Scott Alexander's Blog

Buying & Renting

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 29 Jan 2009 13:55:41 -0800

Why should I buy, instead of rent?
- Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
What are "HUD homes," and are they a good deal?
- Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.
Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?
- Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local homebuying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.
Are there special homeownership grants or programs for single parents?
- Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won't have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won't have the delay of trying to get qualified. Contact one of the HUD-funded housing counseling agencies in your area to talk through other options for help that might be available to you. Research buying a HUD home, as they can be very good deals. Also, contact your local government to see if there are any local homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.
Should I use a real estate broker? How do I find one?
- Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay the broker anything! The payment comes from the home seller - not from the buyer.

By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.

How much money will I have to come up with to buy a home?
- Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.

When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.

Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

How do I know if I can get a loan?
- Answer: Use our simple mortgage calculators to see how much mortgage you could pay - that's a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don't you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.
How do I find a lender?
- Answer: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's real estate section - most papers list interest rates being offered by local lenders. You can find FHA-approved lenders in the Yellow Pages of your phone book. HUD does not make loans directly - you must use a HUD-approved lender if you're interested in an FHA loan.
In addition to the mortgage payment, what other costs do I need to consider?
- Answer: Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
So what will my mortgage cover?
- Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.
What do I need to take with me when I apply for a mortgage?
- Answer: Good question! If you have everything with you when you visit your lender, you'll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years' income tax statements; and 8) the name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information. <\li>
I know there are lots of types of mortgages - how do I know which one is best for me?
- Answer: You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran's Administration's programs and the Department of Agriculture's programs. Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
When I find the home I want, how much should I offer?
- Answer: Again, your real estate broker can help you here. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one. 3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
What if my offer is rejected?
- Answer: They often are! But don't let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in negotiations that you lose sight of what you really want and can afford!
So what will happen at closing?

Answer: Basically, you'll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don't hesitate to ask questions.

Hiring You Own Agent

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 29 Jan 2009 13:55:00 -0800

The builder's sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder's agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.
Hire a Buyer's Agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent's fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, and it would be worth it because a good negotiating buyer's agent can save you thousands more than the commission.
Your own agent will represent you, be your fiduciary and is required to disclose the positives as well as the negatives about the transaction. Builder's agents don't discuss drawbacks.
If your contract contains a contingency to sell your existing home before buying, again, hire your own seller's agent to list your home. Be aware that buying before selling is not always in your best interest because hard bargaining goes out the window when you've emotionally moved out of your home.

Don't Automatically Use the Builder's Lender

Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it's one-stop shopping for a builder. But a builder's lender might not offer you the best deal. Moreover, the builder may own the lending company.
Consider alternate sources to find a lender. Your own bank or credit union might offer you very attractive rates and terms, based on your banking history with that institution. Your agent may refer you to his or her private list of wholesale lenders.
Shop around and interview your lender. Find a banker or mortgage broker whom you can trust and with whom you feel comfortable doing business.
Ask to see a copy of your credit report and FICO scores. You can order your own free credit report before shopping for a new home.
Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere, because reputable lenders will honor that request, even though it's not required by law.

Obtain Legal Advice Before Buying a Brand New Home

Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don't necessarily contain language that protects the buyer.
Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.
Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it's probably because it's a valid concern and other buyers have gone to court over it.

Verify Option and Upgrade Pricing

Determine which options and upgrades you want. Bear in mind that for many builders, the profit margin is highest in upgrades. Some builders can sell a home for almost bare construction cost because they make the bulk of their profit in the upgrades.
Find out whether your lender will lend on all the options / upgrades you have chosen. If your lender will not finance 100% of your selections, you will be required to pay for it in cash.
Ask about cancellations and whether you will be held liable for items the builder cannot return to a vendor.
Some contracts give the builder the right to choose your upgrades if you do not submit your request within a certain period of time.
To save money, consider which upgrades you could purchase and install yourself after the escrow closes. However, realize that some upgrades such as CAT-V, DSS or security wiring inside the walls are easier to do before construction.

