OpeningDoors

If you are late on your payment...Don't Wait, negotiate with your lender

If you are late on your mortgage, receiving demand letters and in fear of being foreclosed....you have options, but please don't wait on your lender to give them to you. Call them yourself and start trying to work it out. Your lender doesn't want the foreclosure...they have enough of those already!!!

Recently I received a call from a lady needing to sell her home.  During our conversation she tells me she's several months late on her mortgage and that she has received a letter that it is going to be foreclosed in 4 days. I felt terrible for her, and I knew the story she had told me was 100% true. The trouble is, even with my mitigation training, I knew 4 days wasn't enough time to initiate other options and stop the foreclosure. We tried, but the lender told me that it would take 2 weeks and she had waited to long. The moral of this story is don't wait. In a time like this, it's natural to ignore the mail and the phone because you feel ashamed and scared. The irony is, if you would call them, they have options for you! Most lenders will allow you to list the house for immediate market price regardless of what you owe. This is called a short sale. They will send you a 1099 for the balance at the end of year as income, but it beats having a foreclosed home on your credit for 10 years. Many lenders also offer loan modifications to get you current faster and help you stay in your home.

Our Heroes Need us this Holiday Season

  The Montgomery County Chapter of the Women's Council of Realtors is proudly sponsoring our Nation's Heroes in the Armed Forces this Holiday Season. We need your help to make it a huge success!!! This year's goal is to send 1000 packages to our men and women serving in Iraq and Afghanistan in time for them to enjoy this Holiday Season.

Please help us by donating any of the following non-perishable items:

v     AT & T International Calling Cards – Can Be Purchased at SAM’S CLUB

v     Paperback Books, Puzzle Books and DVD’s (Nothing War Related)

v     Disposable Cameras

v     Disposable Razors

v     Individually Wrapped Snack Items (Nuts, Granola/Cereal Bars, Jerky)

v     Christmas Decorations (Limited to Small, Unbreakable Items)

v    Travel Size: Wet Wipes and Hand Sanitizers

v     Children’s Cards to the Soldiers

v     Foam Ear Plugs

v     Airline Travel Masks for Sleeping

Visit the website at www.montgomerycountycares.com.

If you need assistance in getting your items to the drop off location, email me at holly@soldonlakeconroe.com.  We are also still in need of sponsors, if you're interested in sponsoring send me an email also.  Items will be collected through October 31st!

And one last thing, we need NAMES OF SOLDIERS TO SEND THESE PACKAGES TOO!! If someone you know is serving, send me their name and mailing info. Send the names of everyone in their entire unit...we don't want to leave anyone out.

It's a Jungle Out there!

Real Estate is never dull, that's for sure. The news media is giving it a beating lately. I just read this morning that house prices and starts continue to fall.

Real Estate is also still a very LOCAL market. National focus, local direction. In our local market we've seen some changes. Nothing like the national trend. Keep in mind "national average" is being heavily weighted by Florida, California, and others who truly had a housing bubble to begin with. Here's our most recent stats: http://www.soldonlakeconroe.com/custom2.shtml

Why does 80-150K seem to be suffering so much? Simple, mortgage qualifying for the buyers. We could get almost anyone approved on all types of "stated/no doc" loans a year ago...now a days, it's more of an old school mortgage market. You are simply going to have to prove you make what you say and that you've paid your bills!!

What does all this mean to you? If you're wanting to buy, get with a loan officer, have them pull your credit and tell you what you qualify to purchase. And if you are selling? If you are in the 80-150K price range you're marketing time might be a little longer than it was a year ago. But it will sell! Our market is still HOT. I'm out there everyday and there are plenty of buyers ,who are qualified, looking for homes! Our market is healthy and going strong.

Have a general question, email me at holly@soldonlakeconroe.com! I'll personally email you back and do my best to help you find the answers you're looking for.

