Mary Ann Daniell, Realtor Fort Hood Texas Real Estate Services

Here are a few thoughts this afternoon about Fort Hood home builders.

Some buyers think that buying a home from a nationally known home builder is the way to go.

These BIG builders offer buyers "the moon" as incentive to buy their homes. They offer to"pay" closing costs, buy interest rates down, put in refrigerators, sprinkler systems and privacy fences and even more to get the buyer's business.

By the time the sales pitch is done, buyers are starry eyed and ready to sign that contract!

But what buyers don't know, is that they are really paying for all those goodies. Extras aren't "thrown in" for free. And buyers may be paying for things they don't even want or need.

Consider the sales price of an 1850 square foot home. A well known national builder may price it at $156,000. There may be no ceramic tile or decorator lighting, or other upgrade features. Most of the homes only have brick on the front, and that translates into miles of siding that will eventually need painting. (Who wants that in TEXAS in the summer?)

The national builders have professional advertising that appeals to buyers. They are seducing buyers with beautifully crafted (and expensive) marketing materials, along with television and internet advertising that promotes a lifestyle that is attractive to new home buyers. (Think MCDONALDS style advertising!) (And who is paying for that advertising? Could it be YOU?)

Here's another idea: Consider the smaller, local builder. Could an experienced local builder possibly offer a better product for a lower price?

The smaller builder offers the 1850 square foot home for $139,900 for a beautiful quality built home. If you want extras, you can add them on. Need a fence? That's about $3000. Want a sprinkler system? That's $2200. A refrigerator? $2000. Closing costs? $3500 should cover it. That's a grand total of $151,600.

Your $151,600 is buying a beautiful brick veneer home with upgrades like French doors, ceramic tile flooring, two tone paint, high ceilings, crown molding, custom built oak cabinets, garden tub, separate showers, tile tub surrounds and other amenities. Your closing costs are paid and your landscape amenities are installed. And you aren't paying for the builder's expensive advertising. Or interest rate buydowns you don't need.

Why would you spend approximately $5,000 MORE for a less attractive and possibly lesser quality home?

Now, before you ask me, I have nothing against the national builders who are building homes at Fort Hood. They meet the needs of many buyers. The continued popularity and sales of these homes prove that. I even show and sell these homes, as well as selling homes by local Fort Hood builders.

Just keep this in mind: Before you settle for what the BIG national builders offer, ask your Ft Hood Realtor to show you homes by local builders, too. You owe it to yourself to see what all Fort Hood builders offer, not just the national builders.

It could SAVE YOU MONEY, and we all need more of that!

Part of my job is staying informed so I can give advice to my Fort Hood home buyers and sellers. I owe it to them to be a good source of reliable information.

For the past two weeks, I've been staying in particularly close touch with local lenders, checking in on movement in interest rates. I'm also checking on the availability of funds for federally insured loan programs (VA and FHA).

GOOD NEWS: The lenders assure me that money is available to lend on VA and FHA loans. All you have to do is qualify for the loan, as in the past.

VA LOANS: This is a true NO MONEY DOWN loan. As of yesterday, if you have a credit score of at least 620 and meet the income to debt ratios and other requirements, you could get your VA loan at 6.5% fixed rate for 30 years.

If your credit score is between 580 and 619, you can still get a VA loan, but will pay a little higher interest rate.

Today, the rate for a 620 score is up to 7%. Still not a bad rate, all things considered. But rates are moving. They may go higher. If you are thinking of buying, this might be the time to do it. Sellers are motivated. UPDATE: VA and FHA Rates were back to 6.5% on Oct. 2.

FHA LOANS: As of yesterday, for a 620 score, you would pay about the same rate as the VA loan, but you must make at least a 3% down payment. As an example: On a $100,000 home, you must pay $3,000 down out of your own pocket and finance $97,000. You are allowed to receive your down payment funds as a gift from a relative, if that is an option. FHA is a little more flexible for buyers who have had some problems in the past due to medical or family issues that may have affected their credit score.

NOTE: FHA has terminated all down payment assistance programs as of today. As of January 1, 2009, the minimum down payment requirement will increase to 3.5% of the purchase price of the home.

The FHA insured loan rate is 7% for a 30 year fixed loan today.

TO RECAP: If you qualify for a VA or FHA loan, money is available for you to buy a home at Fort Hood, at reasonable interest rates, fixed for 30 years. Rates may be headed for an upward trend, but that is to be determined.

Click here to prequalify for a VA or other home loan. There is no charge for this service!

The Fort Hood Real Estate Market has slowed and builders are starting to see their inventories of unsold homes increase. And that's a GOOD thing for you if you are thinking of buying a brand new home when you get to Fort Hood.

