Real Estate One - Midland, TX

Make Your Move

2009-07-07T14:20:00.002-05:00

ALERT: Buyers only have until December 1, 2009 to take advantage of the first-time buyers tax credit authorized in the American Recovery and Reinvestment Act of 2009. Consult now with your tax advisor and real estate representative to get moving!

Most first-time buyers (who haven’t owned a home in three years) will qualify. If you're married, you and your spouse must both satisfy this description.

There are income limits for claiming the credit of up to 10% of the home's purchase price, which maxes out at $8,000. If your modified adjusted gross income (on IRS Form 1040, line 37) is less than $75,000 for individuals or $150,000 for married filing jointly, you can claim the maximum credit. For incomes up to $95,000 or $170,000 respectively, the credit is reduced.

This is not a tax "deduction," but a tax "credit," meaning that the amount you claim is reduced from your total tax bill! If you will owe less than $8,000 on your 2009 return, you'll get a REFUND from the IRS for the difference!

The biggest news is that in response to pressure from the National Association of REALTORS®, FHA lenders will allow buyers to use the credit to cover closing costs, buy down the rate or as additional down payment! I urge you to take this money from the government and make your move before December!

Keep the Horse Before the Cart

2009-06-30T13:53:00.001-05:00

While many buyers are aware that a mortgage pre-approval letter increases their buying confidence and power, most may not understand exactly why pre-approval is so important. Why should you jump through the application hoops before even beginning your home search?

First, you'll know exactly how much loan you can afford, making your initial home search much easier. Why waste your time looking at homes either out of your reach or well below your financial grasp?

Second, pre-approved buyers stand on solid negotiating ground with sellers. Sellers working with well-qualified buyers are more likely to accept the offer and less likely to stall on terms and conditions.

Notice that the topic of this column is "pre-approval," and not "pre-qualification." What's the difference? Pre-qualification is easy - you provide basic information to a lender, and in a few short minutes, you have an answer. Pre-approval requires strict verification of documentation relating to your employment, credit history, sources of income, etc. It takes more time, but is more accurate and carries more weight.

Understand that pre-approval is not binding, and is still subject to a satisfactory appraisal on the prospective purchase. If your financial situation changes, interest rates rise or fall, or the deadline passes, a recalculation will be necessary; but a little legwork now will pay off handsomely as you approach the finish line on your contract.

A Portfolio of Commodities

2009-04-22T13:41:00.000-05:00

Have you ever thought of a home as a commodity? A commodity can be defined as a raw material or product that can be bought and sold. A home is not a raw material, but it is certainly built out of many, like a box full of wood, steel, cement, glass and copper.

Over the long term, home prices usually rise along with the cost of the commodities it takes for construction. While high inventories of housing may be keeping prices lower right now, the cost of the raw materials that are intrinsically tied to a home's value are rising, and rapidly.

With increasingly higher construction costs on the horizon, buying now is an ideal investment, and a hedge against the rising cost of commodities. Every home is a store of value for all the materials, the land and the labor involved in its construction. So the long-term value of a home is tightly connected to the cost of its production, making it a very different type of investment from stocks or bonds.

Investing in commodities has always been a great way to make lemonade from the economy's lemons. And what better way to buy into the commodities market than by purchasing a home? Sooner or later, home prices will be pushed higher by the rising cost of raw materials, so make your move now!

Time For A House Call

2009-03-26T13:28:00.000-05:00

A real estate professional recently coined the term "Price Denial Syndrome," a troublesome condition that afflicts sellers having a hard time facing the realities of today's markets. Of course it’s difficult to make a pricing concession, but an overpriced home simply will not sell.

Perhaps the sellers argue that they really need the money, but then they have to ask themselves what they'll do for money if the home doesn't sell. Maybe they figure that they can shoot for the moon now and reduce the price later if they must. However, the longer a property remains unsold, the more likely it is that even more price reductions will follow. Then it’s taken even longer to get a sale at a lower price.

Some sellers might suggest trying a higher price just for the first two weeks, but that's when the interest of serious buyers is always greatest. Those buyers usually look within a certain range, and won't even make an offer at all on an overpriced property.

Most importantly, if the sellers need to buy another home, time is of the essence. If the sale takes too long, they'll be buying at a time when prices and interest rates may begin climbing again.

If you're suffering from PDS, pay attention to the news, review your home's Competitive Market Analysis, and call us in the morning!

