Dress up the Front Yard for Curb Appeal

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Curb appeal plays a big part in how others look at your home and also in how you look at your home. Driving up to a beautiful home increases the home's value both financially and emotionally. When you have a nice looking home, you take a little more pride in the house and it offers you and your family beautiful surroundings to enjoy together.

Caring for the Yard

When it comes to curb appeal, the first time that you want to work on is the yard. Keeping up with yard maintenance makes it easy to have a nice looking yard. The better you keep up with maintenance, the less that you will have to do each week when it comes to the yard.

 If you have grass, make sure to keep the grass green. There are fertilizers that you can put down to make the grass grow thicker and more attractive. Watering grass every few days is an absolute necessity in the Texas heat. Keep the grass properly watered and place down fertilizer for a yard that will make your neighbors green with envy.

Plant Trees

A tree is a great way to beat the heat in the hot College Station, Texas sun. If you do not have one, plant a tree in the front yard. Trees can be purchased from flower nurseries as well as some home improvement stores. Remember to cut branch as necessary to keep your tree properly pruned.

Use Rock Art

Some homeowners may feel that it is difficult to keep plants and flowers alive under the blazing southwestern sun. One way to avoid having to try to keep plants alive but still have a well decorated yard is to create a rock garden and rock decorations. Line the sidewalk to your front door with beautiful stones. In the space designated for a garden, create a pretty sitting area with beautiful surrounding stones.   

Featured Homes for Sale in Bryan,Texas

I am a seasoned realtor in College Station, TX affiliated with RE/MAX Bryan-College Station. I offer a one-stop source for real estate services and information about Bryan-College Station Real Estate. Please visit my website for a complete list of real properties for sale in Bryan College Station - you just might find the home you have been dreaming of! Or Call today (979) 255-7010.

Coinciding Settlements Clauses - Moving Issues

People who are selling their home in order to buy another frequently put a "coinciding settlements" clause into their contract offer on the new home. One reason for doing this is so they can move from one home to the other at the same time.

Coinciding Moving Day?

One reason people want coinciding settlements is so they can move out of one house and into the other the same day. Sometimes this works out. Sometimes not. If it doesn't work out, don't freak out. 

For example, if the house you're buying is a new one, it may not be completed and have an occupancy permit by the date specified. Are you going to risk losing the sale of your old home by insisting that settlement be delayed? Not if you're smart and you really want to make this change. You might explore delaying settlement, or the option of a "lease back" period. If those ideas don't fly, it's time to cope.

Depending on your budget and the length of time between moving out of your old home and moving into your new one, you could:

1) Have the moving company store your furniture and household goods, or

2) Rent a "smart box," pack your household items into it, and leave it parked in front of your old home, or park it in front of your new one (depending on who grants permission), or

3) Store your things in the basement or garage of your new home (with permission), or

4) Rent a storage unit by the month, or

5) Store your things in the basement or garage of a relative or friend, AND

A) Stay in a hotel or motel for a few nights, or

B) Stay in an extended-stay hotel or motel suite, or

C) Stay with family or friends, or

D) Go camping, or

E) Some combination of the above.

The point is to act like a mature adult. Be flexible. You're making a big change. The chances it'll go off without a hitch are slim. Keep things in perspective. Practice creative problem solving. You'll be proud of yourself and have a smile on your face when moving day comes.

 Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

 

How To Make Money In A Real Estate Recession

There are a lot of ways to make money in a residential real estate recession.  There really has never been a better time to buy than right now.  The interest rates are at rock bottom and so are the prices of homes.  There are more foreclosures on the market than ever before, which gives you an opportunity to make a killing when it comes to a long term real estate investment. 

Because the market is now a buyers market and there are many more homes for sale than there are buyers, it is smart to look at real estate investment in this recession as a long term investment.  This means that the idea of buying the home, fixing it up and selling it for a profit is over for now.  For now.  The real estate market is just like any other market and has its ups and downs.  Right now, it is experiencing a downslide.  It will rebound. 

The way to make money now in the real estate market is to either buy partial construction homes or dirt cheap foreclosures and rent them out to tenants.  Real estate is a unique investment.  It is unlike other investments that are usually on paper.  Real estate is something that you can actually use. Not only that, it is something that we actually need.  Everyone needs a place to live.  You can capitalize on that by purchasing dirt cheap foreclosures, fixing them up a bit and renting them out to tenants.  

We were once considered a nation of renters.  Until WWII, most people rented property instead of owned a home.  Mortgages were pretty tough to get and required 50 percent deposit.  Today, mortgages are easy t get and we have become a nation of homeowners.  Although the tide is turning and many people are finding that they bit off a bit more than they could chew when times were good.  Now that the real estate recession threatens the entire economy of the United States, many people are finding themselves out of work and unable to afford payments on their homes.  This is one of the reasons for all the foreclosures. 

You can grab foreclosure properties easier than ever before.  You will need to do your homework and make sure that the property is in a good area where the home prices are stable.  You will also need to have proof that you can purchase the property for the amount that you bid. This will include a pre approval letter from a lender as well as a certified check for the amount of the down payment.  If you are planning on paying cash for the property, you need to show proof that you have the funds available.  

