Real Estate Realities by Dee Davey

In search of an honest man

2012-01-30T08:52:00.000-08:00

Similar to Diogenes’ search for an honest man, homeowners want someone to do quality repairs at a fair price. The task appears reasonably easy but if you’ve ever tried to locate someone to fix something, you know just how difficult it is.

Finding a list of companies from a phone book doesn’t mean they’ll be reasonable and reliable, it just means they have a phone and are willing to pay for an ad. Searching on the Internet may direct you to a website that appears to be a local company but really is a marketing company who will sell the lead to a repairman or company who will pay a referral fee.

There are consumer organizations like Angie’s list who rate repairmen and contractors but they usually require an annual membership fee to be able to access the information. There are also services like Renovation Experts or Service Magic that are registries for contractors but they may not be the most competitively priced.

Your best recommendations are going to come from friends, family and neighbors you trust who have actually used the repairmen before and would use them again. The problem here is that you might have to make multiple calls before you can find a friend who can recommend the type contractor you need.

Repairs are a normal part of selling homes and we certainly come in contact with lots of contractors. This experience leads us to understand who is reputable and reasonable as well as who to avoid. As part of our commitment to helping you be a better homeowner from the time you buy your home until you sell it, we’re more than happy to make a recommendation of good repairmen or other professionals you might need. Give us a call…we want to help.

Deductible Is the Point

2012-01-23T08:41:00.000-08:00

Points refer to prepaid interest on a home mortgage and can be fully deductible by the buyer in the year paid if the right conditions exist. The points must be used to buy, build or improve a taxpayer's principal residence but not all fees charged by the lender are necessarily deductible.

According to IRS Publication 936, "The term 'points' is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. A borrower is treated as paying any points that a home seller pays for the borrower's mortgage."

If you purchased a home in 2011, have your tax professional evaluate your closing statement to see if there are loan fees that may be used as a deduction on your tax return regardless of whether you or the seller paid them.

Refinancing a principal residence or purchasing an investment or income property require that points must be deducted ratably over the term of the mortgage rather than deducting them fully in the year paid. Borrowers in these situations should consider the benefits of lower interest rates from paying point to higher interest rates without points.

This article is meant to provide information that can be discussed with your tax professional about your specific situation and is not to be considered tax advice.

Choose Your Deduction

2012-01-16T13:09:00.000-08:00

One third of all U.S. households, 75% of households with more than $75,000 income and most homeowners itemize their deduction on their federal income tax returns. It makes sense because the interest paid on their mortgage and their property taxes probably exceeds the allowable standard deduction.

However, with interest rates as low as they have been in the last two years and the price of homes having come down considerably, it is possible that the standard deduction may be the better choice.

Each year, the taxpayer can compare the total of the itemized deductions to the standard deduction to select which method will result in the most benefits. The 2011 standard deduction is $11,600 for married couple filing jointly and $5,800 for single filers.

The Housing and Economic Recovery Act of 2008 allows homeowners to take the standard deduction and the lesser of their actual property taxes of $1,000 if filing their return married jointly. For more information, see Schedule L found on www.IRS.gov and consult your tax advisor.

Forced Savings...Really?

2012-01-10T09:45:00.000-08:00

Part of the American Dream is to own a home. A home is a place to call your own; a place to raise your family and share with your friends. A home is a place to feel safe and secure. A home is a good investment?

In a recent report* by Beracha and Johnson, it is suggested that buying a home is the right thing to do but not necessarily for the reason that people expect. A home is, in many instances, the largest investment that homeowners have and it accounts for the majority of their net worth.

The report suggests that the self-imposed savings due to amortization has a significant contribution to a person's net worth. The premise was determined by comparing the net worth of buyers to renters over a 31 year period of time.

When the savings in rent and down payment were reinvested, renters had a greater net worth than buyers after each 8-year cycle by a margin of 91% to 9%. On the other hand, when the requirement to reinvest the savings was dropped and renters were allowed to spend the savings on consumption, the Buyers had a greater net worth 84% compared to 16% for renters.

