Friday, August 1, 2008
Friday, July 11, 2008
New Housing Dynamic - Pt 2
The first person I would like to address in what I called in my last blog the “New Housing Dynamic”, is the home buyer. Without the buyer we have nothing. You can have all of the sellers you want, a million real estate agents, a million loan officers, a million appraisers etc etc etc but without the buyer we are all like an SUV plant in 2008, useless and not producing a thing. Hey that could be a new joke...how are a subprime lender in 2008 and a SUV plant in 2008 alike? Both are gone for good! Okay my comedy days are over. Sorry, back to the buyer.
What has changed about or for buyers in this new real estate dynamic? Well it isn’t the availability of homes, there are still tons out there for them to choose from. Prices aren’t too high (anymore) in fact if you ask a lot of sellers they are to low. There is a ton of capital, as in money, available for them to borrow. So what has changed? Well let’s go back to the money thing again. There is plenty of money available for qualified buyers. What was that? Ahhhh qualified…..there is the “New Dynamic”. Let’s take a look at it.
The loans officers I normally work with have always talked about loan criteria being the four C’s. These four C’s represent character, capacity, collateral and capital. In other words does the potential buyer have a good credit score (character), capacity (income/job), collateral (did the house appraise) and capital (down payment). As we all know in the past few years you probably could have gotten a loan with only a passing grade in two of the four C’s or in some cases only one passing grade. If you said you had a job and a dollar in change in your pocket you got a loan. Don’t laugh. You know it’s true. Well I have changed the name of the four C’s. That is no longer a valid term in the “New Real Estate Dynamic”. The proper term for that same financing test is now ACID. That’s right the ACID test. ACID stands for A=appraisal, C=credit score/report, I=income, D=down payment. Starting today let’s call it what it really is and that is the ACID test. If our buyers do not pass the ACID test there is no sense in driving them around in our new scaled down vehicles wasting our $4.00+ gallon gas trying to find their dream home if they cannot get the mortgage. It is not worth the gas or the buyer’s time or the agent’s time. The ACID test must be passed first. Some agents will say I did that in the past and that is true. However, at the same time there were a lot of agents who found the buyer’s dream home first and then worried about the mortgage later since they knew that mortgages were easily had.
So now what? If the buyers do not pass the ACID test they should just walk away with their unfulfilled dreams of home ownership and the agents let them do that? NO! WRONG! In my opinion agents, if they are true professionals, should have a team behind them. One of the major team members they should NOW have on their team is a credit improvement specialist. Buyers should expect agents to assist them in ALL aspects of obtaining their dreams home ownership. Professional agents are not just chauffeurs driving buyers around. They truly never have been but the “New Dynamic” is making that more obvious than ever. Real estate professionals should have all of the resources available to assist buyers. As evidenced by a recent NAR survey almost 75% of buyers want all real estate related services under one roof. Agents need to understand and provide that. This credit restoration/improvement specialist can help with both the C and D in our ACID test. They can help with improving credit scores and through this mechanism allow the buyer to reduce their cash outflow by refinancing auto loans and credit cards to lower interest rates. It can and must be done. It is part of the “New Housing Dynamic”. I could go on and on about lower PMI, lower mortgage interest rates lower this and lower that, that is associated with credit improvement but my fingers would get to tired of doing all of that typing.
There are plenty of people with the dream of home ownership. There are plenty of people who dream of and need a bigger home. One of the new jobs of the agent in our “New Housing Dynamic” is to show these potential buyers how to fulfill their dreams. A helpful link is shown below.
More on the “New Housing Dynamic” next week. Have a great weekend.
Ron
What has changed about or for buyers in this new real estate dynamic? Well it isn’t the availability of homes, there are still tons out there for them to choose from. Prices aren’t too high (anymore) in fact if you ask a lot of sellers they are to low. There is a ton of capital, as in money, available for them to borrow. So what has changed? Well let’s go back to the money thing again. There is plenty of money available for qualified buyers. What was that? Ahhhh qualified…..there is the “New Dynamic”. Let’s take a look at it.
The loans officers I normally work with have always talked about loan criteria being the four C’s. These four C’s represent character, capacity, collateral and capital. In other words does the potential buyer have a good credit score (character), capacity (income/job), collateral (did the house appraise) and capital (down payment). As we all know in the past few years you probably could have gotten a loan with only a passing grade in two of the four C’s or in some cases only one passing grade. If you said you had a job and a dollar in change in your pocket you got a loan. Don’t laugh. You know it’s true. Well I have changed the name of the four C’s. That is no longer a valid term in the “New Real Estate Dynamic”. The proper term for that same financing test is now ACID. That’s right the ACID test. ACID stands for A=appraisal, C=credit score/report, I=income, D=down payment. Starting today let’s call it what it really is and that is the ACID test. If our buyers do not pass the ACID test there is no sense in driving them around in our new scaled down vehicles wasting our $4.00+ gallon gas trying to find their dream home if they cannot get the mortgage. It is not worth the gas or the buyer’s time or the agent’s time. The ACID test must be passed first. Some agents will say I did that in the past and that is true. However, at the same time there were a lot of agents who found the buyer’s dream home first and then worried about the mortgage later since they knew that mortgages were easily had.
So now what? If the buyers do not pass the ACID test they should just walk away with their unfulfilled dreams of home ownership and the agents let them do that? NO! WRONG! In my opinion agents, if they are true professionals, should have a team behind them. One of the major team members they should NOW have on their team is a credit improvement specialist. Buyers should expect agents to assist them in ALL aspects of obtaining their dreams home ownership. Professional agents are not just chauffeurs driving buyers around. They truly never have been but the “New Dynamic” is making that more obvious than ever. Real estate professionals should have all of the resources available to assist buyers. As evidenced by a recent NAR survey almost 75% of buyers want all real estate related services under one roof. Agents need to understand and provide that. This credit restoration/improvement specialist can help with both the C and D in our ACID test. They can help with improving credit scores and through this mechanism allow the buyer to reduce their cash outflow by refinancing auto loans and credit cards to lower interest rates. It can and must be done. It is part of the “New Housing Dynamic”. I could go on and on about lower PMI, lower mortgage interest rates lower this and lower that, that is associated with credit improvement but my fingers would get to tired of doing all of that typing.
There are plenty of people with the dream of home ownership. There are plenty of people who dream of and need a bigger home. One of the new jobs of the agent in our “New Housing Dynamic” is to show these potential buyers how to fulfill their dreams. A helpful link is shown below.
More on the “New Housing Dynamic” next week. Have a great weekend.
Ron
Wednesday, July 9, 2008
New Housing Dynamic - pt 1
In the past two weeks we have been flooded with news about mortgages, home ownership, the four keys to our housing market recovery, more foreclosures to come and a ton of other housing related news. Let’s take a moment to review some of this news.
Ben Bernanke, Chairman of the Federal Reserve System said that new rules are coming for lenders. These new rules will prevent “shady” mortgages and provide better protection for the borrower and ultimately result in fewer home loans being made. Henry Paulson, Jr., Secretary of the Treasury said that there is no way to prevent a lot of foreclosures from happening because the borrowers involved should never have been given mortgages in the first place. Congress is close to passing the mortgage rescue bill and the Joint Center for Housing Studies at Harvard University said we were in the worst housing market in 50 years. Credit card companies are reducing credit limits thus lowering credit scores and making fewer people eligible for mortgages. Combine these tidbits with what has been called the “new affordability” for large tract home builders and we are faced with a large amount of information to digest. When I first read all of this material I was left with a severe case of “housing” indigestion. My medicine cabinet held no relief for this type of sickness. The same type sickness that affects our real estate market today.
So what does all this mean? I believe it means that there is a new real estate dynamic evolving; a new housing dynamic that is already here, but not realized nor understood by most of us. A new housing dynamic that will affect current and future homes buyers and sellers, mortgage brokers and bankers, real estate agents, credit restoration/improvement specialists, home builders, real estate investors and just about everyone else involved in the real estate transaction chain.
What I am going to attempt to do over my next few blogs is examine this possible new dynamic and explore the possible affects it will have on all of us. I will title “New Housing Dynamic – Pt ?” with the question mark representing the number of the blog in the series. I firmly believe that the new housing dynamic has arrived. It is time that all of us, from agents, to buyers to sellers, wake up to this fact, address it, and adjust to it. It will have a profound affect on all of us now only now but in the future also.
I look forward to hearing from all of you on this matter.
Have a great day!
Ron
Ben Bernanke, Chairman of the Federal Reserve System said that new rules are coming for lenders. These new rules will prevent “shady” mortgages and provide better protection for the borrower and ultimately result in fewer home loans being made. Henry Paulson, Jr., Secretary of the Treasury said that there is no way to prevent a lot of foreclosures from happening because the borrowers involved should never have been given mortgages in the first place. Congress is close to passing the mortgage rescue bill and the Joint Center for Housing Studies at Harvard University said we were in the worst housing market in 50 years. Credit card companies are reducing credit limits thus lowering credit scores and making fewer people eligible for mortgages. Combine these tidbits with what has been called the “new affordability” for large tract home builders and we are faced with a large amount of information to digest. When I first read all of this material I was left with a severe case of “housing” indigestion. My medicine cabinet held no relief for this type of sickness. The same type sickness that affects our real estate market today.
