Texas real estate

Although the financial crisis devastated thousands of people and businesses in the U.S., leaving families without jobs or homes, it has created incredibly cheap housing prices for those in the market. Anyone currently looking to invest in real estate or looking to buy a first home can save astronomical amounts on houses because of the current low market.

One of the best reasons to buy up homes right now is because the market isn’t going to get any lower at this point. Currently, homes are at their very lowest, meaning that in five to ten years, the homes will be worth thousands of dollars more. This is ideal for real estate gurus who are looking for homes for sale in McAllen TX and other cities around the country. Buying now practically guarantees that you will see enormous returns once the housing market goes back up.

As a first time homebuyer, now is an excellent time to buy not only because of the low prices but also because of the first time homebuyer grant. The government is currently giving every first time homebuyer $8,000 to put towards their down payment, and with the cheap housing prices currently, that $8,000 could almost cover a 10% down payment.

Because of all of the foreclosures and short sales around the country, banks are literally trying to get rid of houses as quickly as they can. While looking at homes being sold by their owners can still turn up good deals, checking out foreclosed homes can lead to incredible steals.

By: Ryan Coisson

One of the best ways to build up equity is through buying a short sale. In a nutshell, this is a sale when a lender accepts a sum that is less than the amount borrowed when a property is sold. Below are a few helpful tips in short sale buying.

1. Find a REALTOR® who has extensive experience in selling short sale properties. An experienced REALTOR® knows what questions to ask the negotiator or the listing real estate agent and stay in tune with the current process for that specific home.

2. Time is of the essence in a short sale process. Home inspections and financing should be done as soon as the lender sends out a letter of acceptance. In most cases, the bank can take their time, but as a home buyer, one cannot, especially since the banks addendum has strict time specifications.

3. Most mortgage lenders would require proof of funds and a pre-approval letter together with your home offer. The stronger your letter, the better it will look to them. Have the lender pull your credit and provide documentation such as employment and proof of income that is required by an underwriter. This way, when your home offer is accepted, the process will be faster. disciplined

4. A short sale is entirely different from that of the usual buyer/seller negotiations. In this type of home sale you will be negotiating with the mortgage lender. Usually, lenders will look for a fair market value to recover the loan value. Therefore, most of them are reluctant to agree to the price and even more hesitant in accepting a low offer. Never assume you can pay even less than what they are already asking, especially if the home is in good condition. Odds are, there will be multiple offers and the highest and best wins.

5. You must be patient in waiting for the short sale to close. The waiting time will depend on where exactly the negotiations are. Most often, the listing price is not actually the asking price being negotiated. In a conventional home buying process, it usually takes thirty days to close on a home deal. Nevertheless, short sales could take anywhere from 60-90 days AFTER the lender has accepted your offer. There are occasions where they may take even longer, but if the seller and the listing real estate agent have done their job, you won’t have to wait for the short sale process to get started.

A short sale is a great way to find a wonderful home at a good price, but at the same time it could also cause you a major headache for months. Make sure that you are well informed on the entire process from start to finish. If you encounter a sale that seems too good to be true, it most probably is. If you have doubts regarding a short sale process, real estate investment, or your judgment, it’s better to seek the advice of a real estate agent or a real estate lawyer.

By: Liz Voss

There are two choices borrowers are faced with when purchasing a home: collecting monthly escrows for annual tax and homeowner’s insurance bills or paying these expenses in lumps sums when they are due. Conventional wisdom has always told buyers to do whatever they can to avoid escrows since since this would afford them the opportunity to earn interest on these funds instead of their bank. However, the real answer to this question may not be so easy.

Escrows occur when a lender collects a prorated portion of the annual property taxes and homeowner’s insurance premium every month from a borrower – kind of like a savings account held by the mortgage lender. When the bills come due, they will be paid directly from that account. This way the borrower is relieved of the responsibility of planning for what can be a major annual expense and does not run the risk of having insufficient funds to cover these bills.

Escrows are typically required whenever a borrower puts less than a 20% down payment on a home and optional when the borrower has more than a 20% equity stake in their home. Lenders like this arrangement because they don’t have to worry about borrowers not paying their tax bills and a tax lien getting in the way of their own security position. This strategy also allows lenders to earn interest on funds in the escrow account until it is tapped for taxes and insurance.

