Texas real estate

As a homeowner, you have an obligation to pay your property taxes. If you fail to do so, the tax authority can take action against you. This action usually comes in the form of a property tax sale. There are two sorts of property tax sales.

In a tax lien sale, the tax authority, usually the county, offers its right to the tax lien on the property for sale. The buyer of the lien may then exercise the lien in order to profit from it.

In a tax deed sale, the county offers full ownership of the property itself for sale.

When you bid on a tax lien sale, you are bidding on the tax debt. You are not going to come away from a tax lien sale owning a property. In fact, you will be paying off the owner’s tax debt in exchange for first lien position on the title. The homeowner now owes you ahead of mortgage lenders, deeds of trust or anyone with a claim against the property, with the exception of the state. These sales are held at public auction, with the highest bidder winning the tax lien. To verify this position, the buyer receives a tax lien certificate.

Now, when the delinquent homeowner pays off their tax lien debt to the buyer, the buyer can consider an interest penalty of from sixteen to twenty-four percent. This is where buying tax liens becomes quite profitable. If the tax lien debt is not paid back to buyer in full, plus interest, by a designated time, the buyer has the right to foreclose and acquire the property.

At a tax deed sale, you are purchasing the property itself. If you are the highest bidder, you win the property and the right to take possession without any mortgages, deeds of trust, liens, or any obligation whatsoever attached to the real estate property. Properties at such auctions are usually sold for taxes owed, plus any fees and court costs, etc. They are generally very good real estate deals to make.

In order to find out where and when tax lien and tax deed sales are taking place, it is probably best to contact the county government offices or check on their website.

Before you purchase a property, be sure to review it thoroughly. Visit the property before the sale and attempt to determine its value. You want to safeguard yourself against risk as much as is possible. You know what they say about buying a pig in a poke.

By: Chintamani Abhyankar

Not long ago, the large majority of home loans, whether you are talking about Austin or anywhere in the USA, were conventional loans. FHA for many years had made up a very small portion of the home purchasing process. But in the last few years FHA loans have soared and now account for 7 out of every 10 loans. Let’s look at why that transformation has occurred and which loan might be best for you as you look to buy a home in the Austin area.

Why are FHA loans so popular as of late?

The answer is simple, the mortgage collapse of 2008. Before lenders began to go out of business right and left the most popular home loans were conventional loans and the main reason was 100% financing. With a credit score of 620 or better borrowers were eligible for conventional loans that covered 100% of the purchase price. But when many of those homeowners defaulted and went into foreclosure that loan option went away along with hundreds of lenders we might add. That left FHA’s modest 3.5% down payment as the best method to buy a home for those with limited dollars.

For what type of buyer would an FHA loan be the best option?

Buyers and borrowers with credit scores in the 600′s, 620 to 680 find that many times FHA will provide an easier approval and better interest rates than conventional loans. Also keep in mind that FHA only allows loan amounts of about $288,000 in central Texas. So while the purchase price of your new home might be more than that amount, the actual loan amount has to be no greater than that figure.

Does FHA still offer down payment assistance?

Unlike years before when companies like Nehemiah or Neighborhood Gold could “loan” you the money for the down payment, FHA no longer works with these programs. The 3.5% down payment (You can put down more if you like) must either come from the buyers’ own funds or a gift from an immediate family member. Often times we will see for instance a first time home buyer get a gift of the down payment from their parents or other family member.

Are FHA loans only for first time home buyers?

No, anyone can use an FHA loan to buy a home. It is important to know that FHA loans can only be used to purchase a primary residence. The loan does not allow investment property purchases.

How do conventional loans compare?

Conventional loans are great for people with higher credit scores and larger down payments. With a down payment of 20% they avoid paying mortgage insurance (often referred to as MI or PMI) making for a lower payment.

Do I have to have 20% down to use a conventional loan to buy a home?

No, you can actually buy a home with as little as 5% down although interest rates are better with a 10% down payment.

How is my interest rate determined with an FHA or conventional loan?

Many people may see this as a big mystery but the days of lenders charging higher rates to some and lower to others with the same credit scores has all but ended. Your interest rate for either type of loan is based on 2 things; your credit score and how much money you are putting down. As mentioned before, FHA is slightly more lenient on buyers with scores in the 620-680 range than conventional but with either loan you will still receive a better interest rate for a score of 720 than you will for a score of 660. As far as the down payment is concerned, FHA loans offer the same interest rate no matter the size of the down payment while rates for conventional loans are better when the down payment is larger.

