Betty's Journal

2011-08-30T17:30:00.001-05:00

Is Your House Moving?

We are still in August and in extreme heat in this area of the country! We have been over 100° from July 31 to August 17. We broke that record on August 18 and turned around and went back to over 100° forecasted unto the end of the month and maybe longer. It hasn't been this hot since 1998. When it is this hot, there is no rain and therefore our foundations begin to move. With our wonderful clay soil, it expands when it gets wet and contracts when it becomes dry. So your foundation is probably moving!

But don't get in a hurry to get it fixed. In my experience in talking with engineers and foundation companies, when you're going through a drought, you need to wait to see how the house settles out once we get rain. Of course if we get a lot of rain, your house could also move.

So the best thing you can do is to keep the outside of your house evenly watered. The sprinkler system does help but you need to make sure it is in working order and that it touches all parts of your yard. The biggest culprit of foundation movement are large trees and shrubs and bushes that are planted too close to the house. They suck up all the water right under your house where it is the most moist. Sometimes soaker hoses can help. But they should be put 6 inches away from the slab.

But now that we are in the restrictive watering schedule for most of our cities, you need to take extra care that your foundation is watered when you can get the water.

2011-08-29T17:25:00.001-05:00

Our Business

We were thrilled with our eight celebrations for thethis month. I wish we could relive the months of July and August again! It was just like the good old days. We would list the house and get multiple contracts or else get an offer that was what we were looking for within the first two weeks of putting it on the market. That does not mean that we didn't work hard to get it ready and that we didn't price it right because we did both of those things, but sometimes it just takes longer for us to get the right buyer. We found our buyers the right houses also and they had to move on the properties quickly or they were gone.

I wish we could sustain the momentum, but with school starting it has certainly slowed down, which is normal. The economic atmosphere with the continual depressing news and world wide happenings that are affecting our economy, all make the buyer and seller uneasy. I don't blame them, but I think they're going to be very sorry when they see the interest rates start climbing and seeing inflation increasing the prices of homes so they are out of the market before they even begin. In fact I have seen the interest rates climb a quarter of a point this week but we are still close to 4 1/2% which is really marvelous.

All of our cities this month have done better than what they did a year ago but now we are not comparing ourselves to the tax credit that we went through the first six months of last year. So we should be better and we are. As our contracts increase and our inventory goes down, our prices should go up and they have in most of our cities. So that should be encouraging to sellers that our prices are stable or going up, and it will should be encouraging to buyers that we have such low interest rates. So please call us if you have questions about the market.

2011-08-27T16:59:00.003-05:00

My Car Accident
I went back to the hand Doctor to have one of my pins removed. I have three pins in my left hand.

Well, it was not fun. The doctor said my bone was healing well and I had good bones because it was tough pulling the pin through two bones and it was about an inch and a half long. Before the doctor came in, James told me to look on the tray and there were these pliers. These are what he used to pull out that pin. I'm not sure I care about my bones being strong!

I did have good news this morning at the ortho doctor. He said I could live with a new brace instead of that huge boot on my left foot. Anyone need a boot? I can also traded in my hard therapeutic shoe on the right foot with a good supporting tennis shoe. I still will not be stylish but at least I will have some decent shoes on rather than walking around in a boot and a hard shoe being completely unbalanced! Besides, getting those boots on every morning were a huge job for James, my sweet husband, to do.

2011-08-26T18:39:00.000-05:00

August Market Watch

We have really had a very good August in the North Dallas, Collin County area. When houses were listed at a good price and in good condition, the buyers were there waiting for us to come on the market. So they sold very quickly. Our buyers had to move a little faster in order to not have competition and to get the home they were looking for. The average sales price in most of our cities has increased, ever so slightly. The number of sales in August are higher than the sales a year ago, which is great. Our contract pendings are up and the inventory is down which should make the prices go up.

Did you notice the article in the Dallas Morning News paper with the upper end homes being leased because they couldn't sell them? Some of the buyers in that upper range decided it was better to lease than to buy. Yet at the end of the article, it states it is cheaper to buy a home in the Dallas area than it is to rent! I love it when the good news is put at the end of the article! With prices flat and interest rates closer to 4 1/2%, I don't see how a buyer could make a mistake in buying if they are planning to do so in the near future.

Yes, we can't see into the future, but from past experience, we won't see this type of market again. I know it's scary out there but if you want to move up or if you are a first-time buyer, this is the time to make your move. Let's put this in perspective. When I entered Real Estate in 1981, interest rates were at 18% and 21%. Could you afford a house at that interest rate? Not likely a very nice home at that rate. So call us and see if it's a good idea for you to buy or sell.

2011-08-20T16:56:00.003-05:00

Accident Update, August 19.

Good news is I'm getting my new Infinity. Bad news is I still can't drive. My sweet husband is still my taxi driver. And my Team helps me out.

I have a round of doctor appointments next week. Hopefully I will get some of these boots off. But the left hand is my problem. It still hurts too much and is unusable.

But, I have this great new program. It's called Dragon Dictation. Even with my Texas accent, it can understand what I say and type it for me. That's what it's doing for me right now! I'm still learning, but it's doing very, very well. Haven't we come a long way, Baby! It's not very expensive and well worth it. You'll have to try it. It'll probably make me very lazy!

2011-08-19T16:45:00.000-05:00

My Accident Update for Thursday, 8-11-11

We went to the hand doctor today and he unwrapped and cleaned gause around the pins. He continued to show me how I should clean them every day and I died just looking at pins sticking out of my hand! Have you ever had pins?? Ugh!

After they put the cast back on I hurt terribly rest of day while pain medicine did not help. Finally figured out there was pressure on the pins so I almost unwrapped it for bed and the pain subsided.

Went to Health South to get the brace adjusted to be raised around the pins and not hit them. Don't like the looks of this brace but boy it feels so much better. Medicine doesn't affect me much but am slowing a whole lot in taking it.....after 3.5 weeks, pain is much, much less. Very, very thankful since I and my Team are working very hard as we are busy!

2011-08-05T15:03:00.000-05:00

"Woulda - Coulda- Shoulda"

It is the mantra of people who missed a great deal. It's the theme song of the procrastinator. It's the refrain that reminds us of the one that got away.

Some people are still beating themselves up because they didn't recognize the housing bubble was really going to burst. It is impossible to change the past but will they see the signs of the next housing trend?

In the past four years, prices have adjusted with 30% corrections nationally and much more in areas with high percentages of foreclosures. New homes are almost non-existent. Interest rates are slightly above record lows. Consumer goods are skyrocketing; our budget deficit and national debt are staggering and escalating inflation appears certain.

"Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing." states Shawn Tully, Senior Editor at-Large for Fortune magazine in a March 28, 2011 article.

"If I would have known that this was the best buyer's market ever, I could have taken advantage of the prices and interest rates; I should have fixed my cost of housing for years to come." Don't catch yourself saying this. You owe it to yourself and your family to get firsthand information to see what your options really are.

2011-08-01T13:21:00.001-05:00

A typical household uses 185 to 300 gallons of water a day and the majority of it goes down the drain from the toilet and the shower. Updating your commodes will serve as a conservation effort while lowering your water bill.

Today's toilets use less water, prevent staining and resist clogging better than the older toilets and you might be surprised at how easy they are to install. Replacements generally cost from $100 to $300.
Toilets made in the 1950's used, on average, seven gallons per flush. Compare that with one that only uses 1.6 gallons per flush and it's a big saving. Multiply by the times a toilet is flushed in a year and the number of toilets in your home and it will save a lot of water.

Gallons of Water Saved in a Year with 1.6 gpf
Age of Toilet	Gallons Per Flush	Flush 3 times a day	Flush 5 times a day
Prior to 1950's	7.0	5,913	9,855
1960's	5.5	4,271	7,118
1980's	3.5	2,081	3,468
After 1994	1.6	-	-

Watch this video to see how easy the project is done and even if you decide to hire a plumber, you'll have a better understanding of how it works.

2011-07-29T13:55:00.001-05:00

Drugs and Teens

Columbia University made study that clearly shows that teens who use addictive substances have a far, far greater chance of becoming addicted than those who try drugs as an adult.

Research has shown that teen brains are still forming. Tobacco, alcohol, drugs---they all set their hooks quicker and deeper in the adolescent mind. One in 4 who use drugs younger than 17 will become addicted. That's scary and eye opening.

This information came from Steve Blow's column in DMN.

2011-07-28T13:07:00.001-05:00

A Different Economy

I was reading an artcle in the Dallas Morning News about the state of our econmy and debt ceiling arguments that are in Congress. We are feeling the deferred pain from 25 years of excess spending during which people are trying to rebuild their depleted savings. In the past, we would just charge to tie us over if we lost our job and we went into debt deeper and deeper. This allowed spending to grow faster than incomes and helped cushion every recession before.

Trouble is consumer spending is not going to return to the growth rates of the 80's and 90's. Even Walmart has noticed that "customers are running out of money by end of the month." Spending has not fallen below 3% per capita in a recession but we are seeing it down almost 7% and still has not begun to recover. It is a complimented problem we are facing.

2011-07-20T12:49:00.000-05:00

I Want a Bigger/Nicer Home but...

There are homeowners that would like to have a larger/nicer home but are patiently waiting for the market to improve. A frequently heard objection is that they can't sell their home for what it is currently worth.

Buying up in a down market is actually advantageous because while you might get less for the home you're selling, you're also getting the larger home for less. For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table. However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you're waiting for the market to improve, it dramatically increases your cost of housing with higher payments. The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision.

2011-07-15T12:35:00.001-05:00

Targeting the Mortgage Interest Deduction

It's obviously going to be a Herculean task for Congress to balance the budget and reduce the deficit. It's sort of like the country song lyric that goes "everyone wants to go to Heaven but nobody wants to go now." It is estimated that the mortgage interest deduction cost the government $100 Billion last year which is why it is a target for cuts.

The Mortgage Interest Deduction has been part of Income Tax laws in this country since 1913. The United States of America is one of the few countries in the world that allow such a deduction. Our goverment has always supported homeownership as is evidenced in the different tax benefits it receives.

Mortgage interest deuction up to $1,000,000 in acquisition debt on a principal residence and second home
Deduction of interest on Home Equity debt of $100,000 over acquisition debt used for any purpose
Capital gain exclusion on up to $500,000 for married couples filing jointly and $250,000 for single homeowners
Favorable long-term capital gain rates if gain exceeds exclusion limits
Property tax deduction

There is an interesting relationship between a good economy and a healthy housing market. Contrasted to profits from the stock market which tend to be plowed back into other investments, profits from home sales tend to be spent on consumer products that directly benefit the economy.

The National Association of REALTORS supports the MID and reports that one job is created for every two homes sold. It further states that $60,000 is pumped into the economy for each home sold and that homeownership accounts for over $2 Trillion of the U.S. gross domestic product.

American homeowers are currently paying 80-90% of all federal income tax collected. Some economists believe that a healthy housing market is a leading indicator for economic recovery and that tampering with a significant homeowner benefit like the mortgage interest deduction would hurt the economy.

2011-07-13T10:03:00.002-05:00

How much will college cost your six year old?

You have a few years to go before Junior will be packing off to college. But you want to plan ahead based on anticipated costs -- not now -- but on reckoning day! Here's the place to go. The folks at the non- profit College Board provide a plethora of information for prospective college students - and of course for their nail biting parents.

