This is my 6th post in my Spring TX first time home buyers series. I have chosen to discuss the Texas option fee and the home inspection in the same post. Your option period is typically that period of time where you do your home inspections. I have lived in four states and each state has handled the home inspection process in a different manner. In Texas all residential contracts have an "option fee" clause. This clause allows buyers and sellers to negotiate a specified time during which the buyer can fully evaluate the house. For this right, they buyer pays the seller a nonrefundable "option fee".
Once you have finished negotiations and all parties have signed the contract you now have a fully executed contract. Prior to this it was called an offer but you are now under contract. As a Spring TX first time home buyer you need to know that this is a legally binding contract. You have probably negotiated a certain amount of days for your option. You are now going to be in your option period. The option days start counting the day after the contract is fully executed by all parties.
Everything is negotiable but usually you will have put $100 (plus or minus) down for a 5 to 10 day option period. This option period gives you the time to do your home inspections. Typically a seller will allow you 10 days but I have found that many foreclosures only allow 5 to 7 days. These are not business days; time is of the essence and strict compliance with the time for performance is required.
You will need to quickly find an inspector to inspect the home. I have a list of home inspectors that I can give you or you are welcome to find your home inspector yourself. Most people only think of one or two questions to ask a home inspector. The most common being "How much is your fee" and "When you can inspect the home". Below I am including a list of additional questions you might ask.
The State of Texas does require testing and licensing of inspectors. Ask them about their training and what kind of license they have. The inspector may not inspect swimming pools, wells, septic tanks, wood destroying insects or other environmental test. You will likely need to arrange for those inspections separately. Sometimes the home inspector will have developed a relationship with a termite inspector or some of the other inspectors and can schedule that inspection for you. You will need to discuss that at the time you set the appointment. If not you will need to set the additional inspections yourself.
I have heard the saying that there are two types of homes in Texas one that 
has termites and one that is going to get them. What I am saying here is don't freak out if you find termites they are very common and treatment is fairly easy. I have seen brand new construction where they have found termites. The inspector should be able to give you an idea if there is any permanent damage.
The primary purpose of the inspection is to educate you so you can make an informed purchasing decision. If you are buying a re-sale home I can almost guarantee you that the inspector will find something; that is what you are paying them for. The big ticket items you will want to keep in mind are the foundation, the heat/air and the roof; almost everything else is small stuff.
Should you find something that needs to be repaired during the inspections you can either ask for repairs or negotiate an agreed upon price so that you can do the repairs yourselves. We will then fill out an Amendment to the contract which takes precedence over the Contract. If you remember right we had probably marked accept the property in its present condition on the Earnest money contract. The Amendment amends the contract for any repairs or other changes that are made.
If the repairs are more than what you want to do, or maybe you just got cold feet, you can back out for any reason during this option period and the only money you will lose is the money you put down for the option and the cost of your inspection. The earnest money will be returned to you in full as long as you provide the owner a termination letter in the agreed upon days. Again time is of the essence!
This is a Spring TX first time home buyers series and as I add additional post I will add the links. Please feel free to visit my prior post.
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If you are buying or relocating to Spring Texas and need help from a professional REALTOR®, Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332.
If you would like information about Spring TX please visit my websites at www.AgentwithResults.com and at www.ResultsRealtytx.com. The AgentwithResults site is rich in Content about Spring and the surrounding areas of Tomball, The Woodlands and Magnolia. If you prefer pictures with your content then visit my ResultsRealtyTX site.
Want to find out about new Spring TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.
Click the button to the left to search our local MLS.
In my last post we discussed what price a Spring TX first time home buyer might want to offer. In this post I am going to discuss the other items that we will need to negotiate. In Texas we have an 8 page resale contract. Price is what most Spring TX first time home buyer's think of when making an offer but there are a number of other terms that will also need to be negotiated.
I am going to go through the items on our Texas contract that I expect we will be negotiating.
Section 3 - Sale Price- I covered this extensively in my last post Spring TX First Time Home Buyers Guide - Part 4 - What price do we offer!
Section 4 - Financing - The only way we would not mark this sections is if you were paying cash for your transaction. If you are getting a loan we will be marking that "this contract is subject to buyer being approved for the financing described in the Third Party Financing Condition Addendum". We will be attaching the Third Party Financing addendum and it goes in to more detail about whether your financing is going to be conventional, FHA or VA.