FHA loans and conventional loans team up to provide the answers for most borrowers today. The “easy qualifying” loans though that did not require proof of income are long gone with the new mortgage industry regulations. Today no matter which loan program you choose be prepared to prove your income through pay stubs and W-2′s and in some cases tax returns. Good loans are still available to those with good credit which has kept the Austin home market alive and well even in tough economic times.

By: Brian Talley

In the city of Austin a new energy ordinance will require that homeowners have an energy efficiency audit done prior to selling their home. The audit report must be disclosed to the buyer of their home. Energy audit and disclosure will become a part of the home purchase process in mid 2009.

In Austin’s hot climate energy performance has a lot to do with how efficiently the central AC system works. We are more concerned about cooling than heating, but both systems are used throughout the year. The new law aims to upgrade the energy performance of older homes in these critical areas:

Finding leaks and closing gaps in AC ducts. (Ducts can have 10% – 30% leakage!)

Improving the insulation in the attic to help retain conditioned air.

Keeping the hot sun out with solar screens on windows.

Reducing the loss of conditioned air through cracks in doorways and windows.

After some resistance by homeowners and groups, the law stopped short of making energy upgrades mandatory in order to sell a home. In today’s market, it does not make sense to add difficulty or cost to the sale process. So, the law was pared back to just require that sellers have an energy audit, and disclose the results to potential buyers.

Will buyers demand that the home they buy pass muster in terms of energy efficiency? The market will have to sort this out. I think that, over time, they probably will. Sellers will anticipate this by taking steps to correct the wasteful loss of energy in their home. Most sellers would like to have a positive report to show prospective buyers. They will want to have a clean bill of health. And, we must admit, the items required for testing are really fundamental.

They are so fundamental that they are generally not noticed. These are not the green features that are ego satisfying or visually appealing. We don’t see them featured in Dwell Magazine. They are not as exciting as wind turbines, or solar panels, or rainwater catchment, or Icestone counters. These are things that most people would rather not think about. Like caulking and duct mastic. And, unglamorous dark screens and dusty old attic insulation. These are not the upgrades that cause buyers to say, “I love it.”

So they have never been top of mind concerns. Austin’s new energy audit law is going change all that. It will bring these behind-the-scenes basics into the limelight. Old houses will meet new tech. Homeowners will be able to improve the basic energy efficiency of homes. That will mean lower utility bills. And fewer carbon-spewing power plants. And, a greener Austin.

By: Roselind Hejl

If you a have been trying to identify a viable property deal in Texas State, San Antonio foreclosure listings could be the best option for you. With thousands of real estate options available under these listings, you are sure to find a property in a great neighborhood at an amazing bargain price.

The properties that are available under San Antonio foreclosure listings are different from the standard real estate homes on sale as they have been foreclosed by banks and mortgage companies and are being sold at much lower asking prices than their real market worth. Home buyers can therefore make a very lucrative investment by finding a suitable property through these listings which offer a wide range of housing options in some of the best residential hubs in this city.

Unique selling points of purchasing a home using San Antonio foreclosure listings

For home buyers, interested in purchasing a budget priced property, foreclosure listings in this city offer homes with some unique selling points some of which have been listed below:

Very reasonable asking prices – One of the major selling points which have made San Antonio foreclosure listings highly favorable for home buyers as well as real estate investors are the highly reduced asking prices which are very reasonable as well as affordable for modest budget families as well.

Grants for first time buyers – The availability of grants under the city’s Down Payment Assistance Scheme for first time home buyers who are interested in buying a foreclosed home in San Antonio makes buying these properties all the more lucrative as well as a great bargain deal.

Thriving tourism industry – The city is also the centre of a thriving tourism industry which makes buying a property in this region a great investment move especially if it is through bargain property deals available under San Antonio foreclosure listings. Some of the famous tourist hot spots in the city include the famous Paso del Rio, the River Theater, Hems Fair Park as well as the Alamo which is Texas States most famous landmark.

