Provided By RECON
When it comes to home price appreciation, Texas is standing strong, said Real Estate Center Chief Economist Dr. Mark Dotzour.
Dotzour was responding to the Federal Housing Finance Agency's (FHFA) second quarter 2010 home price index, which ranked Texas third in the nation in home price appreciation for the year ending June 30, 2010.
FHFA reported a 1.43 percent increase in Texas home prices during that period versus 1.6 percent nationally.
"The strong price trends in Texas are because we didn't have a price bubble in the previous decade," Dotzour said. "For several years, Texans were asking why their homes were increasing only 3 to 5 percent per year, when Arizona was going up 30 percent."
In addition, Dotzour said the credit crisis virtually ended new home construction lending all over the country, abruptly shutting off the pipeline of new supply in 2008 and reducing any chance of heavy overbuilding in the single-family market.
Research Economist Dr. Jim Gaines noted that Texas was one of only ten states that reported increases in home prices during the past year, and it was one of only five states where prices had more than a 15 percent increase over the past five years.
Prices in Texas increased by 15.88 percent since 2005, landing it fourth on FHFA's ranking of states based on five-year price appreciation.
"What that means is that Texas home values fared better than all of the high-appreciation states over the five-year period that included the recession," Gaines said.
Among Metropolitan Statistical Areas (MSAs), Amarillo came out smelling like a yellow rose. It was the only Texas MSA to land on FHFA's list of 20 MSAs with the highest rates of home price appreciation.
Amarillo ranked 16th with a one-year price increase of 0.42 percent.
FHFA's latest home price index is available online.
If you are looking to sell your home, and want it priced right, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, August 30, 2010
Friday, August 27, 2010
Don't Let Termites Eat Away the Sale Of Your Home
Written By Phoebe Chongchua
Provided By Realty Times
You're selling your home and it comes time to get that dreaded termite inspection. It's the Wood Destroying Organism (WDO) inspection that homeowners fear can eat away at the price of a home or ruin the entire deal--but it doesn't have to.
There are a few signs that may indicate there might be an infestation. Some states are more likely to have heavy termite activity such as those in a "hot zone" such as California, Texas, Mississippi, Alabama, Louisiana, Georgia, South Carolina, Florida, and Hawaii. While these areas have the highest level of activity, termites can be found nearly anywhere and the varieties of the insects differ depending on the area and climate.
According to TermiteInstitute.com, "When conditions like cracks in the foundation or plumbing leaks are present; the possibility of a hidden wood-destroying infestation exists. Buyers should pay particular attention to these potentially hazardous conditions outlined in the WDO inspection report."
Many homeowners don't think about the possibility of having termites until they're getting ready to sell their home. Unfortunately, a history of termite issues can eat away at the sales price. Being prepared and understanding what to expect from an inspection is not only helpful but could help ensure a better price and smoother home sale.
TermiteInstitute.com has a lot of information that helps clarify the type of termites found in various locations. The site also helps inform and educate people about termite warning signs, treatment, and even the biology and lifecycle of these pests. I found the site's top questions and answers about termites to be very interesting. Here's what you should know about termites.
If my neighbor's home is infested; will mine be attacked next? TermiteInstitute.com says not necessarily. However, the risk is, of course, high. Preventive treatment is recommended.
How are homes treated for termites? The methods vary depending on the severity and the professional company that you choose but here's a look at some modern treatments.
Termite bait systems can be set up, however, this requires termites to find the bait stations, eat the poisonous feed, and then transfer it to the colony. It can take up to a year to be fully effective.
The site says that liquid termite treatment is known as the new "undetectable" or "non-repellent" technology. "It works well with subterranean termites, which comprise about 90 percent of the infestations in American households." This method is done by a professional applying the undetectable liquid to the soil and around the home as well as critical points in the structure where termites are likely to invade.
Since termites can't detect the liquid material, they pass through the treated soil causing termite mortality. "However, before termites die, they can have an opportunity to return to the colony and transfer the material to others in the nest," according to TermiteInstitute.com.
Will my homeowners' insurance pay for treatment? It's not likely. Although, in some areas of Louisiana some insurance companies have covered termite treatments for those structures that suffered hurricane damage.