Section 5- Earnest money - In our area it is typical to put either $500 or $1000 Earnest money down (depending on the price of the home). If the home is over $250,000 there's usually more earnest money put down. In other states it is often 1% of the purchase price; for the most part that is not the case here in our area of Texas. This is the place where we also decide what title company to use. When the seller pays for the title policy they often feel they should get to choose but it is a negotiable item between the buyer and the seller. Please note as soon as we finish negotiations the Earnest money will go to the title company we have chose and they will cash the check and hold the money in escrow.
Section 6 -Title policy and the survey - Typically in our area the seller pays for the title policy and the buyer pays for the survey. This is however totally negotiable between the buyer and the seller. If the seller has an existing survey this is the place where we request it. Most lenders will allow an old survey to be used if the survey has been done within the last 10 years and if nothing has changed. If a pool or fence has been put in then the survey will need to be re-done.
Section 7 - Property Condition-
7B- Seller's Disclosure notice pursuant to 5.008 Texas property code (notice) - This is where we mark that you have seen the seller's disclosures. If you have not seen the disclosures then we will mark how many days the seller has to provide it to you and you may back out if you see something you don't like in that amount of negotiated days. The one exception to providing a seller's disclosure is a foreclosure. The seller of a foreclosure is not required to furnish the notice under the Texas Property Code.
7D - Acceptance of Property Condition -You either accept the property in its present condition or there is a place that you can ask for specific repairs and treatments. I will be covering this in more detail when I write about the termination option.
7H - Residential Service Contracts - In today's age most sellers will pay for a buyer to have a one year home warranty. If there's a pool or spa we will typically try to negotiate coverage on that also. This is a totally negotiable item and if the seller declines you can still buy a policy yourself when we close. As I said most sellers will pay for a 1 year warranty but foreclosures and relocation companies may not offer this to the buyer. We will of course ask for it as all they can say is no.
Section 9 - Closing - This is where we put the closing date. I have found that this item often requires as much negotiation as the sales price.
Section 10 - Possession - We will either mark that possession is on closing or funding or it will be according to a temporary release. I almost always mark that possession is on closing and funding but if I was representing the seller I would come back and ask for closing plus 48 hours. Typically in that case there is not any money involved but it gives the seller time to get out. I have heard nightmare stories of the seller moving out and then everything fell apart. This is something that should be negotiated at the time we write the contract but it is something that I have found often comes up later.
Section 11 - Special Provisions - Rarely do I have to write anything in special provisions. On our old contracts we often wrote lots of items in this section but when the contracts were overhauled years ago they left no stone unturned or very few.
Section 12 - Settlement and Other Expense - If we are going to ask for any help from the seller with closing cost this is where it will go.
Section 16 - Mediation - Typically we are always going to mark that you would agree to mediate before you will sue. The exception on this is again foreclosures and relocation listings. They will typically not allow you to mark "will" on this.
Section 21 - Notices: - This is a place for you to write all your contact information.
Section 22 - Agreement of Parties - This is where the addenda we are attaching are marked. Typically we will have marked Third Party Financing Condition Addendum and Addendum for Property Subject to Mandatory membership in a Properties Owners' Association.
Section 23 - Termination Option - In this section you can put an option fee amount and a number of days. Typically this will be $100 and 10 days but again this is totally negotiable. This gives you the unrestricted right to terminate for the amount of days that we negotiate. This is the time to get your inspections done. I will be discussing this in more detail in my next post on home inspections. I always mark that the fee will be credited to you at closing. Time is of the essence for this paragraph and strict compliance with the time for performance is required. During this option period you may back out at an time and all you lose is the option money. The earnest money you put down will be refunded to you.
As you can see there are lots of items for the Spring TX first time home buyer to negotiate. I never fail to be amazed at what can end up being a hot button. I recently had someone buy one of my listing who could not agree on the Title Company on a prior home that they made an offer on. That one was amazing to me.
My job is to ensure that as a Spring TX first time home buyer you have the tools and information you need to make an informed decision. I will help you prepare the offer. Then I will present it to the seller on your behalf and try my best to get it accepted at your price and terms! My next post will be on the option period and the inspection.
This is a Spring TX first time home buyers series and as I add additional post I will add the links. Please feel free to visit my prior post.
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If you are buying or relocating to Spring Texas and need help from a professional REALTOR®, Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332.
If you would like information about Spring TX please visit my websites at www.AgentwithResults.com and at www.ResultsRealtytx.com. The AgentwithResults site is rich in Content about Spring and the surrounding areas of Tomball, The Woodlands and Magnolia. If you prefer pictures with your content then visit my ResultsRealtyTX site.
Want to find out about new Spring TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.
Click the button to the left to search our local MLS.