You can get a pretty good deal when you buy a foreclosure.  You will have to wait for a decision as banks and lenders do not have the incentive to act as quickly as individual homeowners, but if you do manage to be able to purchase a foreclosure, you will be surprised at the bargain that you get.  Buying a foreclosure and either living in the property or renting it to a tenant is one of a few ways to make money in a real estate recession.

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have

What Happens In A Real Estate Recession

The residential real estate market is in a recession.  Arguably, it can also be called a depression.  The market has hit rock bottom.  There are many more homes on the market than there are buyers.  People are panicking and not making any investments because of the economy.  This will trickle down into every aspect of the economy until the entire nation is in a full blow recession. 

Real estate investors who were really raking in the money during the high times are now seeing the market at rock bottom.  Many real estate investors have given up real estate investing and have turned to other investments.  However, there has actually never been a better time to invest in real estate than right now, for two reasons.

The first reason is that a real estate recession causes homes to plummet in value.  They will rise again, but it will take a few years.  In the meantime, a smart investor who is looking for a long term investment, can purchase real estate and either rent it out to other individuals who need a place to live or live in the property.  If the property is vacant land, it can just be left alone.  There is much more real estate for sale than there are buyers.  This means the prices are lower than if there were more buyers than homes.  Take advantage of this fact and buy something. 

The second reason why this is such a great time to purchase real estate is because of the low interest rates.  The interest rates for mortgages have never been lower than they are right now.  And because people are not buying homes and have pretty much saturated the refinance market, lenders are desperate to make loans.  If lenders cannot make home loans, they go out of business, plain and simple.  They are willing to make a lot of deals that they were not willing to make 20 years ago.  Even people with less than stellar credit can get home loans, so if you think your poor credit is going to stop you from getting a home, think again. 

Smart investors are thinking of this market as a reason to buy.  Real estate is a tangible asset and something that everyone needs.  We all need shelter.  If you do not want to live in the home yourself, you can rent the property to other individuals.  If you choose to rent to tenants, you might want to institute a rent to own policy in which part of the rent the tenant pays you goes towards the down payment of the property when the tenant is able to purchase the home.  There is a time limit on this and this gives a tenant more of an incentive to pay their rent on time as well as take care of the property.

If you are looking for a home in which to live, this is a great time to buy.  You can get a lot more bang for your buck, especially in upscale neighborhoods that were hit hard by the recession.  And because the interest rates are so low, you will be surprised at how much you are able to afford.  A real estate recession is tough, but this is a good time for smart investors to buy low and wait out their investment for the long term.

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

What To Look For In Real Estate Investment Today

You have probably already figured out that the real estate market is in a little bit more than a slump.  Some call it a recession while others call it a full fledged real estate depression.  Housing starts are lower than they have been since the early 1970s and foreclosures are at an all time high.  There are many more sellers than buyers and housing prices in some areas has actually plummeted. 

There are some people who purchased their homes at the height of the boom when everything climbing sky high that actually owe more on their homes than the value of their home.  Because of this, many people have opted for foreclosure rather than pay for something that is not worth the money at the current time.  The crash in the real estate market is not new.  In the 1970s, it was also a very bad market for quite a few years and many people, especially those in the trades, were out of work.

The difference between then and now, however, is the interest rates.  Back in the 1970s, the interest rates for home mortgages were at 18 percent.  People not only could not afford to buy homes because of the bad economy, but also because  of the fact that the rates were so high.  In  the early 1980s,  when the interest rates dropped to 12 percent, people went wild.  New housing was booming as was everything else.  If someone put their home up on the market at noon, they would have it sold by 4 p.m.  It was a sellers market through and through and remained that way for a few years.  A lot of people made money on real estate investing during those times, especially new home builders. 

The real estate market is always fluctuating, just like the stock market.  You should not be frightened to own real estate.  To the contrary, you should be frightened not to own real estate.  Real estate is not only a solid long term investment that usually always pays off big, but also something that you actually need.  As you need a place to live, it is better to pay your own mortgage than that of someone else. 

If you are looking for real estate investments today, look for foreclosures.  Better yet, look for short sales that have not yet reached foreclosure.  In a short sale, you can save the owner from going into foreclosure and usually pick the property up for a lot less money than it is worth.  You can offer low and even offer to allow the seller to stay in the home, for rent, for a while longer so that they can get their bearings. 

You can find short sales by looking on the docket of the county clerk court list.  A judge has to issue an eviction notice in order for a foreclosure to commence.  This means the bank has already gone through the court system.  You can find this information out at the county courthouse.  Anything that goes through the court is public record.  The judge issues an order for the sheriff to serve eviction papers through the court system. 

Another way to find out about foreclosures is to contact banks and mortgage lenders for foreclosure listings.  You will only find out about already foreclosed upon property.  You can also put an ad in the paper stating that you are looking for people going into foreclosure and work with them in this manner.  The short sale is one of  the things you should look for when investing in the real estate market today.  

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

Rental Properties: 10 Ways To Increase Income

What if you want better cash flow from your rental properties? You can't just raise the rents arbitrarily. If tenants leave, income goes down, not up. There are other ways, though, including the ones listed below. 

