SE Texas Real Estate Talk

Southeast Texas Home Buyers: Take This Quiz

How well do you know what repairs will be required if you buy a home using FHA financing?

Test your knowledge.

Answer yes or no to the following questions.

1.  Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and are also known as the three S's.  Safety, Security, and Soundness.

2.  FHA will reject a property that would be cost prohibitive or impractical to bring up to the minimum property requirements.

3.  The following are considered defective conditions that must be remedied before the FHA will lend money on the property (answer yes or no for each)
a.  decay 
b.  termites 
c.  defective construction 
d.  evidence of continuing settlement  

4.  The roof must have 2 or more years of remaining life.

5.  A roof can have a maximum of three layers.

6.  In Texas a termite inspection is required.

That's it.  How do you think you did?

 

Here's a hint.  The biggest obstacles seen in Southeast home sales are termites, wood decay and foundation settling.  You can learn more about Appraisal and Property Requirements required by FHA at U.S. Department of Housing and Urban Development. 

Want the answers without having to look them up?  "Yes" is the answer to each and every one of the questions.   

New Residential Construction Costs In Beaumont, Texas

Thinking about buying a new home in 2010?  There's something so appealing about buying brand new construction.  Fresh carpet that has never been walked on.  Bathtubs that have never had a ring of soap scum. Appliances that still have a warranty.  Oh yes, there is something wonderful about buying directly from a builder. 

Home buyers are willing to pay a premium for "brand new".

Just how much are Southeast Texas home buyers willing to pay for the luxury of a home that has never been lived in home.  Take a look.

This graph shows the asking price on a cost per square foot basis that home builders in Beaumont, Texas are listing homes for and the price on a cost per square foot basis that home buyers have been willing to pay.  The data is from the Beaumont MLS.  Sales are from the past six months. 

Break it down another way:

• Most new construction is on the market in a range from $115 - $130 per square foot.
• Most sales have occurred in a range from $105 - $120 per square foot.
• The highest sale went for $151.89 per square foot.  Any guesses where it was?  Barrington Heights.
• The lowest sale went for $92.64 per square foot.  It was on Brooks Road.

Other tidbits about new construction in Beaumont:

• Builders are still averaging over 95% of their asking price on most sales.
• On average number of days on the market for new construction homes is about 130.
• Right now there are 47 active listings classified as new construction in Beaumont, in the Beaumont MLS
• In the past six months there have been 24 sales classified as new construction in Beaumont, in the Beaumont MLS. 
• 47 actives vs 24 sales in a six month time frame would mean we have a 12 month supply of new construction in Beaumont. 
• According to the Real Estate Center at Texas A&M a six-eight month supply of inventory represents a balanced market.  We've got a slight buyers market at the present time. 

Want to know more?  Its easy.  Just contact me with any Southeast Texas residential real estate, home buying or selling question you have.  If I don't know the answer, I will find it for you.

Oh How House Hunting Has Changed

When my mother first started selling homes for Coldwell Banker, back when I was in middle school, before computers, cell phones, and the world wide web, the local MLS used to print books with all the listings.  They were like big telephone books with all the properties that were for sale.  As soon as a book was published it was out of date.  Homes went under contract every day just like they do now.  But the local MLS couldn't publish a new book every day so the information source went out of date almost the day it arrived.

By the time I started selling homes for clients, laptops and cell phones were tricks of the trade.  The local MLS boards had all gone to computerized data bases of the properties that were for sale through the multiple listing service.  Remember the old DOS data bases.  Ugh.  Yes, I do too and they were not user friendly.  Today, oh how house hunting has changed.

Coldwell Banker is committed to being the leader in technology in the real estate business.  One of the research studies done by the company shows how home buyers look for homes today.  Take a look.

 
  

• Over 80% of home buyers use the internet to find their next home.
• Over 80% of home buyers use a real estate agent to help them with the transaction.
• Yard signs are still a big factor in how home buyers find their next home.
• All other print media sources are a lot less important than they were a few years ago.

If you know home buyers are using the internet more than ever to find their next home then don't you think you should sell your home with the company that gives their client's homes more internet exposure than anyone else. 

Have you seen:

Coldwell Banker's YouTube Channel On Location

Coldwell Banker on facebook

Coldwell Banker's Seller Resources Website

And you have to see the new Coldwell Banker iphone app.  Its really sweet. 

Now before you sell your home ask yourself this, if most buyers these days start their home search on the internet don't you want to list with a company that will put your home in more places on the internet that any other company?  Yes, you do.  Oh, how house hunting has changed.

Within 15 Seconds Buyer Has Opinion of Your Home

The first impression is critical when it comes to selling your home.  You've probably heard the old saying, "You can never change your first impression".  But did you know that within fifteen seconds a buyer has developed a lasting opinion of your home that could ultimately be the difference between putting up a sold sign or waiting on another buyer.

