Ron's Blog Conroe/Woodlands/Lake Conroe

Where does the Houston area real estate market currently stand and what does the future hold? Let's take a look at what PMI and its' Market Risk Index says at this time. All figures quoted are for the Houston-Baytown-Sugarland MSA.

The PMI Market Risk Index for our area is <1>That means that there is a less than 1% chance that home prices will be lower two years from now. I don't think you can beat that score. A great indication that now is the time to buy.

In my humble opinion if you take all of these numbers together the current situation for the Houston-Baytown-Sugarland area housing market is good. The numbers indicate no surprises on the horizon. I think we are safe in assuming that we are in a stable and healthy real estate market. I have included a link below that will take you to the entire report. PS: If a successful women logo shows up in this blog rather than a buy now logo it is the computers fault!

The new interest rates for loans through the Texas Veterans Land Board for housing and home improvement loans this week are as follows:

5.98% Base Rate applies to all loans with a term greater than 15 years.

• Available Discounts to Base Rate*
  Discount for loans with a term of 15 years or less: -.25%
  Qualified Veterans with Disabilities Program Discount: -.35%
  Qualified Service Era Discount (Restricted Pool): -1.72%

Land program rates are: 7.25% 

Not much change this week. Please email me if you have any questions and please call me so that I may help you look for a home. Have a great day. View the Texas Veterans Land Board website and some other informational websites by clicking the links below. Thanks and have a great day!

Ron

Texas Veterans website

Bankrate interest rates

My Website

Credit Improvement

Program Specifics

I am still laughing at what I just read. It is hilarious. It is a report put out by the NAEBA (National Association of Exclusive Buyer Agents). The report is titled 2008 Report on Home Buying Euphemisms and Lingo. It is great. It is funny. You have to read the report. CLick on the report title for the link.

The report makes fun of many of the terms we agents use in our MLS listings. Of course after I finished laughing I went and checked all of my listings to make sure I hadn't used any of those terms. When I finish the process I may let you know how I fared.

Here is another list I found. This one was put out by The We Buy Ugly Houses people. The list is the Top Ten Cities for Real Estate Investing, 2nd Quarter 2008. Here is the list:

Top 10 Cities for Real Estate Investing, 2nd Quarter 2008

1. Dallas
2. Houston
3. Atlanta
4. Denver
5. Fort Worth
6. San Antonio 
7. Charlotte
8.  St. Louis
9. Milwaukee
10. Chicago and Kansas City, Kansas

They also had a list for the 1st Quarter, 2008. Here it is:

Top Ten Cities For Real Estate Investing, 1st Quarter 2008

1. Dallas
2. Houston
3. Atlanta
4. Fort Worth
5. St. Louis
6. Philadelphia
7. SanAntonio 
8. Denver
9. Minneapolis
10. Phoenix

I could really get involved with this list and report stuff. Some of it is pretty funny. Alas I need to go back to work. Time to see if I can salvage the deal I am currently negotiating. I could make a long list on this deal alone.....starting with a to high asking price and a to low offer!!

I can't believe it. I have become like some of my clients. I didn't used to be this way. Is there a pill I can take to cure this? You have no idea what I am talking about do you? I'm sorry. At least I can cure that.

I'm moving. I am a renter. Yes a realtor renter. At least since my divorce I have been a renter. I have been in this same place for three years and it is time to go. I need a change. I had to give sixty days notice to my current landlord. I did that without having a sure place to go but knowing a few realtors I figured no big deal. And of course it wasn't. I was offered so many deals from realtor friends that I finally stopped telling people I was moving. I got tired of explaining why I didn't want to live in the palace they were offering me. So what is the problem you ask? Why am I like one of my customers? I can't make up my mind which abode I want to live. That's right; I can't make up my mind on where to live. I have become one of my clients.

I have narrowed the decision down to two places and I can't make up my mind. Are you familiar with that particular buyer syndrome? Been there, done that and now I am "it". I have used all of the logic I use with my customers. I even did a buyers interview on myself. Yes I did answer myself. Do I need a shrink? I still can't make up my mind. I have taken the old yellow pad and #2 pencil and made my positives and negatives list. I have flipped a coin and it landed on its' edge. Just kidding on that one, but you get my point. I am my buyer.

Maybe the problem is that both potential landlords are friends of mine. Good friends. I know the one's husband, kids and grandkids and I know the others boyfriend. Opps ex-boyfriend, they broke up last week. I introduced them to each other two years ago. She called me crying this past week. And the other potential landlord called me this past week complaining about a mutual friend of ours. Thank goodness they know I have no social life and have all the time in the world to listen to them. Now you understand why the coin I flipped landed on its' edge. I can't make up my mind. I have become my client.