So what does all this mean? I believe it means that there is a new real estate dynamic evolving; a new housing dynamic that is already here, but not realized nor understood by most of us. A new housing dynamic that will affect current and future homes buyers and sellers, mortgage brokers and bankers, real estate agents, credit restoration/improvement specialists, home builders, real estate investors and just about everyone else involved in the real estate transaction chain.
What I am going to attempt to do over my next few blogs is examine this possible new dynamic and explore the possible affects it will have on all of us. I will title “New Housing Dynamic – Pt ?” with the question mark representing the number of the blog in the series. I firmly believe that the new housing dynamic has arrived. It is time that all of us, from agents, to buyers to sellers, wake up to this fact, address it, and adjust to it. It will have a profound affect on all of us now only now but in the future also.
I look forward to hearing from all of you on this matter.
Have a great day!
Ron
Credit Scoring
As some of you know besides being a full time real estate agent I also represent a national membership organization that assists consumers with credit improvement and restoration. In doing some research on how credit scores are calculated I found and interesting article from the Electronic Privacy information Center on the subject. It makes for some great short reading and as it did for me may open your eyes to what really goes on with your credit scores. It is not as many of us think just about paying your bills on time. According to the article about 100 different things that are actually used in calculating your scores. If you get a moment please read the article. If you have any questions please drop me an email.
Have a good day.
Ron
http://epic.org/privacy/creditscoring/
Have a good day.
Ron
http://epic.org/privacy/creditscoring/
Texas Veterans - interest rates
The new interest rates for loans through the Texas Veterans Land Board for this week are as follows:
5.93% Base Rate applies to all loans with a term greater than 15 years.
Available Discounts to Base Rate*Discount for loans with a term of 15 years or less: -.25%Qualified Veterans with Disabilities Program Discount: -.35%Qualified Service Era Discount (Restricted Pool): -1.47%
Great rates once again by the board. Please email me if you have any questions and please call me so that I may help you look for a home. Have a great day. View the Texas Veterans Land Board website by clikcing the link below.
Ron
http://www.glo.state.tx.us/vlb/
5.93% Base Rate applies to all loans with a term greater than 15 years.
Available Discounts to Base Rate*Discount for loans with a term of 15 years or less: -.25%Qualified Veterans with Disabilities Program Discount: -.35%Qualified Service Era Discount (Restricted Pool): -1.47%
Great rates once again by the board. Please email me if you have any questions and please call me so that I may help you look for a home. Have a great day. View the Texas Veterans Land Board website by clikcing the link below.
Ron
http://www.glo.state.tx.us/vlb/
Tuesday, July 1, 2008
Is it to early to say Bah Humbug?? Yes, sales were down again in Montgomery County. The results for May, 2008 versus 2007 and 2006 are shown below. Our year-to-date sales are down almost 19% (gag). Yet even with the decline in sales the average sales price continues to increase. (All Right!) Needless to say it is a unique situation. We appear to be in the exact opposite situation of California where sales increased and prices declined. As you can see all real estate, like politics, is local. If you have any question about what MLS area you are in please send me an email. I will be more than happy to provide you with all of the information I can.
When will the situation change? I really do not have the foggiest idea. What do I hope? That those buyers sitting on the fence will change their minds and quickly. Interest rates are RISING. Just the other day a well respected news website said now is the best time to buy as interest rates should continue to rise and prices may have well bottomed out. Now would be a good time to call your friendly mortgage banker. If you don't have one please let me now and I will send you some names.
Take a look at the numbers below.....try not to gag....tell your neighbors to buy now...take two advil and email me in the morning. Have a great week.
When will the situation change? I really do not have the foggiest idea. What do I hope? That those buyers sitting on the fence will change their minds and quickly. Interest rates are RISING. Just the other day a well respected news website said now is the best time to buy as interest rates should continue to rise and prices may have well bottomed out. Now would be a good time to call your friendly mortgage banker. If you don't have one please let me now and I will send you some names.
Take a look at the numbers below.....try not to gag....tell your neighbors to buy now...take two advil and email me in the morning. Have a great week.
Ron
Interest rates - weekly
Here are this week's interest rates for Texas veterans eligible for loans from the Texas Veterans Land Board.
Base rate: 5.95%
Discount for 15 year loan or less:<.25%>
Disabilities discount: <.35%>
Service era discount <1.49%>
If you have any questions please send me an email or visit the website shown below.
www.texasveterans.com
Thanks and have a great day!
Ron
Base rate: 5.95%
Discount for 15 year loan or less:<.25%>
Disabilities discount: <.35%>
Service era discount <1.49%>
If you have any questions please send me an email or visit the website shown below.
www.texasveterans.com
Thanks and have a great day!
Ron
Monday, June 23, 2008
Sales information!!
How about some quick general market information on Montgomery County. Yep sales were down again in May BUT sales prices increased again. It appears that when we get the final numbers that year over year "average price" gains will be about 7.7%. Still crazy isn't it. Sales are down and prices are still increasing. The "median price" will also have increased about 6.2%. And all of this combined with increasing interest rates.
What about foreclosures in Montgomery County? Well we are well behind the rest of the nation which is a good thing. The county foreclosure rate increased only about 14% in the first three months of this year as compared to last year. Not bad at all when you consider that overall nationwide foreclosures increase a whopping 112%. I think we are in pretty good shape. There were 443 this year versus 387 last year. Foreclosure have increased each of the last three months so we may see a couple more months of increases. But we will not see here what is happening in the rest of the nation. Overall Texas had just under 34,000 for the first quarter of this year. Are there foreclosure deals out there for you to buy? Yes. However if you aren't looking every day the good ones are gone before you get there.
That is just a quick update. The final nunbers should be out this week and we will see what they hold. Is anyone's crystal ball working???
Have a great day.
Ron
What about foreclosures in Montgomery County? Well we are well behind the rest of the nation which is a good thing. The county foreclosure rate increased only about 14% in the first three months of this year as compared to last year. Not bad at all when you consider that overall nationwide foreclosures increase a whopping 112%. I think we are in pretty good shape. There were 443 this year versus 387 last year. Foreclosure have increased each of the last three months so we may see a couple more months of increases. But we will not see here what is happening in the rest of the nation. Overall Texas had just under 34,000 for the first quarter of this year. Are there foreclosure deals out there for you to buy? Yes. However if you aren't looking every day the good ones are gone before you get there.
That is just a quick update. The final nunbers should be out this week and we will see what they hold. Is anyone's crystal ball working???
Have a great day.
Ron
Tuesday, June 17, 2008
Interest rate - LOW LOW
Interest rates have risen over the last month. They were starting to come down a little today but not quickly. Yet there are astoundingly great deals available especially if you are a Texas veteran or let me put it another way if you are a veteran living in Texas. You will be amazed at who is eligible. You may not think you are but you might just be surprised.
Every Friday evening I get an update on the interest rates and discounts available through the Texas Veterans Land Board (TVLB). Last Friday's rates were: 6.1% base rate, discount for 15 year or less loan -.25%, disabilities program -.35%, qualified service era discount -1.64%. That means someone like me with a service era discount could get a 30 year loan at a rate of 4.46% and if I wanted a 15 year loan the interest rate would be 4.21%. Those are unbelievable rates.
Now catch this not only does the TVLB have home loans but they also have loans for land (yes that is raw land) and home improvements. AND they also have a direct loan program where they will lend you up to $45,000 direct to purchase your primary residence. Yes I know you are thinking that you can't buy anything for $45,000. But you are wrong. Where I live, around Lake Conroe, there are a lot of great one bedroom condos for that price and less. Can imagine being a single 25 year old vet and getting to buy a condo at your age? What a way to buy rather than rent at that age. What a great way to also start your real estate portfolio. And one more thing...you can participate in all three programs, home, land and home improvement at the same time. Now that is amazing.
Texas is one of only five states to offer veteran benefits. This is one of the greatest programs going!! In Montgomery County there are over 4,000 known veterans. I say known veterans because I checked and I am not on the list. But I do qualify even though I entered the USMC from Chicago. Yep you may not think you are a Texas veteran but you probably are.
What do you do now? If you are a veteran looking for a home or land in Montgomery or Walker County email today and I will help you find the property and put you in touch with the right loan officer knowledgeable about the TVLB programs. If you are looking in Harris County email be and I will connect you with a realtor who is a veteran and knowledgeable with the TVLB programs.
If you are a veteran don't waste a minute. Email me today please. Thanks and have a great day!
Every Friday evening I get an update on the interest rates and discounts available through the Texas Veterans Land Board (TVLB). Last Friday's rates were: 6.1% base rate, discount for 15 year or less loan -.25%, disabilities program -.35%, qualified service era discount -1.64%. That means someone like me with a service era discount could get a 30 year loan at a rate of 4.46% and if I wanted a 15 year loan the interest rate would be 4.21%. Those are unbelievable rates.