Appreciation, tax savings and amortization contribute to lowering the cost of housing and help homeowners build equity. The forced savings due to amortization benefits the individuals who may not be disciplined enough to invest the savings otherwise. Regardless of which benefits apply in different situations, owning a home can be a satisfying investment both emotionally and financially.

*Factor Sensitivities in the Making of Buy vs. Rent Decisions: Do Homeowners Make the Right Decision for the Wrong Reason by Eli Berach and Ken J. Johnson of Florida International University writing for the Journal of Housing Research.

The "Right Size" Home

2012-01-03T11:22:00.000-08:00

Work hard, buy a home, start a family and continue to upgrade your home until everyone has enough room. This has been the blueprint for lots of homeowners for the last fifty years but there is certainly a shift in thinking that could change all of that.

Interestingly, Americans live in much larger homes than most people in other countries throughout the world. The U.S. Census reported in 2006 that the average single family home completed had 2,469 square feet which was 769 feet more than in 1976.

Once the children are grown and have moved out, homeowners are finding they have too much room. Even if their home is paid for, they have higher property taxes, insurance, utilities and maintenance on the larger home than they'd have if they were living in the "right size" home.

Some homeowners state thaty they're keeping their larger home because it has luxury features that smaller homes don't have. There's a movement that seems to have started in the United States to find the "right size" home with the amenities and convenience that homeowners want.

This philosophy has been expressed by Sarah Susanka in her book Creating the Not So Big House. It proposes a house that "values quality over quantity with an emphasis on comfort and beauty, a high level of detail, and a floor plan designed for today's informal lifestyle."

"This Year I'm Going To..."

2011-12-27T12:32:00.000-08:00

Every year, it seems like the same things are on the list but this could be the year you really do invest in a rental home.

Rents are climbing, home prices are cheap and mortgage rates are low for even non-owner occupied properties. A $125,000 home with 20% down payment can easily have a $300 to $500 monthly cash flow after paying all of the expenses.

There are lots of investment strategies that work but one that is easy to understand and execute is to stay with below average price range homes in predominantly owner-occupied neighborhoods. These properties will appeal to the broadest range of tenants while you hold them and buyers when you're ready to sell.

Single family homes offer an opportunity to borrow high loan-to-value mortgages at fixed rates for long terms on appreciating assess with tax advantages and reasonable control

This is the year to make some real progress on your resolutions. First, invest some time learning about rental properties by attending a FREE webinar on January 4th at 7:00 PM Central time by national real estate speaker Pat Zaby. Click here to register.

Last Minute Gifts Without Shopping

2011-12-20T11:06:00.000-08:00

What do they want? What do they need? Will it fit? Do they already have one? These are the common thoughts running through our minds when trying to find the perfect gift.

The gift of really listening with no interrupting, no daydreaming and no planning your response is exactly what people want when they have something important to say.

The gift of affection with appropriate hugs, kisses and pats on the back can demonstrate your love for family and friends better than words.

The gift of laughter by sharing cartoons and funny stories will say "I love to laugh with you."

The gift of a simple written note shows sincerity and real heartfelt sentiment that may be remembered for a lifetime and could even change a life.

The gift of a sincere compliment supports a person's need to be accepted and appreciated. "You look great in that color", "That was outstanding" or "I really enjoyed that" can make someone's day.

The gift of random kindness or good deeds like holding a door or allowing someone to move ahead of you in a checkout lane shows respect for others.

Your smile, however, may be your most rewarding gift. Invariably, the person receiving the smile will in turn, smile back. The gift you gave will now be given back to you. It will be the right size and you can always use one more.

There's No Place Like Home

2011-12-13T11:34:00.001-08:00

You don't have to be Dorothy in the Wizard of Oz to feel like there's no place like home.

Home is a place to call your own. It's a place to raise your family and share with your friends. It's a place to create memories. A home is a place to feel safe and secure.

Inspect all of your decorations and electrical lighting before using them. While you're enjoying the holidays this year, it's important to pay attention to some of the things that may affect your safety.

