A Tale of Two Flippers!!

My daughter and I are a team at Home Team of America, in San Antonio.  What we do there is sell houses and show houses to buyers.  However, on the side we are a team in a family-type business of buying depressed homes, fixing them up, and then selling them.  I say it's a family-type business in that I am the buyer, my daughter helps with remodeling and acts as realtor when house goes on the market.  My son Jeff is the major carpenter on the remodel, but since he can't be here all the time as he lives in N. Texas and has a family and attends college for a new career in computer programming, I use licensed plumbers, electricians, and carpenters also.


When we are not working on a house, my daughter and I love to buy depressed furniture, pieces that we find at Goodwill, or a client wants to throw away and we take it, at garage sale buys, and also just on the curb throw-aways.  It's always fun to see something that someone no longer can use or a piece that's been so damaged, come to life again with a new purpose, use, or personality.  Yes, personality,  furniture has it!!  Furniture might say mid century modern until we remove a piece of trim and add some chrome and then its personality is industrial chic.  We might change the color and add a padded seat and it goes from classy to homey. 


Tera and I are both artists and crafters besides being handy with hammers, trowels, nail guns and paint rollers; but all these things go together.  We use a lot of our furniture redos as staging in our house flips.  Right now a zebra print hand-painted drink cart sits in the corner of the living room on newest flip, while my Diva Table painted with a little girl in mind, sits beside a twin bed in a bedroom staged for a little gal. 


I tell you all this to inform you that in the near future, possibly this afternoon, we will have a joint blog called A Tale of Two Flippers on BlogSpot.  We will show step by step how we take a piece and change it.  We are not always doing them together, so Tera may write one blog about something she's finished (she's great with filing cabinets and desks!) and I might write one about something I accomplished in a flip house or a piece of furniture I've refurbished.  I have two really recent ones, I took a wooden coffee table with glass insets, removed the glass and added chrome.  Painted the wood black, and it now sits in my den. 


I recently found a hat tree (painted yellow) at a garage sale for $10!!!  I painted it many coats of white, and am in the process of polyurethaning it for protection and shine, and making a upholstered bench.  Tera painted the bronze hooks to silver, and I can't wait to stage an entry with it once finished. 


So if you are interested in seeing old things come back to life, you might checkout ATaleofTwoFlippers.blogger.com   


 Here is a table that was brown when I found it and now sits in my dining room filled with grandkids books and blocks. (shown in two stages) None of finished table!  Just in progress.

CHANGES, CHANGES, AND MORE

                     




I have been so busy that I haven't written in over a year,


May. 2015, I bought a Fannie Mae repo in San Antonio where my daughter lives and works as a realtor, I spent all summer renovating it, and sold it the week I put it on the market.


This was so successful so I bought another larger one this year.  I lived in it in the converted garage for four months while renovating.  It has not sold yet.


I moved my license here, so if you need a house in San Antonio, my daughter and I are a team at Home Team of America,


If you have specific questions about flipping houses, ask and Ill address that in next post.

Prudential Ada Realtors Converts to Berkshire Hathaway HomeServices Anderson Properties

Our company was started by Ada Glenn over 40 years ago.  She was the first woman broker in Amarillo with her own company, and at the end of our company as Prudential Ada Realtors it was the only real estate company that was open when she started it.  Hers was the only company remaining from that time.

Back in the 70's her son Greg Glenn bought the company from Ada when she wanted to retire, and he ran it admirably for all these years.  He is one of the most respected realtors in Texas, evidenced by his appointment to the committee that writes our contracts down in Austin, Texas; evidenced by being Realtor of the Year in the past; evidenced by winning an ethics award locally that's never gone to a real estate company before.  I am partial to Greg, because he was my next door neighbor while we were raising our kids, and he's the only broker I even considered when I got my license.

In September, Greg sold the company to Anderson Properties in Houston; and recently we converted to Berkshire Hathaway HomeServices Anderson Properties and Greg no longer is our boss.  He is now a regular realtor like the rest of us, but it is going to be very hard for us to NOT go to him with problems, because he is so knowledgeable about everything that happens in real estate in Amarillo and Texas. 

We look forward to being a part of the BHHS group, as it has already won the award for most respected real estate company and most recognizable in the USA. 

So if you see BHHS signs popping up, know that it is Berkshire Hathaway.  The name has changed, but the people in our office are the same ethical, knowledgeable people who were there when it was Prudential Ada Realtors.

Rentals, Decorating and More

Since I last wrote on this blog, I've been busy.  I've bought 5 rentals, redecorated 7 houses, and am in the process of the 8th, and more and more I'm being asked questions about remodeling and rentals, and less about my real job of being a realtor so....I'm going to start writing more about what people are asking me about.

Rentals.  My experience is that buying low, even when repairs are necessary, is the way to go.  I have 5 rentals that cost less than $35,000 and they rent from $400 to $850.  Yet if I bought one at $70,000 I doubt I'd get more than $950 for it; so why spend more to get less. 

How do I find houses, real honest to gosh houses for this price.  Two of mine were rentals for realtors and they were tired of the business or needed funds for other things and they hadn't sold in several months+, taxes were soon going to be due and they wanted them sold before taxes were due.  Then two of them were estate homes.  Kids inherited houses needing repairs and taxes paid and they just wanted out.  My final one was a Fannie Mae repo.  So I say buy low, renovate, rent high.

