Phones are ringing again and buyers are out there looking at homes, which is good news for local home owners who have their Killeen Fort Hood homes listed for sale.

After months of no showings on some of my listings, several of them were shown multiple times last week, and it's just a matter of time now (hopefully) until offers start to come in. 

One of these homes, which I wrote about a couple of weeks ago, Beautiful Home - Bargain Price, has TWO interested buyers now who have made several trips to see the home.    Neither buyer has made an offer yet, but their agents tell me the home is at the top of their lists. 

Fort Hood area home builders are also feeling the pressure for their products as the building permits have increased significantly the past two weeks!   This is always a good sign that the market for home sales is starting to heat up.

So it's shaping up to be an interesting summer here at Fort Hood.   There is a great inventory of both new and resale homes in Killeen, Harker Heights, and Copperas Cove, pricing is better than it's been in several years, interest rates are LOW and the First Time Buyer $8000 tax credit is still available, with  no payback required.    If a new home isn't in your plans, maybe it should be!

It's a simple question.   Where do we go from here?  

These sellers are a wonderful military family who understand that the local Fort Hood real estate market is in a state of flux.   So they have made sure to keep their home spotlessly clean (with 4 children!!).  They've installed a couple of upgrades to make sure they are more competitive in the market.   They are ready to show at the drop of a hat.  AND they understand and agree that they must price their home aggressively to get it sold $10k under market) as well as agree to pay all the buyer closing costs and prepaids when the time comes.   Our marketing is the best the area has to offer and we know that the property is as well positioned on the internet as possible,

But still no buyer has made an offer.  In fact, it's only been shown three times in three months.   There are 22 homes for sale in this subdivision.  ONE resale home has sold in the past three months.  Two brand new construction homes (by less quality builders)  have sold.  

So where do we go from here?   Their PCS date is coming up and they will have to move on.   They'll leave it on the market through the summer in hopes that a buyer who needs this Killeen location will turn up.  And then if it doesn't sell they will have to make the hard decision to keep it on the market or turn it into a rental.

These sellers are not alone right now here at Fort Hood.   There are many, many other properties out there that are facing the same issues.   Some are holding out hope that the Corps of Engineers Homeowner Assistance Program will come to the rescue, but as of last week, the Fort Worth office of the Corps told me that they were pulling all their information on that program off the website because it looked like the funding for the program was "either on hold or canceled".  I'll be checking the Corps of Engineers website daily until there is an update. 

Here's a quick review of the new Fish City Grill, one of the many new restaurants in the Market Heights shopping area in Harker Heights Texas.   We found ourselves in the area on Saturday after meeting buyers at their new home to do a walk through and decided to give the Fish City Grill a try for lunch.   It was early, probably around 11:30, but the restaurant was already looking pretty busy.  There were people seated at tables and booths as well as in the bar.   The interior is very attractive, not too "nautical", very tasteful and comfortable.   The wait staff was wearing T-shirsts with witty sayings you have to be sure to read!    There were lots of creative specials on the board but we stuck with basic fried oysters.   The service was fairly fast.  The waffle fries could have used another half minute in the fryer, but the oysters were first rate as was the slaw with apple cider dressing.   We ended the meal with beignets and coffee, which were both very good, even if the beignets were not particularly traditional.

Fish City Grill is a franchised chain and their menu is online.   We will go back... for the food and to find out what was up with the waitress who was wearing a Nanook of the North fur cap with ear flaps as she waited tables!

Located in Trimmier Estates in south Killeen, these eight beautiful completed homes are available for IMMEDIATE move in!  If you are arriving in the next 30-60 days, don't spend money on a hotel room.  You can move into your brand new home and close when your mortgage lender has everything ready for signing!  Jerry Wright Homes, Fort Hood, Texas.   Killeen and Copperas Cove new homes for sale!

Jerry will BUY you a LOWER Interest Rate, too!

