Upgrading to a qualifying energy-efficient metal or asphalt roof can cut your cooling bill as well as knock off up to $1,500 from your tax bill.
The roof of your house protects against more than rain. The sun's rays beat down relentlessly, especially during summer. The intense heat can raise the temperature inside your home. Proper venting and insulation help keep the cool air in and the warm air out. So, too, do energy-efficient roofing materials, which take the brunt of the solar onslaught. Uncle Sam is encouraging homeowners to improve the roofs of their primary residences with a tax credit worth up to $1,500.
During 2009 and 2010, you can claim a credit for 30% of the cost of qualifying asphalt or metal roofing materials. The credit, which should be taken on IRS Form 5695 for the tax year in which the work is completed, can be split between 2009 and 2010 but can't exceed $1,500 total for both years. You can't claim more in credits than you owe in taxes.
Metal vs. asphalt roofs
To qualify for the tax credit, you must use either metal or asphalt roofing materials that are designed to reduce heat gain-the amount of heat transferred into a home-and meet the requirements of Energy Star (http://www.energystar.gov), a federal program that promotes energy-efficient products and practices. Metal roofs must have appropriate pigmented coatings and asphalt roofs must have appropriate cooling granules. Asphalt materials can be either traditional shingles or modified bitumen (rolled asphalt sheets). Energy Star has a list (http://downloads.energystar.gov/bi/qplist/roofs_prod_list.pdf) of all of its approved roofing products, but only the metal and asphalt materials may qualify for the tax credit.
It's a good idea to hang on to manufacturers' certification statements (http://www.gerardusa.com/Energy%20Star/ESTaxCert.pdf) that attest to the tax credit-worthiness of the roofing materials you purchase. These can usually be found on product packaging or company websites. You don't need to file these with your tax return, but the IRS could ask for them later. Consult a tax advisor.
Dean Kucharski, a 22-year veteran of the roofing business in Pontiac, Mich., estimates that for a typical 2,200-square-foot home, a mid-range asphalt roof will run about $7,000 to $12,000, including labor. The good news is that it will likely last 20 years or more. For a metal roof, expect to pay twice as much, though it can last for 50 years, he says. If you hire a contractor, get an itemized bill that breaks out the cost of materials since labor doesn't count toward the tax credit. Materials should account for about half the bill on standard roofing jobs.
How much roof do I have?
You can get a rough estimate of how much roofing material you'll need by figuring the square footage of the footprint of your home and adding about one-third more to account for roof pitch, overhangs, dormers, gables, and so on. Roofing contractors often quote in terms of "squares." One square equals 100 square feet. So if a roofer says your house is 20 squares, it means it's roughly 2,000 square feet-20 times 100.
Once you're ready to pick a roof type, Kucharski suggests talking to an area building wholesaler or a company that specializes in roofing materials. It's important to consult with someone who knows what types of materials are appropriate for a given region's climate. Big-box retailers may not have as wide a selection or knowledgeable staff.
Finding a good roofer entails the same steps as finding any qualified contractor: ask neighbors for recommendations, collect at least three bids, check references, and get everything in writing. Craig Silvertooth, executive director of the Center for Environmental Innovation in Roofing (http://www.roofingcenter.org/), recommends finding a contractor through the National Roofing Contractors Association (http://www.nrca.net/), which has about 4,000 members.
Save on cooling bills
You'll get the most bang for your roof-renovation buck if you live in a hot climate, namely the South and Southwest. Expect to save between 7% and 15% on your cooling costs with energy-efficient roofing materials, says Michelle Van Tijen of the Cool Roofs Rating Council (http://www.coolroofs.org/). If you pay $300 a month to cool your home, figure you'll cut your monthly bill by up to $45.
Ironically, with roofs there is such a thing as being too energy efficient. In winter months, roofing materials with very high heat-deflecting qualities can increase heating bills. However, you're more than likely to make up the difference on your air-conditioning costs. That's especially true if you live in an area where you run your air conditioner much of the year.