Now catch this not only does the TVLB have home loans but they also have loans for land (yes that is raw land) and home improvements. AND they also have a direct loan program where they will lend you up to $45,000 direct to purchase your primary residence. Yes I know you are thinking that you can't buy anything for $45,000. But you are wrong. Where I live, around Lake Conroe, there are a lot of great one bedroom condos for that price and less. Can imagine being a single 25 year old vet and getting to buy a condo at your age? What a way to buy rather than rent at that age. What a great way to also start your real estate portfolio. And one more thing...you can participate in all three programs, home, land and home improvement at the same time. Now that is amazing.
Texas is one of only five states to offer veteran benefits. This is one of the greatest programs going!! In Montgomery County there are over 4,000 known veterans. I say known veterans because I checked and I am not on the list. But I do qualify even though I entered the USMC from Chicago. Yep you may not think you are a Texas veteran but you probably are.
What do you do now? If you are a veteran looking for a home or land in Montgomery or Walker County email today and I will help you find the property and put you in touch with the right loan officer knowledgeable about the TVLB programs. If you are looking in Harris County email be and I will connect you with a realtor who is a veteran and knowledgeable with the TVLB programs.
If you are a veteran don't waste a minute. Email me today please. Thanks and have a great day!
Wednesday, June 11, 2008
Houston #1
You read the title correctly, Houston is #1! Who says? Kiplinger.com has rated Houston #1 in its' 2008 Best Cities ratings. Thank you Kiplinger.com.
According to the article Houston created over 100,000 new jobs in 2007. That in itself is amazing. The income growth for the city is 13.1% since 2000. New jobs and more money! What a great combination. I will bet there are not a lot of cities in the US that can claim the same. Do you realize that according to the article our cost-of-living index is an 88.1? With the national average being a rating of 100 we are well below the national average. I will wager you right now that along with this great news we will even see the Astros win the World Series this year. Okay I may be dreaming a little there.
But let me ask you this after you have read what I wrote above and what I wrote earlier this month about rising home prices. Why are you waiting to buy? Our city and county are growing, home sales are down but average home sale prices are rising and interest rates are low. Yet some of you are sitting in the corner of the dugout waiting until the ninth inning to come to bat. Well guess what? It is the bottom of the ninth.
Why do I say it is the bottom of the ninth and that now is the time to take your swing at a home purchase or sale? The US dollar needs strengthening so I don’t think the Fed will cut interest rates any more. The Saudis just called for an oil summit to examine the current outrageous price of oil. They may turn on the tap. They have 2,000,000 more barrels a day that they can produce. Congress is looking at commodity speculators. It is an election year and our incumbents all want to keep their cushy political jobs and they know every vote counts. They will do something, be it right or wrong to get your vote. NAR just showed that pending home sales just took an unexpected jump. The FHA may start taking credit scores in the 580 area to help increase home sales. That in my opinion is a whole lot of stuff that is happening or is going to happen very shortly to spark the market. Please realize that I am not an economist or even a good prognosticator but I do read, study and know the market. Home prices in our market are not going to go down. They haven't yet and won't in the future. The best deals are now.
Okay grab your helmet and bat. Get out to the on-deck circle (in other words call your mortgage banker and get your prequal letter), warm-up and let’s go take our swings at buying that home you have been dreaming about. And please no steroids. That is what got us in trouble in the first place.
Have a great day! And please don't forget to call me so I can help you buy that new home!
Ron
According to the article Houston created over 100,000 new jobs in 2007. That in itself is amazing. The income growth for the city is 13.1% since 2000. New jobs and more money! What a great combination. I will bet there are not a lot of cities in the US that can claim the same. Do you realize that according to the article our cost-of-living index is an 88.1? With the national average being a rating of 100 we are well below the national average. I will wager you right now that along with this great news we will even see the Astros win the World Series this year. Okay I may be dreaming a little there.
But let me ask you this after you have read what I wrote above and what I wrote earlier this month about rising home prices. Why are you waiting to buy? Our city and county are growing, home sales are down but average home sale prices are rising and interest rates are low. Yet some of you are sitting in the corner of the dugout waiting until the ninth inning to come to bat. Well guess what? It is the bottom of the ninth.
Why do I say it is the bottom of the ninth and that now is the time to take your swing at a home purchase or sale? The US dollar needs strengthening so I don’t think the Fed will cut interest rates any more. The Saudis just called for an oil summit to examine the current outrageous price of oil. They may turn on the tap. They have 2,000,000 more barrels a day that they can produce. Congress is looking at commodity speculators. It is an election year and our incumbents all want to keep their cushy political jobs and they know every vote counts. They will do something, be it right or wrong to get your vote. NAR just showed that pending home sales just took an unexpected jump. The FHA may start taking credit scores in the 580 area to help increase home sales. That in my opinion is a whole lot of stuff that is happening or is going to happen very shortly to spark the market. Please realize that I am not an economist or even a good prognosticator but I do read, study and know the market. Home prices in our market are not going to go down. They haven't yet and won't in the future. The best deals are now.
Okay grab your helmet and bat. Get out to the on-deck circle (in other words call your mortgage banker and get your prequal letter), warm-up and let’s go take our swings at buying that home you have been dreaming about. And please no steroids. That is what got us in trouble in the first place.
Have a great day! And please don't forget to call me so I can help you buy that new home!
Ron
Monday, June 9, 2008
Open Houses - today's reality
Dear Mr. & Mrs. Home Seller, I would like to take a few minutes and tell you what I believe to be today's reality on holding an open house in order to sell your home. I realize you want me to do all that I can to sell your home. Please know that I will do that. But I think both of us want to be efficient in those efforts and holding an open house in today's market is like driving a big SUV - not efficient.
In the old days, meaning one year ago, buyers would go to church on Sunday morning, take in a leisurely brunch afterwards and then go drive around several subdivisions looking for open houses to tour in hopes of finding a home they liked and might consider for purchase. Some of these people would be serious buyers while others would just be tire kickers and still others were just looking for decorating ideas. In reality statistics show that fewer than 2% of home buyers find the home they purchase via open houses. That means you would have to vacate your home and I would have to sit in it for 50 consecutive weekends for me to sell your home using this method. I don't know about you but at some point during that 50 week span one of us might get a little frustrated with the other. What do you think?
What is today's reality? In consists of two phrases. The first of these phrases is fuel costs. With the national average for a gallon of gasoline above $4.00 I do not believe that a whole lot of people are leisurely driving around looking for homes to preview. When people are paying $80 for a fill-up the needless expense of an idling vehicle is not something that most of us can bear. The second phrase that has affected the effectiveness of open houses is the Internet. When one can now sit at home in air conditioned comfort and use the computer to preview homes rather than drive around wasting $4.00 per gallon fuel with three kids screaming in the back seat I think most people will do that. I don't know about you but I am not into self punishment and monetary wastefulness. It just does not make sense to me and I seriously doubt it does to you either.
So please Mr. and Mrs. Seller when I tell you that open houses are a waste of time and money today believe me. Let's think of the buyer and not ourselves when making these decisions. I realize that some of you may not like to hear this from me. However one of the things I promised you as your real estate agent was veracity. To give you the truth at all times even when I knew you might not like to hear what I had to say.
Thanks for listening.
Ron
In the old days, meaning one year ago, buyers would go to church on Sunday morning, take in a leisurely brunch afterwards and then go drive around several subdivisions looking for open houses to tour in hopes of finding a home they liked and might consider for purchase. Some of these people would be serious buyers while others would just be tire kickers and still others were just looking for decorating ideas. In reality statistics show that fewer than 2% of home buyers find the home they purchase via open houses. That means you would have to vacate your home and I would have to sit in it for 50 consecutive weekends for me to sell your home using this method. I don't know about you but at some point during that 50 week span one of us might get a little frustrated with the other. What do you think?
What is today's reality? In consists of two phrases. The first of these phrases is fuel costs. With the national average for a gallon of gasoline above $4.00 I do not believe that a whole lot of people are leisurely driving around looking for homes to preview. When people are paying $80 for a fill-up the needless expense of an idling vehicle is not something that most of us can bear. The second phrase that has affected the effectiveness of open houses is the Internet. When one can now sit at home in air conditioned comfort and use the computer to preview homes rather than drive around wasting $4.00 per gallon fuel with three kids screaming in the back seat I think most people will do that. I don't know about you but I am not into self punishment and monetary wastefulness. It just does not make sense to me and I seriously doubt it does to you either.
So please Mr. and Mrs. Seller when I tell you that open houses are a waste of time and money today believe me. Let's think of the buyer and not ourselves when making these decisions. I realize that some of you may not like to hear this from me. However one of the things I promised you as your real estate agent was veracity. To give you the truth at all times even when I knew you might not like to hear what I had to say.
Thanks for listening.
