SE Texas Real Estate Talk

Finding Homes with Owner Financing in Southeast Texas

The topic of owner financing is a popular one.  In fact, the posts on the blog that get the most responses tend to be the posts about finding homes that offer owner financing.  We all know the banks and big lenders are harder to work with than ever.  Qualifying standards haven't been this strict in years.  This has led to a group of potential home buyers that can't buy a home through the traditional lenders. 

The only hope for these buyers is Owner Financing.  From time to time, it is interesting to see just how many home owners that are trying to sell their homes are willing to offer owner financing.  Take a look at this chart.

 

Out of the 2,700 plus homes that are for sale through the Beaumont MLS, at this time only 41 offer owner financing as an option for the buyer to purchase. 

"Just less than 2% of all homes listed offer owner financing at this time."

Here's 3 other noteworthy statistics about homes that offer owner financing in the Southeast Texas real estate market:

1. The average price is $138,430
2. The average days on the market is 153 which is a little higher than the overall average number of days on the market.
3. You can buy new construction with owner financing through a few home builders.

Kelley Family Investments is building new homes in Wolf Creek.  This builder offers owner financing.  His terms are pretty reasonable.  Home prices are in the middle 100's. 

Three other things to think about before you buy a home with owner financing:

1. Sellers are going to charge a higher interest rate than the banks.  On average expect to pay 7-10% in interest.
2. Every seller can set their own terms.  For example, some sellers may finance for 20 years.  Others may want a payoff in 5 years with a balloon payment.
3. As a buyer will you pay for an appraisal?  Its not a requirement with owner financing

There are a lot of things to consider when you decide to look for homes that offer owner financing.  .  With only about 2% of the homes for sale in Southeast Texas even offering owner financing, its not an easy way to find and buy a home.  It can be done but be prepared for the challenges. 

March Home Sales: Median Prices and Average Days on the Market

Here's the top five things you should know about March home sales in Southeast Texas:

1. 142 homes sold
2. $119,500 was the median price
3. 148 days is the average number of days it took for those homes to sell
4. 47 of the sales were paid for with cash
5. 43 buyers used conventional financing and 40 used FHA financing

Take a look at this:

 

148 sales for the month of March falls short of the 182 sales in March of 2010.  Even March of 2009 (183 sales) and March of 2008 (178) sales outpaced the month of March 2011. 

It continues to be a tough market for sellers in Southeast Texas.  Homes now average just two days shy of five months on the market.  Its more important than ever to price your home correctly from the start.  Homes get the most activity early on.  If there are no offers in the first two months adjust your price.  The longer a home stays on the market the less appealing it becomes to the buyers that are out there. 

Want more advice on how to sell your Southeast Texas home?  I serve all three MLS's in Southeast Texas.  Call me today for a complimentary market analysis and pricing strategy.

Beaumont's Most Expensive Home Sales

Since January 1, 2011 the high end housing market has been anything but hot but there's something that might surprise you about the high end homes that have sold this year.

First, a quiz question!

 How many homes have sold so far this year with a price tag of $500,000 or higher?  Here's your choices:

• A) 10
• B) 17
• C)  4
• D   1

If you answered "C" or the number 4 you are right.  Pat yourself on the back.  Its a tough market for sellers with high end properties.  There are currently 48 homes for sale in the Beaumont MLS with asking prices of $500,000 or higher.  Now, if you do a little math on that it means we have an excess supply of high end homes in Beaumont, Texas at the moment. 

Four things to know about Southeast Texas' most expensive homes that have sold in 2011.

1. All four are located in Beaumont.  Three were in the W 2 and one was in W4.
2. One was new construction, built by Bill Little and it sold for the asking price of $529,000.
3. Two seller's accepted offers more than 10% off their asking price.
4. Three of the homes sold in less than 115 days.  The market average is about 115 days.

Of course, there is more data I could share about Southeast Texas's most expensive home sales but I'll save it for another day.  Remember, no matter what your home buying budget is you will get the best deal when you work with a professional who knows the local Southeast Texas residential housing market.  That's where I can help. Call me when you are ready to start you home search. 

 

4 Model Home Tricks to Help You Sell Your Southeast Texas Home

If you have ever talked through a model home then you know they are designed to lure in buyer's with their appeal.  Builders hire interior designers and spend thousands of dollars making sure their model homes give off the best possible vibe. 

Did you know as a home seller in Southeast Texas you can use a few simple tricks of the professionals to help your home sell?