Until next time.

Tuscany Home in the Woodlands, Amarillo, TX

This is a fabulous home!!  Open concept, huge living area with formal dining, eat-in kitchen with eating bar and island.  Granite throughout.  Jenn Air appliances and convection oven and microwave.

The owners arrived on a day when we had a hurricane-forced windstorm plus rain.  This was a scarey day in Amarillo.  But it made an impact and they replaced all the windows with high energy efficient ones, and all in front and in bedrooms are shatterproof.  Take a sledge hammer to them, and they might break but not shatter and send glass into your eyes, arms and legs. 

This home was custom built and no expense was spared.  The blown in insulation is top dog.  Gorgeous tile and wood floors, jetted tub, fireplace in the master bedroom.

The home features a bonus room upstairs plus bath, and on the way, stop at the bar and enjoy a little t.v., or go relax in the sunroom and watch t.v.  The covered patio outside is perfect for barbecues and the patio off the dining area is stupendous for great views of the western rolling plains. 

The house has a new roof, new faucets, new patio cover, and soon to have new master shower tiles.  Also the owers are offering a $2,000 paint allowance or will let you choose the paint color and they'll have it painted with a contract to purchase.

I love the pantry door that tells you just what it is.  And the utility is large, lots of storage and has granite too. 

See for yourself.  Visit the utube videos.  One is straight shots and one is a walking tour

Here's one link:  http://www.youtube.com/watch?v=UlRWSKVTiR0

This house will be open Sunday, May 11, from 2 to 4 p.m.  A door prize will be given to one lucky visitor. 

If you are interested in this home, email me at judydendy@sweethomeamarillo.com

Rentals are Booming.

Read an interesting article today about how investors are buying almost 33% of the houses and for cash.  How large corporations are buying hundreds at a time, and because of this are actually helping home prices go up in price.

They say that renting is at an all time high and that it seems to be the future.  More and more people can't afford a house and everyone has to have a place to live, so rentals are the way to go.

I bought a rental with a partner recently and paid cash and had it rented 3 days later.  Then we bought one that needed repairs.  We are about ready to rent it too.  Hoping it rents as easily as the first one did.  Wish I had the cash to buy more. 

If you need a rental in the Amarillo area, give me a call.  I'd love to help you find one.

New FHA Regulations in Regard to Collections and Judgments

Mike Clover sent me an interesting email, and I've received permission from him to quote his email.  This tells how FHA Regulations changed toward borrowers who have judgments or collections on their credit history.  He does a great job of giving information where you can understand it in a logical manner.

"In an effort to reduce risk in backing mortgage loans, HUD has once again revised its regulations, effective October 15. Mortgage Letter 2013-24 deals with credit analysis of collections and judgments, and outlines how lenders must proceed. As you probably know, the first step in FHA loan approval is use of the TOTAL Mortgage Scorecard.  This scorecard takes into account the presence of collections or judgments via the credit score. Should a borrower be approved through the TOTAL Mortgage Scorecard, no documentation or letters of explanations will be required. If TOTAL Mortgage Scorecard results in a "Refer," the lender must manually underwrite the loan – and must determine the cause of the collections or judgments. Was it disregard for financial obligations? Was it an inability to manage debt? Were there extenuating circumstances? In order to make this determination, the lender must gather supporting documentation, including a letter of explanation from the borrower for each outstanding collection account and/or judgment. It will be up to the lender to determine whether the explanation is consistent with other credit information in the file. Collections If the borrower's combined collection accounts equal $2,000 or more, the lender must perform a "Capacity Analysis." Medical collections and charge-offs are not included in this aggregate. However, collection accounts of a non-purchasing spouse ARE included here in Texas. Capacity analysis consists of one of the following: Payment in full of the collection account – using a verified acceptable source of funds. A payment agreement with the creditor, accompanied by a letter from the creditor verifying the monthly payment. This monthly payment will be included in the borrower's debt to income ratio. In the absence of a payment arrangement, the lender must calculate a monthly payment equal to 5% of the outstanding balance. This payment will be included in the borrower's debt to income ratio. Judgments Until now, borrowers were required to pay off court ordered judgments before being eligible for FHA insurance. Now there is an exception. Under the new regulations a loan may be approved if the borrower has entered into an agreement with the creditor to make regular monthly payments and has made a minimum of three such payments over a period of 3 or more months. Pre-payments will bring the balance down, but won't help with loan approval. The borrower must provide evidence that the payments have been made on time and in accordance with the agreement. And of course, the payment will be included when calculating the borrower's debt to income ratio. As with collections, in Texas and other community property states judgments against a non-purchasing spouse also must be paid off or meet the rules for exception. Disputed Accounts Many borrowers have found to their dismay that their credit reports contain inaccurate information. Some of that inaccurate information is the result of poor data entry, some is there because old accounts that should have "fallen off" the report have not been removed, some because the original bill was in dispute, and some are due to identity theft. Accounts that appear as "in dispute" on a borrower's credit report are not considered by TOTAL Mortgage Scorecard.  Therefore, they must be addressed in manual underwriting. Disputed accounts fall into two categories: Derogatory and Non-derogatory. Non-derogatory disputed accounts If a borrower is disputing non-derogatory accounts, the lender is not required to downgrade the application to "refer." However, if the dispute results in the borrower's monthly debt payments being lower than originallyindicated, he or she must provide documentation. Derogatory Disputed Accounts If the cumulative outstanding balance of such accounts is less than $1,000, a downgrade is not required. If the cumulative outstanding balance is $1,000 or more (excluding medical accounts) the borrower must provide a letter of explanation and documentation supporting the basis for the dispute. The lender must analyze the documentation to determine whether the account should be considered in the underwriting analysis. In contrast to collections and judgments, disputes involving a non-purchasing spouse are not included in the $1,000 aggregate balance. Identity Theft Disputed accounts resulting from identity theft and credit card theft are not included. However, the borrower must provide documentation verifying the charges as fraudulent. This can include a letter from the creditor and/or a police report. "

