Houston Real Estate starts to show signs of a recovery pulse as sales are almost flat, prices continued their up creep, inventories and days on market are shrinking and foreclosures are playing less and less of a role. 

Straight Answers to 9 Common Questions about Foreclosures

Transactions involving bank foreclosures come with their own original set of difficulties, and that’s not even counting obstacles created by institutional red tape and incompetence. So it’s only natural that when Buyers are looking to purchase REO foreclosures (assets owned and  liquidated by banks), plenty of questions arise. As they should. Given that we love answering  questions, it made sense to put together a list of the 10 questions most frequently asked by home buyers and demystifying them with some straight forward, plain speak answers. So, without further ado:

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Financing Investment Property: Top 3 Options, Pros and Cons

The benefits of purchasing and owning investment real estate are well known or you wouldn’t be here in the first place reading this post. But in order to make that ownership happen, you have to be aware of your financing options and know their pros and cons so you can put them to work within the right investment strategy. One financing options may be a perfect fit for one strategy and Nightmare on Elm Street for another. During our consultation sessions with our clients, this question comes up every single time as it very well should. And we always say, there’s no one-size-fits-all solution – you just have to know your options so you can pick the perfect fit.

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The Foreclosure Secret

The time has come for me to share with you a previously undisclosed Foreclosure Secret. Those that possess The Secret can not only save tons of money but they  will  be empowered to take action and start making money today. To date, I have not shared The Secret with anyone else, for fear that its power to disturb the balance in the foreclosure real estate market. I learned The Secret after years of experience dealing in the distressed property niche and once it came to me I keep seeing evidence of its power everywhere. I suggest you get pen and paper ready, because what you are about to learn will change your search forever.

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Bidding Wars: What should you offer on foreclosures?

If you have done so much as casually browse for Houston Homes lately, you know the current market offers a bank owned property selection the likes of which we have not seen in the recent past. From the ultra affordable neglected, to “I can’t believe this is a foreclosure” recent constructions, there’s a flavor out there for every taste. Say you started seriously looking at making at move at one of these homes, do you know what your offer should be? Is it a good idea to lowball, pay asking or give them even more? I’m pretty sure you want to pay the least amount possible, but don’t want to lose the deal either. In this post, we try to give you an idea on how to strike the right price balance. 

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All that shines is not gold: Finding a foreclosure deal in Houston

During the current economic crisis, “foreclosure” has turned into somewhat of a buzzword. The majority of home buyers who would have never considered these properties before, is now open to the idea of purchasing a home that might need some repairs if it’s going to land them a sweet deal. But even though the deals in the bank foreclosure landscape are available, they are not quite as plentiful as most think. Contrary to what most people believe, only 10-15% of REO homes (another term for “bank owned”) are sold below market value enough to constitute a good deal. The good news is banks are bringing properties on the Houston real estate market at a rate of 80-90 new foreclosures per week which puts the number of good deals from 8-10 each week. Identifying those deals takes us hours and hours of research daily. You, on the other hand, can simply sort through the good stuff on our Houston Foreclosures page.

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I Know Why Your Home Isn’t Selling

I have never even seen your house, its upgrades, curb appeal or that new air conditioner installed not too long ago. But trust me when I tell you that I know why your home isn’t selling. Whether acting alone, or in combination with each other, there are eight factors that scare away buyers worse then teenage girls at a horror movie screening:

The Price is Wrong

This factor sits at number one for a very good reason. Pricing a home above its true market value in a tough market can cause irreparable damage to your probability of success. Pick an agent that a) doesn’t just pretend but truly knows the market and its intricacies and b) you trust (vital!). Use up all your skepticism in scrutinizing agents but once you decide, listen to their pricing advice and price it right or watch it sit.

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Positive Indicators in June: Houston Real Estate Market Strengthens Further

The real estate market in the Houston Area showed further evidence of visible strengthening in the June 2009 sales figures released by HAR. Numbers moved in lockstep with a three month trend of improvements that has median sales prices rising, total sales falling at a slower pace and sound inventory levels.