Check Out the Builder's Reputation

If a buyer has a bad experience with a builder, the word spreads rapidly throughout a community. But you won't know if a bad rep is an isolated experience or if the builder repeatedly brings bad publicity to itself without checking and verifying the public records for lawsuits.
Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building identical or larger homes in the area or is construction lagging and homes shrinking in size?
Find out whether the builder sells to investors. Some builders require all their homes to be owner occupied. Others eagerly sell as much inventory to investors as profit margins will allow. If the market suddenly dips, investors are typically the first to bail and, besides, part of the reason you are buying in a new subdivision is to be surrounded by other buyers just like you, not tenants.

Hire a Home Inspector

Always, always, always get a home inspection when you buy. And hire a licensed and accredited individual to perform the inspection -- not your dad or your buddy contractor, get a real inspector. Be there for the inspection and ask questions because a new home can contain defects. The HVAC system might be too small or the plumbing could be installed backwards. Construction workers make mistakes. (And let's not even talk about the mustard-stained McDonald's wrappers stuffed in wall cavities.)
If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue.

Just Say No To Popcorn

Scott Alexander (Coldwell Banker Patterson Properties) — Mon, 19 Jan 2009 15:04:36 -0800

I have to admit, I love popcorn. It's best dripping with butter-just enough to make my arteries begin to clog. Watching a movie without popcorn just isn't right; it's seems almost un-American. The only thing I can think that is negative about popcorn is that it makes handholding in the theater harder-slippery with just a trace of traction--the salt residue! Popcorn on the ceiling in a home is another matter.

One of my best friends in real estate tells me that the first thing he does when he walks in an older home is look up. Popcorn on the ceiling is not a good thing. Why? It makes the house dated. So if you have an older house and want to update it, the first thing that you can do is remove the popcorn. Of course, like many things ( asking that cute redheaded girl for a date, hitting a curve ball, or bending that golf ball around a tree) talking about it is easier than doing it.

Your best choice is to hire someone. But if you are like me, and are basically a tightwad, you might try this. First of all, understand that this is not fun work. Be prepared to do your own version of "Dirty Jobs." If you are going to scrape it off, buy googles! Here are the basic outline of what you need to do.

· Clear the room of all contents, including fixtures. Use the breaker to turn off the power.

· Cover the walls and floors with plastic

· Soften the acoustic with water, yep, use the garden hose-just a light mist. Don't get carried away.

· Scrape off the popcorn with a wide blade.

· Let it dry overnight.

· Repair the bad spots.

· Sand it.

· Apply texture to match what you have on your walls

· Seal it with primer and paint it.

Not fun, huh? Probably the best idea is to hire someone. But if you do this first, your house will make a much better impressions when you are ready to sell it. Remember this, "That 70's Show" is a cool TV program, but "that 70's look" is not good when you are selling a house. If you want some other tips about how to update your house, give me a call.

Why Should I Buy?

Scott Alexander (Coldwell Banker Patterson Properties) — Fri, 19 Dec 2008 14:07:36 -0800

Why should I buy, instead of rent?
- Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
What are "HUD homes," and are they a good deal?
- Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.
Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?
- Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local homebuying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.
Are there special homeownership grants or programs for single parents?
- Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won't have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won't have the delay of trying to get qualified. Contact one of the HUD-funded housing counseling agencies in your area to talk through other options for help that might be available to you. Research buying a HUD home, as they can be very good deals. Also, contact your local government to see if there are any local homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.
Should I use a real estate broker? How do I find one?
- Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay the broker anything! The payment comes from the home seller - not from the buyer.

How much money will I have to come up with to buy a home?
- Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.

How do I know if I can get a loan?
- Answer: Use our simple mortgage calculators to see how much mortgage you could pay - that's a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don't you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.
How do I find a lender?
- Answer: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's real estate section - most papers list interest rates being offered by local lenders. You can find FHA-approved lenders in the Yellow Pages of your phone book. HUD does not make loans directly - you must use a HUD-approved lender if you're interested in an FHA loan.
In addition to the mortgage payment, what other costs do I need to consider?
- Answer: Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
So what will my mortgage cover?
- Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.
What do I need to take with me when I apply for a mortgage?
- Answer: Good question! If you have everything with you when you visit your lender, you'll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years' income tax statements; and 8) the name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information. <\li>
I know there are lots of types of mortgages - how do I know which one is best for me?
- Answer: You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran's Administration's programs and the Department of Agriculture's programs. Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
When I find the home I want, how much should I offer?
- Answer: Again, your real estate broker can help you here. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one. 3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
What if my offer is rejected?
- Answer: They often are! But don't let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in negotiations that you lose sight of what you really want and can afford!
So what will happen at closing?
Answer: Basically, you'll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don't hesitate to ask questions.