The last time I bought a house my ex and I walked in saw the pool, hot tub, counted the bedrooms, made a full price offer and closed in three weeks. Done. Fast and easy decision. I rented this house in a couple of hours. Done. Fast and easy decision. And now this, I have become one of my clients and can't make up my mind on where I want to live. Am I spending too much time with buyers? Have they rubbed off on me? Do I need a shrink? Why can't I make a decision on this matter? I'm not even buying only renting.

Okay I have three weeks until I have to be out of here so I have plenty of time. I am well over half packed. Maybe something will change. Maybe one of my buyers will call me tomorrow and tell me they have made a decision and that will spur me to make one. I can't believe it I have become my clients.

Maybe I just need a vacation. I can't believe it.....I have become my client.

This is sort of an advertisement. I admit it. But it is an advertisement designed to help anyone thinking about buying a home in the next six months to a year. I was just talking with a loan officer who is working on a non-FHA loan for a client of mine. The client has to go with a conventional loan rather than an FHA loan. For various reasons not everyone can go with an FHA loan. Any way the loan officer just told me because my clients credit score is only slightly below 680 the rate would be 3/8 to 1/2 points higher. That is nothing but money lost there because of a credit score. Pure and simple, money down the drain.

On a $150,000 loan that half point difference over seven years (the time you will probably own that home) is $4,116 dollars. On a $200,000 loan it is $5,460 and on a $250,000 loan it is $6,888. Plus those numbers don't include all of the other junk that goes with a lower credit score. And you do not want to use a good credit restoration company to raise your score? Okay waste the money. After all it is your money to waste. If I sound harsh I'm sorry I don't mean to be. It is just that I get frustrated when I see people waste money. Your good hard earned money.

Sellers? Yes you will probably have to buy again also so if you are thinking about selling in the near future it is something for you to think about.

I told you it was sort of an advertisement but it is the truth. A good agent is here to help with the entire real estate process long before you buy or sell. We take courses, study, read, learn, and do many things to help you and to save you money. If you are thinking about real estate in the future call your agent today. We won't mind we are here to help you.

I hope you have a great save money day!

Ron

First off I have to give credit to three sources for the basis of this blog. I have to be honest if nothing else. The sources for this blog are: 1 - usnews.com 2- realtor.com and finally realestatechecklists.com. Okay I was good.

First time home buyers make five major mistakes according to these sources. If I would add anything to what they said I would a sixth mistake which is buying too much home or not enough home. The too much home mistake is a financial one and the not enough home mistake is buying a home for only one child when you love one another and well nature takes its' course quicker than you thought it would.

What are the five mistakes first time home buyers make? They are shown below. My comments on each are in the quotation marks. 

1.They don't ask enough questions of their lender and end up missing out on the best deal. "I will tell you in number three on this list to interview real estate agents. Do not be afraid to get competitive quotes from a couple of lenders also and don't be afraid to ask questions about their fees and interest rates. Please remember though they do have to make money and can't do it for free."

2. They don't act quickly enough to make a decision and someone else buys the house. "There are times when you can take a week to think about the home and there are times when you cannot. Please understand we agents may not know how many times that home has been shown. I have found that about 8 out of 10 times buyers know as soon as you walk into a home that this is the one they want. Yes your gut instinct does work. You also know which homes you don't want so please let's not spend 20 minutes looking at a home you don't like the minute you walk into it. We can leave quickly."

3. They don't find the right agent who's willing to help them through the home buying process. "I agree with this. Do not be afraid to interview different agents and select the one you feel will work best with you. I will be sad if you don't pick me but I will get over it. Many years ago I interviewed pediatricians for my kids. Two of the doctors didn't like but the third one was great and was my boys doctor until the day they both entered the Army.

4. They don't do enough to make their offer look appealing to a seller. "My only comment here is that please remember that it takes two to make a deal. In most contracts there are only three important things, money, time and terms. You probably won't win on all three."  

5. They don't think about resale before they buy. The average first-time buyer only stays in a home for four years. "Go back to number three and please read that one again. A good realtor can and will assist you in this area. We want your repeat business in four years. None of us like those dog listings all though most of us have at least one of them like that."

Okay that is the list about first time home buyers and the mistakes they make. You know what though it isn't only first time home buyers making those mistakes. It is a bunch of us....myself included not that I look back on some things.

Thanks and please have a great day!!

Ron

The new interest rates for loans through the Texas Veterans Land Board for this week are as follows:

5.98% Base Rate applies to all loans with a term greater than 15 years.