Think hard before replacing a roof that's in perfectly good shape. Consider instead a roof coating, a material painted over your existing roof that offers insulation and sun reflection, says Silvertooth. Roof coating costs about 75% less than replacing a roof, though it doesn't qualify for the tax credit. Another affordable way to save on cooling costs that doesn't even involve the roof is to add more insulation (http://www.houselogic.com/articles/tax-credits-adding-or-replacing-insulation/) to your attic. This home-improvement project can even be tackled by weekend warriors, and it qualifies for a federal tax credit.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a business editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home's character in mind when making upgrades.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2009. All rights reserved.
My last blog post produced some new information that will be helpful for anyone who wants to dig deeper into this. In particular, Sharon Curtis of Hileman Real Estate, Inc. gave me this link for a webinar on the subject. http://www.realtor.org/about_nar/stinton_webinar_110609
In addition, at the NAR convention, I spoke with Steve Murray, the publisher of Real Trends. Below is an article that he wrote on the subject. He has given me permission to post it here. I welcome your comments to help everyone sort this out.
RPR and the Future
On November 6th the National Association of Realtors announced the launch of an important new initiative under their wholly owned subsidiary, Real Property Resource (hence “RPR”).
The news was met with both excitement and concern among members and those who supply services to the industry. We talked with several leading brokerage firms, the heads of several state and local associations of Realtors®, the heads of some MLS operations and as well as those who provide technology services to the industry.We also attended a presentation by Marty Frame, the newly appointed president of RPR and Dale Ross, the CEO of RPR.Lastly we talked with leaders of LPS, the firm that made the deal withRPR.
What is RPR and what does it propose to do?RPR has entered into an agreement withLPS, a leader in real property information and brokerage/mortgage/settlement services technology, to license real property records for most of the country and for the system that powered Cyberhomes, an LPS consumer and professional web offering.In its simplest form, RPR desires to offer participating MLS systems a swap – the real property records for the listings of the MLS. The plan as we understood it was that there would be no charge to either party for this exchange.
RPR will also license other real estate, community and neighborhood data from a variety of sources. This fits with an overall goal to be a one stop supplier of information for real estate professionals. RPR will then aggregate its real property records together with the MLS data to create a gold standard for AVM and sell these tools to leading mortgage financial institutions and others that may have interest in this kind of data. There is no plan or intent to create a public Web site (presumably they cannot compete with Move Inc’s Realtor.com). Statements that we heard from RPR also indicated that no real estate professional or homeowner detail would be sold to any outside parties.
So RPR proposes an exchange – their real property data and systems for the listings from the MLS’s across the country. Their income to pay for this will come from selling valuation tools to financial institutions.
So what are the concerns? First, is this really what they plan and what will happen if the revenues from their sales of their AVM don’t cover the costs (and they are said by some to be north of $30 million for the first five years)? Many MLS’s now have property records integrated into their MLS. Although they pay for them this is not considered a large cost. Some MLS operators already have profit making efforts marketing their own data to their members and others. Some large brokerage firms and national networks see this as yet another endeavor from NAR that while seemingly innocent, will create more of a level playing field.There are technology vendors who think that providing the data is only the first step to entering real estate technology applications (such as CRM’s, transaction management and CMA) and that RPR would have a huge unfair advantage over non-RPR providers.
So what do we think?
We assume that most, if not all, MLS’s and boards will find a way to accommodate RPR in their offer of an exchange.It could be that RPR will have to work directly with brokers and national networks to do so and there may have to be some revenue sharing to accomplish their goal. Second we have no particular insight into whether a Realtor®AVM will be competitive with those that already exist. This is a huge market with several strongly capitalized and entrenched competitors. Lastly we don’t know (and RPR likely doesn’t either) how much additional capital it will take to create the AVM and other tools and turn a profit doing so. Yes they have targets and budgets and projections, but they are not the same thing as actual results – we all know that.
Should their projections fall short of expectations or should RPR just enjoy exploiting the opportunity, they could expand their offerings to the applications side of the business in addition to the data segment and offer competitive tools.No one we talked to could do more than speculate about this possibility – but it does have several firms' attention.
NAR has a mixed record of attempting these large scale transactions.The first RIN didn’t work as they expected – that led to Move Inc and Realtor.com, which has had some successes and some failures along the way. The business of business is a different world than the business of a trade association. Few have done both well.