Just go to this great place where you will find their College Cost Calculator. You can use this to see how much college will cost by the time Junior enrolls. If you have a particular college in mind, you can project from actual costs. If not, you can just use the average costs provided there. The calculator instantly presents you with the bad news - but to ease the pain they provide you with a ton of tips that help you (and Junior) get there a little easier.

Lots of good information here!

Click Here for This Great Place

2011-07-11T10:45:00.000-05:00

Delays are almost inevitable when flying - but there are some things you can do to minimize these aggravations. The National Air Traffic Controllers Association provides travelers with this neat place to visit before booking your flight - and a place to come back to on the day you travel.

Before booking you can check for the best and worst days and times to fly from and into any specific airport. The flight controllers have joined forces and share their insider tips on how to avoid delays at some of the busiest airports across the country. They share everything from the best time of day to fly out of a specific airport to the best airports to connect through. And of course you can check the status of your specific flight on your day of travel.

Good information from these good guys!

Click Here for This Cyber Trick

2011-06-11T10:00:00.002-05:00

Found this rather interesting article on Kiplinger.com. It was written by Cameron Huddleston!

10 Great Gifts for College Grads

Help them get a head start in the real world.

Some college seniors may be hoping Mom and Dad will spring for an all-expenses-paid trip to Europe so they can go "find themselves" or just take time off before starting the daily grind of 9-to-5 life. Aside from the fact that most parents can't afford this sort of gift, it won't help new grads get a head start in the real world.

If you're looking for practical graduation gift ideas, consider these:

Interview attire. It's crucial to project the right image if you want to get a job and get ahead. But college seniors are more likely to have closets filled with shorts, jeans and t-shirts than work-appropriate attire. So take your grad shopping for a good suit. For families on a budget, give a nice tie, dress shirt and perhaps some sensible shoes. And share these ten tips with your grad so he or she can ace an interview.

Financial advice. If your child knows little about the basics of investing or personal finance, help her learn with a few good books. For easy-to-read primers, see 4 Great Financial Books for Recent Grads. Or get her a subscription to Kiplinger's Personal Finance magazine for just $12.

Gym membership. Help your grad release steam after a long day of work at a new job with a gym membership, the price of which tends to drop in spring and summer (so you'll get a deal).

Kitchenware. This is a gift people often think of for newlyweds. But college grads can benefit from having pots and pans to cook meals at home and save. Plus, kitchenware tends to go on sale in May, so you should be able to find deals.

Grocery gift card. Encourage your grad to cook at home with a gift card to a grocery store. Hopefully, she'll be less tempted to dine out if she can stock her refrigerator for free. You can find discount grocery gift cards at Gift Card Granny.

A mattress. Everyone has to sleep. So your college student will surely appreciate a real bed -- rather than that worn-out futon he was sleeping on in his college apartment. And May is a good time to buy mattresses, which can be marked down by as much as 50% as retailers try to make way for newer models.

Security deposit for an apartment. For grads just starting out, coming up with the first month's rent and a security deposit can be tough if their first paycheck won't show up until the end of the month. And you don't want them to have to rely on a credit card to make these payments. So consider chipping in by offering to write a check for the security deposit or one month's rent.

Renter's insurance. First-time renters often don't realize that they'll have to pay to replace their stuff if it's stolen or damaged by fire or another disaster -- unless they have renter's insurance. You can help them protect their belongings and finances by purchasing them a policy, which usually costs $200 to $300 a year.

Help with student-loan payments. Students with loans usually get a six-month grace period before they have to start making payments. If your grad doesn't have a job by that point, he might need help footing the monthly bill because you don't want him to default (see The Dark Side of Student Loans). Consider pitching in until he gets a steady paycheck or can find relief through a loan-deferment program.

A head start on retirement savings. If your grad will have earned income from a job, you can open and fund a Roth IRA for her. Even if she has a workplace retirement account, she'll benefit from a Roth because she'll be able to withdraw the money tax-free in retirement. She also can withdraw contributions (not earnings) at any time tax- and penalty-free. To learn more, see The Basics of Roth IRAs.

2011-06-09T11:41:00.001-05:00

Start Your Projects!

Summertime is almost here and millions of Americans will be starting home improvement projects. Whether they're classified as maintenance, updating or energy saving, they should make homeownership more enjoyable.

Remodeling magazine's 2010-11 Cost vs. Value Report suggests that some improvements are a better investment than others. Front door and garage door replacements are two of the easiest and return the greatest percentage of cost on resale.

Kitchen and bathroom updates transform an older home and instantly give visitors and buyers a fresh impression. Countertops and appliances can be expensive but yield great results. Painting the cabinets and replacing the hardware is much less expensive to change the look and feel of the rooms.

Energy efficiency enhancements can improve your enjoyment of the home and help save money on utility costs.

Replace older appliances - refrigerators, ceiling fans, water heaters, air-conditioners
Add insulation to keep your home cool in the summer and warm in the winter
Seal air leaks around doors and windows; holes in attics and crawl spaces with caulk, spray foam or weather stripping - more information
Seal all heating and cooling system ducts - more information

Looking through the eyes of a buyer could show you what features most date your home and could order the priority that you tackle the projects.

2011-06-07T10:10:00.002-05:00

Texas Is Not Like Everyone Else!

Now New York-based Standard & Poor's, in a new research report, pretty much agrees with that assessment. The ratings agency said the Lone Star State, with its large and diversified economy, continues to outperform the nation in terms of housing, economic activity and employment.

"By most measures, Texas has been one of the most rapidly expanding and diversifying economies in the nation over the past decade. The state's growing population, coupled with what we believe is a relatively low cost of living and of doing business, has fueled strong growth in industries and sectors that just two decades ago had a limited presence in the state."
Analysts also think Texas is poised to "recover earlier and at a faster rate than most other states" given its continued population growth and business-friendly environment.

The ratings agency did note the state, like many others, has a budget gap and also mentioned pressure on cash flows from the public school financing system — a growing portion of which the state is required to fund.

2011-06-05T10:30:00.001-05:00

5 Ways to Raise Your Credit Score

Most of us don’t even know why or how a credit score can change or what affects the change. Perhaps we can help you figure this out with these 5 ways you can use some expert know-how to boost your credit rating:

1. Pay bills before the statement date. How much you owe is 30% of your score and your utilization ration is a large part of that.

2. Make multiple payments. To make periodic payments throughout the month you are lowering your balance. Basically, the lower the balance on your credit report, the better. Make sure your card will handle multiple payments.

3. Ask for a ‘good-will deletion’ If you have one or two bad marks on your credit record, you may be able to them expunged if you ask the lender to “cut you some slack.” You might be surprised when it works by just asking.

4. Pay for removal. If you have an account that has gone into collection, the lender might remove it if you agree to pay it off. “You’d be surprised how many collection agencies will stop credit reporting in exchange for payment.” Get the arrangement in writing.

5. Protect yourself in a short sale. After a short sale, the lender often will report to credit bureaus that the me loan was settled for less than full amount or deficit as balance owed. Short sale will damage your credit score dramatically, you can mitigate the damage by arranging with the lender not to report a balance owed. Negotiate before or during the short sale not after it’s been paid!

2011-06-03T10:32:00.003-05:00

Can You Boost Your Brainpower?

Scientific studies have proven that you can boost your brainpower and your happiness and help prevent disorders associated with aging, such as Alzheimer’s disease. The brain is a complex organ that the Lord created, and is able to create new connections between nerve cells when it is properly stimulated.

Whether you are a Generation X'er, a baby boomer, or an octogenarian, the following tips can help boost your mental activity and increase your intelligence:

1. Keep memorizing. A good memory has been showing in studies to slow down mental aging. Start small by memorizing your shopping list or your daily schedule, then a poem, then a musical instrument or a new language. I have been memorizing scriptures from the Bible which is challenging to me.

2. Get a hobby. Gardening, bird watching, collecting….taking on a new hobby is good for mental stimulation as well as your overall mood. Find activities your really enjoy and have fun. It will provide both an escape and a passion

Challenge yourself. One enemy of mental sharpness is that we fall into overly rigid, daily patterns, that is having the same routine nearly every day. Those patterns promote mental passivity. Try mixing up things a bit. Try playing around with your daily schedule at least. Too much regimen can dull the senses. (That does not happen in Real Estate!)

2011-06-01T10:23:00.002-05:00

Schools and School Finance!

I’m sure you have heard of the book Three Cups of Tea and the scandal resulting from building these beautiful schools in Afghanistan that are not being used. The point has been made to stop building these physical structures to educate our children or other children in the world! “Nice school buildings” are not a necessity and generally, have little bearing on educational outcomes. Classes can take place in a snazzy school, a private home, a yurt or a house of worship.

I taught school many years ago when they were starting the “Head-start program” and what did we get at our school to help us with these transient children who did not have the benefits of most children? Colored paper, laminating machines, poster board??!!! Use such money to pay good teachers and you will get much better results.

It does pain me being an ex-teacher to see the State and local governments reducing the income of teachers. Yes, some teachers should leave but why should they leave when they love their jobs but can’t make a living. A woman has to be joined with a husband’s income in order to survive on a teacher’s salary. Pay teachers who love their jobs more money and you will have excellent students wanting to learn. That’s my opinion anyway!

2011-05-30T10:30:00.002-05:00

Check Your Credit Scores!

Did you know that four out of five credit reports contain errors? If you are trying to get a loan or buy a house, that could be a problem. There are three major credit bureaus: TransUnion, Equifax and Experian. Be sure to check all three. You can do so free at annualcreditreport.com.

Examine the report since common mistakes are that an account has been closed when reported active and/or accounts mistakenly are in your name. You can contest any mistakes right there on the website at annualcreditreport.com but a letter to the bureau is also a good idea, as well as sending a letter to the company involved. The credit bureau must investigate within 30 days by law.

2011-05-27T08:00:00.000-05:00

You have seen the ads in the newspaper and read the signs nailed to telephone poles: “Credit problems? We erase bad debt.” Sound easy, huh? Just call the number and pay a fee, and your credit woes will disappear.

Bad credit does not vanish by paying someone to remove it. There are legitimate credit repair organizations to help remove inaccurate information from credit reports.
The first step in fixing credit report errors is to identify what’s wrong by getting ga copy of your own credit report. (everyone is entitled to one free report per year from each fo the credit bureas: Experian, Equifax, and TransUnion. Then review it for its accuracy.
· There should be no late pays on it! 35% of your credit score is based on timely payments.
· There should be no any collections or charge-offs more than 7 years old.
· Best to keep balances on available credit under 50% of the available limit, 30% is even better. Debt accounts for 30% of your score.
· Length of credit accounts for 15% of a credit score so check the original dates.

Think twice before closing that credit card which will shrink the available credit listings on your report and hurts the credit utilization ratio.

Good credit is key to just about everything today, including getting home owner’s insurance as well as buying anything you want with credit. Credit scores need to be at least a good 680 or higher. Maybe removing any little ding and any mistake made on your credit scoring would be worth the effort.

2011-05-25T10:31:00.001-05:00

Staging a Home

Barb Schwartz’s favorite saying and hence mine is: “The way you live in a house and the way you sell a house are two different things!” Staging your home for sale involves depersonalizing it, getting rid of clutter and cleaning.

Kim McDaniels of DecorateU.com gives 10 to reasons for Staging Your home to Sell!

1. The longer your house sits on the market, the less it sells for.

2. Staging you home costs less than the price of an ad and it is much more effective.

3. Today’s homebuyer is educated and very pressed for time.

4. It will create a positive and outstanding first impression you need to see your house faster and move on with your life.

