Prepping your house to sell faster

Ask anyone who’s sold their home what the experience was like, and the resounding response is “It was stressful!” Occasionally, someone will say it was their sale was a piece of cake, but sadly those are the anomalies. Fortunately, there are time-tested strategies for preparing your house to sell as quickly as possible. This can at least relieve some of the stress involved in selling. We’re going to focus now on how to prep your house for the market.

Here are some recommendations for prepping your house so that buyers will remember your house and put it on their short list of favorites.

Make the repairs

Sounds pretty obvious, but repairs aren’t always a priority for some sellers. But if you want to sell faster, this is critical. Some sellers make the mistake of thinking they can just give the buyer a seller’s credit at closing, or hope the buyer doesn’t care or doesn’t notice the flaws.  Make sure appliances that will be staying work, and aren’t missing parts. Kitchen cabinets are like a magnet to buyers, so make sure the paint or other finish is good, and that drawers slide easily. Repair any damage to bathroom tiles and chipped sinks and tubs. Take care of any water damage, including the source of the damage. Floors should be in good repair with no cracks or chips. The heating and AC systems need to be operational and well-maintained. This goes for the water heater, too. Ensure the electrical system is up to speed, including the breaker panel box, smoke and CO2 detectors. Same goes for outside the house: look for rotted wood, roof leaks, fences. Trim bushes and trees as necessary.

Painting the critical areas

Everyone knows a fresh coat of paint can make almost any home feel almost new. Nowadays, the recommended colors are the warm neutral ones. If there’s just no time to paint the entire house, focus on the critical areas: entry way, kitchen and bathrooms. It may be that your home already has good paint and simply needs some touching up, like patching nail holes or removing scuff marks.

Cleaning up and decluttering

And you need to make sure all that hard work doesn’t go to waste. It’s a good idea to ensure everything is tidy and clean before every showing.

Depersonalize

I’ve shown hundreds of homes to my buyer clients that weren’t depersonalized. Family photos everywhere, collections, diplomas, religious items, you name it. In many cases, the home was immaculate, but just not depersonalized. So, what’s the big deal? It’s simple: when buyers come looking, they like to imagine themselves living there. Having said that, your goal as the seller should be to make them imagine they could live there.

 Stage it!

We’ll get right to the point for this one: according to realtor.com, staged homes sell 88% faster and for 20% more than homes that aren’t staged. That’s pretty impressive, and you can do it yourself or hire a professional stager. The key rooms to focus on will be the living room, kitchen, master bedroom and bathrooms, and a bit of tasteful decorating will do the trick. Don’t forget about the exterior, since that will be the buyer’s first impression. Keeping the yard tidy and maybe planting some flowers or bushes can add a lot.

A final word

Imagine yourself walking through the front door of your home as a buyer who’s never been there before. Then tour the entire house from room to room, trying to be as objective as possible. Go a step further and ask a friend or relative to do the same – feedback can really be an eye-opener. And don’t forget about the yard, too.

Once you’ve done everything possible, you’ll be much more confident when the photographer comes, and when your realtor puts it on the market.

The Seller’s Market Continues, with One Silver Lining for Buyers

 2021 has been a seller’s market for sure, with the unusually low supply of homes coming on the market affecting pretty much the entire country. Even with that, local home sales in the Houston area this year still managed to outpace 2020’s sales by nearly 20%. In addition, the average sales price increased by 15% and the median sales price rose 14%. Houston-area single family home inventory was hovering at a 1.8 month’s supply, compared to the national supply of 2.6 month’s supply.

Homes were on the market much less time, too. In Houston, 26 days was the average time, decreasing from about 56 days last year. Unfortunately for some buyers who are financing, this seller’s market has been deluged by cash buyers and investors. More and more, buyers are finding it necessary to make super-strong offers, in many cases over asking price. If there is a silver lining for buyers, it has to be the super low mortgage interest rates.