Highlights of the New Homebuyer Tax Credit

2009-02-24T15:17:00.002-06:00

1. The maximum credit is 10% of the purchase price or $8,000, whichever is less

2. Credit only applies to first time homebuyers, defined as anyone who has not owned a principal residence in the previous 3 years.

3. Credit applies to first time homebuyers who purchase between January 1, 2009 and December 31, 2009

4. Income limits are $75,000/yr for a single person and $150,000/yr for a married couple.

Two Ways To Upgrade

2009-02-17T14:21:00.001-06:00

Have you ever overdressed for an event? Perhaps you understood the dress to be formal, but when you arrived in your sequin dress or black tuxedo, everyone else was wearing jeans and turtlenecks. You may recall how everyone stared as you entered the room, looking a bit out of place.

That happens to homeowners too, but it's not called overdressing - it's called over-improving. It happens when property owners remodel a home to the point where its new value far exceeds all others in the neighborhood.

Let’s say that your family has grown, and you begin your improvements by adding a wing with two more bedrooms and another bath. You expand to a three-car garage, and install an outdoor deck. In the process, you add $55,000 in improvements to your $100,000 home.

As long as you continue living in the home, that's not a problem. When it's time to sell, however, you'll face an unexpected challenge. You’ve spent $55,000 on improvements, but buyers are unlikely to be impressed as they compare the prices of other homes in the area, and expect yours to be in line.

Before beginning a major project, determine the impact on your home's value. Consider “upgrading” to a larger home vs. remodeling, getting advice from a lender and a real estate agent. When it's time to sell, you'll be glad you did.

Low Offers: Prevention Is The Cure

2009-01-28T12:01:00.004-06:00

It takes an innovative marketing plan to cause a home to sell, but to attract serious buyers, it must also be priced fairly. What else must be done to successfully sell your home?

Buyers are in search of their dream home. If priced reasonably, they will purchase the home that best reflects their idea of that dream, and it’s the sellers who are in charge of making it happen.

Experience has shown that buyers often reduce their offers by as much as $2 for every $1 in uncompleted repairs. Sellers won't have to face those disappointing offers if attention is given to their home before it is ever shown.

The best method for improving buyer appeal is a "walk-through" by the sellers' real estate agent. The agent plays the part of a prospective buyer, and then suggests upgrades, repairs, and cosmetic improvements.

Then the sellers should complete all the work before the home is placed on the market. Neither a prospective buyer, nor another agent, should ever see the home until it is in 100% marketable condition.

Excuses made at a showing are an open invitation to a reduced price. When a buyer is disappointed, no explanation will suffice to bring the price back up. When selling, ask your agent for advice, and then take action. Buyers will often compete for such a good value.

277 New Home Permits So Far This Year

2008-06-11T11:02:00.002-05:00

Home building in Midland has been on the rise for the last 8 years. March and May have been the busiest since 2001 with 64 permits issued in each of these months. Building has not been limited to Northwest Midland, nearly as many homes are being built on the East and Southwest side of Midland within the boundaries of Loop 250.
Info from Texas A&M Real Estate Center
~Sandy

New Energy Options

2008-05-28T14:21:00.012-05:00

With energy costs rising more rapidly than most of our salaries have, I've taken a greater interest in alternative energy sources. I came across this website today. Obviously it won't make a huge impact immediately in energy consumption, but it's a start and it looks rather nice! Imagine having one of these solar shades around your pool, or as a rest stop on the golf course, there are lots of possibilities, and we definitely have enough sunshine in West Texas!
Click here to see what I'm talking about!
http://www.buronorth.com/
~Sandy

FHA Loans - Take Another Look

2008-04-10T11:25:00.005-05:00

Suzanne Smith of HNB Mortgage has an interesting article on her website this month outlining the advantages of an FHA loan and what the government has done recently to expand loan limits in many parts of the country. If you are in the market to purchase a home you should seriously look at an FHA loan. For the complete story follow this link:
http://www.hnbmortgage.com/Newsletter.htm

Don't forget the tax deadline April 15th!!
~Sandy

Downtown Project - Permian Plaza

2008-03-10T13:49:00.004-05:00

Basic Energy Services, Inc. has announced a $10 million dollar project to house it's national headquarters in downtown Midland. The project includes the demolition of the "Belt Buckle Building" to make way for a parking structure and the renovation of two other downtown buildings to create Permian Plaza 1 and Permian Plaza 2. The project will add an addition 65, 525 sq. ft of office space. For more information on this project click here:
http://recenter.tamu.edu/mnews/mnsearch.asp?AID=16
~Sandy