New Construction

Scott Alexander (Coldwell Banker Patterson Properties) — Fri, 19 Dec 2008 14:06:06 -0800

Hire Your Own Agent

The builder's sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder's agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.
Hire a Buyer's Agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent's fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, and it would be worth it because a good negotiating buyer's agent can save you thousands more than the commission.
Your own agent will represent you, be your fiduciary and is required to disclose the positives as well as the negatives about the transaction. Builder's agents don't discuss drawbacks.
If your contract contains a contingency to sell your existing home before buying, again, hire your own seller's agent to list your home. Be aware that buying before selling is not always in your best interest because hard bargaining goes out the window when you've emotionally moved out of your home.

Don't Automatically Use the Builder's Lender

Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it's one-stop shopping for a builder. But a builder's lender might not offer you the best deal. Moreover, the builder may own the lending company.
Consider alternate sources to find a lender. Your own bank or credit union might offer you very attractive rates and terms, based on your banking history with that institution. Your agent may refer you to his or her private list of wholesale lenders.
Shop around and interview your lender. Find a banker or mortgage broker whom you can trust and with whom you feel comfortable doing business.
Ask to see a copy of your credit report and FICO scores. You can order your own free credit report before shopping for a new home.
Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere, because reputable lenders will honor that request, even though it's not required by law.

Obtain Legal Advice Before Buying a Brand New Home

Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don't necessarily contain language that protects the buyer.
Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.
Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it's probably because it's a valid concern and other buyers have gone to court over it.

Verify Option and Upgrade Pricing

Determine which options and upgrades you want. Bear in mind that for many builders, the profit margin is highest in upgrades. Some builders can sell a home for almost bare construction cost because they make the bulk of their profit in the upgrades.
Find out whether your lender will lend on all the options / upgrades you have chosen. If your lender will not finance 100% of your selections, you will be required to pay for it in cash.
Ask about cancellations and whether you will be held liable for items the builder cannot return to a vendor.
Some contracts give the builder the right to choose your upgrades if you do not submit your request within a certain period of time.
To save money, consider which upgrades you could purchase and install yourself after the escrow closes. However, realize that some upgrades such as CAT-V, DSS or security wiring inside the walls are easier to do before construction.

Check Out the Builder's Reputation

If a buyer has a bad experience with a builder, the word spreads rapidly throughout a community. But you won't know if a bad rep is an isolated experience or if the builder repeatedly brings bad publicity to itself without checking and verifying the public records for lawsuits.
Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building identical or larger homes in the area or is construction lagging and homes shrinking in size?
Find out whether the builder sells to investors. Some builders require all their homes to be owner occupied. Others eagerly sell as much inventory to investors as profit margins will allow. If the market suddenly dips, investors are typically the first to bail and, besides, part of the reason you are buying in a new subdivision is to be surrounded by other buyers just like you, not tenants.

Hire a Home Inspector

Always, always, always get a home inspection when you buy. And hire a licensed and accredited individual to perform the inspection -- not your dad or your buddy contractor, get a real inspector. Be there for the inspection and ask questions because a new home can contain defects. The HVAC system might be too small or the plumbing could be installed backwards. Construction workers make mistakes. (And let's not even talk about the mustard-stained McDonald's wrappers stuffed in wall cavities.)

If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue.

Veterans

Scott Alexander (Coldwell Banker Patterson Properties) — Fri, 19 Dec 2008 14:04:38 -0800

Are you a veteran with a subprime loan? Well, help might be on the way. I was reading my dad's copy of Military Officer and read an interesting note that could be helpful. The Veteran's Benefits Improvement Act of 2008 has made it possible for a veteran with a subprime loan to refinance it. Good deal, huh? Here is what I know about this program.