Before you go out to make an offer on a new construction home, consider this: Did you know that every new home has a backstory? You aren't privy to this information (and neither am I), but the builder has a lot to consider, especially if he borrowed money to build the home. He's committed to making monthly interest payments on the money he borrowed (and the rate is much higher than your mortgage rate!) He has to respond when his bank questions him for having it in inventory so long. What is his cash flow position on this particular day? Does he need the money TODAY? Was this a home that he thought was sold, only to have the sale BOMB and the home go back on the market? All these situations are great motivators to him to accept your offer! He took a gamble, built the house, it didn't sell, and NOW maybe he's ready to cut his losses!

All that being said, you can see that a builder has a lot on his plate and some days might be more mentally frustrating than others. That's the perfect time to take your own gamble and try these five tips for making a great deal with a new home builder at Fort Hood:

1. Look for the new home that has been on the market for 300 days or more. Your real estate professional can help you with this.

2. If the price has already been reduced, go in lower with your offer (but not insultingly lower! You want this to work, right?)

3. Ask the builder for extras, like blinds, a refrigerator and/or garage door opener or lawn sprinkler system.

4. Ask the builder to cover all your closing costs and prepaids, as well as the cost of paying points to get you a lower interest rate. (Your lender can help you with this number).

5. Be brave and confident! You might get a counter offer, a total rejection of your offer, or the builder just might accept your offer and you will be doing the happy dance!

I've been working for and with the home builders at Fort Hood and in Killeen, Copperas Cove and Harker Heights for many years and have seen every conceivable kind of offer come across my desk. Builders welcome any offer, because it is a starting point to come to that meeting of the minds we all want to happen. And, upon reviewing your offer, a builder will usually do SOMETHING for you! He is more likely to give you extras instead of lowering the price, BUT...

Sometimes he WILL lower the price, too. I helped a nice couple purchase a brand new home in Copperas Cove last week that had been on the market for about 500 days. The price had already been reduced from $169,900 to $158,900. After we finished our negotiations, they got the home for $153,900 and the builder threw in a stainless steel refrigerator to match the other appliances in the house, and he agreed to pay their closing costs and do some other minor items we asked for.

One last thought: Remember. the builder that won't negotiate isn't trying to be difficult (I believe buyers usually say he's being a "horse's ass"!) He'a just not in a distressed position. He may have built the home with cash, and a bank is not in the picture pressuring him for interest payments and a quick sale. He's not being a "horse's ass" when he won't negotiate, he's just running his business!

Good Luck with your negotiations! If you need any more information about working out your best deal on a brand new home at Fort Hood, just call me at 254-681-4875 direct to my cell phone. I'll be happy to help you work it all out!

A lot of you may not be aware that the new Housing Stimulus Legislation recently signed into law by President Bush will be a source of interest free funds to this year's First Time Home Buyers.

If you were, or will be, a first time buyer between April 9, 2008 and July 1, 2009, you may be entitled to a temporary $7500 tax credit. This means you can receive money from the government, interest free, to be paid back at $500 a year for 15 years, unless you sell the home.

When you sell your Fort Hood real estate, the balance of the tax credit is to be paid back from the proceeds of the sale. If there was insufficient profit to cover the balance owed to the government, the remaining credit payback would be forgiven.

This would be a great opportunity for those of you thinking of buying a home to plan to use the tax credit funds to pay off high interest credit card debt, or to pay off student loans that may be a burden on a first time buyer.

As always, when dealing with the government and the subject of income tax and estimated tax credits, always consult a qualified tax professional who can explain everything to you in greater detail. If you'd like to read more now, visit www.federalhousingtaxcredit.com.

This should prove to be a super program if buyers use the funds as part of a solid plan to grow their financial future!

If you are buying a house at Fort Hood or even looking at houses for rent at Fort Hood, you may need some furniture fairly quickly. I'm hearing that many of you are landing here with only a few days to set up your house before you head out to Ft. Polk or National Training Center at Fort Irwin and you've got to find a rental or get a house under contract before you hit the road for training prior to deployment.

If you are in a hurry when you arrive, here are five places to shop for furniture. Remember, if you pay cash, ask for a discount, and don't be afraid to try to negotiate with the stores. It's sort of like real estate.. if you don't ask for something in negotiations, you give up your chance for a better deal!

FORT HOOD FURNITURE STORES

Lacks Furniture
1001 S Fort Hood St
Killeen, Texas

Patriot Furniture
2301 Imperial Dr
Killeen, Texas

Ashley Furniture
1101 S W S Young Dr
Killeen, Texas

Big Lots
800 S Fort Hood St
Killeen, Texas

Furniture Row
825 W Centraltexas Expy
Harker Heights, TX

This list is provided to you as a convenience only. Neither Mary Ann Daniell, Realtor nor Coldwell Banker United, Realtors is endorsing or recommending you do business with any of these merchants.