Extension cords should not be placed under the carpet or rugs or bundled together which could cause overheating.
Limit three standard size sets of lights to a single extension cord.
Consider using portable or permanent ground fault circuit interrupters with all lighting to avoid possible shocks.
Turn off holiday lights when you leave the home or got to bed.
Avoid using candles near trees or wreaths.
Do not allow natural trees to dry out during the time they're displayed to potential fire hazard.
Make certain that all trees are on a firm, steady base to avoid tipping over.
Don't burn wrapping paper in fireplaces.
Small children are particularly susceptible to accidents and should be protected from potential harm.

Here's hoping your time at home is special during this holiday season. Please let us know if there is anything we can do for you.

Finding the Best Deal

2011-12-07T07:45:00.000-08:00

Consumers are vigilant about buying opportunities like Black Friday, Small Business Saturday and Cyber Monday along with sales, coupons and rebates. Some cautious buyers will even risk shopping early to find exactly what they want to waiting until the last moment for potentially lower prices.

In retail, the hype is more obvious and the signs may be easier to read than that of the home market. Certainly, volumes have been written about the record low mortgage rates and that home prices have adjusted considerably lower in the last four years.

A more subtle indication of a home buying bargain is that statistics indicate that year-after-year, the average home prices fall in the fourth quarter. The holidays beginning with Thanksgiving, winter weather and the distractions of gift purchases certainly contribute to lower home sales.

Regardless of what is causing the reduced volume, the smart buyer can take advantage of the end of the year to get their best possible deal on a home purchase. The buyers willing to buck the trend could easily benefit from lower prices and less competition from other buyers.

Why Pay Full Price?

2011-11-29T14:40:00.000-08:00

No one wants to pay more than its value regardless of the product. When you buy bananas for 49 cents a pound at one store and see them for 39 cents a pound at another store, it's not the ten cent difference as much as it is about overpaying.

It seems like the natural way to start the negotiation process is to offer less than the asking price for the home. However, instead of the price, a buyer could negotiate condition, timing or terms. A few thousand dollars off the price may not make much difference in the monthly payments but it might make a big difference if it was negotiated in one of the other areas.

A buyer who only has enough available funds for down payment and closing costs will have to live in a home exactly the way it is for some time. They may not be able to make the changes that would really make it feel like home until they've saved more money.

Let's say you found a home that needed $5,000 worth of improvements and the seller would lower the price by that amount. Financing those improvements with a separate bank loan will result in higher payments due to a higher interest rate and shorter term than your mortgage.

Offering full price and asking the seller to make the improvements will result in lower monthly payments based on today's low mortgage rates and 30 year term. Another alternative is to negotiate with the seller to pay your closing costs so you'd have the cash to make the improvements.

Paying full price may cause the seller to consider concessions regarding condition or terms which can be balanced to affect the value of the property. Buyers can and should negotiate to acquire the home that meets their needs at the lowest possible cost of housing.

The Best Way Home

2011-11-22T10:22:00.000-08:00

"It's not far, if you know the way." Maybe it is an obvious statement but there are some definite steps that will improve your success in buying a home in today's market.

Know you credit score - the best mortgage rates are available to borrowers with the highest scores. Unless you know what your credit score is at all three major bureaus, you don't really know what rate you'll have to pay.
Clean up your credit - it is estimated that about 90% of credit reports have errors. Some are not serious but others could affect a borrower from getting the best loan terms. It is your responsibility to know what is on your different reports and correct them if possible. You're entitled to a free copy of your credit report each year from Experian, Trans Union and Equifax.
Get pre-approved - Taking the time to make a loan application with a qualified lender even before you start looking at homes will provide peace of mind, make sure that you are looking at the "right" homes and may help you negotiate the best price on the home you select.
Do your homework - when you find the home that meets your needs and desires, research the tax assessments, school ratings, crime activity, possible zoning changes and comparable sales in the area.

As your real estate professional I can definitely help you with these important strategies to invest in a home to call your own, raise your family, feel safe and secure and share with your friends. Call for a recommendation of a trusted mortgage professional; there really is a difference.

Waiting Might Cost MORE!

2011-11-15T15:13:00.000-08:00

The housing market has been in a downward trend for four years. There is some speculation that inventories will not reduce any time soon which will be necessary for prices to rise. However, there are other factors that can increase the cost of housing, specifically mortgages. FHA accounts for a large percentage of the current housing loans and is expected to be even more prominent when the Qualified Residential Mortgage Guidelines go into effect next year.