Part 1: Everything You Always Wanted to Know about HUD homes.

The above was a HUD home.  What does that mean?  Hud homes are homes lenders foreclosed on and HUD purchased them at a discounted rate and will put them on the market for homeowners.  There are several steps in this process.  But first know to find the homes on the market go to hudhomestore.com.  When you get there, click on the map for the state you are interested in.  A box will pop up and you can type in the county you are interested in and all the houses that are for sale through Hud will pop up.  If you click on a certain property, a page will come up with its picture and a bunch of choices and information about the property.  One choice that is important is the Addendums as that page as the property inspection report and tells you what they KNOW is wrong with the property.  They will give an estimate of the price to fix the problems they know about.  That doesn't mean there is nothing else wrong with the property, just what they found with their inspections.  But you are buying the property "as is".  HUD makes NO repairs. 

There are three types of listings:  lottery, exclusive, and extended.  What does that mean?  Lottery are Good Neighbor Homes.  If you are a nurse, a policeman, a fireman, an EMT, or a teacher, you can by that property for HALF the listed price.  Not a bad deal!!  But you must live in the home for a certain amount of time, or owe the other half of the listed price.  These listings last a certain amount of time, and if no offer is accepted, they change to Exclusive listings.

Exclusive listings are for home owners.  You must live in the house, it can't be an investment property for you.  If they find you never lived in the home but used it as an investment, they can actually charge you with fraud, and if your realtor knew you were going to use it as an investment instead of a home, they too can be charged and lose their license.  Don't try and fool HUD!!
They have a set date for bids to be opened, and if they open these bids and there are no acceptable ones, they they'll stay day to day for a certain number of days and they'll open the bids daily.  After that time period, the listing becomes Extended.

An Extended listing is now open to everyone, even investors.  Knowing that 25% of the homes sold in August were short sales and REOs (repos) you know that there are plenty of investors out there waiting for these Extended listings.  These homes usually need a lot of repairs, but at the price you can get them, usually an investor can make the repairs, fix the home up to look nice, and then resell and make a profit, or turn it into a rental. 

Two of my children have bought HUD homes in the Exclusive listing time period and gotten great homes for bargains.  One home is now appraised at $155,000 and he paid $100,000, and did less than $3,000 repairs to it.  The other got a 2300, 4 bedroom, 3 bath, two story valued at least at $125,000 and possibly more as it is in an HOA housing addition with its own elementary school for just $88,000.  This home was less than 10 years old!! 

People think of Hud homes as wrecks and in blighted communities, but the recession left millions of homes out there who were lost to foreclosure through job loss, not through deadbeat abandonment.  Oh, I've seen some that the owners tore up before moving because they were angry.  One had kicked in a wall in every single room, poured black oil down the stairs, and removed all the closet doors and the electrical box.  But this is not the norm.  Most are dirty, possibly filled with junk they left behind as they hurridly left before being locked out, but some are very nice, clean and livable, as both of my children's homes were. 

What type of repairs might be made.  Speaking of my kids, one had to put in new light fixtures, a dishwasher, a vanity, sink and 3 mirrors and faucets, and a disposal.  That was it!!  The other had to have the air conditioner worked on, a piece of siding changed out, and something in the bathroom, a faucet I believe, fixed, and two places in the kitchen the drywall had to be repaired.  That was all.  Neither had structural problems or major plumbing issues.  Both did have to replace air conditioner motors within the first year, but if they had listened to mama and gotten the home warranty when they purchased the house, then that would have been a $60 repair.  But home warranties are another issue and we can cover them another day.

In the end, HUD homes are a way of getting a deal on a house, but be prepared to lose a few.  Meaning the good ones get lots of bids.  You need to be prepared to bid at least the asking price, cash is better than a loan if possible, as HUD doesn't have to wait 30 days to close then, and be prepared the have your loan prequalified before making a bid.  Don't be too disappointed if on the day of the opening of the bid you didn't get it.  Both of my children did NOT get theirs upon opening.  My son was sent a message he did not get it but did he want to be in back-up position.  I, as his realtor, responded yes.  5 days later, on Friday we got an email that he was now in first place.  Obviously the winner had either decided not to buy, found something else, or didn't meet the 48 hour contract deadline.  When you are the lucky accepted bidder, you have 48 hours (2 business days) to get your contract paperwork all in.  You have to fedex it for overnight delivery.  If they do not get it in time, they are heartless and go to the back-up offer. 