If you are a first time buyer, getting ready to start looking for a home at Fort Hood, here's a quick peek into a real house hunt in the Fort Hood Real Estate Market:

My latest buyer already had a target subdivision and price range in mind when we met for our first consultation.  He and his wife are first time buyers and are looking for a home that is close to Fort Hood and close to her work in Killeen.  They also want their children to attend Copperas Cove schools, so it's been pretty easy to narrow down their choices.   

They've been looking at new construction but just didn't find anything that quite fit their needs and time frame (before the holidays).  So we moved on to looking at existing homes, which are a pretty good value in the market right now since sellers are paying most if not all of your closing costs. 

The buyers picked five properties off the internet to see this past week, and here's what we found when we got to the homes: 

Property #1 - First Impression:  Big pile of rocks and dirt in the front yard (lots of work required to remove).  Front porch and door were covered in dog paw prints.  The interior was, frankly, filthy.   Looking into the back yard we saw that the dogs had pretty much destroyed it, and they had chewed chunks out of the back porch posts, too!

Property #2 -  First Impression:  Nicely maintained yard.  Attractive brick with stone accents.  Spotless interior, nice floorplan with a fireplace and playscape in the back yard for the buyer's children.   Well priced!  These sellers are as perfect as possible for an unoccupied home.

Property #3 -  First Impression was not good.  Yard is full of dead grass and weeds, not a bush, tree or flower to be seen.   And this home was occupied!  Interior was surprising in that it was clean, neat and nicely decorated, perfect for showing to a buyer.   Many buyers would never get past the dead yard to even consider this home.  It was very well priced, though, and the buyers took a chance and went in to see the interior.  It appears the seller is pricing the home low to offset the condition of the yard.

Property #4 -  First Impression:   Beautiful yard, neatly trimmed, healthy, green, with nice landscaping touches.  Interior was clean, neat, with a big covered patio overlooking the healthy, landscaped back yard.   This floorplan was actually the same as property #3.  These sellers had painted several walls a variety of "interesting" colors that didn't appeal to the buyers.  This was the highest priced home we looked at.  This  home had been on the market three days.

Property #5 - New construction.  The builder had confirmed the home was finished and ready for buyers to move in.  When we got to the address, we were greeted with a bare concrete foundation....... I  guess he thought we were going to pitch a tent and use the Port-a-John out in the street!

After looking at these five homes, the buyers said they would call in the morning with their decision of which home they wanted.   But it didn't take 20 minutes before they called back with their choice!  Property #4 was the clear winner.   We met the next morning, wrote the offer, and by the end of the day had everything negotiated and signed.  They will be spending the holidays in their new home in Copperas Cove! 

UPDATE 1/2/09:   Rates were at 5.5%!

Great news from local Fort Hood lenders this morning!  Late yesterday afternoon the VA rate plummeted from 6.75% to 6% and stressed buyers can, for the moment, give a sigh of relief. 

If you've been waiting out the rates before committing to a home at Fort Hood, this could be the time to jump in.   Rates have been volatile the past month, swinging between 7% and 7.5%, so 6% is looking pretty good today!

House Creek North subdivision in Copperas Cove is really coming into its own this year as the most requested subdivision near Fort Hood!  Located just ten minutes from a back gate into the main base, House Creek has a wide variety of homes available, both resale homes and brand new homes by well established local builders.    D R Horton Homes, a nationally known builder, is also building in Phase II.

Photo near House Creek

House Creek North Phase II is almost finished up, and builders are waiting for Phase III to open soon.  Once finall utilities are installed and accepted by the city, builders can get busy.  Phase III lots include many sites on wide streets with views, or for those of you who prefer quiet and solitude, there are sites down the hill close to House Creek, with access to its green areas for walking the dog and exploring Texas flora and fauna.

BUILDERS ARE PRE-SELLING NOW for PHASE III! 

Texas Spiney Lizard (Rusty Lizard, non poisonous)

Local House Creek North builder/developer Mike Emmons was recently interviewed by Mike Bolding of the Killeen Daily Herald Newspaper.  In this interview, Mike gives us an insider's view as to what goes into the development of a new subdivision.   With all the regulations on developers, the services of engineers, surveyors, utility companies and heavy equipment companies must be coordinated with the city, the county and other regulatory agencies. 