Highly affordable lifestyle – Another unique selling point of foreclosed homes available in the city of San Antonio is that various real estate journals as well as news agencies like the CNN have voted the region as one of the most appropriate residential destinations with a highly affordable cost of living which makes it an ideal choice for home buyers.

Purchasing a property available through San Antonio foreclosure listings therefore makes for a very viable real estate venture as these homes have several unique selling points with unparalleled residential benefits.

By: Iwona Filetti

Known for its upscale amenities and stunning views of the Austin skyline, the Davenport Ranch neighborhood is a welcome retreat from the hustle and bustle of the city. It’s located northwest of Austin and is bordered by Highway 360 to the west, Lake Austin to the north and east, and the West Basin Wilderness Preserve to the south. Residents will enjoy a short commute – just 10 miles – to downtown Austin.

The subdivision began in the mid-1980s and was built in many stages that resulted in a variety of housing styles, sizes, and prices. Those wishing to live in the neighborhood will find a wide range of upscale properties including single-family homes and spacious, luxurious homes that can be purchased brand-new or previously owned. Since the neighborhood is relatively new, even pre-owned homes have updated features and amenities.

It’s common to find spacious homes with brick and stone exteriors. Many feature luxurious amenities like an outdoor swimming pool and patio with fireplaces that take advantage of the surrounding Hill Country views. From January 2009 to June 2010, sold prices ranged from $395,000 to more than $2 million, while size ranges were from 2,745 to 9,439 square feet.

Those who own homes in Davenport Ranch are required to be a member of the Davenport Ranch Homeowners Association. The annual dues go toward things like neighborhood maintenance, amenity upkeep, and community events. More information about the neighborhood, as well as announcements, a map of the area, and general contact information can be found on their website.

Residents of the Davenport Ranch neighborhood will be just minutes from the Austin Country Club, the oldest golf course in Texas. Since its start in 1899, the course has played home to several PGA golf champions – and, membership to this exclusive club is by invitation only. The Wild Basin Wilderness Preserve is also nearby. It spans 227 acres and has more than two miles of trails that wind through the woodland and grassland. To help maintain the natural beauty of the area, bikes, pets, and picnics are prohibited.

Another popular spot is Emma Long Metropolitan Park, which is about 3 miles from the neighborhood. The park spans more than 70 acres and is located on the shores of Lake Austin. It’s home to sand volleyball courts, camping and picnic areas, and a designated swimming area with men’s and women’s restrooms and showers. Residents can also get access to Lake Austin thanks to two boat ramps in the park.

Nearby Davenport Ranch – just two miles away – sits Davenport Village, an upscale shopping center that’s home to more than 40 vendors ranging from popular retail stores to two banks and the well-known Salt Lick Barbecue.

Students in the neighborhood will attend some of the most prestigious schools in the state, all of which are a part of the Eanes Independent School District. Bridge Point Elementary earned an Exemplary rating, while Forest Trail Elementary earned Blue Ribbon status. Other schools include Hill Country Middle School and the nationally recognized Westlake High School.

By: Brian Talley

A very effective, yet often overlooked method of marketing both your rentals and your houses for sale is door to door flyers in the neighborhood of your property. Residents who live near your property are likely to know someone – a friend, colleague or family member in the market for housing that they can pass your flyer on to. You may also attract the direct attention of a neighbor who is ready to buy or move up/down in their housing.

If you are local and don’t mind running around the neighborhood yourself, this method will only cost you a few hours plus the cost of printing. If you’re not available for the distribution, or just have better things to do, paying someone to distribute flyers is very cheap and incredibly cost effective if it results in a sale or a qualified tenant placement. Just remember to do a quick drive through of the neighborhood to ensure the flyers have been distributed if you’re paying someone to do it.

As for the content of the flyer, it’s worth it to take some quality photographs of the interior and exterior of the home. If your main selling point is the quality of the property, be sure to feature these in full color along with some of the basic specs of the home. If you are advertising a rent to own that’s a really great deal, make sure your analysis of the numbers is prominent and easily understood. Also, be sure to emphasize that this property is in their neighborhood and that this is an opportunity for them to choose their new neighbor. Lastly, don’t forget to include full contact information: your telephone number, fax number, email address and 24 hour recorded information line if you have one.