My daughter bid time and time again and kept being over bid.  On the house she finally got, she was not the lucky winner, but took the back-up position and in a few days was notified she was the winner.  So remember to be patient.  Even if you don't win on the opening, take that back-up position and you may still end up with the house in a few days.

There are many other things to discuss about the HUD procedure, but you can find answers to the most asked questions at Hudhomestore.com.  One thing I DO like as a realtor, a realtor must represent you and put your bid in.  You pay their commission, not hud, but it can be within your loan.  You may not like this, but it will be a lot easier for you having someone do all the paperwork who is experienced at it, keeping up with all the deadlines, and protecting your interests.  And for me, the realtor, it might just keep me in business for another year or so.

Frank Dodd Act Could Affect Housing Market

We had a program recently on the Frank Dodd Act and how it will affect the housing market.

On January 10, 2014, the provisions kick in where borrowers can sue lenders when they start to foreclose for not doing due diligence by giving them a loan when they couldn't repay it.  Now who in their right mind thinks investors are going to give people loans if they can sue them when they don't pay them back.  I'm sure due diligence is done when a loan is made, that's what underwriting and loan approval and qualification is all about, but if a person is a deadbeat or a person runs into bad times like health problems or job losses, a lender has no way to prevent that.

It is  believed this will make getting a loan VERY VERY hard, and we may see a slow down in loans.  We may see realtors changing jobs.  We may see few people being able to buy a house.

Should the FHA loan go away, we could see conventional loans requiring 20% down for a loan, and the end of 30 year loans. 

So in summary, if you want to buy a home, do it before January 10, 2014.

Veterans You Need to Buy a Home with Your Benefits!!

I just saw an amazing question/answer program with the head of the VA loan program, called a Hangout.  I am an experienced realtor and have done quite a few Veteran home loans, but even I learned some things watching this, and I want to share some of the information.

They gave their 20 millionth loan recently, in 60 years (started in 1944) of helping veterans buy homes.  Last year was their 2nd biggest year of giving loans and they are on track this year to beat the best year.  Why is this so popular?

1.  There are 25 million veterans and yet only 1.8 million have a  loan.
2.  There is NO down payment with a VA loan and the closing costs can be rolled into the loan, or
      you can ask the seller to pay them and up to 4% of the prepaids. 
3.  Veterans walk away from the closing table with $$$$ in hand; which can be used to fix broken
      heaters later on or do rehabs right now.
4.  It's not your Father's or Grandfather's VA program.  It's updated, computer friendly, no paper,
     Instant approval on your military qualification.
5.  These loans have the fewest defaults for the past 5 years than any other kind of home loan.
6.  You can refinance them with no appraisal fees under their Streamline program.
7.  If you have another type of loan, you can still refinance into a VA.
8.  If you are disabled, you can get rid of property taxes.
9.  If you live in Texas, use this and the Texas land Board and get a lower interest rate.
10. The pest inspection makes sure you get a good home that termites have not eaten away.
11. The inspectors have lightened up and they only report dangerous situations, like live   
      electrical wires.
12.  They have added 1,200 new appraisers, so their appraisal times have speeded up to 10 days
       rather than 30, so the time to close is shorter.
13.  You earned this benefit - USE it.  If you have an inexperienced realtor or one who is
      judging things based on long ago experience, find a realtor who knows today's VA program
     and save your CASH for other things. 
14.  There is NO mortgage insurance.  With an FHA loan the mortgage insurance can cost you up
      to $50,000 more over the life of the loan.  Don't let any realtor tell you its cheaper to use FHA.

OK, I'm a proponent of VA loan.  I'm dealing with a house sale today using VA and TLB.  I've helped several veterans save interest, which means lower house payments.  A FHA loan can have $140 in mortgage insurance per month, why pay that if you qualify for a VA loan.  Isn't it worth waiting 15 extra days to close to save $50,000 in mortgage insurance AND have NO out of pocket costs and walk away from the closing table with $$$. 

If you are a veteran, and you are going to buy a home, be sure and use VA for your mortgage.

How to make your concrete look like tile.

I am listing a house that is fantastic, and the owner is an artist.  In her painting room, she has a floor that appears to be tile, but it is not; its concrete.  She laid out electrical tape in the shape of tile.  This kept the lines rough and one color and then she chose two colors to sprinkle in the squares and swirled them around.  No two tile is identical but by using the same two colors (she used white and a lighter gray than concrete) it appears they are tiles with small design differences. 

She said now when she makes a mess painting, its easy clean up.  I think this is awesome and would like to try it even maybe outside on a porch or patio. 

That brings me to another idea, what if you used stain instead, a richer look maybe?  Hmm

My Redecorated Listing in Amarillo!