5. Buyers form an opinion about your house within five seconds of seeing it.

6. It sets the scene for buyers to mentally move in right away.

7. Your home is directly competing against every other house on the market. Staged homes look better than unstaged homes because it is presented in the best possible light and is ready to be sold.

8. Sellers have more confidence showing a staged property to buyers.

9. Stages houses sell faster and for more money in most markets, usually within 10 days or less and the return on your investment for staging can be 10 to 20-fold.

10. Real Estate Appraisers are more likely to appraise staged homes at full value.

2011-05-23T10:37:00.001-05:00

How Do You Fix Credit Report Errors?

You have seen the ads in the newspaper and read the signs nailed to telephone poles: “Credit problems? We erase bad debt.” Sound easy, huh? Just call the number and pay a fee, and your credit woes will disappear.

Bad credit does not vanish by paying someone to remove it. There are legitimate credit repair organizations to help remove inaccurate information from credit reports.
The first step in fixing credit report errors is to identify what’s wrong by getting a copy of your own credit report. (everyone is entitled to one free report per year from each of the credit bureas: Experian, Equifax, and TransUnion. Then review it for its accuracy.

• There should be no late pays on it! 35% of your credit score is based on timely payments.
• There should be no any collections or charge-offs more than 7 years old.
• Best to keep balances on available credit under 50% of the available limit, 30% is even better. Debt accounts for 30% of your score.
• Length of credit accounts for 15% of a credit score so check the original dates.

Think twice before closing that credit card which will shrink the available credit listings on your report and hurts the credit utilization ratio.

Good credit is key to just about everything today, including getting home owner’s insurance as well as buying anything you want with credit. Credit scores need to be at least a good 680 or higher. Maybe removing any little ding and any mistake made on your credit scoring would be worth the effort.

2011-05-19T10:36:00.002-05:00

Is This The Right Time To Buy?

We were visiting with a couple of friends of ours and the mentioned they got a great deal on a SUV that they needed for their growing family. Think about it for a moment, there might not be a better time to buy a car than now.

There might not be a better time to buy a house than now! In 2006, there was never a better time to SELL your house in most markets. There are several examples of knowing that the time is right.

Actually, buying or selling is good at any time… it all depends on your perspective. In fact this is a great time to buy since a lot of people are focused on the negatives right now. Is your perspective right to prosper? Might be a good time to get through your skull. … that ANYTIME is a good time!

2011-05-18T10:28:00.002-05:00

What Is “Buy and Bail?”

When people cannot sell their house, they will buy another house with a temporary lease or a paper lease on their existing home, buy another home that they can afford the payments and maintenance, and then let their current home go back to the Bank as a foreclosure. We just had a couple come in from Michigan that they were losing so much on their house there, they just wanted to see if they could qualify for a home here and then let that one go to Foreclosure. This is a NO, NO! Lenders and FHA are really looking at possible leases on homes when someone is buying another. It won’t work anymore!

What are the affects of letting your house go back to the Bank? You won’t be able to buy with the following types of financial problems:

• Chapter 13 Bankruptcy - would require 2 years from Discharge date or 4 years from Dismissal date (uncompleted Bankruptcy)

• Chapter 7 Bankrupty – 4 years from Discharge or Dismissal date

• Foreclosures – 5 years from completion date with a 10% down payment and a 680 FICO score at least

• Pre-Foreclosures (short sales) – 2 year period from completion date (NO exceptions regardless of extenuating circumstances)

2011-05-10T10:17:00.002-05:00

Better Job Market, More Confidence?

Best numbers on the jobless rate are out in March that shows a fastest pace of hiring in almost a year. Unemployment rate dropped to 8.9 percent! Sounds great!

And hopefully it will continue to go grow with the hiring. Notice that private employers added 222,000 jobs last month. That is also good news, and should mean that the employers have more confidence that the economy is getting better since they are finally hiring and growing their business.

Such improvement in the job market will also mean that buyers and sellers are getting more confidence to come out into this wonderful marketplace with low, flat prices and low, low interest rates.

2011-05-07T16:18:00.002-05:00

How Does Our County Rank?

1. Simply visit http://www.countyhealthrankings.org/

2. Hover your mouse of the map of the U.S. and click on your state.

3. Click on your county once the state map appears on your screen.

It is that easy. With just a few clicks, you can see your county’s overall ranking as well as important local statistics related to:
• Unemployment
• Education
• Smoking and drinking
• Access to recreational facilities
• Air pollution
• Poverty
• Motor vehicle death rates
• Diabetes
• And much more!

Check out your county today - and share this information with friends, family members, and co-workers in your community!

2011-05-04T16:07:00.001-05:00

Interesting Facts on Identity Theft

• 38-48% discover someone has stolen their identity within three months, while 9-18% of victims don't learn that their identity has been stolen for four or more years.

• It can take up to 5,840 hours (the equivalent of working a full-time job for two years) to correct the damage from ID theft, depending on the severity of the case.

• The average victim spends 330 hours repairing the damage (ITRC Aftermath Study, 2004).

• It takes 26-32% of victims between 4 and 6 months to straighten out problems caused by identity theft; 11-23% of victims spend 7 months to a year resolving their cases.

• In 2008, existing account fraud in the U.S. totaled $31 billion.

• Businesses across the world lose $221 billion a year due to identity theft

• Dollar amount lost per household averaged $1,620

• 43% of victims knew the perpetrator

• Stolen wallets and physical paperwork accounts for almost half (43%) of all identity theft
• 38% of ID theft victims had their debit or credit card number
• 37% of ID theft victims had their Social Security number

(All statistics taken from various sources.)

2011-05-02T15:57:00.004-05:00

Are Homeowners Still Optimistic?

While homeowners are aware of how home prices have fallen in recent years, they aren’t expecting a rebound anytime soon, according to a recent Pew Research survey. About half (47 percent) of those surveyed say their home is worth less now than before the recession began, and 31 percent say their home’s value has stayed the same. Only 17 percent say their home is worth more.

Of those who say their home lost value, 86 percent believe it will take at least three years for values to recover to pre-recession levels, while 42 percent say it will take at least six years and 10 percent say it will take more than 10 years.

Even with the decline in home values, most homeowners that said that their home is worth less than before the recession began, still either strongly believe (37 percent) or somewhat believe (45 percent) that homeownership is the best long-term investment a person can make.

We agree and feel it is also, for most people. Do you know if you could buy in this market? Financing is tougher but we don't want you to buy if it doesn't seem right to do so. Just don't be disappointed when you are ready, the market will be higher in price and higher in interest rates. It is coming.

2011-04-30T10:03:00.002-05:00

Texas Is Not Like Other States

57% of homes sold in Nevada in 2-1- were foreclosure sales, while Arizona almost hit the 50% mark. Foreclosure sales in Texas represent 13% of the sales. Nationally, the share of foreclosure sales was 26%.
The average foreclosure sales price in Texas was $142,049, which is 27% lower than the average non-foreclosure price. (RealtyTrac)

We have something to be thankful for in Texas.

2011-04-27T09:58:00.002-05:00

Are You A Generation X

Young families and adults ages 31 to 45 are considered our Generation X and they may be the leaders in home buying as the recovery gets under way in the housing market. These buyers are most likely to think it is a good time to get off the fence and buy, but they have very strong opinions about design features. It may not be the largest population group but it is the most mobile group.

Baby Boomers used to be the leaders but they are keeping their jobs and working longer, and their next move is probably a smaller home.

The Generation X are in interested in home with green technology and would pay an extra $5,000 for a house with green features. They still want the larger lots in a suburban area and not necessary that “walkable” neighborhoods. They like dark wood cabinets and prefer a great room floor plan as well as a flexible room space.

Does this sound like you? We work with Generation X's and would like to know what interest you in a home since you are can see this is a great time to buy a house.

2011-04-25T20:44:00.003-05:00

Foreclosure Postings Rise in April, 2011

Yes, we do have a whopping 16% increase for the April foreclosures compared with a year ago. There was a dip of 4% over the first 4 months of this year so that is good. Roddy states” The numbers appear to be moving in the right direction, but things are so unstable.”

I still think the Banks should have dumped the majority of the foreclosures in the first 6 months of last year, the tax incentive would have encouraged more buyers out to gobbled up the foreclosures. Remember also last year the Banks weren’t dumping them on the market because the government was taking care of their losses.

Roddy being quoted again, “foreclosure postings won’t improve until unemployment goes down and the number of homeowners ‘underwater’ on their mortgages..meaning they owe more than the house is worth..stops increasing.” Can’t pay your house payment without a job, especially when you did a 100% financing and have no equity or just the fact that if you bought in last 4 years, our market is flat so where are you getting the money for all the closing costs in trying to sell?

We would be happy to give you some options if the job market is still hurting and clouding your future and you own a house.

2011-04-22T20:36:00.001-05:00

Do We Need to Breathe?

One of my treatments for a wound that would not heal was Oxygen Treatment. It is a therapy where your whole body is inserted into a chamber like they used to do for polio victims. It is pressurized and you take care of your ears while going down like a deep sea diver in which the oxygen is pressured into your cells and you are left there for an hour and half. Of course you don’t feel anything but after 50 treatments, I noticed my eyesight was better and my nails grew which they never do grow. Wow! I was delighted. But…..a few months after the wound was healed and my oxygen therapy was over, I was back in the past strength of contacts and had flimsy, peeling nails.

Went to a physical therapist as well as she was talking about deep breathing that we breathe too shallow and don’t get that oxygen deep in our lungs. Have you noticed when you get stressed or need to stop, how much better you feel when you take 3 or 4 deep, deep breathes! ?

Then I ran into an article in the paper talking about getting oxygen into our lungs. I am not into yoga, but when being still or trying to go to sleep, practicing deep breathing does relax you. The article was talking about oxygenating your muscles. If you breath out when you’re contracting the muscles and in when you’re relaxing. When running, hold your shoulders back and run with your back straight to make sure air gets into your lungs easily.

How do you know if you are breathing from your diaphragm deeply. Lie on your back on the floor and put your hand or book on your abdominal area. When breathing, the book or your hand should rise up.

Try this exercise for yourself. Sit up right in a comfortable chair, no music, close your eyes, try to exhale at the same count that you inhale. Do it five minutes every day, no exceptions. See how differently you feel after 21 days. I’m going to try this! Let me know if you try it and what your success is as well. (Article from DMN by Leslie Garcia.)

2011-04-19T15:18:00.003-05:00

8 Way to Go Green

Were you able to get to the Live Green Expo at the Plano Centre recently? This is their 5th year for Plano to bring this Expo with speakers and exhibits in order to learn how to make informed decisions and take action to lead more healthy lives with less impact on the environment.

The Plano Studio Movie Grill was showing “Bag It” as a documentary. Did you see it?

We have 8 suggestions to go green at your house right now that you can do:
1. Get a reusable water bottle and coffee cup; say no to disposables. (We do this, how about you?)
2. Use only energy-saving bulbs. (Use some....need to do better.)
3. Recycle all paper products. (We are good at this.)
4. Redecorating? Look at furniture and accessories you already have and change them from room to room for a new look, instead of tossing and buying new things.
5. Use the phone or video chat with Skype for meetings instead of driving your car. (We are trying this with our office meetings!)
6. Buy earth-friendly cleaning products when possible. (Some)
7. Try to buy local produce and food. (Sometimes)
8. Turn your car off while waiting in car-pool pickups to avoid idling. (Don't have kids but do it while I sit in the car on the phone, I need to turn it off....but it is hot!)