In today’s environment the argument against escrows is not as strong as it used to be. Liquid assets are not earning the type of interest as when short term interest rates were in the high-single or low-double digits. Therefore, the earnings on those funds for the borrower is modest. Furthermore, in an environment where employment and income is less reliable, and with housing values being weak, it might make sense to take advantage of the budgeting offered by an escrow account rather than face the risk of a shortfall come tax time. That shortfall could mean tax penalties, dramatically increased hazard insurance premiums, and a higher loan payoff as a result of these arrearages if you are trying to sell your house.

On the other hand, there is something to be said for controlling your own destiny. Those borrowers who have significant liquid reserves available, enjoy a high level of disposable income, and are able to effectively budget for their expenses may be better served by retaining this risk and keeping the modest earnings provided through the investment of accrued tax and investment reserves.

Some borrowers may simply not have much of a choice. In this difficult economy, fewer borrowers are able to come up with the 20% down payment necessary to avoid escrows. In addition, combo loans that offered the benefit of an optional escrow by combining a first mortgage providing financing for 80% of the purchase price combined with a purchase second mortgage that provides an additional 5-15% are not as easy to come by. The second mortgages also tend to carry higher rates and have shorter repayment periods, meaning a higher overall monthly housing expense.

The plan that makes the most sense for a borrower really depends on their circumstances. A borrower who has the choice of whether to escrow or not should consult a Certified Mortgage Planning Specialist (CMPS®) to see if there are specific benefits to an escrow arrangement, such as a lower interest rate, and what the dollar impact is of the escrow savings in order to make an educated decision.

By: Mike Lesmeister

There are many trade associations in Austin that deal specifically with apartments. These include the Austin Apartment Association (AAA), the Texas Apartment Association, Inc. (TAA), and the National Apartment Association (NAA). There associations are non-profit institutions dedicated to the service of the rental housing industry. With growing demand for rented apartment in and around Austin, these associations play a key role in protecting the interests of both property owners as well as renters.

The Austin Apartment Association (AAA), established in 1964, is affiliated to the Texas Apartment Association and the National Apartment Association. AAA members include property owners, builders, developers, property managers, REIT executives, management companies and on-site staff and vendors who supply products and services to the industry. The AAA represents more than 155,000 rental units in Austin and ten other counties in Central Texas. AAA members represent more than 100 units in the Greater Austin area. They represent nearly 98% of the total rental properties in Austin. AAA has a membership from more than 500 apartment communities in the area of Greater Austin. AAA offers advise and consultancy services for renting and leasing of apartments.

The Texas Apartment Association, Inc. (TAA), founded in 1963, is also a non-profit organization committed to the development of the rental housing industry. The main objective of TAA is to educate and advocate the members, who comprise mainly of property owners, developers, builders and property management companies. TAA is affiliated to the National Apartment Association and other local associations in 25 cities in Texas. TAA has a membership base of over 10,000 members and represents close to 1.6 million rental units across Texas. On the whole, the TAA represents property worth more than $150 billion in market value. TAA provides standard forms and applications for lease contracts, rental contracts and other property issues.

Austin apartment associations are great for both property owners and residents. These associations can protect owners and provide valuable information to prospective residents.

By: Alison Cole

Property acquisition opportunities worth serious pursuits in the Sarasota, Florida real estate market will have to include those at the Bent Tree Country Club. Located in eastern Sarasota County, just a two-mile drive away from Interstate 75, the Bent Tree residential development presents a peaceful retreat from the hustle and bustle of city living. This golf enclave development began as far back as the mid-1970s with utmost devotion to the preservation of the property’s natural surroundings.

As a result, Bent Tree offers a sanctuary of mature woodlands, pristine lakes and unspoiled streams so magnificently interwoven into its golf links and residential community. A lot of improvements have also been undertaken in the country club complex.

