Spring selling season is upon and the real estate market is heating up.  The majority of the activity in the Spring Texas real estate market is occurring in the first time home buyers price ranges.  The first time home buyers are out and wanting to take advantage of the $8,000 first time home buyer tax credit before it disappears. 

If you are thinking about selling your Spring Texas home this summer, take a moment and watch the following video to learn how to avoid the major mistakes made by most sellers.

Additional information on selling your home is available in our Spring Texas home seller information section.

Written by:  Jill Wente - 281.804.8626

If you live in Spring Texas you will be treated to plenty of blue skies and sunshine.  Just how many days of sunshine?  207 days of sunshine which is more than 56% of the days in the year.

How much rain does the Spring Texas sky deliver on the other 44% of the days in the year?

According to weather.com, Spring Texas receives 48 inches per year. The U.S. average rainfall is 37 inches per year.

Producing an average of 5.35 inches June would be considered our umbrella month which is closely followed by May at 5.15 inches.  The driest month in Spring Texas is February with 2.98 inches of rain.

Don’t worry if your house hunting trip coincides with a rainy month because Rick and I show Spring Texas homes in all weather conditions, rain or shine. Plus we carry extra umbrellas in our cars just in case you need one.

Read also:

• What are average temperatures for Spring Texas?
• Moving to Spring Texas? 10Things you need to know

Written by:  Jill Wente - 281.804.8626

First time home buyer tax credit explainedThe first time homebuyers tax credit is such a great program which is why I have written numerous posts about the tax credit including … First time home buyers tax credit - what is it, how much is it, and how to get it and how to use the tax credit to come up with a down payment on your first Spring Texas home.

Although sometimes I find a video is a better educational tool than a written blog post which is why I have included this video. A title of FREE MONEY for first time home buyers probably would have garnered more interest in the video than Federal Housing Tax Credit Explained. 

If after watching the video you still have questions about the first time home buyers tax credit you can read the FAQs mentioned in the video or you can give me a call at 281.804.8626 and I would be happy to answer them.

Now I am not a tax accountant but I did earn a B.S. in Accounting degree so I know my way around a financial spreadsheet.  If I don’t know the answer to your question, I will try to hunt down a source to get your question answered.

If you are thinking about taking advantage of the first time home buyers tax credit and why wouldn’t you want to get some FREE MONEY, you probably have lots of questions about the process of purchasing a home.  To help answer some of your questions, I have written a first time home buyers series which explains step by step the process of purchasing a Spring Texas home.  The series should provide answers to a lot of your questions and may even provide answers to some questions you did not even know you had.

Written by:  Jill Wente - 281.804.8626

Right about the time my Spring Texas home buyers are admiring how beautifully the stainless steel refrigerator matches the other the stainless steel kitchen appliances is when they will turn to me and ask “Does the refrigerator stay with the house?”  Usually, my answer is “I am sorry but the the refrigerator does not stay with the house”.

There are numerous items that do stay with the Spring Texas house you purchase and our Texas Residential Real Estate Contract goes into explicit detail outlining these additional items. The items are broken down into the two categories of Improvements and Accessories. 

Improvements are all other fixtures and improvements attached to the property including the following permanently installed and built-in items:  all equipment and appliances, valances, screens, shutters, lighting fixtures, chandeliers, ceiling fans, water softener system, garage door openers, shrubbery, landscaping, and outdoor cooking equipment.

Accessories are fireplace screens, curtains and rods, blinds, window shade, draperies and rods, swimming pool equipment, and artifical fireplace logs.

These items all seem self explanatory but there are other items such as surround sound speakers, playsets, and potted plants that are left up to the interpretation of the buyers and sellers as to whether they stay with the house.  Interpretations of what stays with the house have quickly ended more contract negotiations than what you probably think.

If you are wondering whether an item goes or stays with the house, my advice to you is just ask the seller.  Don’t make any assumptions that could later turn into a heated battle between you and the sellers.

If you are selling your Spring Texas home, my advice is before you put your house on the real estate market take down everything you want to take with you.  If the buyers don’t see an item, they won’t want it to stay with the house.  If you must leave an item out that you are planning on taking with you clearly identify the item as an exclusion on the home’s listing.

Read also:

• Top 30 things to do before putting your home on the real estate market

 Written by:  Jill Wente - 281.804.8626

What is a sellers leaseback?  A sellers leaseback is a temporary residential lease between the sellers and buyers whereby the sellers lease back the home they sold from the buyers for a short period of time. 

Why would a Spring Texas home seller want a sellers leaseback? - If you need the funds from the sale of your home to purchase your next home, you would want a sellers leaseback.  Ordinarily when you sell your home possession of the home transfers to the buyers upon closing and funding. 

If you need the funds from the sell of your home before you can purchase your new home, you are left with no time to pack up, move, and clean the home you sold before you have to transfer possession to the new buyers. 

A sellers leaseback eliminates a potential logistic nightmare and having your possessions sitting on a moving van in limbo waiting for one home to be sold and another to be purchased.