Here is a picture of a kitchen I just remodeled for a new listing.  I've worked on the house for three weeks now.  This kitchen features a Bermuda Bronze tin backsplash - that's where all the shine comes from - a new vent hood over the gas range, and dark brown tile was replaced with this light colored tile featuring a green diamond inset.  I put a new coat of stain/varnish on the 1965 cabinets which also added some shine.  By using a light tile with a linear pattern, we not only brightened the space but made it appear bigger.  The one thing I was not able to get done due to the budget, was add new lights.  I was able to add 4 new canned lights in the living room through!!

Here is the dining area of the house.  This use to have a brown fiberboard wall that was dark and depressing and dark brown wood tone flooring.  By painting the fiberboard a cappuccino white with marshmallow white trim, we brightened the room; and added the same tile as in kitchen making it appear wider..  We used the mirror from Garden Ridge with tin accents to cover a phone jack that was on the wall and balanced that with an original piece of art I made using the splash from the kitchen to form a diamond on a green canvas, thus we have a green diamond surrounded by the splash, tying the art work to the kitchen splash and the combo room's flooring.  We put back the yellow café curtains that had been in the room before, but now they appear light and free, not sad and depressed.

The most changed room is the living room above.  This room was a dark-panalled brown room, with NO lighting, just a fan, dark trim and dark brown dated carpeting.  We put three to 4 coats of cappuccino white Glidden paint on the paneling, painted all trim and ceiling with marshmallow white Glidden paint, and added a new beige carpeting.  This room is now bright and light.  We also added 4 canned lights.  Remember it had NO lights, now it has 4.  This transformation has forced the words of "this doesn't look like the same house" from the owners and neighbors.  This is a 18 x 14 room, which is rather large for a 1,000 sq ft 1965 home, and now you can actually see the space.  Before when you walked in you felt like you were in a dungeon.  I can see in my minds-eye a entertainment center next to that closet, featuring a big flat screen t.v. and a nice sectional in front of the three windows on the west front of the house creating a wonderful family living space. 

We painted all ceilings marshmallow white which brightened the whole house, even the two dark paneled bedrooms and added wall to wall carpeting in the three bedrooms and hallway, which also got painted cappuccino white.  What an amazing transformation that made to the hallway, just opened it up. The three bedrooms got wall to wall new carpeting to match the living room, and the full bath/utility room and half bath in the master lost their dark carpeting and horrible smell (don't put carpeting around a potty, people) and received the same tile as the kitchen/dining combo.  By using the same carpeting and tile throughout, we made this house come together in a unison of harmony. We also added a light kit featuring 4 lights to the fan in the master, as before - just like the living room - there was NO light.  Never have I seen that before except in my son's house.  Go figure.

Now today the "for sale" sign goes up, the lockbox goes on, and this home is ready to welcome a new family to make 48 more years of wonderful memories.

I love redecorating - painting is my thing, trying new ideas like the Bermuda Bronze backsplash to create a new vibe feels great, and trying to be economical and not break the budget is a challenge I enjoy meeting.  So if you know someone looking for someone to transform their tired, outdated living space, tell them to call Judy Dendy, at Prudential Ada Realtors.  I not only sell real estate, I transform it into the 2013's mode.   806-672-3082.  I'm ready to start a new project, and I won't break your bank account. 

Making a Splash with Antiqued Tin!!

I have been redecorating a 1960's home for an estate here in Amarillo the past few weeks.  It was a very dark home with paneling in the living room, hallway and two bedrooms.  We decided to keep the paneling in the two bedrooms in case a day sleeper bought it.  But we painted the paneling a light cappuccino white and all the woodwork marshmallow white for a contrast and we are putting in a white tile with a green diamond in the middle in the kitchen, and baths.  The carpets are a light cappuccino also, and this home is going to really be light and airy.

Another problem we faced was that there were fans in the back bedroom and living room BUT NO LIGHTS.  Really, I'm not lying.  No lights in two rooms of the house.  So I bought light kits for both and then the electrician tells me that the fan in the living room is self-enclosed and can add a light kit.
I could have bought a new fan with light, but hey, if we are trying to make this house lighter and more moderns, why not canned lights.  So we added 4.  This really brightened up the living room.

The major place it is lighter is the hallway that was a paneled dungeon before.

But the thing I am most proud of is the splash in the kitchen.  We chose the Bermuda Bronze faux tin ones from Home Depot.  These are easy to cut to trim into place with scissors, and we used double-sided tape that is sold with the tin sheets.  However, I think after seeing it three days later, I might get some pretty little nails and nail the edges down so there is no bowing or bending.  This splash just sparkles.  Today I put gloss on the cabinets, and I'll do another one tomorrow and then Monday the tile and carpet goes in.

I will then post a picture of the finished product, but I can't wait to show you the splash so here it is:

 

I think the stove is about to be replaced too as the door fell off after this picture was made.  So Monday night I will try and post pictures of the finished room and maybe of some of the other changes.  I'm just so excited that the SPLASH made such a splash with the owners; who all think it is amazing!! 

 

I'm really enjoying this redecorating and hope to get more jobs in the future.  I hope my experience selling real estate will help me choose those items that buyers look for the most in a home and incorporate those items in the redecorating so that the homes sell faster. 