 1. Install coin-operated washing machines. Even if you don't have the money to do this yourself, you can find a company that will do it for you, and share the income with you. 

 2. Rent extra parking space. When I got tired of a renter's extra car, I just started charging a weekly fee. Then I didn't mind so much. 

 3. Raise the rent. Okay, we did dismiss ARBITRARY rent hikes as a cash-flow solution, but check on the rates for similar units. Are you renting at below-market rates? 

 4. Rent storage sheds. Especially if your apartments are small, your renters may need a place to store their things. Don't let them spend their money elsewhere. Put a few sheds on the property. 

 5. Enforce late fees. It is perfectly fair to have a fee for late payment of rent, and guess what? Those who are chronically late usually don't even mind - they just don't look at these things the same way as others. 

 6. Offer improvements for rent increases. If it's worth $25 more monthly rent to a tenant, install that dishwasher. Even on a credit card you'll pay less than that per month for it. 

 7. Install vending machines. If your rental properties are large enough, others will do this for you for free, and give you a share of the income.

 8. Rent by the room. A four-bedroom house might make more money if you include all the utilities and rent by the bedroom. This has made a lot of fortunes for investors in college towns. It does mean a lot of management, however. 

 9. Rent-to-own sale. Usually there's a non-refundable deposit, and higher than market rents in these deals. When renters change their minds, as they often do, you got the deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get the better cash flow as you repeat the process. 

 10. Reduce expenses. Every dollar of expense you cut goes straight to the bottom line. List every expense of your rental properties, and look at them one at a time. How can you reduce them?

 Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

Rent To Own Is The Win-Win Scenario

If you are a renter who is tired of paying someone else's mortgage and want to own your own home, there are many ways to buy a real estate; one of them is Rent to own (RTO) option, a means of acquiring ownership over time without taking on debt. The renter agrees to lease the home for a pre-determined time usually from one to three years. There may be an up-front consideration fee. The seller allows the buyer to lock in a monthly price for the property till it is paid off. This is a way to settle on something that is right for you even if you are not in the position to make an immediate purchase. A lease purchase can make your rent money work for you instead of making your landlord rich. 

Similar to a rent to own for a TV you can have a rent to own for a piece of real estate. In this case most sellers that are willing to do this (and there is not many) will want a non refundable deposit on the property, then you pay the landlord rent until you can purchase the property. This is similar to a lease option as well, except all you pay is rent. The deposit is much less than an option and you do not pay the taxes or the mortgage, since you are still a renter. The benefit of doing this is you get into your home with the intention of buying the house at a later date. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run. 

This type of agreement works well with those who are new to the housing market or have made a job transition. It also is positive for anyone who needs to strengthen his/her credit or pay off an obligation to qualify for a home purchase. Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-50%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. The best part about this is that with a rent to own home, you get to live in the home you want to buy while you work on fixing your credit up. 

The biggest drawback to this is quite often the agreed upon price is a future price of the home. If you have a house that is valued at $350,000, a rent to own price would look closer to $370,000. That might seem like a rip off, but a lot cheaper than a rent to own with a TV where you would pay 2-3 times the price of the TV over a 5-year period. 

This creative process of how to buy a rent to own house is becoming more and more popular because it creates a "Win - Win" scenario. The Buyer is able to get into a home with limited money and credit, and the Seller is able to get a fair price for their home and get it sold more quickly.

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

5 Things You Should Know Before You Flip A Property

1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was too high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and add about 5 $6,000. Now, cost is at $147,000, and that is if everything goes as planned. Profit is under 10,000 dollars. The mistake was made at the purchase at the home, not the sell.  

2. Get an inspection on the home - Get a complete inspection done on your property. By, spending a few hundred dollars on this expense you can save thousands in problems that you cannot see. Foundation, Pest, Wood Rot, Etc... By, getting a full inspection you can rest assured that you know everything that is wrong with the property before it’s too late. In the contact for the house you need to make sure that you have 7 days to have an inspection preformed, and if the inspection finds problems that are going to cost more money that you are willing to spend you can get out of the contract with no penalties. 

3. Don't do the work yourself: - Get a contractor or several sub-contractors and have the work done quickly. You need to have you house flipped ASAP, so that you can get it on the market and get it sold. When I started flipping my brother and me did a house together, and we did all the construction. I had a construction background and figured it would save thousands, but it took us over 4 months to get the work done that a contractor could have had the work done in a month. But, we trying to save money on our flip did all the work on our time off and after work, and it just took too long. On our 2'nd flip we used contractors for almost everything and had the house completely flipped with a new roof, new air conditioning, new hardwood, and much more in only 3 weeks. We did not have to spend all our time working on the property and were able to spend that time looking for the next deal. This is how you get rich in real estate. 