What else are you doing to be green?

2011-04-17T17:05:00.003-05:00

5 Ways To Getting Your Loan Approved Faster

1. We should say that "working with us" is the first way. When you let us help you find the loan that's right for you, you truly are taking advantage of some of the area's best technology and expertise to get you a loan decision and funding on your loan quickly.

2. Have everything ready and in one place. You'll find a list of things you might need in support of your mortgage application by clicking here. If you get them all together and keep them in a safe, portable place like a special pouch or folder, you can cut down on time spent rooting around for things we may need. Also, you'll help cut down on your own anxiety and confusion. of getting a mortgage loan.

3. Be honest and complete when you fill out your application. "Fudging" your employment or residence history or omitting open credit accounts you'd rather not have considered doesn't increase your chances of getting a favorable loan. In 100 percent of cases, it makes it harder, and take longer.

4. Respond promptly to requests for additional information. During processing, we or the lender considering your loan may need additional information. Provide it as soon as you get the request, or return the call as soon as you get the message.

5. Be prepared to explain derogatory items in your credit report. If you had an illness or a divorce where you missed or made late payments, or you have other instances of late payments or delinquencies on your credit report, be prepared to explain them. Be honest, and don't be nervous! The loan processor isn't judging you, they're trying to fill in all the blanks in their paperwork.

Call us to find more details on the process of getting approved.

2011-04-14T16:53:00.000-05:00

April's Marketwatch We are seeing a little more activity in the marketplace right now in the North Dallas area and are thrilled with what we see. We have sold 5 houses in the last 10 days and 4 of those have been listings. Two of those had multiple offers! You might say they were priced too low but we don’t think so! They were priced with the market, clean and well cared for homes, and updated. The other part of the puzzle is the market picked up. We love it! If you are thinking of selling or buying, this little wave of success will follow us hopefully until we hit our peak at the end of summer. See our graphs to see our natural upturn during the summer months starting in the spring. We are not “out of the woods” yet but we have been SO slow, this little bit of activity is exciting. The statistics are out with a graph for Plano, Allen, Frisco and McKinney for the month of March. Call with questions about the market if you have them, or ask about our Room-By-Room Review for your home.

2011-03-17T15:21:00.001-05:00

5 Steps in Buying A Home

We can divide the buying process into really 5 big steps for you, all of which are important. It is always best to know the process before you buy. In knowledge, there is less fear since you know what is going to happen next or what needs to be done next. It makes you a much more informed as well as a comfortable buyer in the marketplace.

1. Deciding whether this is the right time to buy. We can give you information to help you make that decision. We may think it is a great time for you to buy but your circumstances and goals may not make it that perfect time for you. We need to look at all the facts and your desires closely.

2. Getting Pre-Approved. Nothing is more disheartening than to fall in love with a home that you just must have but you can't have because you don't qualify for that house. It is best to make sure you are comfortable with a payment even if you can qualify for more.

3. Finding That House. If we are any good as your Real Estate Consultants, we have listened to your needs and desires in a house and we don't need to be showing you 50 houses to find it. If an agent is showing you that many houses, either you are not ready to buy or the agent is not listening to you.

4. Negotiations. That's what you hire us for, for our years of experience in negotiating and representing you in the process including the contract terms and the repairs. We want to treat your money just like it is ours. Like a Pit Bull, we want you to keep as much money as you can or make as much money as you can.

5. Title Work, Appraisals, Underwriting, Celebration. You don't have too much to do with the items listed above but they have to be done before you own a house and get a loan and we can go to Celebration. That is our job. Making sure these things are done according to the contract and in a timely manner.

Email us for more details on the 5 Steps in Buying that we can forward to you FREE of charge. An educated "buyer" is the best buyer. Get educated.

2011-03-16T15:17:00.001-05:00

New Housing App For Your iPad/iPhone

I just downloaded one of the coolest and latest real estate apps on the iPad – the new “House of the Day” app from The Wall Street Journal. Just released this week, this app is based on the popular “House of the Day” feature from WSJ.com, in which readers can peak inside breathtaking houses all across the country.

Very interesting to see houses across the country and around the world. Just for those of you that love to look at houses.

2011-03-14T15:12:00.001-05:00

Tips for Tax Season

• Consider carefully whether a high-interest refund anticipation loan is more favorable than waiting for a larger check directly from the IRS. You will find companies offering these refund loans.

• Read the tax return carefully before signing it. Never sign a form with spaces left blank. It is still your responsibility what is on that return.

• Contact the local tax-assessor collector to file a homestead exemption free of charge. Check with us to see if you are eligible this year.

• HANG UP on scammers who call unexpectedly and pose as IRS agents.
Additional information on tax-related scams and questions is available directly from the IRS at www.irs.gov or by calling (800) 829-1040.

To report a tax preparer who is not complying with the law, or to report fraudulent telephone solicitations, file a complaint with the Attorney General's Office online at www.texasattorneygeneral.gov or by calling (800) 252-8011.

2011-03-13T15:01:00.001-05:00

Can You Afford To Buy a House?

Home affordability continues to rise. If fact, it has returned to pre-bubble levels in a growing number of U.S. markets over the past year as price declines laid the groundwork for a housing recovery.

Home values in the United States posted their largest quarterly decline since the first quarter of 2009, falling 2.6 percent as the temporary stimulus of the home buyer tax credits wore off, according to Zillow.com. Data provided by Moody's Analytics track the ratio of median home prices to annual household incomes in 74 markets. By that measure, housing affordability at the end of September had returned to or surpassed the average reached between 1989-2003 in 47 of those markets. Of course Texas has been one state that we have been flat in our prices and have always been a great priced housing market in which to buy. We still are a good buy. See Collin County's Affordability Index by clicking here.

"During the boom, lax lending and speculation pushed house-price inflation far beyond the modest rise in household income. Nationally, the ratio of home prices to annual household income reached a peak of 2.3 in late 2005. But by last September, it had fallen to 1.6, matching the lowest level in the 35 years the data have been collected and well below the historical average of 1.9 between 1989 and 2003."

"Based on incomes, this is as affordable as it gets," said Mark Zandi, chief economist at Moody's Analytics. "If you can get a loan, these are pretty good times to buy."

2011-03-11T14:48:00.002-06:00

When Should Buyers Receive Seller's Disclosure?

In our area, agents like myself, can post the Sellers' Disclosure on the MLS system so that other agents can pull it up and share it with prospective buyers. Buyers appreciate candid and complete disclosures. The time for the buyers to receive the disclosures and any reports you have on the property is before they make an offer. This way you minimize the chance that the buyers will try to renegotiate the contract price after they complete their inspections.

If the buyers' inspector finds some problems and they have to come back to you as the seller and question the disclosure of the problem, the buyers feel and question what else did you not reveal to them as a seller?

Don't withhold reports on your property. One seller had two termite reports on his property. One was better, meaning that it recommended fewer repairs. This report was given to the buyers; the other was not.

The buyers wanted a second opinion, so they ordered a termite inspection from another company. Coincidentally, this company had done the second report on the property for the seller. When the buyers learned of this they sued the seller and won.

So just be careful and as your consultant to you the seller, we will guide you in disclosing the material facts on your house. Email us with questions.

2011-03-08T14:29:00.001-06:00

Tips For Moving With Children

Moving is a challenging and difficult experience for any family, especially those with young children. Did you know?

• One of every five American families move each year
• Most of those moves are either within the same city or to a neighboring state
• 8 million children ages 1-14 are relocated with their families annually
• Texas is the most moved-to state

But when parents decide to move, the children tend to be anxious, even upset. They need to be included in the move and be a participant to remove some of that anxiety that comes with moving.

Click here for some other hints on how to make the move easier on children.

2011-03-07T14:33:00.001-06:00

Are Sellers Required To Disclose?

Many of the claims made against sellers today are related to disclosures that were not properly relayed to the buyers before closing.

The ttrend nationally is to require that sellers disclose known material facts. In Texas, no one is to sell a house without filling out a disclosure truthfully and accurately. We have several formats that can be used but they need to approved by TREC (Texas Real Estate Commission).

What does a seller disclose? Known material facts about the house. A material fact is one that might affect a buyer's decision to buy or the price offered. It's a good idea to discuss your disclosure obligations with your real estate agent or attorney before you put your home on the market. We are much better off if we try to reveal and disclose all we know since owning the house or before stating information was from previous owner, rather skip something we thought was not important.

Consult your agent to provide you with copies of any disclosure forms you need to complete when you list your home for sale. You need to read them; they're designed to help you recall material facts that should be disclosed.

2011-02-25T19:48:00.005-06:00

How To Sell Your House In Today's Market

How do you sell your house in today's market is the first question? Statistics are showing it is taking longer to sell your house. It appears a lot of sellers are not selling so are going as a rental instead.

The answer is the same in any market. Price it right and have it in good, clean condition.

You can do all kinds of marketing to sell a house. Sellers expect and want all the marketing tools that make you think you are getting the labor out of the agent, but buyers are smart and know when your house is overpriced. Since we are getting an average of 97% of the list price in most of our cities, it would behoove you to list your property no higher than 3% above the market value. That could very well create the interest you need to have multiple contracts or get it sold in the first 30 days which is where it should sell.

Not pricing right leads to frustration to you as the seller, being ready to show and no one to show your home to. You will definitely be on the market longer if you are overpriced, and it has been proven, the longer you are on the market, the less you will receive for your house. Now why is that so? Because when the buyer sees your pretty house, their first thought is why hasn't it sold? What is wrong with it?

Do not be unwise in pricing your home to sell. Consult a good listing agent that will give you the facts so you will know the market.

2011-02-24T19:37:00.000-06:00

Do You Have Concerns About Homeownership?

According to National Association of Realtors (NAR) 2010 National Housing Pulse Survey, 7 out of 10 Americans say job layoffs and unemployment are big problems to home ownership.

Most do believe this is a good time to buy a house but there are obstacles they are concerned about: 79% surveyed said having enough money for the down payment and closing costs was a concern, and 73% stated the lack of confidence in getting approved for a mortgage was an obstacle.

Interesting that 1/4th of the renters surveyed said they are thinking more about buying a home this year than they did last year. It is still a good time to buy a home!

Are you ready to buy? Check out homes on our Home Scouting Report....a great tool for your search. Click here to visit and register.

2011-02-22T20:16:00.000-06:00

The Texas Quarterly Housing Report reflects also what is going on in the other 47 state's markets as well as Texas. The latest report indicates that volume is down compared to last year during the tax incentive, but actually in Texas, we have held steady.

The report actually reflects a modest (1% median) increase from 2009 to 2010 in Texas. Do not listen to everything you hear in the media. They are talking about volume. "Sales are down" is their scream. Yes, the number of homes sold is down but not necessarily the price. But the headlines make you think the Real Estate Market is "going to pot." It is not.

Speak to a professional consultant and find out what is really happening in the marketplace.

2011-02-22T08:31:00.002-06:00

We Think Jobs Are Needed

The confidence of the buyer comes mainly from their knowledge that they have a job and will continue to have a job. In this economy, that is not so easy to foresee ahead.

It appears that the Treasury Department has recently issued some recommended changes to the structure of Fannie Mae and Freddie Mac. Now who are they? That's the secondary market of selling loans that most of us never know about. Both entities are controlled by the government and of course they are broke. They oversee all the packages of loans that were sold in groups to investors and oversea investors in which a lot of loans failed.