Housing Permits Rise in 2007

2008-01-16T13:36:00.001-06:00

New statistics for housing permits were release recently for the year 2007. The City of Midland issued 28 single-family building permits with a total construction value of $3,430,812 in December 2007. The city issued the same number of permits in December 2006. The city granted 514 new residential permits in 2007 and 470 in 2006.
courtesy of the City of Midland, TX

Don't forget Improv at the Yucca Friday and Saturday
~Sandy

The Feds Cut Rate Again

2007-12-12T10:06:00.000-06:00

The Federal Reserve cut interest rates modestly Tuesday, (a quarter of a percentage point, to 4.25 percent) to a nearly two year low. They left the door open for further reductions if the housing market and the rest of the economy continue to slump. The Dow Jones fell 294 points after the annoucement,Wall Street had hoped for a larger cut. For more on this story check out the following links:
http://www.statesman.com/news/content/news/stories/nation/12/12/1212fed.html
http://www.nytimes.com/2007/12/12/business/12fed.html?hp
http://news.yahoo.com/s/ap/20071211/ap_on_bi_ge/fed_interest_rates
~Sandy

"Property Virgins"

2007-12-02T18:01:00.000-06:00

I know the term "Property Virgin" sounds a bit kinky, actually it's a new series on HGTV from Canada about first time home buyers, but if you think about it, "property virgin" hits the nail on the head. First time home buyers are "virgins", that is they are about to make a huge commitment, in an area they probably don't have a lot of experience. If you are a first time home buyer, here are a few of the things you should be aware of:

1. Check out the different areas of your town, are you looking for an area populated mostly by mature homeowners or young families, are there a lot of apartments, car washes, convenient stores etc.. Do you want an area close to downtown or out in the suburbs, is a neighborhood park important?

2. Be sure to ask for a Seller Disclosure Statement. This should tell you anything the present homeowner (good or bad) is aware of about the home.

3. Once you have chosen a home, be sure you get a home inspection. This will insure that you are making a wise investment, and should reveal any problems you may encounter with the home. For example, are there termites, is the plumbing and electrical wiring up to code, will the roof last another 5-10 years or does it need to be replaced now, is the property structurally sound etc...

4. Working with an established realtor can help you with all of the above and provide comps of each area you are interested in to be sure the price of any home you consider is in-line with other homes that have sold in the area recently. A realtor along with a mortgage lender can help determine which price range would be best for your current situation, so that you don't end up biting off more than you can chew!

These are just a few of the things you should consider when buying a home for the first time, or for that matter the second or third time!

Southwest Airlines Drops Another Midland Flight

2007-11-26T14:18:00.000-06:00

I don't know if you saw this or not, but Southwest Airlines has yet again dropped another Midland flight. Beginning November 14 we were no longer able to fly to El Paso. However, on January 13, 2008 we will be able to fly to El Paso via Albuquerque in a mere 3 hours and 50 minutes! I don't know about you, but I'm pretty sure I can drive to El Paso faster than this flight would take after figuring in early arrival for baggage check-in, security, and retreiving bags on the other end etc... It seems strange to me that enplanements are up (and have exceed by 1% pre-9/11 numbers) and yet we continue to lose flights.
~Sandy

Besting – Or Better Nesting

2007-11-14T08:21:00.000-06:00

A new book out by Bob Waun called “Besting” describes new retirement trends for Baby Boomers. “Besting” essentially is better nesting or an improvement in the quality of housing with amenities and luxuries far beyond traditional retirement. Basically, this isn’t your father’s retirement!

“In 1994 there were approximately 6.4 million second homeowners, by 2020 this number is projected to grow to 8.5 million. Retirement communities of mobile home parks with pleasant weather and simple amenities like shuffleboard are ancient history for the boomer generation.” Baby Boomers who are now empty nesters, but not yet ready for the “old folks home,” want more options, luxuries, and amenities all in fabulous locations!

With this trend comes new innovative ownership options such as: condo hotel, fractional, private residence clubs, timeshare, destination clubs, ship condos, hobby farms, and themed communities all of which will play a role in the Besting stage of life.”
~Sandy

Excerpts from Between Empty Nesting and the old age home - Besting, Better Nesting: The New American Dream by Bob Waun

Housing Recovery

2007-11-12T16:36:00.000-06:00

According to John Burns the founder of Real Estate Consulting in Irvine, California the housing market future is looking brighter. In a guest column on Inman Real Estate News Burns said, "Despite the tough times in housing, the economy continues to grow, and that will make the recovery in housing happen much sooner. The energy sector, in particular, is thriving, spurred by a falling dollar and skyrocketing commodity prices."
for the complete story click here
http://www.inman.com/inmannews.aspx?ID=65193
~Sandy

Home Insurance Fraud

2007-11-06T14:37:00.000-06:00

The Midland Police Department is currently investigating a case involving a man who is accused of selling insurance policies and then not ever providing the policies.