Click here to ready Mike Bolding's interview with Mike Emmons about the next phase of  House Creek North.

I prepared a quick video yesterday of some of the new lots for a buyer, and it's posted below if you'd like to take a peek at what this part of the new phase looks like.   You might want to turn your sound down, too, as there is a LOT of wind noise that couldn't be filtered out!

VideoAd by Mixpo

Here are a few  thoughts this afternoon about Fort Hood home builders. 

Some buyers think that buying a home from a nationally known home builder is the way to go.  

These BIG builders offer buyers "the moon" as incentive to buy their homes.   They offer to"pay" closing costs, buy interest rates down, put in refrigerators, sprinkler systems and privacy fences and even more to get the buyer's business.     

By the time the sales pitch is done, buyers are starry eyed and ready to sign that contract!  

But what buyers don't know, is that they are really paying for all those goodies.   Extras aren't "thrown in" for free.   And buyers may be paying for things they don't even want or need.   

Consider the sales price of an 1850 square foot home.  A well known national builder may price it at $156,000.   There may be no ceramic tile or decorator lighting, or other upgrade features.  Most of the homes only have brick on the front, and that translates into miles of siding that will eventually need painting.  (Who wants that in TEXAS in the summer?) 

The national builders have professional advertising that appeals to buyers.   They are seducing buyers with beautifully crafted  (and expensive) marketing materials,  along with television and internet advertising that promotes a lifestyle that is attractive to new home buyers. (Think MCDONALDS style advertising!)   (And who is paying for that advertising? Could it be YOU?) 

Here's another idea:  Consider the smaller, local builder.  Could an experienced local builder possibly offer a better product for a lower price? 

The smaller builder offers the 1850 square foot home for $139,900 for a beautiful quality built home.  If you want extras, you can add them on.  Need a fence?  That's about $3000.  Want a sprinkler system?  That's $2200.  A refrigerator?  $2000.  Closing costs?  $3500 should cover it.  That's a grand total of $151,600.  

Your $151,600 is buying a beautiful brick veneer home with upgrades like French doors, ceramic tile flooring, two tone paint, high ceilings, crown molding, custom built oak cabinets,  garden tub, separate showers, tile tub surrounds and other amenities. Your closing costs are paid and your landscape amenities are installed.   And you aren't paying for the builder's expensive advertising.  Or interest rate buydowns you don't need. 

Why would you spend approximately $5,000 MORE for a less attractive and possibly lesser quality home? 

Now, before you ask me, I have nothing against the national builders who are building homes at Fort Hood.  They meet the needs of many buyers. The continued popularity and sales of these homes prove that.    I even show and sell these homes, as well as selling homes by local Fort Hood builders. 

Just keep this in mind:  Before you settle for what the BIG national builders offer, ask your Ft Hood Realtor to show you homes by local builders, too.  You owe it to yourself to see what all Fort Hood builders offer, not just the national builders. 

It could SAVE YOU MONEY, and we all need more of that!  

Part of my job is staying informed so I can give advice to my Fort Hood home buyers and sellers.  I owe it to them to be a good source of reliable information.    

For the past two weeks, I've been staying in particularly close touch with local lenders, checking in on movement in interest rates.  I'm also checking on the availability of funds for federally insured loan programs (VA and FHA). 

GOOD NEWS:  The lenders assure me that money is available to lend on VA and FHA loans.  All you have to do is qualify for the loan, as in the past. 

VA LOANS:  This is a true NO MONEY DOWN loan.  As of yesterday, if you have a credit score of at least 620 and meet the income to debt ratios and other requirements, you could get your VA loan at 6.5% fixed rate for 30 years.   

If your credit score is between 580 and 619, you can still get a VA loan, but will pay a little higher interest rate.    

Today, the rate for a 620 score is up to 7%.  Still not a bad rate, all things considered.    But rates are moving.  They may go higher.    If you are thinking of buying, this might be the time to do it.  Sellers are motivated.  UPDATE:  VA and FHA Rates were back to 6.5% on Oct. 2.