Will the endeavors and future developments of RPRfurther level the playing field? It could but much depends on whether RPR’s announced plans are really all they are going to do. We do believe that the market power of NAR will be greatly enhanced by the successful operation of RPR.Is it possible that they will find as time goes by that members will “ask” RPR/NAR to broaden their offerings in the name of greater member service? And what might those future services look like? NAR generally cannot and will not discriminate between members in its service delivery and pricing.
There are a few curiosities about this launch. First we discovered that most of the leadership of the nation’s large real estate organizations had not been contacted about RPR even several days after the announcement. You want to launch a new endeavor like this it would seem likely that you would at least want to clue these leaders in on the plan (with more to follow later of course) Second, from comments we received at the briefing and elsewhere it seemed like this all came together in a rush to make the convention deadline. Large transactions like this almost never get everything thought through well enough even when there is time. When it is hurried due to an announcement deadline frequently something critical gets overlooked.
There are good solid people involved in this deal. Many know well the talent of Marty Frame of RPR, Dale Stinton of NAR and Jay Gaskill of LPS. These are smart, thoughtful and successful leaders. Having good leadership is always a plus. So one last question we would have is how well the interests of the parties will stay aligned when the inevitable hardships and trials surface? Once again we are not sure whether or how well these interests are aligned even now.
Conclusion
Should the announced intentions of RPR truly be all that are in their plans, it could result in a wider array of information at lower costs for members. Should these plans fail to deliver these benefits to members while also making a profit from the sale of AVM products, then we cannot be sure that they won't use the power that they have in ways that may not be in the best interests of members and the market.
You probably know many steps you can take to make your home more attractive to would-be buyers. Keep the yard mowed and edged, put a fresh coat of paint on the front door and you’ve started boosting its curb appeal. Inside the home, be diligent with cleaning chores and putting things away so the house looks its best whenever a buyer shows up.
But consider taking the presentation of your home even further if you want to the best chance to sell it quickly and for the highest possible price. That’s where home staging comes in. Staging helps you make the home more appealing to the widest possible audience.
Staging works best when someone with a practiced eye evaluates your home to give you tips to make it more sellable. Most people have a hard time seeing their home objectively enough to make good staging decisions.
Your Realtor® may have experience staging homes or at least have suggestions to get you started. He or she may also have a list of staging professionals for you to consider hiring. As with hiring other professionals, you can ask friends for referrals and you should inquire about the stager’s references. Also, make sure to ask the home stager whether they will give you a free estimate.
Home staging may involve removing some furnishings, making changes to the décor, or moving some furniture around. Some stagers may bring in new furniture or suggest accessories that can make a difference. You might get advice about painting a room a different color.
Remember that staging your home is not the same as decorating it. Staging is all about helping potential buyers focus on the property’s best features while minimizing the less attractive ones. Knowing that, you shouldn’t be offended if the home stager recommends changes to the master bedroom that you spent so long getting just the way you like it.
It’s not about you anymore; it’s about the people who will consider buying your home. And the better the impression your house makes on buyers, the closer you will be to making a sale.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
When you purchase a house, you’re not just buying land and a structure. You're also choosing the community you’ll live in. Finding the right neighborhood for you is an important consideration. After all, many details of your daily life depend on your location. And while you certainly can describe a neighborhood by a subdivision name or the streets that form its boundaries, a neighborhood is much more than a section on the map. It is defined by the people, amenities and character of the area.
Set your priorities
Deciding on a neighborhood that fits your lifestyle and desires is an important step in ensuring your happiness. It can be challenging, too. There are so many things to consider.
Quality schools top many homebuyer lists of desirable neighborhood amenities. It may surprise you that being in an area with good schools is important even for people without children because of the influence on resale value.
It’s unfortunate that we have to think about it, but crime statistics of a neighborhood are important, too. Take your time and do your research on this one.
You will also want to consider transportation issues, such as how living in this area is going to affect your commute and the ease of access to public transportation and major thoroughfares.
Some people would like to be in close proximity to healthcare facilities. Others find that having quick access to shopping centers or their favorite grocery store or restaurants is a top priority. Still others may value features such as public pools and parks, access to bike routes and jogging and walking trails.
