Home inspections will vary depending on the type of property you are purchasing. A large historic home, for example, will require a more specialized inspection than a small condominium. However, the following are the basic elements that a home inspector will check. You can also use this list to help you evaluate properties you might purchase.

For more information, try the virtual home inspection at www.ASHI.org, the Web site of the American Society of Home Inspectors.

Structure: A home’s skeleton impacts how the property stands up to weather, gravity, and the earth. Structural components, including the foundation and the framing, should be inspected.

Exterior: The inspector should look at sidewalks, driveways, steps, windows, and doors. A home’s siding, trim, and surface drainage also are part of an exterior inspection.

• Doors and windows
• Siding (brick, stone, stucco, vinyl, wood, etc.)
• Driveways/sidewalks
• Attached porches, decks, and balconies

Roofing: A well-maintained roof protects you from rain, snow, and other forces of nature. Take note of the roof’s age, conditions of flashing, roof draining systems (pooling water), buckled shingles, loose gutters and downspouts, skylight, and chimneys.

Plumbing: Thoroughly examine the water supply and drainage systems, water heating equipment, and fuel storage systems. Drainage pumps and sump pumps also fall under this category. Poor water pressure, banging pipes, rust spots, or corrosion can indicate problems.

Electrical: Safe electrical wiring is essential. Look for the condition of service entrance wires, service panels, breakers and fuses, and disconnects. Also take note of the number of outlets in each room. 

Heating: The home’s heating system, vent system, flues, and chimneys should be inspected. Look for age of water heater, whether the size is adequate for the house, speed of recovery, and energy rating.

Air Conditioning: Your inspector should describe your home cooling system, its energy source, and inspect the central and through-wall cooling equipment. Consider the age and energy rating of the system.

Interiors: An inspection of the inside of the home can reveal plumbing leaks, insect damage, rot, construction defects, and other issues. An inspector should take a close look at:

• Walls, ceilings and floors
• Steps, stairways, and railings
• Countertops and cabinets
• Garage doors and garage door systems

Ventilation/insulation: To prevent energy loss, check for adequate insulation and ventilation in the attic and in unfinished areas such as crawlspaces. Also look for proper, secured insulation in walls. Insulation should be appropriate for the climate. Excess moisture in the home can lead to mold and water damage.  

Fireplaces: They’re charming, but they could be dangerous if not properly installed. Inspectors should examine the system, including the vent and flue, and describe solid fuel burning appliances.

Source: American Society of Home Inspectors (www.AHSI.org)

Reprinted from REALTOR® magazine ( www.REALTOR.org/realtormag ) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the home buying process as peaceful as possible.

Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

Remember, buying a home should be fun, not stressful and I am here to help you every step of the way.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.  Copyright 2008. All rights reserved.

Moving Checklist for Sellers
 

Moving can be a hectic time so it can be helpful to have a moving checklist on hand to help keep things organized.

• Provide the post office with your forwarding address two to four weeks ahead of the move.

• Notify your credit card companies, magazine subscriptions, and bank of your change of address.

• Create a list of friends, relatives, and business colleagues who need to be notified about your move.

• Arrange to disconnect utilities and have them connected at your new home.

• Cancel the newspaper, or change the address so it will arrive at your new home.

• Check insurance coverage for the items you’re moving. Usually movers only cover what they pack.

• Clean out appliances and prepare them for moving, if applicable.

• Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.

• Check with your condo or co-op about any restrictions on using the elevator or particular exits for moving.  

• Have a “first open” box with the things you’ll need most, such as toilet paper, soap, trash bags, scissors,hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

If you’re moving out of town, be sure to:

Get copies of medical and dental records and prescriptions for your family and your pets.

• Get copies of children’s school records for transfer.

• Ask friends for introductions to anyone they know in your new neighborhood.

• Consider special car needs for pets when traveling.

• Let a friend or relative know your route.

• Empty your safety deposit box.

• Put plants in boxes with holes for air circulation if you’re moving in cold weather.

Plus, What to Have on Hand for the New Owners

• Owner’s manuals and warranties for appliances left in the house.
• Garage door opener.
• Extra sets of house keys.
• A list of local service providers — the best dry cleaner, yard service, plumber, etc.
• Code to the security alarm and phone number of the monitoring service if not discontinued.
• As a courtesy, you could provide numbers to the local utility companies.
• If it’s a condo, leave information on how to contact the condo board.

Keep this moving checklist handy and stay on top of the craziness!

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Time to File for the Homestead Exemption

At closing I always talk to my clients about the homestead exemption, some know all about it and some do not, especially those moving into the area from another.  Basically a homestead exemption is a type of legal protection of your primary residence from creditors and such, due to circumstances caused by hardship.  It also reduces your property taxes by a decent amount. In some states the homestead exemption is given automatically but in Texas it has to be filed by the homeowner and must be done by January 31st to get the exemption for this year.  You must also have occupied the property on January 1^st of that year in order to be eligible for the exemption as well.

Also there was a rule change effective September 1^st, 2011 They are now requiring that all three of the following items -- (residence address, driver license / ID card and vehicle registration) have the same address on them. So if you haven’t had a chance to do this yet here are some helps to get it done quickly on line.

If you need to change your address on your driver’s license it can be done online at https://txapps.texas.gov/tolapp/txdl they will give you a receipt with the new address on it. Or for your convenience here are a few locations around here to go in person:

• 400 Power House St, McKinney  75071        214.733.5350
• 2109 W Parker Rd, Suite 224, Plano  75023        972.867.4221

If you need to change your vehicle registration address it can also be done online at https://rts.texasonline.state.tx.us/NASApp/txdotrts/AddressChangeServlet you will also get a receipt with the new address on it as well.  Or for your convenience here are a few locations around here to go in person:

• 2300 Bloomdale Rd, Suite 2302, McKinney  75071       972.547.5014
• 920 E Park Blvd, Suite 100, Plano  75074        972.881.3014
• 6101 Frisco Square Blvd, Suite 2000, Frisco  75034       469.362.5800 (I have always had luck with short lines at the Frisco location.)