While termites are annoying and can certainly eat away at your sale price, if you don't take care of the infestation and damage, they're not harmful to humans. In other words they feed on wood, not people. But they can severely damage a home so it's best to know right away whether you have an infestation and what your options are to resolve the problem. It could save you money and frustration when it comes time to close the sale on your house.
Are you a first time home seller? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Realty Times
You're selling your home and it comes time to get that dreaded termite inspection. It's the Wood Destroying Organism (WDO) inspection that homeowners fear can eat away at the price of a home or ruin the entire deal--but it doesn't have to.
There are a few signs that may indicate there might be an infestation. Some states are more likely to have heavy termite activity such as those in a "hot zone" such as California, Texas, Mississippi, Alabama, Louisiana, Georgia, South Carolina, Florida, and Hawaii. While these areas have the highest level of activity, termites can be found nearly anywhere and the varieties of the insects differ depending on the area and climate.
According to TermiteInstitute.com, "When conditions like cracks in the foundation or plumbing leaks are present; the possibility of a hidden wood-destroying infestation exists. Buyers should pay particular attention to these potentially hazardous conditions outlined in the WDO inspection report."
Many homeowners don't think about the possibility of having termites until they're getting ready to sell their home. Unfortunately, a history of termite issues can eat away at the sales price. Being prepared and understanding what to expect from an inspection is not only helpful but could help ensure a better price and smoother home sale.
TermiteInstitute.com has a lot of information that helps clarify the type of termites found in various locations. The site also helps inform and educate people about termite warning signs, treatment, and even the biology and lifecycle of these pests. I found the site's top questions and answers about termites to be very interesting. Here's what you should know about termites.
If my neighbor's home is infested; will mine be attacked next? TermiteInstitute.com says not necessarily. However, the risk is, of course, high. Preventive treatment is recommended.
How are homes treated for termites? The methods vary depending on the severity and the professional company that you choose but here's a look at some modern treatments.
Termite bait systems can be set up, however, this requires termites to find the bait stations, eat the poisonous feed, and then transfer it to the colony. It can take up to a year to be fully effective.
The site says that liquid termite treatment is known as the new "undetectable" or "non-repellent" technology. "It works well with subterranean termites, which comprise about 90 percent of the infestations in American households." This method is done by a professional applying the undetectable liquid to the soil and around the home as well as critical points in the structure where termites are likely to invade.
Since termites can't detect the liquid material, they pass through the treated soil causing termite mortality. "However, before termites die, they can have an opportunity to return to the colony and transfer the material to others in the nest," according to TermiteInstitute.com.
Will my homeowners' insurance pay for treatment? It's not likely. Although, in some areas of Louisiana some insurance companies have covered termite treatments for those structures that suffered hurricane damage.
While termites are annoying and can certainly eat away at your sale price, if you don't take care of the infestation and damage, they're not harmful to humans. In other words they feed on wood, not people. But they can severely damage a home so it's best to know right away whether you have an infestation and what your options are to resolve the problem. It could save you money and frustration when it comes time to close the sale on your house.
Are you a first time home seller? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, August 25, 2010
Top 10 Do It Yourself Home Improvement Mistakes
Provided By About.com
Every home improvement project or fixer rehab has its ups and downs, and there are plenty of mistakes to go around. Nobody is immune. But avoiding costly mistakes involves more than memorizing catchy-but-important phrases such as "Measure Twice, Cut Once," or "Lefty-Loosey, Righty-Tighty."
One crucial trick: You may learn from your own mistakes, but it’s better to learn from the mistakes of others.
1) Buying Too High or the Wrong Location
Sometimes, do-it-yourselfers (DIYers) get stung before they ever get moving on a remodel. It happens primarily for two reasons. Because they paid too much or they bought a house in the wrong neighborhood -- slammed up against the freeway, next to railroad tracks or that lone single-family nestled in a row of commercial.
You can avoid both these problems by looking at comparable sales for the neighborhood before you buy and asking about the drawbacks of the location. If you don't want to live under a flight path, the chances are a new buyer won't either. Remember, the best time to think about selling is when you buy. Because the most beautiful remodel isn't going to pay back in spades if your property backs up to the city dump.
2) Not Researching Code and Obtaining a Permit
Many DIYers shy away from obtaining permits because they worry about the expense or think they don't need a permit. Some cities issue permits based on political reasons, and some may appear unnecessary, but get a permit anyway, because it's against the law if you refuse to comply and it's required.