4. Place the property 1 to 2 percent below market value: If you are wanting to flip real estate and make money the object is to buy and sell the property as quickly as possible, so that you can move on to the next house.  If you purchase a house and try to sell it at top dollar to make and extra couple of thousand dollars on your flip, and end up holding it for 6 months you are losing money.  Get the house on the market at a price that is going to blow the competition away, and you will sell it no matter what the market conditions. On our second house the market for selling house went down due to the housing market as a whole, and the tightening of the loans across America.  We were told that you could not sell a property in this market, but we went ahead anyway and flipped our house. After 3 weeks on the market we had 3 people wanting to buy the house. Why, because we offered it at such a great deal that people wanted to jump on it. That is what you have to do especially if the market is slow. 

5. Use a real estate agent - Do not try to sell your house on your own. Harness the power of a real estate agent and the power of the MLS system. When you do a FSBO you are depending on people driving by your house and seeing you sign, with a real estate agent you have someone actively marketing you house to get it sold. Once again this will free up more time for you to look for more great deals. If you want to help the process I have found that craigslist and listing you house in Google ad words help to, but I use these tools with the help of an agent to make sure I have all my bases covered. 

I hope this article has been helpful with the basics needs of flipping a house. If you will study and learn you will make money. But, do your homework before you purchase a house, and make sure that you can pull a profit on your deal. Then, make it happen!

 Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

4 Steps To Real Estate Investing Success!

Real estate investing is always good and sometimes it's red hot. When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education. 

It's startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the "sizzle" and make profiting from real estate sound easy. The truth is that it's simple, but not easy. 

Here's a quick plan that will enable anyone to begin building financial independence. 

There are basically four steps to investing in single family homes: 

1. Buy homes below full market value. Yes, people really do sell homes for less than the home's full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price. 

The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit. 

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer. 

2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales. 

You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won't walk door to door for three or four hours per week. OK, there are other ways. 

You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they've received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site. 

You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact. 

3. After you've found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller. 

The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start. 

No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars. 

4. You make your profit when you buy! Never make a purchase until you've carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy. 

 

There you have four steps that even a part-time investor can execute in three to four hours per week. What's the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.

 Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

Best House Color to Sell

Love at first sight is a concept that applies to the real estate market. So, what is the best house color to sell your home to a love struck buyer?

Best House Color to Sell

When you go to social events, do you make an effort to snazzy yourself up? Of course you do. The simply fact is attraction is a key factor in forming relationships and the same applies to your house. When you put the house on the market, you need to make it look good for the dates with potential buyers. The color of your house can make all the difference. 

First, there is no absolutely correct answer to the best color. Instead, the decision depends on the makeup of your home and the surrounding landscape. Let’s take a look at some issues:

1. Whatever color you choose, make sure it doesn’t clash with the other homes in the neighborhood. An otherwise appropriate color could end up making your house an eye-sore. 

2. The Roof. What color is the roof on your home? If it is a red tile roof, off-whites are probably going to be the best choice. Dark green will not. Unless you are going to invest money in a new roof, make sure the paint color doesn’t clash with it. 

3. Highlights. If there is a particular part of your house that should be emphasized, used light colored paint around it to draw attention. 

4. Hide It! Conversely, if there are parts of the house that are mundane, use darker colors to draw attention away from them. 

5. On large flat surfaces, such as the side of a garage, keep in mind the color you choose will have a washed out appearance. 

Now we get to the fun part. After considering the above issues, make a preliminary list of colors and buy small cans of each color. In a private area of the house, start applying samples strokes a couple feet long and a foot or so wide. Try to paint examples in both shaded areas and those exposed to the sun. 

Do not immediately judge the results of your experiments. Instead, wait a few hours for the paint to dry and then start comparing. Dry paint takes on a very different appearance than wet paint. 

Once the paint is dry, take a long look at each sample. You will typically find the colors look much different than you thought they would. You may find one color is perfect or you may find something a little different would be best. Either way, you’ll have come up with the best house color to sell your home.

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

Banks Profit Big Killing Real Estate Values

Everyone is aware now of the slow housing market and the fact that many people are losing their homes.  There is, however, another segment of the housing market that is seldom spoken of, but which is also being hard-hit by the current situation.  And the banks - who started the whole "tumble" - and who "profited greatly" in creating the "tumble" - are still profiting BIG !

First, let's talk about the homeowner.  In the 1990's, banks developed a GOLDMINE in the housing industry...the equity loan.  They began a huge marketing program to encourage people to take their money (savings) out of their homes and spend it.  They touted that the homeowner could "use the money for anything you want - a vacation, home improvements, college tuition, new car, whatever".  The banks then proceeded to appraise the home over the home's actual value and loan people equity up to 125% of the home's value.  This meant that people would no longer have any savings in their home - they would owe the whole value of the home at that time.  Anyone who didn't take out the money and spend it, was considered foolish - to have credit cards or pay interest on anything else, when they had money available in their home that they could pull out. People used their homes like an ATM.  Anytime the bills got too big, they just refinanced and took cash out or borrowed on an equity loan. Who made the most with interest and fees? The banks.

Who made the most money on these loans?  Yes, the banks. The homeowners didn't care about the fees the banks charged or the closing costs. The only thing they looked at was the big fat amount of money they could pull out and spend - as if it were the lottery. Who profited big? The banks.

