Deborah Peck Century 21 Landmasters

Take the Stress Out of Homebuying

Deborah Peck — Sat, 24 Jul 2010 19:09:00 GMT

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

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

6 Reasons to Reduce Your Home Price

Deborah Peck — Mon, 12 Jul 2010 20:50:00 GMT

By: G. M. Filisko

Published 2010-03-19 13:10:49

While you’d like to get the best price for your home, consider our six reasons to reduce your home price.

Home not selling? That could happen for a number of reasons you can’t control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price.

These six signs may be telling you it’s time to lower your price.

1. You’re drawing few lookers

You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

2. You’re drawing lots of lookers but have no offers

If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home’s been on the market longer than similar homes

Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline

If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

5. You can’t make upgrades

Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

6. The competition has changed

If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.

Congress Extends Homebuyer Tax Credit Closing Deadline

Deborah Peck — Fri, 09 Jul 2010 19:49:00 GMT

The United States Senate passed an extension of the Homebuyer Tax Credit closing deadline. Known as the “Homebuyers Assistance and Improvement Act of 2010.” The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 but could not close before June 30. This legislation is designed to create a seamless extension. The new closing deadline for eligible home sale transactions is now September 30, 2010. There will not be any gap between June 30 and the date the President signs the bill into law.

Buchanan Dam

Deborah Peck — Sun, 27 Jun 2010 21:52:00 GMT

The Buchanan Dam area consists of many retirement communities and businesses located around the southern part of Lake Buchanan. There are many RV Parks, motels Bed & Breakfast Inns and Resorts in the area.
The Buchanan Dam area is approximately 65 miles northwest of Austin, Texas. Lake Buchanan is the largest of the four Highland Lakes, with a length of 30 miles and a width at the widest point of just under 5 miles. Buchanan Dam is considered to be the longest multiple-arch dam in the U.S. with a length of just over two miles. The dam is 145.5 feet high.Buchanan Dam is located at the Southern end of Lake Buchanan just off of Highway 29. Buchanan is pronounced "BUCK-AN-AN" which is a novelty for most tourist. It was named after a man who pronounced his name that way.One main attraction of Lake Buchanan in the winter months is spotting the Bald Eagles that have winter nests there. You can also take cruises up the lake to spot the Bald Eagles. The Eagles have been seen as far South as the Kingsland area. They come back to winter there each year. It has become quite a focal point of Llano County.

You might qualify for homebuyer assistance

Deborah Peck — Tue, 22 Jun 2010 15:06:00 GMT

	Real estate in texas JUN. 21, 2010 You might qualify for homebuyer assistance By MARTY KRAMER, Consumer columnist
	I wish there had been a resourceful Web site like TxHomePrograms.org when I was buying my first house. That was 15 years ago, though … not much real estate info on the Internet. TxHomePrograms.org is a site sponsored by the Texas Association of REALTORS® that helps prospective homebuyers find any assistance programs that pertain to them. Knowing what I know now, there’s a good chance my wife and I did meet the standards for downpayment assistance or a lower interest rate or some other type of available buyer incentive. Which brings me back to TxHomePrograms.org. You can visit the site to easily find out if there’s an assistance program for you. Believe me, that’s better than wondering later if you could’ve saved some money.		Maybe you’re sitting there assuming you don’t qualify for anything … perhaps you’re not a first-time buyer or you think your income’s too high. You could be right. Then again … You can go to TxHomePrograms.org, plug in some information about yourself, and see what comes up. Or you can view the comprehensive list of available programs any explore any that interest you. There are programs based on where you live and your income, programs for veterans, programs for first-time buyers, programs for buyers with disabilities, and more. It’s worth a few minutes of your time to check it out.

Real estate in texas
JUN. 21, 2010

You might qualify for homebuyer assistance
By MARTY KRAMER, Consumer columnist

I wish there had been a resourceful Web site like TxHomePrograms.org when I was buying my first house. That was 15 years ago, though … not much real estate info on the Internet.

TxHomePrograms.org is a site sponsored by the Texas Association of REALTORS® that helps prospective homebuyers find any assistance programs that pertain to them.

Knowing what I know now, there’s a good chance my wife and I did meet the standards for downpayment assistance or a lower interest rate or some other type of available buyer incentive. Which brings me back to TxHomePrograms.org. You can visit the site to easily find out if there’s an assistance program for you. Believe me, that’s better than wondering later if you could’ve saved some money.

Maybe you’re sitting there assuming you don’t qualify for anything … perhaps you’re not a first-time buyer or you think your income’s too high. You could be right. Then again …

You can go to TxHomePrograms.org, plug in some information about yourself, and see what comes up. Or you can view the comprehensive list of available programs any explore any that interest you.

There are programs based on where you live and your income, programs for veterans, programs for first-time buyers, programs for buyers with disabilities, and more. It’s worth a few minutes of your time to check it out.

Llano County #4 in the Nation!