Here are more reasons:
•Inspectors will help to ensure the job is done correctly and to code.
•Many buyers don't want to buy a home that has had work done without a permit.
•If your neighbor reports you to the city and an inspector discovers you have completed work without a permit, you might be required to tear it apart and start over.
3) Failure to Prepare a Written Work Plan
Overly zealous DIYers often think it will take less time to complete a job than is necessary. Prepare a calendar, day-by-day, outlining each portion of your rehab and how many hours it will take to complete. This will keep you on a tight schedule and give you a realistic time frame from start to finish.
For example, a tiling job cannot be completed in one day.
•First, the mastic is applied, tiles are cut and laid. The area needs to cure and dry at least 24 hours.
•After the tiles are set, you will grout.
•You still need to wait another day to walk on it.
4) Under Budgeting
The adage is figure your cost and triple it. But that's not really necessary. Itemize every scrap of material in your estimates, including mundane items such as the cost of nails, staples, fiberglass tape or joint compound. They all add up. Then account for at least a 15% overage of materials for waste. Throw in another 30% for price increases, especially if you're not buying all your materials at once.
5) Tackling Jobs for Which You are Unqualified
If you're afraid of heights or unsteady in high places, don't install a roof. Life is short and then you die. Hire somebody else to do it. Before you tackle a job, think about the job from its inception all the way through to its completion. You don't want to reach the halfway mark and discover you can't finish.
Some projects require more than one person. It's hard to hang drywall on a ceiling by yourself, even with a deadman prop. Pay attention to the weight you lift; it may wreak havoc on your back or throw you off balance.
6) Not Planning for the Unexpected
You have no idea when you tear open a wall what you will find. For example, you could find termites or beetles. A pest infestation will require eradication and / or structural repair. You may discover wiring that needs to be replaced, pipes that need to be rerouted or moisture problems that have rotted away joists or sill plates. Pad your budget and allow yourself a bit of flexibility in your work schedule to accommodate these not-so-nice surprises.
7) Waiving a Home Inspection
Always, always, always get a home inspection when you buy. And hire a qualified and accredited individual to perform the inspection -- not your Uncle Joe or your buddy contractor, get a real inspector. Be there for the inspection and ask questions. Pay close attention to safety issues. Be an informed buyer.
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue. There is a difference.
8) Using the Wrong Tools
When it comes to tools, you can't go wrong by buying professional tools that are made to perform specific functions. While you can get by using a drywall gun to screw deck boards to a joist, you can't use a hacksaw to make precise miter cuts with any accuracy or a 9-volt cordless drill to drive six-inch screws through a beam.
Practice safety.
•Wear goggles when using a power saw.
•Don't stand on the top rung of a ladder.
•Hit the main breaker when working with electricity.
9) Buying Cheap Material
Don't skimp. You can buy ceramic tile for 50 cents a square foot, but it will probably crack. Buyers will notice if you install quarter-inch granite on counters or buy plastic baseboards. You want the quality of your work to shine throughout the house.
If you shop carefully and negotiate prices, you can purchase brand-name merchandise for less. Then you can advertise those manufacturer names in your marketing materials, and buyers will never know how much you paid. Better yet, they won't be calling you after escrow closes to complain that your new dishwasher just dumped water all over the floor.
10) Under Estimating the Resale Value
DIYers like to use a rule of thumb that says they can sell a house for two to three times more than the cost of its improvements, plus its acquisition price. That formula doesn't work all the time. It's far wiser to check the comparable sales for similar homes in the neighborhood to determine if your improvements are in line with other homes in that area. You don't want to over-improve.
Are you selling your home and need great advice? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Every home improvement project or fixer rehab has its ups and downs, and there are plenty of mistakes to go around. Nobody is immune. But avoiding costly mistakes involves more than memorizing catchy-but-important phrases such as "Measure Twice, Cut Once," or "Lefty-Loosey, Righty-Tighty."
One crucial trick: You may learn from your own mistakes, but it’s better to learn from the mistakes of others.
1) Buying Too High or the Wrong Location
Sometimes, do-it-yourselfers (DIYers) get stung before they ever get moving on a remodel. It happens primarily for two reasons. Because they paid too much or they bought a house in the wrong neighborhood -- slammed up against the freeway, next to railroad tracks or that lone single-family nestled in a row of commercial.
