Texas real estate

“$300 for a home inspection?
Why can’t I just have my brother take a look at it?”

To a REALTOR?, them’s scary words. When you’re buying property, protect your investment and yourself and have it inspected by a licensed property inspector. Not your brother, your father, your neighbor or just yourself, no matter how much any of these people know or how much respect you have for them. Even if they ARE a licensed inspector, you’re better off putting this job into the hands of someone who can, and will, give you a completely unbiased opinion of the condition of the property. After all, you’ve going to be spending way more than the $300 the inspection will cost, and what you know before close on the property can save you thousands of dollars.

Here is how the process works (or should work). In Texas, when you buy residential real estate, you will most likely use the contract promulgated (read: required), by TREC (Texas Real Estate Commission). When an offer is made, it usually contains an “Option Period”. You (the buyer) pay a nominal fee ($100 to $200+) for the unrestricted right to cancel the contract during a specified period (usually 7 to 10 days). During this time, you need to work fast to make sure you thoroughly examine the property so you know what you’re getting in to. You should have the home inspected by both a licensed home inspector and a licensed termite inspector. If it has a sprinkler system, or a pool or other significant features, you need to have those inspected as well. You do NOT want to skip this step and end up with a mess on your hands later that you could have discovered up front.

In Texas, home inspectors are licensed by TREC, the same entity that licenses real estate agents and brokers. The definitive collection of documents for licensed home inspectors in Texas can be found in the Inspector Information of TREC’s website. You can search by a listing of all licensed inspectors in Texas (but why would you?), or you can search for licensed inspectors by city. You can also ask your REALTOR? for a list of inspectors. If you receive a list from your REALTOR?, it should contain a disclaimer like this one:

“This is a partial list of inspectors that we have used in the past and were pleased with their work. Please be aware that there are many reputable inspectors in Austin. If you wish to see a more extensive list for your selection, please refer to the Yellow Pages (Real Estate Inspection Services). You may want to call and interview several inspectors before making your selection. Coldwell Banker United REALTORS does not warrant the condition of a property.”

This disclaimer is important, read it carefully: YOU are responsible for interviewing and selecting your inspector, and just because you received a list of inspectors from your agent does not mean you must use someone from that list, or that you don’t have to call them and interview them. It can be intimidating to make the first call, but after that is gets much easier. Ask them all a bunch of questions, pay attention to whether or not they seem responsive and knowledgeable, and if you can, get references. Then call the references! Remember, the time spent up front to get a good inspector is more than worth the time you’ll save later in property-condition headaches.

By now you may be wondering who the inspector is in the photograph. Unfortunately, I can’t tell you which of the inspectors on my list agreed to pose for me, but I can give you the whole list and you can pick the one that is right for your transaction. If you happen to pick this one, you’ll have the added benefit of getting to say, “Hey! I recognize you – you’re the guy in the picture!”

By: Alison Shuman

East Lake made headlines a few years back when it applied for a post office address of its own only to find that there’s already an East Lake post office over in Hillsborough County. The St. Petersburg Times reported on the ‘postal confusion’ and it’s been picked up and repeated over and over. There’s no confusion in Pinellas County, where East Lake is the well-known seat of sports, outdoor recreation, upscale family living. East Lake Real Estate has some of the most sought after communities in all of Tampa Bay.

Whether you’re outdoor pleasures tend toward lazing in the sun, hiking through the Central Florida inland, or teeing off on the green, East Lake has the perfect spot for you. The area boasts the nation’s second most beautiful natural beach just fifteen minutes away at Caladesi Island State Park, as well as other beaches on Honeymoon Island and at Fred H. Howard Park in next door Tarpon Springs. If you prefer your water fresh, East Lake is located right on Lake Tarpon, with 2500 acres of surface and well over five miles of coastline. Lake Tarpon is the largest lake in Pinellas County, and offers fishing, boating, and water sports to residents and visitors as well as many fine waterfront homes.

Lake Tarpon is accessible from John Chesnut Sr. Park, which offers boat ramp access as well as a fishing pier and the Peggy Park Trail, voted one of the best hiking trails in Florida. Golfers can tee off from any one of two public and three private greens in the area. Lansbrook Golf Course and Tarpon Woods Golf are the two popular and challenging courses that are sure to please even the most skilled golfer.

