Real Estate Library

Affording A Home

Before you get started on your home buying experience, it’s a great idea to determine how much you can afford. More specifically, getting pre-approved for a loan by your preferred lender is an excellent way to let sellers know you are seriously interested in buying.

When it comes to figuring out how much you can afford, the general rule of thumb is that your monthly housing costs should not exceed 28% of your gross income (e.g., pre-tax income). Remember, your housing costs are no limited to just your mortgage. They also include real estate taxes and insurance premiums. When you are carrying other long-term loan commitments (e.g., student loans and car payments), your total monthly payments should not exceed 36% of your monthly gross income. Because every situation is unique, it’s best to consult with a lender to determine what your actual budget will allow.

When you know what you can afford, you can begin looking at how different mortgage types can affect how much home you can afford. For example, Adjustable Rate Mortgages (ARMs), often allow you to qualify for higher loan amounts which mean being able to afford higher priced homes. Again, consult with your lender and real estate agent to calculate the specifics of your situation. It’s also important to consider buying at the top of your price range. It might mean less dinners out on the town in the short term, but it can mean big payoffs and huge savings over the long term.

For professional advice on all aspects of buying and selling real estate in the Southlake area, please call me at 817-994-7152 or e-mail me.

Buyer Protection

You never thought it could happen, but it did: You found the perfect home for you and your family. But, now the doubts start creeping in. You start wondering about the structural integrity of the house. You wonder about the condition of the electrical and plumbing systems-those hidden unknowns that lie just beyond eyesight tucked away behind the walls. How are you to really know whether you’re buying a dream home or a lemon?

That’s a great question and it’s the reason why a home inspection by a certified home inspector is a necessary part of every home buying experience.

As a condition of most purchase agreements, the seller will allow for a home inspection company to inspect the home. Home inspections generally offer a thorough review of all aspects of the home, inside and out. A home inspection will provide you with a detailed list of all possible issues that should be addressed, both large and small. For example, a home inspection will evaluate such items as roof quality, electrical, plumbing, drainage, general condition of interior and exterior, chimney condition, and so on.

In addition, a home inspection allows you as the buyer to get an up close and personal look at the house from an expert’s point of view. When you are equipped with this kind of information, you can move confidently forward throughout the sales process. And, best of all, you protect yourself from discovering any major issues BEFORE you have gone through with the purchase. Again, even if the home you are buying is brand new, it’s always a good idea to spend the money to have an inspection. A little money up front can save you big money in the long run.

For professional advice on all aspects of buying and selling real estate in the Southlake area, please call me at 817-994-7152 or e-mail me.

Buyer's Blues

It should be a great day in your life. You should be jumping up and down and celebrating. But, rather than jumping for joy, you're feeling down and blue. The idea of becoming a homeowner has you terrified and you're wondering if you've just made the biggest mistake in your life.

First of all, breathe. That's right; breathe. It's time to relax.

You're experiencing what is commonly known as "Buyer's Remorse." This is the feeling that many consumers get after buying large ticket items. And, for most of us, there's no larger ticket item than a home, right?

If buyer's remorse fills you with dread, doubt, and disillusionment, don't worry; we're here to help. Many times the buyer's remorse is short-lived and you'll begin experiencing all the excitement and pride of ownership that being a home buyer offers. Understandably, when there are so many unknowns in front of you like:

• The amount of money required for down payment and closing costs
• The total sum of interest plus the mortgage payments
• The inspector's report

You'll start to doubt yourself and your decision. But, in all but the rarest situations, buying a new home is a great step forward for you into the future, both emotionally and financially. So, again, take a moment to breath and if that doesn't fix it, give your real estate agent a call and let us help you through the buyer's remorse and right into the buyer's elation. Congratulations!

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Buying Bug Free

It's a simple fact of home ownership-we don't live alone…there is always some kind of 4-, 6-, or even 8-legged insect, creature, or bug making it's home sweet home with you.

Whereas this is a simple truth of home ownership, prospective buyers don't want to see evidence of this cohabitation as they walk through your house. And, more than that, they'll want proof that you've taken care of any possible infestations. To those ends, we have two suggestions:

1. When preparing your home for showing, be sure to do away with any signs of your multi-legged friends. This means sweep away those cobwebs, clean out the backs of those cupboards, and be sure to have the house as spic-and-span as possible.

2. You'll likely be required to disclose on your purchase agreement any infestations. In addition, even if you don't currently know of any, the inspector's report might end up showing that you have more house "guests" than you had thought. In either case, be sure to do what you can to rid the home of these freeloading insects. This means taking care of business yourself and/or hiring a professional exterminator to do the job for you.

Don't let a few bugs spoil your home sale, do your due diligence and send those bugs packing before the buyers come knocking!