Ron Phipps who is NAR president reaches out to the lawmakers to emphasize just how vital housing is to families, jobs and our nation. For every additional 1,000 home sales, about 500 jobs are added to the economy.

Real estate is all about jobs.

2011-02-21T19:43:00.003-06:00

Are Homes Shrinking?

Actually the new single-family homes are getting smaller according to research done by the National Association of Homebuilders (NAHB).

The consumer has a desire to keep the energy costs down, there is not as much equity in the existing homes to roll over into new bigger homes, there are tighter credit standards to buy bigger, and there is less interest in buying homes as an investment.

Emphasis is on an inclination to buy less stuff, opting for a simpler life and Kelton Research finds that 56% of Americans are beginning to live less materialistic lives with the economy's collapse. Huge cars and huge houses are falling out of fashion, it seems.

Buyers are tending toward a green home half the size of the big house with solar and geothermal energy and built of materials that increase heating and cooling efficiency.

I'm not sure we are there yet in the Dallas area, but think that is becoming the trend to be smaller and more efficient. What do you think?

2011-02-13T14:21:00.000-06:00

Easier To Get A FHA Loan!

Perhaps the door to an FHA-insured mortgage just opened a little wider.

With no fanfare or public announcements, two of the largest FHA-approved lenders have backed off their controversial "overlay" requirements on FICO scores (lender overlays are qualification requirements that can be more stringent than FHA's own requirements). This has been a problem with our lenders. I would say to the Lender that is not required by FHA, and they would respond, but it is required by our underwriting! Very frustrating not to know all the rules!!!

Looks like both Wells Fargo and Quicken Loans are now willing to lend to applicants with 580 credit scores. This is really what FHA had as minimums. Because of the economy, many credit scores (FICO scores) have been dropping. These two are the two largest originators of loans. Before they have insisted on the 620 FICO score, so this is good. If you came in lower than the 620, lenders would not even look at your application.

An estimated one third of Americans now have FICO scores below 620, according to one consumer group's estimate. (From Inwood News)

2011-02-09T18:23:00.000-06:00

How Do I Get My Down Payment Money?

In today's market, you may have good credit, income and job stability but you don't have the down payment money. 79% of buyers that were interviews said this was the biggest obstacle in buying a house.

Where could you get the down payment?
A couple of suggestions are below:

1. Most buyers depend on the savings or the proceeds from the sale of a previous primary residence for the down payment. But, perhaps you didn't receive that much equity from your home or you didn't have one to sell.

2. Another frequently overlooked source of down payments could be the buyer's IRA. If neither of you as buyers has owned a home within two years, each may withdraw $10,000 from your own IRA to be used to buy a home. The money must be applied within 120 days from the withdrawal. The 10% penalty normally associated with early distributions is avoided but it will be subject to income tax since it was exempt the year it was deposited into the IRA.

3. Gift letter from family member! Family member must sign a gift letter that they don't expect you to pay it back. This is your "inheritance." I tell buyers that you need that "inheritance" now rather than in 20 years when your family dies and you inherit their money.

Of course full disclosure of the source of the down payment needs to be made to the lender and lenders will help you with the process of borrowing from your IRA..

Call us with questions.

2011-02-04T14:22:00.001-06:00

Insurance In Case You Buy and Lose Your Job???

This new program in California (of course …every trend starts there it seems!) offers home sellers the option of funding insurance plans that will provide buyers with up to six months mortgage payments. This is to entice the buyer to buy their home! Buyers may qualify for up to $1,500.00 a month in the event they lose their job after purchasing. The program, named the "Home Payment Protection Program," was triggered by California's continued high unemployment rate. It is a creative idea to make the buyers feel more comfortable in stepping out to purchase. Remember when the car dealerships were offering similar programs that they would buy your car back from the buyer if they lost their job?

"Most people wanting to buy houses today have a fear: What happens if I lose my job?" CAR president Beth Peerce said. "This plan takes some of that stress away." The program extends to buyers who've lost their jobs within one year of close of escrow. Buyers will ask sellers to pay who may choose between payments of $200 for six mortgage payments of up to $1,000 each or $275 for six payments of $1,500.00 each. Of course buyer could pay for it too, but the sellers want the buyers to buy their homes and this is an incentive! Will it make its way to Texas?

2011-02-01T14:17:00.002-06:00

Are Home Prices Slipping?

Again, another article came out of the Dallas Morning News suggesting that the average house price in Dallas is slipping to what it was last month and last year. I’m still not seeing that in the monthly statistics for our cities up here north, Allen, Frisco, Plano, and McKinney. (Click here to see the statistics that we have put together for our northern cities.)

Home affordability is still high with prices flat and interest rates low. That is what will be hard to beat in the coming months and years. To have this combination is very difficult! Our rates are the lowest in history. More people are refinancing which does stabilize the market which lowers their payment in most cases and they can remain in their homes rather than selling and moving down in harder times.

National Association of Home Builders states in their recent study that 72.1 percent of all new and existing homes sold in the third quarter of 2010 were affordable to families earning the national median income of $64,400.

So don't really see prices dropping in our North Dallas area!

2011-01-28T17:02:00.004-06:00

Market Watch!

I feel encouraged with the Marketplace. We are not out of the "woods" but we are seeing some good signs. Let me share some with you. They are from economists and people in the know.

Some good signs:
1. Car and light truck sales are up (I know that because 2 members of my family bought cars in December, 2010!)
2. Individuals are reducing their debt. People have tightened up and are trying to pay off debt and not create more debt. (Government should try more of this!)
3. The Corporate world is making profits, they are making money. Why are they not hiring but firing? Because until profits go up, they are going to fire. Now, they might hire if they knew what the government was going to do!
4. In small businesses, most are saying they would like to hire in the next 6 months. But, the big question is what is the governments going to do about the debt?
5. 45% of Corporations plan to hire in the next 6 months.

Citizens are worried since we know the Government cannot fund its National committments of even social security and medicare. The public feels the government cannot control their debt. We can't believe government since they have tried all of these incentives which have produced a "false economy that cannot sustain itself!" All the incentives have distorted the market and has delayed recovered. The Tax Incentive was a "Grand Social Experiment" which we couldn't afford. Instead the government keeps printing money and thus, destroying our savings as well, making it less valuable.

Home sales are based on Job growth, Low mortgage rates, and Home price appreciation. There is this fear of the "Shadow Inventory" of the foreclosures they still say are coming our way. Don't see how we can improve our market without clearing out that inventory, but there is a fear of what it will do to the market. (I don't think it will hurt us.)

The Job Market here in Texas is good. With such statistics, Texas is out of the recession but we won't feel like it until we know what the governments will do with the debt. With Texas' lower cost of living, with no state income tax, corporations are moving here to save money. We are in a good place to grow.

Just remember, if the market improves, so will interest rates! This is THE time to buy!

2011-01-28T14:12:00.002-06:00

Why Did You Buy a House?

Was it because you received the interest and tax deductions on your income tax? Well, the Deficit Reduction Commission is considering modifying the mortgage interest deduction! That is going to cause a “chill” in the housing market since we preach (as Realtors and Lenders) that this is a good investment because of the interest deduction.

The National Association of Realtors is suggesting that over time by paring back this deduction, would reduce the value of homes by 15%. NAR suggests that this level of wealth destruction is “unacceptable” especially in the economic environment that we are in. Needless to say, Realtors and Lenders are giving our say to Congress. I absolutely agree. You can also state what you think!

2011-01-26T14:07:00.002-06:00

Are Interest Rates Rising?

Yes we are seeing a little increase with the average rates on 30 year at the end of November being closer to 4.75%.

The government loans have seen a downtrend of delinquency on the mortgages that they have right now, so that is good. Actually at 9.13% delinquency rate is the lowest since the first quarter of 2009 and lower than it was a year ago. That IS good! That means the tightening of qualification and requiring having a job and having some money, fewer buyers are getting into homes they can’t afford and defaulting.

If we can see an improved delinquency rate, perhaps some of these stricter rules like higher credit scores could be adjusted down a little. There are good buyers out there that just goofed up one time and messed up their credit and they cannot buy. I like a lot of the restraints on buying qualification but the pendulum is way over right now. We need to come back to the reasonable middle!

2011-01-24T15:35:00.000-06:00

Statistics From NAR Survey of Buyers and Sellers in 2010

This survey is national but there are some interesting facts that are revealed that apply to us locally:

• 50% of the buyers in 2010 were first time buyers!

• 93% of those buyers used the tax credit to get the money back for buying a home! That means that after end of Tax Credit in July, 2010, only a few first time buyers even bought!! So the conclusion is the Tax Credit worked in helping the market, it would seem to me!

• 38% of the buyers indicated they found their new home with a Realtor. 37% said they found it on the Internet. Wouldn't surprise me. We are very strong in getting our listings out there on all kinds of sites for buyers to find us with pictures, virtual tours, links, videos, etc. More buyers are using the internet but perhaps some of these figures come from the fact that Realtors put their Buyers on a search program where new listings come up in their mailboxes which they can then say, they found their house on the internet.

• Buyers did rate photos, detailed information and virtual tours as the most useful web site features and we are sure to include plenty of such with our listings.

• 87% of the buyers said they definitely or probably would use their agent again but past history shows that only 17% of repeat buyers actually do! Now, why is that? Because the agent forgets about them and never contacts them again. Once you are one of our clients, you are a Client For Life! We love having you in our Real Estate Family.

We can share the whole survey with you if you would like to send us your email address. Thanks.

2011-01-24T11:54:00.002-06:00

Refinancing Advice!

Applications for refinancing are down right now while mortgages for purchasing is up a little. Hopefully it is a sign of the confidence of the buyer improving a little.

When you do refinance, you need to ask yourself why you are considering it:
• Is it to lower your payments and save on interest?
• Is it to shorten the term to pay the loan off sooner?
• Or is it to take additional cash out of your equity to consolidate your debts and provide some cash?

Check with your good mortgage person to make sure if you are paying points or origination fees that you might want to pay a slightly higher interest rate since points on a refinance are not deductible.

Reducing the years on your mortgage is a great idea. If you are refinancing back to another 30 year loan, I feel you are going backwards and that is not going to help you in the future getting your house paid off. You may never pay it off but you can certainly build equity quicker and your mortgage interest rate is usually lower.

2011-01-20T13:14:00.000-06:00

Financing for Dummies!

The fear of rejection, the horror stories from friends, and the general mistrust of mortgage companies have made the process of getting a loan more intimidating than it actually is!

The key is education! If you know what to expect, you will know when something doesn't seem right. There are 3 costs that are associated with buying a house: the down payment, the closing costs, and the prepaid expenses.

1. The Down Payment amount is determined on what kind of loan. Remember FHA still only requires 3.5% down.
2. Closing Costs are the fees associated with getting a mortgage. These fees include the mortgage and title company fees, the appraisal, credit report and attorney fees. If they say no closing costs, be wary. But be aware that some fees can be absorbed in the loan or paid by the seller but the fees are still there.
3. Prepaid Items would include prepaid interest, property taxes, homeowners insurance. These fees are dependent on what kind of loan you are getting in setting up an escrow or not having one.

Since we have fewer loan options than we had in the past, there are still two main loans, FHA and VA which are government loans, and Conventional loans. There are fixed rates and adjustables but with interest rates so low, there is no need for adjustables. We are seeing a few second loans to go with the first lien to make up a 80% loan value, but with PMI (private mortgage insurance) and MIP (Mortgage Insurance Premium on FHA) are now both deductible costs as they were not before.

