conserve resources, improved indoor air quality, and homeowner education on proper maintenance and operation to maintain a home's green status.

Monday, August 17, 2009

Obama announces Homeowner Affordability and Stability Plan

President Obama this week announced his plan to help 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. The Homeowner Affordability and Stability Plan contains three main elements:

  1. Government-sponsored enterprise refinancing for responsible homeowners suffering from falling home prices
  2. Three-year $75 billion initiative to reduce monthly payments for 3-4 million at-risk homeowners
  3. Supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac

Review the details of each element in this NAR Governmental Affairs Update.

Friday, August 14, 2009

American Recovery and Reinvestment Act becomes law, contains important real estate provisions

The American Recovery and Reinvestment Act contains important housing provisions, which were lobbied for by the leadership of the Texas Association of REALTORS® during a recent visit to Washington, D.C. Some of these provisions include:
  • Homebuyer tax credit: The bill provides for an $8,000 tax credit for first-time homebuyers who purchase a principal residence between Jan. 1, 2009, and Dec. 1, 2009. The credit does not require repayment.
  • FHA, Fannie Mae, and Freddie Mac loan limits: The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans.
  • Neighborhood stabilization: The bill provides $2 billion in additional funding for the Neighborhood Stabilization Program, which provides grants to states and localities to address problems that can be created when whole neighborhoods are decimated by foreclosures.
  • Commercial real estate: Commercial real estate is affected primarily through provisions of the bill focused on green building and energy efficiency as well as business tax incentives. HR 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy-efficiency upgrades.


Visit Realtor.org for more details about what this act means to real estate

Monday, July 13, 2009

Make that Call!!

So I got an email from the Texas A&M Real Estate Center...as I was reading the newsletter, I noticed an article titled, " ON THE ROAD AGAIN . . . AND AGAIN . . . AND AGAIN." The article stated that, "Drivers in Dallas–Fort Worth–Arlington were stuck in traffic 140.7 million hours in 2007, ranking it fifth in the United States when it comes to time lost because of travel delays." Can you believe that?! 140.7 MILLION HOURS. With so much time spent in gridlock, this is a great time for you to be scrolling through your cell phone & calling past clients. Yup, do your FORD calls & stay in contact with your sphere. This practice is not something that will take up your time...instead, it is a way to make use of the useless time we spend in traffic. So instead of cutting off that car, make that call!

Please visit the link below for the full article.
http://recenter.tamu.edu/

Thursday, July 9, 2009

Family Circle magazine labels Rockwall a family-friendly city

10:35 PM CDT on Wednesday, July 1, 2009
By RICHARD ABSHIRE / The Dallas Morning News
rabshire@dallasnews.com

Rockwall is the best family town in Texas, one of the 10 best in America. Or so says the upcoming issue of Family Circle magazine.

In editions that will hit newsstands Tuesday, the magazine lists Rockwall and nine other U.S. cities as perfect places to call home, combining affordable housing, good neighbors, green spaces and exceptional public school systems.

The list isn't exactly scientific – it was compiled by magazine staffers and two outside firms using data in a handful of demographics categories. And the 10 cities aren't actually ranked, although Rockwall is listed first in the list.

None of that matters to Rockwall officials, who see the honor as a chance to spread word about the town to the magazine's 21 million readers.

"I'm thrilled," said Rockwall City Manager Julie Couch. "We actually knew we were in the running, so I'm thrilled that they kept us in there."

Couch said that the magazine focused heavily on schools and that she believed the Rockwall school district played a big role in winning the award.

Family Circle senior editor Paula Chin said the survey, in its third year, is one of the magazine's most popular features. She said the focus was on schools this year and only the highest-rated were considered.

"We're all about family-friendly towns," she said.

Thursday, June 25, 2009

TEXAS RANKS FIRST FOR BUSINESS

TEXAS (Austin Business Journal) – Texas stands out as the top state for business, according to Directorship magazine.

Texas "has a pro-business tax climate that ranks third, a low cost of living, a relatively solid economy and a litigation environment that ranks tenth on our list," the magazine reported. "Texas also ranks first in the number of Fortune 500 companies located there."