Here's four tips/tricks that will help you sell your home faster and for a better price:

1. The First Impression!  Research shows that a buyer has formed a lasting impression of your home within the first 15 seconds.  Here's what to do.  Put effort into the first room the buyer sees when they walk in the door.  Grab them right away and create a favorable impression.
2. Create a neutral environment!  The best way to make a buyer "feel at home" is to pay attention to the colors the buyer will see, the smells they will smell, and the sounds they will hear.  If any of these are distracting (ie: outdated or bold colors, odors, loud TV's or radios) they will distract the buyer from your home.
3. De-clutter to Create Space!   Over the years homeowners collect an amazing amount of stuff.  You might not even notice how full your home seems to a prospective buyer.  Take this tip, de-clutter.  We have a saying in real estate "clutter eats equity".  If you home seems crowded it makes the rooms seem small.  When you are trying to sell, its time to box stuff up and put it away.  You might even want to move some furniture to storage. 
4. Small Details Have Impact!  A house that shows poorly as a result of an overgrown lawn, peeling paint, or simply dirt and dust may create an overall feeling that the house has not been well cared for.  Buyers will start looking for other potential problems if they notice many small details that have been neglected.  Before marketing your home for sale take a good close look at how you can touch up, clean up the simple things. 

Southeast Texas home sellers are facing a lot of competition right now.  We have more homes for sale than we currently have buyers to buy them.  You have to assume the same buyer that looks at your home will have at least five or more comparable homes to look at also.  In order to sell your home at the best price in the faster time it has to stand out. 

If you need more professional guidance on how to sell your Southeast Texas home, contact me for a free home enhancement guide.  I'll work to help you get the best price in a time frame that works for your needs.  Call me today and let's get started.

Photo Credit:  "Magic Trick", Troy Holden

 

February Home Sales Data: Southeast Texas

Want to know which neighborhoods had the highest number of home sales for February?  What the median home prices are in the best selling areas and the average days homes were on the market?

Well, you are in luck.  Check out the chart.

 

February is not historically one of the best months for home sales.  2011 sticks to that norm.  Only 87 lucky home owners managed to sell their single family home during the month of February here in the Golden Triangle.  *Data from the Beaumont MLS.

The top five things to know about February home sales in Southeast Texas:

1. The top selling area was Beaumont's W2 neighorhood with 12 home sales recorded.
2. Beaumont's W4 area with neighborhoods such as: Barrington Heights, Fairfield and West Chase had the highest median sales price of $289,000.
3. The most affordable westend neighborhood in Beaumont is still W3 - the area roughly between Phelan and College. 
4. All of the top selling areas in Southeast Texas had an average days on the market of over 100.  Translation = Its taking home sellers about four months on average to sell.
5. Its still a buyers market in Beaumont, Lumberton, Vidor and all of Southeast Texas.  The inventory of available homes is close to an 11 month supply.

The last thing to know about the housing market in Southeast Texas is that it is still an incredible time to buy a home.  Disclaimer:  "Yes, I sell houses for my profession.  Honestly, I've never seen a better time to buy a home.  No, it won't be this way forever."  If you are ready to act now, call me today and we'll find you a great home at a great price.

Selecting the Best Broker to Represent You in a Residential Home Sale or Purchase Transaction

Southeast Texas offers home buyers and sellers a lot of choices when it comes to working with a professional real estate company.  So how do you know which real estate broker is the right one to represent you in a home purchase or sale?  Well, one place to start is with the market leader.  Take a look at the pie chart.

 

Coldwell Banker Southern Homes had the highest percent of market share in January 2011 for all homes sales recorded in the Beaumont MLS.  The pie chart shows the percent market share of the Northern sector of the Southeast Texas residential housing market. 

Here's something else you will want to know.  Right now there is a 16 month supply of homes in the Northern sector.   If you are serious about getting a good deal when buying a home in Southeast Texas you are going to want to work with the best real estate broker and agent you can find.  

If you want to make sure you choose the best agent for you, contact me.   My service guarantee is in writing and you don't pay a real estate fee until you close on a home. 

 

Buying a Home in Beaumont, Texas, a Little Homework Helps

• 

  7 Steps to Take Before You Buy a Home

  By doing your homework before you buy, you’ll feel more content about your new home. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Here in the Southeast Texas residential housing market you will find your money goes farther than in most areas.  With an median home price still under $150,000 most buyers are pleasantly surprised with the homes they have to choose from. 