 

I will be listing this home for sale on Tuesday, so I have a vested interest in this being a great redecorated home.  Tonight I am working on an art project for the dining room to join a gorgeous tin metal mirror I got in Lewisville on a recent trip.  By bringing some of the tin into the dining room which adjoins the kitchen, the tin shiny theme can be continued and it looks like they are meant to be together.  I might do something for the living room too as this is kind of an open concept living/dining/kitchen combo. 

 

Hope you enjoy my redecorating story, and call me if I can help you too.  I can work on a very tight budget!!

Inventory is Low

It is time to SELL your property if you have been waiting.  During the recession we had over a year's supply of inventory on the market, but now we are down to 4.1 months.  Also home prices have risen, and you may be surprised at how much you could get today.

I sold a house in January in a subdivision for $218,000; sold almost the exact same house last week except for an additional garage stall and an extra 1/2 bath for $250,000.  Exact same square footage, same subdivision and only 2 streets apart.  This shows the increase is happening rapidly. 

So if you've been on the fence about selling, now is the time to jump into the market while it is HOT and a seller's market for the first time in years.  Plus the interest rates are still under 4% so you could move up cheaply or downsize to a great new payment.

Be sure you list with a realtor that has a large online presence, as 100% of buyers say they start online looking before calling a realtor.  My company, Prudential, has over 20 website presences your home would be presented on.  We have a proven track record for sellers' satisfaction. 

If you live in Amarillo, give me a call at 806 672 3082.

What February Looked like in Home Real Estate

Found a great article which I am quoting below on RIS Media below.  They do a great job of gathering information and putting it out there.  There are some interesting statistics below, but the main message is low inventory, rising prices, historically low interest rates, good time to buy:


February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of REALTORD®. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February, 2012.

February sales were at the highest level since the tax credit period of November 2009.

Lawrence Yun, NAR chief economist says that conditions for continued housing improvement are at play.  "Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise.  Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable,"  he says.  "The only headwinds are limited housing inventory which varies greatly around the country and credit conditions that remain too restrictive.

Total housing inventory at the end of February rose 9.6% to 1.94 million existing homes avialable for sale, which represents a 4.7 month supply at the current sales pace, up from 4.3 months in January, which was the lowest supply since May, 2005.  Listed inventory is 19.2 % below a year ago when there was a 6.4 month supply. 

The national median existing home price for all housing types was $173,600 in February, up 11.6% from Febraury, 2012.  The last time there were 12 consecutive months of year-over-year price increases was from June, 2005, to May, 2006.  The February gain is the strongest since November, 2005, when it was 12.9% above a year earlier. 

"A strong rise in home values is contributing to housing wealth recovery, which has risen by $1.4 trillion in the past year and looks to top that increase this year." Yun said.  "The extra consumer spending arising from growth in housing wealth is expected to be $70 billion to $110 billion this year. 

Distressed homes-foreclosures and short sales--acounted for 25% of February sales, up from 23% in January but down from 34% in February, 2012.  Fifteen percent of February sales were foreclosures, and 10% were short sales.  Foreclosures sold for an average discount of 18% below market value in February, while short sales were discounted 15%. 

Accoding to Freddie Mac, the national average commitment rate for a 30-year, conventional fixed-rate mortgage rose to 3.53% in Feburary from 3.41% in January;  it was 3.89% in Feburary 2012.
NAR President Gary Thomas, says interest rates remain extraordinarily low.  "In the history of mortgage interest rates since 1971, the 30-year fixed rate has been below 4% in only 15 months, and they have all been in the past 15 months," he sayd.  "Even with rising home prices, affordability remains historically favorable because home prices over-corrected during the downturn.  This means there is still great value for buyers in the current market."

The median time on market for all homes was 74 days in  February, which is 24% below 97 days in February, 2012.  Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed home took 77 days.  One out of three homes sold in February was on the market for less than a month.

First-time buyers account for 30% of puchases in February, unchagned from January; they were 32% in February 2012.

All-cash sales were at 32% of transactions in February, up from 28% in January;  they were 33% in February 2012.  investors, who account for most cash sales, pruchased 22% of homes in February, up from 19% in January; they were 23% in February 2012. 

What is UNPOPULAR with Today's Buyers?

Just read a great article about 4 things that turn buyers away from a house.  Then the people reading it could add their two cents and I picked up a pretty good list.  Not sure I agree with all of them, but some of them.

1.  POPCORN CEILINGS, dated, dirty, possibly has asbestos.  Bad thing to remove is they need scraping and are dusty, dusty to do.  If they've been painted over, even worse to get rid of.  One person said you can get thin sheetrock and cover them and then not have the dust and the asbestos abatement problem.  I LIKE THAT IDEA.  May check into that for my remaining 2 rooms that still have popcorn.  Not sure I could go thru another scape and dust job.

2.  Shiny, brass light fixtures.  Don't spend money to replace them, just paint them.  One can of paint might cover several fixtures.

3.  Hollywood light strips in bathrooms.  I'm sorry, I love mine.  Wouldn't want a bathroom without them for me. 

4.  Carpeting.  Most people they said want hardwoods.   EXCUSE ME, but I've had as many customers who hated hardwoods because of the coldness on their feet and preferred the carpet.  Others wanted stained concrete.  My suggestion is unless its ugly carpet, just get it cleaned.  If you are going to spend money on the floors, try doing hardwood in the dining room at least. 