But there’s more to living than recreation – and East Lake shines in those departments as well. The recently adopted school choice plan opens many different educational options for East Lake students, including magnet schools that focus on specialized curricula and fundamental schools that concentrate on teaching the fundamentals of education. For high schoolers, there are Career Academies that let students get a jump on a chosen career path. The economy in Pinellas County is solid, with the unemployment rate well below the national average, and the neighborhoods are stable – 43% of those living in East Lake were living in the same house five years ago.

If living in East Lake sounds appealing, there’s more good news. The recent shifts in the real estate market on the Gulf Coast have brought real estate prices down slightly in and around East Lake. And, there are many choices as well because inventory is at an all time high. Buying a new home in East Lake is surprisingly affordable – but it won’t stay that way long. If you’re looking for an upscale lifestyle or a home on fresh water at affordable prices and you want to be choosey, the time to buy is now.

By: Robert Lipply

Ever wondered what the tile in the powder room of a $15,000,000 Los Angeles mansion looks like? How about the movie theater(s). Did you imagine that a home with 12 bathrooms really exists? Now you can see them. Dozens of them. And not only in L.A., but in more and more cities by the day.

Cruising dream homes via virtual home tours is gaining in popularity as the quality improves. Virtual home tours are trading up from the old low-rent fish-eye panoramas to images that are a pleasure to view. Factors driving the beautiful new views include:

Professional photography

These are not images taken by real estate agents pressed for time. The photographic images here are rich, properly exposed, well-composed. Some photographers even bill themselves as artistes on a (reaching) level with the architects and designers who made the homes. You may think that’s a stretch, but – each medium has its artistry – view a few of the virtual home tours you’ll find at home tour galleries on the internet, and you may find yourself entranced.

Better design

Virtual home tour designers themselves are getting better. Navigation is more intuitive. In most designs, thumbnails ride above a central viewer. Panoramic views are common – and much clearer and better lit than the panoramics of just a few months ago.

Much competition among home tour companies

Literally dozens of home tour companies are battling in a market free-for-all right now. Those who are winning in any given local market may not even appear in other local markets, so the battle is ongoing, exciting, and has yet to reveal clear national winners and losers. Some of the most interesting home tour galleries to click through are not associated with any virtual home tour production company. The best tour galleries are simply gallery sites with slideshows or links to the best luxury home tours on the internet. Viewers find it convenient and eclectic (the gallery is not limited to just one tour company).

By: David Wimberley

The crumbling of the sub-prime market has had far reaching effects on the economy. We have all seen how housing prices have declined, down payment requirements have increased, and mortgage underwriting has grown more stringent. Nowhere is this more evident than in the millions of non-residents and foreign nationals seeking to purchase a home in Texas, or anywhere in the United States.

Up until late last year, there were a number of banks that catered to this community of non-citizens who simply didn’t have the right visa to meet the qualifications for traditional mortgage financing. Today, mortgage loans for non-citizens are far more difficult to find. Few banks offer them and there is no single source a borrower can seek in order to find a lender that does offer such a program. This group of disadvantaged buyers includes investors, seasonal workers, and full-time workers that are often in a better position to borrow than many citizens who are first time home buyers if they could only secure financing.

To be fair, many non-citizens are able to purchase real estate using traditional FHA, FNMA and FHLMC conforming mortgage loans. Though the requirements vary from lender to lender, eligible borrowers typically include Permanent Resident Aliens (i.e. green card holders) and certain Non-Permanent Resident Aliens with approved visa classifications, such as diplomats, government and international organization workers, professional employees whose company’s main office is outside the U.S., and workers operating under a trade treaty. In most cases, spouses and dependents of these visa classes will also meet these qualifications. Nevertheless, there is still a large segment of the non-permanent resident population that falls through the cracks.

There is some relief for non-permanent resident aliens. A few programs are available that offer home mortgage loans to these borrowers under certain conditions. Most often, the borrower must hold a valid IRS Individual Taxpayer Identification Number (ITIN), or an ITIN Letter, along with a valid government-issued photo ID which might include their passport, visa, or matricula card. In addition, the borrower must have filed federal income tax returns for at least two years and be able to demonstrate consistent earnings and acceptable creditworthiness. Credit may be in the form of non-traditional credit or even a credit report from their native country where credit was established.