Ron
Wednesday, June 4, 2008
Average Home Sales Price
I promised last week that we would take look at what home prices are doing in our area during this "catastrophic" real estate market that we are experiencing. I think when you take a look at this data you will come to the conclusion that all is not doom and gloom.
The numbers shown below are for the four MLS areas that represent Montgomery County. These numbers show what the average sales was for single family residences sold in April 2008, 2007 and 2006 and amount (in percentage) of that increase or decrease. Take a look and let me know what you think.
MLS--------2008-----% +/-------2007-------% +/------2006
15--------$291,026---14.12%---- $255,026---0.78%----$253,051
19--------$126,069--<12.90%>----$144,737----12.15%---$129,055
39--------$252,019---2.98%-----$244,736----35.41%---$180,734
40--------$169,069---13.87%----$148,469---<5.47%>----$157,052
I don't see a lot of price decreases in those numbers. And I do not think you will in the future either. Sales in our area may be down but prices in the vast majority of cases are going up. As I said in an earlier blog I believe we are at or near the bottom. If you are going to get in on the buyers market you had better do it now.
Questions??? Just send me an email.
I hope you have a great day.
Ron
PS: Sorry about all of the ---- but the system doesn't allow the insertion of a table.
The numbers shown below are for the four MLS areas that represent Montgomery County. These numbers show what the average sales was for single family residences sold in April 2008, 2007 and 2006 and amount (in percentage) of that increase or decrease. Take a look and let me know what you think.
MLS--------2008-----% +/-------2007-------% +/------2006
15--------$291,026---14.12%---- $255,026---0.78%----$253,051
19--------$126,069--<12.90%>----$144,737----12.15%---$129,055
39--------$252,019---2.98%-----$244,736----35.41%---$180,734
40--------$169,069---13.87%----$148,469---<5.47%>----$157,052
I don't see a lot of price decreases in those numbers. And I do not think you will in the future either. Sales in our area may be down but prices in the vast majority of cases are going up. As I said in an earlier blog I believe we are at or near the bottom. If you are going to get in on the buyers market you had better do it now.
Questions??? Just send me an email.
I hope you have a great day.
Ron
PS: Sorry about all of the ---- but the system doesn't allow the insertion of a table.
Friday, May 30, 2008
April Sales Results
How were the April, 2008 sales results for single family residence (SFR) unit sales as compared to April, 2007? Down again but not as bad. Let's take a look.
In MLS area 15 (Woodlands & West) sales were down 17%. In MLS area 19 (Conroe) they were down 9.68%. MLS area 39 (Lake Conroe area) was down 15.91% and MLS area 40 (East Montgomery County) was UP, yes UP 45.45%. Overall county single family residence unit sales declined 12.27% from April, 2007. This 12.27% decline was less than the previous three months of 2008. This lessening in the sales decline may be an indicator that the bottom is near. What a relief that would be for all of us.
The average "Days on the Market" required to sell a home increased in all four county MLS areas. These numbers increased from a low of 14.71% to a high of 22.83%. If you need to sell please remember to price correctly and list your home early.
The number of active listings increased only slightly moving up 1.29%. This small increase combined with the lessening sales decline may, as mentioned earlier, be an indicator that the bottom is near or has been reached. MLS areas 19 and 39 showed decreases in the number of active listings.
When we look at all of the sales numbers objectively, the Texas economic forecast and what the local county appraisers are doing as far as raising tax appraisals on businesses I do believe that something is shaking the trees so to speak. What is doing the shaking? I hope and honestly do believe that it is the pent-up demand for housing. As I mentioned twice earlier I believe the pendulum is about to start swinging the other way if it hasn't already. Is there further evidence of this? Yes I believe there is and I think it is in the area of average sales prices. We will address this subject on Monday along with the year-to-date SFR unit sales numbers.
Have a great weekend!
Ron
In MLS area 15 (Woodlands & West) sales were down 17%. In MLS area 19 (Conroe) they were down 9.68%. MLS area 39 (Lake Conroe area) was down 15.91% and MLS area 40 (East Montgomery County) was UP, yes UP 45.45%. Overall county single family residence unit sales declined 12.27% from April, 2007. This 12.27% decline was less than the previous three months of 2008. This lessening in the sales decline may be an indicator that the bottom is near. What a relief that would be for all of us.
The average "Days on the Market" required to sell a home increased in all four county MLS areas. These numbers increased from a low of 14.71% to a high of 22.83%. If you need to sell please remember to price correctly and list your home early.
The number of active listings increased only slightly moving up 1.29%. This small increase combined with the lessening sales decline may, as mentioned earlier, be an indicator that the bottom is near or has been reached. MLS areas 19 and 39 showed decreases in the number of active listings.
When we look at all of the sales numbers objectively, the Texas economic forecast and what the local county appraisers are doing as far as raising tax appraisals on businesses I do believe that something is shaking the trees so to speak. What is doing the shaking? I hope and honestly do believe that it is the pent-up demand for housing. As I mentioned twice earlier I believe the pendulum is about to start swinging the other way if it hasn't already. Is there further evidence of this? Yes I believe there is and I think it is in the area of average sales prices. We will address this subject on Monday along with the year-to-date SFR unit sales numbers.
Have a great weekend!
Ron
Tuesday, May 27, 2008
Sales Drop Prices Rise
Yes it is true, sales in Montgomery County, Texas fell this April versus last April but prices rose in three of the four MLS areas that comprise the county. In MLS area 15 (The Woodlands & west) prices rose 14.12%, in MLS area 39 (Lake Conroe) they rose 2.98%, in MLS area 40 (East county) they rose 13.87% and lastly in MLS area 19 (Conroe) they fell 12.9%. Those numbers are 2008 versus 2007. Amazing that sales fall and the sales prices continue to rise. The "deal" that some of you were hoping for is probably not going to materialize. The number of active listings is also starting to stabilize. County wide there was only a 1.29% increase over the number of active listings at the end of last April.
The average "Days on the Market" did take a big hit versus last April. The increases in this area for the four MLS areas ranged from a low increase of 14.7% to a high increase of 22.8%. Okay so your house takes longer to sell but there is a good chance you may get more money for it. Plan better and plan early is probably the key there.
In looking at the actual sales numbers they did fall again. The amount of decrease is smaller though and I think shows that the bottom is near. I will give you the actual numbers later this week. Don't be surprised if the deal you thought was there vanishes overnight. Last week a client of mine finally decided to make an offer on a home she had been looking at for three months. Well guess what, that same day the buyer got two other offers and my client's was not the high one. Please if you are thinking of making an offer make it today. Time waits for no person.
I hope you all had a great Memorial Weekend.
Ron
The average "Days on the Market" did take a big hit versus last April. The increases in this area for the four MLS areas ranged from a low increase of 14.7% to a high increase of 22.8%. Okay so your house takes longer to sell but there is a good chance you may get more money for it. Plan better and plan early is probably the key there.
In looking at the actual sales numbers they did fall again. The amount of decrease is smaller though and I think shows that the bottom is near. I will give you the actual numbers later this week. Don't be surprised if the deal you thought was there vanishes overnight. Last week a client of mine finally decided to make an offer on a home she had been looking at for three months. Well guess what, that same day the buyer got two other offers and my client's was not the high one. Please if you are thinking of making an offer make it today. Time waits for no person.
I hope you all had a great Memorial Weekend.
Ron
Friday, May 23, 2008
Sales Figures
I will have the April and YTD Montgomery County sales figures for you on Tuesday. They just came out and I will digest them over this long weekend. In the interim I would like you to ponder the following.
There are four major resources that monitor home sales and prices. They are NAR (National Association of Realtors), OFHEO (Office of Federal Housing Enterprise Oversight), S&P/Case-Shiller Index and Realogy. Of these four major entities only one, yes only one says that home prices are dropping. Overall they reported that US home prices rose 0.6% from January to February of this year. They reported that eight of the ten major housing areas showed increases and only two showed decreases. That isn't what you are hearing on the news though is it. Of course not. Good news isn't news. Only bad news is news.
Historically real estate prices have a standard deviation of +/- 4%. That means from year-to-year the value of your home will increase or decrease no more than 4%. Have you looked at what our savings account or CD is paying right now? I will bet it is not half of that. Where else can you invest your money and be almost guaranteed of good steady growth? Why would you keep renting and throw that money away? Why are you waiting while interest rates are historic lows yet rise a little each week? Are homes sales still down? Yes. Why? Because people in my humble opinion keep listening to the badly reported news rather than listen to good advice.
Those of us in Texas must wake up and realize that we are in good economic shape. We must not let a few small pockets of bad real estate markets dictate what we do. Spend some time on the internet looking at the available listings and see what great bargains are available. It is amazing. Stop being like a pregnant elephant that has a gestation period of 22 months and make a positive home selling or guying decision today. I promise you will not regret the decision.
Do I sound desperate? Sorry I'm not. Had a great sales and listing week. I do though want you, my readers to know what is really going on and not have you rely on biased news reporting.