Homestead Forms:

The form for Collin County homeowners can be found at: http://www.collincad.org/forms/CCAD-114_hs_exempt_app_collin.pdf

The form for Denton County homeowners can be found at: http://www.dentoncad.com/docs/forms/2010/homestead.pdf

That should be everything you need help to get the homestead exemption filed on time, good luck! 

Thinking of Remodeling Your Home?
 

Think your remodeling project through from start to finish. Careful planning of your home improvement projects will enable you to update your home, increase the value of your investment and customize your living space; all for a lot less than the cost of a new home. 

Look over your property carefully. What repairs are needed? What improvements would you like to make? Think ahead and determine your future needs. Professional remodeling contractors can help you in your planning by outlining options and discussing the improvements you can make within your budget.

Design and function should be foremost in your mind if you’re thinking of adding a room or converting an existing room. Give thought to details such as: where you want electrical outlets, telephone jacks and cable hook-ups located; the type of lighting required; your current and future storage needs; and whether you want to include luxury items.  These details will enable your remodel to better suit your needs and lifestyle. A professional remodeler should be consulted about design and function of any remodeling project.  He or she can also help you with time and money-saving hints.

Lastly, be sure to review your homeowner’s insurance policy and make adjustments for the added value of the work being done.

12 Tips for Hiring a Remodeling Contractor

1. Get at least three written estimates.

2. Check references. If possible, view earlier jobs the contractor completed.

3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.

4. Be sure the contract states exactly what is to be done and how change orders will be handled.

5. Make as small of a down payment as possible so you won’t lose a lot if the contractor fails to complete the job.

6. Be sure that the contractor has the necessary permits, licenses, and insurance.

7. Check that the contract states when the work will be completed and what recourse you have if it isn’t. Also, remember that in many instances you can cancel a contract within three business days of signing it.

8. Ask if the contractor’s workers will do the entire job or whether subcontractors will be involved too.

9. Get the contractor to indemnify you if work does not meet any local building codes or regulations.

10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.

11. Guarantee that the materials that will be used meet your specifications.

12. Don’t make the final payment until you’re satisfied with the work.

A good place to start your search for a contractor is to ask friends or colleagues if they have experienced working with one and get recommendations.  Interview them, and get customer references before deciding which contractor to help you in remodeling your home. Your agent may also have some quality referrals for remodeling.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.Copyright 2008. All rights reserved.

7 Reasons to Own A Home

From money in your pocket to freedom to choose there are several reasons to own a home, here are just a few.

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether owning a home is the best financial option for you, use the “Buy vs. Rent” calculator at www.ginniemae.gov

Reprinted from REALTOR® magazine ( REALTOR.org/realtormag ) with permission of the NATIONAL ASSOCIATION OF REALTORS®.  Copyright 2008. All rights reserved.

5 Things to do Before Putting Your Home on the Market

A few things to consider before putting your home on the market.

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn out or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin. 

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

In Addition, Some Low-Cost Ways to Spruce Up Your Home’s Exterior

Make your home more appealing for yourself and potential buyers with these quick and easy tips:

1. Trim bushes so they don’t block windows or architectural details.

2. Mow your lawn, and turn on the sprinklers for 30 minutes before the showing to make the lawn sparkle.

3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.

4. Install new doorknobs on your front door.

5. Repair any cracks in the driveway.

6. Edge the grass around walkways and trees.

7. Keep your garden tools and hoses out of sight.

8. Clear toys from the lawn.

9. Buy a new mailbox.

10. Upgrade your outside lighting.

11. Buy a new doormat for the outside of your front door.

12. Clean your windows, inside and outside.

13. Polish or replace your house numbers.

14. Place a seasonal wreath on your door.

It always helps to consider these things before putting your home on the market.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

SMART Goal Setting for the New Year

This last week of the year between Christmas and New Year’s is one of my most favorite times of the year.  I don’t think I am alone; it is a time for reflection and a time for renewal.  Everyone loves the idea of a fresh start and a new beginning.  The calendar brings us many opportunities for fresh starts such as the 1^st of the month and the proverbial “Monday”, but there is just none like the 1^st of a brand new year!

This time is used by many to reflect on the past year, goal setting and of course making the ever so important New Year resolutions.  Many snicker when they see those around making new resolutions and goals, but the fact is that goal setting has been proven to affect the outcome of your life. Years ago, Harvard University did a study on goal-setting.  They took the graduating class of 1953 and asked them to set some goals for their careers, only 3% chose to do so. They discovered that twenty years after graduation, the 3% of that class who wrote down their career goals had a higher net worth than the 97% who did not write down goals.   In fact, it is said that those who openly make resolutions are 10 times more likely to achieve their goals, so why do people scoff?  It may be that for many it is easier to remember failure than success and many quit after one failure. It is said that 20% of the resolutions made are broken in the first week and by the end of the year 80% have been broken.

What can we do to help increase our chances for success? To give ourselves a better chance at achieving goals, we should break our goals into smaller steps with rewards for accomplishments and most importantly don’t give up when we fail once.  It is not a race; take several small steps that will get you to where you want to go.  There is a known acronym for helping to set goals – make them S.M.A.R.T. (Specific, Measurable, Attainable, Realistic and Time centered).

Lastly, find an accountability partner and help each other out, chances for success increase by 50% when we partner up for accountability.  Consider any “setbacks” as minor and avoid the “all or none” mentality.  Achieve what you can and don’t give up on everything over a few failures; after all there are 52 “Mondays” and 11 other “1^st of the month’s” in a year to help us with another fresh start on our goal setting.

Home Sweet Home?  How to Determine How Well a Property has been Maintained.

Once you've found the perfect home, you'll want to try to assess how well the property has been maintained over time, carefully review all property disclosure documents and do a more thorough examination of the property for any hidden surprises. Hiring a home inspector who has extensive credentials is generally considered a wise move.

