Dallas Appraiser L.L.C. wants your help and commentary on our Real Estate Blog

Title: 

Is An Old Home for You? - The Pros

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412

Summary:

If you prefer a home that is unique and has character, you probably are giving some thought to buying an older home. Before buying, it is a good idea to carefully evaluate the pros and cons of owning the home. In this article, we cover the positive benefits I have realized by owning a home built in 1825.

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Article Body:

If you prefer a home that is unique and has character, you probably are giving some thought to buying an older home. Before buying, it is a good idea to carefully evaluate the pros and cons of owning the home. In this article, we cover the positive benefits I have realized by owning a home built in 1825.

The Pros of An Old Home

I know a great couple that bought a house built in about 1825. The pair bought the home in 1972 and moved in on August 15th of that year. The following article is written by the wife telling of some of their positive experiences in the old house.

 While maintenance has certainly been an issue, there are more than a few positives to the home. Everything is real. There is no fake anything. Bricks are brick. Wood is wood. Slate is slate. Fireplace mantles, chair rail, crown molding, and baseboards are not dinky little things; they are beautifully proportioned. The floors are rich, wide, heart of pine planks.

There is a rich feeling of history and being connected to our country’s past that permeates through our neighborhood. George Washington grew up just across the river and trudged up the lane across the street from us daily to attend school. James Monroe and Mathew Fontain Maury (the “pathfinder of the seas”) lived within a block of us. Our house was used as a boys’ military academy (Philips’ Military Academy) prior to the War Between the States. Put together, one gets a feeling of wonder when walking around the community.

Old houses can also be a very good investment. First, there is a limited supply of them. With the popularity of historic societies and the preservation movement, people have become more appreciative of them. Precisely because of the center city locations of many of them (which provided drawbacks for us when we first moved here), they are often in what have become highly desirable locations. Our house is within two blocks of commuter rail that runs into downtown Washington, D.C. and many old cities have old house neighborhoods in terrific locations. Boston, Richmond, Savannah, and Charleston come to mind.

We paid $35,000 for our house in 1972. Within the last year, two houses within a block of us have sold for more than a million dollars. I have a feeling that our home may be the best investment we have ever made.

That about sums it up. Beauty. A sense of it being “real.” Feeling connected to the past. And a darned good investment to boot. Yup. We have spent some blood, sweat, and tears. Real money, too. But I would do it over again in a heart beat.”

Now obviously here in North Texas you would not be able to find the historical significance this couple’s old house holds, however you can still find rich history in older neighborhoods governed by historical societies.

Title: 

Is An Old Home for You? - The Cons

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656

Summary:

So you think you might like to buy an old home? Perhaps even something old enough to be historic? It is a good idea to carefully evaluate the pros and cons before you decide. There are plenty of both. Will the pros be valuable enough for you to be willing to cope with the cons? Where shall we start? With a cautionary tale, I think.

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Article Body:

So you think you might like to buy an old home? Perhaps even something old enough to be historic? It is a good idea to carefully evaluate the pros and cons before you decide. There are plenty of both. Will the pros be valuable enough for you to be willing to cope with the cons? Where shall we start? With a cautionary tale, I think.

The Cons of An Old Home

I know a great couple that bought a house built in about 1825. The pair bought the home in 1972 and moved in on August 15th of that year. The following article is written by the wife telling of their experience in the old house.

 “My husband had an out of town business meeting and left about 5 AM the next day. (What makes him so smart?) About an hour later, I started downstairs and flipped the switch to turn on the chandelier in the downstairs hall. Boy did I get light. There was a flash, and then what looked like lightening ran up the cord. I turned the switch off, but the fireworks continued. I ran and yelled for our sons (10 and 11 years old at the time). We got out a door off another hall and ran to our next door neighbor’s house to call the fire department. (This is a very exciting way to meet one’s new neighbors.) The fire department was really fast and got to our home before we got back ourselves.

By the time the husband returned late that evening, we had been visited by not just the fire department, but also an electrician (old wiring needed to be reworked and a fuse box replaced with circuit breakers), a painter (to get a price on fixing water and fire damage), and a floor refinisher (same reason as the painter), and both our sons had been offered marijuana. (Did I mention that beautiful old houses are often located in intercity areas and sometimes the whole neighborhood has not yet been completely restored to its original state of gentility?) We were asking ourselves, ìWhat have we done?î

Well, we had the wiring fixed, put off having the floors worked on and did the painting ourselves. We also paid tuition and fees to keep the boys in their old school district.