Deborah Peck — Thu, 17 Jun 2010 20:38:00 GMT

Where America's Money Is Moving

Jon Bruner, 06.14.10, 02:30 PM EDT The Link is Forbes.com.

Wealth

Where America's Money Is Moving

Jon Bruner, 06.14.10, 02:30 PM EDT

Low taxes, warm sunshine and deep discounts on real estate. No wonder IRS data shows the wealthiest among us are headed south.
Surprise: America's wealthy like warm weather and low taxes. That's the takeaway from IRS data, analyzed by Forbes, on moves between counties. We looked for counties that the rich are moving to in big numbers.
Topping the list: Collier County, Fla., which includes the city of Naples. Tax returns accounting for 15,150 people showed moves to Collier County from other parts of the country in 2008, the latest year for which IRS data is available. Their average reported income: $76,161 per person--equivalent to $304,644 for a family of four. Although slightly more taxpayers moved out of Collier County than into it, the departing residents' average income came out to just $26,128 per person.
Households that moved to Collier County principally came from other parts of Florida, with Lee, Miami Dade, Broward, Palm Beach and Orange counties leading the list. Big northern cities also sent lots of migrants: Cook County, Ill. (home to Chicago); Oakland County, Mich. (near Detroit); and Suffolk County, N.Y. (on Long Island) each sent more than 100 people to Collier County during 2008.
In second place is Greene County, Ga., with a population of just 15,743 at the Census Bureau's last estimate. The IRS data show that in 2008, 788 people moved to the county, about 75 miles east of Atlanta.
Rounding out the top five: Nassau County, Fla., near Jacksonville; Llano County, Texas, 70 miles northwest of Austin; and Walton County, Fla., 80 miles east of Pensacola.
The dominance of the list by Florida and Texas--the former has eight of the top 20 counties, the latter four-- makes sense to Robert Shrum, manager of state affairs at the Tax Foundation in Washington, D.C., since neither state has an income tax. "If you're a high-income earner, then that, from a tax perspective, is going to be a driving decider if you're going to move to one of those two states," Shrum says.
After accounting for property taxes, Shrum's analysis shows that Texas has the fourth-lowest personal tax burden in the country, and Florida has the eighth lowest. Shrum also points to eight states that have targeted wealthy households with extra-high tax brackets: California, New Jersey, New York, Maryland, Hawaii, Oregon, Connecticut and Wisconsin. Six of the top 10 counties the rich are fleeing are located in those states.
Pitkin County, Colo., home to the pricey Aspen ski community, where home listings average more than $3.5 million, saw an exodus of rich people in 2008 as the economy began to contract. The 962 tax filers and dependents who left Pitkin had an average income of $71,473 per capita, while the equivalent figure for those moving to the county was $30,000 lower. Of those leaving Pitkin County, 224 moved to neighboring Garfield County where, according to real estate information service Trulia, homes list for 75% less than those in Pitkin County. IRS data also show movement from the resort area to cities like New York, Chicago and San Francisco.
Behind the Numbers
To find places the rich are moving, Forbes used IRS data on household moves broken down by county and income. We included counties where arriving households are richer than households that didn't move and departing households are poorer than households that didn't move. The final ranking orders counties by the difference in per-capita income between incoming households and those that didn't move.
Our ranking of places the rich are fleeing essentially reverses these criteria, looking for counties where departing households are wealthier than the population as a whole and where incoming households are poorer.
In order to find patterns among the wealthy, we restricted the lists to counties where departing or arriving households had per-capita incomes of $35,000 or more. That figure is equivalent to an annual income of $140,000 for a family of four--a very high income for any large subset of the American population (of 3,142 counties with IRS data, only 130 have average incomes above this level). And in order to avoid statistical anomalies, we only included counties with at least 500 people listed as arriving or departing.

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This technique essentially finds new hot spots--places that aren't necessarily wealthy now but where wealthy people are moving. Some upscale places like Westchester County, N.Y., and Teton County, Wy., don't make the list because people moving into those counties aren't as rich as the people who already live there.
The IRS warns that these counts are only approximations; because they don't include households that don't file income tax returns, poor and elderly people are underrepresented. These counts also don't include returns filed after late-September 2009--a small fraction of total returns that tends to include some very rich people with complex returns who file for extensions.

Remember those changes made to seller financing, well look again!

Deborah Peck — Thu, 17 Jun 2010 20:25:00 GMT

Many of us have been very concerned about the implementation of federal legislation known as the SAFE Act that would severely limit an individual’s ability to seller finance their property in Texas.

We are working on numerous regulatory and legislative solutions to this affront to private-property owners, and have some good news to report. After urging, the chief regulator over the SAFE Act in Texas, the commissioner of the Texas Department of Savings and Mortgage Lending, has taken significant steps to allow Texas property owners to continue to seller finance up to five transactions in a 12-month period.