Here's eight tips you need to know before you put your home on the market.

1. Buyers need to "feel at home", neutral colors, subtle background music, and a clean, new smell help set the stage.
2. Curb appeal can not be underestimated.  Landscape, trim shrubs, fertilize your lawn.  The yard is making an impression before a buyer even gets to your front door.
3. The doorway is a focal point.  Repaint, apply new hardware, install a new front light, and/or replace house numbers.  You'll be amazed at what small details can do to help you sell faster.
4. Appeal to a buyers sense of light.  People react more positive to bright light than dark space.
5. Appeal to a buyers sense of smell.  The smell of cleanliness can have a huge impact.  Lemon oil creates a lasting clean smell.  Fresh flowers can do the same.  Baking cookies or bread is a real attention getter.
6. Your kitchen is probably the most important room in the home.  If it needs updating you might want to get a few estimates.  The money you spend could mean a faster sale and higher sales price.
7. Small details have a big impact.  Any repair work left undone that the buyer sees will have him/her deducting value off your asking price. 
8. Know the neighborhood and understand the competition.  In order to sell your home in the shortest possible time for the highest price obtainable you need to consult with a local expert about the current market. 

Pay attention to these eight tips.  The end result can dramatically increase the saleability of your home.  Need some other home selling tips?  Call me. 

Selling Your Southeast Texas Home? Stop, Look, Read

September residential home sales data has just been released by the Beaumont MLS.  Its on its way to The Real Estate Center at Texas A&M. 

If you are currently selling your home or planning to put your home on the market soon then here's five things you need to know.

1. In all but three price categories we have an excess supply of inventory on the market.  (Six months supply is considered ideal for buyers and sellers)
2. In the higher price ranges, homes priced above $300,000, there is over a year supply of homes currently for sale.
3. Over $400,000 there is close to a 4 year supply at the current sales pace.
4. The majority of the home sales in September were in the $120,000-$150,000 price range.
5. Average sales price for September was $150,495.

Here's how it looks on a graph. 

Buyers in almost every price category have a good number of homes to choose from.  If you are trying to sell a home you need to know what your competition is doing.

Every home seller should know these three things about the competition:

1. How many homes in your neighborhood comparable to yours have sold in the past ninety days?
2. How many homes in your neighborhood comparable to yours are currently on the market?
3. What incentives (seller paid closing costs) have successful home sellers paid to get their home sold in the past ninety days?

If you are selling your home and you don't know these three things ask your real estate agent.  If you are planning to sell your home and want to know these things then contact me. You can reach me by blog, by phone, by text or email. 

 

Look At These Five Websites Before You Buy Your Next Home In Southeast Texas.

"Buyer Beware" is a phase that used to be commonly used in real estate transactions years ago.  Today, there are a lot more protections in place for home buyers and home sellers.  But it stills pays to be an informed purchaser. 

Take a look at these Five Websites.  You'll be amazed what you may or may not know about buying a home.

1. Texas Real Estate Commission Consumer Information Site
2. Texas Homeowners Insurance Site.  Find out about insurance.  Read up on Windstorm Certificates.
3. Texas Education Agency Site.  Find out about the schools in the area where you plan to buy your next home.
4. Texas Association of Real Estate Inspectors.  Find out why you should have a home inspection and what the useful information page has to say about wells, septic systems, radon gas, and other potential concerns.
5. Demographic Data provided by Sperlings Best Places.

After spending a little time on these websites you can consider yourself an educated buyer.  There's only one more thing you'll need and that's a local real estate expert to help you find the home of your dreams and guide you through the process.  That's where I can help. Call me and you'll be ready to start home shopping.   

Home Selling Strategies: What works in SE Texas.

Have you heard the expression, "Location, location, location."?  When it comes to the fair market value of a home location ranks up there at the top of the list. 

If you are trying to sell your home, the last thing you can change is your home's location.  So what is there for a home seller to do?

"Price, price, price" should be a home seller's central focus.  Pricing your home too high will hurt your chances of selling quickly and for the best price.  Buyers are smart shoppers these days.  They will be looking at your home and a number of other similar "competing" homes.  Your price will need to compare favorably to all the other homes the potential buyers have looked at.  I won't spend much time on price today.  To determine the best price to sell your home, you should have a REALTOR prepare a Competitive Market Analysis for you.  Most real estate agents will prepare one for no cost. 

So, you can't change the location.  And, you have selected the best price for your home. 

What else can you do? Here's four tips.