Rising rates are almost certain, due to looming inflation fueled by higher gas and food prices and the enormous amount of deficit spending
FHA loan limits have been reduced – they are lower than conventional limits in most markets and FHA has suggested that they might be reduced further.
FHA might increase the down payment to 5% or higher in an effort to have a more secure loan that will have less likelihood of going to foreclosure.
FHA might decrease the amount of seller contributions in a similar move to require the buyer to have a larger investment in the home and therefore be a more “qualified” borrower.
Congress may decide to increase the up-front MIP to build up the FHA reserves. The annual MIP has been adjusted twice since October 2010 when the Up-Front MIP was actually reduced.
Due to tougher conventional requirements, demand for FHA loans could exceed maximum annual insurable limits. If Congress is having a hard time raising the limit on national debt, they might not even consider raising the limits for FHA.

In an effort to solidify the lending industry, qualifying is becoming harder for the buyer and more expensive at the same time. Many of the rules changes could go into effect next year. In addition, market factors could easily play a role in increasing buyer’s costs. Waiting will very probably require a larger up-front investment for buyers in the future.

One Size Doesn't Fit All

2011-11-09T08:21:00.000-08:00

Rarely, does one size fit everyone and the same goes for advice. The following suggestion is not right for everyone. However, for people with job security and who don't own a home; for people with good credit and enough savings for a down payment, there may never be a better time to buy a home.

Homes have had a significant price correction but in many markest, they have started to rise again. The lower prices combined with historically low interest rates make this an opportune time to buy a home if you can afford it.

One of the reasons homes are an attractive investment is that fact that you can use a small down payment and finance the balance for 30 years. The principle, called leverage, allows you to earn a return on the value of the home rather than the actual cash investment. Small appreciation can create a large rate of return on the initial investment of the down payment and closing costs.

The following example is a projection at the end of five years for a $175,000 home with 3% closing costs and a 5% interest rate for a 30 year term. The rate you see in each column is an annual rate of return based on the equity of the home at the end of the five year period due to both appreciation and amortization of the loan.

The nature of positive leverage will cause the returns to be higher with a smaller down payment. As you see in the table, the return is higher on the 3.5% down payment than with the 10% or 20% down payment.

If you're curious to see if this advice might fit your situation, you really need to sit down with a knowledgeable real estate professional who can help you assess your position. It's worth the time because there may never be a better opportunity than now.

Family & Friends' Mortgages

2011-11-01T08:11:00.000-07:00

It all seems perfectly reasonable: one person is not satisfied with what he can earn currently in the market and another wants to find the most attractive mortgage to purchase their home. It can be a good match but the IRS has specific rules that govern the transaction.

The loan must be done in a business-like manner with a written note specifying the loan amount, interest rate, term and collateral. IRS requires that the mortgage be a recorded lien in order to allow the interest deduction.

Sometimes, these friends and family situations have a less than normal interest rate on the mortgage. However, the rate charged in the note is regulated by the minimum applicable federal rate which is published monthly by IRS according to current Treasury securities. For October 2011, the rate is 2.95% for terms over nine years.

The seller must report the interest paid to them along with the name, address and Social Security number on schedule B when the buyer uses the property as their principal residence.

A mortgage between family and friends can be good for both parties. It may allow the borrower a slightly lower rate without the expenses of a traditional lender while giving the note holder a higher rate than they can earn in available investments. Your tax professional can guide the transaction whether you're a buyer or seller and your real estate professional can help arrange to have the documents drawn and filed.

September 11, 2011

2011-09-11T11:36:00.001-07:00

The day has been spent listening to recounts, and rememberances of this dramatic day 10 years ago. Every story is different, and each just as tragic as the one before it.

A comment that came from two of the 9/11 children had great impact on me, and it may have been missed by a lot of people. These kids are not likely to have a more tragic or dramatic event in their lives as that day, and yet this is what they said, "I don't get so upset over the little things of life, as I see a lot of other people do. How bad can things really be? Frustrations at work or school, simple dissapointments, someone says an unkind word? Now those things are so small in the whole scheme of things."