 One thing is for sure: if you’re a homeowner who is looking to sell and then purchase another home, you’re in a really great position. The strong seller’s market will help you get the old home sold faster, and the extremely low interest rates will benefit you in purchasing the new home.

A Hidden Gem in Tomball: Tomball Museum Center

Tomball, Texas is just north of Houston and pretty laid back in comparison to the big city. A lot of folks love living here because of its country feel, safe neighborhoods, great schools and also easy access to major highways.

While it doesn’t have nearly as many cultural offerings as Houston, it is possible to find fun things to do. I’m shining the spotlight on the Tomball Museum Center, because it is kind of a rare little getaway in the middle of historic downtown Tomball. It’s basically a little reconstructed 1800’s town (with original structures), including a church, one-room school house, doctor’s office, a jail, sawmill, oil camp house, family homes, log cabin and a central gazebo. My family has taken a lot of pictures on that gazebo, and elsewhere on the museum grounds too.

There is also a wonderful Annual Open House and Candlelight Tour of the museum during the second week of each December, 6-9 pm. Experiencing the Christmas decorations, music, and chilly air can really put you in the Christmas spirit, and make you wish the night would last forever.

Last but certainly not least, the Tomball WWII Memorial is right behind the Museum Center. This is definitely worth spending some time for veterans and non-veterans alike.

Tomball Museum Center Mission:

“We are dedicated to the promotion of historical, cultural and educational pursuits.  This includes the discovery, collection, and preservation of any and all articles, materials, documents, and other objects which may establish or illustrate the history, growth or population, culture, education, resources, trade and daily life in the area of northern Harris County and contiguous areas, all of which are vital to preserving our history for future generations.”

Address:

510 North Pine Street
P.O. Box 457 
Tomball, Texas 77377-0457

To learn more, visit. https://www.tomballmuseumcenter.com/

Tomball is a Great Place to Live

Tomball? Why an article about a dinky town that many Texans can’t pinpoint on the map? You’ve heard people say “location, location, location.” In Tomball’s case, that is a very good selling point.

First of all, Tomball is conveniently located near the 99 Grand Parkway, 249 Tomball Parkway, 290 NW Freeway, with Interstate 45 and  Sam Houston Tollway 8 only a few minutes’ drive away. The Woodlands is very close, and downtown Houston, Katy, and Magnolia are just a short drive away.

Our children’s education should be another key determining factor in where we choose to live, and Tomball is home to several highly rated public schools. Tomball Memorial High School, Willow Wood Jr High School, Northpointe Intermediate School, Lakewood Elementary, Willow Creek Elementary, Canyon Pointe Elementary, and Creekview Elementary are all highly rated and well above average on Great Schools.org.

Finally, you can’t beat the laid-back feel of a town like Tomball. There is plenty of land for folks to spread out, and depending on the neighborhood, much more distance between homes than in the big cities. From my home in a traditional subdivision-type neighborhood, we only have to drive a couple of minutes (literally) to see horses, cows, longhorns and pastures as far as the eye can see.

Official Tomball website.

VA-backed home loans: don’t miss out on this important benefit

February 10, 2021

I first learned about VA home loans while I was still active-duty military, and was reminded of this benefit as part of my separation briefings when I retired. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA doesn’t actually make the loan, but guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Apart from the Texas Veterans Land Board loan program (please see my other blog for that program), I know of no better loan programs for veterans.

Aside from being a veteran, there are some other requirements to be eligible for a VA home loan, including:

·      You must qualify for a VA-backed home loan Certificate of Eligibility (COE), and

·      Meet VA’s—and your lender’s—standards for credit, income, and any other requirements, and

·      Will live in the home you’re buying with the loan

 Find out if you qualify for a VA-backed home loan Certificate of Eligibility (COE)

So, what are the benefits of getting a VA-backed purchase loan? Here are the biggest ones:

·      No down payment as long as the sales price isn’t higher than the home’s appraised value (the value set for the home after an expert reviews the property)

·      Better terms and interest rates than other loans from private banks, mortgage companies, or credit unions (also called lenders)

·      The ability to borrow up to the Fannie Mae/Freddie Mac conforming loan limit on a no-down-payment loan in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment.
Learn about VA home loan limits

·      No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP) PMI is a type of insurance that protects the lender if you end up not being able to pay your mortgage. It’s usually required on conventional loans if you make a down payment of less than 20% of the total mortgage amount. MIP is what the Federal Housing Administration (FHA) requires you to pay to self-insure an FHA loan against future loss.