5.  Mauve and peach.  Those colors scream old lady (Funny, I have mauve below the chair rail in my den because the carpeting on the stairs is a mauvy red.  I guess I need too paint.  Wait!!  I am old, I have 5 grandkids.)  Neutrals are better than almost any "color".

6.  Having rooms all different colors.  That is fine when you have kids and they want their favorite colored walls, but once you get ready to sell, neutralizing in one color is great.  I have started upstairs where the boys lived doing just that.  One had a black room.  I textured over that and painted it a neutral and have done the blues clues bathroom the same neutral.  I'm not sure I'll neutralize the blue bedroom up there just yet because there is blue carpeting in there; but will before I sell.  Most of my downstairs is blue so I'm sure when I get ready to sell, there will be alot of painting to be done first.

7.  Wallpaper.  Dated flowers are gone.  Today its painted walls or geometric wallpapers, but those can be offputting to the more conservative buyer.  Safer to stick with neutrals, but I have seen people go ga ga over red kitchens, so maybe sometimes it is ok to have a punch of color in a kitchen.

8.  Laminate.  WAIT,  I love my laminate.  I tored out the 4 inch tiles to get rid of grout and the laminate is so easy to clean!!  Well, buyers today prefer granite even though it doesn't hold up as well as laminate.  So if you have the $$$, change everything to granite; but if you don't I like the laminate that resembles granite.  Sometimes as realtors we have to touch it to tell the difference.  No one is using corian or 4 inch tiles any more.  Dont waste your money there.   Decorative tumbled stone back splashes are GREAT. 

9.  Front doors.  Absolutely I've seen people judge a home before they enter based on whether the door is nice or not.  Actually they judge it more if the door is rotted, peeling paint, or dirty.  Then they presume that the whole house has not been taken care of  So be sure your front door is pristine when you put your house on the market. 

10.  As realtors we say "classic" bathrooms when we mean PINK, BLUE, YELLOW, GREEN bathrooms, all done in 4 inch tile, including tub, toilet and sink.  Please at least change the toilet and sink.  There is a paint for the tiles that will cover and neutralize. 

I'm sure I could go on and on about things I see, but for today I'll stop with these.  They are in no particular order, as each is important to some buyers.  Some walk out upon seeing popcorn ceilings, some stay until they reach the classic bathrom.  Some won't enter if it has carpet, and some won't enter with hardwoods, so each person is different and this is just a list of "normal" irritating things buyers mention.  I'd love to hear what you HATE in a house when shopping for one. 

Contemporary home in Puckett was Totally Unique

I just saw the most amazing house in Pucket in Amarillo, Texas.  5568 sq ft for just $379,000.  That's about $60 a sq ft.  It was custom built with a garden room, two huge living rooms both with fireplaces, two staircases, 5 bedrooms, 5 baths, 2 master suites, 3 car garage, and a kitchen that all the cabinets were handpainted by an artist and no two sets of doors match the ones around them.  Very contemporary design.  Two staircases, and you could look down on the lower levels for a great view.  there was an upstairs deck.  Backyard featured a hot tub.  It was amazing.

8 Steps to Getting Your Finances in Order

8 Steps to Getting Your Finances in Order

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing downeverything you spend for one month. You’ll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Judy Dendy

Prudential Ada, Realtors

3300 Danvers

Amarillo, Texas 79106

806-355-9601 Office

806-672-3082 Cell

Sequestration Advice and Explanation

I have the power of attorney for my Mom, and her financial dude just sent out an investment letter about what all this Sequestration stuff is all about.  I want to quote some of what he said as an explanation of what is going on and who will be complaining and raising the roof and why.

"I thought you would be interested in the following commentary from investment strategist Kate Warne.  She discusses the possible impact of sequestration, the automatic spending cuts that are scheduled to take effect March. 1.

WILL SEQUESTRATION CAUSE A RECESSION?

When Congress acted to avoid the fiscal cliff in early 2013, they merely delayed the implementation of automatic spending cuts - called sequestration - until March 1.   These cuts to defense and non-defense discretionary spending were designed to force Congres to agree to more targeted and appropriate spending cuts.  However, at this time it appears that little progress is being made to prevent these automatic cuts, although they could still be avoided at the last minute.

NO RECESSION LIKELY

The Congressional Budget Office (CBO) estimated the sequestion spending cuts will reduce economic growth in 2013 by 0.6% to 0.8%.  We believe the economy is on track to expand at about a 2% pace, so sequestration could reduce 2013 growth to around 1.2%.  In addition, these spending cuts don't all happen immediately, spreading the impact over time, and there's a lot of uncertainty about exactly how they will be implemented.

We anticipate you'll hear alot about high profile cuts in critical military and social programs.  Spending cuts are painful.  But we also know that the squeaky wheel gets the grease.  Everyone whose budget is cut has an incentive to 'squeak' as loudly as possible, in hopes of getting their spending restored in the future.  Without judging the specifics, critical defense and social programs aren't likely to be threatened long-term by these cuts.  In other words, it probably won't be as bad as each political party or the media would have you believe.

