Buying a home? Here’s your to-do list

You’ll have a team of real estate professionals working with you during the homebuying process—like lenders, inspectors, and appraisers, to name a few—but there are still some tasks that are all yours. Start by hiring a Texas REALTOR®, who will guide you through every step of the way, and taking care of a few to-dos that are all up to you. • Take care of your credit report. You should request copies of your credit report annually—especially before applying for a mortgage. Look for any issues or instances of identity theft. These won’t necessarily keep you from getting a mortgage, but you’ll have to take action to clear them up. • Set your realistic budget. If you need financing, your mortgage broker or banker will help you determine how much you can afford based on your income, debts, and credit history. He or she will then calculate what you’re eligible to borrow. Your job is to be ready to supply this information and set a price range that your Texas REALTOR® can use to find potential properties within your budget. • Get pre-approved. Your mortgage broker or banker can also help you get a pre-approval letter that states how much a lender is willing to let you borrow. When you’re ready to put an offer on a property, this letter will tell the seller you’re serious and you’ve already taken the first steps toward seeking funding. • Respond to requests quickly. You may be asked for copies of your financial statements, your tax records, or for your signature on forms. Your role is to provide this information in a timely manner so the requester can move forward. • Communicate with your Texas REALTOR®. If you’re feeling uncertain about part of the process, or you just have a nagging question, talk to your Texas REALTOR®. He or she will have the knowledge and experience to answer your questions.

Why should I care about the MLS?

A friend is encouraging me to use a Texas REALTOR® to sell my property because then the property will be listed in the MLS. What is an MLS? A multiple listing service (MLS) is a private database of properties listed for sale or lease that REALTORS® can access and contribute to. As MLS participants, REALTORS® use MLSs to share and receive listing information to better serve their clients. Each MLS in Texas generally represents a specified geographic area, and is governed by rules that participants must abide by to ensure accurate, up-to-date information. Listing your property in an MLS exposes it to a wide audience of real estate professionals and allows you to explain the terms and conditions under which you are marketing the property. In addition, your property will be included in the MLS’s download to websites consumers use to search for real estate listed for sale or lease. Hiring a Texas REALTOR® gives you a lot more than just access to the MLS. Click here to read about other ways a Texas REALTOR® brings value to your real estate transaction.

Real estate data is everywhere, but what does it mean?

We are swimming in data these days. In real estate, you can find statistics, trends, and numerical predictions on home sales prices, foreclosure rates, housing inventory, commercial real estate absorption rates, mortgage activity, prices per square foot, the value of remodeling projects, and more. But what do you do with all this information? Are the sources reliable and up-to-date? If the numbers are for your region (or state, city, or ZIP code), do they translate to your neighborhood, that street in that neighborhood, and that exact property on that street in that neighborhood? Most important of all, what do all those statistics mean to you if you’re getting ready to buy, sell, or lease a home or commercial property? It’s one thing to look at numbers on a website—quite another to do business in the actual world of real estate. A Texas REALTOR® lives those numbers day in and day out and knows how the data relate to actual properties and real world negotiations. So digest all the real estate data you can find. Then hire a Texas REALTOR® to help you sort it all out and achieve your goals.