As times were good and home values steadily increased, another segment of the housing market developed.  In times of affluence, ordinary people became investors, buying homes and condos to offer as rental property.  This is an intelligent way to save money on taxes and serve those who cannot afford to buy their own home, by providing a nice place to live for a reasonable monthly rent.  The other advantage, of course, was the appreciation on the property and having someone else help you pay the mortgage on the loan. The problem, however, was that much of the money they used to invest, came from home equity loans that they had taken out on their primary residences. The banks made this easier by providing "second mortgages", with high fees of course, and added prepayment fees and penalties to ensure they made a high profit, regardless of the life of the loan and with second mortgages, you could buy a 2nd or 3rd or 4th house or condo with very little down. But when the market values slipped and the appreciation never came, people lost money on the rentals and it resulted in losing on their personal residences also, because of the home equity loans we talked about above.   The only ones still guaranteed to make money? The banks.

Now, that people have spent all of their savings in their homes and they owe more than the home could be sold for, many homeowners are letting the house go back to the bank...in foreclosure.  As many foreclosures as there are, it's still a small percentage of the total market.  Because it is such a small percentage, the banks can "dump" the houses for half of what would be the real value.  This further devalues the market price of the other homes that are for sale.  It's peanuts to the banks, but to the other homeowners out there that have to sell for one reason or another - it's devastating.

Worst part, when the crisis hit, the government instituted programs to bail out whom?  The banks !

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

 

 

Bankruptcy And Buying A House - Is It Smart To Buy A House After Bankruptcy?

Each year, millions of people file bankruptcy as a means of erasing their consumer debts. While this approach may relieve stress, a bankruptcy is damaging, and will hang over your head for the next ten years. Still, it is possible to overcome bankruptcy. The key is making smarter financial and credit decisions. With this said, some people choose to purchase a home after a bankruptcy. Here are a few pointers to consider when buying a home.

Reasons to Delay the Buying Process after Bankruptcy

If you consult with mortgage or financial experts, they will likely discourage you from buying a home following a bankruptcy. After your bankruptcy is discharged, there is a black cloud that looms over your credit report.

When any prospective lender reviews your report, they will be notified of your recent or past bankruptcy. In some instances, this justifies an immediate denial. On the other hand, there are lenders eager to help you establish or rebuild your credit. Thus, they will approve a loan request. Nonetheless, the penalties are steep.

Higher mortgage rates can be anticipated when purchasing a home after bankruptcy, especially if you have not established other credit accounts. Mortgage lenders consider two factors: credit scores and credit reports.

Although a bankruptcy appears on your credit report, having a high credit score will increase your odds of getting a comparable rate. Unfortunately, if you buy immediately following a bankruptcy, you will not have the opportunity to boost your score.

Reasons to Buy a Home after Bankruptcy

Lenders will approve mortgage loan applications one day following a discharge. Therefore, it is possible to get a home after a bankruptcy. Buying a home is perfect for rebuilding credit. Moreover, it is the quickest way to increase your credit score.

 

After a bankruptcy, the average person has a credit score below 600. Good credit consist of credit scores 650 and above. Maintaining current mortgage payments will gradually increase your score. After two years of regular payments, you will have established a good payment history. Hence, you may qualify for a low rate refinancing, which may lower your mortgage payments. 

 

Lisa Jonesis a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

 

 

Real Estate Terms – From Appraisals To Comps

When you’re selling your home or other real property on your own, you don’t have to know everything about the process. It does help to have a practical knowledge of the terms that come up during the process. 

Keep in mind, these aren’t intended as “be all, end all, penultimate” definitions.  They’re working definitions for pragmatic folks. Let’s go…

1) Acceptance - A legal term referring to the acceptance of a buyer’s offer by the seller. Acceptance is often preceded by a number of counter offers between the parties. 

2) Appraisal – a professional opinion of the value of real property.  Most jurisdictions have careful rules defining who may call themselves an appraiser, and most lenders have a “stable” of approved appraisers whom they use regularly.  Typically, the lender making the new mortgage loan will require that the property appraise for at least as much as the purchase price.  Occasionally, a buyer will require the same thing in an all cash transaction.

3) Bridge Loan – Short term loans used to “bridge” any time gap between the sale of a home and purchase of the next one. These loans can be valuable when escrow is delayed on the sale of a home and the seller has committed to the purchase of another home. Bridge loans are also known as “panic loans”, but can be a life saver. 

4) Coinciding Settlements – when a buyer needs the funds from the sale of his prior home (which is under contract to be sold) in order to purchase his next home, he may well make settlement under his sale a contingency for settling on the home he is purchasing.  In reality, the sales don’t usually coincide.  They usually take place back to back.  Funds from the first are often wire transferred to the second.   

5) Closing – Depending upon the state you live in, Closing can have different meanings. Generally, the closing of a real estate transaction refers to the exchange of necessary documents, execution of the same and transfer of money. 

6) Comps – This term refers to the sales prices of similar properties in the area of a house in question. Comps are used to help determine the fair market value of a property. 

7) Conditions – any conditions which must be met before the sale can be consummated.  Some typical conditions include things like the property’s appraising for the purchase price or more, the property’s being in good condition when a home inspection is done, the buyer’s loan being approved.

