Something for Buyers to Think About in 2009

By
Real Estate Agent with Re/Max Advanced

 

There was a reoccurring trend that I saw in 2008 amongst clients that I helped get into residential leases.  I feel like this is something that is worth mentioning.  These clients that I worked with were all previous homeowners that had been foreclosed on.  They would have all liked to purchase a home but didn’t have the credit. Therefore I had to find them a suitable residential lease. 

My job wasn’t easy working with these clients. Unfortunately the leases that they wanted were ones that they really couldn’t afford, but they were used to a certain luxury that their previous homes offered.  Coincidently they couldn’t afford those homes either.  They were living way above their means on mortgages they should have never been approved for.

These unfortunate buyers had all been duped by a crafty salesperson.  This salesperson sold them homes in planed communities.  (The kind that big builders like DR Horton and Keller Williams put out.)  My clients were approved for these mortgages based on the fact that the homes they were buying were brand new and the property taxes were still only being assed on the vale of the land and not the value of the home.

Now the thing about property taxes in Texas is, compared to most states they are really high.  You see Texas doesn’t have a State income tax so they make up for it with their property taxes.  If you were to buy a home in Texas for $150,000 you annual property taxes would be around $4,000 depending whether the property is located inside a city limits. 

So what happened with my clients is that in the beginning of the next year after they bought their house the county came in and re-assed the property and found that there was a new structure on it.  After the county assed the property with the new structure my clients’ property taxes quadrupled, which caused their mortgage payments to nearly double which meant they could no longer afford these luxurious new homes that they recently purchased.

Now in Texas we go by the old saying Caveat Emptor, which means buyer beware.  Basically this means that the buyer’s job to know exactly what they are buying.  There are few things that a seller is required by law to disclose. However when a buyer hires an agent to represent them it is that agent’s job to look out for their client’s best interest.  I think all to often agents get caught up in wanting to close a deal that they loose sight of this and are willing to do whatever it takes to get the deal done.  In the long run it ends up hindering their real estate career more than it helps.  As real estate professionals we need to do our job, and our job is not to close deals.  Sure closing deals is what makes us money but or job is to represent buyers and sellers with their best interest in mind.  If we all did our jobs and lost the “get results attitude” that so many agents become consumed with I think we would experience a lot more stable real estate market.

 

Comments (0)