I would like you to all have a wonderful Memorial Day weekend. I would also ask that you remember the true purpose of this holiday, to remember all of those who have paid the ultimate sacrifice and given their lives in defense of our great country. I have two sons currently serving in the US Army. One is in Iraq and the other is under orders for deployment to Afghanistan. I ask that you remember not only those who have given their lives for us but also those who currently sacrifice their safety for us.
God Bless all of you.
Ron
There are four major resources that monitor home sales and prices. They are NAR (National Association of Realtors), OFHEO (Office of Federal Housing Enterprise Oversight), S&P/Case-Shiller Index and Realogy. Of these four major entities only one, yes only one says that home prices are dropping. Overall they reported that US home prices rose 0.6% from January to February of this year. They reported that eight of the ten major housing areas showed increases and only two showed decreases. That isn't what you are hearing on the news though is it. Of course not. Good news isn't news. Only bad news is news.
Historically real estate prices have a standard deviation of +/- 4%. That means from year-to-year the value of your home will increase or decrease no more than 4%. Have you looked at what our savings account or CD is paying right now? I will bet it is not half of that. Where else can you invest your money and be almost guaranteed of good steady growth? Why would you keep renting and throw that money away? Why are you waiting while interest rates are historic lows yet rise a little each week? Are homes sales still down? Yes. Why? Because people in my humble opinion keep listening to the badly reported news rather than listen to good advice.
Those of us in Texas must wake up and realize that we are in good economic shape. We must not let a few small pockets of bad real estate markets dictate what we do. Spend some time on the internet looking at the available listings and see what great bargains are available. It is amazing. Stop being like a pregnant elephant that has a gestation period of 22 months and make a positive home selling or guying decision today. I promise you will not regret the decision.
Do I sound desperate? Sorry I'm not. Had a great sales and listing week. I do though want you, my readers to know what is really going on and not have you rely on biased news reporting.
I would like you to all have a wonderful Memorial Day weekend. I would also ask that you remember the true purpose of this holiday, to remember all of those who have paid the ultimate sacrifice and given their lives in defense of our great country. I have two sons currently serving in the US Army. One is in Iraq and the other is under orders for deployment to Afghanistan. I ask that you remember not only those who have given their lives for us but also those who currently sacrifice their safety for us.
God Bless all of you.
Ron
Monday, May 19, 2008
Home buying and credit reality
I didn't realize that you had money to throw away during these almost $4.00 per gallon gasoline days. But from what most of you are telling me you do. Congratulations you are richer than I am.
What am I talking about? I am talking about your desire to buy a home in six months with a credit score between 620 and 650, live in it for 10 years and throw away about $15,000. Yep 15 big ones down the tank. Let's see, that is 3,750 gallons of gas idled away because you don't want to get your credit score to 720 or above by spending about $1,000.
Let me give you some numbers (the interest rates reflected are based on information I collected this morning). If you get a loan today for $150,000 at 5.75% your monthly principal and interest (P&I) payment would be $875.30. If you got that same loan at 6.75% your monthly P&I payment would be $972.90. About $100 more plus of course a higher PMI of say $25 a month. A grand total of about $125 per month because of a lower credit score that you think is okay. I'm sorry but if I can find a way to save $125 per month on my future house payment I am going to do just that. I will gladly trade $1,000 for $15,000 any day of the week.
How do you raise your credit score? Well I can guarantee that you can't do it on your own. You versus a multinational corporation is a losing situation. I know what the law says and I know what the fine print in the law says also. You will almost certainly lose.
Is credit restoration legal? Yes it is. Is it ethical? Yes it is. Is it moral? Yes it is.
What does it take? It takes a national membership association with many benefits, thousands of members and a team of knowledgeable credit restoration attorneys. In other words it takes expertise. It takes team work, you and the association working together to better your situation. Are you going to let stubbornness and a "I don't believe that" attitude stand in the way? Or are you going to investigate the possibilities, make a good well researched decision for the betterment of your family and personal financial situation? I don't know about you, but in these days of $4.00 per gallon gas I am all for admitting where I need help and not be afraid of asking for a little. I think there is something in the bible about acquiring wisdom.
I hope you have a great day. See you at the gas pump.
Ron
What am I talking about? I am talking about your desire to buy a home in six months with a credit score between 620 and 650, live in it for 10 years and throw away about $15,000. Yep 15 big ones down the tank. Let's see, that is 3,750 gallons of gas idled away because you don't want to get your credit score to 720 or above by spending about $1,000.
Let me give you some numbers (the interest rates reflected are based on information I collected this morning). If you get a loan today for $150,000 at 5.75% your monthly principal and interest (P&I) payment would be $875.30. If you got that same loan at 6.75% your monthly P&I payment would be $972.90. About $100 more plus of course a higher PMI of say $25 a month. A grand total of about $125 per month because of a lower credit score that you think is okay. I'm sorry but if I can find a way to save $125 per month on my future house payment I am going to do just that. I will gladly trade $1,000 for $15,000 any day of the week.
How do you raise your credit score? Well I can guarantee that you can't do it on your own. You versus a multinational corporation is a losing situation. I know what the law says and I know what the fine print in the law says also. You will almost certainly lose.
Is credit restoration legal? Yes it is. Is it ethical? Yes it is. Is it moral? Yes it is.
What does it take? It takes a national membership association with many benefits, thousands of members and a team of knowledgeable credit restoration attorneys. In other words it takes expertise. It takes team work, you and the association working together to better your situation. Are you going to let stubbornness and a "I don't believe that" attitude stand in the way? Or are you going to investigate the possibilities, make a good well researched decision for the betterment of your family and personal financial situation? I don't know about you, but in these days of $4.00 per gallon gas I am all for admitting where I need help and not be afraid of asking for a little. I think there is something in the bible about acquiring wisdom.
I hope you have a great day. See you at the gas pump.
Ron
Thursday, May 15, 2008
Buyers and the FHA
Many years ago we used to think that anyone who bought a house using an FHA loan was a bad credit risk or a first time home buyer with limited resources. Although that really was not true that was the prevalent thinking at the time. Today FHA loans may be the way to go. The interest offered are great and there are several programs available. However on July 14,2008 the upfront and annual mortgage insurance premiums associated with FHA loans will be restructured.
What does this mean for you? It could possibly mean higher and more expensive mortgage insurance. The amount of upfront fees and monthly mortgage insurance premium you pay will be based on your credit score, loan length and loan to home value. The formula is becoming more risked based. This is the result of the recent debacle in the mortgage industry.
What can you do to avoid this increase in costs? First of all you can buy before the new formulas go into effect. That means finding and closing on a home no later that July 13, 2008. The other option is to raise your credit score to 680 or above and buy after the new rates go into effect. Both of these options are viable. If you aren't sure how drop me an email and I will explain.
If you want to read the Federal Register issued by the Department of Housing and Urban Development dealing with the issue I have attached a link for that purpose.
Thanks and I hope you have a great day.
Ron
What does this mean for you? It could possibly mean higher and more expensive mortgage insurance. The amount of upfront fees and monthly mortgage insurance premium you pay will be based on your credit score, loan length and loan to home value. The formula is becoming more risked based. This is the result of the recent debacle in the mortgage industry.
What can you do to avoid this increase in costs? First of all you can buy before the new formulas go into effect. That means finding and closing on a home no later that July 13, 2008. The other option is to raise your credit score to 680 or above and buy after the new rates go into effect. Both of these options are viable. If you aren't sure how drop me an email and I will explain.
If you want to read the Federal Register issued by the Department of Housing and Urban Development dealing with the issue I have attached a link for that purpose.
Thanks and I hope you have a great day.
Ron
Wednesday, May 14, 2008
Subdivision information
Do you have thoughts about selling your home and buying another one or possibly moving out of your apartment into a home? Is the lack of information about your subdivision or the subdivision you would like to move into keeping you from making the decision? Well look no further. Informal information on individual subdivisions in Montgomery County is available. All you have to do is ask me and you will have it. I can tell you the price range, number of sales, price per square foot, average annual change etc. for most of the subdivisions in our county.
So please send me an email and get what you need. And yes I would love to list your home for sale and/or help you buy a new one.
Thanks and have a great day.
Ron
So please send me an email and get what you need. And yes I would love to list your home for sale and/or help you buy a new one.
Thanks and have a great day.
Ron
Montgomery County - total market
Prior to the release of the April sales numbers I thought it might be interesting to take a look at more of the numbers and see if people are still moving and to try and see if the market really has dropped or because of the credit crunch has the market just shifted a little. Here is what I found in looking at the first quarter of 2008 vs the same period 2007. These numbers are for Montgomery County.
Total unit sales of single family residences and townhomes/condos for the first three months of 2008 vs 2007 were down 18.5%. Big number right? Not so fast. Single family residence and townhomes/condo rentals for the same period were up 8.5% At this point we are left with a year-to-year decline of about 10%. But, and I do not have access to these numbers, rumor has it that apartment rentals are up at least that much if not more. And let's remember that the foreclosure rate in Texas is up only about 11% from the previous year and not 65% as advertised so blatantly on CNN today.
