A money-saving tip 70% of homebuyers don't know about

How would you feel if you got home from the grocery store and found a $3 coupon on your kitchen table for the $8 bottle of olive oil you just bought? Frustrating, right? Now imagine your reaction if a similar thing happened after you bought a house. No, you're not going to find a coupon for your next home. But there are more than 2,200 homebuyer assistance programs in the U.S., many of which could save you thousands of dollars on your home purchase. Assistance programs exist for first-time buyers, people who work in certain professions, buyers with modest incomes, veterans, people who purchase certain types of properties, and other circumstances. Many of these programs reduce the amount of your downpayment, lower your closing costs, or provide a lower interest rate than you could otherwise get. Yet 70% of adults don't even know these programs exist, according to a survey by NeighborWorks America. If you were among that 70% before reading this, do something for your own good: Explore assistance programs on txhomeprograms.org. Better yet, work with a Texas REALTOR® to identify programs that may save you a bunch of money.

Give yourself an option

Whoever invented the undo function in computer software is one of my heroes. Think about it: If something doesn't turn out the way you intended, hit Control + Z and-poof-it never happened. There aren't many places in life where you get to undo your actions like that, but the option period in a real estate contract is one of them. It lets you walk away from purchasing property, legally undoing your contract. How do I know? At my REALTOR®'s urging, I purchased an option period in the contract to buy my current home. With three days remaining in that period, my home inspector found a leak in the plumbing system that he couldn't pin to a source. The next day, I had a plumber scour the house. I was ready to exercise my termination option, to undo the contract, if he couldn't figure out what was going on. He eventually located the source: a faulty valve in the sprinkler system. No big deal. The seller fixed it, and I bought the house. If that leak had turned out to be something larger, however, I had the chance to hit Control + Z on the whole deal. That's what the option period is for, and it's right there in your real estate contract.

A tug of war over the earnest money

A buyer backed out of purchasing my home and has asked for his earnest money back, but I think I'm entitled to keep his earnest money. He didn't cancel during the option period, and he hasn't given any other legitimate reason for backing out of the deal. How do I prove that I'm entitled to the earnest money? Also, can I continue to look for other buyers while I try to settle the earnest-money issue? If you and the buyer can't agree on who is entitled to the earnest money, it's prudent to settle that issue before putting your home back on the market. Getting the first contract formally terminated will ensure you can sell your home to someone else without risking a lawsuit that could stop that second transaction. Regarding your dispute with the buyer over the earnest money, Texas Real Estate Commission contracts require buyers and sellers to try to resolve disputes in mediation before heading to court If you're intent on putting your house back on the market before resolving your earnest-money dispute, keep in mind that many title companies will refuse to process a second transaction if the first contract has not been officially terminated. If that does not dissuade you, you should consult an attorney concerning the risks of proceeding with a subsequent sale of the property without a settlement of the earnest-money issue.

6 renovations that will give you the best-and lowest-return on investment

Thinking of adding a deck this year? Need to replace your garage door? While you may not be looking forward to spending money on those upgrades, there's good news: They may help your resale value. The 2015 Texas Remodel Valuation Report, released this week by the Texas Association of REALTORS(R), shows that garage door replacements recouped up to 107.6% of the total project cost, ranking in the top five most profitable projects nationwide, regionally, and in four Texas cities. Wood deck additions recouped up to 116% of their cost. Those aren't the only upgrades that were good investments in 2014. Here are three others you may want to consider: • Back-up power generator. The most profitable project, which recouped 129.2% of its cost. • Steel entry door. Installing this type of door recouped up to 113.2% of its cost. • Basement remodels. Projects that maximized existing square footage were good investments last year, with basement remodels recouping 98% of their project costs. And here are three you might want to save for another time: • Sunroom addition. This project showed the least return on investment, recouping as little as 29.3% of the total project cost. • Home-office remodel. Renovating a home office closely follows sunroom additions as one of the least profitable remodeling projects, recouping a maximum of 62.2% of the project cost. • Master-suite additions. Both typical and upscale renovations were unprofitable. These projects ranked among the five least profitable projects. View the full report on texasrealestate.com

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.