A home inspection should include a thorough review of:

• Structural elements: construction of walls, ceilings, floors, roof, foundations
• Exterior evaluation: elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors, windows, lights, and exterior receptacles
• Roof/Attic: framing, ventilation, type of roof construction, flashing, and gutters
• Plumbing: identify pipe materials for potable, drain, waste and vent pipes as well as condition of toilets, showers, sinks, faucets, and traps
• Systems and components: water heaters, furnaces, air conditioning, duct work, chimney, fireplace and sprinklers
• Electrical: main panel, circuit breakers, types of wiring, grounding, exhaust fans, receptacles, ceiling fans and light fixtures
• Appliances: dishwasher, range/oven, built-in microwaves, garbage disposal and smoke detectors
• Garage: slab, wall, ceiling, vents, entry, firewall, garage door, openers, lights receptacles, exterior, windows and roof

You'll also want to know what isn't included in the home inspection. Some areas frequently not included in the inspection, or included only at a cursory level are:

• Asbestos
• Radon, methane, radiation, formaldehyde
• Wood-destroying organisms
• Mold, mildew, fungi
• Rodent presence
• Lead

Many home buyers have found talking to prospective neighbors quite enlightening. Not only can you learn more about the neighborhood and get a feel for who may be your future neighbors, but sometimes these interactions can provide valuable information including why the house is on the market, prior issues with the house (flooding/leaks, repeated pest infestations, illegal drug use/production) as well as general information about the neighborhood such as whether there are problems with vandalism and theft, high homeownership turnover, high level of rental properties, or local issues that may impact your interest (plans for a new road or shopping center, etc.).

Another frequently overlooked source of information may be your insurance company. For instance, if you are looking in an area that is prone to earthquakes or flooding, they should be able to tell you if the specific area has a higher than average level of claims which may impact your insurance premium and whether special insurance riders would be required for coverage. They may also be able to tell you if your premiums would be impacted by a higher incidence of claims due to theft and vandalism. These are key things to help determine how well a property has been maintained.

Cooler Weather Brings Rodents and Pests Inside

When it gets winter comes and it gets colder outside us humans tend to want to say inside, so it stands to reason that cooler weather also brings rodents and other pests inside too.  This time of year, pests start to look for a place to nest and typically move indoors where it is warmer and there is protection from the elements and predators. Specifically, rodents tend to be more of a nuisance this time of the year and they start to become more obvious in homes and commercial buildings.

Rodents can pass through openings as small as a quarter and often damage property on either the roof or the ground by gnawing on the material. Rats actually like to share nearby spaces with people, which can possibly be harmful when in homes and commercial businesses because of the potential for food contamination not to mention the spread of communicable diseases.

Rodent elimination can be performed by a licensed pest management company in order to keep them from continually coming to cohabitate with humans in their homes. They can be hard to control on your own so it is important to seek out the knowledge of a trained professional to make sure certain methods are executed before rodent infestation gets out of control.  They are part of nature, they cannot be eliminated but they can be controlled when treated as required.

It you have a rodent problem, you don't just want them caught, you want them gone. The openings that rodents and pests seek out are hard to see with the untrained eye, but there are many licensed companies out there that offer elimination services.  When looking for a service, find one that has a full elimination program.  At a minimum the service should include:  identifying the type of rodent, locating any damage they may have already caused, they should look for and find conditions in the home that are potential attractions to rodents, seal and close off any entry and exit points and install appropriate rodent traps.  The service should also include a return visit to remove, reset and or replace any traps and should come with some sort of warranty on the work.  If you have small children in the home, talk with them about any potential hazards.  Many companies offer non-toxic options.

Since it’s that time of year and cooler weather brings rodents and pests inside, it’s a good time to call a professional and have a quick inspection of your exterior and attic spaces.

In Home Emergency Planning

It is always a good idea to establish a home emergency plan and supply kit, we should also take time to review it occasionally with the family so everyone is aware it is there and what it is for.  Some emergency situations in our area that can occur are tornados, floods, even winter type storms.  We don’t like to think it but there can also be terrorist emergencies and with recent happenings even earthquake emergency planning.  It has never been proven that it wasn’t a good thing to be prepared.  Below are some tips on being prepared for in home emergency situations:

Emergency supply kits should be kept in an easily accessible location and contain:

• Water
• Non-perishable food
• Pet food
• Blankets
• First Aid kit
• Candles and matches/lighter
• Battery-operated radio
• Flashlights
• Important phone numbers - relatives, utilities
• Fuel for any back-up heat sources
• Supplies for existing medical conditions
• For homes with infants, an adequate supply of diapers and infant related items

Emergency plans, outside of the kit, should include:

• Designated out-of-area contact as a centralized point person - often in emergencies it is easier to reach an out-of-area contact than a local one to relay information about impacted family members
• Back-up meeting place
• Back-up child care and pet care arrangements
• Accommodations for any special needs (non-ambulatory or disabled family members, family members using oxygen tanks, etc.)

This article has been focused on home emergency planning, but there are other areas we should consider and be prepared for emergencies and keep survival kits such as your car because we are often in our vehicles as much as we are at home, especially during the holidays when we tend to take road trips.  Under these circumstances you will need to gain immediate access to emergency supplies should an emergency situation arise.  We should also not put out of mind that situation may arise at school or even the office. To help with your planning there are some great resources on line to help you not only with Home Emergency Planning but care, school and office emergency planning as well.

Preparing for Winter – Outside Your Home

As winter gets closer, there are things that you should begin to consider for both the inside and outside of your home to not only protect it but also to maintain your safety, and give you comfort through the colder winter months. Here are a few tips to help you prepare outside your home.

Start with a walk around your home with and keep an eye out for cracks in the foundation or bricks, and caulking or weather stripping that has begun to weaken. Some other things you may want to look for are: evidence of  rodents or birds living or nesting in unsafe or unwanted locations, exposed wood that might a fresh  protective treatment applied, and items that are too close to heat sources that could become fire hazards. In addition to this, here is a list of other important items to consider:

• Hoses/hose bibs – in Texas we don’t get freezes to often but it is still important to disconnect and drain your hoses and either wrap the hose bibs or cover them with insulating covers to prevent freezing of the pipes. Also check for other unprotected pipes that may need insulating this will prevent the nuisance of dealing with broken pipes later.
   
• Sprinkler systems – in Texas we typically do not have to drain our sprinkler systems to protect them, however it is a good idea to make sure the automatic timers are turned off to prevent water from an unplanned interval to freeze and damage expensive landscaping.
   
•  Roof – we get enough wind and hail in our area to make it necessary to inspect your roof for loose, missing, worn or damaged shingles, tiles or other roofing material and have any needed repairs made to prevent water damage from the winter rain and snow.
   