Conclusion? That the demand for housing in some form is still present. Is home ownership a problem for those with less than stellar credit? Yes. Can this problem be fixed? In many cases yes. More on that at a later date. Is real estate still a good year to year investment? Yes especially if you are an investor and thinking of purchasing homes for rental income.
Once again I have to tell you please do not believe all that you read in the national media. Montgomery County, Texas is still a great market. It is still a vibrant market with a ton of opportunities available. It is a good time to sell and buy.
See you later.
Ron
Total unit sales of single family residences and townhomes/condos for the first three months of 2008 vs 2007 were down 18.5%. Big number right? Not so fast. Single family residence and townhomes/condo rentals for the same period were up 8.5% At this point we are left with a year-to-year decline of about 10%. But, and I do not have access to these numbers, rumor has it that apartment rentals are up at least that much if not more. And let's remember that the foreclosure rate in Texas is up only about 11% from the previous year and not 65% as advertised so blatantly on CNN today.
Conclusion? That the demand for housing in some form is still present. Is home ownership a problem for those with less than stellar credit? Yes. Can this problem be fixed? In many cases yes. More on that at a later date. Is real estate still a good year to year investment? Yes especially if you are an investor and thinking of purchasing homes for rental income.
Once again I have to tell you please do not believe all that you read in the national media. Montgomery County, Texas is still a great market. It is still a vibrant market with a ton of opportunities available. It is a good time to sell and buy.
See you later.
Ron
Friday, May 9, 2008
Home renovation
The Joint Center for Housing Studies at Harvard University in its’ recently released quarterly LIRA (Leading Indicator for Remodeling Activity) report predicts that homeowner remodeling activity will continue to fall through the remainder of 2008 at an annual rate of about 4.8%. When I read this I thought okay what if I am going to buck the trend and remodel or renovate my home for future sale. Where is the best place to put my money in order to recover my investment? What are the six best home renovation improvements I can make? After doing some research here is what the experts say.
1 – The number one improvement you can make is replacing or improving your siding. Curb appeal. Exactly what we realtors preach. That first impression….you only get one chance at it. Unless you have an all brick home replace what siding is there. Take at look at your soffits, porch ceiling and the second floor exterior walls. What shape are those in? PLEASE if you have a brick masonry home DO NOT paint the brick. Nothing in my opinion looks worse than painted brick. In five years it is going to look like badly painted brick. There are ways to restore brick and make it look great again. Estimates of your cost recovery rate on this improvement are about 88%.
2 – Build a deck. You gain living and entertainment space with this improvement. Remember to keep it proportional with your back yard. A future buyer may have small kids and want that swing set in there somewhere. Your cost recovery rate on this improvement can be about 80%.
3 – Spruce up your kitchen. Fresh paint, new drawer and cabinet handles do not cost that much. Think about a new cook top. A friend of mine just bought a new electric one for under $1,000. All of these improvements can be relatively inexpensive. Please avoid the gaudy wallpaper borders. Remember you are fixing the kitchen up for the next buyer. Cost recovery for this area of your home can be about 80%.
4 – Replace your windows with energy-efficient windows. The future buyers of your home will not only look at the home itself but will also take into consideration the cost of living in that home. Buying good windows can lower your utility bills and improve the value and salability of your home. Please make sure you look for the proper certification of your new windows. You do not want to just buy any old window. Your cost recovery rate here can be about 80% plus lower utility bills.
5 – Finally the bathroom. This is where you put on your best outfits. Do you want to do that in a dirty dingy room? Of course not. Take a look around at your faucets, showerhead, paint, countertops, toilet and bathtub. Most of those items are not that expensive. If you are going to replace that faucet please remember to turn off the water supply first. You will probably recoup about 78% of your investment in this area.
6 – Adding crown molding to almost any room will really dress it up. This is really a simple and inexpensive improvement. Almost any DIY’er can undertake this project. Remember I said almost not all DIY’ers. This simple fix can add elegance to almost any room.
Please remember to plan carefully when deciding on which projects to undertake. Almost any realtor will be more than happy to discuss with you what improvements will help your home sell. Just remember that the realtor you check with should be the one to get the listing.
Why don't you start a project for Mother's Day?
I hope you have a great weekend!
Ron
1 – The number one improvement you can make is replacing or improving your siding. Curb appeal. Exactly what we realtors preach. That first impression….you only get one chance at it. Unless you have an all brick home replace what siding is there. Take at look at your soffits, porch ceiling and the second floor exterior walls. What shape are those in? PLEASE if you have a brick masonry home DO NOT paint the brick. Nothing in my opinion looks worse than painted brick. In five years it is going to look like badly painted brick. There are ways to restore brick and make it look great again. Estimates of your cost recovery rate on this improvement are about 88%.
2 – Build a deck. You gain living and entertainment space with this improvement. Remember to keep it proportional with your back yard. A future buyer may have small kids and want that swing set in there somewhere. Your cost recovery rate on this improvement can be about 80%.
3 – Spruce up your kitchen. Fresh paint, new drawer and cabinet handles do not cost that much. Think about a new cook top. A friend of mine just bought a new electric one for under $1,000. All of these improvements can be relatively inexpensive. Please avoid the gaudy wallpaper borders. Remember you are fixing the kitchen up for the next buyer. Cost recovery for this area of your home can be about 80%.
4 – Replace your windows with energy-efficient windows. The future buyers of your home will not only look at the home itself but will also take into consideration the cost of living in that home. Buying good windows can lower your utility bills and improve the value and salability of your home. Please make sure you look for the proper certification of your new windows. You do not want to just buy any old window. Your cost recovery rate here can be about 80% plus lower utility bills.
5 – Finally the bathroom. This is where you put on your best outfits. Do you want to do that in a dirty dingy room? Of course not. Take a look around at your faucets, showerhead, paint, countertops, toilet and bathtub. Most of those items are not that expensive. If you are going to replace that faucet please remember to turn off the water supply first. You will probably recoup about 78% of your investment in this area.
6 – Adding crown molding to almost any room will really dress it up. This is really a simple and inexpensive improvement. Almost any DIY’er can undertake this project. Remember I said almost not all DIY’ers. This simple fix can add elegance to almost any room.
Please remember to plan carefully when deciding on which projects to undertake. Almost any realtor will be more than happy to discuss with you what improvements will help your home sell. Just remember that the realtor you check with should be the one to get the listing.
Why don't you start a project for Mother's Day?
I hope you have a great weekend!
Ron
Wednesday, May 7, 2008
Are you a veteran or reservist?
Are you a veteran or serving member of the armed forces of the United States? Were you or are you currently a member of a reserve unit or National Guard unit?
Why do I ask the questions? Because most of you are missing out on some great opportunities that are available to you when it comes to real estate. There are special programs available to armed forces veterans that are truly unbelievable. I was shocked when I received my update briefing yesterday. We never had it so good when it comes to real estate.
I know you are thinking that I mean the usual VA program. Yes I am but I am also speaking of special programs that are available to Texas veterans. Texas veterans are not just veterans with a home of record in Texas but any veteran or serving member who has lived in Texas for a year or more.
I am a veteran. I served as a regular officer in the U.S. Marine Corps from 1972 to 1980. I have two sons currently serving in the Army. My father and both of my grandfathers served. I know and understand veterans. I want to help you.
The programs available to you are truly extraordinary. If you would like more information please email me today.
Thanks and have a great day.
Ron
Why do I ask the questions? Because most of you are missing out on some great opportunities that are available to you when it comes to real estate. There are special programs available to armed forces veterans that are truly unbelievable. I was shocked when I received my update briefing yesterday. We never had it so good when it comes to real estate.
I know you are thinking that I mean the usual VA program. Yes I am but I am also speaking of special programs that are available to Texas veterans. Texas veterans are not just veterans with a home of record in Texas but any veteran or serving member who has lived in Texas for a year or more.
I am a veteran. I served as a regular officer in the U.S. Marine Corps from 1972 to 1980. I have two sons currently serving in the Army. My father and both of my grandfathers served. I know and understand veterans. I want to help you.
The programs available to you are truly extraordinary. If you would like more information please email me today.
Thanks and have a great day.
Ron
Monday, May 5, 2008
Contracts
Okay I missed last Friday. Sorry about that but I hope you will forgive me when I tell you I got rear ended in an auto accident the previous and was trying to find a new car. By the way he got the ticket.
Today let's talk about submitting a contract to buy a home. It is not, as most people think just about the price. There are three basic elements to making an offer on a home. Those three elements are price, time and terms. Price is all that most people think about because it is all about the money. However time and terms can play a major roll in trying to get a better price. Time of course involves when you close the transaction. Do you need to close on the home in two weeks and move in or can you afford to wait three months until the end of the school year so the buyer's kids can finish the term? That decision can play a major roll in the price.