Major corporate relocations and expansions such as Comerica's move to Dallas and Caterpillar's new plant in Seguin were highlighted as reasons for Texas' ranking.

Directorship evaluated states' overall economies, tax climates, cost of living and education to determine rankings

Wednesday, June 24, 2009

Home Maintenance Tip -

Your washer and dryer are designed to be simple to maintain, and there are a few things you can do that will prolong the life of the machines and reduce service calls.
Avoid overloading the washer - an overloaded washer strains the motor and transmission, shortening their lives.
Once a month, remove and clean intake screens where water-supply hoses enter the washing machine, and check water-supply hoses for splits, cracks, or bulges.
Once a year, disconnect your dryer from the vent hose and wall, and thoroughly vacuum and clean the lint pipe to improve your drying efficiency and remove potentially flammable lint buildup.
Once a year disconnect the washer and dryer to clean underneath and check for any small leaks or hidden maintenance problems.

Monday, June 22, 2009

TEXAS STILL BUYER'S MARKET

TEXAS (Real Estate Center, The Herald-Zeitung) – Despite rising foreclosure rates in the United States (now nearly 32 percent), the rate in Texas is down 14 percent since last year.

Jim Gaines, research economist with the Real Estate Center at Texas A&M University, said the Texas housing market is doing very well compared with the rest of the nation.

"We're being compared to large, high-growth states like Florida, New York, California and Illinois, and our housing market is in much better shape. This is partly because about four or five years ago, we didn't have the big run-up in prices that many of those states had," Gaines said.

Texas also benefits from a lack of overbuilding, which often creates an excess of inventory to drive down home prices.

Affordable homes, low mortgage and interest rates, and first-time homebuyer tax credits also make this an ideal time to buy a home, according to Gaines.

Wednesday, June 17, 2009

TEXAS QUICK TO BOUNCE BACK FROM RECESSION, FORBES SAYS

WASHINGTON (Forbes) – Several Texas cities are poised for a quick recovery from the national recession, according to Forbes.

Austin–Round Rock ranked first on the magazine’s recent list of ten cities most likely to bounce back quickly.

Meanwhile, San Antonio ranked fifth, Dallas–Fort Worth–Arlington seventh and McAllen-Edinburg-Mission ninth.

To compile its list, Forbes looked at estimates from Moody's Economy.com of the projected gross domestic product of metropolitan areas across the United States, as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders.

Forbes also put together a list of ten worst cities for recession recovery. No Texas cities made that list.

Monday, June 15, 2009

This Economy Wants to Recover

In his recent Croesus Chronicles for Forbes, Robert Lenzner outlined several economic points:

"The bear market ended March 9, and the end of the worst recession since the 1930s, or is it the mid 1970s, is plainly in sight."

"About $120 billion has been pulled out of global market funds since mid-March;"

'Yet money market assets are still equal to 50% of the S&P 500 market cap...Since 1990, money market assets have averaged about 20% of the S&P 500 market cap. This is a huge potential buying power.

While no one is certain that a new bull market has begun, we can point to some telling signs: "Stocks broke higher on June 1 even though the yield on 30-yeard Treasuries climbed back above 4.5%...This is what the long bond yielded in August of 2008. Just before the meltdown in credit markets during the fall of 2008."

"Credit markets are healing, as spreads have fallen considerably."

"Corporations are able to raise tens of billions in the short-term debt market."

"The yield curve, the difference in yield between short-term and long-term securities, usually widens in advance of an economic recovery, and it has done so."

"Stocks also rose spectacularly despite the bankruptcy of General Motors and the continuing loss of jobs in the automobile industry. Bad news doesn't seem to be rocking the market like it did a few months ago."

"Earnings yields on equities still remain comfortably above the yield on 10-year Treasuries and should have the ability to absorb higher interest rates driven by economic recovery."

'The US manufacturing institute for Supply Management index rose to 42.8 in May, which usually signals that gross domestic is expanding rather the faltering."

'Housing, the genesis of the crisis, is showing signs of stabilization and even amelioration. Pending sales were up 6.7% in April, even if prices are still in the tank.'

'Even automobile sales improved in May to an annualized 10 million vehicle level.'

'There has also been a mini-bull market going on in commodities that has been mightier than the one for stocks. This outperformance by commodities is another leading indicator of an economy about to turn the corner.'