·      Fewer closing costs, which may be paid by the seller

·      No penalty fee if you pay the loan off early

Application for a VA-backed home loan is pretty straight forward:

VA loans are obtained through a lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through eBenefits, by mail, and often through your lender. Learn More

Heard of the Texas Veteran’s Land Board? It could save you a lot of money.

I can’t tell you how many times I’ve talked to veterans who have never heard of the Texas Veteran’s Land Board (VLB). It could be because it doesn’t get a lot of airtime, or it could be that their real estate agents simply don’t know about it. In the end, these veterans wind up getting loans at a higher interest rate than they would have with a loan by the VLB. Almost every real estate agent who helped me buy homes had never heard of it, and it was by luck that a loan officer (a Vietnam vet) told me about it when I bought my second home. He prepared the loan package for me and even he was shocked when he saw how much lower my rate would be. Since I was not only a vet, but a disabled Vietnam-era vet, my rate went down even further, to the lowest he had seen in a long time.

In 1983, the Legislature created the VLB Veterans Housing Assistance Program (VHAP), to aid Texas Veterans in purchasing a home. Eligible Texas Veterans and Military Members have an opportunity to purchase a home with a competitive, low-interest loan with little or no down payment. Veterans, Military Members and their spouses may receive up to $548,250 on a fixed-rate loan for 15, 20, 25 or 30 year terms*. Veterans with a VA service-connected disability rating of 30% or greater qualify for a discounted interest rate. They also offer land loans and home improvement loans, but we’ll focus on the home loans in this article.

Ready for more? There are seven steps involved in getting a VLB loan:

1.     Review VLB home loan terms and conditions online

2.     Ensure eligibility and residency requirements are met

3.     Gather bank and income statements, DD214 and other financial documents

4.     Pick a VLB participating lender by county to get pre-qualified

5.     Find your dream home

6.     Complete required documentation

7.     Pick up your home keys at closing

To be eligible for VLB loan programs, Veterans and Military Members must be:

• At least 18 years of age.

• A bona fide and legal resident of Texas on the date of application and meet one of the following service criteria:

  • An active-duty Military Member.

  • A member of the Texas National Guard.

  • A reserve component Military Member having completed 20 qualifying years for retirement.

  • A Veteran having served at least 90 active-duty days unless discharged sooner due to a service-connected disability and not discharged dishonorably.

  • A surviving spouse of a Veteran listed as missing in action or whose death was service connected.

If you haven’t already done so, click here for everything you need to know about the VLB.

Buyer competition may get even stiffer in Spring – be prepared

In my post of February 4, I discussed how 2020 was a record-breaking year for Houston home sales. Well, all indicators point to that trend continuing at least through this Spring and likely beyond. There was a very low number of homes available for sale in January, which will likely cause prices to continue rising at least through Spring. As seen in the chart below, new home listings have dropped considerably across the nation from the previous year, while median listing prices have risen:

Realtor Magazine, February 2021

Realtors understand the importance of acting quickly in this kind of market, but not all buyers are aware of this urgency (especially first-time buyers). Many may have an unpleasant experience the first time they make an offer, when it turns into the inevitable “bidding war” with other buyers. That’s why it’s crucial that realtors prepare buyers for this situation by explaining the market, as well as the best strategies to get that home they want in such a competitive seller’s market.