A more expensive variation of this method is to use direct mail to target your property’s neighborhood. Again, you’ll want to tailor your marketing message to let them know that this is their chance to mold the neighborhood by helping to select the new neighbors. To maximize your exposure, try using both flyer and direct mail distribution methods, timed several weeks apart to make sure that as many neighbors as possible get your message that you have a great property for sale or rent in their neighborhood.

By: James Orr

Getting ready for an typical real estate appraisal of a home is not complicated. Once the loan application has been approved, an appraiser is assigned to the property either by the lender, or in the case of loans for veterans, by VA itself.

The lender must provide the assignment order form along with a sale contract. Recent changes in the law require that appraisers dealing with a sale situation must review and analyze the sale contract. Refinances and other types of requests will of course not have a sale contract.

Ready access to the property must be available to avoid delays. Most appraisers are members of the local Board of REALTORS and normally possess a lock box key. Our experience with tenant-occupied properties is that it works best when the listing agent directly assists in setting up appointments. This helps the tenant feel more secure since they are already familiar with the agent.

It is always helpful for home owners to have their homes clean and in order. Appraisers are by tradition looking at a home from the viewpoint of a buyer, so a good impression is important. By the same token, appraisers often encounter a home when the owner is in the process of moving out, so boxes and other items are sometimes in disarray. This is okay. Appraisers understand this and are more concerned about being able to have full access to all areas, including the garage, than how the moving items look.

The appraiser is likely going to need to take measurements of the interior of the garage and look into water heater and AC closets, so be sure these areas are as clear and accessible as possible.

The appraiser’s worst enemy (next to a thunderstorm) is thorny or impassible shrubs or trees next to the house. They need to be able to use a measuring tape along each outside wall.

Dogs that bite are a problem but sometimes owners do not realize that their otherwise trusty and gentle pet may bite a stranger too. Dogs should always be penned up somehow and not left in the back yard when the appraiser arrives. It is best not to pen the dog inside the home or the garage unless they are confined to a cage, since the appraiser will need to enter all rooms and the garage.

Copies of seller disclosure notices are always welcome along with lists of recent sales and other marketing information. It’s hard to give an appraiser too much information. Especially useful is a copy of a recent survey.

It is not normally necessary for the owner to be absent during the appraisal. Most appraisers don’t mind if someone is there, especially when there are pets around. Burglar alarms should always be left off if the appraiser is allowed to visit the home when no one is there.

Real estate appraisers are pretty easy going folks. They want and need your cooperation as much as you do theirs. The modern appraiser typically approaches a job with an open mind.

By: Harry E Davis

Austin is one of several areas of the country that did not experience a big run up in prices from 2001 to 2007. We were slowed down by the Dot.com bust of 2001, and were still recovering from that through 2004.?This is an interview with Randy Frederick, a member of Forbes Investing Team, about the Austin market.

Steve Forbes: Don’t you think the demise of the major metropolitan [area] will be stanched by the fact that these aren’t just commercial capitals but cultural capitals as well??

Randy Frederick: While I’m a little too old to be attracted to it, downtown Austin continues to be a major draw for many people, especially the young and artsy types. There are several residential high-rise construction projects underway, because the demand is there–and I think it has more to do with being culturally attractive than anything else.

Since the University of Texas, the largest university in the U.S., is located [in] downtown Austin, there is a thriving night life, and many young people want to be part of that. In the nine years I’ve lived here, there has not really been a real estate boom, and as a result, the real estate decline has been far less severe than in many other parts of the country.

(Roselind) Randy, I appreciated your comment about Austin on the Forbes.Com – Investing Panel. Austin is blooming as a cultural capital, and downtown plays a big part in the Austin experience.

I recall going to the closing sale of Scarborough’s Department Store downtown in 1981, the same year that Barton Creek Mall opened. That seemed to be a low point in the abandonment of downtown as a retail destination. City task forces and business groups have worked hard for years to re-vitalize Austin’s center. Music venues led the way, bringing young people downtown.

In 1999 we began to see the first residential construction. Today downtown Austin is a growing residential and entertainment district, and it gets better every day. I was just there for a little of SXSW. Music everywhere.

Tell me a little about what you have noticed during your nine years in Austin?