And lastly, "Another factor that helps the Dow is the replacement of two stocks with no earning--General Motors and Citigroup--with Travelers and Cisco."

"Looks to Croesus that this market wants to rise, deflation or inflation both be damned!"

Friday, June 12, 2009

Forecasting the Floor

While experts run the gamut in their outlook for real estate, sound business
practices supercede futile attempts to time the market.
Are we there yet?


With the summer vacation season in full swing, most of us in real estate are
asking our own version of this signature refrain of the family road trip.
In our case, it’s a question of, ‘Have we hit the floor?’
When can we start looking forward to shrinking inventories, stable prices and an
upward trend in the number of transactions?


While much of the media is still charging ahead with dire forecasts for real estate,
a recent spate of experts are claiming that a housing-market recovery is imminent.
Even though this is the news that we’ve been waiting to hear, we need to take it
with a grain of salt. As always, the real story is much more complicated and lies
somewhere within the spectrum of the doom and gloom and the upbeat projections.
Many of you have recently asked me for my thoughts on a recent Wall Street
Journal commentary entitled, “The Housing Crisis is Over” by Cyril Moulle-Berteaux,
managing partner of Traxis Partners LP, a hedge fund firm based in New York. When I
read the claim in the article that, “It is very likely that April 2008 will mark the bottom of
the U.S. housing market. Yes, the housing market is bottoming right now,” I suspected
that there might be a need to look beneath the surface of his claims.


Noting that new home sales are down 63 percent and housing starts have fallen by
more than 50 percent from their July 2005 peak; and that housing starts in 2008 will hit
their lowest level ever, Moulle-Berteaux emphasized that the same factor that sparked the
housing decline is soon to reverse it: affordability.


He explained that “by 2005 and 2006, the average monthly income required to
service a conforming mortgage on the average home purchased had reached 25 percent.
For first-time homebuyers that figure had climbed to 37 percent.”
But since then, according to Moulle-Berteaux, “home prices have fallen 10
percent to 15 percent, while incomes have kept growing (albeit more slowly recently) and
interest rates have come down 70 basis points from their highs.” Moulle-Berteaux’s
conclusion: “… homes on average are back to being as affordable as during the best of
times in the 1990s – down to 19 percent of income for the average home buyer and 31
percent of income for the first-time home buyer.”


Affordability in March 2008, is actually at 19 percent, back to where it was in
early 2004, but one of the key factors affecting affordability in the current market is low
interest rates. If inflation increases, in the near future, interest rates could likely go up,
which could counter the current direction in affordability.


Another factor that Moulle-Berteaux points to as a sign of recovery is the recent
decline in new home inventories – from a high of 598,000 in July 2006, to 482,000 at the
end of March 2008. Conceding that the current new- home inventory is still at a 25-year
high, and equivalent to an 11- month supply, he argues that current levels are similar to
those seen at the end of previous housing market downturns in 1974, 1982 and 1991,
which in all three instances were followed by a slowing in home-price declines within the
next six months. As new home construction begins to undershoot new home sales, which
Moulle-Berteaux anticipates is soon to occur at a rate of 50,000 to 100,000 annually, he

contends that inventories will drop to 400,000 – or a seven month’s supply – by the end
of 2008.


While he makes a seemingly compelling argument, we should be careful not to
accept such analyses at face value. Moulle-Berteaux does not always paint the entire
picture and omits critical informa tion, such as the fact that existing home inventories –
which account for a far greater portion of the housing market – are at their highest levels
since September 1981.


That being said, Moulle-Berteaux is clearly not alone in his assertions that the
housing market is showing signs of a rebound. Among those noting positive trends is
Professor Karl Case of Wellesley College in Wellesley, Mass. Case looked at the past
three housing downturns in 1991, 1982 and 1975, and noticed that the market started to
clear when housing starts dropped below the 1 million mark – as they did in March of
2008.


At the same time, the National Association of REALTORS® sees signs of
recovery for reasons that include:
· Fannie Mae and Freddie Mac have announced plans to increase funds available
for home loans.
· The use of FHA loans is on the rise.
· Pending home sales are on the rise in areas where affordability has increased.