More specifically, the commissioner has delayed the implementation of the SAFE Act requirement for licensure in seller-financed transactions in Texas until August 31. This will give us time to implement regulatory and legislative changes during the coming months. For now it is important for you to know that the long-standing law of allowing a Texas seller to finance up to five transactions in a consecutive 12-month period is still in effect and the Texas Association of REALTORS® will continue to work at the federal and state level to see that this is a permanent solution.

Finally, this action would not have happened if not for the thousands of Texas REALTORS® who participated in our grassroots efforts to correct this abuse to private-property owners in Texas

Was the homebuyer tax credit a bad deal?

Deborah Peck — Sat, 12 Jun 2010 22:36:00 GMT

	Real estate in texas JUN. 1, 2010 Was the homebuyer tax credit a bad deal? Hardly By MARTY KRAMER, Consumer columnist
	Things are often more complicated than they seem. For example, an article I read today suggests that homebuyers who missed the federal homebuyer tax-credit deadline may actually save money. How’s that? Well, interest rates are lower now than just before the deadline. So in the article’s hypothetical example of a $350,000 home and a $70,000 downpayment, the homebuyer realizes $1,467 in annual savings because of today’s lower mortgage rates. Total savings over 30 years is $44,003 … significantly more than the $8,000 first-time homebuyer credit or the $6,500 that was available to existing homeowners. Like I said, though, it’s not that simple. First, lots of people don’t pay $350,000 for a house. The median Texas home price is less than $150,000. It’s also common for a homeowner to sell long before paying off that 30-year mortgage. The median length of homeownership is seven years in our state. So if the article instead focused on a lower-priced home and its smaller annual savings due to lower interest rates … and fewer years owning the home … the savings from that hypothetical example start to look hypothetical indeed.		Any savings also depends on your exact mortgage rate. Rates change more frequently than every month. In fact, they can vary during a day. Also, raters have been under 5% for several stretches since the tax credit began. These variables make a comparison muddier than the article suggests. This much is clear to me, though: Interest rates are incredibly low. When I purchased my first home, my loan carried a rate nearly double today’s rates. Also, just because the federal tax credit has passed doesn’t mean there’s no assistance available. You can search TxHomePrograms.org to see if there’s a program you qualify for. I could create hypothetical scenarios where a homebuyer’s savings now totaled a few bucks more or a fistful of dollars less than when the tax credit was in place. The point is that it depends on many factors. It was a good time to buy a home before the tax credit, and it’s a good time to buy a home now … if it’s a good time for you based on your personal situation.

Real estate in texas
JUN. 1, 2010

Was the homebuyer tax credit a bad deal? Hardly
By MARTY KRAMER, Consumer columnist

Things are often more complicated than they seem. For example, an article I read today suggests that homebuyers who missed the federal homebuyer tax-credit deadline may actually save money.

How’s that? Well, interest rates are lower now than just before the deadline. So in the article’s hypothetical example of a $350,000 home and a $70,000 downpayment, the homebuyer realizes $1,467 in annual savings because of today’s lower mortgage rates. Total savings over 30 years is $44,003 … significantly more than the $8,000 first-time homebuyer credit or the $6,500 that was available to existing homeowners.

Like I said, though, it’s not that simple. First, lots of people don’t pay $350,000 for a house. The median Texas home price is less than $150,000. It’s also common for a homeowner to sell long before paying off that 30-year mortgage. The median length of homeownership is seven years in our state.

So if the article instead focused on a lower-priced home and its smaller annual savings due to lower interest rates … and fewer years owning the home … the savings from that hypothetical example start to look hypothetical indeed.

Any savings also depends on your exact mortgage rate. Rates change more frequently than every month. In fact, they can vary during a day. Also, raters have been under 5% for several stretches since the tax credit began.

These variables make a comparison muddier than the article suggests. This much is clear to me, though: Interest rates are incredibly low. When I purchased my first home, my loan carried a rate nearly double today’s rates.

Also, just because the federal tax credit has passed doesn’t mean there’s no assistance available. You can search TxHomePrograms.org to see if there’s a program you qualify for.

I could create hypothetical scenarios where a homebuyer’s savings now totaled a few bucks more or a fistful of dollars less than when the tax credit was in place.

The point is that it depends on many factors. It was a good time to buy a home before the tax credit, and it’s a good time to buy a home now … if it’s a good time for you based on your personal situation.

Changes in Owner Financing

Deborah Peck — Mon, 17 May 2010 14:19:00 GMT

May 31, 2010 will mean some big changes in the way Owner Financing is legal in Texas. The Federal Government legislated what is called the SAFE act and with the provisions of that act all states within one year of this federal law going into effect, each state had to pass their own implementation of the legislation. Texas had to do it or the federal government was going to implement it on us. In the past if a seller sold 5 or fewer 1 to 4 family homes they were able to do so without having a license. As of May 31, 2010 that rule will go away and the new legislation will be in effect. There are 2 new exemptions,

(1) The owner must be selling the primary residence

(2) The owner is only allowed to sell to immediate family member, ie, son, daughter, mother or father

In order to sell and owner finance any other property the owner must have a Residential Mortgage Loan Originator license. The legislation includes only 1-4 residential property(single home, duplex or fourplex). It does not apply to commercial property or unimproved property.That is the only way seller financing is allowable in Texas after May 31, 2010. If you have questions you may contact the Texas Real Estate Commission.