You can avoid both these problems by looking at comparable sales for the neighborhood before you buy and asking about the drawbacks of the location. If you don't want to live under a flight path, the chances are a new buyer won't either. Remember, the best time to think about selling is when you buy. Because the most beautiful remodel isn't going to pay back in spades if your property backs up to the city dump.
2) Not Researching Code and Obtaining a Permit
Many DIYers shy away from obtaining permits because they worry about the expense or think they don't need a permit. Some cities issue permits based on political reasons, and some may appear unnecessary, but get a permit anyway, because it's against the law if you refuse to comply and it's required.
Here are more reasons:
•Inspectors will help to ensure the job is done correctly and to code.
•Many buyers don't want to buy a home that has had work done without a permit.
•If your neighbor reports you to the city and an inspector discovers you have completed work without a permit, you might be required to tear it apart and start over.
3) Failure to Prepare a Written Work Plan
Overly zealous DIYers often think it will take less time to complete a job than is necessary. Prepare a calendar, day-by-day, outlining each portion of your rehab and how many hours it will take to complete. This will keep you on a tight schedule and give you a realistic time frame from start to finish.
For example, a tiling job cannot be completed in one day.
•First, the mastic is applied, tiles are cut and laid. The area needs to cure and dry at least 24 hours.
•After the tiles are set, you will grout.
•You still need to wait another day to walk on it.
4) Under Budgeting
The adage is figure your cost and triple it. But that's not really necessary. Itemize every scrap of material in your estimates, including mundane items such as the cost of nails, staples, fiberglass tape or joint compound. They all add up. Then account for at least a 15% overage of materials for waste. Throw in another 30% for price increases, especially if you're not buying all your materials at once.
5) Tackling Jobs for Which You are Unqualified
If you're afraid of heights or unsteady in high places, don't install a roof. Life is short and then you die. Hire somebody else to do it. Before you tackle a job, think about the job from its inception all the way through to its completion. You don't want to reach the halfway mark and discover you can't finish.
Some projects require more than one person. It's hard to hang drywall on a ceiling by yourself, even with a deadman prop. Pay attention to the weight you lift; it may wreak havoc on your back or throw you off balance.
6) Not Planning for the Unexpected
You have no idea when you tear open a wall what you will find. For example, you could find termites or beetles. A pest infestation will require eradication and / or structural repair. You may discover wiring that needs to be replaced, pipes that need to be rerouted or moisture problems that have rotted away joists or sill plates. Pad your budget and allow yourself a bit of flexibility in your work schedule to accommodate these not-so-nice surprises.
7) Waiving a Home Inspection
Always, always, always get a home inspection when you buy. And hire a qualified and accredited individual to perform the inspection -- not your Uncle Joe or your buddy contractor, get a real inspector. Be there for the inspection and ask questions. Pay close attention to safety issues. Be an informed buyer.
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue. There is a difference.
8) Using the Wrong Tools
When it comes to tools, you can't go wrong by buying professional tools that are made to perform specific functions. While you can get by using a drywall gun to screw deck boards to a joist, you can't use a hacksaw to make precise miter cuts with any accuracy or a 9-volt cordless drill to drive six-inch screws through a beam.
Practice safety.
•Wear goggles when using a power saw.
•Don't stand on the top rung of a ladder.
•Hit the main breaker when working with electricity.
9) Buying Cheap Material
Don't skimp. You can buy ceramic tile for 50 cents a square foot, but it will probably crack. Buyers will notice if you install quarter-inch granite on counters or buy plastic baseboards. You want the quality of your work to shine throughout the house.
If you shop carefully and negotiate prices, you can purchase brand-name merchandise for less. Then you can advertise those manufacturer names in your marketing materials, and buyers will never know how much you paid. Better yet, they won't be calling you after escrow closes to complain that your new dishwasher just dumped water all over the floor.
10) Under Estimating the Resale Value
DIYers like to use a rule of thumb that says they can sell a house for two to three times more than the cost of its improvements, plus its acquisition price. That formula doesn't work all the time. It's far wiser to check the comparable sales for similar homes in the neighborhood to determine if your improvements are in line with other homes in that area. You don't want to over-improve.
Are you selling your home and need great advice? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, August 23, 2010
Improve Your Credit Score
Written By Carla Hill
Provided By Realty Times
Healthy credit scores have never been more important. As banks tighten their lending standards, it's important to have your score as high as possible.