You have to be flexible to happily live in an old house. Nothing is a standard size. Right angles are purely coincidental. (The water damage mentioned above had showed us that the floor on the outside edge of the front hall is about six inches higher than floor on the far side of the living room.) Go to Lowe’s or Home Depot to buy a standard replacement this or that? Forget it. You are probably going to have to fabricate it yourself or have it done. You need to either have a large home maintenance budget, be prepared to invest a lot of ‘sweat equity’ or both.

The couple has lived in this same old house for over thirty years now. Items we have had adventures with include:

1. Plumbing,

2. Bringing in more electricity,

3. Replacing the heating system,

4. Repointing the chimneys,

5. Having dampers made for the chimneys so heat does not escape from them when they are not in use (did I mention we have four working fireplaces?),

6. Increasing the insulation, and

7. Painting many, many times.

Our house is real wood, not vinyl, and the roof is standing seam tin ñ the original roof. That, of course, means there is a lot of surface to paint, and, since the house is two stories and has high ceilings, some of the surfaces are pretty high. (Did I mention that my husband has fallen off the roof twice?) We are in the process of having our home painted (not a do it yourself project this time) yet again. The bids we got ranged from $15,000 to $20,000. (Did I mention you need a larger maintenance budget with an old house?)

Whew! I think the cons are clear, do not you? Owning an old home is wonderful. Just make sure you understand what you are getting into.”

Stay tuned and read the next article to hear about this couples “pros” of living in an older home.

Title: 

Invest In a Money Making Condo or Sustainable Living Project

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478

Summary:

Sustainable Living and Condo properties must surely be the investments of the future. Condo living is like having your own place but without the maintenance. It's like swimming in the pool without having to worry about the Ph balance.

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Article Body:

Condo properties must surely be the investment of the future, or if you believe in Agenda 21, then Sustainable living projects will be everywhere before you know it. Condo living is like having your own place but without the maintenance. It's like swimming in the pool without having to worry about the Ph balance. 

It's like being able to walk around lovely, large grounds without having to worry about when you are going to cut the lawn. It's about having your screen door get stuck without having to get down on your hands and knees to fix it.

And all these reasons are linked to the reason why it may be the investment buy of the future. It has to do with 'ease of living' - which has to do with the large numbers of baby boomers who are coming up to retirement age. They may not be into condos yet ..... Many of them may initially want to lead a more active life while they still have a surplus of energy.

However, perhaps by the time they are into their late seventies or eighties they may be looking for the easier life! A life with someone to help with the upkeep: a life in a condo! 

The sort of pampering that you can expect in a condo complex will largely depend on the type of service that is offered when you buy the place. The term full service is often quoted, but some full service tariffs are fuller than others! 

Before you purchase a condo, check the full service list. Does it have a limit on the yearly number of maintenance calls you are entitled to? Are there routine maintenance checks included in the contract? Is there a shopping shuttle and could you have any input into the choice of shop? 

Are there any rules in the prospectus that you would not like to concur with? For instance, are outdoor barbeques allowed on your balcony or patio? Is there limit time for noise at night? 

Ask to have the full service list in writing and dated. When you draw up a purchase agreement, have the full service list attached to it as an appendix and have the terms of it signed into the contract. 

Make sure that you do not only look into the lay-out of the unit and the facilities offered. There are other important factors. What is outside the resort wall? Anything? It has long been a complaint of condo-buyers that there is no nearby town to stroll to.

How private is the beach, if there is one. If you are considering buying a condo as an investment for possible future sale to a baby boomer, bear in mind that you will be opting for the facilities required by an older person.

Finally, when the sale time comes perhaps you will be too fond of your odd trips to the condo to want to sell it - maybe you should buy two while you're at it?

Title: 

Investing in Bankruptcy

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592

Summary:

Investing in bankruptcy properties can result in a substantial income if you invest in the right type of property.  In order to make sure you are investing in the right kind of bankruptcy properties make sure you know the local laws concerning bankruptcy properties, and what your plans are for the property.  Once you become familiar with what is profitable and what is not in investing bankruptcy properties you will become much more knowledgeable of bankruptcies.

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Article Body:

Investing in Bankruptcies

Investing in bankruptcies can be a big money maker for the real estate investor.  Investing in bankruptcies can result in a substantial income when you choose the right property.  There are several laws that can change from area to area that govern bankruptcies.  This means that there are risks involved to the investor, and being aware of these risks can help your investing tremendously.  