In a further effort to stimulate the housing market, Fannie Mae announced that
starting June 1, 2008, it will accept down payments as low as 3 percent for single-family,
primary residences on loans it purchases.


But despite its initiatives to jumpstart real estate, Fannie Mae is not anticipating a
housing recovery to take hold until 2010. Addressing business journalists this Spring,
Daniel Mudd, president and chief executive of Fannie May said, “Forecasting the bottom
of the housing slump is a tricky business, with the many conflicting predictions by
economists as proof.” We couldn’t agree more.


Clearly, the housing market is a complicated business that does not rise and fall
based on one or two factors. And even though real estate is cyclical, we need to avoid the
expectation that prescribed patterns or trends are necessarily at play. The current
downturn is quite different from the housing recessions of 1991, 1982 and 1975 – due
primarily to the tightening of the credit markets following the fallout of the sub-prime
loan market, as well as the historically high rates of foreclosures. A striking similarity,
however, between the current housing market and previous downturns in the housing
cycle is the dramatic increase in oil prices.


It’s perfectly understandable to want to find the definitive forecast for residential
real estate and to seek a return to the heydays of housing, but we have little to gain in
latching on to any particular forecast or trying to time the market. We have everything to
gain, however, by managing expenses in order to survive, doing whatever it takes to
generate the leads that we need to thrive, seizing opportunities to build our share of the
current market, and emphasizing to clients who are trying to sort through many
conflicting messages that real estate is essentially a local business.
What’s happening within your local markets is all that’s relevant.

Monday, June 8, 2009

Are We in a Recession?

NAR recently released their observations on the economy and the housing
market. Lawrence Yun, Chief Economist of NAR stated that we are not in a
recession and speculated that home prices in certain areas such as Miami, Las
Vegas and Phoenix could go up as much as 50% over the next five years.

Here are our thoughts on this matter:
According to the Bureau of Economic Analysis, GDP increased at an annual rate
of 0.6% in the first quarter of 2008. GDP is estimated quarterly. This is an
"advance" estimate and subject to further revision. A more complete estimate
will be released at the end of May.

According to Bernard Baumohl, 3-3.5% annual growth rate is considered the
pace the economy has to grow for people to feel prosperous. GDP figures are
released quarterly and lag behind more current monthly indicators. Even though
GDP figures are a little dated, historically, GDP growth rates have proven to be
quite different than what the market expects.

According to BEA, the last quarter’s increase in GDP is attributed to:
• Personal consumption expenditures for services
• Private inventory investment
• Exports of goods and services
• Government spending

This offsets the negative contributions due to:
• Residential fixed investment (construction of homes, etc)
• Personal consumption expenditures for durable goods

So technically speaking (according to the advance data estimates), we are NOT
in a recession. If the upcoming revision of the GDP shows a decline, we still have
to have two consecutive quarterly declines in GDP for a recession. Regarding
NAR’s forecast for home prices, our previous research indicates NAR has been
overly optimistic with their predictions in the past. We suspect that this may be
true in this instance as well.

Even if we are not technically in a recession, the market seems to think
otherwise. A survey of 52 economists, conducted in April found that 67% of them
believe we ARE in a recession. On April 30th, an NBC/WSJ consumer poll found
that 81% of Americans agree. The pros and public alike – believe we are in a
recession. Wisdom of the crowd, perception is reality, what you see is what you
get. If it’s true for you, it’s true – any way you want to posture it. We’re saying that
if it walks like one and talks like one, it is one, and we might need to face that
reality.

Thursday, June 4, 2009

It May Be Time to Think About Buying a House

By RON LIEBER
Published: December 5, 2008 in the NY Times

Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.

Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.

Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.
That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.
Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.

If you’re hoping for a recovery in the housing market, you ought to be cheering on the first-time home buyers. When they purchase homes, their sellers are free to move on or move up, stimulating further sales.

But if you are a potential first-time buyer yourself, or lending or giving the down payment to one, you are probably as frightened as you are tempted by all the “For Sale” signs that have become “On Sale” signs. So let’s quickly review some of the still-grim pricing data in certain areas — and consider the reasoning offered up by first-time buyers who have forged ahead anyhow.