I thought of what a big deal we make over a lost sale, or something that doesn't go our way. There have been many loses in my life, sad and somewhat overwhelming, but nothing like this.

Hopefully I can remember the words of these extraordinary children who may just approach life differently than we ever believed possible.

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A NEW PHASE HAS BEGUN

2011-07-26T08:45:00.001-07:00

So the time has come, I have cataracts and it affects my vision. The things I am discovering about aging is, there is an up side to every phase of life, even if we dread it, or fear it.

Since the age of 9, I have worn glasses. When I was 9 I thought it was neat. A beautiful friend of mine wore glasses and they looked so classy - ON HER!! I did not have her beautiful features and I became the one the boys said, "You don't make passes at girls who wear glasses", which by the way was true in the 50's and 60's.

Now however, I don't care, and I can have my vision totally restored by removing the cataracts, which I have because I am aging. What a life this is.

"Anyone who keeps the ability to see beauty never grows old.'' Franz Kafka said that, don't know who he is, but that is a relevant statement for me right now.

Will keep you posted on the progress of my new "Phase of life"

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"I DO" Want a Home

2011-07-19T11:55:00.001-07:00

I just made a new discovery, and it isn't even new. Been around since 1996.

Forget about Macy's and Crate & Barrel. Set up you bridal registry at the bank and use the funds for the FHA down payment on a home. If you are a buyer who has been living on your own for a while, you may have all the pots, pans, dishes and glasses you need packed away waiting for a home to buy.

This is a little known program that allows cash gifts to be put into the bridal registry.

Here is how it works,

1). Inform your mortgage professional early of your intention to obtain all or part of your down payment from gifts to the FHA homeowner bridal registry.

2). Open a savings account at your bank named "bridal Registry account"

3). Friends and family are given account deposit information

Sellers , builders, realestate agents or anyone with a financial interest are restricted from making a gift contribution. It is not difficult to set it up and it is available with any FHA Lender.

Call me to get more info about this "Secret" place to find money for a down payment. If marriage is in the near future for you, owning a home will not be far behind.

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LITTLE KNOWN SECRET ABOUT YOUR MONEY

2011-06-23T04:53:00.001-07:00

Several years ago, a client was selling their home, and the bottom line wasn't pretty, they were going to have to bring 5000.00 to closing, however, there was over 5,000.00 in their escrow account which they could not get back for 30 days.

This didn't seem right to me, so I contacted the lender on the seller's behalf and asked if the loan payoff could include the deduction of the escrow account, allowing the seller the expense of borrowing the money to come to closing to just sell their house.

The process was simple (well, 15 years ago it was simple). All the seller had to do was write a letter to the lender requesting the escrow be included in the payoff for the day of closing.

It saved the seller a lot of frustration, the sale closed, and we saved the day.

I have run into this situation again, and today it is not so easy, the lender swears on their Mothers grave, it can't be done, "not our Policy" "Can only do it for refinance". After 45 minutes of informing the lender that yet another foreclosure may hit the market if this cannot be accomplished, they said if the seller wrote a hardship letter, within three days they "may" be able to get it approved. Thing is, the seller had sent that letter three weeks early and had been declined in writing.

The Title company spent hours trying to reason with someone, anyone, to get this done, and after three weeks, several days, too many hours, and a boat load of frustration, it may get done.

I sent a letter to my Congressman, and I will contact whomever I think may have an impact on this ridiculous rule.

Sellers are giving up on the ludicrous behavior of banks and lenders that do not have real world issues in their vocabulary, result, millions of foreclosures that could have been saved. This story is just one of the reasons the public has lost trust in anyone who was once a savior to the American Dream.

If you are faced with this situation, fight for your Money. It may not be much, but in this market we only have a few angles to cover.

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One More Chance?

2011-06-15T13:50:00.001-07:00

Fixed Rate mortgages are at their lowest level for 2011 as reported in the current Freddie Mac weekly Primary Mortgage Market Survey. Many qualified buyers missed the opportunity last fall in October and November to refinance at record low rates. This may give homeowners one more chance to refinance and save money on their payments.