 A large risk that you face with bankruptcies is that the owner can come back and lay claim to their property.  Some states even have laws stating the bankruptcies are not complete for a certain amount of time.  You will have to determine if your region has this type of law protecting the homeowners when they file bankruptcy.  If this is the case you may want to make sure the home is vacant before making an offer on the property.  You do not want to put your money into something only to lose it when the homeowners get back on their feet. 

When the owner defaults on the mortgage a bankruptcy order is then put in place. The bank will start the proceedings necessary to regain possession of the property.  These bankruptcy properties are usually listed in the local paper under the sheriff’s sale heading.  The opening bid usually start at approximately two thirds of the appraised value of the home.  The highest bidder is awarded the property.  Investing in bankruptcies can greatly increase an investor's portfolio.  

Having a plan of action when you are investing in bankruptcies is a crucial part. The first thing you must do is determine what your plans for the property are.  Is it going to be a rental property or do you plan to flip the house?  Determining what you want to do with your properties beforehand is important so that you know what area to look in, and how you can make a profit from your new property. 

Choosing the bankruptcies carefully is a high priority.  You do not want to find bankruptcies which will be depreciating, instead look for high growth potential that will increase in value. Just because the price seems to be right does not mean the property is the one for you.  Determine what the average selling time was of the houses which have been sold. This will give you a good indication as to what you can get for the property you are looking at.

When investing in bankruptcies you should always look at the bottom line.  If you can not make a 10% or greater return on the investment then it is not a good property to purchase.  You must know your market. Looking at past sales in the area is key. Determining whether the area is growing or declining is an important factor in the bankruptcy. Knowing how long each house that sold stayed on the market is also significant. You may find bankruptcies which have been on the market for six months or more, this is a good indication that it is probably a bad investment. With all the other investors out there, if one of them did not want it, you probably do not want it either.

Once you become more familiar with investing in bankruptcies you will learn what to buy and what to avoid. You will understand which areas are good investments and which ones are not worth your time.  You will also be able to understand more of the real estate market and the lending red tape.  This will help when you are investing in bankruptcies.

Title: 

Investigate Surrounding Vacant Land Before Buying

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353

Summary:

Homebuyers are always looking for an ideal situation with low prices. If you are looking in an area with open land around it, you absolutely must investigate the plans for the area.

Keywords:

land, neighborhood, real estate, homes, houses, wal-mart, lots, vacant, zoning, regulations

Article Body:

Homebuyers are always looking for an ideal situation with low prices. If you are looking in an area with open land around it, you absolutely must investigate the plans for the area.

Investigate Surrounding Vacant Land Before Buying

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You have been out shopping for a home for months and have not found that perfect specimen. One day you come upon a home that meets your needs and fits your price. The home is on a little dead-end street. You are happy with this aspect because you have kids and view the lack of traffic as a positive. You also happen to note there is a big, open field behind the house, but think little of it. Simply put, you are playing with fire. 

Assume you go ahead and purchase the home. You move in, get the kids enrolled in school and basically get comfortable in your new home. After a month or so, you are laying in bed at six in the morning when there is suddenly an ungodly racket. You stagger out of bed and notice it coming from the backyard. Walking outside, you are met with an image of bulldozers grading the peaceful field behind you. Congratulations! You have just become a neighbor of a strip mall, Wal-Mart’s or some other monstrosity. 

You may think this never happens, but the exact opposite occurs every day. If there are vacant lots of land around a property you are considering buying, you must investigate them. Are they zoned only for residential use or is commercial zoning available?

If they are approved for commercial use, you need to give some serious thought to whether the property is for you. How will you feel about living next to a business area? How much traffic will it add to your neighborhood? How much noise pollution will there be? What will the commercial development do to the value of the home? These are all questions you must consider and answer. 

Finding a property in an area with plenty of open space sounds wonderful. If you investigate the area, you can avoid the situation turning into a nightmare.

Title: 

Invest Early To Make Your Dreams Come True

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367

Summary:

When looking for high quality vacation rentals, or a permanent home in an exotic location, pre-construction is often the way to go. What is pre-construction? Well, it means a home or condo that is still in the planning stages, but hasn't yet been built. The buyer purchases the home from the developer or builder-owner.

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Article Body:

When looking for high quality vacation rentals, or a permanent home in an exotic location, pre-construction is often the way to go. What is pre-construction? Well, it means a home or condo that is still in the planning stages, but hasn't yet been built. The buyer purchases the home from the developer or builder-owner. 