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Capital Gains Exemptions

If you've just sold your home and are bummed at the prospect of paying huge capital gains expenses, think again. Even if you didn't think you qualified for reduced taxes because you didn't meet the basic ownership and use criteria, there are a number of ways that you still might be able to claim reduced exemptions.

Here are just a few of the ways you can be exempt from having to pay exorbitant capital gains taxes:

If you had to sell your home because your place of employment changed, you can usually avoid the taxes. You'll have to be able to demonstrate that your new job is located 50 or more miles further away than your previous job was from your current residence. In addition, you'll have to be able to show that you still were using the house you are selling as your primary residence at the time that job change occurred.

If you had extenuating health issues, you can often claim a reduced exclusion from capital gains taxes. More specifically, if you sold your home because you were seeking diagnosis, treatment, or cure of a disease, illness, or injury to you or somebody else in the household, you can often be exempt from the taxes through an exclusion.

Additionally, such events as death, divorce, natural disasters, and unemployment can all be used as ways to reduce your capital gains taxes.

If you have any questions about whether you can claim and exemption, exclusion, or diminished capital gains tax, it's always a good idea to get in touch with your tax professional.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Children and Moves

Did you know that moving and relocation ranks third on the list of life's most stressful events? With only divorce and death rated as more stressful, it's no wonder that so many people dread moving. If you have moved recently or are planning a move, you don't need me to tell you this-you know firsthand how hard moving can be! But, did you know that moving can be incredibly stressful for your children as well? It's true. With their whole world changing, children often feel powerless and out of control during a move.

Here are just a few of the ways you can be exempt from having to pay exorbitant capital gains taxes:

No matter how scary a move may be; no matter how overwhelming and stressful, the truth remains: You and your kids will be okay. When you can all come together as a family and work as a team, you will survive the move with flying colors. It may not all be smooth sailing, but you will come out of the experience as a closer, more loving family. Be accepting of each other's needs and emotions. It will take time, but your new house will soon become a home and all of you together will be happy you moved.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Closing Costs

If you're like most home buyers, you've already tallied up the number of what you think you'll need at closing. But, don't forget, there are many more "hidden" costs associated with closing than just the down payment. These additional costs can add up quickly and leave you scratching your head wondering where they came from.

It's always a good idea to talk to your real estate agent well ahead of the closing to help you get a solid understand of what your financial obligation at closing will really be. Your real estate agent will probably not be able to give you the exact numbers but he or she will be able to prepare you for what's to come, so you can meet your closing with no unexpected surprises.

Typical additional costs to consider include:

• · points on your loan
• · private mortgage insurance (if required)
• · the title search
• · title insurance
• · attorneys' fees
• · any transfer taxes or recording fees changed by local government agencies
• · property taxes (which may be required to be prepaid)
• · homeowners' association fees (which may be required to be prepaid)
• · insurance (which may be required to be prepaid)

When you know what to expect, your closing can come off without a hitch and you feel nothing but excitement on one of the most important days of your life.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Closing Dates

When it comes to buying a home everybody has heard of the "Closing" or the "Closing Date." But, what is this really? At its most basic, the closing date is the day that you as the buyer sign the papers and pay the money that makes the house yours and the seller collects the money he or she made from the sale of the house. Sounds simple enough, right?

In theory, the closing date should be this simple. However, as with any big transaction-such as the sale of home-there are always things that can throw a wrench into the equation. Typically, these "wrenches" aren't deal breakers, but they can often delay the projected final closing date which can make planning your actual move difficult. For example, loans can take longer to push through, liens against the property may need to be investigated further, or inspection reports may turn up items that need to be addressed. Again, most of the time these issues don't put a halt on the whole transaction, but simply need more time to sort through.

Your real estate agent should keep you up to date on the progress of all components of the experience and give you a really solid understanding of where you are in the process and when you can reasonably expect to sign those final papers and move in.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Comparables

How do you know whether you are paying too much for that home you're considering? No, asking the neighbors is never a good idea. They might be correct, but more often than not, they're anecdotal stories of home prices and appreciation may be way off the mark.

To determine whether you're price is right, the answer is simple: Take a look at the comparables. Just like the name suggests, comparables are the prices for which homes that are similar in square footage, location, and age to the one(s) you are considering have sold for recently. By reviewing the comparables in your prospective home's neighborhood, you can eliminate the guesswork and know for sure whether you are getting a good price on the home you're looking to buy.