Home Star Bill Passes in the House of Representatives

Deborah Peck — Wed, 12 May 2010 16:37:00 GMT

Home Star Bill Passes in the House of Representatives

Home Star Energy Retrofit Act of 2010 (H.R. 5019) passed the House of Representatives on Thursday, May 6, 2010. This vote is the authorization for the bill and it must be matched with an appropriation bill. The appropriations bill will actually allocate the $6 billion dollars to the program. AND, the Senate must pass their version of the Home Star bill so there is still work to be done; however, there is much enthusiasm about the bill and the fact that if it passes, BPI (Building Performance Institute) and RESNET Raters will conduct the test-in and the test-out for the energy efficiency of consumer houses.

Tax Credit Deadline

Deborah Peck — Fri, 30 Apr 2010 16:47:00 GMT

Hurry! Hurry! Tonight at midnight is the deadline to lock in a contract in order to recceive the tax credit. Don't let that free money slip away!

Get Moving to Qualify for the Federal Homebuyer Tax Credit

Deborah Peck — Wed, 28 Apr 2010 20:57:00 GMT

	By MARTY KRAMER, Consumer columnist
	It’s coming down to the wire. You have only until the end of April to get a house under contract if you want to take advantage of the federal homebuyer tax credit. While that’s a tight deadline, it’s not an impossible task. You don’t have to close the transaction by April 30 – you simply need a signed, agreed-upon contract. With a contract in place, you then have until June 30 to complete the purchase. If you plan to have a contract on a home by the April 30 deadline, though, don’t procrastinate even a little. Negotiations between buyers and sellers sometimes take several days. An unexpected hiccup that pushes the contract effective date into May will be costly. The credit is worth up to $8,000 for first-time homebuyers and as much as $6,500 for other homebuyers. (There are income limitations for both types of credit and occupancy requirements for the existing-homeowner credit.)		I’m not suggesting that you rush into a home purchase simply to qualify for the tax credit. If you’re not mentally and financially ready to buy a house, the tax credit won’t magically get you there. But if you’re searching for a home and just haven’t decided on the right one, this deadline should add urgency to your search. It’s not too late to take advantage of this opportunity to save a large sum of money – but it’s getting close. Contact your Texas REALTOR® today and find out whether the tax credit applies to your situation.

By MARTY KRAMER, Consumer columnist

It’s coming down to the wire. You have only until the end of April to get a house under contract if you want to take advantage of the federal homebuyer tax credit.

While that’s a tight deadline, it’s not an impossible task. You don’t have to close the transaction by April 30 – you simply need a signed, agreed-upon contract. With a contract in place, you then have until June 30 to complete the purchase.

If you plan to have a contract on a home by the April 30 deadline, though, don’t procrastinate even a little. Negotiations between buyers and sellers sometimes take several days. An unexpected hiccup that pushes the contract effective date into May will be costly. The credit is worth up to $8,000 for first-time homebuyers and as much as $6,500 for other homebuyers. (There are income limitations for both types of credit and occupancy requirements for the existing-homeowner credit.)

I’m not suggesting that you rush into a home purchase simply to qualify for the tax credit. If you’re not mentally and financially ready to buy a house, the tax credit won’t magically get you there. But if you’re searching for a home and just haven’t decided on the right one, this deadline should add urgency to your search.

It’s not too late to take advantage of this opportunity to save a large sum of money – but it’s getting close. Contact your Texas REALTOR® today and find out whether the tax credit applies to your situation.

First Time Buyer Tax Credit

Deborah Peck — Mon, 26 Apr 2010 14:57:00 GMT

Only 5 more days to lock in the First Time Home Buyer Tax Credit and don't forget the $6,500.00 tax credit for other home buyers. You must be locked into a contract by April 30, 2010 in order to qualify and you must close by June 30, 2010. Don't let this get away!

Is your purchase affected by hidden costs?