But how do you decide what to buy if it doesn't exist yet? Easy! The builder will have detailed blueprints for you to look over, as well as, usually, a model of the building. This gives potential buyers a pretty good idea of what they are getting into. There may even be already built structures that are very similar to the one you are considering. This will give you an idea of the builders quality. But even if you can't see an actual building, buying pre-construction is quite reliable as long as the builder is. Do a bit of research to find out what they have done in the past. If possible, talk to an owner of something else they have built to asses their level of satisfaction. If that isn't possible, a qualified agent will usually be quite familiar with local builders. 

A qualified agent can also help you sort out the legal details. For one, be sure to get written and signed documentation stating when the structure will be completed, and what exactly will be included. Find out if there is a home warranty, and what exactly it includes. Be sure there is an "out" for you if the construction is greatly delayed or if the finished product isn't what you understood it to be.

One of the great things about pre-construction is the price. Because they haven't yet realized their full potential, pre-construction real estate is often priced quite a bit lower than what it will be in the future. You, as a buyer, know that the property can only go up in value. After all, the home built will be brand new. As long as plenty of research has been done into the location, the builder, and the type of home, ensuring that it is an emerging market and not a declining one, you can't go wrong with pre-construction.

Title: 

Interior Staging of Your Home

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263

Summary:

There is a big question that you must consider when selling your home. How to best showcase the distinct qualities of your home and create a warm and inviting environment that will impress even the most critical buyer. Staging is a process that should be considered on a room to room basis.

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Article Body:

There is a big question that you must consider when selling your home. How to best showcase the distinct qualities of your home and create a warm and inviting environment that will impress even the most critical buyer. Staging is a process that should be considered on a room to room basis. No two rooms have the same features, its quite possible to find something to highlight in every room in your home. Is there a real "conversation piece" or element of the rooms that stands out to you? If so, roll with it and you should be able to come up with something very special. 

Good things to do when preparing to stage your home are really the basics, cleaning out any clutter, ensuring that the house is sparkling clean and that there is a feeling of comfort, but not one that is too personal. This is why it's a good idea to remove overly personal knickknacks and items. The idea is that people feel as comfortable in your home as possible and at the same time be able to picture their belongings in the space. 

A properly staged home will invite viewers in, and the properly highlighted aspects of the home will keep them interested and wanting to explore more of what your home has to offer. Pleasing smells are a big factor for many people. Comforting aromas such as cinnamon or the champion "fresh baked chocolate chip cookies" are great things to catch people's attention. Just remember, if you have cookie smell, buyers will want cookies to go with it!

Interested In an Interest Only Loan

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You have finally found the property of your dreams.  The contract has been signed and you are now in the process of finding exactly how you will be living and paying off the property for the next few years.  Your lender may have already contacted you and given you the options.  When the question comes up of what kind of loan you want, be prepared for the answer that will benefit you the most.  

One of the major types of loans that you may be offered is an interest only loan.  This loan is great for some that are getting involved in a home, but for others may not be as beneficial.  This loan works by you first paying off the bank interest that is added as a percentage to your loan.  After the interest is completely paid off, then you start paying off the house itself.  

If you are looking at an interest only loan, you will want to make sure that the standard interest rates at the time are in the lower percentage.  Interest only loans will have two types of interest rates that may be applied.  The first is a fixed interest rate, which will mean that the percentage you pay will stay the same the entire time that you have the loan.  The second will be a variable interest, where it will fluctuate according to the economy.  This type of interest rate is good if you want to pay higher or lower amounts at different times, but not good if your pay check doesn't have the same flexibility.  

The interest that you get with an interest only loan will be determined by the lender and how they decide to set up your loan.  It may also be determined by the amount of the down payment that you make and specific rules that are set to the loan.  Before signing the papers, make sure that you know how all of these apply and what it means.  

If you want to make sure that you get the best deal, then it will be important to know what the individual rules are.  By doing this, you can ensure that your payments are beneficial to you as well as everyone else.  One place to investigate is with the possibilities of an interest only loan.    

Title: 

Interior Upgrades - Added Selling Value

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420

Summary:

These days it is simply not enough to just throw your home onto the local real estate market and hope for the best. Agreed, sometimes this does work, but if you want to get top dollar for your home you are going to have to ensure that it is set apart from the majority of listed homes.

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Article Body:

These days it is simply not enough to just throw your home onto the local real estate market and hope for the best. Agreed, sometimes this does work, but if you want to get top dollar for your home you are going to have to ensure that it is set apart from the majority of listed homes. So how can the average home owner set their home apart from the others? Simple, make a few upgrades. But be sure to do it right.