• Available Discounts to Base Rate*
  Discount for loans with a term of 15 years or less: -.25%
  Qualified Veterans with Disabilities Program Discount: -.35%
  Qualified Service Era Discount (Restricted Pool): -1.52%

Not much change this week. Please email me if you have any questions and please call me so that I may help you look for a home. Have a great day. View the Texas Veterans Land Board website and some other informational websites by clicking the links below. Thanks and have a great day! And if you are in Texas getting ready to get drenched by our tropical storm/hurricane please be careful!

Ron

Texas Veterans website

Bankrate interest rates

My Website

Credit Improvement

Okay I know you hear this everyday but I am here to help you. And guess what it won't cost you a thing....not one dime. Put your checkbook away. I have a new strategy for you. I believe it will help you make more sales and yes it will help me also. I admit that, it will help me but it will also help you a sell more homes and make more money.

Are you currently listing homes for short sales? Are you currently listing foreclosures? Have you asked the sellers of the short sales what they are going to do for housing after the sale? Have you asked the last resident of the foreclosure where they are going to live? You are probably thinking well they will have to rent for four or five years while their credit rehabilitates itself. That is one answer but all that might do is get you a little lease check and not a closing check. Big difference between a sale check and a lease check. Sort of like McDonalds versus Cordon Bleu.

Have you considered telling your distressed clients that you have had their situation in mind and that if they started repairing their credit now that they could, in most cases, be in a home of their own again possibly within six months to a year? And this time not with an ARM or a home they purchased at an inflated price. Yes it is true. It can be done. Wouldn't you like to have a pipeline of ready to buy clients waiting for you in six months to a year? Just look at all of the short sales and foreclosures in your area. What if you had only 10% of those in a pipeline ready to buy a home next year could you make some money?

Okay so you don't list short sales or foreclosures why not go ask one of your areas big listing agents if you can be the buyer's agent for their short sellers and foreclosed homeowners? Talk about a ready source of hot prospects. You are there to help them. You are there to restore the dream of homeownership again. You can have a steady stream of buyers next year. It is done everyday. It is not taking advantage of the unfortunate. The vast majority of us are hard working, honest and ethical real estate agents and loan officers. The vast amount of short sellers and foreclosed on property owners are hard working, honest and ethical. We all have made mistakes in our lives. I know mine would fill a number of yellow legal pads.

I can help you make more sales next year and help those unfortunate homeowners who are in dire straits or where in dire straits. Credit restoration when done properly by a reputable firm with over 17,000 members and no Better Business Bureau complaints in the nation is effective, legal and ethical. There is not a day that goes by that the credit restoration firm I represent does not legally remove bankruptcies, foreclosures, charge-offs and many other items from credit reports. We can get your customers  in shape to buy a home again.

You can sit there and poo-poo the idea or you can get started on your steady stream of buyers for next year. The decision is yours. Remember what Winston Churchill said "The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty." Please email me today and get started on your pipeline of buyers. I can help you sell more homes and make more money.

I hope you have a great day!

Ron

As most of you know in addition to being a real estate agent I also act as an Executive Consultant for a national membership firm involved in credit restoration and financial improvement. I had the occasion this week to give a small seminar on Tuesday to about forty real estate agents and on Wednesday teach a class to about twenty real estate agents. In both cases the subject was credit scoring and credit restoration.  The enjoyment I get from giving these seminars and classes comes from the awakening the attendees get when the truth about how improving credit scores can improve financial life not only for them but for their clients. When people finally understand how deeply credit scores affect their lives and that they can make improvements in this area after a financial hiccup and save good sums of money it tends to put a smile on my face. After all when one is involved in a service business isn't helping people what it is all about.

One of the students in my Wednesday class mentioned that one of their credit card limits had been reduced by 25% without notice and for no apparent reason. They had always paid on time and in full. I mentioned many blogs back that the credit card companies would be doing this as a way of minimizing their risk in these tough economic times. The student was amazed to find out that this simple act by one of their creditor's had probably lowered their credit score. This is becoming a common practice on the part of the credit card companies. Please look at your statements closely.

Another example I use in my seminar that shocks most attendees, who think their credit is okay at about 620 or so, is how much an interest rate increase of three-quarters of a percent in a home mortgage really costs them. Let's say your credit score is 720 or better. You might well expect an interest rate of about 6%. If your credit score is about 620 in today's market you might expect an interest rate of 6.75% or so. The difference in what this score difference cost you when you consider your higher principal and interest, higher PMI and higher upfront fees can run $100 or more per month higher. If you own this home for eight years you will be paying $9,600 more in payments with this lower credit score.