Deborah Peck — Mon, 26 Apr 2010 14:36:00 GMT

	I’ve heard of a Trojan horse, but a Trojan house? By GABRIEL LOPEZ
	Imagine if you will, Hector and his wife Andromache purchase a new home from a builder. They have paid for inspections, appraisals, possibly surveys, an option fee, closing costs, repairs, etc. Fast forward 10 years … the couple has been paying their mortgage, homeowners insurance, HOA fees, property taxes, etc. Finally, they decide to sell their home. As they prepare to place house on the market, they are mortified to find out that they will owe the original developer 1% of the sales price. How could this be? Well-buried in the fine print of the neighborhood covenant, the builder has been lying in wait … one last fee stab that even Homer could not see coming. Although property transfer fees (i.e. taxes) are not levied by the state of Texas, there is a disturbing trend as builders and developers across the state have been signing up for a service that would attach private transfer fees to homes. The idea was the brainchild of a company originally started in Texas called Freehold Capital Partners. Freehold has an almost iconoclastic view that seeks to place land developers in the same class as copyright and patent holders. Namely, as a Freehold brochure states, they should be entitled to royalties since their creations “will be enjoyed for generations to come… .” What makes matters worse is that the transfer fee is inscribed on the neighborhood covenant, which developers file with the county clerk’s office prior to the completion of construction in a subdivision. So, even if a title search unearths the fee, the lengthy nature of neighborhood covenants would almost ensure that the property owners would not read every covenant and restriction. This fee is not just a one time occurrence; the encumbrance would last for 99 years and would assess 1% each time the property changed hands.		Freehold Capital states that allowing developers to sell transfer fee rights to investors in secondary markets would allow the developer to add more amenities to the neighborhood or lower the costs of the home or possibly both. Whether this true is debatable, since at this time there have been no studies to confirm or deny these claims. Texas law already restricts private transfer fees. The Legislature did carve out a small exception for the fee, though, if it benefited certain groups, like charities, property owner associations, or governmental entities. Freehold has used this exception and is interpreting the statute to mean that a fee is legal if a portion collected goes to charity. Parts of the federal government are taking a stance on the issue. The general counsel for the Department of Housing and Urban Development has issued an opinion that private transfer fees clearly violate HUD’s regulations, which prohibit legal restrictions on conveyance. This proclamation bars any private transfer fees to be attached to any mortgage insured by the Federal Housing Administration. The Texas Association of REALTORS® has consistently fought all real estate transfer taxes in Texas, as they raise the price of homeownership. Such is the case with this latest tactic, since the seller of a home with a private transfer fee would likely raise the price to “pay” for that cost. Letting that Trojan horse through the gates would definitely be an unwelcome surprise that harms many Texas homebuyers. Read more on how real estate transfer fees hurt consumers

I’ve heard of a Trojan horse, but a Trojan house?
By GABRIEL LOPEZ

Imagine if you will, Hector and his wife Andromache purchase a new home from a builder. They have paid for inspections, appraisals, possibly surveys, an option fee, closing costs, repairs, etc.

Fast forward 10 years … the couple has been paying their mortgage, homeowners insurance, HOA fees, property taxes, etc. Finally, they decide to sell their home. As they prepare to place house on the market, they are mortified to find out that they will owe the original developer 1% of the sales price.

How could this be? Well-buried in the fine print of the neighborhood covenant, the builder has been lying in wait … one last fee stab that even Homer could not see coming.

Although property transfer fees (i.e. taxes) are not levied by the state of Texas, there is a disturbing trend as builders and developers across the state have been signing up for a service that would attach private transfer fees to homes. The idea was the brainchild of a company originally started in Texas called Freehold Capital Partners. Freehold has an almost iconoclastic view that seeks to place land developers in the same class as copyright and patent holders. Namely, as a Freehold brochure states, they should be entitled to royalties since their creations “will be enjoyed for generations to come… .”

What makes matters worse is that the transfer fee is inscribed on the neighborhood covenant, which developers file with the county clerk’s office prior to the completion of construction in a subdivision. So, even if a title search unearths the fee, the lengthy nature of neighborhood covenants would almost ensure that the property owners would not read every covenant and restriction.

This fee is not just a one time occurrence; the encumbrance would last for 99 years and would assess 1% each time the property changed hands.

Freehold Capital states that allowing developers to sell transfer fee rights to investors in secondary markets would allow the developer to add more amenities to the neighborhood or lower the costs of the home or possibly both. Whether this true is debatable, since at this time there have been no studies to confirm or deny these claims.

Texas law already restricts private transfer fees. The Legislature did carve out a small exception for the fee, though, if it benefited certain groups, like charities, property owner associations, or governmental entities. Freehold has used this exception and is interpreting the statute to mean that a fee is legal if a portion collected goes to charity.

Parts of the federal government are taking a stance on the issue. The general counsel for the Department of Housing and Urban Development has issued an opinion that private transfer fees clearly violate HUD’s regulations, which prohibit legal restrictions on conveyance. This proclamation bars any private transfer fees to be attached to any mortgage insured by the Federal Housing Administration.

The Texas Association of REALTORS® has consistently fought all real estate transfer taxes in Texas, as they raise the price of homeownership. Such is the case with this latest tactic, since the seller of a home with a private transfer fee would likely raise the price to “pay” for that cost. Letting that Trojan horse through the gates would definitely be an unwelcome surprise that harms many Texas homebuyers.