1. Make the First Impression Count!  Buyers will develop an opinion of your property in the first 15 seconds.  For tips on how to make the best first impression Coldwell Banker has put together a quick and easy checklist.
2. Consider having a home inspection done upfront.  Here's how this will help.  When you know the repairs your home will need, you can get estimates of the cost.  When you negotiate an offer, you will be in a more informed position on how much you can come off your asking price and what repairs will need to be done.  For more information on home inspections, the Texas Association of Real Estate Inspectors provides great information.
3. Consider taking out a home warranty with Seller's coverage.  American Home Shield has a warranty program for just under $400 that will cover any repairs to the heating systems, AC systems, Ductwork, Plumbing Stoppages, and more.  Almost every buyer asks for a home warranty as part of the purchase agreement these days.  For just a few dollars more a seller can take out coverage for themselves while the home is listed.  *As an added bonus, if you find repairs that need to be taken care of prior to closing, a home warranty may pay for some or most of the repairs.
4. Exposure is crucial.  About 80% of home buyers start their search on-line these days.  You will want to make sure the company you list your home with will place your home on the major Internet search sites.  REALTOR.com and Coldwell Banker.com are two of the most widely used sites with millions of hits per month.

Don't worry about the things you can't change when it comes to selling your home.  You can't change your location. You can't control the market but you can do several things to give your home an advantage over the competition.  Take these four tips and watch how fast you can sell your home.

Sell your Beaumont, TX home faster with a pricing strategy.

There might not be any "real tricks" to pricing a home for sale, but you should use a pricing strategy.

What's the theory behind a pricing strategy?

An easy explanation goes something like this. People make pricing judgments in mere seconds.  The good news is you can influence the judgment they make. 

The Wall Street Journal's Guide to Property, properly titled, The Real Estate Journal offers home sellers some advice on how to use a pricing strategy to set the price of your home.

Three main points:

1. Round number signal prestige, while precise number suggest a bargain.

2. Buyers anchor off the first digit, so $399,000 seems far cheaper than $400,000.

3. If you cut your asking price, make it easy to calculate the discount.

The article also offers four pricing tips to sell your home faster. 

• Looking slim
• Stacking up
• Sending messages
• Cutting prices

Want to learn the details?  Read the complete article Four Pricing Tricks to Help Sell Your Home Faster.  Curious how to price your home for a faster sale in Southeast Texas?  Call me.  I'll develop the best pricing strategy for your home. 

Five Things To Know Before Making an Offer.

Thinking of buying a home this spring?

There are five things you should know before making an offer on your dream home.

They may seem like common sense, but don't be fooled by your emotions.  Home buying is an exciting and often stressful experience. 

Follow these five tips and you will reap the rewards of a smart home purchase.

1. Determine your needs.  What you want and what you need can be two different things.  Do you have to have a two car garage?  Or would you like one but could live without it?  Be realistic.
2. See the competition. Make sure you see all the other homes that are for sale in the same neighborhood and price range. Click here for Freddie Mac home comparison tips.
3. Get pre-qualified with a reputable mortgage lender. You can do some number crunching on your own to give yourself an idea of a comfortable monthly payment.  Click here mortgage calculator and tools. But before you make an offer you'll want a pre-approval letter in hand. 
4. Plan a negotiating strategy. A local REALTOR is able to help you negotiate more effectively than you can on your own.  You will need comparative sales information on other homes that have recently sold in the neighborhood.  This will help determine the best price to offer. More tips on how to negotiate.
5. Have a back-up plan. Most sellers will counter a buyer's original offer.  You will need to know how much you are willing to go up in price from your offer.  Sometimes more than one offer comes in at once and your offer isn't accepted.  In these situations you need a back-up plan.  Realty Times offers more advice.

Follow these five tips.  Not only will you make a smarter offer, you are likely to save money by not paying too much.  It pays to be an educated home buyer.   

Photographs sell homes

Thinking of selling your home soon?  If so, take this tip.

" Make sure the Realtor you hire takes photographs of your home and puts them in the MLS and on the web." 

Most buyers start their home searches on the web these days (about 70% according to some studies).  But guess what, web listings with no photographs get the least number of clicks.  Buyers don't take the time to view text only ads.  In fact most of the major home search sites like Realtor.com have filters.  You can search based on the number of photographs as one of your main search criteria.  Coldwell Banker's website ranks as one of the most used home search websites by Nielsen/NetRatings a leader in net research.  Just recently, Coldwell Banker put out a new rule to all of its agents that they must have at least six photographs of a home for the home to be included in the Coldwell Banker website. 

Photographs sell homes. 

It seems hard to believe but some studies have reported that 4 in 10 listings on the Internet lack photos.  That's just a waste of time.  Why even put a listing on the net without photos?  Did you ever see a listing flier without a photo?  Well, I've seen a few but they don't get the same attention as those with good quality photographs.  Same holds true, even more true, for the web.  Buyers want to see photos.  Our Beaumont area MLS allows up to 9 photographs per listing.  There might be one an exception to the 6 photo minimum rule.  If you are selling vacant land, 6 photos might not be needed.  But that's about the only exception.  Every house has a front exterior view, rear exterior view, and at least 4 interior shots that can be used to help promote it to the buyers out there looking. 

Do you remember the tip?  Insist on six photographs.  Photographs sell homes.