Houston Housing Market Proves Strong in April

April MLS statistics reverse the decline that began in March

It was a good Month for Houston in home sales! The market is performing well for both buyers and sellers. Here's an excert from the official press release from Houston Association of Realtors:

HOUSTON — (May 10, 2007) – Single-family home sales in April rose compared to April of last year, reversing the first decline in more than three years. Prices last month also continued to show strength, as both the average and median sales prices increased in line with trends seen during the last few years. Perhaps signaling statistical validation of experts’ suggestions that tighter subprime lending standards will have a negative impact on home sales, the primary price range of homes showing sales weakness has been those homes priced at $140,000 or less, according to statistics released by the Houston ssociation of REALTORS®. At the same time, homes in the $400,000-plus range have seen tremendous strength in sales.

Total property sales for the month registered 7,275, which was a 2.7 percent increase over April 2006. Properties sold during the month reached a total of more than $1.4 billion, an 8.5 percent increase compared to last year’s more than $1.3 billion in April sales. Additionally, the median home price for a single-family home reached a monthly record for April of $150,000, and the average single-family home price came in at $205,511, increases from last year of 2.0 and 4.8 percent, respectively.

Click here to read the entire article.

Houston has historically been a very affordable housing market. Subprime changes will affect some buyers' ability to purchase, but the upside of that is it will also help to slow foreclosure rates over time. In general,  As noted in a previous post, our local market is performing well. 

What is a buyer's agent?

Talking with a group of friends yesterday, the subject came up regarding agency relationships in a real estate transaction. I realized many people don't know exactly when they are truly represented and when they're not.  For those of us in the business, I think we often take for granted that our customers and clients understand the laws of agency when in fact, they have no idea.  I felt compelled to post an explanation of the buyer's agent.

When you are deciding to purchase a home, it is in your best interest to select one agent that you can work well with to help you. They should go over with your your needs and wants and find out exactly what you're looking for and when you plan to move. They should follow-up with you and communicate well with you.  There's alot more to being your agent than just unlocking the doors of the houses you want to see. This should be a relationship built on trust, respect, and mutual understanding.

The real key is that they Represent YOU!
Ever gone to a builder who encourages you not to use a Realtor? (maybe the house price is less without a Realtor on contract with you...). Here's why...if you write a contract with a builder and you have no Realtor on the contract, then you have no representation in the transaction. The contractors, sales professional, builders, and other builder employees work for the builder and represent that builders interest first...not yours!
The builder is not the only place you can have a transaction without representation. If you call the listing agent to show you a house and you decide to buy it. That agent becomes the "intermediary", meaning that they carry information back and forth from buyer to seller, and facilitate the transaction, but they are not truly representing your interest FIRST! The agent you have selected to represents you, can show you any house on the market.
Many agents in Texas operate as "sub-agents", meaning they do not have you on a buyer's representation agreement and they are sub agents of the seller.

What does all of these mean and how does it affect you?
You should work with one Realtor, who represents your interest first. By signing a buyer's representation agreement with a Realtor, you have in writing that she/he will put your interest first when showing, negotiating, or closing the transaction. This agency relationship will provide you with the security you need to know that anything you say in confidence stays in confidence, that you have someone looking out for your benefit, and that you have been given all facts to make a sound decision.

Here's a list (brief) of the things your Realtor will do when working as your buyer's agent:

1. Help you get preapproved with a lender
2. Show you any house on the market
3. Review your Good Faith Estimate with you
4. Provide you will comparable sales in the neighborhood before making an offer
5. Guide you through the negotiation process
6. Give you a list of steps to follow from contract to close
7. Support you through each step
8. Guide you through inspections and repairs (or re-negotiating if necessary)
9. Ensure that you have been given Residential Service Contract information on reputable companies
10. Go over your final settlement statement with you and compare it to your good faith
11. attend closing
12. Follow-up after closing

This is not a comprehensive list by any means. One additional thing you need to aware of, in almost every real estate transaction I've ever done, (even when I worked at the title company), there are always unforeseen changes and obstacles. Your agent should be prepared for these and make them as painless as possible for you.