Negotiation is certainly a big part of the process, but a bit of old-fashioned psychology and common sense comes into play also. How much do you want to offer initially? What’s the absolute highest you can ultimately go? Do you increase in large or small amounts? Will the home appraise for the highest amount you are willing to pay (of course, if you’re a cash buyer this isn’t a concern)? Are you willing to offer even more than what the home will appraise for, and make a larger down payment to offset the higher purchase price? And try to put yourself in your competitor’s shoes – they could be thinking just like you as far as pricing, or they could be a bit lower or higher. And are they automatically adding $5000 (a nice, round number) to their original offer, or tacking on substantially more?

It can be a bit nerve-wracking for buyers, but also for their realtors at times. It’s just all part of the business, so try your best to be prepared. You may end up losing a couple of homes to higher offers, but I promise you that you will ultimately win that dream home.

Houston housing market breaks sales records for second consecutive year

The Houston housing market is off to a great start this year. Believe it or not, 2020 was a record-breaking year for home sales, even with the dark cloud of the pandemic rearing its ugly head. According to Houston Area Realtors, 96,151 single-family homes were sold in 2020 versus 86,996 in 2019, the last record-setting year: a more than 10% increase.

The designation of real estate as an essential service gave the industry a much-needed boost after the March and April stay-at-home orders eased up. Interest rates were already low, and buyers were out in force to take advantage of the new market landscape. Virtual home showings and open houses were in full swing during the stay-at-home period, but continued to flourish throughout the remainder of the year. The chart below compares the total numbers from 2019 and 2020:

HAR.com, January 2021

An unfortunate downside to that record sales activity last year is that now the inventory is significantly lower than normally expected this time of year. But things are still bright, since interest rates are still very desirable. And patience does eventually pay off if you’re still looking for that perfect home.

If you like public gardens, there are plenty around Houston!

I’ve travelled all over the world several times, while active-duty military and later as a civilian with my wife and daughter. Wherever we are in the world, some of our favorite places to visit are botanical gardens and parks. When we moved from northern Virginia to Houston, our first thought was “well, it’s just a big flat area made up of several other cities, no seasons, and not a whole lot to see.”

 It wasn’t until we started asking around and doing research that we started finding these gardens and parks; and they are sprinkled all over the Houston and surrounding area. Here is a list of some of our favorites to get you started:

North Houston, Tomball, Spring area:

Mercer Botanical Gardens

22306 Aldine Westfield Rd, Humble, TX 77338

Cypresswood Water Conservation Garden

4107 Evening Trail Dr, Spring, TX 77388

Mandolin Gardens Park

10315 Summit Bridge Ln, Houston, TX 77070

Closer to downtown and south Houston:

Houston Arboretum and Nature Center

4501 Woodway Dr, Houston, TX 77024

Bayou Bend Collection and Gardens

6003 Memorial Dr, Houston, TX 77007

Japanese Garden (Hermann Park)

6000 Fannin St, Houston, TX 77030

McGovern Centenial Gardens (Hermann Park)

1500 Hermann Dr, Houston, TX 77004

Rose Garden (Hermann Park)

5555 Hermann Park Dr, Houston, TX 77030

Houston Botanic Garden (Southeast of downtown Houston)

8200 Park Pl Blvd, Houston, TX 77017

Thinking of buying? Winter is a great time!

Everyone knows mortgage rates have been at the extreme low end of the spectrum for some time now. The question is: how long before the rates start creeping up? This is a case that whatever goes down, must eventually go back up. Not only that, but we are still in the middle of winter, when the rates usually are better than the other times of the year.

Lenders are willing to routinely offer a discount of almost 20 basis points in January, as compared to other times of the year. If you took out a mortgage in July at 3.5%, this month you may have gotten it at 3.3%. But if you miss out in January, remember that December and February are the next-best (cheapest) months to shop for a loan.

What does this mean to us? Just like what is happening across the U.S., the housing market here in the Houston and surrounding areas has been very hot, with a majority of properties getting multiple offers. So even though it’s supposed to be a slow season, it has been very competitive for buyers, with many properties selling for above asking price. People are taking advantage of the super-low rates, and if you’ve been thinking of buying and have been on the sidelines, you may be missing out on an opportunity that only comes along once in a blue moon.

