Mortgage rate predictions

Here is what the experts are saying about mortgage interest rates this year:

If the feds follow their plans, come May, they'll loosen the iron grip they've had on our interest rates. So if you're wondering if this would be a good time to lock in a great rate, I'd say it is.

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Jamba Juicy Scoop

Jamba Juice has packed up their blenders and vacated their store in Preston Royal. Don't know the whole story there, but it comes on the heels of the closing of Popolos. Sure hope this isn't a trend cause my family depends on the eateries at this intersection for half of our meals.

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Best times to buy & sell real estate

This chart explains the residential real estate cycle very well. You want to sell when the market is in 'euphoria' and buy when its in 'depression'.

Right now, I'd say we're between 'despondency' and 'hope'.

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Real Estate Appreciation

Real estate experts agree that residential real estate tends to follow cycles. In Dallas, those cycles are about 6 years.

So while we're currently at the bottom of the current real estate cycle, we can agree that the real estate market will rise again in the next few years. Take a look at these national figures for residential real estate prices.

1980-1985: 25% increase

1985-1990: 27% increase

1990-1995: 25% increase

1995-2000: 29% increase

2000-2006: 89% increase

You can see why the current cycle has such a dramatic drop in prices ... because we had such a dramatic increase in prices over the past decade.

Interestingly, in Dallas we saw:

2000-2006: 26.5% increase

This explains why we haven't seen the dramatic drop in prices that some other parts of the country have.

Dallas is the last one to the ugly party we call a housing recession. And in my opinion, we were kidnapped and forced to attend. Fortunately, we're not staying long.

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Your behavior never lies

What you do speaks so loud

that I cannot hear what you say.

Ralph Waldo Emerson (1803 - 1882)

Preston Royal book signing on Thursday

That's business author Steve Player at our Preston Royal Barnes & Noble where he'll be signing his newest book on Thursday, February 18th at 6:00 p.m.

Future Ready is the newest and hottest book about business and cost management.

Come on out and shake his hand ... and tell him his wife sent you.

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Happy Valentine's Day

to love birds everywhere.

no power in Preston Hollow

The beautiful snowfall is creating havoc in Preston Hollow. My neighborhood near Preston and Meadow lost electricity last night and the cracking and popping tree limbs kept me awake most of the night. We've lost a few trees and large limbs are scattered around the yard. Thank goodness for gas fireplaces. Unfortunately, I can't dry my hair with a candle.

The was the view on my street yesterday at about 5:00 p.m.

This was the view of my yard this morning.

Too many clumps of snow falling to step out into the cold to get photos of all the damage.
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Neither rain, nor snow, nor sleet ...

... can stop our mailman! Hope he can dodge the falling limbs all over the neighborhood.

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Signs of Winter in North Dallas

The only thing prettier than a sold sticker on my sign is ... this snowy scene.

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Battling Private Transfer Fees

You can thank your Texas Realtors that in Texas this hidden fee is not allowed when buying or selling a home.

In real estate, the fewer things that stand in the way of transfer of clear title the better. Of course, as a practical matter, we accept that some properties come with some encumbrances. For example, we might buy a property that includes a utility easement. Because we accept the value of that easement, we buy the property and accept the restriction it places on our use of the property.

But what if the property comes with an encumbrance that provides no public good? That’s what buyers increasingly are facing because of the growth of private transfer fees. These are encumbrances imposed on the title of a new property by the developer to generate a future income stream, whenever the property is bought and sold. Specifics will differ with each encumbrance, but in general, for the term of the restriction (up to 99 years, typically), the developer imposes a fee—say 1 percent of the purchase price—payable before there can be clear transfer of title.

Six states have already taken action against these fees (including Texas).

NAR is making free help available for drafting proposed state legislation seeking their ban. NAR has model legislation already available, but it also is working with a law firm to draft at no charge to associations proposed legislation to meet their state’s needs. State associations then have a solution to offer their lawmakers when they let them know of their concerns.

In the six-minute video above, Gerry Allen of NAR Community and Political Affairs talks about the growth of the fees, what states are doing to stop them, and how NAR’s assistance can help. [where: 75230]

Favorite Quote

"All life is a chance.

So take it!

The person who goes furthest is the one

who is willing to do and dare."

- Dale Carnegie

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Profitable Small Scale Home Improvement Projects

Small-Scale Exterior Home Improvement Projects Can be Most Profitable at Resale!

Some of the smartest home improvement investments may also be some of the least expensive, according to the 2009 Remodeling Cost vs. Value Report produced by Hanley Wood, LLC.

On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that were less than $14,000. This finding reinforces the importance of a home’s first impression and the value curb appeal brings to the real estate transaction.