The country club clubhouse has been upgraded to further enhance its facilities and services. The positive end results clearly manifest in various dining options at the Bent Tree community center. Casual dinners and lunches are available at the clubhouse Grille Room which also holds regular weekly specials in fine and themed dining. As many as 250 persons can now be accommodated in the dining areas which can serve as a comfortable venue for large social functions or gatherings. An even bouncier beat can be enjoyed at the club’s tennis courts, in addition to the delights that can be had at a full-sized swimming pool and a shallow one specifically for children.

Golf’s varied challenges eloquently manifests in the 18-hole, par 72 golf links of Bent Tree designed by Bill Lewis, a much-sought course builder. Opened in 1975, this layout was renovated in 1994 under the stewardship of another noted course designer, Ward Northrup. The course has five tee sets for golfers to test their individual capabilities. Its yardage is in the 5,645-6,863-yard range, course rating is at 72.9, and slope rating at 129 on Bermuda grass. Major tournaments, including US Open qualifiers and LPGA jousts, have been held at Bent Tree, attesting to the superb condition of its golf course and its complementary facilities.

The same wonders characterize the homes in Bent Tree which immensely benefit from the pristine environment that the golf course has created. There are various selections of Bent Tree homes for sale as many residences have been added to this gated community from the 1990s to the 2000s. Options can include condo units with floor plans from 1,600 to 2,000 square feet. Market offerings can likewise feature single family homes with floor areas of around 2,000 square feet and asking prices in the $140s-$200s range, in addition to upscale residences sporting floor spaces of over 3,500 square feet and posted prices in the $700s.

By: Alan Atchley

Like all of Texas, San Antonio does it up big. Home of the famous Alamo and the National Basketball Association’s San Antonio Spurs, the city offers a rich blend of Mexican-American cultures, as well as a range of warm weather lifestyles for active young adults to the more mature retirees. Also San Antonio currently enjoys a much more stable real estate market then most other parts of the country. The state may not have the huge appreciation that markets on the east and west coast experience, but on the other hand they have not seen the 20% or larger drops in the past year as these other markets have.

Due to growth in the San Antonio job market, which is currently one of the strongest in the country, the local economy remains stable. The influx of businesses and industries like Toyota’s Tundra Truck Plant, Microsoft, Rackspace and the National Security Agency’s Satellite Center, and the construction of TPC San Antonio Golf Resort have all helped to created an abundance of high paying jobs. Also, this past January, construction began at Fort Sam Houston military installation on a two billion dollar project that is expected to add approximately 10,000-12,000 jobs over the next four years.

San Antonio is certainly proving to be a hidden gem in the real estate market, in that it is actually thriving and continues to grow while other sectors of the nation lag. But there are a number of other factors that make San Antonio stand out. For instance, the city has a low risk of damage from tornadoes and hurricanes when compared to the rest of the state. Yet it is close enough to the coast that within a few hours you can be soaking up some sun on the beaches in Corpus Christi. Add to this the median home cost of $150,800 (2007) and San Antonio is a strong contender for an affordable, fun place to live.

A number of new communities are cropping up on the outskirts of San Antonio. For example, just twenty minutes from downtown , Cross Mountain offers ranch-like, two acre subdivisions for quite, wide-open country living and fantastic views of the surrounding hills. Prices range from $250,000 to $875,000. Some slightly older homes can be found at Oak Hollow Estates with prices ranging from $130,000 to $225,000 as well as Colonies North, a well established community of older homes, which has always maintained its value. The price range of these homes is generally about $80,000 to $145,000, and sales continue to remain strong.

There is certainly no shortage of affordable homes available in the San Antonio area and with the diverse number of communities in and around the city, there are some great options available to real estate buyers and sellers alike. Secure locations, quality school districts, lots of great amenities and better community recreational facilities with lots of green spaces, all combine to make San Antonio one of the best real estate markets for buying or selling a home.

By: Cherri Fox

You’ve watched the real estate market for a while and are ready to make the plunge. Now that you’ve decided to sell, what do you look for?

It can be tempting to make an offer on the nicest house on the block. This is a mistake. If you buy the most expensive house on the block, you have no way to add equity through improvements. If the homes around you are selling for $300,000, you will never get much above this figure.