Read more on how real estate transfer fees hurt consumers

How Texas escaped the real estate bust

Deborah Peck — Thu, 15 Apr 2010 20:23:00 GMT

How Texas escaped the real estate bust
Texas REALTORS® credited for helping state avoid real estate meltdown
Due to the proactive efforts of Texas REALTOR®, our state did not suffer the significant erosion in real estate values or high foreclosure rates experienced in many other states (Why you should hug a REALTOR®, by Rick Casey, Houston Chronicle, April 5, 2010). In the late 1990s, when the Texas Legislature was considering allowing home-equity loans, Texas REALTORS® were concerned that if people borrowed too much against their homes and the economy went south, foreclosures would soar and home prices would sink. Texas REALTORS® pushed for protections for Texas homeowners, the most important of which allows homeowners to borrow a maximum of 80% of the appraised value of their homes. Many states that allow homeowners to borrow 100% or more of the value of their homes are the very states facing the highest foreclosure rates and largest drops in real estate values.

Can I Be a Home Owner?

Deborah Peck — Mon, 12 Apr 2010 22:17:00 GMT

How Much Can I Afford?

Determining your ability to comfortably pay monthly mortgage payments is something for which lenders will use established guidelines. A general rule is that a household's mortgage payment should not exceed 36% of its income on all its debt, which includes the monthly mortgage payment; and that the mortgage itself should not exceed 28% of the household income.

Remember, if you are purchasing a home with a spouse or other partner, you can include that person's income (and, of course, consider his or her debts) when computing the cost of the home you can afford. Mortgage calculators can be great tools when making these calculations.

How to Get the Extended Home Buyer Tax Credit

Deborah Peck — Thu, 08 Apr 2010 15:09:00 GMT

How to Get the Extended Home Buyer Tax Credit

You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here's what you have to do to get your benefit:

Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract in place by April 30, 2010 with a closing date no later than June 30, 2010.
Decide whether to:
- apply the credit to your 2009 tax return, filed on or before April 15, 2010;
- file an amended 2009 return; or,
- apply the credit on your 2010 return, filed on or before April 15, 2011.
Attach documentation of purchase to your return.

Payment options when refinancing retirement with reverse mortgage

Deborah Peck — Wed, 07 Apr 2010 20:00:00 GMT

Payment options when refinancing retirement with reverse mortgage

By BOB JEFFRIES

POSTED: April 2, 2010

Example: You are 73 years old and own outright a $200,000 home. With an HECM loan you get a line of credit or a lump sum advance. If the house is worth $300,000, you can borrow $124,000. If you are 70 years old, you can only borrow around $115,000. Always check with a specialist as things change.

As with any mortgage, the borrower must pay interest and the loan is secured by the house. But, you need not make any payments at all until you leave the house.

Then you or your estate can sell the house and pay the principal and interest. Any appreciation belongs to the homeowner or heirs. Many homeowners or heirs elect to prepay the interest and principal and keep the house. There are no prepayments or penalities. Through the process, the homeowner owns the house- not the lender.

Payments to you

Besides a lump sum, there are several other ways for you to take your cash from a reverse mortgage.

n Line of credit. You use the reverse mortgage credit line when you need it. You could use some of the money to pay routine bills and use the rest for home repairs, etc. You owe principal and interest only on the money that is actually drawn down.

n Monthly advances. Under this option, the homeowner could receive monthly payments of about $735 for as long as he/she stays in the house. If the homeowner dies after one year, the heirs need to pay only the interest and principal of payments already received.

n Fixed period. Instead of electing income for your life in the house, you can elect to receive monthly checks for a fixed period, such as five years. This could help you survive a difficult time, for example, until pension payments start or until you sell the house and move to your retirement home.

n Combinations. You can select more than one payment option. You might choose a lump sum of $25,000 to make repairs on the house. At the same time you could receive monthly payments to cover living costs.

Paying off mortgages

About 78 percent of Americans own their homes without any debt, according to the U.S. Department of Health and Human Services. But, those with a conventional mortgage can use the reverse mortgage to pay off the debt. This relieves the pressure of paying monthly payments and also enables the homeowner to avoid foreclosure woes.

Costs: Interest rates on reverse mortgages are typically adjustable annually. The recent rate was a bit more than the average fixed-rate mortgage.

Besides, the interest, an HECM borrower must pay an origination fee equal to 2 percent of the value of the home or $2,000, whichever is greater. In addition, there is an up-front HECM mortgage insurance fee which is equal to 2 percent of the value of the home.

Most of the fees can be included in the value of the loans, so the borrower does not face sizeable out-of-pocket costs at closing. Or, the fees can be paid along with the rest of the mortgage when the house is sold.

Who should use a reverse mortgage

To determine whether it is worth paying the costs of a loan, meet with a financial planner to discuss all aspects of your situation. Under the rules, all borrowers must attend a counseling session with an independent expert. This process is worthwhile, because borrowers may decide that other alternatives are more attractive.