Study Results:

• A steel entry door replacement recouped 128.9% of costs upon sale of the home
• Upscale fiber-cement siding* replacements recouped 83.6%
• Wood deck additions recouped 80.6%
• Midrange vinyl and upscale foam-backed vinyl sliding replacements recouped 79%
• and several different types of window replacements all returned more than 76% upon sale.

* some people will tell you that there is no such thing as 'upscale siding' but that depends on your price range and where you live.

You can view detailed results of the report at http://www.costvsvalue.com/.

However, remodeling projects are just one of many factors that contribute your home’s overall resale value. The location, condition of surrounding properties and the regional economic climate are also important considerations.

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Congratulations Ursuline Mock Trial Team

The 13 fabulous young ladies of the Ursuline Mock Trial Team placed among the top 4 teams in the Dallas regional finals today! Those 4 teams will be representing our city in the state Mock Trial competition in March.

Well done girls!

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Good Luck Future Attorneys

The Ursuline Mock Trial team earned a spot in tomorrow's finals of the Regional Texas High School Mock Trial competition. This team of brilliant girls is co-captained by talented Ursuline Senior Emily Player :)

While some of the 33 Dallas schools in last weekend's competition offer Mock Trial as a credit class, it is considered an after-school club at Ursuline and a few other schools. The coaches for this team are attorneys from the Dallas Bar Association who volunteer their time to train these potential lawyers.

Whoever said that attorneys are sharks, never met these fantastic Dallas lawyers. Watching these teams of teenagers and their coaches gives me inspiration about our future.

Most Important part of a Real Estate Contract

I've been negotiating a couple of contracts over the past week and it got me thinking ...

What do most people think is the most important part of a real estate contract?

Is it the price?

The signatures?

The contingency clauses?

In my opinion, its the terms. Terms include possession date, closing date, earnest money, ... and most importantly payment. How the buyer intends to pay for the property is an issue that too many sellers (and their agents) do not give enough attention. Even before the mortgage process got so tight, the financing terms were, and are, most important.

What if I told you that I would pay you $5 million for your $500,000 house, IF I could set the terms for payment? The price would certainly be right and I'm flexible on the dates, etc.

Would you take it?

If so, then let me know and we've got a deal. I'll pay you a $5 down payment and a dollar a week. Those are my financing terms.

But really, the financing terms (usually attached as a financing addendum) can make or break a contract. If the buyer is attaching a financing addendum, as most buyers do, the entire contract is contingent on the buyer obtaining the financing spelled out in the addendum. For example, if it states that they are getting a 90% jumbo loan at 5% interest, then they'd better have excellent credit. If they can't get the financing, then your contract can be cancelled and the buyer can get their earnest money back. Of course, it all depends on what terms you agreed to in the contract.

No one wants to see a deal fall through due to financing terms. But it happens all the time. And as a seller's agent, the last thing I want to happen is to have a sale fall through as we're heading to closing. Once the moving van is loading and property has been off the market (as a pending sale), its painful to go back to square one.

So, Mr & Mrs Seller; When you get that offer on your house, check those all important financing terms. They could be the most important part of your real estate contract.

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Picky Home Buyers

On the lips of many Realtors today: Current buyers are being incredibly picky. Sure, its a buyer's market and they can often afford to pick and choose at their leisure. But many of us are finding that it is sometimes reaching the point where there is literally nothing on the market that will please them. This is exceedingly frustrating for sellers as well.

Here is a sampling of the feedback that I've received from different agents for one property that I have listed for sale. None of these agents has brought us an offer. I swear, these responses are all about the same house:

"Our clients didn't care for the floor plan and thought the kitchen layout was awkward."

"Very lovely home with beautiful pool area and nice flow."

"Client liked living areas and master. Thumbs up to kitchen and back yard."

"They loved the backyard but did not like the master bath or kitchen, both very important to them."

"He liked it she didn't."

"Layout and actual space did not work for buyers."

"My client and her mother loved it, loved it, loved it. It's such a stunning house."

"Client felt house was too worn looking and would cost to much to bring up to update."

"Home shows fine. Client thought the sq. footage was too much for them."

"Great presentation. You have the best priced home in Preston Hollow. Very impressed."

"They need more usable backyard space."

"Clients felt there was too much work to do inside, but really liked the backyard layout."

"The home is lovely and the buyers enjoyed seeing it. They have however, selected another home and we are going to go forward with it."

"My clients liked this very much."

"They feel while it is very nice, it would need quite a bit of updating for their tastes and they would like the kitchen to open up to the den a bit more. Also, it is more space than they need as they only have one child."

"These folks have been looking at new construction but really like the layout, yard and pool of this house."

"Not right for them unfortunately. Great house though."

"The buyers are looking for a more contemporary style, but did admire this home."

When asked what the buyers want, I've run out of things to tell these sellers.

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