Your real estate agent will be able to put together a packet that contains recent comparables in the neighborhood(s) you are considering. The packet should contain such things as the selling price of comparable homes as well as the financing terms and the transaction dates, is public information. This information is actually really helpful because it will also allow you to see how well the houses in these neighborhood have been appreciating in recent years so you can have an even better sense of the value of your investment.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Contingency Sale

If you will have to wait to sell your current home before being able toyou're your next, you're in a position known as a contingency sale. Many sellers are wary of contingency sales because they feel like they are at your mercy and don't want to have to stomach that kind of risk. For example, if your house doesn't sell, neither does theirs. Often this is not a position that sellers will willingly want to place themselves. However, that is not to say that contingency sales can't be as smooth as butter. In fact, they successfully happen every day.

There are a number of simple, straightforward things that you as a buyer can do to make your contingency sale more appealing to prospective sellers:

• Place a limit on the time that you have to accept an offer on your current home.
• Allow the seller to keep their home on the market until you have accepted an offer.
• Offer a very short period of time for the contingency, such as 24 to 48 hours, so the seller doesn't feel like they have much to lose.

Contingency sales can work smoothly and without any hiccups, so if you're in this position, don't worry; contact your real estate agent and determine the best way to work with your current situation.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Evaluating Multiple Bids

In today's market, it's not uncommon for a seller to have to evaluate more than one bid. In fact, many sellers will have to work their way through a handful of bids before determining which buyer is most qualified for the home.

When you are trying to determine which is the best bid, it's a good idea to include your real estate agent in the process. He or she will be able to help you to see the merits and shortcomings of each bid. For example, your real estate agent should be able to help you see such things as:

• The net profit you stand to make with each offer.
• Any contingencies of each bid that create more or less hassle for you.
• Acceptable move in and move out dates that work best for you.
• Likelihood that a given applicant will or will not qualify for financing.

With the help of your real estate agent, you can turn those multiple bids into a real boon for your pocketbook and your stress level.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Fair Market Value

How do you go about determining what the best price for a piece of real estate is? If you're a lender, appraiser, or real estate broker you'd use what is known as the "fair market value" (FMV) to determine this price. FMV is defined as "the price that a buyer is willing to pay and the seller is willing to accept, when both parties are knowledgeable about the property and neither is under any time pressure to buy or sell." This sounds clean enough, right? But, how exactly is that price figured out in the first place?

The FMV is typically determined by using a combination of information from local and national sources. This information contains such things as the pricing for comparable properties that are a) currently for sale, b) already sold, or c) have expired (i.e., properties that didn't sell). When a home is assessed based on these three items, the FMV is usually agreed upon by the lenders, appraisers, and realtors. Sometimes, however, there is disagreement based on particular upgrades or conditions of the home that can positively (or negatively) affect the FMV.

If you have any questions about setting your price or whether a home you are considering is fairly priced, be sure to consult with your real estate agent for expert advice.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Final Inspection

To assure that you "get what you paid for," it's common procedure to do a final walk through on your new home before you sign the closing papers. This walk-through allows you to inspect the property to make sure it is in the same (or better) condition than when you signed the original purchase agreement.

By doing the walk-through, you are giving yourself the opportunity to inspect such things as the appliances as well as all of the major mechanical systems, like the plumbing, heating, and air conditioning. If there are any discrepancies in the condition or working order of the home, you'll be able to address these before the closing.

As you can imagine, working through any issues that arise BEFORE closing is much easier than after you've signed for ownership of the house. So, be sure to take those extra few minutes to do a thorough walk-through of your soon-to-be new home and give yourself the peace of mind you deserve.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Finding A Buyer

In today's market, it's often easy to find someone (or many people) who are interested in buying your home. However, interest is one thing, actually making it to the final closing date, money in hand is another story altogether.

Because there are so many things that can go "wrong" between "interest" and "final sale," it's always a good idea to have your real estate agent along with you on every step of the process.

Your real estate agent will help you with all the details of planning, including:

Writing up an acceptable purchase contract that outlines the agreed upon price and any terms of the agreement that must be met prior to final closing.

• The deposit, or earnest money, the buyer will provide you with to assure that his or her offer is genuine.
• The details of the title transfer.
• Any conditions upon which the buyer (or seller) can get out of the purchase.
• The necessity of a home inspection to verify the property's condition.

As you can quickly see, the details of a home sale extend far beyond just having an interested party. Make the process a smooth and stress-free one by having a real estate agent take care of the nitty-gritty details for you.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Finding A Loan

As a current homeowner or as a first-time buyer, you probably know how confusing mortgages can be. With so many different kinds of mortgages on the market today, it can sometimes be overwhelming making your way through all the terms and conditions. With ever-fluctuating interest rates, points and origination fees and closing costs, it's almost enough to put the brakes on your desire to buy a home, isn't it? Thankfully, your real estate agent is there to help you make your way through the mortgage maze. Together with your lender, you can work to find the perfect mortgage for your needs.

One of the most important points to remember when searching for the right mortgage is to shop around. Comparing the rates, terms, and conditions of a variety of lenders assures you that you're getting the best possible arrangement for your particular situation.