Anyone who purchased a policy from Bob Moore Insurance should check into their policy. Anyone who was notified by their mortgage company at renewal time that they did not have a policy should contact Midland Police.

To report suspicion of Theft of Business Practice involving Robert “Bob” Moore, contact the Midland Police Department at 685.7108.
For more information click this link.
http://www.midlandtexas.gov/press_release/2007_10/10_31_07.htm
Don't forget to vote today!
~Sandy

Fed Cuts Interest Rate Again

2007-10-31T13:35:00.000-05:00

The Federal Reserve, confronted with surging oil prices and a slumping housing market, on Wednesday cut a key interest rate by a quarter-point, the second rate reduction this year.

The central bank lowered the federal funds rate to 4.5 percent in an effort to stimulate economic activity and keep the country from dipping into a recession. The move will make it cheaper for consumers and businesses to borrow money.

The Fed's action came on the same day the government announced that the overall economy grew at a stronger-than-expected 3.9 percent rate in the July-September quarter.
(read the rest of the story here) http://hosted.ap.org/dynamic/stories/F/FED_INTEREST_RATES?SITE=TXMID&SECTION=HOME&TEMPLATE=DEFAULT
~Sandy
Be safe this evening Trick or Treating!

Preparing for Winter - Energy Saving Ideas Part III

2007-10-23T15:22:00.001-05:00

Let the sunshine, let the sunshine in! By keeping the blinds and/or drapes on sun exposed windows open during the day you can take advantage of "Solar Power!" Remember to close them in the evening to conserve the heat generated during the day. Be sure to close fireplace dampers when not in use. Dampers are a major source of heat loss.
~Sandy

Preparing for Winter - Energy Saving Ideas Part II

2007-10-19T08:49:00.000-05:00

During the winter, reverse your ceiling fan motor so that the blades push air up towards the ceiling. The fan will drive the warm air back down around the edges of the room, resulting in more even heating.

It's also a good idea to check all windows and doors now for air leaks, you don't want to heat the outdoors. Place a thick bead of caulk around any windows that need it and replace weather stripping around drafty doors. ~Sandy
Don't forget the Texas Size Garage Sale Friday, Saturday, and Sunday

Preparing for Winter - Energy Saving Ideas Part I

2007-10-16T11:22:00.000-05:00

Did you know using a humidifier can save on your energy bills? By putting additional moisture in the air you can increase the heat index inside your home. (68 degrees Fahrenheit will feel more like 76 degrees) By placing a small portable unit in frequently used rooms such as a bedroom or living area you can save a bundle! The relative humidity in your home should be between 20 to 40 percent.
~Sandy

September Housing Permits

2007-10-12T13:50:00.000-05:00

In September 2007, there were a total of 615 building permits filed with the City of Midland. This number is the same as the total for September 2006. Building permits valued $18,008,634 in September 2007 as opposed to $6,035,629 in September 2006. Among the September 2007 permits were 44 single-family residences with a total valuation of $5,632,012.
-courtesy of Real Estate Center-Texas A&M University
Don't forget Old Sorehead Days this weekend! ~Sandy

Getting The Most Money for Your Home - FINAL PART!

2007-10-10T13:37:00.000-05:00

Be sure your home is in good order. The kitchen, bathrooms, utility room, floors, windows, door frames, and curtains all need to be cleaned thoroughly. Any leaking faucets or toilets need to be repaired. This is more evidence to a potential buyer that you have taken good care of your home.

Turn on all the lights and open drapes before a potential buyer arrives. Be sure there are clean fresh towels in the bathrooms and no dirty dishes in the sink. Take a short walk or run errands while the agent shows your home. Buyers will feel more comfortable if you are not home.
~Sandy

Getting The Most Money for Your Home Part III

2007-10-09T17:06:00.000-05:00

Remove anything that looks like clutter, pack it up and store it until you move into your new home. Less is always more when it comes to personal belongings and selling your home. That means removing the refrigerator art, and clearing the counter tops in the kitchen and bathrooms, cleaning and organizing closets, etc… This will make your home seem larger to potential buyers who need to be able to visualize their personal belongings in the house.
~Sandy