If you are in chronic bad health and may not be able to live in the house much longer, a reverse mortgage could be the wrong choice. In addition, a reverse mortgage could be unsuitable if the home is in bad shape. In an extreme case, the property might cost more to fix up than it is worth. From your reverse mortgage, you might get a lump sum of $100,000, but have to spend $80,000 to make the house meet your needs. There are many specialists (several, some from as far away as Tampa, e-mailed me to express their congratulations on the first article).

Just remember last weeks column about the reverse mortgage calculator at www.rmaarp.com.

Have a real estate question? Write, call, fax or e-mail:

Bob Jeffries, Realtor,

Century 21 Birchwood Realty, Inc.

4040 Del Prado Blvd., Cape Coral, FL

First and second mortgages, choice of title companies

Deborah Peck — Tue, 23 Mar 2010 14:02:00 GMT

	ask george & chuck March 22, 2010 First and second mortgages, choice of title companies Answers to real estate questions as appearing in the Houston Chronicle By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
	Dear George: If a property has first and second mortgages and the first mortgage then is paid off, does the second mortgage become the primary lien, or can the owner replace the first mortgage with another loan? Answer: If you pay off the first mortage, the second mortgage becomes the only and primary lien against that property. You might be able to place a new first lien on the property, but the holder of the original second mortgage must agree.		Dear George: Is the seller or his agent allowed to dictate the title company used in the sale of a property? I know that this point is negotiable in a transaction, but can the seller legally say, "I will agree to pay for the title policy only if you use X Title Company." Answer: The seller may dictate such a condition. The agent may not, unless the agent is acting on instructions from his client, the seller. NB: New RESPA rules dictate that the buyer can choose the settlement service provider as a part of the new Good Faith Estimate disclosures, but the seller does not have to pay for it.

ask george & chuck
March 22, 2010

First and second mortgages, choice of title companies
Answers to real estate questions as appearing
in the Houston Chronicle

By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD

Dear George: If a property has first and second mortgages and the first mortgage then is paid off, does the second mortgage become the primary lien, or can the owner replace the first mortgage with another loan?

Answer: If you pay off the first mortage, the second mortgage becomes the only and primary lien against that property. You might be able to place a new first lien on the property, but the holder of the original second mortgage must agree.

Dear George: Is the seller or his agent allowed to dictate the title company used in the sale of a property? I know that this point is negotiable in a transaction, but can the seller legally say, "I will agree to pay for the title policy only if you use X Title Company."

Answer: The seller may dictate such a condition. The agent may not, unless the agent is acting on instructions from his client, the seller. NB: New RESPA rules dictate that the buyer can choose the settlement service provider as a part of the new Good Faith Estimate disclosures, but the seller does not have to pay for it.

Saving money on your homeowners insurance

Deborah Peck — Thu, 18 Mar 2010 16:28:00 GMT

Saving money on your homeowners insurance

Copied from texasrealestate.com

Did you know that Texas homeowners pay the highest insurance rates in the nation? Texas consumers pay an average of $880 annually for homeowners insurance. Apparently, insurance carriers in our state believe that Mother Nature tends to hit Texas with some pretty hard blows, including rain, hail, wind, snow, and hurricanes. We all wind up paying the price for the property damage that results from these events.

Sweet-talking your insurance carrier is not likely to bring your premiums down, but there are some things you can do to save on insurance. Whether you’re in a home or are looking to buy one, consider these money-saving tips.

The property matters
If you are looking for a house, take the property into account. Newer homes are usually in better shape and may cost less to insure. If the electrical and HVAC systems are less than 10 years old, your insurance will likely be cheaper than a home where those systems are older. Some carriers offer discounts of five to 15% if you purchase a new home.

You might also consider requesting a CLUE (Comprehensive Loss Underwriting Exchange) report from the current owner of the home. Only the homeowner can order this report contains that contains the insurance claim history of the property and can help you judge some of the problems the house may have.

Finally, take a close look at your home’s location. Flood insurance, for example, is not covered by a standard homeowners policy. So if you purchase property in an area where flood insurance is required or where you feel you need this protection, your overall insurance costs will be higher.

Raise your deductible
Deductibles are the amount of money you have to pay toward a loss before your insurance coverage kicks in. A home-insurance deductible can be as low as $250, but raising your deductible produces considerable savings. If you do choose to increase your deductible, make sure you can afford to pay more toward a loss that occurs.

Use the same company
Many insurance carriers will give you a discount if you purchase multiple policies from them, such as homeowners and automobile insurance. A multi-line discount will typically save you anywhere from 5 to 15%. But if you choose to go with one company, make sure the savings really yield the lowest overall price.

Don’t include the land
The land that your house sits on is not at risk for theft, hail, wind damage, etc. So when you are shopping for homeowners insurance, don’t include its value when deciding how much insurance to buy.

Secure it
Most insurance carriers will offer a discount of at least five percent for added security protections, such as dead bolts and smoke alarms. But some companies will cut your premium by as much as 15 or 20% for installing a more-sophisticated security system, like a burglar alarm that notifies the police or an indoor sprinkler system. While these systems are not cheap, they may save you money in the long run. Before you decide to buy or install any of these security measures, find out from your insurer if the system qualifies for a discount and how much you'd save on premiums.