As is always the case with real estate, much depends on location. One study, “The Changing Prospects for Building Home Equity,” tries to predict where today’s first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines. The verdict was that buyers in 33 of the markets could see a decline by 2012, including potential six-figure drops on an average home in the New York City, Los Angeles, San Francisco and Seattle metropolitan areas.

This is obviously scary. (I’ve linked to the study, a joint effort of the Center for Economic and Policy Research and the National Low Income Housing Coalition, from the version of this article at nytimes.com/yourmoney.) It’s worth noting, however, that these predictions came before the government made its most recent move to reduce borrowing costs.

Also, the price projections in the study are based, in part, on the fact that the ratio of purchase prices to annual rents is still higher in many areas than the historical average, which is roughly 15 times rents. While past figures may well have some predictive value, I have never been convinced that first-time buyers compare a home that they could own and one that they would rent in purely or even primarily economic terms.

When Jaime and Michael Proman moved this fall to Minneapolis, his hometown, from New York City, they craved a different sort of life after two years together in a 450-square-foot studio apartment. “We didn’t want a sterile apartment feel,” said Mr. Proman, who is 28 (his wife is 26). “We wanted something that was permanent and very much a reflection of us.”
The fact is, in many parts of the country there are few if any attractive rentals for people looking to put down roots and enjoy the sort of amenities they may spot on cable television home improvement shows. Comparing a rental with a place that you may own seems almost pointless in these situations, especially for those who are now grown up enough to want to make their own decisions about décor without consulting the landlord.

Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.

You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.

John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it’s free) at annualcreditreport.com and dispute errors.

While no one can easily predict the likelihood of losing a job, Friday’s startling unemployment figures suggest the need for caution if you think you might be vulnerable. A. C. Panella, who teaches communications at Pasadena City College in California, waited until she had a tenure-track job before buying a home in the Highland Park section of Los Angeles with her partner, Amy Goldman, a lawyer for a nonprofit organization. “We could afford the mortgage payment on one salary, were something to come up,” Ms. Panella, 31, said. “It’s really about being able to stay within our means.”

For many first-time home buyers, that philosophy stretches to the down payment, too. Ms. Panella and her partner put down 20 percent when they bought their home in September, as did the Promans when they bought their home in the Lowry Hill neighborhood of Minneapolis.
Alison Nowak, 29, put just 3 percent down on a Federal Housing Administration-backed loan last month when she and her partner, Lacey Mamak, bought a $149,900, 800-square-foot home several miles south of where the Promans live. “Anything that is an opportunity also has a bit of risk,” she said. Her house was in foreclosure before a plumber bought it and fixed it up. “One way we mitigated it was that we bought a really tiny house in a very good neighborhood.”
One other strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.

Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. “If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be,” Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.
Finally, allow yourself to consider how it would feel if you bought and then prices dropped another 10 or 15 percent. It might not bother you if you plan to stick around. Plenty of people seem to be making a longer commitment to their homes. According to a survey that the National Association of Realtors released last month, typical first-time buyers plan to stay in their home 10 years, up from 7 last year.

Perhaps people are more aware that they will not be able to build equity as rapidly as others did in the real estate boom. Or they simply have more confidence in hard, hometown assets now than in other markets.

“We wouldn’t let another decline bother us,” said Michael Proman. “You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now.”

Saturday, May 16, 2009

Add Instant Charm

Source: My Home Ideas/www.MyHomeIdeas.com
Transform your home into a quaint cottage with these instant updates.