• Gutters - after leaves and other debris has fallen and collected in your gutters from the fall, it is important to clean the gutters and downspouts to prevent water from backing up and causing water damage to the fascia board around your home.
   
• Fertilize – don’t neglect your lawn it doesn’t die it just hibernates.  Applying winter fertilizer to your lawns will stimulate stronger roots and help produce a healthier lawn in the spring.
   
• Plants - look at your landscaping and determine which plants, if any, that may be sensitive to cooler weather and need to be protected. Some plants may just need to be trimmed, while others could require additional composting materials around their roots to protect them from freezing temperatures, and others may need to be place in sheltered environment. This is also a good time to remove bulbs that won't survive the colder temperatures like dahlias and go ahead and plant your spring bulbs like tulips and daffodils.

You'll find that staging tips can also be useful in organizing your home as well.  There are lots of good tips on online for preparing your landscaping for winter as well.  Hope these tips prove helpful to you in preparing for winter on the outside of your home.

The Texas Drought - It's not Over!

I guess it shouldn’t be a surprise that after a record setting heat wave and months with no rain in the Dallas Area, local cities like Frisco, Prosper, Allen and McKinney were required to move to Stage 3 Drought Restrictions as of November 1^st .  However, it’s more serious than most of us think.  On September 28^th, 2011 the North Texas Municipal Water District (NTMWD) issued a press release with the details.  These cities mainly depend on water from Lake Lavon, Lake Texoma and Lake Cooper.  In addition to the heat wave and lack of rain, NTMWD still cannot pump water from Lake Texoma due to the presence of aggressive zebra mussels . Lake Texoma normally provides almost a quarter of NTMWD’s raw water supply this inability is causing extra dependence on Lake Lavon., and under worst case scenarios, the NTMWD reports Lavon Lake could be dry by fall 2012. 

Which brings up back to the necessity of Stage 3 Restrictions, experts say there is really no reason to water your landscapes in the fall and winter.  Our most common grasses, St. Augustine and Bermuda go dormant in the fall and winter, allowing us the opportunity to do what we can to conserve on our water usage and protect our water supply. 

Check with your cities Stage 3 Drought Restriction policy, but for the most part it means watering only once every 2 weeks, using a hand held hose to water your trees for a limited amount of time per day and using soaker hoses for a limited amount of time per day to water your foundations.  Helpful resources to stay up to date on the drought conditions, along with  tips on water conservation can be found at these sites www.wateriq.org , www.ntmwd.com and http://www.lcra.org/water/drought/index.html .

Beef Up Your Home Security

Crime prevention is defined as the anticipation, recognition and assessment of crime risk and the initiation of some sort of action to remove or reduce it. You can have a significant effect upon the security of your residence by taking a few moments to assess its weaknesses and a few more moments to take simple actions (many of which cost nothing but your time or a bit of physical energy) to remove or strengthen the weaknesses.

General Good Practice

Experience has proven three basic concepts repeatedly.

1. Just the appearance that a resident is present and is looking after the property is, in itself, a warning to most potential criminals.

2. The actual security equipment is totally useless unless it is actually used and used correctly.

3. The element in any security system that is most likely to fail is the human one.

4. Keep your home neat and clean, in good repair and looking like it is being occupied is an important step toward thwarting crime. Be a good neighbor and get to know your neighbors. Call the police when you notice something that seems suspicious.

Assessing your home’s susceptibility is critical when trying to “think like a thief”! Consider how a criminal might see your home and remove as many of the opportunities or weak points as you can and always keep valuables in a different and secure location.

www.tourfactory.com This home is located in Little Elm, TX. Contact Robyn Heathcock for more information. IRG Real Estate 972-837-0651 Beautiful Stone and Brick elevation on nearly 1/3 acre corner lot! Enter to hand scraped hardwood floors throughout 1st story. Open kitchen with breakfast bar, island and stainless steel appliances. 8x6 tiled bonus room off kitchen, great for crafts or pets! Hardwoods continue into Master and Study both located downstairs. Upstairs 2 bedrooms with jack and jill bath plus guest room with separate bath. Large gameroom wired for sound and built in study center. Quiet location with wide open views, property is directly facing core of engineers land, feels like country!

Give Your Foundation a Little TLC

I went outside the other evening and was noticing some sun scorched spots in my yard. It looked like the sprinklers, that I run 3 times a week were not reaching those areas – so I got the water hose to wet them down and noticed a gap between my foundation and the soil that is supposed to butt up next to the foundation. As soon as I saw it I realized my three times a week watering schedule, which has been adequate for many years is no longer enough, at least for my foundation. I couldn’t help but wonder how many out there haven’t noticed the condition of the soil around their foundations like me. Since it has been “record breaking” hot and dry this summer I thought an article to help protect your foundation would really benefit you. This article was written by a colleague of mine, who definitely knows more about foundations than me. Enjoy!

Foundation alert -- the drought is affecting home foundations!
Source: Yellow Hat Inspections

The July 27th issue of The Star-Telegram reports that an “...unusually hot summer, even by North Texas standards, is draining the area's water supplies faster than normal, prompting the likely implementation of stringent water restrictions across much of the region within weeks.” The paper goes on to say that “the Tarrant Regional Water District's supply has dropped to about 80 percent of capacity, according to spokesman Chad Lorance last Wednesday. Under the district's drought plan, when the water supply drops to 75 percent of capacity, communities must enforce the first stage of mandatory restrictions, which call for customers to water landscapes only twice a week.”

Most people think water restrictions are the worst thing that can happen during a drought. However, the risk of foundation settlement is a far greater threat to a home owner or buyer than losing a few plants due to lack of water. A foundation affected by drought condition could cost you thousands and is far more difficult to fix than replacing a few plants in the yard. According to Bloomberg this is the worst drought in North Texas for 44 years and it is affecting many homes. As I write, your house (or the house you are about to buy) may be affected already. It is vital that you take action now if you own a property or, if you are buying, ask your home inspector to identify the costly conditions.