Stop smoking or retire
Easier said than done, right? Well, smoking contributes to thousands of residential house fires each year. If you are not a smoker, or choose to quit, contact your insurance carrier. Some will offer to reduce the premium if there are no smokers living in the house.
If you are 55 years or older, you may qualify for a substantial discount. Some lenders offer up to 10%. When shopping for a policy, ask the carriers if they offer this discount.

The amount you pay for homeowners insurance can vary by hundreds of dollars per year, so spend some time asking questions and shopping around. If you’re not sure what to ask or who to trust, ask your Texas REALTOR® for advice. An expert in the field, your Texas REALTOR® can help you understand this and many other aspects of buying and owning a home.

Texas Wildflowers

Deborah Peck — Tue, 16 Mar 2010 14:10:00 GMT

Click on this link to learn how to identify the beautiful Texas wildflowers that we should have in abundance this year because of the rains. Lake Buchanan is on it's way up and the Texas Hill Country will be a beautiful spot to bring your family this spring and summer.

Click here to learn the names of our beautiful flowers: http://www.highlandlakes.com/wildflowers/

Verbal agreements, divorces and deeds

Deborah Peck — Fri, 12 Mar 2010 18:21:00 GMT

Answers to real estate questions as appearing
in the Houston Chronicle By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD

Dear George: I'm divorced and, according to the divorce decree, entitled to the house. I've been paying the property taxes, but the deed to the house is in my name and my ex-husband's name. Do I need to change the deed? If so, how do I go about it? My ex-husband will likely not sign any papers to assist me.

Answer: If the divorce decree has conveyance language in it, you don't need another deed. Each title company has its own underwriting standards, so you may want to check with your title company before you contemplate selling the house. At worst, you'll have to go back to the court and modify the order or get an order requiring that your ex-husband sign the deed. Don't hesitate to shop title companies if you need to. Conveyance language in a divorce decree can take different forms, but it usually states something similar to the following:

It is decreed that the estate of the parties be divided as follows: Petitioner is awarded the following as petitioner's sole and separate property, and respondent is hereby divested of all right, title, and interest in and to such property: All property listed in Schedule A attached hereto and made a part hereof by reference.

In this case, you are the petitioner and your ex-husband is the respondent. Before you take any action, consult with your own attorney.

REAL TIPS: Buying a Home

Deborah Peck — Tue, 02 Mar 2010 17:40:00 GMT

REAL TipS: BUYING

Expect the unexpected (and the expected)

The cost of home maintenance and repairs is usually one of the biggest surprises for new homeowners. Unfortunately, some buyers—especially first-time buyers—do not plan for such expenses because they’ve always had a landlord or property owner who deals with problems.

When you’re setting up your budget and trying to determine how much house to buy, make sure to earmark some cash for regular home maintenance. Most times, ignoring a problem will end up costing you more in the long term.

You should also plan for an unanticipated problem to pop up. When your water heater goes out or the plumbing system backs up, you don’t want to be strapped for cash—those things need to be fixed. Fast.

Buying a home is a sound investment—but don’t forget to take care of your purchase … and that means setting aside a little cash each month.

Texas Association of Realtors®

Signs That You're Ready to Buy

Deborah Peck — Sun, 28 Feb 2010 03:24:00 GMT

Six tips that tell you it's time

By Michele Dawson

Figuring out whether you're ready to buy a house -- whether you're a renter or are aiming to move up or size down -- can be a daunting task. But there are signs that will indicate whether you're ready to take the buying plunge. If you are thinking about buying, you're not alone. So are you ready to make the move? You might be if you:

1. Are familiar with the market. If you've been paying attention to how much houses are listed for in the neighborhoods you're eyeing and have a realistic view of how much a house will cost you, you're in good shape. But if you're dreaming about that big corner house with no clue about it's asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.

2. Have the money for a down payment and closing costs. The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. You can expect to pay between from 2 to 7 percent of the property value. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage.

3. Know how much you can afford. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt -credit card bills, car loans, housing expenses, alimony and child support -- should not be more than about 30 to 40 percent of your gross income.

4. Know what additional expenses will come with owning a home. This includes homeowners insurance, utility bills, maintenance costs -- roofing, plumbing, heating and cooling.

5. Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history -- how much debt you've accrued, how many accounts you have open, whether your payments are made on time, etc. -- to determine whether they'll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

6. You haven't made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan -- or it could potentially lower the amount you'll be approved for.

News from Texas Real Estate

Deborah Peck — Tue, 23 Feb 2010 21:02:00 GMT

Just for Texans: Visit our new microsites!

First-time homebuyers, check out TxHomePrograms.com to find out which special programs you may be eligible for.

Existing homeowners, go to KeepMyTexasHome.org if you’re in danger of falling behind on your mortgage payments.