A better approach is to buy the “beater” home in the area. This is the home with the horrific landscaping, peeling paint, cracks in the driveway and so on. Although it looks beat up, this fixer home is the root to a profitable investment. Why? Well, assume we are in our $300,000 neighborhood and this home is selling for $250,000. You can probably get it for $230,000. So, now what?

The key is the vast gains you can make with some relative inexpensive changes. Cosmetic problems are the easiest to fix. With our beater, converting the landscaping into something nice is probably going to cost you $1,000 or less and a lot of sweat. Painting may set you back $5,000 to $10,000. Fixing the cracks in the driveway may run a couple thousand dollars. For a total of $10,000 to $15,000, you can improve the home to “average”, which means you’ve paid roughly $250,000 total for a $300,000 home. You’ve just made $50,000!

Now, a word of caution has to be given. Buying the fixer on the block is only wise if the problems are cosmetic. If the home has fundamental problems that are going to cost a lot of money to fix, run for your life. Foundation problems or major termite problems can be a real nightmare. If it is easy to fix, buy it. If it isn’t, don’t!

There is a final way to make money in real estate. The strategy is called buying when everyone else is afraid to. This is contrarian thinking. If the fundamentals of an area are good – low crime, good schools – then prices will ultimately bounce back. This is exactly the situation we see now, so you could really be looking at major bargains in the future.

By: Raynor James

A shipwrecked Spanish soldier, Alvar Nunez Cabeza de Vaca, was the first European to visit the Houston area. He lived and traded among native Karankawa Indians from 1528 to 1534. It was not until 1823, however, in the first years of Angelo American migration to Texas, that a trading post was built at the junction of Buffalo Bayou and Bray’s bayous by John R. Harris, a New Yorker. The townsite laid out there in 1826 was named Harrisburg. It eventually was to become part of modern Houston.

Harrisburg thrived as a lumber milling and shipping town. For a few weeks early in 1836 it was the capital of the newly proclaimed Republic of Texas. In April 1836, shortly before the Texan victory at the nearby battle of San Jacinto, the town was burned and occupied by Mexican troops.

Two real estate speculators, the brothers John K. and Augustus C. Allen, then founded a new town several miles up Buffalo Bayou, at the mouth of White Oak Bayou. They shrewdly named it after the Texan war hero Gen. Sam Houston. While Harrisburg lay temporarily in ruins, an energetic publicity campaign brought hundreds of settlers to Houston. The city was incorporated on June 5, 1837. James Holman was the first mayor. From 1837 until 1839, and again in 1842, it was the capital of the Republic of Texas.

As Houston became a leading outlet for the cotton, lumber, and sugar produced in the surrounding region, regular steamboat service to the Gulf was begun on Buffalo Bayou. By the 1850′s the city had become an important railroad center. In 1866 it annexed Harrisburg. During the Civil War Houston prospered as a Confederate port and military headquarters but suffered no war damage. Afterward, in 1865, it was occupied by Union troops.

The first free public schools were set up in 1876. Electric street lighting was introduced in the 1880′s. The first electric streetcars began operating in 1891. During these years yellow-fever epidemics periodically swept the area.

Houston began to emerge as a modern metropolis after the discovery of the Spindletop oil field near Beaumont in 1901. As a result of successive waves of oil discoveries at nearby Humble in 1904 and then elsewhere in eastern Texas, there was a massive growth of industry in Houston. Industrialization, especially in fields related to petroleum refining and the production of petrochemicals, was most rapid during World Wars I and II.

The Port of Houston, first organized in 1841, also grew rapidly. Periodic straightening, widening, and deepening of Buffalo bayou culminated in the opening of the first Houston Ship Channel in 1876. Devastation in the Port of Galveston by hurricane floods of 1900 resulted in the diversion of considerable shipping to Houston. This led to further dredging of the channel to 18 feet by 1908. However, the Port of Houston was not able to receive deep draft ocean vessels until the Turning Basin and a 25 foot deep channel to the Gulf were opened to traffic in 1915.
Meanwhile, Houston’s population was booming. For many decades the city had grown quite slowly, with a sevenfold increase to 292,352 inhabitants, Houston had become the largest city in Texas. By 1950 it was the largest in the entire South.