Terms involves everything from who pays for the one year home warranty, escrow costs, title insurance, survey, seller lease backs, on and on and on. All of these can play a vital roll in getting the deal you want.
Please do not expect to make a "low ball" offer and get all of the time and terms you want. It does take two sides to make a deal. I have a buyer who has a wonderful home priced below the market because she has to move. She recently received an offer that was 22% below her asking price. Needless to say she rejected the offer and told the buyer to go away. You should not pay more than a home is worth in the current market but please do not expect to pay a whole lot less either. You can possibly however with a good agent use the time and terms element to your advantage.
Ron
Today let's talk about submitting a contract to buy a home. It is not, as most people think just about the price. There are three basic elements to making an offer on a home. Those three elements are price, time and terms. Price is all that most people think about because it is all about the money. However time and terms can play a major roll in trying to get a better price. Time of course involves when you close the transaction. Do you need to close on the home in two weeks and move in or can you afford to wait three months until the end of the school year so the buyer's kids can finish the term? That decision can play a major roll in the price.
Terms involves everything from who pays for the one year home warranty, escrow costs, title insurance, survey, seller lease backs, on and on and on. All of these can play a vital roll in getting the deal you want.
Please do not expect to make a "low ball" offer and get all of the time and terms you want. It does take two sides to make a deal. I have a buyer who has a wonderful home priced below the market because she has to move. She recently received an offer that was 22% below her asking price. Needless to say she rejected the offer and told the buyer to go away. You should not pay more than a home is worth in the current market but please do not expect to pay a whole lot less either. You can possibly however with a good agent use the time and terms element to your advantage.
Ron
Wednesday, April 30, 2008
April guess on stats
As a lot of you know the annual NFL college draft was last weekend. Prior to the draft almost all sports writers published a mock draft. In some cases they published several versions changing them on an almost daily basis. From the mock drafts I read and the actual draft results I saw, few if any of the writers were correct in their guesses. It will probably be the same with this blog today. I am going to "mock draft" the April single family residence sales numbers for Montgomery County, Texas about three weeks before they actually come out. I can't figure out if I am being brave or just not so smart in doing this. Drop me an email and let me know what you think. Here we go.
I think the bottom has been hit. Yes we will probably be down from the sales numbers of April, 2007 but I also believe that at least two of the MLS areas in the county will be up over March, 2008, one area will come close to the March, 2008 numbers and that the fourth will still be down some but not hugely. I think that the average sales price will be somewhat stagnant as compared to the increases we have seen in the past. This price stagnation is not bad or indicative of a major trend in my opinion but only reflects the current market situation.
With the school year approaching its' end, our warm lake water weather here and interest rates still very low I think we will see our sales numbers improving. Okay, please remember this is a "mock draft" only. When the final April numbers are published in about three weeks I will grade myself just as the sports writers grade the NFL teams. Hopefully I will do better than the "C" one well known Houston sports writer gave our beloved Houston Texans.
I hope you are having a great week.
Ron
I think the bottom has been hit. Yes we will probably be down from the sales numbers of April, 2007 but I also believe that at least two of the MLS areas in the county will be up over March, 2008, one area will come close to the March, 2008 numbers and that the fourth will still be down some but not hugely. I think that the average sales price will be somewhat stagnant as compared to the increases we have seen in the past. This price stagnation is not bad or indicative of a major trend in my opinion but only reflects the current market situation.
With the school year approaching its' end, our warm lake water weather here and interest rates still very low I think we will see our sales numbers improving. Okay, please remember this is a "mock draft" only. When the final April numbers are published in about three weeks I will grade myself just as the sports writers grade the NFL teams. Hopefully I will do better than the "C" one well known Houston sports writer gave our beloved Houston Texans.
I hope you are having a great week.
Ron
Monday, April 28, 2008
Mortgages/Credit Scores/PMI
I would like to address the current state of mortgages today. I spent several hours last week talking with a few loan officers and getting their opinions about what is going on in the market.
These loan officers told me that interest rates have gone up recently and that credit requirements are still fairly tight. Interest rates are still very good but have increased at least half-a-point in the last week. This may continue for a little while. If you are shopping for that home now please consider locking in your rate today.
What about credit scores? Well if you don't have at least a 620 mid credit score you can forget about a mortgage at this time. If you have a credit score between 620 and 680 you had better have 5% to 10% down payment available. You can go FHA which has some good programs available requiring less of a down payment. Please do not discount the FHA route. They have some great interest rates available.
If your credit score is between 680 and 720 you probably can get a conventional loan. Can you get by with no down payment in this credit score range? Possibly, but it depends on your overall financial condition, debt to income ratio etc.
If you have a credit score of 720 and above you are in great shape. Your options increase when your score is above that magic number. You have a chance of avoiding PMI when your score is in this area.
What about PMI? You are required to pay PMI unless your loan amount is less than 80% loan to value. PMI rates today range anywhere between .28% and .78%. What does that mean in real dollars? A bunch of money. With a PMI rate of .5% on a $150,000 loan your monthly PMI charge would be $62.50. $750 a year for PMI. That will by a lot of kid's clothes. If you figure you are going to live in that house for ten years your total PMI charge would be $7,500. That is a lot of money!!
Even if you are not thinking of buying for six months to a year it would be a good idea to go to work on increasing your credit score today. Do you think that is something you can do yourself? You may want to stop and think about that first. If you want to start but aren't sure how please consider giving me a call. I have a solution that can and will help.
I hope you are having a great Monday. Beautiful weather today.
Ron
These loan officers told me that interest rates have gone up recently and that credit requirements are still fairly tight. Interest rates are still very good but have increased at least half-a-point in the last week. This may continue for a little while. If you are shopping for that home now please consider locking in your rate today.
What about credit scores? Well if you don't have at least a 620 mid credit score you can forget about a mortgage at this time. If you have a credit score between 620 and 680 you had better have 5% to 10% down payment available. You can go FHA which has some good programs available requiring less of a down payment. Please do not discount the FHA route. They have some great interest rates available.
If your credit score is between 680 and 720 you probably can get a conventional loan. Can you get by with no down payment in this credit score range? Possibly, but it depends on your overall financial condition, debt to income ratio etc.
If you have a credit score of 720 and above you are in great shape. Your options increase when your score is above that magic number. You have a chance of avoiding PMI when your score is in this area.
What about PMI? You are required to pay PMI unless your loan amount is less than 80% loan to value. PMI rates today range anywhere between .28% and .78%. What does that mean in real dollars? A bunch of money. With a PMI rate of .5% on a $150,000 loan your monthly PMI charge would be $62.50. $750 a year for PMI. That will by a lot of kid's clothes. If you figure you are going to live in that house for ten years your total PMI charge would be $7,500. That is a lot of money!!
Even if you are not thinking of buying for six months to a year it would be a good idea to go to work on increasing your credit score today. Do you think that is something you can do yourself? You may want to stop and think about that first. If you want to start but aren't sure how please consider giving me a call. I have a solution that can and will help.
I hope you are having a great Monday. Beautiful weather today.
Ron
Friday, April 25, 2008
Charity
Today I have to let you know about two great charity events Keller Williams - Conroe is getting ready to host. On May 19, 2008 we will be hosting our second annual Realtor Helping Realtor golf tournament. The event will be held at River Plantation Golf Club. The event includes an 18 hole golf scramble, silent auction and dinner. Last year this event raised over $40,000 for a local realtor needing assistance with a family medical situation. We hope to surpass that amount this year. If you are interested in playing or donating to the silent auction please drop me an email or give me a call.
On Saturday, May 3rd we are having our annual Garage Sale. This will be held at our office at 2200 N. FM 3083 W. from 9:00AM until 2:00PM. We will also be offering free document shredding. If you have items you would like to donate please let me know. All proceeds from this event go to our KW Cares charity.
Have a great weekend and please stop by the open house at 2505 Amy Lee Dr. on Saturday from 2:00PM - 4:00PM.
Ron
On Saturday, May 3rd we are having our annual Garage Sale. This will be held at our office at 2200 N. FM 3083 W. from 9:00AM until 2:00PM. We will also be offering free document shredding. If you have items you would like to donate please let me know. All proceeds from this event go to our KW Cares charity.
Have a great weekend and please stop by the open house at 2505 Amy Lee Dr. on Saturday from 2:00PM - 4:00PM.
Ron
Thursday, April 24, 2008
Special - Thursday
Interest have been rising this week. I was told today that loans last week that were at 5.75% are now at 6.00%. 10 year Treasuries were down today so we may see more rate increases. Please don't wait to lock in your rate today.
If you are a resident of Montgomery County you have probably received your new tax appraisal in the mail. Please take a close look at this. I have received several calls from friends and clients who have been shocked at the amount of the increase in the appraised value of their home. In case you can't find your appraisal the Montgomery County Appraisal District website is www.mcad-tx.org Records are available there.
If you are a resident of Montgomery County you have probably received your new tax appraisal in the mail. Please take a close look at this. I have received several calls from friends and clients who have been shocked at the amount of the increase in the appraised value of their home. In case you can't find your appraisal the Montgomery County Appraisal District website is www.mcad-tx.org Records are available there.