If you are moving from the home you are selling into an apartment a sellers leaseback eliminates the risk of you incurring unnecessary expenses.  You have to turn over possession of  your home upon closing and funding and in order to do so you have to move your possessions and clean the home in advance of the closing.  But what if the buyers loan falls through at the 23rd hour and they can not close on your home?  You have already moved out of your home and incurred the expense of moving.  You then have to decide if you want to incur the expense of moving again and move back into your home or incur double living expenses.  Another good reason to negotiate a sellers leaseback of your Spring Texas home.  

How common are sellers leaseback? - A sellers request for a leaseback is a common occurrence and buyers are usually understanding and willing to accommodate the request. 

How much should you expect to pay on a daily basis to rent your home from the buyers or new landlords? - You should expect to pay 1/30th of what it costs the buyers for homeowners insurance, real estate taxes, mortgage insurance, principal, and interest per day.  The sellers leaseback is not meant to be a money making opportunity for the buyers but it is meant to make the buyers financially whole.  

As Spring Texas home sellers, just remember the buyers are doing you a favor by agreeing to become landlords because in the majority of home purchases buyers are wanting to live in the home.  They are not purchasing the home for investment purposes and do not want to be landlords.

Read also:

• Things that do and things that do not determine the value of your Spring Texas home.

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Pursuant to Texas Property Code 5.008, sellers of residential real estate shall deliver a 
Seller’s Disclosure Notice to the buyer containing the minimum disclosures of the seller’s knowledge of the condition of the property.  When you are considering purchasing a Spring Texas home, a sellers disclosure is a good source of information to learn about the condition of the home.

If you want to know if the home had a previous fire, previous roof repairs, is located in the 100-year Floodplain, or had water penetration just look on the sellers disclosure for the answer. 

But does the sellers disclosure give you everything you would like to know about that Spring Texas home?  Probably Not.  For there are some questions you will need to do a little sleuthing on your own to find the answers.  Including ….

1. Carpet Spots - The sellers may know the carpet looks terrible in certain spots and if you think the furniture placement is a little odd or there are throw rugs in unusual locations lift up the rugs and inspect the carpet underneath.  Sellers are not required and are not willingly going to point out the make-up stain made by their teenage daughter that just never came out.

2. Dogs- Are the neighbors dogs going to bark every time you go into the backyard?   The sellers disclosure does not provides an answer to this question.  So don’t just look out the windows at the backyard. Go out into the yard and walk around to get the answer to your dog question.

3. Planes, Trains, & Trash Trucks - If you are a light sleeper, you would want to know if the noise from planes, trains, or trash trucks is going to keep you from getting a good night’s sleep.  Again, no help from the sellers disclosure.  Do a little sleuthing on your own for these answers by identifying the closest train tracks and airport. You can also give the trash service company a call and find out the time of day they service the subdivision. 

4. Neighbors - Sorry home buyers, the sellers disclosure will give you no insight into what the sellers know about their neighbors.  Too bad because I know some questions I would like answered about the neighbors such as …

• does the neighbor’s son practice day and night because he aspires to be a drummer in a heavy metal rock band.
• do the neighbor’s with the pool host frequent pool parties that continue into the wee hours of the morning. 
• do the neighborhood pets enjoy doing their business in the sellers yard more than their own yards.

Just remember although a sellers disclosure does provide a lot of good information it certainly does not provide everything worth knowing about a home.  As a Spring Texas home buyer, you may need to do a little sleuthing on your own to get your real questions answered.

Read also:

• Is this a good Neighborhood?

If you are thinking about becoming a Spring Texas first time homebuyer, here’s our list of the Top 10 tips on buying a home:

1.  Be choosy but don’t be unrealistic. The only home that comes close to being perfect is one you design and build yourself and still later you will think of things you would have done differently.

2. Establish your priorities before you start searching. Put together a list of the features you would like in a home and categorize each as a “must have” or “nice to have”.

3.  Review your credit.  Now’s the time to review your credit reports to determine if there are any errors that need to be corrected before applying for a home loan.  You can review your credit report for free at www.AnnualCreditReport.com

4.  Get pre-approved first.  Don’t wait until you have found the home for you before you talk to a lender.

5.  Don’t ask an opinion from everybody you know. All the different opinions will drive you insane. If you need support seek advice from one or two of the most trusted people you know.

6.  Decide when you want to move.  When is your lease up? Can you rent month to month? If so how much more will it cost you?

7.  Think beyond next year.  How long are you planning on staying in the home?  Does the home have the space and features to meet anticipated changes in your lifestyle or family. 

8.  Crunch the numbers.  Don’t be “house poor”.  When calculating your monthly budget don’t stop after you have estimated the costs of prinicipal and interest on your home loan, taxes, and homeowners insurance.  Make sure you add in estimations for home maintenance, lawn care, and decorations.

9.  Go in with your eyes wide open.  Don’t skimp by not getting a home inspection. If you were thinking about purchasing a used car you would take it to a mechanic and get his opinion.  A home will cost you significantly more than a used car and you need to have it inspected by a professional inspector. 

10.  Seek help.  The purchase of a Spring Texas home will probably be your largest financial decision. Hire a qualified and experienced buyer’s agent to represent you. The majority of the time buyers agents are paid out of the seller’s commission payment. You have everything to gain with being represented by a buyers agent and all at no cost to you.