Soils in North Texas contain highly active clays which exhibit a high degree of expansion when wet and shrinkage when dry. (When its dry all houses in the DFW area go down, when it is wet they all rise.) This situation can result in severe vertical and/or lateral displacement of supported structures. Repeated variations in soil moisture content cause differential movement and undue stress to structural elements of a building, resulting in broken and unlevel floors, masonry cracks and misalignment of doors and windows. Consistent soil moisture content is the key to controlling these problems. In this blog I will first tell you how to determine whether a property has the symptoms of foundation settlement before cracks in the walls, ceilings, and floors appear.

Whenever soil cracking occurs or you notice that soil is pulling away from the foundation, it is a signal that soil moisture levels are too low. Look carefully at the following two photographs of a house I inspected recently. The property is pier and beam and the first photo shows that the grade has pulled nearly an inch away from the foundation.

The second picture shows a steel rule lowered into the gap that has opened up and you can see it goes down close to 10 inches. This means that a large portion of the grade beam is not supported!

These photographs illustrate the problem in detail. Now you can go and make your own observations around your own property or the property you are considering buying. If you follow my instructions you will be able to expertly identify if the house has a potential problem.

Start on the south facing side of the property and look to see if there is a gap between the foundation and the grade. Look carefully at the area along the grade walls. Do you see a gap? If so, can you get your fingers into the gap?

The sketch above illustrates how to make a positive identification of the grade pulling away from the foundation. (This simple test is the same for slab or pier and beam.)

If the property has this condition, go into the house and look at the doors, floors, walls and ceilings. Do you see cracks in the sheet rock? Are any of the doors sticking? Are there cracks in the floor tiles or are the floor boards moving apart? If you have a gap between the grade and the foundation you have a potential problem. If you have cracks, too then you definitely have a problem!

www.tourfactory.com This home is located in Little Elm, TX. Contact Robyn Heathcock for more information. IRG Real Estate 972-837-0651 Walk Unknown Objectto Lake!! Absolutely stunning custom built home on more than a quarter of an acre. This 3 bedroom 2 bath home with study makes you feel at home the minute you drive up with its beautiful landscaping to it well appointed custom features inside including wood floors, custom cabinetry and 2.5 car garage with builtins. Plenty of room to add RV or boat pad. Home has view of the lake and neighborhood is walking distance to dock and schools.

Help Your Garden Beat the Heat

The temperatures have been soaring in the Frisco and Prosper area. For many Texas home owners the landscape that surrounds your home could likely be one of the biggest investments made to improve its curb appeal, especially if done by a professional. There is a lot you can do to protect that investment from the scorching sun and sky-high temperatures that we have been experiencing.

First, make sure to choose plants that work best in the Texas climate. Most local nurseries stock plants that are work well in our climate, but you can also refer to a climate zone map to find out which trees, flowers and shrubs work best and to seek out more variety. A climate zone map divides the country into several zones, linking areas with similar climates generally the Little Elm, Frisco, Prosper, McKinney area is located within zones 7 and 8. This way you can be sure to choose only those varieties that grow best in your area and remember to take into consideration the sun and shade exposure of your property.

While some plants have a natural ability to tolerate the heat, even mature landscapes with hardy plants can suffer without proper care and maintenance. Watching for warning signs, like wilting, dull or curling leaves or flowers and shriveling buds, can save a plant from surrendering to the elements.

If you notice plants beginning to wilt regularly in hot weather, create shade in your garden by planting trees or shrubs or by adding yard ornaments that offer coverage. Also, add organic material such as compost, manure or grass clippings to soil, especially in dry shade areas, to help retain moisture. Water plants thoroughly in the morning hours to reduce evaporation and since plants under stress use fertilizer less frequently, limit the amount of fertilizer, I like the slow-release granular type.

PROPERTY DETAILS

What can I get Robyn for her birthday, you say?
How about a contract on one of the great listings!

	506 Bluebonnet Dr, Allen - $139,900
	1945 Marble Falls Dr, Little Elm - $150,000
	818 Bowie Drive, Lavon - $139,900
	6962 Thistlewood, Frisco - $425,000
	1217 Shell Beach, Little Elm - $180,000 (short sale)

Staging: Does it really help? Interior Clutter Part 1

The answer is a resounding YES! Just ask the buyers I showed last weekend. We had a good laugh together after viewing several homes that were cluttered and even had untidy bedrooms. This same buyer is also my seller and they jokingly let me know that they did not realize the beds did not have to be made for showings! It definitely gave the homes a more “lived in” feeling, but unfortunately gave my buyer a “this is not the home for us” feeling as well. Hopefully your agent has worked hard to give you home great web appeal like using virtual tours and posting it viral out on the world wide web. Equally as important as that is the presentation your home makes when buyers walk through your house. Your real estate agent can help but here are a few staging tips from my website, remember you only get one chance to make a good first impression.

Removing Clutter
Removing clutter is hard because we like our stuff, after all we put those items there for a reason. After several years of living in the same house, most of the time we don't even see the clutter, so let take a look at your home from a buyers point of view and let your agent help you see the clutter that has collected on shelves, counter tops, drawers, closets, garages, attics, and basements and try not to be defensive about it.

Kitchen Clutter
The best place to start is your kitchen, first, get everything off the counters, even the toaster. Find a place where you can store the appliances and daily used items in cabinets and drawers. Then, just for the time your home is on the market make a habit of getting them out and putting them away as you use them. This may mean you need to pack a few things out of your cabinets that you don't use very often to make room. Buyers will open your cabinets and drawers, especially in the kitchen. They need to know if things will fit, if your cabinets are full and crowded then it tell them their things won't fit either. You want it to look like there is plenty of storage space and the best way to do that it to pack it up as much as possible. Go through every cabinet, drawer especially your pantry, put up items rarely used to create open space. Don't forget under the sink, this is also very important.

Closet Clutter
Closets are famous for collecting clutter, sometimes we don't see it but those extra clothes and shoes stack up and you rarely wear them. Put these items in a box and pack them away, because they can make your closets look crammed full.

Furniture Clutter
Furniture can be clutter too, sometimes we have too much furniture in a room, you may use the furniture but it can give a buyer the impression that there is not enough room in the space for their own furniture. Your agent can also help you with deciding what should stay and what should go.

