What Can You Really Afford?

Many people looking for homes in the Irving Las Colinas area have mistakenly taken the number they were given by their lender for the amount they were pre-approved for and used it as the number for the price of home they believe they can afford.

There usually is a difference between what you can afford and what would be a comfortable payment. You need to find the balance between what the maximum you qualify for and what you are truly comfortable in paying.

The most conservative way to figure out what you can afford is to figure out what payment would be most comfortable for you and then see what you qualify for. If the number you qualify for is above what you feel comfortable with, I suggest go with the latter. Better safe then sorry.

The Best Time to Sell a Home.

Spring? Summer? Fall? People often try to time the market as to when they should put their home up for sale. I can say, that after many years in the business, the Irving Las Colinas Real Estate market does not have much of a lull at any time during the year.

Springtime is great because people want out before summer.

Summer?... Well, people want to get set in their new home before school starts.

Fall?...Many have told me they want to be in their new home for the holidays.

Winter?...If it is the first of the year people are ready to move because of expectations of the new year and the holidays are over so time has been freed up for other projects.

This cycle seems to repeat itself year after year with rare exceptions;
During the middle of summer when the mercury rises high in Irving some people have the bunker mentality and close the blinds not to return until the heats lets up.

The other brief lull is from Thanksgiving to Christmas, many of us are extremely busy with the holidays. Yet I can say that I have had some of my best months as far as production is concerned in November and December.

So if the concern or question is "When should we put our home for sale?" the answer, at least in Irving Las Colinas is... pretty much anytime.

Where To Eat in Irving Las Colinas

Not that I should be going out to eat a lot, but on the occasions that I do,
I have compiled a list of my favorite haunts. This list is by no means definitive and if you have a suggestion please let me know. For the most part I like to stay away from chain restaurants or a least go to the ones who have small chains located within certain regions.

Irving Las Colinas has great deals on Real Estate, but it also has a lot of great food and I am proud to present my favorites. So without further ado here is the official 2008 guide of my current favorite restaurants in Irving.

In no particular order…

Bangkok Orchid – Thai (Hard to find but worth it)

Via Real – Mexican (Quiet romantic evening)

Soila’s - Mexican (Bring the kids)

Café Cipriani – Italian (Quiet romantic evening)

Ifratelli’s – Italian (Bring the kids)

Hunan Dynasty – Chinese (I love Chinese)

Ali Baba Mediterranean Café - Mediterranean (Who doesn’t like gyros?)

Tommy’s Bar-B-Que -(972) 986-0559 2840 W Irving Blvd (hey, you don’t need a website when you are this good)

Piman Asian Bistro – Thai/Chinese/Japanese (Best you have never heard of)

Saltgrass Steakhouse – Steaks and more (Try the seafood fondu)

Secrets of the MLS Revealed

Many people including my clients call me up and say that they have seen a home on the Multiple Listing Service or “MLS” for short, and that they want to look at it. After looking up the property for myself, I find out that the property is under contract or even sold…so what gives?

The truth is that if you are not a Realtor who is also a member of MLS, then you do not have the instant streaming access to the data.

You see when I enter a listing or change a price, all agents who have access to the MLS can see that change immediately. All others, such as Homes.com, Realtor.com, or even the actual agents website that says “Search the MLS”, is really not the MLS.

It has the data that is downloaded from the MLS, but since these sites only download certain amounts of information at certain times. It may take a week or so to get all the updates. By that time there are many more changes that are missing from the information.

The best advice I can give you is have your agent set you up as a prospect and enter your criteria that you are looking for. The prospect program will email you the listings as soon as they come out or there is a price change.

My Most Frequently Asked Real Estate Questions

I looked over my previous articles and I noticed that I keep saying “I always get asked that question” or “the most common question I get asked is…”

Even when I go out with friend the conversation quickly turns into questions about Real Estate. Why is that? Why not, “hey how’s the vending business”, or “has your cubicle gotten any more spacious?”

I think people want to know about the largest single investment they probably have. It just happens that I help people buy and sell that investment. So even for someone living outside the Irving Las Colinas area, the conversation quickly turns to the Real Estate market.

Just to clarify my previous articles, I will try to truly represent, in order of reverse frequency, the questions I get asked most often...