Add a Picket Fence
The big idea: Frame your cottage by installing a picket fence around your lawn. Anchor posts with bright flowers for a pop of color, or plant a climbing vine that spills over the top.
Notice the details: Pickets come in a variety of shapes and sizes. Four feet is a standard height, and the tops can sit side by side or form a gently sloping pattern.
Go Dutch
The big idea: Say hello to your neighbors--and furry friends--with a Dutch door. The swinging upper sash invites cool breezes and natural light and adds a casual and friendly feel to any entryway or kitchen.
Notice the details: Original to Netherland farmhouses, a Dutch door is divided horizontally, so the top and bottom open independently of each other. Closing the lower part creates a gate, keeping small children and pets contained.
Dress Up Your Porch
The big idea: Create a welcoming outdoor room by transforming a porch into extra living space. Approach the decorating as you do inside: Combine comfortable furniture (weather-resistant works best) and eye-catching yet durable accessories for a space that invites lounging.
Notice the details: Explore vintage shops for colorful accents, like an antique birdbath turned into an urn for flowers, to blend with outdoor fabric.
Install Beaded Board
The big idea: Cover plain walls with beaded board to add a layer of texture and cottage character. Named for the thin, rounded "bead" that separates each wooden strip, beaded board is a classic choice for traditional paneling or wainscoting and creates a time-honored look.
Notice the details: Use beaded board on a ceiling to visually lengthen or widen a space. It also camouflages damaged walls and covers up unsightly popcorn ceilings.
Install a Farmhouse Sink
The big idea: No cottage is complete without a farmhouse, or apron-front, sink. Because of its depth and wide base, the style is ideal for fitting cookie sheets and family dinner-size pots and pans.
Notice the details: A two-handled faucet that's mounted on top, like this vintage bridge-style model, swings out of the way and complements the old feel of the sink.
Paint a Wooden Floor
The big idea: Paint an overscale pattern on the floor for high drama. Whether you choose a bold, geometric design or solid wash of color, a painted floor makes a big impression.
Notice the details: Durable porch paint and a polyurethane topcoat allow a floor to withstand foot traffic. If you prefer a worn look, skip the topcoat and use latex paint that will chip and scratch naturally.
Open Up Your Shelves
The big idea: Update basic or stock kitchen cabinets by removing the doors to show off your favorite collections. Open shelves not only keep items within easy reach but they also make a decorative statements out of cookbooks and appliances.
Notice the details: Add architectural interest by applying beaded-board paneling along your shelves' back wall.
Plant a Window Box
The big idea: Hang window boxes on the front of your cottage for a romantic look. Overflowing with lush annuals and punctuated with various textures and bursts of seasonal color, these containers will seamlessly blend your house and garden and instantly boost curb appeal.
Notice the details: Proper scale is essential when adding window boxes. The planter should be the same width as the window to avoid a wimpy, barely there look.

Thursday, May 14, 2009

Did I Ask You?!



Too funny to pass up! Take some tips from this guy on how NOT to do business.

Monday, May 11, 2009

10 Great Backyard Ideas

Source: My Home Ideas/www.MyHomeIdeas.com

Finished in a weekend or less, these fun, easy projects will help transform your backyard into a personal oasis.
Simple Flagstone Path

A mortarless flagstone path is a practically foolproof project.

"It's not very technical and doesn't require any power tools," says garden designer Tom Piergrossi. "Still, there's enough artistry involved to make it satisfying."


Party Umbrella

Dress up some lanterns with ribbon, add simple fabric panels to a plain umbrella, and you've created the perfect setting for a romantic dinner alfresco.


Butterfly Buffet

Fill your garden with nectar-rich flowering plants, and monarchs and other winged beauties will drop by regularly.
This 8- x 10-foot butterfly garden uses only long-growing perennials for years of easy of care.

Backyard Bocce
For after-dinner fun with friends, make like a Roman and roll bocce balls toward a target pallino.
Long familiar in places like California's Napa Valley, bocce is appearing in backyards across the West.


Storage Bench
A coiled hose is a necessary evil in a garden -- you need one, but when it's not in use, who wants to see it?
Instead, conceal one or two hoses in this handsome bench built from common 1 x 6 boards.

3 Easy Pots
Beautiful perennials can thrive for years in a single container.
Grow just one, pair companion plants, or have fun mixing a variety of complementary colors and textures.
Decorative Bricks
You can make a charming little patio like this in just one weekend.

Tuck it into a border or garden corner, where you can linger with a Sunday morning latte or an evening glass of wine.
Planter Fountain
In this simple homemade fountain, an azalea container supports a strawberry pot and hides a small water pump.
A low terra-cotta bowl forms the base and catches falling water.
Build a Beach
If distance discourages regular visits to the beach, try turning a corner of your yard into a quirky personal seashore like this one in Sunset's test garden in Menlo Park, California.



Night Lights

In his backyard ramada, artist Jeff Zischke houses candles in antique carriage lamps and ordinary mason jars.
"That flickering glow just draws people in like moths."