Storage Area Clutter
The biggest areas collection clutter are often garages, attics, and sheds. They are also good for collecting junk. These areas need to be as empty as possible so that buyers can see all the space they have available for their "junk", you should remove anything that is not needed regularly and take it to a storage facility with the rest of your "clutter." Better yet, have a garage sale.

www.tourfactory.com This home is located in Frisco, TX. Contact Robyn Heathcock for more information. IRG Real Estate 972-837-0651 Beautiful former

Sotherby model! Upgrades throughout include scraped hardwood floors, beamed ceilings in kitchen and master, gameroom with wetbar-kitchenette, media room with granite counter top bar seating, loft study, hardwoods up stair well, bead board paneling is several rooms, grade 5 carpeting. Tiered patio with stone lined pool and grassy side yard - community boasts pool, trails and parks. Call today for your private viewing!

www.tourfactory.com This home is located in Little Elm, TX. Contact Robyn Heathcock for more information. IRG Real Estate 972-837-0651 Beautifully

Updated! To much to name - laminate through out all living dining kitchen and bedrooms. Tile in bathrooms, granite counter tops in kitchen and guest bath, builtins, stand up shower with body jets in master bath. Great stained wood deck in backyard over looks a lushly landscaped backyard. You will loving living here!

BuildFax Report - What is it and how can it delay a closing?

Any committed real estate professional should be always listening and learning. Especially in today’s market, while we are not mortgage or insurance professionals we should stay informed and updated on issues that are going on in these industries because they often “crossover” into our area of expertise. The knowledge of other industry related issues can then be added to our knowledge base allowing us to be better fiduciaries to our clients. I recently learned of a partnership relationship in the casualty insurance industry that will allow me to do just that going forward with my clients and I wanted to share it with my colleagues.

We have all heard of Equifax, well they have now partnered with a company most of us real estate professionals did not know existed called BuildFax. BuildFax is a company that has permit information on 60% of all commercial and residential properties and they provide this information to casualty insurance providers aka homeowner’s insurance. This is a good thing for home buyers because if utilized it forces disclosure on whether or not the proper permits were obtained on property improvements on a property the buyer has a purchase contract on. Much like the insurance report most of us are familiar with called the CLUE report which discloses insurance claims filed and paid on homes. How this can hurt us in a buyer client relationship and where our fiduciary responsibility comes in is the fact that most home buyers wait until a few days before closing to obtain their insurance quotes and make a decision on their casualty insurance, at that time the insurance company will pull the BuildFax report and if there are permits on known home improvements all is good to go, however, if there are known home improvements which would have required permits but permits were not obtained, it would allow the homeowner’s insurance company to place a condition on the closing that would require a “retro permit” to be obtained before the buyer and seller can close on the property. Obviously this could delay closing for an unknown amount of time and potentially place an additional cost on the home seller that they are not prepared for.

As a real estate professional with knowledge of this potential set back we should now “move up” on our buyer file checklists advising our buyers to make their home owner’s insurance choices early in the process. Not to mention it requires us pay a little more attention to how we watch the sellers’ disclosures for property improvements. Whether for our buyers or our sellers, it could give us the “heads up” on making sure any permit issues are taken care of before a home goes under contract.

If the Price is Right

In today’s real estate market price is everything, it is important to hire an experienced real estate professional who is seasoned enough to not only intelligently help you determine what your home is worth but also brave enough to be straight forward and honest with you about the value of your home. Let’s face it most of you, before you call an agent probably have a pretty good idea of what you think your home might be worth and being the savvy home seller you are, you may call a few agents that you either got advertisements from or perhaps you got a referral from a friend. Each of the agents you speak with prepares a "Competitive Market Analysis" that suggests a specific sales price. In reviewing them you may be surprised at some of them because possibly one of them may be lower than you expected. Even though they back up their suggested price with recent sales data of similar homes, you remain convinced your house is worth more, so you choose the agent with the price that is closer to what you think your home is worth. Most people are inclined to pick the one that gives them the highest estimated sales price. After all, it seems like they care about putting the most money in your pocket. They are willing to start out at your price and use the philosophy that you can drop the price later, this seems to make sense right? The truth is that, most likely, they are quite doubtful that your home will actually sell at that price and the intention from the beginning is to eventually talk you into lowering the price. This way they get the listing first, then worry about price later.

This can be a deadly mistake; you see the truth is, if you start out too high on your home, you've probably succeeded in adding to your stress level . . . not good. There are a lot of things behind the scenes that take place while trying to sell your home; you don't want to add any more to it that you have to. The listing agent isn't typically the one to sell your home to a buyer. They primarily market and promote your home to all the local agents who have buyers. These agents also do market comparables for their buyers and as it turns out if you've overpriced your home, fewer agents will bring their buyers to view it. It is an agent’s job to know the local market and home values. If your house is priced high above market, they won't want to waste their time. Their time is better spent showing homes that are priced realistically. When you decide to drop your price later, your house is "old news" and you can't recapture that flurry of initial activity you would have had with a realistic price, causing your house to take longer to sell and potentially for a much lower price than if priced correctly in the first place.

So let's say you do get a buyer to make and offer and contract on your house. They will need a mortgage, and the lender requires an appraisal. If comparable sales over the last six months to a year don't support the contracted price, the house won’t appraise and your deal falls apart. You can always attempt to renegotiate the price, but only if the buyer is willing too as well, if they don’t, your house will likely end up back on the market. This presents another stigma because once a home has been off the market and put back on again, it is harder to get a good offer. It causes potential buyers to think you could be getting desperate, so they make lower offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received. In today’s market there are other obstacles that cause a home to stay on the market longer, such as, the price point your neighborhood is in, and the fact that lenders are being more cautious, so pricing it right from the beginning is more critical than ever. Find an agent that you feel is experienced and uses more than just a standard market analysis in helping you determine your home’s value. Thinking of selling? Feel free to visit my seller’s page and fill out a market analysis form, we will be glad to review your pricing and selling options.

Homeowner's Associations, Help or Hurt?