(Randy) I am not a real estate expert and having lived in only one other major metropolitan area (Indianapolis, IN). I have limited comparisons. That said, when I moved to Austin in 2000, I was struck by the number of people, especially well educated and affluent, who found living in the city to be desirable.

That trend has seemingly continued and even increased in the ensuing years. In the 30 ?years I lived near the Indianapolis area, with only a few small exceptions, the suburbs were usually considered more desirable.

Metaphorically speaking, the center of a city is its heart and without a healthy heart, the body can not be healthy. There are many things I like about Austin (Music, Climate, Culture) but a vibrant and desirable downtown area is key to all of them.

(Roselind) I think that is so true – a vibrant downtown is crucial to having a city that attracts people. It will be interesting to see this continue to develop. In The City – A Global History, by Joel Kotkin, he talks about the need to bring more services into urban areas so that people don’t move to the suburbs when they have children. Things like good schools. Then the area will not turn over its population as rapidly.

You made a good point about having the University almost downtown. I had not realized how important that is. It supplies a lot of people for music venues, cafes, retail and living quarters.

On another subject – you mentioned that we did not experience a real estate boom in Austin. Therefore the decline in real estate has not been as severe as in other parts of the country. Comparatively, we are in great shape. Two recent reports:

1) Austin was rated the second healthiest housing market for 2009, in a study by Builder Magazine.? They said that the healthiest cities were great places to live andoften had major universities.? And they did not have the run up in prices during the boom.??

2) Forbes rated Austin #2 in their Top Ten Cities Where People are Relocating.? The Forbes article goes on to say that the top cities do not rely heavily on one industry.?

In my experience, sales are taking longer now than they did a couple of years ago. And, there are some pockets where the supply has exceeded demand. Some of these are popular neighborhoods where builders expected strong growth. Others are areas where modest homes were oversold to investors or sub-prime borrowers.

Yet, in spite of all the good news about Austin, people still ask if perhaps a more severe downtown is coming our way. What do you think? Is the other shoe about to drop?

(Randy) As I mentioned before I am not a housing market expert, but I do follow trends in economic reports such as housing starts, mortgage rates and Case-Shiller pricing reports. I also follow the earnings reports and stock prices of all the major builders.

While I wouldn’t describe it as another shoe to drop, I would say that from a national perspective, there is little sign that the housing market has bottomed yet. While there has been a slight uptick in existing sales, that is likely more the result of foreclosures, speculators and bottom fishers, than an actual pickup in demand. That said, any activity that effectively removes excess inventory is at least somewhat positive.

As difficult as recessions are, they are a necessary part of the business cycle because they re-adjust runaway inflation, which is exactly what we had in the housing market. In the Case Shiller Graph, the navy line shows how the price of housing was tracking quite nicely with inflation until about the beginning of 2001.? The yellow line shows roughly where housing prices probably would have been had the bubble not occurred, while the green line shows how far out of line we went and how much we’ve corrected. More importantly, the teal line shows how much correction is still needed.?

(Roselind) I have seen this index, and it is quite revealing of the problem. Since Case-Shiller does not track Austin, we don’t have a graph for this area. But, with modest levels of appreciation – 4%-5% – most years, I think our home prices would come a lot closer to the base line.?

As you said, Austin is one of several areas of the country that did not experience a big run up in prices from 2001 to 2007. We were slowed down by the Dot.com bust of 2001, and were still recovering from that through 2004. During that time builders pulled back on their programs, and we worked our way through an overload in high end inventory. Looking back, that probably kept us from getting on the price roller coaster. In 2008, we had a few percentage points of appreciation overall – an indication of the stability of our market.

Your perspective on the national market is one that we need to keep in mind. While we may not have a lot of deflation to handle here in Austin, we need for people to be able to sell in other areas, for credit to be available, and for confidence to be up. Until that happens we are going to operate with less demand than we were used to in recent years. And, that is not all bad. For buyers it is a good thing. They get a more balanced market with great interest rates right now.

Thank you very much for sharing your perspective!

By: Roselind Hejl

Fort Myers can be seen on the south lake of Caloosahatchee and it is the capital of the Lee County in Florida. Fort Myers was established as an armed forces settlement in 1850 but it was introduced as a town in 1885. Fort Myers underwent the depression but was helped in terms of the centralized projects. With this, the town continued to develop and became a perfect place for business. It was also developed for tourists and discoverers. The development leads for Fort Myers real estate to open and offer pleasurable stay in the place.