A Professional Realtor can guide you to a qualified and helpful lender for your loan. Call us for references!

2011-01-17T13:07:00.001-06:00

What Buyers Want In a House!

The Top 5 Bathroom Features that consumers want:

89% stated Linen Closet

88% stated Exhaust Fan

79% stated Separate Shower Enclosure

79% stated Water Temperature Control

66% stated Whirlpool Tub

The Top 5 Kitchen Features that consumers want:

86% stated Walk-in Pantry

80% stated Kitchn Island

72% stated Built-in Microwave

69% stated Drinking Water Filtration

66% stated Special-Use Storage ( custom made for appliances)

If you were buying, would this be your same list of the top 5? If you were selling, do you have these in your current house?

2011-01-14T12:55:00.001-06:00

7 Habits for Longer Life!

1. Rest Up! Getting the right amount of sleep, about seven hours of sleep, research shows to be shown as ideal. Less than 5 hours of sleep had shorter lifespans.

2. Eat Right! Eating 5 servings of fruits and vegetables, drinking moderate amount of alcohol and not smoking gave a potential 14 extra years of life.

3. Make Friends! Research shows that people with large social networks were 22% less likely to die than they that reported few friends.

4. Use it, Don't Lose it! Exercise both body and mind. Keep your brain engaged, and get your body moving.

5. Mind Your Middle! Waist circumference is a strong predictor of mortality. Anything above 44 inches in men and 41 inches in women were associated with 25% higher mortality rates.

6. Get Fresh Air! Get out and enjoy the fresh air instead of the recycled air in your house and office.

7. Make it a Family Thing! In a study of centenarians in the U.S., people who had a 100 year old brother or sister lived longer than others born in the same year.

2011-01-13T12:42:00.001-06:00

Get a Realtor!

You might be very business savy, but you need a professional translator to help you through the home-buying maze! You may buy a house once every 7 years, but we are in the process daily. Why do you need a Realtor?
1. A good Realtor is conversant on real estate law and has access to contracts and disclosures.
2. A good Realtor can help buyers determine how much they can afford to spend for a house.
3. A good Realtor can help educate buyers on various neighborhoods, community information on utilities, zoning, schools, etc.
4. A good Realtor knows of other homes that are not in the system yet but would fit your needs.
5. A good Realtor can guide you in the wise investment of a home, perhaps bringing you down from the clouds when it might not be a good investment.
6. A good Realtor can really help during negotiations. There are many factors involved including terms, dates, repairs, etc. that a Realtor will explain and negotiate.
7. A good Realtor can advise you as to which inspections are recommended or required.
8. A good Realtor can oversee the evaluation of the property you are interested in buying by due diligence, making sure inspections are completed and the house is in good condition.
9. A good Realtor can help bridge the gap between your knowledge of financing with the lender since there are options that may not be understood easily.
10. A good Realtor can guide you through the closing process and make sure it goes smoothly without any “hiccups” all the way to Celebration (that's what we call closing!)

2011-01-12T12:19:00.001-06:00

Are you ready to buy a foreclosure?

If you are interested in foreclosures, this would be a good checklist to go over before buying a Bank-owned property.
1. Have you ever bought a foreclosure before?

2. Why do you want to buy a foreclosure? A good buy in your mind?

3. Is this for a primary residence or for an investment? As an investor, it is easier to walk away from the transaction, but if for yourself, it will be harder because you are emotionally involved.

4. If this is a primary residence, when do you need to move into the home? These transactions can take longer so you need a Plan B if the transaction drags on longer if you need to move quickly.

5. Do you have financing available? Financing can be a challenge since some foreclosures cannot be funded with the mortgages we have right now! It may require cash or doing a 203K loan if they are available.

6. Are you prepared to make repairs? If that property needs work before you can get a mortgage, remember the Bank will not do any repairs. Then, are you willing and having the funds to do the required repairs?

Be sure you get with a good agent that can guide you in buying a foreclosure as well as having your financing situation worked out before hand. Call us.

2011-01-11T17:14:00.005-06:00

Did You Know?

From the latest 2010 Survey of Sellers by NAR (National Association of Realtors), these are their findings: (These are National findings but some follow true with our local market as well.)

Half of the homes in 2010 sold in 8 weeks (56 days) average. I had an average of 39 days on the market in 2010.
The Sellers received 96% of their list price. (Same or higher in most of our cities in far North Dallas.) 43% got this price without a reduction and 27% reduced their price one time before selling.
56% of the sellers provided no Seller incentive. 25% of sellers did provide the home warranty. (Most sellers here in this area offer a Home Warranty and with FHA, sellers paid closing costs for buyer so this one might not be so true here.)
The average number of houses that the buyers look at was 12 in 2010 while it was lower at 7 houses before purchasing in 2009. (If you are working with a good Realtor that listens, that should always be true!)
What did the sellers want from their Realtors? 23% wanted help in pricing their house right and 21% wanted the agent to help them find a buyer. (Yes, yes!)
How did the Buyers find their house? 38% of the buyers found it through the Realtor but really not surprising, 37% buyers said they found their house on the Internet!

For more local statistics of our area, visit our website at HomeByBetty.com or click here.

2011-01-11T11:51:00.001-06:00

Center Stage

There are some strategies for staging your home that have been tried and true! Take a buyer's point of view.

1. Declutter: Sounds obvious but every surface should be as clear as possible --toiletries under the sink, photos put away.

2. Get rid of the ughly: If outdated or worn, remove or replace.

3. Empty the garage: When garages are so full of your excess, it makes them look small. Get rid of or move to rented storage space.

4. Clean: Needs to be "Q-tip clean" around sinks, corners, carpets, window treatments. Clean!!

5. Lighten up: Clean the windows, pull back the curtains, paint dark rooms lighter colors, add higher voltage on your lamps and lights.

6. Go shopping in the home: Move things from room to room if they work better in another room making the rooms for the use they were intended. We live in a house differently than when we sell a house!

7. Accessorize: Put in "moveable color" once you have cleared out a room. Throw pillows, candles but not too much.

8. Look for curb appeal: The outside is important as well as inside. Got to get the buyers through the front door! Remove dead plants, weed flowerbeds, trim the bushes so you can see the house. Go across the street to look at your house and see if you would be excited to go inside!

2011-01-10T17:00:00.001-06:00

Quick Update on Monday Market!

The bottom line for right now is that the familiar chant "Don't Fight the Fed" continues to ring true.

The Fed is intent on creating inflation, lowering the unemployment rate and raising Stock prices...and they have already been somewhat successful. Have you been noticing inflation on the products you are purchasing?

QE2 will likely keep coming until the employment picture improves significantly, and this is all going to be unfriendly for Bonds and home loan rates ahead. FHA is now quoting 5% without points and conventional mortgages are right behind. We will see them rising since we aren't seeing much improvement in unemployment.

2011-01-10T11:37:00.004-06:00

Paying Your Taxes!

Tax time is coming up. If you need more time to file your taxes, you can submit Form 4868 for a six-month extension. You can learn more about extensions on the IRS website.

But What If You Need More Time?
This year, instead of your tax filing being due on Friday, April 15, you’ll have a few extra days to complete and file your taxes. That means your tax filing isn’t due until Monday, April 18, 2011.

The three extra days have been added because of Emancipation Day, which is a little-known Washington, D.C. holiday that celebrates the freeing of slaves in the district. The holiday actually falls on Saturday, April 16 this year, but will officially be observed on Friday, April 15. As a result, the IRS pushed the filing deadline to Monday, April 18 - since the tax code states that filing deadlines can’t fall on Saturdays, Sundays or holidays.

Problems Paying?
But what do you do if you’ve completed your tax returns only to find out that you owe way more to Uncle Sam than you were expecting - or worse, that your tax bill is more than you can possibly afford to pay right now? Don't worry. If this is the case, you're not alone... especially in today’s economy. And, more importantly, you're not going to jail just for being a little short on cash.

Rest assured, the IRS only seeks criminal charges for those who the agency can prove intentionally chose not to file and pay taxes. So, even if you can't pay your bill right away, file your return on time, and not only will you stay off the IRS's bad side, you'll avoid some hefty financial penalties in the process.

Penalties and Interest Charges
According to the IRS, the penalty for filing late is generally 5% per month, or up to 25% of the total tax amount due. Not to mention interest charges, which the IRS changes quarterly, and which range between 4% and 9%. This interest applies to the unpaid balance, penalties, and to any interest that has been charged to the account as well.

If no effort is made to pay back-taxes, the IRS can impose stricter penalties, including levying bank accounts, wages, other income, or taking other assets like houses and cars. A Federal Tax Lien could also be filed, which could ruin your credit history for years to come.

The penalty for filing on time but paying late, however, is much lower. If you choose an installment plan to pay your debt, interest will accrue on the unpaid debt amount only. Therefore, when you file your return, pay as much as you can to help cut down the penalties. (Thanks to Mary Nelson with Wells Fargo for this summary)

2011-01-08T16:17:00.002-06:00

Outlook for 2011

All signs point to 2011 being a better year. This week the stock market hit a two-year high and CNN reports a hiring boom for 2011.

Refinances are just about done. Interest rates are sliding higher, so the refinances will slow down.

As a reminder, this year PMI is tax deductible. About 85% of loans done in 2010 were FHA, which had PMI. So check with your accountant if you bought a house last year for your taxes for 2011. Buy a house this year and take the writeoff!

I also want to remind you that most banks have increased the minimum credit score to 640 which is not helping bringing in some first time buyers that have not cared for their credit as well as they should have in the past and it is reflected in their scores now when they want to buy.

It is still a good time to buy!

2011-01-07T08:00:00.001-06:00

TURN PLASTIC INTO CASH!

How many gift cards do you have kicking around unused? Did you get several for Christmas gifts? Maybe you really don't like the store or their merchandise. How about turning these dust collectors into cash?

Click here!

These folks help consumers unlock the billions of dollars of gift cards that are never used. They offer a convenient and safe way to get the most out of gift cards. You can cash in gift cards with a minimum balance of $25 for up to 92% of the card balance. They'll also exchange your unwanted cards for purchasing power at stores like Amazon.com, or donate them for the benefit of your favorite nonprofit organization.

Worth a look - it's cash!

(Recommended by Real Estate CyberSpace Society of which I am a member!)

2011-01-06T10:05:00.002-06:00

Tax Bill!

On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) extending the Bush-era tax rates. The legislation is not "paid for” it as yet!

A few key provisions of interest to Real Estate:
• Retention of Bush-era tax brackets through the 2011 and 2012 tax years;
• Retention of the capital gains tax rate of 15 percent for assets sold or disposed of during 2011 and 2012;
• Extension of numerous energy efficiency credits through December 31, 2011, including: the Energy Efficient New Homes, Energy Efficient Existing Homes, and Energy Efficient Buildings credits.

I think the change in capital gains would have hurt our struggling market, so was glad to hear that they left at least that benefit on the table.

2010-12-24T18:10:00.001-06:00

Got Cash?

Won't do you much good having cash on the Tollways right now! The North Texas Tollway Authority has completed its transition to a cashless toll system December 11th with the conversion of the Dallas North Tollway, Addison Airport Toll Tunnel and Mountain Creek Lake Bridge. Did you get caught in the change of a cashless drive to work? We've always had a Toll Tag on our cars and would be utterly useless if I had to have cash since I seldom carry any, but I don’t travel the Tollway very often as some of you do.

Motorists without TollTags instead will be billed later at the higher rate with ZipCash, the NTTA’s pay-by-invoice option. That will get expensive after a while.