The majority of neighborhoods in areas of Collin County, such as Frisco, Plano, Prosper, McKinney and Little Elm are individually governed by homeowners’ associations (HOA’s). Originally designed to protect homeowner’s HOA’s now seem to hurt them. Some Frisco neighborhood residents are complaining that HOA’s are getting out of control. So much so that state leaders are saying they are regularly hearing stories of unrestrained HOA’s, not only in our local areas of Little Elm and Plano, but state wide and it has gotten their attention. So much so that homeowners' associations were the target of some of the lawmakers in the latest Texas State legislative session. In this most recent session, Texas State representatives filed multiple bills that would limit the HOA's authority, including a measure that restricts their right to foreclose on homes. Currently in Texas, an HOA can foreclose on a home owner when the home owner becomes delinquent with their association dues; this is because Texas is currently a non-judicial state when it comes to foreclosures. Over the years we have heard stories of HOA’s purposefully aiming their foreclosure rights on homes that are free of mortgages in order to turn around and sell them for a nice profit. One of the stories that made national headlines a few years back was of and HOA foreclosing on a military family while the husband was serving in Iraq, because his wife got behind on the dues.

Relief has finally come for home owner’s in Texas’ last Legislative session, several of the bills that were proposed have been passed and HOA’s will now find their power’s regarding foreclosure for failure to pay their association dues more limited. In fact Texas passed 18 HOA reform bills; this is a huge win for home owners and very timely considering the Texas Legislature only meets every 2 years. One of the bills that passed will now require an HOA to obtain a court order to foreclose on homes. However, it will take some time for these to be amended into the Texas property code and any “tweaking” that needs to be done will not be able to be addressed until the next session in 2013. Until the property code is amended if you have any questions or curiosity about what changes were approved you can visit Texas Legislature Online and browse through them.

Frisco Gets a New Zip Code

A few weeks ago, I shared with you about Frisco and the excitement that comes with its growth. I was fortunate to be a part of Frisco when we were a one zip code town (75034 was the original zip code). I remember like it was yesterday when they announced that it Frisco was getting a new zip code and Preston Road was the boundary, west side remained 75034 and east side go the new 75035 zip code. It’s happening again, starting July 1st, Frisco is getting yet another zip code, it will be 75033. The boundary for this new zip code is everything north of Main Street, west of Preston Road, east of FM423 and south of U.S. Highway 380. For those of us with addresses on Main Street (which is the boundary of the new zip code, need to realize that those on the south side of Main Street stay 75034 and the north side takes the new code. Another way to keep it straight is, the odd numbered addresses on Main Street, in that area, will keep the existing zip code 75034, but all the even numbered addresses on Main Street will use the new 75033 zip Code. Frisco addresses on FM423 between Main Street and Eldorado Parkway will also use ZIP Code 75033.

The necessity for the change stems from the recent 2010 US Census. It confirms Frisco was the fastest growing city in America from the years 2000 to 2009. They are predicting more growth with in the current 75034 boundary to the point that they will run out of the “Plus 4” digits, therefore the new zip code is needed.

As are resident of Frisco, the neighborhoods affected by the change are: Meadow Hill Estates, Preston Highland, Preston Highland North, Frisco Original Donation, Newman Village, Cobb Hill, Grayhawk, Eldorado Fairways, Country Club Ridge at the Trails, The Knolls of Frisco, The Traditions of Frisco, Northridge Estates, Christie Ranch, Griffin Parc, The Fairways at the Trails, The Trails of West Frisco, Shaddock Creek Estates, Kings Garden, Meadow Creek, Heather Ridge Estates.

If your address is included in the change the United States Postal Service (USPS) will likely notify you via mail. As with the previous change, there will be a one year “grace period” to allow you to use up your current supplies of address labels, stationery etc., but going forward remember to print the new zip code on any new orders.

You can always contact the Main Post Office in Frisco at 972-335-7453 if you have additional questions.

National Open House Weekend
This weekend, June 4th and 5th, are the days that the 2011 Nationwide Open House event will be held. This event is sponsored by the National Association of Realtors (NAR). It is one weekend a year set aside when sellers across the country are encouraged to hold open houses in their area. It has been advertised by NAR and the local realtor associations via traditional media as well as social media, the goal is to attract buyers’ interest to homes for sale in the area.
The Nationwide Open House Weekend offers buyers a stress-free way to visit homes for sale in different neighborhoods where they might want to live. For sellers, the weekend provides a high-visibility effort to promote traffic and drive home sales. The agent are encouraged to advertise the open house in the local MLS and mark the homes that are being held open with the blue “open house” balloons they can pick up at their local associations.
If you are interested in a tour of these homes in Frisco, Prosper, Plano, Little Elm, McKinney or Allen contact me and I will be glad to print you a map of homes that will be open in the area you are interested in.

Buying a Home - Still a Good Investment
Buying a home is still a good investment. By in large and in our area, homes appreciate about three percent a year. Some years more, some less. It can even vary from neighborhood to neighborhood. Two percent may not seem like that much at first.
But take a second look…
Presumably, if you bought a $250,000 house, and you didn't pay all cash for the it, then you got a mortgage. Let's say you put 20%down – that would be an investment of $50,000.
At an appreciation of 3% a year, a $250,000 home would increase in value $7,500 during the first year. That means you earned $7,500 with an investment of $50,000. Your annual "return on investment" would be over 6%.
You can also consider the fact that if for some reason we don't get the appreciation that is typical, there is always inflation, that averages about 2.5% each year so either way the "return on investment is there.
Realize, you are making mortgage payments and paying property taxes, and some other miscellaneous costs. Remember, the interest on your mortgage and your property taxes are also both tax deductible, therefore the government is effectively subsidizing your home purchase.
All this considered, this means your rate of return when buying a home is higher than many other investments you could make right now.

Gas Prices and Real Estate Choices!