As you can image, there are many real estate terms for which you have a general understanding. In our next article, we continue with the terms starting with “Condominium.”

 

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

Real Estate Success

Real estate success? It happens by way of the many things you repeatedly do right, and it is your habits that ensure they get done. Here are some habits to develop for your real estate investing success.

Ask for people's names, and tell them yours. People are your most valuable resource in real estate investing. The more you know, the more likely you are to find good properties, or buyers for your good properties. Get to know the right people too. Start with a real estate agent that gets many listings of the type you are interested in. Wouldn't it be nice if he called you first?

Think numbers. Think people first, but know the relevant numbers. Ideally, when you look at a rental property, for example, you should be thinking about the income, the expenses, and the cap rate. You should be imagining how certain changes would allow you to raise the income, and what that would do to the value. Having a "feeling" about a property, and ignoring the numbers, gets investors into trouble.

Carry supplies. Always have at least business cards, pen and paper on you. You never know when you might see a property for sale, or hear about one. Mention that you invest in real estate, and sellers, buyers and other investors suddenly appear with information, opinions, and sometimes deals. Be ready.

Think risk reduction. Put those inspection, financing, and other contingency clauses in the offer, so you will get your deposit back when a deal falls through. Know your exit strategy before you buy. Find value by comparables, not "hunches." Buy properties through your corporation or LLC. Always look for ways to reduce the risks.

Real Estate Success Is Found In Action

Set action-oriented goals. Get in the habit of taking regular steps towards real estate success. Require yourself to look at a certain number of properties, and maybe even to write a certain number of offers each month. Set at least minimum goals for all sorts of little steps, like making five phone calls per week, checking online for new listings twice per week, and so on. Action creates momentum, and repeated action creates habits. Good habits lead to success.

Finally, learning more about investing from books, magazines and even tapes or CDs is a great idea. Just be sure to spend as much time doing something as reading about it. Some of us let our fascination and enjoyment of reading about investing get in the way of actually investing, and of our real estate success.

 

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

Real Estate Specialists: The Buyer's Agent

Never before has the role of specialists in the world of real estate been more important. With buyers and sellers requiring more services, the industry has seen an explosion of agents who specialize in either the representation of sellers or buyers. These specialist agents can provide a wealth of services and maintain a complete impartiality during the sales process as there is only one client to concern them. 

Historically the sales transaction and the concerns of the buyer were the purview of a single realtor. However, as the industry has progressed so have the needs of each party and so the specialist arose. Buyers have some very particular needs, and specifically the need to feel that their best interests are seen to. Listing agents are representatives of the home's owner and in that role they have a primary responsibility to that owner. How could they properly look after the needs of an interested buyer as well? 

So what is it that a buyer's agent does? Primarily the buyer's agent will begin with the location of suitable properties for their clients. This is usually based upon a list of requirements and desires that the client has communicated to the agent. They will then arrange viewings and recap their findings with their clients and assist in deciding upon a good candidate for an offer. This will be based on the wealth of community information that a buyer's agent commands. As specialists, they are experts on their given area which is critical in the education of clients on the areas that they are considering. Once a property is decided upon, the buyer's agent changes significantly, evolving into an overseer-negotiator role. They will typically coordinate the inspections and conduct the negotiations with the listing agent. This includes the execution of the buyers subjects and the closing of the actual contract. 

There is an art to representing a buyer. It is a role that has become ever more crucial in an industry where customer service is the single most important thing that an agent can offer. If you are in the market for a home then the buyer's agent is the friend that you need to make sure that you are given the service that you deserve.

 

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

Contingency Clauses

Just because you have a contract does not mean a real estate deal will always go through as expected.  There are many things to look out for when it comes to contingency clauses in contracts.  These were, at one time, called weasel clauses.  The reason for this was because a buyer or seller could weasel out of a deal because of one contingency or another. 

There are many contingency clauses in place now to protect both the buyer and the seller.  Here are some of the more common ones being used in the real estate market today. 

1)      Loan contingency.  If the buyer can not get funding in a certain amount of time he or she can back out of the deal.

2)      Sale of another home contingency.  The buyer has made an offer but it is contingent upon whether the home he now has will sell.  If it does not sell within a set time, the buyer is not held accountable for the purchase offer.

3)      Home inspection.  The sale is contingent on whether the property will pass the home inspection. The buyer has the right to inspect the home for any unforeseen damage which may not have been disclosed.

4)      Appraisal.  If the property does not meet the appraisal guidelines set forth by the lender, the buyer does not have to uphold his end of the purchase agreement.

5)      Lead based paint inspection.  When a home has been built prior to 1978, the buyer can have a lead base paint inspection.  If there is evidence of lead based paint, this lets the buyer out of the contract.  The house would be considered hazardous.

6)      Water inspection.  Many times the home is in a rural area where there is no access to city water. The supply is by a well. The well must be inspected.  If it does not pass a health inspection, the buyer does not have to buy the property.

7)      Wood boring insects.  A termite inspection is mandatory so there is no chance of hidden damage.  Although this is a problem which can easily be rectified, many buyers will not buy a home which has had evidence of termites.