I was wondering why the switch to cashless tolling was done? NTTA states that “it will bring our region reduced congestion, improved safety and enhanced air quality through the free flow of traffic and the elimination of stopping and starting and weaving of toll booths.” Interesting!

If you don’t have a Toll Tag, drivers can open TollTag accounts online at www.NTTA.org, over the phone at 972-818-6882 or by visiting the NTTA or a nearby TollTag partner location.

Think I’ll keep my tag and pay for $40 whenever it runs out.

2010-12-23T17:41:00.002-06:00

Market Report for December, 2010

December is normally a slower time in the market as is January and then we usually start our climb upward. (See attached graph for Plano) We will see when the climb starts this year. We had an OK December and have started out in January with some activity which we are pleased, but we want to see 2011 to be a better year.

We don’t think you will see prices go up this year but we don’t see them coming down either. We do see interest rates rising now even though there is not much demand. Rates bounced to 5% and not that 4.25% we have been seeing for months. Perhaps if rates do start to rise, we will see the buyers that are on the fence start making decisions.

We do feel we have a lot of buyers on the fence and they are scared about the unknown future as all of us are since we can’t see the future. From our economy here in Texas and our job market, we are really in good shape and don’t predict that anything will change our consistency here, so personally, we do not think it is a “scary” time to buy, but a very smart thing if you get the right advice. Of course we are here to guide you in your journey.

2010-12-15T15:45:00.000-06:00

The program, named the "Home Payment Protection Program," was triggered by California's continued high unemployment rate. It is a creative idea to make the buyers feel more comfortable in stepping out to purchase. Remember when the car dealerships were offering similar programs that they would buy your car back from the buyer if they lost their job?

"Most people wanting to buy houses today have a fear: What happens if I lose my job?" CAR president Beth Peerce said. "This plan takes some of that stress away." The program extends to buyers who've lost their jobs within one year of close of escrow. Sellers may choose between payments of $200 for six mortgage payments of up to $1,000 each or $275 for six payments of $1,500.00 each.

Not sure I see such a program being offered here in the North Dallas/Texas area but we shall see. It is true that "losing one's job" is the number one fear of a buyer buying a home right now. I do agree!

2010-12-12T15:32:00.001-06:00

Are Home Prices Slipping?

Again, another article came out of the Dallas Morning News this past week suggesting that the average house price in Dallas is slipping compared to what it was last month and last year. I’m still not seeing that in the monthly statistics for our cities up here north, Allen, Frisco, Plano, and McKinney. (Click here to see the statistics that we have put together for our northern cities.)

Home affordability is still high with prices flat and interest rates low. That is what will be hard to beat in the coming months and years. To have this combination is very difficult! Our rates are the lowest in history. More people are refinancing which does stabilize the market in the long run since refinancing lowers their payment in most cases and they can remain in their homes rather than selling and moving down in hard times.

National Association of Home Builders states in their recent study that 72.1 percent of all new and existing homes sold in the third quarter of 2010 were affordable to families earning the national median income of $64,400.

2010-12-10T15:29:00.001-06:00

Why Did You Buy a House?

Was it because you received the interest and tax deductions on your income tax? Well, the Deficit Reduction Commission is considering modifying the mortgage interest deduction! That is going to cause a “chill” in the housing market since we preach (as Realtors and Lenders) that buying a house is a good investment because of the interest deduction.

National Association of Realtors is suggesting that over time by paring back this deduction, it would reduce the value of homes by 15%. NAR suggests that this level of wealth destruction is “unacceptable” especially in the economic environment that we are in. Needless to say, Realtors and Lenders are giving our say to Congress as well. You can also!

2010-12-07T15:19:00.001-06:00

Are Interest Rates Rising?

Yes we are seeing a little increase with the average rates on 30 year loans at the end of November being closer to 4.75% while they have been as low as 4.00% and having one builder offer 3.9% on a new home.

The government loans (FHA and VA) have seen a downtrend of delinquency on the mortgages that they have right now, so that is good news. Actually at 9.13% delinquency rate is the lowest since the first quarter of 2009 and lower than it was a year ago. That is still good! That means the tightening of qualification and requiring having a job and having some money, fewer buyers are getting into homes they can’t afford and fewer default on their loans.

If we can see an improved delinquency rate, perhaps some of these stricter rules like higher credit scores could be adjusted down a little. There are good buyers out there that just goofed up one time and messed up their credit and they cannot buy. I like a lot of the restraints on buying qualification but the pendulum is way over, being extreme. We need to come back to the reasonable middle!

2010-12-06T15:08:00.002-06:00

Refinancing Advice!

Applications for refinancing are down right now while mortgages for purchasing are up a little. Hopefully it is a sign of the confidence of the buyer improving a little.
When you do refinance, you need to ask yourself why you are considering refinancing:
• Is it to lower your payments and save on interest?
• Is it to shorten the term to pay the loan off sooner?
• Or is it to take additional cash out of your equity to consolidate your debts and provide some cash?

Check with your good mortgage person to make sure if you are paying points or origination fees that you might want to pay a slightly higher interest rate since points on a refinance are not deductible.

Reducing the years on your mortgage is a great idea. If you are refinancing back to another 30 year loan, I feel you are going backwards and that is not going to help you in the future getting your house paid off. You may never pay it off but you can certainly build equity quicker and your mortgage interest rate is usually lower.

2010-11-17T10:37:00.005-06:00

This Month's Statistics in Cities of North Dallas!

Below is a link to the Statistics for most of our areas and cities in North Dallas. The numbers of houses sold are down in Plano with 89 houses less than this time last year. But notice the average sales price......we are higher this month and a little higher for the whole year which is good! But the pendings and option contracts are down and the inventory is higher which means there is more competition out there for sellers to grab those few buyers.

The article in the Dallas Morning News for November 16th is suggesting that our prices are going to begin to fall in our area. I have not seen that in our local statistics but do know some areas and neighborhoods have not kept their values. Will this make more buyers to get out and try to buy or make them wait until the "bottom" comes! You never know when the bottom is until it begins to climb upwards!

Talked to a lady who had her house on the market for the last 7 months and had not sold and I suggested she was too high. She said they needed the money. But what you want and what the market gives you are not always the same! Since I told her how "flat" our prices had been, I decided I had to prove it which I did. Went back 4 years earlier when she bought the house and the average price of sold homes in Plano was $264,669 and the average price this October, 2010 is $265,981! Wow, not much change! So how can you get $15,000 more out of the house with no escalation in value?

Click Here for Latest Statistics

2010-11-13T10:24:00.003-06:00

Does Your Credit Score Really Matter?

Yes, your credit score does matter! There is a direct relationship with lenders on your credit score and what kind of interest rate you can expect to receive from the lender.

OK, the scenerio is that you start shopping lenders for rates. They give you the best rate but that is based on a great credit score! You later find out that your credit score is only 660, so you receive a higher interest rate of 5.079% instead of the 4.466% that was quoted you. See the chart below:

30 year Fixed Rate Mortgage - $200,000 Loan Amount
FICO Score APR Monthly Payment
760-850 4.466% $1,009
700-759 4.688% $1,036
680-699 4.865% $1,057
660-679 5.079% $1,083
640-659 5.509% $1,137
620-639 6.055% $1,206

What's the solution so you won't be blindsided? Get pre-qualified! Have the lender run your credit score so you know what your rates will be and your payment. When interviewing with lenders, find one that you feel is honest and has your interst at heart, is knowledgeable and is willing to take the time to explain things to you. Don't shop rates!!

I will be happy to guide you in your search even though I am not a lender but have enough experience in the business, I know who you need to work with that best fits those guidelines.

2010-11-10T08:04:00.001-06:00

Why Aren’t Banks Loaning Their Money?

Nearly 50 years, from 1958 to 2008, according to the Texas A & M Research Center, Banks really held no excess reserves. Then in March, 2010, the reserves reached an unbelievable $1,120 billion. These excess reserves are like gasoline pooling in the bottom of a barbecue grill full of smoldering charcoal. The Fed has poured all this massive amount of gasoline to try to ignite the fire. It has not worked.

Banks usually have required reserves and excess reserves. They usually don’t keep as much in excess reserves. They don’t make as much of a profit from funds held by the Feds which range from 0% to ¼%, according to the Texas Real Estate Center. Banks are sitting on all this money. Why are Banks not making loans to consumers and businesses but are having more fed funds? It looks like they feel it is a risk-free return as the best investment option. Question is how is this going to affect future inflation?

I’m not an economist and really don’t understand how Banks work but I do know that we have too many restrictions in getting loans right now. I’m not talking about 100% financing and anyone can get a loan and everyone should buy a house. I’m talking about common sense lending that takes in the whole picture of a borrower rather than just using the FICO scores!

2010-11-09T07:58:00.002-06:00

What's Worse? Short Sale or Foreclosure?

You decide you want to do a Short Sale when you are upside down on your mortgage (you owe more than what you can sell it for), there are some requirements that will typically have to be fulfilled:
• The home’s current market value is less than the debt.
• The mortgage is in or near default. Lenders historically will not even consider a short sale unless the loan is delinquent and in default.
• The seller has a true hardship with little hope of bringing or keeping the loan current or of being able to make up any deficiency between the net sale price and the amount of the debt. Some hardships would be loss of job or income, divorce, medical costs, emergencies, death, bankruptcy.
• The seller has no other assets with which to pay back all or part of the debt.
• The borrower is unable to qualify to modify or refinance the loan.
What’s the after effect of having a short sale or foreclosure? A short sale remains on the credit report for seven years; the impact will diminish in a couple of years as long as it is the only blemish on the credit score. A foreclosure will stay for the 7 years. Usually, there is taxable income for the borrower that has a Short Sale.
(The Real Estate Center @ Texas a & M University)

2010-11-06T16:02:00.003-05:00

How Low Are Our Interest Rates Now?

Interest rates today are the same as when you or your parents (might need to ask them!) :

Paid twenty-two cents for a loaf of bread,

Paid forty-five cents for a pound of hamburger meat,

The average cost of a new car was $2,600,

The average salary was $5,315,

The average home sold for $12,700!

That was all in 1960! And our interest rates are the same as 1960!

There are good buys in the marketplace and "flat" prices on homes. You need good credit to go with it, and only 3.5% down payment.

If you are in the "thinking" mode, we have some other material we would be happy to share with you. Just email us at Betty@HomesByBetty.com

2010-10-15T15:15:00.001-05:00

Get the most current bank owned foreclosure inventory for Plano at www.BankOwnedWeekly.com/Plano

2010-10-08T14:36:00.003-05:00

Get the most current bank owned foreclosure inventory for Frisco at www.BankOwnedWeekly.com/Frisco

2010-10-08T14:30:00.003-05:00

Get the most current bank owned foreclosure inventory for McKinney at www.BankOwnedWeekly.com/McKinney

2010-10-08T14:22:00.003-05:00

Get the most current bank owned foreclosure inventory for Plano at www.BankOwnedWeekly.com/Plano

2010-10-06T16:42:00.002-05:00

Get the most current bank owned foreclosure inventory for Plano, Texas at http://www.BankOwnedWeekly.com/Plano

2010-10-03T11:44:00.002-05:00

Is Renting A Good Idea?

Today there are more home renters than ever before. Many current renters are former owners who faced the foreclosure of their home or experienced other financial problems.

These renters are now living in what they consider to be temporary housing, waiting for the opportunity to again purchase a home of their own. Some renters are planning to remain in a rental unit indefinitely, while most are eager to move into a newly purchased home.