Read also:

• First time home buyers series on purchasing a Spring Texas home
• 2009 First time home buyers tax credit - what is it, how much is it, and how to get it

The latest MLS numbers for the Spring Texas Real Estate market are in and all you have to do is look at the months of inventory of the various home price ranges to discover where the buyers are.   

The months of inventory for homes priced between:

• $100,000 to $189,999 are 4.1 to 5.5 months
• $190,000 to $399,999 are 6.2 to 8.4 months
• $400,000 to $1 million+ are 10 to 22.8 months

The stock market’s impact on the investment portfolio of the over $400,000 home buyer has caused this group of buyers to develop a wait and see mentality.  These home buyers are in no rush to increase their expenses by purchasing a more expensive home.  

On the other hand, we are experiencing an increase in activity for homes in the lower price ranges.  As word spreads about the $8,000 first time home buyers tax credit and the lowest home mortgage interest rates on record, first time home buyers are in the Spring Texas real estate market and are looking to cash in. 

The indecisive of home buyers in the lower price ranges is causing them to lose out on the homes they want. Homes I have shown to buyers two weeks earlier are now in contract by the time they want to view the homes again.

Months of inventory for the Spring Texas real estate market is sitting at 5.6 months which is over a month less than last year.  The days on market for the month has crept up a bit over last year to 100 days versus 88 days. 

If you are thinking about selling your Spring Texas home and the value of it is less than $190,000, now is the time to put your home on the real estate market. Buyers are out in the lower price ranges and good houses are in demand. 

If the value of your home is over $400,000, I recommend you waiting to put your house on the real estate market.  Homes at the higher price ranges are slow in moving which translates into your home be on the market longer and more inconvenience for you.

Give me a call at 281.804.8626  if you are ready to put your Spring Texas home on the real estate market.

Read also:

• Mortgage interest rates make history
• What’s the value of your Spring Texas home?

 The data represented is from the Houston Association of Realtors MLS for existing homes in Area 13. Area 13 covers the geographic boundaries of East - I45 to West - Hwy 249 to South - Beltway 8 to North - Spring Cypress.

Written by:  Jill Wente - 281.804.8626

You have heard about the first time home buyer tax credit and you want to take advantage of it by purchasing your first Spring Texas home.  But there is only one small problem, 100% financed mortgage loans are no longer available and that means you need to come up with a down payment. So how do you come up with a down payment for your first home?

First, you need to know how much money you will need for a down payment?

Let’s say you have received loan pre-approval for a $140,000 home. The loan with the smallest minimum down payment requirement is a FHA loan and it is 3.5% of the sales price. Okay so pretty easy math ….. $140,000 * 3.5% = $4,900 down payment required for the loan.

You are going to need a little bit more money though before you can buy your first home.  You will need some money to pay for inspections on the home, to buy a washer / dryer and a refrigerator, and to pay for movers.  Let’s estimate $500 for home inspections, $800 for a washer / dryer set, $800 for a refrigerator, and $500 for movers which totals up to $2,600. 

For the down payment on the $140,000 home and for other costs the total amount of money you need is $4,900 + $2,600 = $7,500.

Second, how can you come up with the down payment and the other costs needed for the purchase of your first home.

1.  Save - Yes, I know saving money is the old fashioned way of how to get something you want and saving does take time.  But there are other options if you don’t think you will have enough money saved in time to take advantage of the first time home buyers tax credit which expires on December 1, 2009.

 2.  Borrow- FHA loans permit home buyers to borrow their down payment from their relatives. A great way to convince your relatives to lend you money is by telling them you will quickly repay the loan. After you close on your $140,000 home, you amend your 2008 tax return and claim the first time homebuyers tax credit. Within 4 to 6 weeks after you send in your amended return a $8,000 check from the IRS should arrive in your mailbox. If you don’t want to deal with the extra paperwork of amending your 2008 tax return, you can claim the first time home buyers tax credit on your 2009 return. The money will just arrive in your mailbox later instead of sooner.

The $8,000 tax credit is phased out for single taxpayers with modified adjusted gross income levels over $75,000 and couples with modified adjusted gross income levels over $150,000.

3.  Increase take home pay- If you believe you qualify for the first time home buyers tax credit, go to your employer and change your income tax withholding.  Reducing your income tax withholding by the $8,000 tax credit will get the money into your paycheck to use for the down payment on your home. If you reduce your withholding and you don’t close on a home by November 30, 2009, then you will be liable to the IRS for the additional money that was not withheld from your paycheck plus interest and penalties.

Before you go running into your employer’s payroll office to change your withholding, I recommend you talk with a lender  and get loan pre-approval to avoid potentially having to pay the IRS interest and penalties.

If you need the name of a reliable lender or you are ready to begin the search for Spring Texas homes, give us a call at 281.300.3141 or 281.804.8626 and we would be happy to help you. 

 Read also:

• First time home buyers series on how to purchase your first Spring Texas home
• 2009 First time home buyers tax credit - what is it, how much is it, and how to get it