An important thing to keep in mind is that points paid in connection for refinancing a home are generally not considered prepaid interest and must be spread over the life of the mortgage. Some advisors suggest that you have the lender quote a "par value" loan to eliminate the points which will lower refinancing costs even though the mortgage rate will be slightly higher.

Additional income tax information is available in IRS Publication 936.

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Buy Now or Wait

2011-06-14T14:02:00.001-07:00

Uncertainty as to whether prices will continue to fall has to be one of the most common causes of buyer procrastination. Paying too much wouldn't be a smart thing but price isn't the only factor to consider. Interest rates have as much effect on housing costs as price.

A small increase in mortgage interest rates can offset a significant drop in home prices. If the price of the home were to come down by 5% but the interest rates were to go up by .5%, the payments might be close to the same.

In the example below, if the price of $175,000 home went down 5% but the interest rate went from 4.75% to 5.25%, the payments would actually be $4.98 more at the cheaper price. If while the buyer was waiting for the home to decrease 5% and the interest rate increased by 1%, the payments would actually go up by $55.30.

Then, of course, there is always the possiblility that the price of the home doesn't go down but the rate does go up by 1%. The payments would be $104.58 more per month, each and every month for as long as you have the mortgage on the home.

As a Residential Finance Consultant, I can provide solid information that will help you make better buying decisions. A home is a place to feel safe and secure, to raise your family, share with your friends and an investment. It's an investment in your marriage, your family and your future. You owe it to yourself to check out the real numbers in your market because every market is different.

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Start your Projects

2011-06-14T13:59:00.001-07:00

Summertime is almost here and millions of Americans will be starting home improvement projects. Whether they're classified as maintenance, updating or energy saving, they should make homeownership more enjoyable.

Remodeling magazine's 2010-11 Cost vs. Value Report suggests that some improvements are a better investment than others. Front door and garage door replacements are two of the easiest and return the greatest percentage of cost on resale.

Kitchen and bathroom updates transform an older home and instantly give visitors and buyers a fresh impression. Countertops and appliances can be expensive but yield great results. Painting the cabinets and replacing the hardware is much less expensive to change the look and feel of the rooms.

Energy efficiency enhancements can improve your enjoyment of the home and help save money on utility costs.

Replace older appliances - refrigerators, ceiling fans, water heaters, air-conditioners
Add insulation to keep your home cool in the summer and warm in the winter
Seal air leaks around doors and windows; holes in attics and crawl spaces with caulk, spray foam or weather stripping - more information
Seal all heating and cooling system ducts - more information

Looking through the eyes of a buyer could show you what features most date your home and could order the priority that you tackle the projects.

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Cash Now - Mortgage Later?

2011-06-14T13:58:00.001-07:00

You might think that a person who pays cash doesn't have many concerns or at least not the same ones as most people. Roughly, about 9% of people paid cash for their home last year with a considerably higher percentage paying cash this year.

The first question that comes to mind when I hear someone say they want to pay cash for a home is "Do you think that you might put a loan on the home in the future?" Paying cash may affect your ability to deduct the interest on a mortgage placed on the home at a later date.

Currently, a homeowner may deduct the interest on up to $1 million of acquisition debt. Paying cash for a home establishes acquisition debt at $0. At that point, the only deductible interest would be home equity debt which is limited to $100,000 over acquisition debt. You can get more information about this from IRS Publication 936.

On the surface, paying cash certainly seems simple but it may have consequences later. As a Residential Finance Consultant, I can point out the areas when advice from a tax professional is in order.

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It's Hot!!

2011-06-09T07:40:00.001-07:00

The weather is hot, the market is hot. Big interest these days, investment properties to purchase for lease. The lease market has increased dramatically because of foreclosures and lost jobs, credit issues and downsizing. If you have 10-20% money to invest you can purchase a home and in all likelihood, over the years someone else will pay off that house for you.

Now is an incredible time to buy, you hear is everyday, whether ownership or investment properties, don't let this time pass you by.

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Rent or Buy...you pay for the house you occupy.

