Vote YES for Property Tax Appraisal Reform Nov 3rd!

There will be a statewide election on November 3, 2009 to pass much needed appraisal reform into law. The Texas Association of REALTORS along with others have been fighting hard to help homeowners by seeking reform to reign in various unfair property tax appraisal methods.

The following propositions are on the ballot:

Proposition 2 - Ensures that a residential property is appraised as a residential property, not a hypothetical value based on "highest and best use".

Proposition 3 - Allows the state to have oversight of central appraisal districts and enforce uniform appraisals standards across the state.

Proposition 5 - Allows two or more adjoining appraisal districts to have a combined appraisal review board to ensure qualified and knowledgeable board members.

All propositions on the November 3 Ballot require a majority vote to amend the Texas Constitution.

Remember, VOTE YES! 2 + 3 = 5

October 19, 2009 - First Day of Early Voting

October 30, 2009 - Last Day of Early Voting

November 3, 2009 - Election Day

For more information about real estate trends in the Dallas/Fort Worth area visit http://www.bwhometeam.com/ .

The Case For Purchasing Real Estate Assets in the DFW Market NOW As A Hedge Against Inevitable Inflation

As I speak with my agents I am told the same story time and time again regarding clients who are still on the fence about purchasing a home in the DFW area. They are either waiting for the real estate market to drop further in order to get a better deal or they are just indecisive and haven’t come across that “dream home” yet. Each time I am told one of these stories I am concerned and the concern isn’t necessarily directed where you might think. Yes, I am concerned for my agents and want them to continue to make a living, but my biggest and most grave concern is for the people in our market that have some desire to buy, but keep waiting. Why is this so? The reason is twofold.

First, according to the Case-Shiller home price index, the Dallas/Fort Worth real estate market IS recovering. The latest released housing market snapshot released in September 2009 shows that home prices in DFW were up from June 2009 to July 2009, marking the fifth consecutive month of increases in our market. The July figure is also the highest point in the home price index since September 2008, right before the first big government bailout. The Case-Shiller data backs up other numerous reports that home price declines bottomed out in North Texas in early 2009.

"The rate of annual decline in home price values continues to decelerate, and we now seem to be witnessing some sustained monthly increases across many markets," Standard & Poor's David Blitzer said in the report. "These figures continue to support an indication of stabilization in national real estate values."

These figures point to the fact that the longer a home buyer waits in the DFW market, the more they will end up paying for their next home or investment property. However, increasing sales prices alone are not the only thing that will raise a future homebuyer’s expenses, which leads me to my second point. Rising interest rates in the face of inflation.

Interest rates today, as many of you have heard being touted numerous times from television and radio advertisements, are at their lowest in years. History and today’s current economic policies prove that this will soon not be the case. How? The answer is inevitable inflation. Most people mistakenly believe that inflation is simply rising prices. The true definition of inflation is when the supply of money outpaces the production of goods and services. It is a simple case of supply and demand. When more and more money is being printed and the supply of goods and services remains the same, the influx of new money causes all money to be worth less, resulting in the increased price of goods and services. In other words, rising prices are only a symptom of inflation and the end result of a monetary trend. Congress has recently opened the non-existent coffers and more and more money is being spent every day on stimulus packages and bailouts. We have never seen this type of government debt in our country’s history. How does the government plan to pay for this additional spending? They may raise taxes but in a declared recession, that would be political suicide. Their answer: crank up the printing presses. This, along with rising gold prices due to fear of a weakening dollar and falling bond markets (when U.S. creditors begin to worry about inflation they demand a higher rate of interest on their loans to our government. As these interest rates rise, treasury bond prices fall.) show that inflation for the United States is unavoidable.