A FICO score is a number, in general from 300 to 850, that is formulated from your payment history, including such things as amounts of money owed, length of your credit history, new credit accounts open, and how you have used your credit. Age, salary, race, education, and religion do not affect your score. You can't buy a good score; you can only build one over time by demonstrating that you are a responsible borrower.
To improve your credit score, start with these steps.
1. Pay your bills on time. This seems like a simple enough feat, but in hard economic times, more and more borrowers are finding themselves hard-pressed with the decision of what bill to pay. If you find yourself having a hard time paying bills, be sure to talk with the lender or company you owe. They may have programs or suggestions that will help you avoid having your bill sent to collections.
2. Don't let items go to collections. Once an item is sent to collections, your credit report will suffer. This ding will stay on your report for seven years.
3. Don't open other new credit lines when applying for a home loan. You may want the new car or living room set, but the home buying process is not the time to open multiple new accounts. This is a sure-fire way to temporarily reduce your credit score. If you do this before finalizing your mortgage, you many find yourself stuck with a higher interest rate.
4. Monitor your report on a regular basis for errors and cases of identity theft. Errors do happen. To get them corrected quickly, be sure to contact both the organization that provided the erroneous information, as well as the credit bureau. Identity theft happens. And it is your responsibility to identify it and address it!
5. Pay down credit cards. Carrying high balances on credit cards can severely affect your credit score. Think of it this way. If you have a grand total of $10,000 worth of credit limits available, but you owe $5,000 on all of your cards put together, you are using half of your available credit!
The best loans and mortgages are available to borrowers with FICO scores 700 and above. Experian, one of the major credit reporting agencies, reports that the average credit score is 693.
For a look at your credit report, visit the government sponsored site, myannualcreditreport.com. You may access your report three times a year free of charge.
Would you like information on how your credit score affects purchasing a home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Realty Times
Healthy credit scores have never been more important. As banks tighten their lending standards, it's important to have your score as high as possible.
A FICO score is a number, in general from 300 to 850, that is formulated from your payment history, including such things as amounts of money owed, length of your credit history, new credit accounts open, and how you have used your credit. Age, salary, race, education, and religion do not affect your score. You can't buy a good score; you can only build one over time by demonstrating that you are a responsible borrower.
To improve your credit score, start with these steps.
1. Pay your bills on time. This seems like a simple enough feat, but in hard economic times, more and more borrowers are finding themselves hard-pressed with the decision of what bill to pay. If you find yourself having a hard time paying bills, be sure to talk with the lender or company you owe. They may have programs or suggestions that will help you avoid having your bill sent to collections.
2. Don't let items go to collections. Once an item is sent to collections, your credit report will suffer. This ding will stay on your report for seven years.
3. Don't open other new credit lines when applying for a home loan. You may want the new car or living room set, but the home buying process is not the time to open multiple new accounts. This is a sure-fire way to temporarily reduce your credit score. If you do this before finalizing your mortgage, you many find yourself stuck with a higher interest rate.
4. Monitor your report on a regular basis for errors and cases of identity theft. Errors do happen. To get them corrected quickly, be sure to contact both the organization that provided the erroneous information, as well as the credit bureau. Identity theft happens. And it is your responsibility to identify it and address it!
5. Pay down credit cards. Carrying high balances on credit cards can severely affect your credit score. Think of it this way. If you have a grand total of $10,000 worth of credit limits available, but you owe $5,000 on all of your cards put together, you are using half of your available credit!
The best loans and mortgages are available to borrowers with FICO scores 700 and above. Experian, one of the major credit reporting agencies, reports that the average credit score is 693.
For a look at your credit report, visit the government sponsored site, myannualcreditreport.com. You may access your report three times a year free of charge.
Would you like information on how your credit score affects purchasing a home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, August 20, 2010
Tax Credit Extended For Members Of The Military And Certain Federal Employees
Provided By Shelley Dudley
Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual's spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer's principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual's spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer's principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.
For more information on this topic, please give us a call at 972-772-7000 or email us at rockwall@kw.com.
Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual's spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer's principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual's spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer's principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.
For more information on this topic, please give us a call at 972-772-7000 or email us at rockwall@kw.com.
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