The above oak tree was a causality of Hurricane Ike. It is on Baker Street in Tomball which I travel often. I watched the artist sculpting the tree from my car as I traveled back and forth on Baker Street. I figured the cougars had something to do with the cougar being the mascot of Tomball High School.
I found a youtube video that our local Tomball Potpourri News made that explains it all. The artist who carved the tree is Master Wood Carver Nathan Smith, a local Tomball artist. He carved two cougars in a rocky cliff setting out of this fallen oak tree. Yes, the cougars are in recognition of The Tomball Cougars.
Please click here to watch the Youtube vidoe about the Tomball Cougar art sculptor! It is a very cool video and you can even watch Nathan Smith sculpting the cougars.
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If you are buying or relocating to Tomball Texas and need help from a professional REALTOR®, Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332.
If you would like information about Tomball please visit my websites at http://agentwithresults.com and at http://www.resultsrealtytx.com/. The AgentwithResults site is rich in Content about the area. If you prefer pictures with your content then visit my ResultsRealtyTX site.
Want to find out about new Tomball TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.
Click the button to the left to search our local MLS.
I'm often asked by my Spring TX first time home buyers "How much under the listing price should we offer?" This is an excellent question. As I had told you at the end of part 3 (the home search) we will run comparatives going back 6 months to see how the home is priced compared to other homes that have sold in the area.
I have found that Spring TX sellers price their home differently for different reasons.
1. Ridiculously Overpriced!
Often these sellers have an unrealistic expectation of what their home is worth. I have found these sellers usually shop real estate agents until they find one that will agree to list at their ridiculous price. These homes can be 10 to even 30% overpriced. These sellers may need a "dose of reality" for a few months before they begin to realize that their home is way overpriced as compared to others in the area. If we find a home that is overpriced like this and the listing is new on the market I have found it is sometimes better just to move on. The longer an overpriced home is for sale, the more likely we can get the seller to face reality and sell at a fair price.
2. A Little Overpriced!
These sellers usually fall into 2 categories:
1. The sellers that feel their home is worth every penny of their asking price.
2. Those that want to leave a little "negotiating" room.
These homes can be 4-10% overpriced. When running comparatives I find many homes that are just a little overpriced.
3. Priced At Fair Market Value These sellers have carefully and realistically studied other homes for sale. They have priced their homes very competitively. These homes usually sell within 4 weeks at or very near the listed price.
4. Priced Below Fair Market Value
These homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the real estate agent recommended too low of a price. These homes usually sell within 7-10 days, at or above the listed price. There are usually competing offers.
At this point we will want to discuss how the Spring TX home is priced and decide what we want to offer. You want to be careful in this step that you don't make such a low ball offer that you offend the seller. If the home is ridiculously overpriced then yes the seller may get offended but so be it. If the home is priced fairly you don't want to come in so low to offend the seller. Most sellers have left some room to negotiate and so it is okay to be a little aggressive but not so aggressive that it is offensive. I remember a listing I had where a low ball offer came in and they also asked for my clients' stainless steel grill and a bed. That was years ago when stainless steel grills were still VERY EXPENSIVE. During the negotiating another offer came in and he jumped at the other offer as these people had totally offended him. My seller was very attached to that grill (it was a standalone grill and was not attached to the house). Asking for the grill was way over the top as far as he was concerned.
Bank Protection 
Even by carefully studying homes for sale, it's sometimes difficult to establish Fair Market Value. If you're obtaining a new home loan, you'll be protected by the Professional Bank Appraisal. Home lenders want to make sure that you don't over-pay for a home. If the home does not meet value in the eyes of the bank appraiser, you'll be informed. At that time, we can re-negotiate the sale price or void the agreement and refund your earnest money deposit.
My job is to ensure that as a Spring TX first time home buyer you have the tools and information you need to make an informed decision. I will help you prepare the offer. Then I will present it to the seller on your behalf and try my best to get it accepted at your price and terms! My next post will be on the terms beside price that we will be negotiating.
This is a Spring TX first time home buyers series and as I add additional post I will add the links. Please feel free to visit my prior post.
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If you are buying or relocating to Spring Texas and need help from a professional REALTOR®, Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332.
If you would like information about Spring TX please visit my websites at www.AgentwithResults.com and at www.ResultsRealtytx.com. The AgentwithResults site is rich in Content about Spring and the surrounding areas of Tomball, The Woodlands and Magnolia. If you prefer pictures with your content then visit my ResultsRealtyTX site.
Want to find out about new Spring TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.