· Veterans may refinance up to 100% of their subprime VA loans

· Veterans with subprime conventional loans have some new options for refinancing to a guaranteed loan

· The VA's maximum loan amount for refinancing loans has been raised to $729,750-depending on where you live

· The VA can limit rate increases on Adjustable Rate Mortgages (ARM's)

· For more information, call the VA at 800-827-1000

· Or visit ww.homeloans.va.gov

If you are a veteran, and facing one of these challenges, call me and I would be glad to help you. Those of you who have served deserve better.

Mortgage Assistance for Vets

Scott Alexander (Coldwell Banker Patterson Properties) — Mon, 15 Dec 2008 11:55:44 -0800

· Veterans may refinance up to 100% of their subprime VA loans

· Veterans with subprime conventional loans have some new options for refinancing to a guaranteed loan

· The VA's maximum loan amount for refinancing loans has been raised to $729,750-depending on where you live

· The VA can limit rate increases on Adjustable Rate Mortgages (ARM's)

· For more information, call the VA at 800-827-1000

· Or visit ww.homeloans.va.gov

If you are a veteran, and facing one of these challenges, call me and I would be glad to help you. Those of you who have served deserve better.

Honey Do Time!!

Scott Alexander (Coldwell Banker Patterson Properties) — Mon, 06 Oct 2008 12:57:57 -0700

So are you ready to sell? What do you need to do? Imagine that you are one of my favorite cartoon characters, Dagwood Bumstead, and you get out the jar filled with Daisy's Honey-do's. Instead of postponing them one more time, work your way through the jar. The last thing a buyer wants to look at is a bunch of repairs. To a buyer, repair$ mean money!! So that means you lo$e money. If you take the time to make a few basic inexpen$ive repairs, you might make your house the one that sells in a tough market. Think of it this way, there is a reason that used care dealers "detail" a car before they put it on the market. If it shines, it sells. So make your house shine.

Remember what Mon told you about first impressions. She was right. Clear out those flowers beds, trim the grass, fix the old screen door and paint the front door.
Check out that roof. If you have missing shingles, have a roofer replace them. The last thing you want is a buyer thinking that there s a serious roof problem.
Reseal the toilet and fix dripping faucets. In San Angelo, since the water is so hard, you probably ought to look at the fittings on the hot water heater and see if there is corrosion. If there us a problem, fix it.
Touch up the paint and baseboards
Finally give it a through cleaning. Windows, floors, cupboards, tubs ( yes that means the soap scum has to go) and carpets.
What about Rex and Fluffy? Pet smells kill equity. I'm not saying that your pets have to go to the shelter. I have a dog too! However, do something about the smells, stains and litter boxes.

Once these things are out of the way, call your friendly real estate professional, get a market analysis, a marketing plan and wait for the offers. Oops, I forgot the most important detail. Call Me!

10/6/08

Want To Go Green?

Scott Alexander (Coldwell Banker Patterson Properties) — Tue, 15 Jul 2008 15:03:59 -0700

If you are like me, and think that the planet is a big deal, but are not certain what to do about it, I have a thought. Recycle!! I am mindful of two things as I make this suggestion: First and foremost are my children for whom I want to leave earth in better shape than when I found it. My mom always used to remind me that if I broke it, to fix it. We humans have broken a few things, so let's work on fixing them. For those of you who are skeptical about global warming, think about economics. If we recycle all of the plastic that we use, it can impact the price of many things in a positive way-from shingles to gasoline.

So if you are also like me and are not certain what to do, and what to save or where to put it-then I have a suggestion, Angelo Recycling Company. A pair of enterprising young guys (Isn't capitalism great?) have an idea. For $20 dollars a month, they will pick up your items and take them to the recycling center. The company provides you with a container, which holds about a week's worth of newspapers, plastic, glass, cardboard, aluminum cans, batteries, and magazines.