In the meantime, be sure to check the local newspaper and the Internet-both of these are great places to begin your loan shopping process. Because rates and points are changing almost every day lately, you'll want to be sure to check frequently and act quickly if a rate seems appealing.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Finding A Real Estate Agent

One of the most powerful things you have working for you and your home buying experience is your real estate agent. Your agent brings years of experience to the table. If you follow your agent's lead, you're sure to win. From updates on listings that fit your criteria to knowledge of how to make the entire process a smooth one, your agent knows all the tricks of the trade.

Many people think that only sellers use agents. But, if you're looking to buy a home, the truth of the matter is that you'll want to have all the help you can get. Working with a specially trained agent is important because a qualified agent will be with you every step of the way:

• Offering advice on all facets of your purchase or sale
• Working to get the best prices and contract terms for you
• Representing you in all aspects of negotiation
• Leading the way for you from day one on through to closing
• Dealing with any potential problems with the property
• Determining if there are any conditions that would lead to price fluctuation (either higher price for seller or lower price for buyer)

As you can quickly see, a real estate agent is irreplaceable when it comes to buying and selling. Their years of experience mean a stress-free experience for you.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Hazard Insurance

Believe it or not, it can often be a good idea to take out hazard insurance on a property BEFORE you actually take title. If you're wondering why this is, rea on.

Because you will be the owner of record the second you sign your sales agreement, it's vital that you have your insurance all set up and ready to go at time of final closing. Many lenders will require this, so there is often no reason to have the insurance in your name prior to the sale.

When setting up your insurance, it is important that you have identified the amount of coverage-which is usually the purchase price of the buildings on the property minus the value of the lot. You are insuring the structures not the land itself.

Your lender and/or real estate agent can definitely help you with any questions you may have about hazard insurance and when the best time to put it into your name will be.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

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House Hunting

House hunting can often be one of the most exhilarating parts of the home buying experience. It can also be one of the most frustrating. If you've been online or using the classifieds you probably already know what we're talking about-wasted gas, houses that sounded good in the paper that are awful in person, hours of driving around and finding nothing.

When you work with a real estate agent, you can spare yourself countless hours of wasted time. Your real estate agent can line up only houses that fit your exact criteria. In addition, because your agent will be very familiar with your desired neighborhood, he or she will be the first to know if new properties come on the market, and/or which properties you'd be willing to look at more closely.

In other words, why waste your time when you could have a professional doing the dirty work for you? A real estate agent can make your home buying experience smooth sailing from day one.

If you enjoy the stress or the bills for all that gas, keep on looking by yourself. But, if you want to supercharge your experience and give your home buying process the boost you've been searching for, a real estate agent is the way to go.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

House-Hunting Tips

Who could have ever guessed that house hunting could be so tiring and overwhelming? If you've just spent the day looking at homes and now you're sitting on your couch trying to remember which house had the room you loved and which one had the room you hated-but they're all mashing together into one big home buying blur, don't worry.

It's time to get organized.

On your next house hunting trip, bring along a notebook. You can take notes as you go from house to house. Make sure to judge the homes on the same criteria (e.g., address, price, exterior construction, style, and color, type and condition of flooring and walls). Additionally, you'll want to note any other items-good and bad-that will help identify the house for you later when you're looking over your options.

By keeping this detailed notebook, you'll not only make your home buying experience less stressful, you'll also be able to equip your real estate agent with the type of information that will help him or her narrow down what you really want in a home.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Inspection Contingencies

As a buyer, what can you do to protect yourself from buying a lemon? If you're like most buyers, you'll include an inspection contingency clause in your purchase agreement. This clause will allow you to hire a professional home inspector to evaluate the condition of the home, inside and out, including all the major mechanical systems. By doing so, you can rest assured that you're getting what you're paying for.

In the event that there is something major wrong with the house, you'll have the option of pulling out of the purchase or requesting that the seller address the issue prior to closing without losing your earnest money.

In most cases, the inspection report is actually a good thing for the buyer and seller both. For the buyer, he or she can feel comfortable that they're getting a great deal on a solid home.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.

Investment Property

In today's real estate market, more and more people are getting involved in investment properties.

The key to any successful investment strategy, whether it be real estate investing or any other, is knowledge. Before you even think about putting an offer down on that first real estate property, prepare yourself with knowledge.

If you prepare yourself by getting familiar with all aspects of your own financial situation, including current assets, liabilities, goals, and financing options, then you'll be ahead of the game.

Availing yourself of all the great resources available on the Web, as well as consulting closely with a professional real estate investment advisor, will help your real estate dreams become a reality.

For professional advice on all aspects of buying and selling real estate in the Southlake and Colleyville area, please call me at 817-994-7152 or email me.