Now let's add in the higher interest rate you have been charged on your car loan, higher credit card interest and who knows what else and you are eating yourself alive financially. Bummer. The only green stuff I like to throw away is brussel sprouts. I do not like to throw away my green (or do we need to call it multi-colored today?) money. I did that in my youth. No more!

Take a look at your credit report and your credit score. I highly recommend that if it is below 720 you go to work on it.....and not by yourself. I won't fix my own air conditioner or heater and you shouldn't try and fix your own credit. And please do not protest a credit report entry on-line. You have no idea of the rights you give up when you do that. It is you against a BILLION dollar company and guess who is going to win that battle almost every time.

Yes I like giving my seminars and classes but what I really like is a client who after six months comes back to me and says "thank you" you saved me thousands. Today your credit is your life.

Thanks and I hope you have a great day!

Ruining your credit score

Changes in credit card agreements

Credit restoration

I was shocked. Actually I was probably more like astounded than anything at what I had just read. On this rainy dreary morning on the gulf coast of Texas, currently suffering the hangover of Hurricane Dolly, I needed to refill my coffee mug, grab a cigar, yes I smoke those when I need to contemplate the world, and think. I had just finished reading a daily briefing I receive from a well respected real estate website that said 4 out of 5 (84%) adults say there is something intimidating about buying a home. One out of three adults says money-related issues are a concern. Okay I can understand the money-related issues, particularly in today's economy with astronomically high gas prices and the usual amount of fear mongering that comes with a presidential election year. But that still leaves 50% of home buyers with some form of fear involving the home buying process. I need to digest this and see if this could be the problem with any of my current fence-sitting buyers. Maybe that is a question I need to incorporate into my initial home buyers interview....."Is there anything you fear or that intimidates you about the home buying process?". Time to contemplate this with my coffee and cigar.

What is intimidating about the home buying process? Could it be me the agent? I hope not. If you will let me gain your trust by showing you that I really do have your best interest at heart and not my pocketbook there should be no fear of me. Heck I can't intimidate the 10 year olds on the baseball team I coach so I certainly should not be intimidating to you. Will you always like what I have to say? Probably not. When I tell you that submitting an offer 25% below a correctly priced listing is a waste of time that doesn't mean I am not on your side. It means my loyalty is to you but my duty is to all involved in the transaction and that I do not like killing three trees because of all of the paperwork involved in submitting a very low offer that I know is going to be immediately laughed at and rejected. Please don't feel intimidated when I tell you it is a waste of time to go look at a 1,800sf home because you liked the pictures when you have told me you need a minimum 2,200sf home. I am saving us both time and money. I am on your side. I hopefully am not an intimidating factor in the home buying process.

Could the loan officers be an intimidating factor in this process? I hope not. I understand that the Good Faith Estimate (GFE) they provide can be financial gibberish but that is the governments fault and not theirs. A good loan officer and a good real estate agent will explain every number on the GFE to you. Can it be intimidating when the loan officer tells you your credit score is not as good as you thought? Yep, probably, but that is not their fault. It is them telling you the truth. I hope you are not intimidated by the truth. I have a credit restoration specialist who can help with low credit scores. We are all here to help and not be intimidating.

What else could it be? Could it be the title company, the long legalistic title commitment, the escrow officer, the seller, the other agent, the appraiser, the surveyor, the one-hundred papers you have to sign at closing, the homeowners association, the deed restrictions, the home inspection, the termite inspection, the move, the new school district, the nosy new neighbors, the number of homes available to view, the higher mortgage payment, game room, media room, family room, great room...what is the difference in those, granite or corian, am I moving to a Peyton Place, Stepford Wives, Mr. Rogers' or Desperate Housewives type neighborhood, will my kids adjust to the move, do I really want to retire here, am I far enough away from my in-laws, am I to close to my in-laws, am I to far from my aging parents, carpet or tile, pool or no pool, do I really need a formal dining room, one story or two story, new or resale home.........tilt, tilt, tilt, tilt!!!! Maybe I just got it.

Ahhhhhhh.......maybe it isn't the process that intimidates us but rather the fear we create by thinking of all the above mentioned possibilities and questions that loom in this actually rather simple process. Remember Winston Churchill said "All we have to fear is fear itself". I know what I am going to do. I am going to revamp my initial buyer's interview and incorporate within that the question "What intimidates you about the home buying process?". Do you think that is a good idea? Please tell me as potential home buyers and agents what you think intimidates home buyers about the home buying process. I would really like to know. Perfect timing, my coffee and cigar are finished. Okay it is time to call my fence-sitting buyers and talk with them about what might be intimidating them.

Have a GREAT day!!

Credit Improvement website

My website