How does this affect mortgage interest rates? Throughout history we can see examples of how rising inflation has caused mortgage interest rates to rise substantially. If you take a look at the most recent inflationary period, the late 1970s and early 1980s, inflation was extensive. The 10-Yr treasury rate reached its peak in 1982 at 15% and the price of commodities skyrocketed. During inflationary times lenders who want to survive are forced to charge more interest in order to cover the losses they experience from the devaluation of the dollar. Mortgage rates averaged around 17% during this last inflationary period. Not a good sign for things to come. Interest rates do not need to rise by much to affect your purchasing power. What does a mortgage rate increase of only 3% mean for you? A mortgage for $150,000 today at 5% interest equates to a monthly payment of $805.23 principle and interest. The same mortgage at 8% interest equates to a monthly payment of $1100.65 principle and interest. That is an increase of nearly $300 per month and over $3500 per year! Looking at this another way, to get the same $805 monthly payment at 8% interest, your mortgage could not exceed $109,500. You would have to purchase a house that is priced $40,500 less for that same payment! Talk about throwing your money away!

For an even clearer example let’s take these two mortgage balances and figure in a 10% down payment on each. Considering the interest rates discussed previously, monthly payments for principle and interest would be $805 per month for both of these homes! You would go from a:

Kitchen in a Lewisville home priced at $165,000 @ 5% interest

to a Kitchen in a Lewisville home priced at $119,500 @ 8% interest

Take an assessment of your wants and needs list. Are you willing to give up the walk-in closet, separate shower and bathtub, or the open kitchen? If the answer is NO, please consider the facts above.

Remember, a mortgage is a long-term, fixed rate debt on a valuable asset that historically increases in value over time. Fixed rate debt can be an advantageous monetary tool during inflationary times. I know of no other legal way to borrow a dollar and only pay back 50 cents. The key however is to get that fixed rate BEFORE interest rates rise. That, along with an initial low purchase price, can be your hedge against inflation and your chance to own the most home with the most amenities for the money for years to come.

Customer Satisfaction of New Home Construction Gains Ground

I read an interesting article on CNNMoney this morning that should be of some interest to anyone considering purchasing a new construction home this year, especially those interested in taking advantage of the $8000 first time homebuyer tax credit. According to the 2009 J.D. Powers and Associates U.S. New Homebuilder Satisfaction Study, although less new construction homes are being built, overall customer satisfaction increased for the second year in a row, up 32 points to 811 on a 1,000 point scale. Fierce competition amongst builders has lead to benefit for home buyers. Only the strongest builders have survived and they have survived by offering better home construction quality, more upgrades, and functional floorplans all at a discount from previous years. Also, of special interest to first time homebuyers, there are many homes at the finish out stage or almost there, that can be closed on by the November 30th deadline to qualify for the new homebuyer tax credit. To read more, click here.

Darling Homes tops the builder satisfaction study for the Dallas/Fort Worth area. Drees Homes and Ashton Woods homes follow Darling in the number two and three spots.

Looking for a new construction home? Visit our website's new construction home search for the Dallas and Fort Worth area! See floorplans, community information, and many homes that you won't find on the MLS.

Top Dallas/Fort Worth home builders
Based on 2009 survey of consumer satisfaction with 1,000 being a perfect score:

1. Darling Homes 876
2. Drees Custom Homes 865
3. Ashton Woods 864
4. Pulte Homes 860
5. Standard Pacific Homes 858
6. David Weekley Homes 850
7. Highland Homes 849
8. Horizon Homes 836
9. Ryland Homes 816
10.K Hovnanian 813
11. Del Webb 811
D-FW average 809
12. Lennar 805
13. Meritage Homes 800
14. D. R. Horton 792
15. KB Homes 783
16. Beazer Homes 779
17. Centex Homes 774
18. Grand Homes 761
19. First Texas Homes 752
20. Fox & Jacobs 752
21. History Maker 749
22. Toll Brothers 716
SOURCE: J.D. Power and Associates 2009 New-Home Builder Customer Satisfaction Study

New Forecast States Dallas, Houston, and San Antonio Will Be in Top 10 Home Markets for 2009

A little more good news about the housing market in Texas courtesy of Local Market Monitor and Steve Brown with the Dallas Morning News!