Everyone’s list will be different. The key is to find a neighborhood that scores well in areas you deem important. That’s a good place to concentrate your search.
It would be great if you found everything you were looking for, and I hope that you do. However, if you’re like many people, you may have to make some sacrifices. A neighborhood you’re considering may score well on most of your checklist but not meet every single one of your criteria. That’s when you have to decide if a missing attribute can be offset by the presence of another.
Now that you know what’s important
Once you establish what you want in a neighborhood, how do you find a place that has what you’re looking for?
A great way to judge the character of an area is to go out and view it with your own eyes. If you have the opportunity, get in your car and drive around or walk through the neighborhood. Don’t limit yourself to one particular time of day. Visit the neighborhood during rush hour, mid-day, on weekends and other times to see if there are significant changes at different times.
Talk to people who live and work there. Ask them to candidly describe their neighborhood. Check out the schools and stores.
If you are relocating to a new city and want to get a feel for the area, subscribe to the community newspaper. You can find out a lot about a neighborhood through a local paper.
Searching the Internet can yield interesting results, too. Many neighborhoods have online communities where frank, lively discussions of neighborhood issues are common.
You also can find sites that offer demographic information, data about crime, statistics about public and private schools, business reviews and much more.
Get local expertise
When you purchase a house, you’re also making an investment in a neighborhood. As a result, choosing the neighborhood should be a primary consideration when you begin your home search. Many Realtors specialize in specific neighborhoods and can offer valuable insider advice and local expertise.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Does it surprise you that Texas homeowners pay more for homeowners insurance than residents of any other state in the U.S.? You may wonder why residents of Florida, with all of its hurricanes, and California with earthquakes, mudslides and wildfires don't pay more. Average Texas rates easily surpass those states, though, according to information from the National Association of Insurance Commissioners. Weather is a major factor in the cost and Texas has historically had hail, hurricanes, tornadoes and floods.
Although insurance companies determine your rate by looking at data across the state as well as by zip code, there are steps you can take to make sure you're getting the best deal possible.
Consider the property When purchasing a house, you may want to consider its age. The newer the home, the cheaper it usually is to insure. Also, when you purchase a new home, some insurance companies will give you a discount because they believe fewer problems will occur. Now that doesn't mean you should buy a new home solely because of insurance costs. But it is a factor to keep in mind.
When purchasing an existing home, you may want to inquire about that property's CLUE report (Comprehensive Loss Underwriting Exchange). Only the homeowner can order this report, so you must request it from the seller. The CLUE report will enable you to learn about the history of insurance claims for the property. Not only will a lengthy list of claims be of interest to you regarding the property's condition - it might have some bearing on premium costs and your ability to secure coverage.
Increase the amount of your deductible The deductible amount you choose makes a significant difference in your premiums. The deductible is the amount of money you have to pay toward a loss before the insurance company will begin covering your claim. If you choose a higher deductible, you will save money on your insurance premiums. Basically the more risk you take on, the lower your premium will cost. But make sure you have the means to pay your deductible if a loss should occur.
Don't over-insure When you are considering how much coverage to buy, don't include the value of the land. The land, for the most part, is not susceptible to damage like the structure of your home is prone to, such as hail, wind, theft, etc.
Use security devices Many insurance companies will offer a discount - sometimes as high as 20 percent - when you install a security system that includes a burglar alarm to call the police. Even just installing deadbolts and smoke alarms can save you a few dollars. Before making a major change in your security measures, talk to your insurance company about what kind of discounts they offer and how much it would lower your premium.
Retire or kick the habit Smokers typically have higher premiums because their homes are more susceptible to house fires than nonsmokers. Also if you are 55 years or older, ask your carrier if they offer a discount for seniors.
Use the same company for multiple policies Some insurance companies give you a discount if you buy more than one policy from them, such as homeowners insurance and automobile insurance. This multiple policy discount can save you as much as 15 percent.
For more information about homeowners insurance, you can find a wealth of resources on the Texas Department of Insurance Web site, http://www.tdi.state.tx.us.