Keep in mind, you won't find every feature you want in your home.  The article makes a good point, in that you should pick your top five "must haves" and your top five "would like to have" features in a home.  That will help you focus and it will also help your REALTOR know what homes to show you.  Another good point the article makes is that you should speak to a lender and get pre-approved before seriously looking at homes.  Here's why:  you need to know how much you can afford and it wastes your time to look at homes in the wrong price range.

First time home buyers, even second or third time home buyers have a lot things to consider when buying a home.  If you would like a free copy of a home buyers guide, call or email me.  I'd be glad to provide you with a home buyers guide to help you start your home buying process.

Home Sales in Southeast Texas: Five Year History

Let's start with a disclaimer:  Home sales include all areas of Southeast Texas including: Lumberton, Orange, Vidor, Sour Lake, Mid-County.  All data is from the Beaumont, Texas Multiple Listing Service.

Now let's look at the data!

First chart above shows the total number of homes that sold each month for the past five years.  Three facts worth taking note of:

1. 2007 is clearly the peak of the Southeast Texas housing market.
2. 2010 is clearly the trough of this five year cycle.
3. The month with the fewest overall sales is September 2008 (remember Hurricane Ike?)

Second chart below shows the trend line of total sales from Q1-Q3 for the past five years.  

The number 1 represents the year 2006.  The number 2 represents the year 2007.  So on.  You get the picture.  Three facts worth taking note of:

1. From peak to trough sales are down approximately 28%.
2. Since 2007 the total number of sales has been on a downward trend.
3. 1,664 is the average number of sales through Q3 during the five year history.

Third chart below is for the number crunchers reading this post. This one will show you the number of sales by month for each year.  

Three facts to think about:

1. Do you think this is the bottom of the cycle?  
2. What do you think it will take to get the Southeast Texas housing market back on track?
3. There will probably never be a better time to buy a house than right now. 

Let me know what you think about the Southeast Texas housing market.  Comments are always welcomed!  Better yet, contact me if you are ready to seize this opportunity and buy a house before the chance of a decade passes us by.

No More Foreclosures in Southeast Texas

 At least for now, so says the Texas Attorney General...

The Texas Attorney General's office has halted all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties, until mortgage companies have completed a review of their processes, including whether employees or agents "robosigned” affidavits and other documents recorded in Texas.

The AG suspension notices were sent to 30 mortgage-loan servicers doing business in Texas.

What's this all mean?

I think we are all still trying to figure that out.  Here's a little more information for those of you buying a foreclosure in Beaumont or any part of Texas for that matter.

Dallas News

Houston Chronicle

FAQ's Texas Association of REALTORS

If you want to learn more about buying and selling foreclosures in Jefferson County and Southeast Texas contact me today.

 

Slow Construction Zone in Beaumont, Texas

Its hard to be a home builder in Southeast Texas these days.  Since May 1, 2010 a grand total of eleven brand new, builder owned homes have closed in Beaumont, Texas.  Data comes from the Beaumont MLS. 

Those that did close averaged 183 days on the market.  That's six months for the mathematically challenged.  What to know how many brand new homes are available and waiting for a home buyer to come along?  Right now there are fifty one listed in Beaumont alone. 

You might be thinking the builders must be wheelin' and dealin' with home buyers about now.  That's where you'd be wrong.  Of the eleven sales that have occurred since May 1st all have been full price except for four. 

The average asking price of the homes that sold is $256,009.

The average sold price is $252,490.

Southeast Texas home builders seem content to hold on to their inventory rather than sell it at reduced prices in a difficult real estate market.  That's a good thing for other home sellers.  When the builders starting cutting prices, resale values also fall.  Buyers will buy new over resale when the prices are equal as a general rule of thumb. 

What are you going to pay for new construction in Beaumont, Texas?

In the Westend neighborhoods of Barrington Heights, Cottage Grove, The Meadows and Fairfield expect to pay from $110-130 per square foot of interior living space.  Out in Windemere you'll find a better price.  Just Construction is building a new home with granite, crown molding, and a lot of bells and whistles for about $105 per square foot. 

Now don't get me wrong there are good deals to be found but if you have your heart set on a brand new home be prepared to pay close to the builders price.  Even though its a slow time for residential construction - at least in Beaumont, Texas- the home builders seem prepared to wait on the right price instead of the fast sale.