By: Huralain Raja

The year of 2008 has passed with several historical events like the record fall of the stock exchanges throughout the globe, the historic recession, the oil reached $140+ per barrel (mid 2008), the election of the first African-American president, etc.

The year of 2009 has started with a lot of hopes; Barack Obama has taken the oath and the massive killing in the Gaza Strip has been stopped. Now, people are expecting a lot with the new president. The injection of further $825 billion in the feeble economy is being planned. The new president will have to take some bold decisions to put the economy back on the track and to overcome the historic recession.

The real estate industry was badly hurt in 2008, the worst in the last few decades. We have seen a record decline in the home prices throughout the United States. Lending agencies have reduced the mortgage rates to keep the momentum of real estate sales.

All the reports which were prepared by different real estate survey organizations speak the same language, the home prices will be further decreased in 2009 – the only difference among these reports is in the percentages of the decline.

Home Sales Decline

According to the National Association of Realtors (NAR), around 4.98 million existing homes sold in 2008, and the figure will be further declined in 2009. It is important to remember that 2008 was the third straight year for low number of existing homes’ sales. The injured credit market will continue its negative trend and would not allow people to get mortgages freely. This situation will also increase the number of renters – renters would be able to save money of a mortgage, maintenance, etc.

Increase in Online Search

NAR further reported that in 2008, 32% buyers first get the information about the home from the internet. People will prefer to search for homes on the internet rather than relying only on the real estate agents. This trend will also reduce the number of real estate agents and brokers – more job cuts.

Increase in Commission Rates

The real estate agents will increase their commission rates up to 6% to overcome their expenses, especially, in a buyer’s market. People will prefer to use the internet for transactions to save the heavy commission amounts.

Increase in Single-Family Home Sales

People will prefer to live in small houses (in terms of covered area) to save money which they were used to spend for extra square footage. They would prefer single-family homes and would not take a buying decision based on week-old news. Now, real estate prices are not stable as they were used to be – they are fluctuating on a daily basis.

In a nutshell, the year 2009 would not be very much different from 2008. The home prices will continue to decline; the recession period will continue; to induce people, the mortgage rates are expected to decline further; people will prefer to use the internet for home buying; and the number real estate agents and brokers will continue to reduce.

By: Syed Rehan

The real estate market for Dallas, Texas this past year has been a remarkable one passing sales of 2009. For investors and home buyers there were not only great values, great mortgage rates but many incentives offered by the government as well, such as the $8,000 cash back incentive- all of which motivated many buyers and investors to purchase property.

Of sales in the Dallas Metroplex, the two leading areas were Frisco and the North Dallas Area rocketing sales of the previous year and taking the lead in most sold properties in the Dallas Fort Worth Metroplex. University Park continues to be the “most educated” town and Highland Park continues to be the 40th wealthiest neighborhood in the United States. Residents in the Metroplex enjoy an above state average household income with many being in the mid $100,000s. The work force has continued to be strong making Dallas Fort Worth one of the leading economies in the nation. All of which are wonderful considerations for resale values.

The residential properties were not the only solid investment in 2010; commercial properties have become a high demand in the Metroplex as well with many companies setting up headquarters in the area that earn $10 million plus in revenues and many mom and pop businesses. The city is in the state of constant expansion and the year 2011 will be no exception.

Dallas Fort Worth took the title of “safest neighborhood” with many of their neighborhoods in 2010 in towns such as Haslet, Frisco, Plano, McKinney, Carrollton and Lewisville. Dallas Fort Worth has become home to some of the most exceptional styles of living with up-scale condos and lofts such as the Third Rail Loft that include all the amenities of a resort on the grounds. For retired couples the area is still home to some of the finest retirement communities in the nation.

The year in review for the Dallas Fort Worth real estate market has been an exceptional one and with many plans of city improvements and expansion the coming year is predicted to be better than the previous. Investments are expected to be strong in both residential and commercial properties with property values holding strong and mortgage rates are expected to stay attractive. As for government incentives the year may hold many. It is an uphill market and one that will hold many values and wonderful investments.

By: Ashlee Pannell