FHA LOANS:  As of yesterday, for a 620 score, you would pay about the same rate as the VA loan, but you must make at least a 3% down payment.   As an example:  On a $100,000 home, you must pay $3,000 down out of your own pocket and finance $97,000.  You are allowed to receive your down payment funds as a gift from a relative, if that is an option.  FHA is a little more flexible for buyers who have had some problems in the past due to medical or family issues that may have affected their credit score. 

NOTE:  FHA has terminated all down payment assistance programs as of today.   As of January 1, 2009, the minimum down payment requirement will increase to 3.5% of the purchase price of the home.

The FHA insured loan rate is 7% for a 30 year fixed loan today.

TO RECAP:  If you qualify for a VA or FHA loan, money is available for you to buy a home at Fort Hood, at reasonable interest rates, fixed for 30 years.    Rates may be headed for an upward trend, but that is to be determined.

Click here to prequalify for a VA or other home loan. There is no charge for this service!

The Fort Hood Real Estate Market has slowed and builders are starting to see their inventories of unsold homes increase.  And that's a GOOD thing for you if you are thinking of buying a brand new home when you get to Fort Hood. 

Before you go out to make an offer on a new construction home, consider this:  Did you know that every new home has a backstory?   You aren't privy to this information (and neither am I), but the builder has a lot to consider, especially if he borrowed money to build the home.  He's committed to making monthly interest payments on the money he borrowed (and the rate is much higher than your mortgage rate!)  He has to respond when his bank questions him for having it in inventory so long.   What is his cash flow position on this particular day?  Does he need the money TODAY?   Was this a home that he thought was sold, only to have the sale BOMB and the home go back on the market?  All these situations are great motivators to him to accept your offer!   He took a gamble, built the house, it didn't sell, and NOW maybe he's ready to cut his losses!

All that being said, you can see that a builder has a lot on his plate and some days might be more mentally frustrating than others.  That's the perfect time to take your own gamble and try these five tips for making a great deal with a new home builder at Fort Hood: 

1.   Look for the new home that has been on the market for 300 days or more.  Your real estate professional can help you with this.

2.   If the price has already been reduced, go in lower with your offer (but not insultingly lower!  You want this to work, right?)

3.  Ask the builder for extras, like blinds, a refrigerator and/or garage door opener or lawn sprinkler system.

4.  Ask the builder to cover all your closing costs and prepaids, as well as the cost of paying points to get you a lower interest rate. (Your lender can help you with this number).

5.  Be brave and confident!   You might get a counter offer, a total rejection of your offer, or the builder just might accept your offer and you will be doing the happy dance!   

I've been working for and with the home builders at Fort Hood and in Killeen, Copperas Cove and Harker Heights for many years and have seen every conceivable kind of offer come across my desk.   Builders welcome any offer, because it is a starting point to come to that meeting of the minds we all want to happen.  And, upon reviewing your offer, a builder will usually do SOMETHING for you!  He is more likely to give you extras instead of lowering the price, BUT...

Sometimes he WILL lower the price, too.  I helped a nice couple purchase a brand new home in Copperas Cove last week that had been on the market for about 500 days.    The price had already been reduced from $169,900 to $158,900.    After we finished our negotiations, they got the home for $153,900 and the builder threw in a stainless steel refrigerator to match the other appliances in the house, and he agreed to pay their closing costs and do some other minor items we asked for.      

One last thought:  Remember. the builder that won't negotiate isn't trying to be difficult (I believe buyers usually say he's being a "horse's ass"!)  He'a just not in a distressed position.  He may have built the home with cash, and a bank is not in the picture pressuring him for interest payments and a quick sale.    He's not being a "horse's ass" when he won't negotiate, he's just running his business!   

Good Luck with your negotiations!  If you need any more information about working out your best deal on a brand new home at Fort Hood, just call me at 254-681-4875 direct to my cell phone.  I'll be happy to help you work it all out!