2011-04-21T09:50:00.001-07:00

Dee Davey Group deedavey50@gmail.com

RE/MAX Associates of Mansfield www.deedavey.com

817-228-8150 Cell

Whether you rent or buy, you pay for the house you occupy. You must live somewhere and there's a price to pay for it. A simple analysis will show you whether it's cheaper to rent or buy.

Some people don't have any choice but to rent because they don't have the means to qualify for a loan. But for those who do have a down payment and good credit, they actually have a choice of whether to rent or buy. In some cases, owning will cost significantly less than renting.

Rentals are in high demand in many markets and rents are going up. People who have experienced foreclosures and short sales have increased demand. The first comparison a discerning buyer needs to make is whether the house payment is lower than what they'd have to pay in rent.

The next comparison needs to consider the other benefits that accrue to an owner such as principal reduction, appreciation and tax savings. These can dramatically weigh in favor of owning rather than renting.

Tenants have made the decision to buy a home. The decision currently facing them is whether to buy it for themselves or their landlord.

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What we forget

2011-04-18T13:19:00.000-07:00

An interesting thing happened this week. A long, long ago customer called me to discuss listing his home. The first part of the conversation revolved around how the previous work we did together was not satisfactory because the house sold too fast, and the price he accepted was much lower than he expected. By about 20%. I accepted the argument and once again got the listing eager to do a better job this time. In reviewing the history of that previous listing, I discovered the house did sell fast, and within 3% of list price. I have no idea how he came up with his numbers, but grateful to have another go at it. It just reminded me what we think, what we remember and what we forget truly have no relevance to what is real. So forget the past. It has nothing to do with the present.

2011-04-18T12:31:00.000-07:00

Back from Hawaii

2010-02-27T06:29:00.001-08:00

Aloha, all,

Left in the snow, returned in the snow, but actually glad to be back. Hawaii is wonderful, but Texas is the Best for the working climate.

We are going into what appears to be a positive Spring Market.

Hope to see you all out there, working, buying or selling.

Dee

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COMMUNITY THEATRE ALIVE AND WELL

2010-01-27T06:59:00.001-08:00

The Mansfield Community Theatre is presenting "Meet Me In Saint Louis" Feb. 19-21 at the Kennedale performing Arts Center/ This will be their second production, and will be sure to be a raving success, just like the last one. Visit the website at mansfieldcommunitytheatre.org for tickets and more info.

Across the Nation reports are sales are down 16% in the housing market. Not so in Mansfield/Arlington area. We are quickly approaching a less than 6 months supply.

GOOD NEWS ABOUNDS - SPREAD IT AROUND.

Enjoy your day.

Dee

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PAY ME NOW, OR PAY ME LATER

2010-01-26T09:00:00.001-08:00

In the past few years we have had the extraordinary opportunity to get into homes with very little or no money down, and often adding all our closing costs so owning a home, initially cost nothing to move in.

How neat is that?

Some rules that make this a beautiful concept is the longevity of staying in the home long enough to earn equity. In our market in Texas that is about 2% per year.

150,000.00 home will earn about 3,000.00 per year. That means in five years you will have earned enough to pay your closing costs to sell.

Hence , "pay me now, or pay me later". There is nothing wrong with that concept, IF you know that,going into your purchase.

Some proactive things you can do:

1). Assess the money you saved to purchase, and start a fund to pay back yourself

2). DO NOT!! get a home equity loan, or use your home for collateral for a personal loan.

3). DO keep the home squeaky clean , inside and out. Paint every 1-3 years, clean baseboards, ovens, stove tops and light fixtures on a regular basis.

Just a few things to ponder before getting that"EXTRAORDINARY DEAL"

What do you think?

Dee

Posted via web from realestaterealities posterous

WHAT DO YOU WANT TO KNOW?

2010-01-24T17:37:00.000-08:00

In the 32 years I have been a real estate agent, I sometimes think I have been asked every question about real estate that could possibly be asked, and then there is something new.

What do you want to know, how to become a real estate agent, why become a real estate agent, how does it compare with other professions? Does any one care?

I suppose blogs are designed to enlighten and entertain but hopefully to inform.

A few of my interests are the Mansfield Community Theatre, who is presenting Meet Me in Saint Louis Feb. 19th through 21st. If you love live theatre you will enjoy this.