Wednesday, April 23, 2008
I learned my first lesson on blogging. Never promise to do a blog three times a week and then get sick. Sorry but I was down and out with a cold/flu. A real bummer with this great spring weather.
We were going to talk about the price volatility index and the price appreciation index. I could give you the long technical explanation but I really do not want to put you to sleep. Believe me it would. If you want the technical explanation drop me an email and I will send it to you. Suffice to say that they are indexes calculated from recent data (from two previous quarters to five years) to predict how prices will react in the near term future (two years out). The predictions for the Houston-Sugar Land-Baytown MSA are good. They show no disasters on the horizon. Price acceleration shows some signs of slowing but the good news is that price volatility is very close to stable. No wild downward price crashes similar to what has happened in Florida, California and Arizona are expected.
So what is keeping people from buying? They only thing I can think of is gas prices, the news media, fear itself and of course credit scores below 620. Interest rates are experiencing the normal weekly up and down swings but are still very low. FHA is offering some great programs for buyers with minimal down payments. They are very good deals with low interest rates. And if you have a credit score below 620 those problems can be addressed also. Just drop me an email if you would like to know more about that.
Now that I am well again and have experienced my once-a-year illness I will be getting these out three times a week.
Have a great day.
Ron
We were going to talk about the price volatility index and the price appreciation index. I could give you the long technical explanation but I really do not want to put you to sleep. Believe me it would. If you want the technical explanation drop me an email and I will send it to you. Suffice to say that they are indexes calculated from recent data (from two previous quarters to five years) to predict how prices will react in the near term future (two years out). The predictions for the Houston-Sugar Land-Baytown MSA are good. They show no disasters on the horizon. Price acceleration shows some signs of slowing but the good news is that price volatility is very close to stable. No wild downward price crashes similar to what has happened in Florida, California and Arizona are expected.
So what is keeping people from buying? They only thing I can think of is gas prices, the news media, fear itself and of course credit scores below 620. Interest rates are experiencing the normal weekly up and down swings but are still very low. FHA is offering some great programs for buyers with minimal down payments. They are very good deals with low interest rates. And if you have a credit score below 620 those problems can be addressed also. Just drop me an email if you would like to know more about that.
Now that I am well again and have experienced my once-a-year illness I will be getting these out three times a week.
Have a great day.
Ron
Monday, April 14, 2008
Prices
With what we have all read about the housing market over the last year I would bet that at times we have all wondered what the future holds for the value of our homes. Although my crystal ball is currently broken and even when it wasn't broken it didn't work all that well there is no way of knowing what the future holds. There is data available though to give us a glimpse of what might happen in the future.
PMI Mortgage Insurance Co. publishes a wealth of data. One of the statistics they calculate is the U.S. Market Risk Index score (SM of PMI Mortgage Insurance Co.). This score translates to a percentage that predicts the probability that house prices will be lower in two years. For example, a Risk Index score of 100 means there is a 100 percent chance that the OFHEO (Office of Federal Housing Enterprise Oversight) All Transactions House Price Index for that MSA (Metropolitan Statistical Area) will be lower two years from the date of the data. Sorry for all of the initials but you know the government.
How did the Houston-Sugar Land-Baytown MSA area rate? In both the third and fourth quarters of 2007 this index showed less than 1%. That in my opinion is great news. Of the top 50 housing markets in the US only thirteen showed an index of 1% or less for these two quarters and five of those thirteen markets were in Texas. Good news for us and our state.
Now you are probably saying "great my home won't decrease in value but will it increase?". We will address price volatility and appreciation later this week.
Hopefully by making you aware of this data I can make you a better educated real estate consumer. It is all not doom and gloom, especially in Texas.
I hope you had a great weekend and will have a great work week.
Ron
PMI Mortgage Insurance Co. publishes a wealth of data. One of the statistics they calculate is the U.S. Market Risk Index score (SM of PMI Mortgage Insurance Co.). This score translates to a percentage that predicts the probability that house prices will be lower in two years. For example, a Risk Index score of 100 means there is a 100 percent chance that the OFHEO (Office of Federal Housing Enterprise Oversight) All Transactions House Price Index for that MSA (Metropolitan Statistical Area) will be lower two years from the date of the data. Sorry for all of the initials but you know the government.
How did the Houston-Sugar Land-Baytown MSA area rate? In both the third and fourth quarters of 2007 this index showed less than 1%. That in my opinion is great news. Of the top 50 housing markets in the US only thirteen showed an index of 1% or less for these two quarters and five of those thirteen markets were in Texas. Good news for us and our state.
Now you are probably saying "great my home won't decrease in value but will it increase?". We will address price volatility and appreciation later this week.
Hopefully by making you aware of this data I can make you a better educated real estate consumer. It is all not doom and gloom, especially in Texas.
I hope you had a great weekend and will have a great work week.
Ron
Friday, April 11, 2008
2007 vs 2006
How did real estate sales in Montgomery County do in 2007 vs 2006? Not as bad as the rest of the country. For the purposes of this blog I will concentrate on single family residential unit sales. Yes, unit sales for this segment of the real estate industry were down in Montgomery County in 2007 vs 2006. County wide sales were down 4.15%. All four MLS areas comprising Montgomery were down. MLS area 39 was down the most, suffering a decline of 5.52%. MLS area 40 was down the least with a decline of only about one-third of one percent. Yet even with this decline, sales for 2007 were the second best on record. They were better than 2005.
How did average sales prices do? They went up. Even with a decline in sales the average sales price in each MLS area increased. And, get this, the average days on the market decreased also.
Amazing....sales decrease yet prices increase and days on the market decrease. Not exactly what is being portrayed by the national media.
Please remember that all real estate is local. What is happening in another part of the country is not necessarily happening here. In fact if you take a look at the top fifty markets in the US the Houston-Sugarland-Baytown MSA has a Risk Rank of 5 (the best ranking) and a Risk Index of <1 as published by PMI Mortgage Insurance Co. (More on what these mean next week.) These are great numbers for this areas real estate market.
Remember that Winston Churchill said "All we have to fear is fear itself". Is fear keeping you out of the real estate market right now? When you look at the numbers presented above is that fear really justified? Please make your decision based on local facts and not what the "bad news networks" are saying.
If you would like more information please send me an email. The weather looks great for this weekend so please have a great one. Cruise some neighborhoods, look at some homes and give me a call.
Ron
How did average sales prices do? They went up. Even with a decline in sales the average sales price in each MLS area increased. And, get this, the average days on the market decreased also.
Amazing....sales decrease yet prices increase and days on the market decrease. Not exactly what is being portrayed by the national media.
Please remember that all real estate is local. What is happening in another part of the country is not necessarily happening here. In fact if you take a look at the top fifty markets in the US the Houston-Sugarland-Baytown MSA has a Risk Rank of 5 (the best ranking) and a Risk Index of <1 as published by PMI Mortgage Insurance Co. (More on what these mean next week.) These are great numbers for this areas real estate market.
Remember that Winston Churchill said "All we have to fear is fear itself". Is fear keeping you out of the real estate market right now? When you look at the numbers presented above is that fear really justified? Please make your decision based on local facts and not what the "bad news networks" are saying.
If you would like more information please send me an email. The weather looks great for this weekend so please have a great one. Cruise some neighborhoods, look at some homes and give me a call.
Ron
Thursday, April 10, 2008
Day One
Okay here we go. My first shot at blogging and providing you with good information about real estate through this media. Who knows maybe the great American novel will be next. I will be covering the Lake Conroe, Conroe and Montgomery County areas. For those of you who don't know those areas they are just north of Houston. I will be attempting to provide you with up-to-date information on what is going on in the real estate market in these areas.
I will probably start with some basic information and education on the value of your home and what you might expect in the future. This may take a few days but I think will be well worth the effort.
My first piece of advice is if you are considering buying waterfront property on Lake Conroe do not wait long to make an offer. Properly priced property on the lake is moving very fast. Most of these listings are only lasting a few days. Give me a call and we will go take a look!
Interest rates? Low! Imagine 30 years at today's low interest rates. You can't beat'em.
If you have any questions or subjects on which you might like information please send me an email. My contact information is displayed lower on the page. Take a look at the cool SCUBA pictures if you get a chance too.
Have a great day and see you tomorrow.
Ron
I will probably start with some basic information and education on the value of your home and what you might expect in the future. This may take a few days but I think will be well worth the effort.
My first piece of advice is if you are considering buying waterfront property on Lake Conroe do not wait long to make an offer. Properly priced property on the lake is moving very fast. Most of these listings are only lasting a few days. Give me a call and we will go take a look!
Interest rates? Low! Imagine 30 years at today's low interest rates. You can't beat'em.
If you have any questions or subjects on which you might like information please send me an email. My contact information is displayed lower on the page. Take a look at the cool SCUBA pictures if you get a chance too.
Have a great day and see you tomorrow.
Ron
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