All you have to do is place the items in the container and put it out on Monday. They do the rest. I know that I feel better because I do it. Check this about by going to www.angelorecycling.com or by calling 325-227-6344

7/15/2008

First Time Buyers

Scott Alexander (Coldwell Banker Patterson Properties) — Wed, 18 Jun 2008 13:58:33 -0700

When I bought my first house in 1973, I didn't have clue what was going on. At every turn, I called my dad and asked for his advice. As I remember it now, my agent was a bit on the clueless side, too, we made quite a pair. One week after closing, my sewer line collapsed. While I was try to clean it out with my recently acquired hardware store "snake" my new neighbor leaned over the fence and told me that the seller had had "trouble" with that sewer line for a long time. My next call was to my dad for a loan. Plumbers weren't cheap-even in 1973, and my realtor had forgotten my number.

Wow, did I feel stupid. I wish that I knew then what I knew now. That's why Dads are good sources of information. They have been there, done that.

Well, Dad might not be available. So I have a handy-dandy checklist for first-time buyers that might keep you from having to borrow money after closing. Remember that I watch Letterman in hopes that it will make me a "better man," and I am big on lists.

1) Study the market; go on the Internet; see what things are selling for in the area in which you want to live.

2) Study your budget; see how much you can afford to pay for housing monthly.

3) Study your credit score. Clean it up if you need to. Remember that you are making a big (no, make that BIG) purchase. Your credit score impacts your interest rate.

4) Find a lender and get a pre-approval. Remember that if you are approved for a loan of $150,000, you don't have to spend that much. Make certain that you stay within that budget that you have already established. I know that is a "dad-like" thought, but my job is to help you think through this process.

5) Find a realtor that you trust and with whom you connect. Remember that real estate agents know more than you do about this.

6) Find other people to put on your team-inspectors, insurance agents, repair people. Now you are ready to deal.

7) Remember that the first house is not going to be the house you stay in forever. Our lives change, and we move. So buy something that fits your lifestyle, knowing that some time in the future, you will have to sell it.

8) Buy something that you can sell. Look at the historic resale for the area.

9) Find out the importance of these words in real estate: site, sight, and functional obselesance.

You probably already knew all of this, but you might have found one "nugget" of information that you find useful. Buying is complicated business. Put together a team that wins for you. Oh, by the way,

10) talk to Scott.

6/18/2008

So What in the Heck Does an Agent Do?

Scott Alexander (Coldwell Banker Patterson Properties) — Fri, 23 May 2008 11:59:29 -0700

I am a retired teacher/basketball coach, and my wife always knew what I was doing when I was in the school business. Third period was Government, Fourth period, English, etc. When I scoot off to work now, I don't think that she knows what I do. So it occurred to me that if the wife of an agent thinks that he is playing solitaire on the computer while he is waiting for the phone to ring....then what does the general public think?

So here's what a real estate agent does. First of all, he knows the market. Remember that his job is to match buyers with sellers. So if he is working for a seller, he tries through a variety of methods to shout, (well, not literally) this house is for sale. He will of course know the needs of his buyers and those of other agents. This is why I spend a great deal of my day on the phone or on the computer.... Not playing solitaire... How does he "shout"? In the newspaper, on the internet, through direct mail, on the phone and via email, as well as knocking on doors are all things that work.

Of course, the agent "shows" homes to potential buyers and helps to price homes for potential sellers. This means that he has to know what buyers are looking for and what is important to sellers. The most important skill in this area is listening. Everyone's needs are different: some seller's want top dollar; others have to move rapidly. Often that is a factor in price. Buyer's tastes and needs vary. What is important to them must become important to me: whether it's schools, location, a big master bath, or a chef's kitchen. I have to find out what they like and then find it.

The last thing that I do is something that the school business prepared me for...paperwork! Writing contracts, helping figure out financing details, and coordinating inspections requires a variety of skills. Writing the contract so that the deal gets done in a way that is favorable to my client is obviously important. The most important element is trying to operate in a way to that is fair to everyone but helps the interests of those who employ me.

So that's what lots of us do every day....in between games of solitaire.

5/23/2008

Short Sales!

Scott Alexander (Coldwell Banker Patterson Properties) — Mon, 05 May 2008 13:01:29 -0700

What is a "short sale?" Well, it's certainly not something that is fun to talk about. Simply defined, a "short sale" is a situation where the market value of the property is less than the amount the seller owes his/her lender. For a short sale, the lender must agree to accept less than the full amount due. Why would a lender do that?