Texas continues to outpace U.S. in household income growth, new home sales

Texas continues to be a national leader in median household income growth and new home sales, according to the 2015 Texas Homebuyers and Sellers Report released by the Texas Association of REALTORS®. Scott Kesner, chairman of the Texas Association of REALTORS®, commented, “Texas is one of the best states to buy a home in the U.S. because it’s one of the best places to work, do business, and raise a family. Our state’s lasting job and economic growth continues to bring higher incomes for Texas families and reaffirms new home sales and development as a critical component in meeting market demand.” From July 2013 to June 2014, the median household income of Texas homebuyers increased 5.9% year-over-year to $97,500. This is more than four times the increase in median household income among homebuyers nationally, which rose 1.4% to $84,500 during the same time frame. Additionally, 28% of Texas homes purchased between July 2013 and June 2014 were new homes, a 1% decrease from the previous time period yet still nearly double the share of new homes among U.S. home sales during the same time period. Nationally, the share of new home sales remained constant at 16% of all U.S. home purchases. Increased restrictions in lending standards and rising home prices in certain local markets continue to stifle the growth of first-time homebuyers in Texas. The percentage of first-time homebuyers in Texas decreased four percent to 29% of all Texas homebuyers between July 2013 and June 2014. Nationally, the percentage of first-time homebuyers decreased five percent to 33% of all U.S. homebuyers during the same time frame. As a result, Texas homebuyers are older and more likely to be married couples. From July 2013 to June 2014, the typical Texas homebuyer was 45 years old, an increase of two years from the previous report. The percentage of married homebuyers increased 1% year-over-year to 72%, compared to a 1% decrease to 65% nationally. Chairman Kesner concluded, “Housing affordability is not just a factor of income. It’s also dependent upon the buyer’s ability to qualify for a mortgage and to afford the ongoing costs of homeownership. The 84th Texas Legislature will consider several important issues this session that impact homeownership in Texas. Texas REALTORS® urge our state’s leaders to enforce policies that will continue to protect the rights and quality of life of Texas homeowners.” Other key statistics from the report include: Median household income among first-time homebuyers increased 5.8% year-over-year to $72,000 for first-time homebuyers in Texas and 2.3% to $68,300 for first-time homebuyers nationally. Meanwhile, median household income among repeat buyers decreased, dropping 8.9% to $97,500 in Texas and dipping 1% nationally to $95,000 year-over-year. Texans are buying newer, larger homes than homebuyers nationwide. The typical three-bedroom, two-bathroom home in Texas was 2,100 square feet and built in 2002. Nationally, the typical three-bedroom, two-bathroom home was 1,870 square feet and built in 1993. 16% of homebuyers in Texas purchased a multi-generational home due to children over the age of 18 or aging parents moving into the house. Nationally, this was 13%. The tenure of owning a home increased one year in both Texas and nationally from July 2013 to June 2014, to nine years in Texas and 10 years nationally. For Sale by Owner (FSBO) homes in Texas sold for 30% less than homes sold using a Texas REALTOR®. The average Texas FSBO home sold for $160,000, compared to $228,000 for the average REALTOR®-assisted home sale.

Thinking of selling your home yourself? Here’s what you need to know

If you’re wondering about the value of hiring a Texas REALTOR®, you’re not alone. But before you decide to do a FSBO (for sale by owner), see if you can answer these questions. How much your home is worth? When it comes to pricing, you can’t rely on estimator websites to give you an accurate value. Those sites don’t have data about what homes are selling for in your neighborhood or how your kitchen remodel affects your price. In addition, it’s easy to let your personal attachment to the property inflate the price. And be careful, because if you price it too high, it will linger on the market. But if you price it too low, you’ll lose out on money. Can you market your property? You can put a sign in your yard, post your property to a few classified websites, and maybe make some fliers to hang. How many potential buyers do you think that will bring you? Probably not a lot. Are you ready to show your house? If you do attract potential buyers, you’ll have to keep a flexible schedule to juggle showings. Don’t forget about the safety concerns associated with letting strangers into your home. Can you avoid legal problems? Real estate transactions are complex, and legal issues come up frequently. One small mistake on your part could cost you big, whether it’s because you’ll lose money or end up in a lawsuit. Be ready to spend time reading through paperwork and researching to make sure you’re not breaking the law. As you can see, selling your home on your own means investing your time in research, marketing, showing the property, and more tasks that aren’t even mentioned here. That’s probably why 87% of sellers in Texas used a Texas REALTOR® last year. Texas REALTORS® have access to accurate data to determine the right price for your property. They’re able to market your property more extensively than you could alone. Texas REALTORS® also take care of showings and vet potential buyers for you. And they can call the Texas Association of REALTORS® Legal Hotline, staffed by five attorneys who can answer their questions about real estate law and related matters. Instead of going it alone, talk to a Texas REALTOR®, who has the experience and tools to make your home sale go smoothly.

Laguna Atascosa Ocelot Soiree

Friends of the Laguna Atascosa National Wildlife Refuge invites you to the Ocelot Soiree. This will be an intimate evening to meet an ocelot. You can support ocelot conservation while enjoying an evening of fine wine and hors d' oeuvres fit for an ocelot's palate! Friday, March 6th 6:00 pm - 9:00 pm at Casa Mariposa - 112 Corral Ave. South Padre Island, TX. While you're here, don't forget to give me a call to view available South Padre Island Real Estate! (956) 433-6291