Despite continued sale declines, a new forecast predicts the Dallas, Houston, and San Antonio areas will be in the Top 10 Markets in the U.S. this year.

Dallas, Fort Worth, Houston, San Antonio, and Wichita Falls are all on the list of what are expected to be the 10 top-performing housing markets, according to a report released today, Wednesday, September 9, 2009, by analysts at Local Market Monitor.

To read the full article from the Dallas Morning News Click Here.


For more sales trends for the Dallas Fort Worth real estate market click here and find your favorite home, and click on sales trends.

Plano School Board Approves Tax Rate Increase

Do you live in a home that feeds into the Plano ISD? If so, you will soon be paying slightly higher property taxes. The Plano ISD school board unanimously approved a 2.5 cents tax increase last night, September 1, 2009, to help pay down debt. This vote comes as Plano ISD has started to selling more than $100 million in debt to fund campus renovations and school construction.

This increase will change the tax rate for homeowners whose homes feed into Plano ISD from 1.3034 percent to 1.3284 percent for public school taxes. This increase will mean a homeowner whose home's tax appraisal is $200,000 will have to start paying $50.00 per year more than before.

Click here if you are interested in purchasing a home in Plano or the Plano ISD!

New Lewisville Lake Toll Bridge Opened This Past Weekend

Commuters now have a new, alternative way to commute to Dallas from the NE side of the metroplex. The new Lewisville Lake Toll Bridge opened this past weekend to a lot of fan fare but unfortunately no 5K race due to the weather. Residents of Little Elm, Frisco, Prosper, and McKinney will benefit greatly by the new bridge by being able to cut across Lewisville Lake instead of having to commute around it. The same goes for residents on the western side of the metroplex commuting east.

If you have thought about purchasing a home in Frisco or Little Elm before but changed your mind due to the commute, now is the time!

Sprouts has just opened in Coppell!

Coppell I believe is the winner for best groceries stores in the DFW area within a 5 mile radius. They already have a Whole Foods in close proximity to Costco and now a Sprouts Grocery just opened last week! It is located at the intersection of Sandy Lake and Denton Tap. They are even having a demonstration on Thursday, June 11th titled "Fantastic Foods for Glowing Skin" at 7 PM!

If you want to live in a community with great groceries stores like Sprouts, visit our website to view homes in Coppell, Texas!

E.P. Rayzor Elementary in Lantana now rated as Exemplary!

I have a special spot in my heart for this school, as my son goes there. EP Rayzor has been working really hard to get bumped up from Recognized to Exemplary status and with this years TAKS scores they made it! Congratulations Wolves!

If you would like to see homes listed in Lantana, Texas you can visit our website!

The Simple Truth about Short Sales and Foreclosures in N. Texas

My team and I have noticed that in today's market, everyone is interested in learning more about short sales and foreclosures. They seem like such a great bargain! Our Accounts Manager has been getting 1 - 3 calls a day on this subject alone. Now, you can find out the simple truth about Short Sales and Foreclosures in N. Texas.

Short Sales - A short sale is a home that has not been foreclosed upon yet. The seller has been delinquent on payments and has worked out an agreement with his/her lender to allow the home to be sold for less than what the seller owes on the house in order to avoid foreclosure proceedings. Even though the lender will be receiving less money than they are owed upon the sale of this home, they will be saving money in the long run by avoiding the expensive costs that go along with foreclosure proceedings including court costs, attorney fees, etc. The seller avoids being locked out of their home and possibly losing some or all of their possessions. They also will only have delinquent payments on their credit score and not a foreclosure.