There are several reasons. First of all, the lender really doesn't want to own houses. It is a huge headache for them to repossess, list and sell homes. It is a costly, time-consuming process. The reality is that often it better for the lender to "cut its losses" and allow the owner/borrower to sell short.

This is cold business driven calculus, not motivated by "feel good" sentimentalism. I can't blame lenders for the problem. Here is why I bring it up. We might see some of these situations in San Angelo in the coming months. If you are someone who has a problem, the last thing that you want to occur is repossession. So talk to your lender. See if you can work something out. Then you might want to talk to them about a "short sale."

5/5/2008

Club Park at Bentwood. Better than Arizona?

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 24 Apr 2008 12:41:52 -0700

One of the great questions that we all face as we fade off into our AARP years is: "Where am I going to live?" For some the solution has been Arizona, Florida, maybe Central Texas. Think about what we want: quiet living around good people with similar interests, a nice low-maintenance home, a safe community, and access to restaurants, theater and most importantly-a good golf course! So why in the pluperfect heck would anyone leave San Angelo?

Everything you want, need, desire, and long for is located right here.

Just move to Club Park at Bentwood, the new patio home addition to San Angelo's most prestigious neighborhood, Bentwood Country Club Estates. Club Park is under development as I write. Thirty-one patio home lots await their new owners.

Some of these terrific building sites are on the golf course while others are just across the street from the 10^th fairway. The homes are going to be oriented towards those of us who have played more than a few rounds of golf. There will be a practice area practically in your back yard and the homes will be in the neighborhood of 2200 square feet.

If you are interested in building in Club Park, come to Bentwood on Tuesday, April 29^th between 6 and 8 in the evening. You can meet Jim Lane of Horizon Builder, Scott Alexander of Coldwell Banker Patterson Properties, and Susan Pulley from the Bank of San Angelo. The point of the evening is informational. We want to share some time with you and tell you more about how you can make your retirement dream a reality.

4/22/2008

Does Fluffy Come With The House?

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 24 Apr 2008 12:40:01 -0700

One of the things that is always a source of contention between buyers and sellers is the answer to this question: "What is the seller offering for sale?" Generally, what appears to be part of the house and is attached to the house is part of the sale. So ceiling fans, chandeliers, blinds, etc. are part of the offering unless specifically excluded in writing by the seller.

My twisted sense of humor brings me to the pictures that we realtors post on the internet. We take great pains to stage a house: buying new bedspreads, painting, removing clutter, putting out floral arrangements, etc. Then when the pictures swirl out into cyberspace, prancing across the carefully staged living room is "Fluffy," the family poodle. I always wonder, "Is the dog part of the deal?"

So I guess my point is simple. If you are a potential buyer or seller, make certain you know exactly what is conveyed in the transaction. The devil (or dog) is in the details. Have your realtor spell it out. And please, don't offer the family pet as a "buyer incentive." There are better options.

4/21/2008

Special Agent Man!!

Scott Alexander (Coldwell Banker Patterson Properties) — Wed, 09 Apr 2008 16:00:16 -0700

Realtors are "special agents" who are employed by people to assist them in buying or selling of a home. Perhaps I've watched too many James Bond movies and the "special agent" tag appeals to me, but I have lost track of the number of times that I have run into buyers and sellers who do not understand the relationship between them and the real estate agent.

Let's be candid. Realtors are employees of either sellers or purchasers of homes. Their duty is to get the best price, terms, and conditions for their client. It is easy for people to understand the agency relationship between the listing agent and the seller. After all, the seller is paying a commission to the agent if and when the house sells. So if you are a buyer and you call the agent listed on the sign (me included), remember that he/she works for the seller. The agent's duty is to be fair and honest, but his interests must lie with the seller.

So what's a buyer to do? Find an agent to represent you!! Employ someone to be your buyer's agent. You are the personnel director of "Me, Inc." and your job is to find someone who has your interests in mind. Interview agents. Find someone you are comfortable with and you trust. Sign a buyer's representation agreement with him. Then put him to work. If it doesn't work out, remember you are the boss. Give him the pink slip and find another.