1. Median Sales Prices rose 2.8% to $164.500 compared to 2008 for the second month in a row. Remember, prices rose about half that in May, they were virtually unchanged in April and they had been falling prior to that. Further evidence of a positive upward trend.
2. Average Sales Prices dropped 2.4% to $221,783 compared to 2008. They had been pretty much flat in May. More than a decline in prices, this indicates a shift towards lower priced properties as the first time homebuyer tax credit program works its way and provides incentives to purchase homes before November 30th.

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Unload that tenant occupied real estate and keep your sanity

So you cashed out of your local bloated market in California / Florida / Arizona circa 2006 and conquered some sweet new construction deal(s) in the Houston area. You know you weren’t alone as during that time everyone and their lovely mother was doing it. How could you pass it up, anyway? Brand new property, ridiculous price/SF, great cashflow, fully managed, investment heaven. Fast forward thirty six months and you find yourself fighting rising property taxes (a county’s gotta eat) and insurance rates eating away at your ROI like a monkey on a cupcake. Rent mostly covers expenses, but it might be time to exit that investment and go in a different direction.

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Preapproval Letter is Buyer’s Passport

It is a bit counterintuitive, I’ll give you that, upfront. It seems more rational to find the house you want to purchase first, then pursue financing options. But in this market, more than ever, the exact opposite is true. The preapproval letter from the lender is the necessary passport you must have to start buying a Houston Home. You wouln’t travel to a foreign country without your passport, would you? Didn’t think so.

There are several reasons why you should (and must) get a preapproval letter first...

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4 Strategies to sell your Houston Home this month

When the market shifts, like it did in late 2007, it is easy to get caught off guard as your decisions still take into account a market with ever increasing home values and an abundance of buyers. These decisions inevitably lead to an overpriced home that will stay unsold for months causing frustration and confusion. Let me be blunt with you: It does not matter what the home could have or should have sold for in 2006. Those rules no longer apply.

But there are 4 Strategies you can use today to get your Houston Home sold under the current market conditions...

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If you enjoyed these real estate articles, you may want to sign up for the Free RSS Feed. Or if we can help with anything Houston Real Estate or if you want to dive in and Search Houston Homes, 713.952.3200 is the number to start the conversation.

On Tuesday, HAR released the latest figures for the Houston Real Estate market activity during the month of April and as it's often been the case in the last year or so, the numbers were pretty mixed.

The Good

After three consecutive months of drops in the Median Sales Price, prices have stabilized. That's great news! In addition, there are fewer active listings on the market for sale now than there were a year ago. In other words we're looking at some of the healthiest inventory levels in the country. In April, it would take 6.1 months to sell all the existing inventory at the current rate of sales. In comparison, areas like Arizona and Florida have long been sporting absoprtion rates well in the double figures.

The Bad

Total number of sales continue their ongoing slide that started a year and a half ago. This is primarily due to a slower economy, tightened credit markets and stricter loan qualification requirements. Number of pending sales is also down - an indication that the end to slower sales is not quite here yet.

To Sum it Up

Numbers for April were definitely mixed but leaning closer to positive with stabilizing sales prices and goodlooking inventory levels. Increasing oil prices are also sure to give a boost to local economy and therefore to the demand for homes.

To see a video analysis head on over to ErionHouston.com

I get an email from the Texas Real Estate Political Action Committee (TREPAC) this afternoon about three proposed bills in the Texas Legislature that would allow counties to impose a real estate transfer tax to raise money for transportation projects. Needless to say, TREPAC is slightly biased in its view about these proposals so I decided to find out for myself. I read all three proposed bills, SB-950, SB-934, SB-942, arguments pro and con.

This idea stinks!

The only somewhat valid argument for a real estate transfer tax is that it can help keep property taxes under control. Newsflash: Texas already has the highest property tax rates in the country averaging around 2.5%. In comparison, Washington DC which has a real estate transfer tax of 1.1% has property tax rates of 1.3%. Not to mention that this proposal has fund raising as it primary purpose, not lowering property taxes.

The proposed bills in our Legislature leave it up to counties to set the rate but most estimates range from 0.5-1.5% of the transaction price. In some cases, this would increase the closing costs for buyers by thousands of dollars and edge them out of the market. This would result in stifled activity for the housing market and the six percent of the US economy it represents.