What's in it for you? The fact that the home is a short sale generally equates to the home being under market value. Since the N. Texas market is fairly stable, without drastic plunges, that could mean instant equity for you! Also, a short sale home typically has an owner/seller that wants to get the home sold, not one that is bitter that the home is being taken away from them. This means that the home is generally in better shape overall than a foreclosure.

So what are the negatives? A short sale, just like a foreclosure, is typically sold "as is", meaning you should still have a right to an inspection (which is HIGHLY advised by this REALTOR), but don't plan on the seller or lender paying for any repairs. They are already losing money. This means if the home needs new flooring or needs air conditioning work YOU will be footing the bill. One nice thing is that FHA is now offering a new loan called a 203K Streamline Rehab. This allows you to finance in the cost for a lot of repairs into your mortgage. Speak to your favorite lender about this or contact my team for a lender recommendation.

The other big negative in some cases with a short sale is the time it takes to get a response. In a majority of cases, there will be multiple offers on a short sale property because they are such good deals. However, most lenders can take weeks to get back to potential buyers and their agents with a response. If you have the time and patience, this can work to your advantage as most buyers typically lose patience and move on to other properties. Remember though, it does take patience. In some cases, the home will go into foreclosure before you even get a response! However, a good buying agent and a good selling agent can stop this MOST of the time with cooperation from the bank.

All and all, a short sale property is a good deal for you if it needs little repair or you have the funds/capability to handle the repairs needed and you have time and patience, which can be tough to come by when planning to purchase a home.

Foreclosures - One of the most common questions asked to our Accounts Manager about foreclosures is "Do I have to pay any back taxes if I buy a foreclosure?". The answer is NO. The lender that owns the property is responsible for paying all back taxes. Make sure that an owners' title policy is issued at closing. This ensures a good title. Your title company will issue this insurance policy. This is a policy that guarantees good title even if an unknown lien surfaces after closing. You will not be responsible for any past liens on the property that occurred before you purchased. The story is different if you were to go and buy a home in a courthouse steps auction, but in the case of a foreclosure listed by a real estate agent, the facts above are true.

What are the advantages to you for purchasing a foreclosed property? Foreclosures, like short sales, can be a good deal. However, the bank does want to avoid as much loss as possible. They will list a foreclosure at market value and only knock the price down after the home has set on the market for a certain amount of days. Also, they will only negotiate down substantially regarding the same situation. However, it never hurts to try to get a good deal on a foreclosed property because after all, it is all just a numbers game. In most cases you do not run the chance of offending the seller, which is the lender. Unlike dealing with an emotionally tied owner/occupant, if the numbers work for the lender they work. They will counter if the numbers don't work. However, outrageously lowball offers can be outright rejected, such as an offer for 50% of the asking price. I have seen this happen. Remember, the bank, just like any other seller, could list and sell the home for more than 50% of market value. They will not be that taken advantage of and can afford to hold on to the property until a more reasonable buyer comes along. If that means dropping the price by 10% - 15% to find that buyer it is still more advantageous to them than giving it away at 50% of market value.

What negatives should you expect? Just like with a short sale, a foreclosure is sold "as is". You are buying the property just the way you see it. Be smart and get an inspection! You do not want to get trapped in a money pit. Also, foreclosures are typically more beat up than other homes on the market. The previous owner may have taken out their angst on getting foreclosed upon on their soon to be foreclosed upon property. I have seen foreclosures with all the door knobs taken out as well as the appliances. Most need the flooring replaced and a good paint job too. Bathrooms can be a nightmare as well. You can luck out and buy a foreclosed home that is only a year or two old that needs very little work, but these are not on the market very often.

When it comes to short sales and foreclosures in general, a good real estate agent is key. Your agent can advise you on the actual market value of the property, recommend vendors for quotes on repairs, and should know how to negotiate with the banks and handle any issue that may arise. My team has a plethora of experience in both short sales and foreclosures and we are happy to consult with you and make sure you get the best deal possible with the least hassle on a home you love. Contact us today and lets get started! 1-800-720-2197