The rates, terms, and down payment requirements are significantly different from traditional government guaranteed programs like FHA and VA home mortgage programs. First, a non-permanent resident should expect to contribute a much larger down payment, often 30% or more. Second, fixed rates are very difficult to secure, so the borrower should expect a 3/1 or 5/1 adjustable rate mortgage with a higher initial rate. Often, by the time of the first rate adjustment, these borrowers are in a much better position to secure traditional mortgage financing at more competitive rates. Potential borrowers should check with a local mortgage lender that offers these products for additional requirements, rates, and terms.

Ultimately, immigrant residents of Texas and across the United States can find home mortgage loans if they look in the right places and demonstrate the stability, creditworthiness, income, and equity that any lender is looking for in a borrower.

By: Mike Lesmeister

Working and living in Austin seems to be catching on as more and more businesses open up offices in downtown Austin. Who can blame them? Downtown Austin is thriving with entrepreneurial spirit, and within a 1 mile radius of this diverse, energetic environment are over 420 nightclubs, retail shops, and restaurants. For many companies having a downtown office address is key to employee recruitment and retainment. Because of Austin’s downtown amenities and vibrance, office space lease and vacancy rates have remained relatively constant with lease rates averaging $30-$31 and vacancy rates averaging 10% to 12% over the last few years.

Downtown Austin has over 100,000 employees within a 1 mile radius of 6thand Congress and over 60,000 employees at its core. Known for being the hub of some of the largest employers such as The University of Texas System, The Capital, Whole Foods, Travis County, and The City of Austin, there are 1000′s of other small to medium sized businesses taking advantage of Austin’s downtown energy. Known historically for its education, law, and government sectors, It is now being recognized for industries such as financial services, retail, real estate, and technology and software companies.

Government officials have a goal having 25,000 residential residents in the Downtown area by 2015 which has prompted an increase in the number of residential condos such as the W Austin Hotel, Four Seasons Hotel Austin, Austin 360 Condominiums, etc. With the presence of Lady Bird Lake and other outdoor activities, the popular live music scene such as SXSW, and many other local attractions Downtown Austin has something for everyone.

By: Nathan K. Smith

Whether you choose to peruse the internet or go personally visit a real estate agent or a bank officer, Austin foreclosure listings can be found for free. Look at county records that are public information and talk to title search companies who should know of foreclosure lists in Austin.

Free foreclosure listings and web sites. This web site, reads that it has free listings of Austin foreclosed property. It will have several options for you to select from, one of them being ‘Free Foreclosure List’. A click on this tab of the screen will take you to several web sites that offer free listings. Choose one and follow it; if it doesn’t work out to suit you, try another web site link until you find one that is of the most interest to you.

Realtor web sites for Austin can be very beneficial in your search for Austin foreclosure listings. Here, you will find photos and basic information about a property, but to find specific details, you will need to register just by entering your contact information into their system.

You can find free bank-foreclosed listings for Austin at several bank foreclosure web sites. In your search request, you can specify property type, number of bedrooms and baths, whether you would like your foreclosure listing to have a deck, pool, fireplace, hot tub, and/or recreation room. You are asked to specify a price range and a timeframe when you might consider moving if a potential property was found that met your specifications. The next screen will take you to a page where you must fill in your contact information before the free listings applying to your request will be supplied to you.

Austin realtors are a great source for free listings of Austin foreclosed properties. Real estate agents are some of the most knowledgeable people you can talk to regarding your plans for purchasing a foreclosed home in the Austin area. The agents will most likely have a history with the foreclosed properties and, thus, will have detailed information that can help you in making a decision.

A variety of methods are available for finding free Austin foreclosure listings. Opt for the method that is going to work best for you. You can also take advantage of the free trial offers from companies listed on the internet.

By: Sam Dunbar

Before even starting to look for a suitable San Antonio home builder, a prospective home owner needs to consider a list of what they want and need in their new home and they need to highlight the most important factors. They need to decide what they must have, and what can be labeled as a luxury item. First thing to consider is if San Antonio is the right city. Below is a little background information about San Antonio; the information was gathered from Wikipedia.

San Antonio is the 2nd largest city in Texas and the 7th largest in the U.S. The city is located in South Texas, and is considered the cultural gateway of the American Southwest. San Antonio is the fourth quickest growing city in the U.S. and had an estimated population of nearly 1.3 million people in 2006. The city has several major institutions, including Lackland and Randolph Air Force Bases, as well as Camp Stanley and Camp Bullis military stations. It is also home to the famous South Texas Medical Center.