Fort Myers is known in offering a comfortable life both for tourists and residents as well. The town is also being promoted globally for its beauty and richness. Aside from the beauty that it has, the town is also very historic since the 19th century when it is still the home of the soldiers fighting for the Seminole Wars. So Fort Myers real estate has been offering all the good things that people can get when they live or visit the town.

It has also many tourist attractions. One of the best places to visit is the Southwest Florida Museum of History. Tourists will see many ancient works of art in this museum. People can reach the museum by going to the previous Atlantic Coastline Railroad warehouse.

Another must-see place is the Eastwood Golf course. This is a place for everyone even for non-golfers. This place is modernized and the landscape is superb. So even if people are not playing gold, they are still visiting the place for a sight.

Fort’s Country Club is one of the oldest amenities on the west coastline of Florida. This place has already undergone many improvements. Golfers also go here because they find the place to be a perfect place to play golf. The accommodations in this place are also luxurious.

For recreational activities, the best place to be is the Harborside Even Center. People visit this place for amusement, education, commercial, and business activities. Many people are also holding many occasions in this place because of the superb surroundings that people can enjoy while they are in this event center.

The Yacht Basin is a must-see place in the town. People can unwind and relax while riding the yacht because of the beautiful scenery that people see.

For skaters and bikers, the perfect place for them is the Fort Myers Skate Park. The park promotes sports to the youth and it has many safety measures both in daytime and nighttime. There are also classes offered for those who want to learn sports like skating, biking, and blading.

Fort Myers real estate has also developed many accommodations in the town. One of which is the Howard Johnson Inn that offers modern facilities. It is an elegant inn and gives excellent service to the clients. Homewood Suites offers entertainment area and spacious kitchen for each room. Each room is very spacious. Econo Lodge Airport Inn is near the attractions and trade centers and can be seen in Throughway 75. Sanibel Inn is a two-story building offering excellent services for the clients. Neptune Inn has pool decks, railings, and other outdoor facilities. The ambiance is very relaxing with two beachfront pools. Ramada Limited Hotel is newly renovated and accessible for all vehicles. This hotel has modern facilities.

So if you are trying to look for a place to visit, look for a Fort Myers real estate agency so they can guide you in your tour in town. Fort Myers is really a must-visit place so you don’t have to miss this. For sure you will see a Fort Myer real estate agency that will definitely help you in your trip.

By: Jim F Roberts

While you may have an idea of what real estate short sales are, you knowledge may just stop there. When it comes to putting one together, you can find that you do not know where to start. The various parties to the transaction have to be brought into agreement, and the short sale necessarily involves more effort than a simple purchase of a house. So, let’s discuss the mechanics of the real estate short sale.

With the increase in foreclosures over the past year, there is no shortage of houses that could be suitable candidates for a short sale. What you need is a house where the lender does not expect to be able to recover all his money from selling it after a foreclosure. The homeowner will often be getting desperate, and you may find that you need to educate him/her on how a short sale benefits them, as compared to going through a foreclosure. Having a foreclosure on one’s credit record can be devastating, making it very hard to every own a home again.

The cooperation of the homeowner is essential, and incidentally this is one of the benefits for you compared to buying a foreclosure. Often, angry owners whose houses are being repossessed will take out some of that anger on the house before moving out, damaging the property and sometimes even taking and selling the air-conditioning units and other items. In a cooperative short sale environment, you should not face the same problem.

Once you have found a house that you would like to try to buy at a short sale, you will need to put together an offer that you hope the lender will accept. Although you may have your own idea of the value, or access to sales records in the area, it can help to get a Broker Price Opinion, or BPO, for the property you are interested in. This will show the lender that you are serious, and also give him a third-party basis on which to assess your bid.

With the owner’s consent, and the necessary forms, you can approach the lender officially and submit an offer for the short sale. Then all you have to do is wait for an answer from the lender. Unlike a normal house purchase, when your offer is accepted or declined within a day or two, it can take a few weeks for the lender to process and approve a short sale.

If you have the patience and knowledge to go through with a real estate short sale, you will find it can be one of the best ways to buy properties in the current real estate market.

By: David Oswald