You can also talk with your Realtor. Realtors are knowledgeable about homeowners insurance and may be able to help guide you into making a decision that could save a substantial amount of money. Your Realtor understands insurance as well as all of the aspects involved with purchasing or selling a home.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Interested in a green home? I'm not talking about paint color. I mean green as in environmentally friendly.
Many consumers today consider the environment when making purchases. Just look at the popularity of hybrid vehicles, alternative fuels, locally grown produce and a host of other products designed to use fewer resources and reduce pollution and waste. Add housing to the list.
What pollutes more - a car or a house? You don't think of houses being responsible for carbon emissions, but they are - to a significant degree. The energy you use for heating, cooling, appliances and lighting most likely comes from a source that produces carbon emissions. Other factors, like water use and building materials used to construct or remodel a home, can also significantly affect the environment.
You might think the best way to "go green" in housing is to start from scratch. And it's true. If you're building a new, custom home, you can make decisions that will greatly increase energy and water efficiency. You can also select the most environmentally friendly building materials and construction methods. But if you're not building a new home, there's no need to throw up your hands. There's still plenty you can do to make a difference.
How low can you go? When looking to purchase an existing house, it's possible to assess some aspects of its energy use. How old is the air conditioning unit? Does the landscaping consist of native plants? You might even be able to secure energy bills from the current owner to review electricity and water usage (but keep in mind that your usage may vary considerably).
You can also hire a professional to better determine just how energy efficient or inefficient a home may be.
Whether purchasing a home or wanting to make the best of the house you already own, there are many steps you can take to improve energy efficiency. Here are some examples:
Install rain barrels to collect roof runoff and use that water for irrigation.
Replace water-thirsty plants with landscaping that requires little additional irrigation.
Replace old windows with energy-efficient windows.
Seal air leaks around windows, doors, and other areas that may have gaps.
Seal air ducts.
Install additional installation.
Replace appliances with newer models that have earned the EPA's Energy Star designation.
Replace heating and cooling units.
Replace the water heater with a more efficient model.
Change out incandescent bulbs with compact fluorescents.
You probably know that efforts like these offer benefits beyond helping the environment. They also save money. Yes, you pay more on the front end to make improvements such as those listed above, but each one of them reduces your expenses - often paying for itself in short order. As energy costs continue to rise, the more you can do to cut consumption, the more it pays off.
Be informed You can find information online about how to lower your energy consumption and make wise environmental choices in housing. The EPA's Energy Star Web site, EnergyStar.gov, offers resources and tips about new homes, home improvements and more. You can find advice, calculators and other helpful tools on other sites as well.
Your Realtor also can help you make informed, green decisions. Some agents have even taken courses specifically designed to help their clients reap the benefits of environmentally friendly practices.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
The home or condominium that you're thinking of buying may be governed by a homeowners association (HOA). These legal entities are common and growing in popularity across the country. According to the Community Associations Institute, more than 57 million residents in 23.1 million housing units were governed by HOAs in 2006; that's up from 45.2 million residents and 17.8 million housing units in 2000.
These associations provide many benefits, such as property maintenance and amenities that individual residents couldn't otherwise afford, and their rules often protect property values. But the dues HOA members must pay and the covenants, conditions, and restrictions (CCRs) they must follow rub some people the wrong way.
Look past the pool and golf course Your perfect condo may have a great pool or your dream home might be sitting on the first tee, but remember that those things are only part of the HOA's scope. When you purchase a property governed by an HOA, you enter into a legal contract with the association. You agree to abide by the association's regulations and pay its dues. In exchange, you get a community guided by an HOA and the access to its facilities and perks.
Read before you buy Make sure that any uses or freedoms you expect to come along with your property are allowed in the CCRs. Do you store your boat trailer in your driveway? I doubt your CCRs will allow that. Want to paint a bright color? Check the color palette allowed by the HOA.
You may have heard horror stories of home repossessions and other legal squabbles involving property owners and HOAs. A common theme among many of these cases is homeowners not understanding the regulations or ignoring them. Review the CCRs carefully before you purchase the property and you'll be less likely to run afoul of your HOA.
About those dues ... HOAs run on dues - your annual fee for living in the community. These fees range from tens to thousands of dollars, depending on the neighborhood or building and what amenities it offers or what things are covered. Ask how much the dues are and if they've increased during the past few years.