Click the button to the left to search our local MLS.
Now that you are pre-approved and have decided on the area you want to live in it is time to start searching for your Spring TX home. At this point you are going to have a list of homes that you have identified from your web search. We can then schedule a time that works for both of us to look for your home.
I don't recommend looking at more than 10 Spring TX homes at a time. I have found if you look at more than that it becomes difficult to remember what you have seen. You are going to want to bring a notebook along so you can take notes as we go. If you can tell that a home is not going to work then it is best just to move on to the next home.
My real estate mentor years ago gave me some wise advice. She told me to never sell a house that I couldn't resale. I have taken her instructions to heart and as we go through the Spring TX homes I will be looking for anything that would make this home hard to re-sale down the road. There are many things that can make a home hard to re-sale. What does the home back up to? It can be hard to re-sale homes that back up to businesses or roads. In our area a 2 bedroom one bathroom home would be another example of being functionally obsolete. Almost all homes in our area have at least 3 bedrooms with 2 bathrooms.
In the Spring TX area where the master bedroom is located is a big deal also. Most buyers prefer either a one story or the master bedroom downstairs. If you buy a home with all bedrooms up you just have to realize when you go to re-sale the home it might take a little longer and you will probably not get as much for your home. On the plus side you probably got a good deal when you bought the home. I have to 
admit we did not realize this when we bought here almost 13 years ago and coming from the north all of our bedrooms are upstairs. Back then my husband was a day sleeper so I don't know that we would have bought with a master bedroom downstairs anyway.
Once you have narrowed down the homes that you are interested in we will want to compare these homes to other homes that have sold in that area in the last 6 months. Sometimes this will tell you that the home is priced good and other times it might tell you that the home seems to be a little over priced for the area. Recently I did comparatives for a client and we found that the home was fairly overpriced; in doing the comparatives we found another home that was priced good with similar square footage. In this case my client ended up buying the comparative. Doing a buyer's comparative analysis will then give you the information you need to make an educated offer. My next post will cover what price to offer for your Spring Texas home.
This is a Spring TX first time home buyers series and as I add additional post I will add the links. Please feel free to visit my prior post.
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If you are buying or relocating to Spring Texas and need help from a professional REALTOR®, Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332.
If you would like information about Spring TX please visit my websites at www.AgentwithResults.com and at www.ResultsRealtytx.com. The AgentwithResults site is rich in Content about Spring and the surrounding areas of Tomball, The Woodlands and Magnolia. If you prefer pictures with your content then visit my ResultsRealtyTX site.
Want to find out about new Spring TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.
Click the button to the left to search our local MLS.
Marchel Peterson broker/owner Results Realty specializing in residential real estate, homes, properties and acreage in Spring, Tomball, Magnolia and the Woodlands Texas.
Welcome to my profile the gateway to information about the Spring TX area and the surrounding areas of Tomball, Magnolia, and The Woodlands. Where you can learn about single family homes, homes with acreage, horse property, town homes or vacant land and an entire MLS Search that is updated daily. My slogan "COMMUNICATION FOR RESULTS", is not only my business philosophy, it is a commitment to provide you with exemplary personalized service beyond your expectations. My job is to listen, hear and understand your needs. A quality of business conduct that often seems forgotten in our fast paced, highly automated society.
As your REALTOR®, it is my job to understand your needs and respond to them promptly, professionally and with integrity. It is my pledge to provide you with sound real estate advice, helping you to understand the wisdom of the decisions you make. I have surrounded myself with excellent consumer service focused professioanls which include mortgage lenders, home inspectors, title companies, appraisers and insurance companies.
Whether you are looking for a single family home, a home with acreage, horse property, a town home, or vacant land, my Automated Real Estate Search can find it for you. Click here to learn about new listings even before most REALTORS!
Spring Texas real estate is plentiful with new custom homes, new builder homes, and resale homes available. Housing Prices Range from $70,000 to over $1,000,000. Homes on land are getting a little harder to find but there are still some properties available where you can get small acreage sites with a home. Spring is an easy commute in to Houston. It is also very assessible to all the amenities of The Woodlands..
Spring Texas covers a large geographic area located along I-45, about 20 miles north of Houston. Most of Spring is in unincorporated Northwest Harris County but part of Spring extends in to unincorporated Montgomery County. Spring" does not have official boundaries since it is not incorporated; there is not an actual town of Spring. The area is close enough to Houston to be able to enjoy the amenities but far enough away to still feel like you are in the country. It is very accessible to the amenities of the Woodlands
The Spring area covers three different school districts. To the east of I-45 in Harris county you will find Spring ISD. To the west of I-45 also in Harris county is Klein ISD and to the north in Montgomery county is Conroe ISD.