Why do you need an agent? Because they know more than you do about real estate. If your agent doesn't, you have hired badly. I did 61 transactions last year. I hope that I learned something.

April 9, 2008

Buyer's Agency

Scott Alexander (Coldwell Banker Patterson Properties) — Fri, 28 Mar 2008 15:31:05 -0700

One of my earlier blogs was about real estate agency in general and I touched on "buyer's agents." After sleeping on it a few nights, I worried that I wasn't clear. So in the interest of clarity, here goes. Prior to becoming a Realtor, I was a high school basketball coach. One of things about being a coach is that it is a nomadic existence. So...I bought and sold more than a few houses. I always used a realtor; one I even liked so much I named my dog after her. But not one of them ever explained to me that they were working for the seller. Most of us when we hop into a car with an agent view him as "my agent." Well, he is not-unless you have a signed buyer's representation agreement. What is that? It's an employment contract that spells out your relationship with the agent and puts him in your corner. Remember that you/the buyer should control the terms and conditions of the agreement. The agent is working for you-not you for the agent. If you want to know more about this, email me @ scott.alexander1@coldwellbanker.com Thanks, but you can skip the dog-naming thing.

March 28, 08

Going Green

Scott Alexander (Coldwell Banker Patterson Properties) — Wed, 20 Feb 2008 13:51:28 -0800

Whatever you believe about Global Warming, "going green" is going to save you money. That's something that we can all relate to. Here are some thoughts about saving money by saving energy. Whether you do this to "reduce your carbon footprint" or to save money for that new Ping driver, the impact of these cost-saving choices is "green."

1) Dim those lights. Use the new bulbs or use dimmers which reduce the amount of energy used and doubles the life of an incandescent bulb.

2) Turn off that computer. Even in "sleep mode" it's using power.

3) Put timer switches on your dishwasher . That way it goes on late at night when energy use is down.

4) Put insulation in the attic. Get a R-38 rating.

5) Buy a house with trees. Shade in the summer = cooler. The leaves go away in the winter= more sunlight and warmer.

6) Recycle.

7) Lucky # 7. If you are using it, turn it off.

February, 20

The Remodeling Party! Maybe Tom Sawyer Had it Right!

Scott Alexander (Coldwell Banker Patterson Properties) — Fri, 08 Feb 2008 14:12:57 -0800

We all remember when we had to read "Tom Sawyer," and of course we remember how Tom conned others into painting the fence for him. I thought it was a great idea and spent much of my childhood trying to trick my friends into doing things for me. Let's just say Tom was more gifted at this than I was.

Well, meet the Tom Sawyers of the 21^st century. Homeowners everywhere have hit on a new formula for acquiring that "grunt" labor needed to start a home renovation: HAVE A PARTY! Basically, it's a cocktail party with power tools. After reading about some of the missteps of some of the contractors/party hosts have had to endure ( cut electrical lines, crooked tile, load-bearing walls, knocked down, etc.), I'm not certain that it is a great idea. It's seems to me that a chain saw and 3 martinis are not a good combination.

But, it could work. What I would suggest is hiring a contractor to supervise for the evening/afternoon. Your free labor would require direction and some perhaps some guidance from you as well. Knowing when you push one of your friends away from the tools and over to a permanent place at the "tap" would be an important task.

Give it a try and let me know how it comes out.

Why Is HGTV All The Rage?

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 31 Jan 2008 13:00:17 -0800

One of the things that I have discovered since I became a realtor is that everyone wants to talk about real estate. The general populace wants to talk about 3 things: how much their house is worth, what they can do to update their houses and make them more valuable, and home improvement shows. I've got to admit these things fascinate me as well. Like many homeowners, I lie awake at night hoping that property values go up---and that the tax appraiser doesn't notice. Before remodeling our kitchen (which my wife can take the credit for) we thought about how the things we were doing affected our value. I'll blog about that at a later date. But who would have thought that everyone would watch HGTV??? Not me.