Spending cuts reduce short-term economic growth, but it appears the economy will keep chugging along at a slow pace this year even with reduced government spending.  There may even be a benefit.  Slower growth this year could produce a rebound in 2014, raising the pace of economic growth closer to 3% according to the CBO.

LOOKING TOWARD THE NEXT DEFICIT DEADLINE

Although the stock market could react negatively to spending cuts, it's likely the sequestration deadline will receive less attention than others on the horizon.  everyone's focus is likely to shift to March 27, the deadline for Congress to pass another funding bill.  Without another continuing resolution or broad spending agreement, there could be a partial federal government shutdown.  Many expect revisions to the sequestration cuts as part of any agreeement to extend funding for current government spending.  So even if sequestration occurs, some of the cuts could be in place for only a short time. 

RECOMMENDATIONS FOR INVESTORS

Over the past few years, investors have occasionally been surprised by the impact of politics on the financial markets.  Congress and other policymakers have repeatedly waited until the last minute to make necessary decisions--and in many cases have simply delayed important decisions.  As a result long-term investors have learned to pay less attention to these short-term triggers of potential market volatility." 

That's all I will quote as the rest is their opinion about how to invest.

I wanted to share this as an explanation about what all this sequestration is about.  The media likes to use "fall off the cliff" and "sequestration" terms to keep us on the edge of our seats, but they fail to actually tell us what that means.  Listening to an interview with Boehner last night, he said some pretty plain, down-to-earth things, and you could tell the interviewer was aghast that he would tell the Congress and President to quit sitting around bad mouthing everyone and not pass a budget in how many years now!!  He said to get up off your lazy butts and get the work done!!  That's what the Tea Party has been saying, and regular Americans who have to live within their means, have been saying.  Get to work, make a budget, stay within your means, and make the cuts that need to be made - such as foreign aid can STOP, giving money to the movie industry is wasted money, etc.  Let's make a budget to run the country, and not give to all those special intererests that have nothing to do with government.  We are in this pickle because each politician has wanted to bring home the bacon to their constituents and look good in the voters eyes, when in fact the voters want a budget and a balanced one at that. 

Well, I hope this explanation has been helpful in showing you what is about to happen in Washington DC and how it will impact our economy.  

I'd like to add one thing.  I've been invested in the stockmarket for over a decade and politics rarely causes a movement except for a day or too HOWEVER when USA was downgraded, my investments took a major nosedive:  over 33% lost in two days, and it didn't recover like in past years when Congress shenanigans caused movement.  But when we were downgraded because we have too much debt, that did impact the market and many people lost their retirements.  My Mom never lost anything as she stayed in guaranteed interest rate type investments, but she also doesn't get the big jumps when things are good like other type of investors get.  What I'm trying to say is that what Congress does on cuts and budgeting might not impact the pace of the economy much from day to day, but if we get another downgrade, which is rumored, that could impact investments.  So it is critical for the USA to start living within its means and quit being the Santa Clause to all the needy, the disenfranchised, the foreign countries, the world.  We need to attack how to get our debts paid off and start living in the black.

 It's the same with people.  Alot of people were living above their means, buying too expensive of houses before 2008.  When the recession hit, millions lost their homes, jobs, and credit scores plummeted to below 600.  All of a sudden those downgrades in credit scores kept millions of people from being able to buy a home.  Some were people who never had a home to lose, but were students in college running up loan debt.  They have been penalized because of those who did live outside their means.  Same here, if the government continues to run up debt, the downgrades will happen, and these will affect us more than any of their arguing, and political maneuvering.  We need for our representatives to put the pedal to the metal and sit down, make some cuts, and get the budget balanced.

Stop!! Don't Put These 5 Things Down Your Drain!

Just read a great article on RIS about the 5 things not to put down your drain, and sometimes they are referring to the storm drain.

1.  Grease.  It can clog your drains when it hardens and make sewage back up into your house!!  Yuck.  Keep a large can under the sink to pour cooking grease into and then when full take it to a full-service recycler.

2.  Motor Oil.  Don't pour it down the outside drain.  Those drain to waterways.  One gallon can contaminate a million gallons of water.  Again, take it to a full-service recycler.

3."  Fertilizers. Nutrient overload causes algae to bloom which removes oxygen from the water. That litterally chokes the life from vital water creatures that help improve the water's quality. To avoid all that, use ONLY the amount of lawn chemicals you truly need and only when and where you need it."

4.  Old or unwanted medicine.  Don't flush unused meds unless it specificaly says so on the bottle. "Instead, throw the medicine in the trash in a sealed bag with coffee grounds or find a responsible medicine disposal company. Many pharmacies partner with companies that will take care of your old prescriptions properly and some of those companies allow you to reutrn your medications to them directly. Go to DoYourPar.com/Columns for more resources. "

5. " Pet waste. Don't forget to scoop the poop as pet waste is considered raw sewage because it contains parasites and harmful microorganisms that can be transmitted to humans. When it rains, these parasites and bacteria can be washed into nearby storm drains. It is best to clean up after your pet and dispose of it in the trashcan."

Terri Bennett the author is a tv meteorologist, eco-expert and author of Do Your Part: A practical guide for everyday green living available at DoYourPart.com. send questions to terri@doyourpart.com