Golf is big around the Spring area with many golf course communities such as Augusta Pines, Gleannloch Farms
, Windrose and Northampton to name a few. They all offer exceptional amenities with a variety of lakes, walking paths, aquatic centers, equestrian complexes and community centers.
The area was settled by German immigrants in 1840. The Wunsche family settled in the area and began farming the land. The area had a tremendous growth after the railroad was built through the town in 1871. The town served as a railroad center in the early 1900's. You can visit the Spring Texas Historical Museum to find out a more complete history of the area.
Old Town Spring is a restored railroad village of the early 1900s with some 150 shops featuring antiques, arts, crafts, clothing, and restaurants. It is open Tues.-Sat. 10 a.m. - 5 p.m., Sun. noon- 5 p.m. I-45 at Spring Cypress Road, Exit 70A, and one mile east.
The area is booming with many new shopping facilities opening up. A new Wal-mart has been built at the corner of 2920 and Kuykendahl which has made shopping much more accessible for the rural areas of Spring.
Tomball Texas is located approximately 28 miles northwest of Houston along State Highway 249. Unlike most of Northwest Harris County which is unincorporated the city of Tomball is an actual town. The City of Tomball has a local government, city ordinances, public works, city council, community center. The City's slogan is the hometown with a heart and with the warm friendly people they truly are.
With a rich history; the town has been around for over 90 years. It was first a railroad town and then became an oil town. The town was named after State Senator Thomas Henry Ball in 1907. Thomas Ball helped the town get established as a railroad center. Dramatic changes happened back in 1933 when oil hit. A 100-foot gusher totally changed the area attracting hundreds of new people to the community. The city made a deal with Humble Oil and Gas allowing them to drill in the city. As part of the agreement the residents had free oil and gas for 50 years. The town was featured in Ripley's Believe It or Not as being the only city with free gas and water and no cemetery.
Magnolia Texas is located about 45 minutes to an hour from the city. If you are looking for a home on land close to the city this is the place to go. Magnolia TX Real estate is booming with country subdivisions popping up all over the place. All you have to do to enjoy the landscape is look around you will find beautiful forest, rolling hills and much more. The town in the last few years has experienced phenomenal growth.
Horses and Magnolia TX goes together. This is the area where you can find horse property and still be able to commute to the city. The town has several stores that stock feed, supplies, tack, clothing and more. It is not hard to find veterinary services in and around the Magnolia area. If you don't have a horse, no problem, there are plenty of horses for sale around Magnolia. Typically the country subdivisions will allow one horse per acre.
The town of Magnolia is actually very small as you enter the city there is a sign that says population 1,111. Now the market area of Magnolia is HUGE. It extends from FM 2978 to the East of the town of Magnolia clear over to Roberts Cemetery Road on the west side of Magnolia
The Woodlands located along I-45, about 25 miles north of Houston in Montgomery county. The newest village is being built in Harris County just to the south. It is one of the original master planned communities in the nation. From its inception in 1974, the Woodlands have continued its concept of blending nature with today's modern conveniences. This creates a lifestyle unequalled almost anywhere in America. The Woodlands is nestled in 27,000 acres of towering pines, oaks, dogwoods and other assorted vegetation. You sometimes feel like you have to search through the trees to find anything but that is the ambiance of the Woodlands.
Community service organizations organize resident programs such as The Woodlands Watch and they also provide resident forums for community involvement. Some of the community events that are organized include a Fourth of July parade, the First NightTM New Year's Eve celebration, National Night Out, art shows, flea markets, Earth Day, and dozens of other neighbor-to
-neighbor events. The developer is always looking for ways to better the Woodlands, such as giving Free trees away on Arbor Day. Free seeds are made available at the wildflower festival through the Lion's Club. Some other events in the village centers include Pumpkinmania and Halloween costume contests, a Winter Festival, and an annual Heart Walk.
The Woodlands newest village The Village of Creekside Park has their grand opening in October of 2007. Creekside Village is being built on 3,492 acres and they are planning for 7,100 residences. There will be a mixture of single family homes, age qulified homes (55 and over), multi family residences and custom and estate homes in the gated community of Carlton Woods Creekside. Rob Fleming Park will be opening in the first phase. The park is named for Texas Parks and Wildlife Naturalist and artist Rob Fleming. The park has playgrounds, picnic areas, tree lined promenades and will be surrounded by wildflowers.
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