There are several things that an average buyer takes into account when looking at a home. You probably already know what they are, after all you bought the home you are now selling right? A great area to start is in the kitchen. Are the appliances a touch out of date? Replacing them is well worth the expense as new stove, fridge and the like are extremely popular additions and something that prospective buyers notice right off the bat. Another thing that people rarely thing of is the condition of the floors. Floors become such an unnoticed part of our lives that they can be easy to overlook. Carpeted floors should always be steam or professionally cleaned before prospective buyers come anywhere near your home. If you have wood or laminate make sure to clean them with the proper cleaner for the surface. Be careful of which cleaner you use as some cleaners can damage wood or laminate. 

Now, take a look at your walls. Notice anything that could be improved? How about the color? Neutrality is gospel here. Outrageous colors may be exactly what defines your style but in keeping those when selling you can easily alienate a large group of buyers. Sticking with neutral colors will help you home to appeal to a greater number of people and give it a better chance of selling. Many buyers will be able to see through crazy colors, but not too many of them will want to have to repaint. 

Take some time and make sure to clean the house from top to bottom, removing clutter and personal items. These are things you will have to pack sooner or later anyway, best to get a head start on it. Removing personal items will also help buyers to place themselves in the home without seeing pictures of someone else's family everywhere. If you ever have any doubts or concerns, talk to your realtor and they should be able to help you get your home in tip-top shape for selling.

Title: 

2007 through 2008 Foreclosure Problem

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519

Summary:

The report released by Mortgage Bankers Association on Mortgage Foreclosure numbers, revealed that at present the 2007-2008 mortgage market was involved in the most awful foreclosure crisis in the recorded history. It is almost 15 percent of the sub prime borrowers defaulted and the prime borrowers have started to follow suit.

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Article Body:

The recent report released by Mortgage Bankers Association on Mortgage Foreclosure numbers, revealed that the 2007-2008 mortgage market was involved in the most awful foreclosure crisis in the recorded history. The foreclosure market was almost 15 percent of the sub prime borrowers who defaulted and the prime borrowers even started to follow suit during 2008. During the last few years, many people with the help of easy credit and adjustable rate mortgages bought big and expensive homes; thinking that when the home price will rise and they will be in profit.

The rate of foreclosure during the “Great Recession” was the highest point recorded 54 years back in the year of 1953. The number of sub prime borrowers those who are currently behind on their home loans has increased to 14.82 percent. The homes that were purchased with 2/28 adjustable rate mortgages were under the highest percentage of foreclosure. The credit crunch not only made mortgage financing tougher but also it also pushing more homeowners towards foreclosure.

According to Mortgage Bankers Association's survey during 2007; many folks knew the foreclosure crisis was likely to increase into 2008. Since during the last quarter of 2007, the foreclosure rates in states like California, Florida, Arizona, Indiana and in few other states almost touched the sky, so it was expected that the foreclosure problem would become worse in the coming period before it stabilizes again.

It was expected that the number of foreclosures and payback delinquencies would rise during the first quarter of 2008 and may be in the next quarter too. Since the mortgage interest rate was rising high once again due to the fall in the home prices, the act of refinancing had become more difficult for the current borrowers those who are not comfortable with their current interest rate and wants to refinance at some lower interest rate.

According to Mortgage Bankers Association, the main reasons behind the foreclosure crisis is the 2/28 adjustable rate mortgage and the economic condition that is under pressure. Most of the foreclosures in the mortgage market are the result of these adjustable rate mortgages that normally offers low introductory interest rates and when the rate adjusts after a few years, most of the homeowners find difficulty to meet their monthly payments. With more Adjustable rate mortgage expected to reset this year and in the coming year, it is probable that the rate of foreclosure will also increase during that time.

After Federal Reserve tried to stabilize and control the mortgage market by its cut down in the federal fund's rate. The democratic leaders are also concerned about the condition of the market. Last week they approached President's administration to appoint a person who will have the authority over the federal mortgage and will coordinate with the government to reduce the increasing number of home foreclosures. They also proposed for $200 million as funding for foreclosure prevention.

The leaders have also proposed to give government approved nonprofit money to the help the homeowners those who are facing problems in making their mortgage payments. If not the program, then at least the news can become a reason for temporary smile on the face of the homeowners and the lenders.

This past tense article makes all of us here in Texas thankful that most of our real estate values are stabile in most markets.