That home looks great, but what if it’s in a flood zone?

I recently had a client who was interested in a home that was partially in a designated flood zone. The part of land in question was a back corner of the three-acre lot, and the home itself was toward the opposite end of the lot on higher ground and reportedly had never flooded. Other than that issue, the little home and everything else seemed to be great. What to do in a case like this? The question comes up more often than you may realize, especially after the Harvey flooding in 2016.

Even though Harvey was more of an anomaly that caused many previously “high and dry” homes to suffer damage, the stigma remains in many people’s minds. It was indeed a rare event, but it happened with such ferocity that flooding has taken on a whole new meaning to many home buyers. I make it a practice to provide my buyers with a current screenshot of the county flood map where the property of interest is located. This also shows detailed information about which flood zone, if any, the property is located. But I go a step further and advise them to check with their insurance company to find out what they have to say about the property and the possibility of needing flood insurance. This is what a typical flood map looks like, with the property in question designated by the purple marker:

A word of caution is in order. The county flood maps are periodically revised, so people need to ensure they are looking at the latest information. And this is another reason to call the insurance company to have that second line of defense. Something else: it’s always of some comfort to see a home listing that mentions the “home never flooded,” but it’s still really good to know about whether it’s in or near a flood zone.

There are many buyers who don’t seem to mind a home in a flood zone, since they feel their flood insurance will cover any potential damage, and the home is “perfect enough” to warrant buying the place. There are others, however, who simply do not want a home in a flood zone, and will not even look at the ones that are. They prefer having the peace of mind of not living in a flood zone. I fully respect and understand both viewpoints, and ultimately, it’s up to the home buyer to decide which direction to go.

Finding a Home Near Great Schools Pays Off

When I bought my first couple of homes I never even thought about the local schools. That’s because I wasn’t married when I bought the first one, and when I bought the second one with my wife, neither of us gave schools a second thought. We were just trying to find the best neighborhoods we could afford to live in, and the ones that looked safest.

 Luckily, as it turned out, both of those homes were located in better school districts. Since then, a good school district is one of our top criteria when looking for a home. Since we came to this realization, I can’t tell you how many “perfect” homes we looked at and ultimately passed over because the local schools weren’t very good. There were times where we even broadened our standard to areas where the schools were rated a bit less than 10, 9 or 8 on a scale of 1-10. The home we’re currently living in has schools that are rated 9 or 10 across the board, but it’s not always as easy as you may think to find those areas.

 How do you find these better school districts? If you don’t have a realtor, sites like Zillow have a great built-in feature to narrow down the better school areas. Take notes or even screenshots of the map with schools pinpointed, and do your home searches in those areas. If you have a realtor, you can ask them to build their home searches around those schools. Realtors who have kids (like me) fully understand your concerns around schools, especially now in 2021.

Another benefit of living in an area with great schools concerns property value and the ability to make a quicker sale in the future when the time comes. When you’re ready to sell, I guarantee many home hunters are looking for those “elusive” homes near great schools for their kids, and to them, it’s worth paying a little (or a lot) extra. Keep good school districts in mind when home hunting, and I promise you won’t regret the extra time and occasional frustration.

Historically low interest rates vs the pandemic

The current pandemic has darkened our lives in so many ways that it’s almost unimaginable. Countless lives lost, hospitalizations, businesses going bust, and loss of livelihoods have taken their toll. And even with the new vaccine, we are still not out of the woods. One positive thing has happened, however: historically low interest rates have caused a jump in home sales and refinances.

Super low interest rates have given the housing market a kickstart, almost like never seen before in recent history. For example, the rate for a VA Streamline 30-year fixed refinance has been 1.75% for several weeks. Buyers have been out in force actively hunting for the best homes.

 “The housing market is likely to do well in the next couple of years,” according to Ralph McLaughlin, chief economist with Haus, a financial technology company. The overall outlook for the housing market remains positive. However, if unemployment doesn’t recover soon, the number of foreclosures could rise significantly.