The Mansfield Chamber of Commerce is thriving in Mansfield, membership is a real boost to most business owners in the area.

Let me know your interests and what you want to learn about real estate or Mansfield.

Dee

New blog site

2010-01-21T08:39:00.001-08:00

http://realestaterealities.posterous.com/

Posted via email from realestaterealities posterous

New blog site

2010-01-21T08:31:00.001-08:00

Dee Davey is now on posterous.com letting us know about real estate in the Dallas Fort Worth Arlington and Mansfield areas.

You can also see her blogs on Facebook and Google.

Posted via web from realestaterealities posterous

WHY ARE YOU WAITING

2009-08-04T16:46:00.000-07:00

The stock market is climbing, houses are selling, government is giving free money to buy a home. We live in America! Home ownership is still the American Dream. A first home doesn't have to be your ultimate home.

Buying a home in todays economic upheaval is one of the wisest things a person can do. Not getting in over your head, but most first time home buyers discover the rent they pay is more than a 120,000.00 home.

Get an appointment with a real estate consultant and find out the facts before you make a decision.

Make it a great day.

Dee

A shrinking market

2009-06-30T09:00:00.000-07:00

That's right, our real estate market is shrinking. Two years ago, the City of Mansfield was issuing 121 building permits per month, now that number has shrunk to less than 200 per year. Builders are still building, but only if their inventory has been purchased.

That is good news for sellers , less inventory means higher prices. Mansfield has had stable prices and that is also good news, so when the inventory is low, the quality neighborhoods and better housing is more in demand.

Don't let the purchase you want slip away.

What is a short sale

2009-06-27T07:21:00.000-07:00

Good morning, all, it is hot, hot , hot, and the hot topic in todays market is short sales. I get ask all the time, what is a short sale., and it is what its name implies. The lender will come up short if they help the owner get out of their mortgage. Benefit to the owner- you have a loan balance greater than what your home will sell for in todays market. The lender will either prepare for forecloser, (very costly) or they can forgive the difference.

The process to prepare for a short sale is lenghty, but more sensible than allowing foreclosure if the numbers work.

Ask your specific questions about Short Sales, and maybe I can help.

Dee

HOW THE REAL ESTATE MARKET AFFECTS YOU

2009-06-26T09:35:00.000-07:00

LOTS OF BUZZ IN THE REAL ESTATE MARKET THIS WEEK. RATES ARE HOVERING AROUND 5% AND THE WORD IS THEY MAY BE RISING. PROBABLY NOT QUICKLY, BUT WHO CAN TELL.?

WHEN YOU HAVE BEEN IN A MARKET WITH 18% INTEREST RATES, ANYTHING FROM 5-10 ISN'T THAT BAD.

THE FIRST TIME BUYER REBATE, IS THE BIG TOPIC RIGHT NOW. UNTIL DECEMBER IF THERE IS ANYWAY A FIRST TIME BUYER CAN GET QUALIFIED, NOW IS THE TIME.

Real Estate Realities by Dee Davey

In search of an honest man

Deductible Is the Point

Choose Your Deduction

Forced Savings...Really?

The "Right Size" Home

"This Year I'm Going To..."

Last Minute Gifts Without Shopping

There's No Place Like Home

Finding the Best Deal

Why Pay Full Price?

The Best Way Home

Waiting Might Cost MORE!

One Size Doesn't Fit All

Family & Friends' Mortgages

September 11, 2011

A NEW PHASE HAS BEGUN

"I DO" Want a Home

LITTLE KNOWN SECRET ABOUT YOUR MONEY

One More Chance?

Buy Now or Wait

Start your Projects

Cash Now - Mortgage Later?

It's Hot!!

Rent or Buy...you pay for the house you occupy.

What we forget

Share this

Back from Hawaii

COMMUNITY THEATRE ALIVE AND WELL

PAY ME NOW, OR PAY ME LATER

WHAT DO YOU WANT TO KNOW?

New blog site

New blog site

WHY ARE YOU WAITING

A shrinking market

What is a short sale

HOW THE REAL ESTATE MARKET AFFECTS YOU