If you'd like a more detailed report on how a buyer's agent can help you. Send me an email to holly@soldonlakeconroe.com and I'll deliver it to you.

Seminar again tomorrow night

Opening Doors Real Estate Seminar Tomorrow Night
Wednesday, May 16, 2007
6-8pm

It's that time again. My monthly Real Estate seminar is tomorrow night at the Montgomery County Central Library in Conroe. It starts at 6pm and will be over around 8pm. This is an opportunity to come and get your questions answered and find out what's going on in Montgomery County. It's open to everyone, it's absolutely FREE...and you don't have to dress up! That makes it easy, right?

Tax Valuations are in the mail!

2007 Tax Valuations are in the mail....now what?

If you haven't gotten your 2007 tax assessment valuation statement from Montgomery County yet...it's in the mail!!
Unfortunately, most of the time when we receive these we either; 1) don't know what to do with it so we ignore it, 2) think it means nothing and throw it away or 3) tell all our friends how much our property value has gone up and pay no further attention to it. The truth is, these tax valuations mean much more than we give them time for in our busy lives.

I recently had the opportunity to listen to a presentation by our Chief Appraiser, Mr. Mark Castleschouldt.  Mark did a great job of explaining how these values are obtained and what we as residents can do to protest. He first explains that the appraisal district uses what is called "mass appraisal techniques". Meaning, they don't have specific sales information in all neighborhoods, and they rely on public records and generalizations to assess these values. He also noted that although these techniques comply with all state laws & regulations & the Appraiser's Board, they are not 100% accurate on all cases. I'm sure you know all of this, but it's the next part that I thought was worth sharing with all of you:
How do they service the product?
Mark points out that developing the product is the least of his challenges. Servicing the product is the really challenging part. Because he openly admits that they make mistakes and they need you to notify them when you don't think you're appraised value's are correct. Most of the time, he doesn't know what you paid for your house, and he doesn't know what you're neighbors house sold for either. They are not 'trying to create a market' if you paid less, have material/structural problems, or have other extreme conditions you have the responsibility to notify the appraisal district. Now is the time to appeal this. Mark assured us that if you make an appointment with the appraisal district, they will review the assessment with you, and make sure you have all exemptions you qualify for.

What does all this mean to you?
Since Montgomery County is one of the fastest growing counties in Texas, of course we are going to have increased property values. But, you have the right and responsibility to make sure it is accurate.

If you have any of the following conditions, you need to contact the Montgomery County Appraisal District:

• You paid less for your house this year than it is being assessed
• You feel the increase is too high (overall %)
• You have foundation or other structural problems
• You are not sure you have been given all exemptions you qualify to receive
• You have termites
• Any other material changes in your neighborhood

Higher property values are a plus when you are selling your home, but not for paying taxes. You owe it to yourself to make sure these are correct.

I encourage you to contact the appraisal district with any questions or concerns. Be informed and uphold your responsibility.

If you want more detailed information on taxes in Texas, I recently ordered the 2007 Taxpayer Rights, Remedies and Responsibilities publication for the state comptroller's office. If you'd like a copy, email me and I'll mail you a copy as soon as they are received.

MISD Tax Increase?

Montgomery Independent School District Bond Election 2007

According to the proposal documentation, MISD has experienced a growth of 47.66% in the past 4 years. Demographic projections are expecting that to double in 10 years. MISD has proposed a bond issue for construction of elementary school #4 and renovations to existing schools, a transportation/distribution center, agricultural and science center, ninth grade center, and other expansions.You can read the full detail here .

What does this mean to you? If you are a resident of Montgomery and currently paying MISD taxes, you can expect property taxes to increase if this is passed. They have given a projected amount of the increase for you. Referencing this increased proposal, it makes one very important assumption:

"What will this bond referendum cost me?
Based on current projections, taxpayers would see a debt service rate increase of .15 cents between 2007 and 2008 in relation to this bond referendum. Assuming the property’s value remains the same for the period, the debt service portion of the total tax bill on a $162,997 home would increase by $222 over the term. This equates to about $18/20 per month. (See tax chart on page 2 of the MISD Bond Referendum Brochure (pdf)).

