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

How to arrive at the best listing price for your property

Before you list your home for sale, you have to decide on an asking price. Many consumers consult real estate websites, but be aware that not all such websites have reliable information. The best source for reliable info A Texas REALTOR® has the accurate information you need to arrive at a competitive price to attract buyers. What makes a Texas REALTOR® a trusted source? One reason is that a Texas REALTOR® has access to actual sold data that he or she can use to determine the sales price of properties similar to yours. Some of the criteria used are: • Location. Properties in the same neighborhood or located as close as possible to yours. • Timing. Properties that were sold recently, preferably within the past few months. • Size. Properties that are relatively the same size based on square footage, number of floors, or the size of the lot. • Features. Properties with the same number of rooms, comparable amenities, or similar upgrades. How’s the market? Another important factor in determining a listing price is how your local real estate market is performing when you decide to sell. Is it a buyer’s market where inventory is high, or is it a seller’s market because there many homes listed? A Texas REALTOR® has the resources, experience, and knowledge to help you reach your real estate goals.

Can I send counteroffers to more than one buyer?

Three different buyers submitted offers for my house. Can I send counteroffers to all three and accept the response I like best? When you make an offer or counteroffer, you give the other party the power of acceptance to create a binding contract. Therefore, if each buyer accepts your counteroffer, you would be legally bound to sell the property to three different buyers. You could make a counteroffer to only one prospect. Or, if you’re working with a Texas REALTOR®, he or she can provide each buyer with the Texas Association of REALTORS® form Seller’s Invitation for Buyer to Submit New Offer. This form indicates that you aren’t accepting the original offer, and allows you to outline what you’re looking for in a subsequent offer. The form also states that your property will remain on the market, and that you may consider and accept other offers.

3 expenses other than the mortgage you need to be able to afford

Your loan terms greatly affect how much you can spend on a house, but the mortgage isn’t the only cost you need to take into account when buying property. Consider the government Find out what the property taxes are on a house. Will yours differ? You may not qualify for the same exemptions as the current owners, or you may not benefit from appraisal caps in place. Also, taxes can vary from one neighborhood to the next, so see if comparable homes relatively close to one another are subject to different taxing entities. The cost of membership Are you buying in a homeowners association? Fees for HOAs can reach several hundred dollars a month. That cost may be worth it to you for certain amenities, but you should factor this cost into your buying decision. Keep the lights on Even though utility costs are consistent within a community, the size of a house and its energy efficiency can mean great differences in your bills. You may be able to look at past bills from the utility company, or you can ask the current owners if they will provide copies of their past statements. Once you know how much your mortgage will cost, figure out what else will contribute to your monthly bills. Be sure to have your Texas REALTOR® help make these determinations.

How to increase the value of your home without spending a lot of money

Sellers, would you clear up the clutter in your home if you could increase your asking price by 3% to 5%? A survey done by the Consumer Reports National Research Center shows that this and other easy changes will do just that. According to Consumer Reports, basic cleaning and decluttering, simple kitchen and bathroom upgrades, painting the right spaces, and sprucing up your curb appeal are all low-cost investments that can land you hundreds of dollars in return. Get tips on what fixes to make, the cost if you do them yourself or hire an expert, and how much of a return you get on those investments in “Top 5 ways to boost the value of your home” from Consumer Reports.