8)      Hazardous material contingency.  This is similar to the lead paint inspection.  During the home inspection, the contractor may come into contact with black mold or asbestos.  Unless there is an agreement between the buyer and seller to have this taken care of the buyer can walk away from the deal.

9)      Owners association acceptance. In some condos and town houses, the buyer must qualify for the home owners association.  If they do not get accepted, they will be allowed to back out of the deal.

10)  Title report.  The title report will let the parties know about any liens, encumbrances, or easements on the property.  If these are not acceptable to the buyer, they can walk away and not be held accountable.  Something simple like the seller forgetting to mention the oil company holds the mineral rights to the property and can drill anywhere it wants, may make a buyer think twice about buying the property.

 These are just some of the many contingencies which can be listed in a purchase agreement.  It is up to the buyer and seller to work out as many of them as they can to seal the deal.  Sometimes this just does not happen.  Each party must then move on to the next house or buyer.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

 

 

The maze of real estate contracts.

First time home buyers, and sellers, can become overwhelmed with all the legal aspects of buying or selling a house.  The paperwork can make anyone's head swim.  It is extremely easy to familiarize yourself with the real estate contracts with some simple research. 

The first contract you may run into as the seller is the listing agreement.  This is the real estate contract you will sign with the agent who is going to put your house on the market.  This agreement will state the name, address, and other important information about the seller and the property.  It will also list the terms of the listing.  For instance, how much the brokerage is charging for their services, how much you are selling the house for, how long the house will stay with the broker, and what is included in the sale. 

You will also see a lead paint disclosure form if your home was built before 1978. This form simply states when the home was built and that the seller either does or does not have documentation or information pertaining to the lead paint.  If there is documentation, the seller is required to turn it over for inspection.  If there is no known documentation, the buyer has a certain amount of time to have a risk assessment done to see if a hazardous condition exists. 

Along with the lead paint disclosure is the seller's disclosure.  This is the form which allows the seller to tell about the property.  For instance, if the property is in good repair this can be stated.  The seller is responsible for releasing information on any damage which may have occurred due to flooding or other problems.  If there was an infestation of any kind which had to be professionally treated, the seller will put it on this form. 

The seller will also see another form the real estate agent must present.  This is the agency disclosure form. This is the form which states the agent is working for the seller.  It is important to have this one because some agents work for the buyer, while others are dual agents who work for both.  The seller needs to know who his agent is working for. 

The buyer has an entirely different set of real estate contracts they will encounter.  The mortgage contract will be used to determine the loan amount for purchasing the property.  This will list the details of the purchase.  It will tell how much the buyer will put up and how much the lender will contribute.  There will also be an appraisal done so the property can be properly assessed. 

The purchase agreement is a contract both the buyer and seller will be using.  This is the form the buyer will use to make an offer on the property.  This will also include the amount the buyer is borrowing, any closing costs they are asking the seller to pay, and the amount of earnest money put down.  The purchase agreement will also list what else the buyer would like.  For instance, the window treatments or appliances may be requested in the purchase of the home. 

One of the last forms both parties will see is the title disclosure.  This is the paperwork which states the title is free and clear from all encumbrances.  It also states the seller is the property holder and is allowed to sell the home. 

One final contract is the mortgage paperwork at closing.  This is where the title will change hands, the money will exchange hands, and the property now belongs to the new buyer.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

The Mover's Checklist

Every one dreads moving.  Even if you are moving into the dream home you have pictured all your life, the move is still a pain.  Changing over the utilities, forwarding the mail, notifying creditors, and the packing can all be one big hassle.  With a mover's checklist you can make the process quite a bit easier. 

One month before the move:

Whether you are moving across town or across the country there are certain things you must do.  The first one is to take an inventory of what you own.  You will need to decide what you are going to keep and what can be donated to local charity or sold at a garage sale.  It is easiest to do this on a room by room basis.  Go through each room and box up what you will not be taking with you to the new house.  If you are donating to the charity call to arrange a pick up time.  If you are having a garage sale, plan it for the next weekend.

For parents with school age children, if there will be a change in schools, notify both the old school and the new one so that transcripts can be sent ahead.  This will make it easier to sign the kids into the new school.

Locate the new pharmacy and have your prescriptions transferred. 

Contact the utility companies to make arrangements for disconnecting and/or transferring to the new address.  You will want to contact the new companies to have the utilities turned on the day you arrive in your new home.

Draw out your new floor plan.  This will enable you to know which pieces of furniture will go where in the new house.  You can also determine what will fit and what will not.

Notify the post office with an address change card they provide.  The kit the U.S. Postal Service has will allow you to notify friends, family, and creditors about the new address.

Talk with your bank to have them change the address on your accounts and credit cards. 

Three weeks before the move:

Start using cleaning supplies and foods you will not want to move.  Downsizing the kitchen can be easy during a move. It can be a hassle to move if you do not do this.

Start packing uncommon items you do not use that often.  Labeling the boxes for the new house make it easier to unpack and get settled in.  Many times it is easier to start with things like the off season clothes.

Retrieve items out on loan.  Get any items in the repair shop out.  Make sure all dry cleaning has been picked up.

Notify the newspaper of any cancellations.