Find out what the dues cover and what they don't. For example, your condo association may perform all exterior maintenance. That means when the roof leaks, your dues pay for its repair - even if you live on the ground floor of a three-story building.
Who's in charge? When you review an HOA's documents, be sure to inquire about its finances. Is the HOA solvent? Does it have a reserve fund? Who controls the money? What kind of oversight is that person subject to?
Find out who manages the HOA and what role residents have in its governance. There may be a board or other group of property owners who manage the association. Take some time and talk to people who currently live in the community. How do they feel about the neighborhood or building? Find out their impressions of how the HOA is run.
Perform some due diligence before you sign a contract to purchase a property governed by a homeowners association. You will be able to make an informed decision about the HOA's pros and cons without jeopardizing your real estate transaction.
For expert advice about HOAs and all kinds of information about owning, buying, or selling a home, contact a Realtor.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com//. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Whether you’re buying or selling a home, you’re going to be confronted and perhaps overwhelmed with numbers: interest rates, days on market, loan terms and many more. They’re all significant in the transaction, but what do they mean?
This column is not the place for in-depth analysis of real estate math … that would be a tall order, indeed. I hope to convey two things: the importance of understanding what the numbers mean and that there is help available to decipher it all.
Should you go with a 15 or 30?
Many buyers are able to shorten their financial obligation by choosing a 15-year mortgage instead of the 30-year variety. The payments on 15-year mortgages are certainly larger, but are not, as it may seem, twice as large. If you can handle the bigger monthly expense, you’ll build equity faster because a greater portion of each payment goes toward principal rather than interest. Additionally, the lower rate and shorter term lessen the overall interest due.
With a longer loan term, you have a higher interest rate and build equity more slowly, but you get the benefit of lower monthly payments and, perhaps, increased buying power. You also still have the option to shorten your loan by making additional payments when possible.
Time is money
When negotiations between a buyer and seller stall, each party should think about what the difference in the offers actually means.
To a seller, it means more money at the time of sale, of course. But there could be more to it. Has the house been on the market a long time? If you decide to stick to your guns on a number, do a little math to be sure it makes financial sense. Should the home linger on the market another two or three months, the cost of keeping the house may be close to or even surpass the amount you’re holding out for. Your move may be delayed and you could end up paying two mortgages, two utility bills, two landscaping bills and so on.
As a buyer, plug the numbers in to see the difference on your monthly payment. It may be that the extra money each month pushes the home beyond your budget, or it could just be a few dollars per month – an amount you may decide isn’t worth it to lose the home.
That’s not what I heard on the news …
Don’t be confused by national numbers that have little to do with our market. Texas never saw the rapid rise in property values that parts of California, Arizona, Nevada, Florida and a few other states did. Nevertheless, the national media and even reporters in Texas have been reporting doom and gloom in the real estate market for some time now.
In most cases, though, real estate investments hold their value quite well, appreciating consistently over the long term. Even many homeowners in the states mentioned above aren’t in as dire straits as the media would have you believe. Think about it this way: If you bought a home four years ago, and its value increased $80,000 over the first three years but dropped $12,000 in the fourth, are you down $12,000 or up $68,000? Unless you’re bought in the third year and are selling in the fourth, that $12,000 drop is not as bad as it sounds.
To the rescue
There’s more to real estate math than this column could possibly explain … we didn’t cover buy-down points, fixed-rate vs. ARM loans, tax implications, credit scores, loan ratios and many other concepts. The intricacies of a transaction this large, along with your specific situation, call for extensive knowledge about numbers in the real estate world.
I encourage you to make a smart choice and hire a Realtor. Realtors work with these figures and concepts regularly and can help you navigate the financial waters and make sense of the numbers. Additionally, Realtors are bound by a strict code of ethics, which means that they are obligated to act in your best interest.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Dr. Ted Jones, Chief Economist, Stewart Title, reports on the Housing Industry for November 2008. Smart people are buyin and selling real estate right now... The time is right for you to get into the market...
Please take the time to stop on BUY ans see this fine house in Pine Hollow of Pearland TX... The house for sale is lactated at 1406 Pineland Drive, Pearland TX 77581...
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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