Boy, was I wrong. I can tell when people are going to remodel, update, sell or contemplate doing any of the above when they mention HGTV. The shows are cool, lively, entertaining and informative. In addition to the TV program, the website is an incredible source of information. Not only can you read about the national mania, housing, but you can also read blogs about kitchens, bathrooms, fabric, and the like. As a "guy" I admit to being challenged in this area. But I'm learning. Click on the link below to see more of this incredible site. See you in the blogosphere. http://www.hgtv.com/hgtv/pac_ctnt_988/text/0,,HGTV_22056_60311,00.html

1/31/2008

Selling in 2008?

Scott Alexander (Coldwell Banker Patterson Properties) — Wed, 23 Jan 2008 15:40:26 -0800

If you are selling your house in 2008, think about this. You are competing with other owners of similar homes who will too. What is going to make your house stand out? Here's a thought. Your house, when placed on the market, will be inventory in the store. Buyers will sift through the houses just like buyers sift through cantaloupe at the grocery store. What will make them put yours in their cart?

Here is Scott's list of "To do's."

De-clutter-make it look spacious and clean.
Bright lights are good things. You might want to consider replacing those dated fixtures too.
Just like those cantaloupes, smell matters. You are used to you dog and cat; buyers might not be. Clean!!!!
Clean out those closets. Have a garage sale.
Curb appeal. A neat, well groomed lawn will help. Bright flowers. A trip to the hardware store, and getting in touch with your inner gardener will help more than you think.
Paint. That pink bedroom? It might sell better if it were an earth tone.
Fix problems. It might be better if you were to get a home inspection prior to putting it on the market, see the problems that the inspector finds and address them. That puts you in a stronger negotiating position and gives the buyer peace of mind. P.S. You control the costs of the problems.
Think before you spend a lot of money remodeling. You probably won't get all of it back.

Find someone to help you market your home. Take your time. Do it right. Interview.

Estimating Building Costs

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 17 Jan 2008 15:16:18 -0800

A question that I am asked all of the time is "How much does that builder charge per square foot?" The barometer that buyers use for costs for new home construction is generally cost-per-square foot. I hate to tell everyone, but that is a poor measurement to use. If one were budgeting for the construction of a new home, the devil is in the details. There are many factors that come into play. Let's look at a few.

First look at the building site. What is the soil like? This affects what the builder is going to do in terms of a foundation. The dirt here moves, some places more than others. So how much money you spend on the foundation depends on where you want to build it.

What are you going to put in it? Granite countertops, cabinets with seeded glass, expensive appliances, etc. all drive up the costs of the house!

Room and window shapes, fancy brickwork all cost more, but cost more.

What to do? Determine what you can spend, interview builders until you find the one that fits you. Then go over your plan and see what is a "want" and what is a "need." Often we find that there is something we can live without. If you want some suggestions about builders in San Angelo, give me a call.

Don’t forget!! Mortgage Insurance Decutable!!

Scott Alexander (Coldwell Banker Patterson Properties) — Thu, 17 Jan 2008 12:37:59 -0800

Just a reminder to those of you with mortgages with PMI, or private mortgage insurance. If you have a mortgage on a home and were unable to put more than 20% down when you purchased, you have private mortgage insurance. Your lender did that to protect itself against the possibility of default. When you file you 2007 returns, you can deduct the cost of the insurance, along with your interest on the note and property taxes, off your taxable income.

ONE MORE THOUGHT, if you are paying PMI, there is a way to get it off your note and reduce your house payment. I'll talk about that soon.

Market Meltdown

Scott Alexander (Coldwell Banker Patterson Properties) — Tue, 08 Jan 2008 13:50:06 -0800

Of course everyone in the housing industry is watching the national news and wondering if the negative reports that we see daily are having an impact on the San Angelo market. The answer is no. San Angelo is still and for the foreseeable future will continue to be a strong market.

Why? I believe the answers are multi-faceted. Goodfellow Air Force Base, with its unique missions, is a boost to the economy. Angelo State University is growing. More students means more faculty and support staff are needed to manage, educate and support them. Students (often thru their parents ) and faculty members buy houses. San Angelo has also been identified by smart people who live elsewhere as a great place to live.

(This is something that we knew anyway, but we are to see it affirmed. ) Yet one more positive force for growth here is the oil business. Whether we like $3.00 gasoline or not, in many ways our local economy benefits from high gasoline prices.