August 2009

Want to buy a condo?

Adapted from “Going condo” by Scott Williams, which appeared in the August 2005 Texas Realtor magazine.

Buying a condo makes sense for many people. Maybe you’re single or newly married and don’t want the responsibility of maintaining a home. Or, perhaps, you’ve done the homeownership thing and now that you’ve retired and the kids have moved away, you want to downsize. No matter how much you know—or think you know—about the real estate market in your area, consider hiring a Texas Realtor who has experience helping clients buy condos.

You’re special
Not every real estate agent specializes in condos. Don’t assume that the agent who helped your friends buy a single-family home is the best person to assist you in your quest for a condominium. The legal requirements and contracts involved in buying a condo differ from those for other types of dwellings.

Find a Texas Realtor who’s done her homework on your area’s market. The agent should have researched condos in your community and should know people at the management companies in your area. It’s important for your agent to be current with condominium association rules and to be familiar with association management fees. Ask prospective agents the difference between condos, townhomes, and patio homes. Many Texas Realtors who specialize in first-time buyers have experience with condos.

Also, before you settle on the place of your dreams, talk to your mortgage lender; some lenders set different rates and fees for condo sales.

Be ready for layers
When buying a condo, you may be dealing with a management company instead of a selling consumer. While it’s usually easy to get an answer from a person selling a house, a company can be entirely different.

You may have to contact two or three people in the management company before you reach the person who can answer your question. Also, any requests for information or repairs during negotiations might pass through several hands—and will certainly take much longer to fulfill than similar requests made of a consumer.

Ask the tough questions
Your Realtor should ask the management company for a copy of its bylaws and for a resale certificate. Again, these requests take longer than many agents realize; a Texas Realtor familiar with purchasing condos will know to write in extra time to the contract.

Joie Laney, a San Antonio Realtor, says your Texas Realtor should submit a Condominium Information Statement to the management company and make sure it’s returned to her in 10 to 12 days. The document requires the management company to disclose lawsuits pending against the association, repairs that need to be made, and how much the association has budgeted to make repairs that year. She also says the Realtor should make sure the contract clearly identifies the buyer’s parking spots and whether those spots are permanent.

“You can buy a condo and find out later, ‘Oh, there’s no assigned parking,’” says Laney.

Make it legal
Laney says buyers and their Texas Realtors need to understand the legal differences between buying a single-family home and a condo. For instance, mortgage companies do not require condo buyers to buy homeowners insurance.

“You may have an upstairs condo and your dishwasher leaks and destroys the guy’s apartment downstairs,” Laney says, “and if you don’t have any coverage he has to sue you.” The management company, which collects fees from condo owners and is responsible for maintenance, isn’t responsible for repairing damage that occurs inside.

Daryl Mauldin, owner of the Daryl Mauldin Company in Houston, says contracts put together by developers of condo communities tend to be longer than the contracts Realtors use. The knock on such contracts is they’re designed to protect the developer rather than the buyer.

“It’s good to have an attorney review the contract for you,” he says.

So, whether you’re a first-time buyer or a real estate veteran, find a Texas Realtor who’s experienced with condominium sales. The time and effort you spend choosing the agent right for your purchase will be well worth it when you locate the perfect condo and enjoy a smooth transaction.

“Bottomed Out; The End is Here!”

-Consensus from RECON, Others on Housing Market-

“It appears we are at the bottom of the housing market in most Texas cities,” said Real Estate Center Director Mark Dotzour after reviewing the state’s latest home sale numbers.

“Housing affordability has never been higher. If you plan to live in the house for at least two or three years, now is the time to buy.”

“The Texas inventory of unsold new and existing homes is in good shape.”

“Zero Short-Term Rates Going Nowhere” -New York Times-
The Federal Reserve announced last week that it will keep its benchmark short-term interest rate at virtually zero for some time, while giving the most optimistic assessment of the national economy in more than a year, characterizing it as “leveling out.”

Mortgage rates should remain low as long as the federal government continues to purchase almost all residential mortgages. When they stop, rates will move up.

“If you are planning to build a home to retire to in the near future, now is a great time to do it. Contractors are plentiful, construction costs are lower and mortgage money is cheap,”

DFW Housing Looking Up-Dallas Morning News
“We are beginning to see some more positive trends in the housing market, which is great news,” said David Brown, head of the Dallas Metrostudy office. “Both the new home and resale closings during the last quarter suggest the market is bottoming out in sales volume.”

Houston’s Economy, Paychecks Flush –Houston Chronicle-
– Houstonians pocketed bigger raises than those in most other parts of the U.S., according to the U.S. Bureau of Labor Statistics. It was Houston’s relative prosperity and 8 percent unemployment rate that contributed to the area’s pay raises, according to Joel Wagher with Workforce Solutions.

Internet presence

There’s so much information on the Internet. Literally thousands of real estate sites are out there—all of them with some combination of raw data, opinions, and informative tips for selling your home. Some of these sites proclaim or insinuate that you are better-off selling your home by yourself—without professional representation.With all the available tools, you may be successful. Just remember … it doesn’t take much of a misstep to cost yourself thousands of dollars and a lot of aggravation. Consider a Texas REALTOR® to help you navigate a 21st century real estate transaction.

For instance, a property-valuation site may incorrectly value your home. If you use this information and place your home on the market at a price that’s too high or too low, you risk costing yourself money, additional time to sell, or both. Texas REALTORS® have the experience and knowledge to accurately price your home.

Telephone calls, property showings, open-house visitors, contract negotiations, transaction coordination, and legal risk are a part of the home-selling process. The game has changed, though—these days, you also have to post the property on the Web and market it through the Internet. Research from the National Association of REALTORS® indicates that more than 80% of buyers now heavily rely on the Internet for their home search. Potential buyers now expect lots of online content, especially pictures and video, and they want it to be high-quality, easy to find, organized, and informative.

Make sure you utilize the vast resources available to you on the Internet. And don’t forget to give buyers the online information they need to properly consider your home. If you need someone to help you make sense of real estate information available on the Web, look to a Texas REALTOR®.

Texas Association of Realtors®

SOLD – 623 N. Hampton Rd. (Oak Cliff) $149,900

Great July!

Just sitting hear reflecting on the past month. July started in Anaheim California with the International Barbershop Harmony convention and competition. The chorus I sing with, The Vocal Majority, competed and came in 2nd place. We, however, scored higher than we’ve ever scored before.   But congrats to the Ambassador’s of Harmony from St. Charles, MO, who won the gold medal. Their set was just freakin’ awesome.

Real estate kept me busy during July, working with both Buyers and Sellers. Closed 4 deals. Almost 5 deals, but one fell through. However, this listing is under contract again, and scheduled to close at the end of August.

I just want to say how much I appreciate my great clients that I work with. Because my business is referral based only, the great people that I’ve worked with in the past keep sending me people just like them. Thanks to all my past clients for helping my job get easier and easier.

Now that we are in August, people are thinking about school starts, football, and cooler weather on the way (hopefully). Right now, November 30 is the deadline for 1st time homebuyers to close on their new house and possibly be eligible to receive the $8,000 tax credit. So many of my clients this year are taking advantage of this, along with really low interest rates.

So, if you know someone who has never owned a home, or hasn’t owned one with the past 3 years, let them know that time is running out. AND, have them call me. I’d love to help.