We are all bummed about the high gas prices right now. I know personally my car went from $45 a tank to $63 overnight it seems. Strangely enough, I read an article today about gas prices today and got a little tickled by the end of it because I realized that this article about rising gas prices, somehow found a way to include four of the hottest national topics and attribute them to the cause. You may be able to guess what they were but I was amused the topics: the unemployment rate, oil prices, terrorist activity and believe it or not, the housing market! I just thought it was interesting because it seems, to me anyway, that only two of those topics relate to rising gas prices - oil prices and terrorism - the later of which I am not 100% convinced about, but really, the housing market? I know I have some clients that want to live closer to where they work, but I am not seeing it as the majority. I also realize we have to take into account that this type of news is national, and we are in a more stable area than most, so I am just not seeing how its related, at least in the Dallas metro area but who am I, the fact is I am a real estate expert, not an oil and gas expert, so I guess I’ll just stick to real estate. Maybe one of you are more of an expert in oil and gas, feel free to comment and educate me, I’m thinking it’s more a of political issue, and I know better than to go there . I want any of you to feel free to leave your thoughts below and in the meantime here’s a handy little website that you can use to find the lowest gas prices nearest to you http://www.dallasgasprices.com/ - they also have an app you can add to your smartphone for when you’re on the road!

If you are facing foreclosure and are in need of immediate help, please contact us now! info@letushelp.net

Know your options - Fight Foreclosure!!   Get a free eBook on stopping foreclosure at www.letushelp.net

What is a short sale?

A short sale is a sales transaction in which the seller mortgage lender agrees to accept a payoff of less than the balance due on the loan. Many times this is due to the current market value of the home being much less that the seller's payoff. You have choices, there are several programs available to help stop foreclosure.

For Sellers
This can be a great alternative to foreclosure for sellers. The impact on your credit file can be greatly minimized through a short sale allowing the seller to recover quicker and give the ability for the seller to purchase a home again in the future sooner than with a foreclosure.

As in a traditional sale the parties involved are the seller and the buyer, however, with a short sale the bank and a loan servicer (in some cases) are included in the process.

To determine your short sale eligibility:

1. Let your agent determine what the market value of your home is.

2. Gather the financial information around your property and the cost of selling it:

Estimated Amount to Pay off Loan
Estimate of Title Closing Fees (your agent can help with this)
Real Estate Fees

3. Add those items up and subtract them from the market value of your home. If the number is negative that is how much you would have to pay to clear the loan upon sale. If that is not a possibility then you need to talk with your agent about a short sale.

Highlight of the short sale process:

Step 1 in the process is to get your home listed as soon as possible, the banks like to see your home marketed at a price that will clear your loan for at least 60 days before they will consider a short sale.

Step 2 the price is reduced to the actual market value in order to obtain an offer as quickly as possible, which starts the short sale approval process with the bank.

Step 3 your agent works directly with your bank to make sure they have everything they need to make a decision on the sale as quickly as possible.

Step 4 the bank will typically order a BPO or an appraisal to confirm the value of the property in its current conditions. This is what is used as a basis for them to determine what they will take for the property.

Step 5 any conditions or barriers that come up as a result of this appraisal are either met or negotiated and resolved between all parties

Step 6 once the bank approves the sale the contract continues through the title and closing process just as it would if it were a traditional sale.

Step 7 final documents are sent to the bank for closing approval, if everything is in order the way they previously approved it the sale closes.

There is not a set timeline for this process since banks and servicers have different ways of handling this process, therefore it can take anywhere from 2 months to more than 9 months to complete. When you work with an experienced short sale agent, they are trained to facilitate the process and it makes a world of difference in how quickly it is completed.

The Buyer
Short sales are a great option for buyers that are looking for a "good deal" more so than in a foreclosure situation. The foreclosure process has gotten so expensive and involved for the banks that they are often listing the properties that they take back for very close to market value so they can recoup as much of the cost as possible. With a short sale the banks are aware that there can be a significant savings if the costs if foreclosure is never started.

In short sales the banks are prepared to take a certain percentage lower than the appraised value in order to close the deal and forego the foreclosure process. It is important that the buyer work with an experienced real estate agent to ensure the value of the property is no inflated.

For Investors
Many investors use short sales to take advantage of what is being said to be the best upcoming investment real estate market we have experienced in decades.

Pre-foreclosures (short sales) are the best investment opportunity out there. It is much easier to work through and experienced real estate agent than through a lawyer like you would have to on a foreclosed property. Another advantage is that you have more time to do the research on a property, do inspections and the home is often occupied therefore typically in better condition.

New Power Saver Program

New Power Saver Program = Energy Efficient Renovations

Have you heard of the Power Saver loan program? It is a new loan program implemented by HUD to offer low cost loans for homeowners to make energy efficient improvements to their home. Under this program credit worthy homeowners can borrow up to $25,000 to make energy efficient improvements to their homes. The program is backed by the FHA (Federal Housing Administration).

The program was designed with a twofold purpose;

1. Offer low cost loan opportunities for homeowners that want to borrow money for energy efficient improvements knowing they will realize a savings over time.

2. Provide job opportunities in the fields of home retrofitting, such as installers and contractors.

Of course there is also the “green” benefit of energy savings. HUD opened the opportunity up to a limited number of lenders and has a list of these approved lenders on their website. To find out more information on this program you can visit the article directly on their site here.

Property Tax Appraisal Disputes

The dead line to dispute your tax appraisal is drawing near . . .

You have probably gotten your 2011 tax bill from your county’s appraisal district by now, if you haven’t you may want to give them a call. Take a close look at it you may see that it stayed the same as the prior year and you may even notice a slight increase. Most of us don’t like to see the increases because it means a higher amount due, it may even take you by surprise because on most of the media venues we hear so much negativity about the market being down. It is important to know that these venues often report on a broad scale due to their audience coverage areas. If you think your tax appraisal is higher than it should be it is best to contact a local real estate professional and get some input on the market in your area.

In Texas you have the right to dispute your tax appraisal if you think it is high, this however, should not be based solely on your opinion, you will need to have facts to support it. The appraisal review board for your county will have specific requirements for this dispute. In Collin and Denton counties they begin with a form, located on their websites that you must fill out, attach the supporting information and mail to them. They will then review the information and in some cases grant or deny the dispute based on what you sent in. If it is denied you can ask for a hearing and go before the board to further explain your cause.

It is important to get accurate data to support your claim we can help you get that data together and explain the market in your neighborhood and consult with you to see if it would benefit you to dispute your tax appraisal. Feel free to give us a call or we have a form on our website to help get the process started.

Robyn Heathcock
IRG Real Estate, LLC.
www.IRGrealestate.com
972-837-0651

PROPERTY DETAILS

PROPERTY DETAILS