Historic highlights include the world-famous site of the Alamo, the River walk; theme parks in San Antonio include Six Flags and SeaWorld. In addition, there are well known major attractions such as the Marion Koogler McNay Art Museum and sporting giants like the San Antonio Spurs.

If a home buyer decides that San Antonio is in fact the place to buy a new home, here are some more things they may want to think about. As the old saying goes, what are the three most important items when looking for a place to live? Location, location, location, deciding on a suitable area to live in is easily the most important part of a home buyer’s decision making process. When considering a good location, home buyer’s often relate it to facilities such as commercial centers, friends, school, work and family. The distance to work may be the most important factor since it’s a daily commitment.

The cost of a new home depends on the area and neighborhood that it’s in. A home buyer also needs to consider the rate of property tax in certain areas. Careful inquiries into important factors such as the possibility of flooding in the area, possible changes in land use and future infrastructure improvements will prove beneficial. Other potential concerns may include traffic and aircraft noise.

The next item on a home buyer’s list should be the type of home, and the size of the lot. A single family home on its own lot usually provides considerably more living space and outside area than other popular home-types like condominiums. In addition, single family homes usually have fewer restrictions on factors such as minor exterior changes and structural changes like patio additions.

Older homes are also a good option to look into. They typically are located within established communities and are surrounded by a more complete infrastructure. There are however, some disadvantages to consider such as maintenance and outdated floor plans.

Once a home buyer narrows down a solid list and figures out where they want to live, what they can afford and whether they want a new home or resale home, time needs to be spent on deciding on home options and features. The final decision is to make the selection from one of the many San Antonio home builders or narrowing down to a specific resale home and area.

By: Jayson Gibson

Cypress, Texas is located in Northwest Harris County; near the Highway 290 and the Spring-Cypress intersection. Cypress? actually rests on both the North and South side of Highway 290. This Highway and Highway 249 are the main thoroughfares in the area. The area South of Highway 290 is marked by wide open terrain; while the North section is thoroughly wooded with heavy brush. Downtown Houston is only around 20 miles Southeast of Cypress. One can certainly see how the popularity of the area has increased as the traffic along Highway 290 is bumper to bumper during rush hour.

Cypress has been largely transformed into a large residential development; as many home developers have constructed thousands of homes to meet the demands of the growth of the population in the area. The Berry Center is a product of the popularity and growth of the area. The Richard E. Berry Education Support Center is a new state-of-the-art multi-purpose facility located in the Houston suburb of Cypress, Harris County, Texas. The facility features an 11,000 seat outdoor stadium, an 8,328 seat arena, a 16,100 square foot conference center and a 456 theater and all the amenities to make it a point of pride for everyone in Cypress Fairbanks Independent School District.

The Real Estate Market is extremely active as evidenced by the amount of builders and developers constructing homes in the area. Cypress has turned into a highly desired suburb community. In fact; Cypress has several master planned communities. These communities include recreational amenities; including lakes, golf course, parks with bike paths, and jogging trails. Apartments in Cypress Texas are also seeing a construction boom as new apartment communities are being constructed to meet the demands of the population. These northwest Houston apartments in Cypress, TX contain many high end amenities renters are being accustomed to. These include stained concrete flooring,? resort style pools, and more. Cypress is a great place that you may want to call home.

By: Andrew Reichek

While many homeowners turn to a real estate agent when selling their property, not very many home buyers turn to a buyer’s agent when purchasing real estate. It’s very surprising that buyers try to “go it alone” when making a purchase that will affect their finances and their lifestyle for years to come. The average person spends around 1/3 of their income on their home, so any mistakes made when buying a home can add up to huge losses. A good buyer’s agent is a professional with the insight into the market that every buyer needs. A qualified agent offers:

1) Full Access to the MLS

Only realtors can fully access a powerful tool known as The Multiple Listing Service (MLS), which lists approximately 99% of homes for sale within a given market. The MLS is a comprehensive list of all homes that have been listed by realtors, and a buyer’s agent has access to this resource. An experienced buyer’s agent can use the MLS to find homes that meet your specific parameters.

2) Big Savings of Time

It can take months or even longer to research neighborhoods, building plans, architectural details, and the real estate market. A good buyer’s agent can not only do all the research for you – he or she can also help you translate your lifestyle needs into a home purchase. Simply tell a buyer’s agent what you are looking for and he or she will do all the work in finding you a list of homes that match what you are looking for. A buyer’s agent has helped many buyers in your position and with his or her help, you can spend your time looking at homes that meet your wants and needs.