"assuming the property's value remains the same" is critical to this proposal. If the Montgomery County Central Appraisal District does not increase the value of your property, then this estimate is your proposed increase in taxes per year. If however, the value of the property increases then they cannot predict your new tax amounts.

I don't doubt that Montgomery has seen a significant increase in it's enrollment over the past several years. Anyone living, working, or playing in the area cannot help but notice the significant changes in Montgomery. However, I also don't doubt that property values have increased significantly in the past few years as well. Montgomery is expecting strong growth in the region over the next few years, and with that comes increased property values. As we say in real estate "location, location, location". That's great for a lot of reasons: 1) your equity in your home continues to rise, 2) your resale value is strong, 3)demand for housing increases, 4) the economy is growing , and 5) businesses will come bringing with them sales tax revenue and other economic boost for the local economy.
At the same time all the wonderful growth is happening, it can cause a significant change in property values and thus a significant change in taxes.

I am not telling you that you should vote for or against the proposed MISD Bond 2007.  I am a firm believer in our children's education. Not to mention the safety and quality of their schools. I do feel you should be an informed consumer before you vote, and realize the entire impact that this may or may not have on your family. Property Value and tax rate are not the same and one does definitely influence the other significantly.

(Whatever you decide....VOTE!  I'm appaulled at the low voter turn out we have...it's your right to vote, please do so!) Election day is May 12. Click here for voting dates and times.

Senior Texans need your Help on May 12th

IMPORTANT !!

If you are a Texas homeowner then this
is important to you. If you agree, please
pass along to all in your email list who
are Texas residents.
Everyone needs to be aware of a
constitutional amendment that will be
on the ballot at the May election.
It is an amendment to correct an
error made by the lawmakers when
they voted for a reduction in school
property taxes in 2005. When the law-
makers voted for a one-third reduction
of school property taxes beginning in
2006 and to be completed this year,
they forgot about the homestead
exemption for senior citizens and
people with disabilities. The state
constitution caps school property taxes
for homeowners 65 years or older
and those who are disabled. However,
they DID NOT get the same reduction
when the property tax cut for schools
was voted on two years ago. So an
amendment is on the May ballot to
correct this error.
The problem is that most voters who are
younger than 65 or not disabled probably
won't even notice the amendment or care.
PLEASE get out and vote for this
amendment ... if not for yourself, then for
your parents, grandparents, aunts, uncles
and friends. We would really appreciate
your getting the word out to all your
friends and families to vote for this
amendment.
The fear is that with a low voter turnout,
the amendment could very well not pass.
So, please, please pass the word and vote FOR the constitutional amendment.
Early voting will take place
April 30-May 5 from 7 am to 7 pm
May 6 from noon to 6 pm, and
May 7-May 8 from 7 am to 7 pm.
Election day is
May 12 from 7 am to 7 pm.
Spread the word
and VOTE!!!

Things are better in Texas!

At least in the housing market

Lately, I've been watching and reading an awful lot of doom & gloom on the housing market and I'm sure you have too. The National Association of Realtors (NAR) just announced last week that median housing prices are expected to fall in 2007...well, that's not true for Texas. According to Texas A&M Research Center, the trend in Texas will "buck" the national average.  The Houston MLS aka "local mls" (which is made up of Harris, Fort Bend and Montgomery Counties) reported a 3% increase over February of last year.  In a Press Release issued by the local Mls, single-family home sales were down in March, but it was still the 2nd highest number of sales ever recorded in the month of March...up 23.3% from last month. And our home prices continue to rise.
The Houston area is notorious for our affordable housing in comparison with the rest of the country. The trend is expected to continue. Within all these statistics & numbers is a huge opportunity...so don't believe everythng you're hearing on the cable news channels!