Wayne Warshawsky

It isn't the first time I have heard about auctions but they really have become popular this year. I don't know if you have seen the ads or heard the buzz on the street but at the auctions you can get great deals on homes.

What if I told you that there is a reason why auctions have become so popular and it's not because banks are just liquidating homes with no regard for profit or loss. Auctions are the latest and greatest way to market and sell homes for the most money possible.

Here is how the system works... Most of the homes advertised for public auctions are homes that are currently listing with agents on the MLS. Agents are given a listing contract for a bank foreclosure with a specific time limit. During that time the agent markets the home and presents offers to the bank. If the agent sells the home that the story ends there. If the home does not sell in the time period allowed than the agent looses the listing and it goes to the auction.

Most auctions list a very low price for the homes. This is done to create the hype that is needed to draw in customers looking for a great deal. In actuality there is a reserve price that the bank puts on the home so that they don't lose more than they want to. It is interesting to note that the reserve price is usually the same price they would have taken a month earlier when the home was listed. (but I get ahead of myself) Think EBay and apply it to homes.

The auction is in all the papers and signs are posted for open houses to check out the home before you bid. Many people go through those homes during these preview weekend and they result in offers. Here is the good part.... The home is usually sold for more money than they could have bought it for from the listing agent just a short time earlier. After talking to one of these listing agents yesterday we both shook our heads at the EBay auction system that is selling these homes for prices we cannot seem to get from a regular listing. She told me about a home that was under contract for one price and it fell through due to a financing issue with the buyer. This home went to auction where it sold for 9K more than the buyer had it under contract for just a month earlier. The power of the auction is amazing.

I have been on coaching calls with people selling systems to implement an auction on a listing that just isn't selling. There seems to be big money in these systems and with the news telling us that real estate prices are falling (which they are not overall in North Texas) many buyers believe they are getting great deals on these "distressed" properties.

There are great deals to be had on homes in the Collin County area! Listed homes and even auction homes can be great investment property. I encourage you not to fall for the hype and do your research when buying a new home. Remember what everyone's parents told them. "If it looks too good to be true, it probably is".

It is something we do every year! This year it is on December 6^th and 7th. For us there are always homes to dream about. McKinney Historical Society invites homes in the Historic Downtown area to show off the architecture, vintage Furniture, history and Christmas decorations. This is the 35^th year for the tour of homes! Tickets are available at stores on the square including The Little Red Hen, The 120's, Alice's Tea Shop, Stained Glass of McKinney, Antique Collection and the Antique House. You can also buy tickets online at www.chestnutsquare.org or at Market Street in McKinney. Tickets are $15.00 and all the proceeds go to fund Chestnut Square which is a collection of 6 historic homes and the makings of a small town including a chapel, blacksmith shop, smoke house and a one room school house. The buildings are open for many occasions throughout the year showing how people lived in Collin County from 1854 - 1920.
Tour these Historic Homes of McKinney this year

1. Tracy and Glenda Montierth at 401 N. Bradley

2. Karen and David Firth at 504 N. Church

3. Jan and Robert Barstad at 801 N. Waddill

4. Dan and Fredda Perkins at 523 N. Hunt

5. Jim and Sue Gregg at 504 W. Virginia (The Virginia Rose)

See pictures of these homes at http://www.chestnutsquare.org/programs/2008HolidayTourofHomes.asp

The short answer is YES. There are several different programs that you can still come to the closing table with little to no money down. There is a wonderful program with the USDA that will finance 100% of the appraised value of a home. This program is only available in what is considered rural areas in North Texas. The USDA program covers homes in Melissa, Anna, Princeton, Little Elm and other outlying areas in the metroplex.

Another program is offered by HUD and it gives buyers the opportunity to buy for only $100.00 down. This program even can include some money to do some repairs.

For those who have served in our military the VA is still offering 100% financing on homes and land. Veterans programs have not changed! This could be the best choice for someone with these great benefits.

There have been quite a few 0 down programs that have gone the way of the dinosaurs in the past year but there are still a few that are still going strong. If you need some assistance in finding a little to no down home loan that give me a call. I have the knowledge and resources to help you.

There are quite a few things going on this week in the McKinney area that are inexpensive and a great alternative to knocking on doors.

1. Cottonwood Creek Baptist Church is having their Fall Festival this Friday evening from 5 pm till 8 pm. Each year this church goes all out to host a Halloween alternative to its members as well as the community. Most every room in the church is transformed to accommodate this event. They have over 40 games and many inflatable bounce houses as well as the tallest inflatable slide in Texas. There is also a special preschool area called Candy Land for the younger kids. David Hira (a local magician) will be performing every 15mins in the Worship Center for kids and parents alike. Food will be sold at the event and Coffee N Cream will be open for the adults. Admission is $5.00 per child over 3 yrs old, parents and children under 3 are free. www.cottonwoodcreek.org

2. Allen Premium Outlets is a place to trick or treat in style this Friday night from 4 pm till 7 pm. Dress up and wall around the outdoor mall and most of the 100 + stores will be handing out treats for all the witches and ghouls. There will be face painting and a special treat for the parents in the food court area. www.premiunoutlets.com

3. One of our newest home communities Tucker Hill is hosting Ghouls on the Lawn on Sunday Oct 26^th from 5pm till 8 pm. Kids and adults alike will enjoy roaming the community of beautiful homes meeting famous monsters strolling on the lawn. There will be a haunted house as well as pictures taken on a scary Hollywood set. Toast marshmallows around the fire pit and watch a classic monster movie on the lawn. All entertainment is rated G for kids and parents alike. Visit www.tuckerhilltx.com for more information.

4. One of our favorite places to be is always the downtown McKinney square and there is something going on there for Halloween as well. Scare on the Square is Friday at 4pm till 6 pm and the historic downtown is closed off for trick- or- treaters. Enjoy hayrides, great costumes and trick-or-treat in the unique shops in downtown. www.downtownmckinney.com

It has been depressing to turn on the news. I can see how people can be driven to despair on a steady diet of CNN. I would not be honest if I didn't admit to a nervous uncertainty with the upcoming elections coming up. Would it be surprising to you if I said we are really better off in North Texas than we were just a year ago?

We have seen a reduction in foreclosures in our area compared to last year. There are, in some areas, 2% less homes on the market for sale in our area. Sale prices overall are up an average of 2% for the homes that do sell! Let's put that in perspective. Home sellers have Less competition than last year. There are fewer buyers than last year but that is due to the fear generated by the conditions we are in not a lack of ability to buy. The standards for loans have increased and decrease the amount of buyers. The buyers who have been affected by this were relying on zero down payment loans and had marginal at best credit. Lenders are still lending and there are still many different programs like 3%,5% and even a $100.00 down payment home loan.

I think the best indicator I have seen in the doom and gloom of this month is the Carriage service in downtown McKinney. The first thing to go during any personal financial crisis is the entertainment budget. Shannon Cole the owner of Happy Trails Carriage Service is booked for the next couple of months. www.happytrailscarriage.com Don't tell her about the downturn! She is having her best year ever. Hopefully she doesn't get penalized for making more than 250k this year!