3) Representation

Real estate agents hired by home sellers enter into legally binding agreements that require them to act in the best interest of the seller at all times. A buyer’s agent, on the other hand, will use their expertise to act in your best interests. Your agent can coach you through every step of the buying process. If the seller has professional help, shouldn’t you?

4) Negotiating Power

A Buyer’s Agent will run a Comparative Market Analysis (CMA) to establish the Fair Market Value (FMV) on a property. This not only helps to ensure that you will not end paying more than a home is worth, but it also means that a buyer’s agent can professionally negotiate price on your behalf.

5) Experience

The average homebuyer will purchase just 3-5 homes in their lifetime. A good buyer’s agent will help in buying that many homes per month. An agent simply has the experience most buyers do not.

6) Industry Contacts

A good buyer’s agent has access to a quality closing team that may consist of an inspector, listing agent, loan officer, appraiser, insurance agent, general contractors, and others. By working with this team, your buyer’s agent can help ensure that your home purchase is as hassle-free and as positive as possible.

7) Peace of Mind

A buyer’s agent acts as a second, professional opinion on one of the largest decisions of your life. By working with a professional, you can rest assured that you are making the right decisions for you. Working with an expert, you know that you can avoid some of the common pitfalls that can affect home buyers.

Buying a home can be exciting and fun. However, no matter what sort of real estate transaction you are interested in making, a buyer’s agent is a must. A real estate professional who specializes in working with buyers can help you avoid costly mistakes and can help you feel more comfortable as you make your decisions.

By: Eric Bramlett

How much real estate math do you need to know if you are investing in real estate? There are computers and calculators for calculating interest rates or amortizing loans. What you need to know is a few simple formulas for determining if a property is a good investment or not.

The Real Estate Math You Don’t Need

The gross rent multiplier is one formula you don’t need. I bring it up because people are sometimes still using it, and there are better ways to estimate value. A gross rent multiplier is a crude way to put a value on a property. You decide that properties are worth 10 times annual rent or less, for example, and simply multiply the gross annual rent a building collects by ten to get your value.

There are obvious problems with this formula. You need to constantly change it to reflect interest rates, because a property might be profitable at 12 times rent when interest rates are low, but a money loser at eight times rent if the financing is expensive. Also, there are just plain different expenses for different properties, especially when some include utilities in the rent, for example. Gross rent doesn’t say much about the factor that makes a property valuable: the net income.

Real Estate Math You Need

Rental properties are bought for the income they produce, so this is what your real estate valuation should be based on. That is why your real estate math education needs to start with the how to use a capitalization rate, or “cap rate” to determine value. A cap rate is the rate of return expected by investors in a given area, or the rate of return on a property at a given price.

An example might make this clear. Take the gross income of a property and subtract all expenses, but not the loan payments. If the gross income is $76,000 per year, and the expenses are $32,000, you have net income before debt-service of $44,000. Now, to arrive at an estimate of value, you simply apply the capitalization rate to this figure.

If the normal capitalization rate is .10 (ask a real estate professional what is normal in your area), meaning investors expect a 10% return on the value of their investment, you would divide the net income of $44,000 by .10. You get $440,000 – the estimated value of the building. If the common rate is .08, meaning investors in the area expect only an 8% return, the value would be $550,000.

Simple Real Estate Math

Estimated value equals net income before debt-service divided by cap rate – this really is simple real estate math, but the tough part is getting accurate income figures. Is the seller is showing you ALL the normal expenses, and not exaggerating income? If he stopped repairing things for a year, and is showing “projected” rents, instead of actual rents collected, the income figure could be $15,000 too high. That would mean you would estimate the value at $187,000 more (.08 cap rate).

Besides verifying the figures, smart investors sometimes separate out income from vending machines and laundry machines. Suppose these sources provide $6,000 of the income. That would add $75,000 to the appraised value (.08 cap rate). Instead, you can do the appraisal without this income included, then add back the replacement cost of the machines (probably much less than $75,000).

No real estate formula is perfect, and all are only as good as the figures you plug into them. Used carefully, though, real estate appraisal using capitalization rates is the most accurate method for estimating the value of income properties. For putting a value on a single family home, you need another approach. Yes this means more real estate math to learn, but we’ll save that for another time.

By: Steven Gillman