Now is when you want to have that garage sale. 

Two weeks before the move:

If you are using professional movers, find an alternative way to move your pets and plants.  These are things the movers can not take on the truck.

Pack as much of the home up as you can.  Remembering to check the attic and basement for stored seasonal items.

Have a moving folder.  This is where you would keep important items you do not want to get lost or misplaced during the move.  Insurance cards, birth certificates, titles, and other things can go in this folder.  Put it someplace safe.

Walk around the outside of the house to make sure you got everything you are taking.  The garden hose, the wind chimes, and even the lawn ornaments can sometimes be left behind without thinking. 

The week before the move:

Pack up anything else you possibly can.

Double check to make sure the utilities will be taken care of and you know what is happening with any deposits you are owed.

Order the new paper delivery service at the new house. 

The day of the move:

Pack up everything you have not gotten to at this point.

When the entire house is empty, do a complete walk through checking closets and drawers as you go.  Make sure to look in the basement and garage as well.  Close each door before you walk out of  the room.  There have been many things left behind doors. 

This is just a small checklist of some of the things you will want to do before you move.  There are other things you may put on your mover's checklist.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

Tips to ensure a safe move.

Everyone gets excited when they are about to move.  It can be a fun and tiring experience all at the same time.  There are certain things you should do to ensure you have a safe move. 

The first thing you need to do is determine what day you are going to be moving.  The people who should know about it are the ones who will be helping you move.  Many times you will have people you only know as distant acquaintances show up to help with the big day.  The best response is to let them know you have enough people already.  Thank them for the offer and send them on their way.  You may think everyone can be trusted, but this is not the case.  Moving is a hard job and very few people volunteer just to be nice.  The ones who did offer are your friends and family.  It goes without saying they will expect the same from you one day.  Taking help from someone you hardly know can lead to things missing when you start to unpack. 

You will also want to make sure you have the proper moving equipment when you are moving.  Things like a cart dolly or two wheeled truck, as they are sometimes called, will be needed to move heavy things like the refrigerator, freezer, washer, and dryer.  Even if you have ten men ready and willing, you do not want someone hurting themselves because of your move. 

Before everyone arrives to help with the move, make sure every thing is packed up, or at least almost every thing.  This will ensure no one is standing around waiting to grab a box.  Having every thing ready to go and waiting on them will make the entire process so much easier for everyone. 

You will want to make sure the walk ways and stair ways are completely cleared.  You do not want anyone tripping and falling.  This is something which should be done periodically throughout the day to keep everyone safe.  People will ask for help from someone carrying a box down the steps. The person will put the box on the steps and help with what ever needs done, completely forgetting about the box.  The next thing you know someone is coming down with a chair or another box and does not see the first one.  Accidents happen like this all the time. 

It is advisable to have a cooler located somewhere which has a supply of ice and cold water in it. This is especially good if you are moving during the summer months.  People will get extremely hot during the moving process.  You want to keep everyone safe by keeping them hydrated. 

One last tip when it comes to having a safe moving experience.  Keep the doors and windows locked.  There are two reasons for this.  The first is obvious.  You do not want any unwanted guests helping themselves to what ever has been moved or still needs moved.  The other is the weather factor.  It never fails that when you are in one house, it will be raining at the other or vice versa.  You can keep floors dry and slip proof by keeping the windows shut when you leave one house for the other. 

You can also divide your help into teams.  Locate one in the new house and keep the other one at the old house.  As the trucks show up to the new place, the second team can unload. This gives the first team a needed break.  When the first team comes back to load up again, the second team is taking their break.  They can also help start to unpack.  

 

You can have a safe, enjoyable day of moving if you just follow the hints and tips suggested here. 

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

The Inspection Process

When buying any piece of real estate there are many details of the process that may come as a shock to you. One of these details is the inspection of the real estate that you are interested in buying. If you think that you are ready to buy a new home you will have to go through this process before you actually make a purchase. This will allow you to learn everything there is to know about a home. After all, do you want to purchase a home that has a cracked foundation? Of course you don’t! But if you do not go through the inspection process you may never find out about a lot of the things that could be wrong.

 As a potential buyer it is your job to pay for the inspection of the real estate property that you are interested in. While this is not a huge expense it is one that you will have to take on. So make sure that you budget for this before you ever start to search for a new home, or any other piece of real estate for that matter. Also, make sure that your home inspection is completed by somebody who has experience with this process. You do not want your inspector to miss a potential problem. If they do this may come back on you many years down the road.

 After your inspector checks out the real estate that you are interested in buying, they will provide you with a detailed list of what is wrong with the home. It is at this time that you must look over each issue, and then address it separately. There is a very good chance that if there is a lot wrong with the home that you may not want to buy it. And even if you do want to move forward in the process you will probably want to negotiate the price based on the issues that your inspector has found. You should never pay full price for a home that did not pass inspection with flying colors.

 Now can you see why the inspection process is so important? If you do not take this seriously you may end up with a piece of real estate that needs more repairs than you had initially thought. And of course if this happens you will get stuck paying a lot of money out of your own pocket. 

Contact or visit Lisa Jones page's.