It might surprise you to learn that the amount of money a renter spends on rent can be about the same as or more than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant. This was revealed in a recent report from Ginnie Mae.

A renter must expect annual increases of about 5 percent in monthly rent, on average. In a few years this can bring the rent up to or beyond the level of principle and interest payments on a fixed-rate mortgage, especially in today's market where interest rates are historically low.

One big advantage of owning a home, in addition to pride of ownership, is the ongoing tax advantages. This includes the deductibility of interest payments and property taxes. Also, with each payment the balance of the amount owed declines, thus building equity in the property for the owners. Many families consider ownership of their home as their best saving program. In time their equity can grow their capital worth to the point where they can acquire a more expensive step-up home.

A lesser known benefit of home ownership relates to its effect on children. Several studies have pointed to the positive impact of ownership on the lives of kids in the household. They feel more secure and tend to be more self-confident while living in a home owned by their family as opposed to living in a rental residence.

2010-10-02T11:11:00.003-05:00

Should You Walk Away From Your Mortgage?

Most consumers say it's unacceptable for homeowners to stop making their mortgage payments and abandon their homes, according to a Pew Research Center survey reported by Trey Robertson with Nortex Mortgage.

More than a third (36%) say the practice of walking away from a home mortgage is acceptable, at least under certain circumstances. Nearly six-in-ten (59%) believe it is wrong for homeowners to deliberately stop paying their mortgages and surrender their homes to the mortgage lender, according to the survey. But two-in-ten (19%) say it's acceptable and an additional 17% volunteer that it depends on the circumstances.

What do you think? Or what would you do if you were upside down in your mortgage and lost your job? Under what circumstances would it be alright to walk away from your contract commitment to repay the loan that you signed when you bought your home?

Do you know the consequences of walking away from a mortgage? How long it will be on your credit? How long before you could purchase again? Will the mortgage company come after you and sue you? Can they do that?

Good questions and would be happy to answer any of them if we can. The trouble is when we hear of owners living in their houses "free" for many months, even over a year without paying a payment before the Bank foreclosures, it does anger us that scrap and tighten up our belts in order to be current on our mortgages and we may be hurting also.

2010-10-01T21:37:00.000-05:00

What Does It Look Like in the Market Place?

Well, you are listening to me! So many sellers and buyers have decided this is the time to sell and buy. Congratulations to them and you! I believe this is a good decision. Why do I think that this is the perfect time?

The first reason is that interest rates are as low as you are going to see them for many years to come. We are at 4.25% and then, we drop a little below, then bounce back to 4.50%. Without the Tax Credit Programs for both first time buyers and move up or move down buyers that ceased at the end of April, the interest rates will climb again. We, as taxpayers, must pay back what we have spent and given away as incentives for the economy.

FHA is the major mortgage loan that is available and being used, but changes are coming which will knock out even more of our buyers that can qualify. The upfront MIP (Mortgage Insurance Premium) is rising from 1.75% to 2.25%. The down payment will increase from 3.5% to 5% down payment. Minimum FICO credit score will increase to 640 compared to 620 and 580 as is required now. Now, you say, I am not in that lower price range, so why should it affect me? It does because the first time buyer must buy, so that seller can buy your house and so forth in the “domino” affect.

2010-03-03T15:48:00.003-06:00

Have you been receiving all of these colors post cards and huge ones at that, with pictures and testimonials on them for candidates running for office? (I must confess that the endorsement of the Realtors is on one card and I am in that group picture being on the CCAR Board.)
I have done marketing like this in the past! Sounds a lot like Real Estate Marketing, but I know how much those mail outs cost. And the fact that the bigger colored ones costs even more. I just think I have seen more this year than ever before and was wondering what you thought.Now, if we are tired of the same people in office making decisions without our best interest at heart, then why are these candidates spending all this money on mail outs and marketing? Where are they getting their money and to whom do they owe once they get into office? Yes, it just becomes the same, vicious cycle. I don’t see myself as being political but I have eyes and ears and can see that our system is not working correctly. Most “average” honest, working Americans that have a burning heart to participate could not afford to run for office. You would be become broke but guess once you are in there, you become a millionaire. Ahhhh, maybe it is worth it!

2010-02-11T21:43:00.003-06:00

Are You Interested in Buying a Foreclosure?

Is this a good time to be buying a Foreclosures? Where can I find Foreclosures? Is there a list somewhere? What is involved in buying a Foreclosure? Can I do it on my own or do I need a professional to represent me? What is a Foreclosure and what do you mean when you say a house is a Foreclosure? Is it the same as a Short Sale? Do I get the Tax Credit when I buy a Foreclosure? Who is the seller in a Foreclosure?

Do you have lots of questions about Foreclosures? We can answer them in our Buyers Class that is offered the first and 3rd Tuesday of every month. Call 1-866-927-4771 ext. 25 to make your reservation for this Free informative class without obligation. Click Here for more information and register online!

2010-02-09T21:23:00.003-06:00

Are you ready?
Are your ready to purchase a home in the best "buying" time that we will see for a long time to come?

HUD (Housing Urban Development) just announced changes that will occur in the spring that will require a lot more mone out of pocket for the buyer. (Remember the zero down loans?) In addition, the tax credits ends with contracts only until April 30th, 2010.

Interest rates are still historically low but we know they will increase by the end of March because of the end of the Feds artifically decreasing them through the purchase of Mortgage Backed Securities.

Right now is such a perfect time to purchase and I would hate for you to miss out on any of the benefits that we still have over the next couple of months!

Find out more by registering for our Buyer's Class offered the first Tuesday and 4th Tuesday of the month or just email or call for your free Tax Credit Guide.

2010-01-19T16:09:00.006-06:00

Here is a couple of clips from an article in the Collin County Business Press!

Local housing market emerging from the doom

By Stewart James,

The cities of Allen, Plano, Frisco and McKinney all experienced an increase in home sales for November, said Betty

Magee, owner of Plano-based Magee and Associates.

“We have not gone down that much, so we should be one of the first to rise in values,” Magee said. “Our economy is

stronger here although we are going to be slow in coming back as well, but think we will still be one of the first to really

recover.”

Another sign values will increase is the low inventory of Collin County and homebuilder properties, Magee said.

Short sales and foreclosures remain major challenges facing the housing market in 2010, Magee said.

“Banks are making it very difficult to get answers when offers are submitted and buyers are very put off by it all, after

waiting two months to get an answer and then having to compete for the property when the banks seem to wait around for

multiple offers,” Magee said. “The lenders are causing us problems with getting these loans closed.”

“For the government wanting to get housing off the ground, they need not to swing so far to the other side of the

pendulum,” Magee said. “Underwriters are making rules that FHA [Federal Housing Administration] is not requiring.”

“Sales were up in November across the board since most buyers and lenders were told that the $8,000 tax credit would

end on December 1,” Magee said.

“We still need more buyers out to take advantage of it,” Magee said. “It will be tough at the rate we are going.”

Magee said now is the time to buy.

“But I don’t see the rush out there as we should,” Magee said. “This is a unique opportunity with prices flat and down,

interest rates below 5 percent, and the extra incentives from the government. Buyers act like it will last forever. I predict a

lot of buyers will kick themselves next summer.”

2010-01-08T13:57:00.002-06:00

About the same as 2008

The Texas economy is in a recession like the rest of the country but is weathering a little better than most. Here are the facts:

2.6% was the percentage of jobs lost in Texas between June 2008 and June 2009 while comparing the percentage of jobs lost in the U.S. during that same period was 4.2%.

2.7% was the percentage of increase in Texas unemployment rate between June 2008 to June 2009 while 3.9% was the increase in the U.S. unemployment rate.

$154,700 was the median price of a single family home in Texas in June 2009 while….. $155,000 was the median price in Texas in June 2009.

2010-01-07T14:48:00.001-06:00

Go Figure:

Millionaires live in the most expensive homes, right? You might be surprised. These numbers are from the book , Stop Acting Rich….And Start Living Like a Real Millionaire by Thomas Stanley, Ph.D.

403,211 is the number of millionaires who live in homes valued at $1 million or more

1,138,070 is the number of millionaires who live in homes valued at $300,000 or less

90% of the millionaires live in homes valued at $1 million or less

67,000 is the approximate number of millionaires who live in mobile homes.

41% of homes valued at $1 million or higher are actually owned by people with $200,000 or higher annual income.

27% is the percentage of homes that are valued at $1 million or higher that are actually owned by millionaires.

Surprising, huh? Go figure.

2010-01-06T14:37:00.002-06:00

Shop Plano

Remember I had suggested that Plano was hurting as well as the rest of our neighboring sister cities with the fall in the amount of sales tax. People are not buying as much. Therefore the sales tax is down.

Plano’s decrease from 2008 has been 13.2%. That hurts! Frisco was 7.5% and Dallas itself was down 9.5% from 2008. How do these cities continue to have city services when this is a major source of their income? Allen is down 12% even with the two new shopping centers of Watters Creek and the Village at Allen.

Plano was the undisputed retail giant among the northern suburbs, but now the neighboring cities are getting their share of the shoppers. Leaders in Plano fear this trend might be accelerating. Hence, the Plano’s promotion of eat, buy and drink in Plano.

Such reports add to the worries that the spending slump may not be over. We will have to see how retail and spending ended up over the Christmas and Holiday shopping.

2010-01-04T21:31:00.003-06:00

4 Things You Didn’t Know About Sex Offenders

1. Fact: There is a sex offender living in almost every neighborhood. You can go to http://records.txdps.state.tx.us/ and click on “public Sex Offender Search,” and enter your county or your ZIP code to see.

2. When you get ready to sell your house, you are not required to disclose a nearby registered sex offender, but it would be prudent to somehow suggest that a buyer look up any in the neighbor…if not the neighbors will tell them after they buy and move in.

3. “Sex offender” means many things, even a 14 year old who emailed his friend a naked photo of his underage girlfriend as well as the 40 year old rapist.

4. Not all people convicted of sex crimes in Texas are on the list. Registration requirements vary depending on an offender’s crime, from 10 years to life. Someone who was convicted of a sex crime in 1998 may no longer be in the registry.

The Texas Sex Offender Registration Program provides a valuable public service, but it does have its limitations.

2010-01-04T21:21:00.003-06:00

Are You Being Legal?

Using Cell Phones in School Zones:
The law states that as of Sept 1, 2009, Texans may not operate a wireless communication device in a school zone without the use of a hands-free equipment. This may include sending and receiving text messages, email or other content on your wireless communication device.

The details: At every entrance to a school zone, the city, county or other political entity must post a sign that warns drivers that the use of a wireless communication devise without a hands-free devise is illegal and the operator may be subject to a fine. If the sign is not there, law enforcement probably won’t cite you unless the signs are posted.

Bottom line: Use a hands-free device if you must take calls when driving in a school zone.

2009-12-13T16:56:00.006-06:00

Someone is Watching!

In Atlanta, two homeowners were robbed at different times and both had security cameras in their homes. Turned out that the same robber was at both homes. One homeowner posted his video from the robbery on YouTube and it was picked up and noticed by the second victim. From the videos, the criminals were caught and sentenced.

It’s up to the community to protect themselves, and that’s unfortunate, Baxter said Thursday before sentencing Jackson. If it hadn’t been for technology, police wouldn’t have solved this.

Check out the full story here, Read the article here
See the actual videos of the robberies on the YouTube videos here:
2009 break-in
2008 break in