10. Did that house on (such and such) street ever sell?
9. How much is that house on (such and such) street?
8. How much money down do I need for an investment?
7. Why hasn’t that home on (such and such) ever sold? / What’s wrong with it?
6. Do you like home warranties?
5. What did my neighbor’s house sell for?
4. Do you have any good deals on foreclosures?
3. How’s the Real Estate market?
2. What do you think my home is worth? (Tax time)
1. What do you think my home is worth? (Sale time)

What’s My Home Worth?

What’s it worth? Well, you need a Comparative Market Analysis or “CMA” This is not a certified appraisal, but it does give great general information on the Real Estate market around your home. Oh, and as opposed to an appraisal it’s FREE.

This really is the most asked question I ever get, even more so than the ones about foreclosures. You see foreclosures come and go with the Real Estate cycles. However, everyone at some time or another wants to know what their home is worth.

Sometimes it is for the obvious reasons; they are preparing to sell it. Other times they are refinancing it, doing remodeling, or trying to lower their taxes. Whichever is the reason you want to know, I can help.

In the Irving Las Colinas area this is generally how it is done…

First I ask the client what is the reason they want to know.
(Let’s assume it is for a sale in this little demonstration)
Next I go to the Dallas Central Appraisal District to look up the property.
I then go to the MLS and see what homes in similar size and features have sold in the area of the subject property. I also look up what homes have expired, which tells me the ones that are usually overpriced. I then look up all the homes that are currently on the market in the same area as the subject property.

With this information I can tell you the average sales price and average price per sq. ft. of properties that have sold, as well as the ones languishing on the market.

I then like to go to the subject property to see if it falls in line with average conditions. If it is in great shape and has been completely remodeled I would give it an above average price per sq. ft. If it needs a lot of work, then it will get below average price. If it is average, well then it’s average.

Last I gather up all of my information and plug in the numbers I feel it will sell for (generally it is a small range) and present it to the seller. It is a little more complicated, and it takes more than these few paragraphs allude to, but I am glad to do it for my clients, as would most Realtors.
Even if you really haven’t got a good reason to know what your home is worth, it still is fun to find out. So call me, and let’s see “What’s it Worth”

Forclosure Facts

Once again the question was brought up to me regarding buying foreclosed property in the Irving Las Colinas area. I wrote about purchasing these foreclosures and what to look for in an article titled, To Buy, Or Not To Buy (a Foreclosure).

I also wrote Hidden Deals That Will “Motivate You, and explained an alternative to buying foreclosures. However, since the question keeps coming up, here are a few facts about foreclosures that are currently on the Multiple Listing Service in the Irving Las Colinas area.

Of the 668 properties that are on the market as of today…
68 are foreclosures
48 of those foreclosures are priced under $100,000
14 of those foreclosures range from $100,000 - $150,000
3 of those foreclosures range from $150,000 - $200,000
2 of those foreclosures are priced in the low $300,000’s
1 of these foreclosures is priced in the low $700,000’s

There you go; any price range you are looking for is available. Although, it’s a little slim when you get over the $100,000 price range.

Working With the Neighborhood Specialist

Over the years I have received a lot of advice from my Dad. He is pretty good at giving it whether you want it or not. But I must admit, whether it is about my family, my life, or my career he was right on about 99% of the time.

I remember when I moved to Irving Las Colinas and was looking to buy my first house. My Dad, who has been involved in Real Estate for over 45 years, told me how to find a good buy.

He told me to drive around the area I wanted to live in and find the Realtor who had the most listings. I assumed that any Realtor would be able to help me find a home. However he explained to me something that I have applied to my own Real Estate career. The Real Estate agent who has the most listings are, “the neighborhood specialists”.

These are the Realtors who know the area, know the prices of homes just by driving by a house, and can tell you pertinent information about each home that is listed. By finding these agents you are getting to work with the most informed Realtor in the area.

Finally, the greatest benefit of using the “neighborhood specialist” is that these Realtors usually have knowledge of properties that have not been put on the market yet. You are getting the first shot at a property, without having to compete with other buyers. If you are working with the “neighborhood specialist” chances are, you are privy to deals before others have chance to see them.

There are a lot of Realtors who claim to be the “neighborhood specialist” but it is pretty easy to find out for yourself. A little research, and a little time driving the area will prove who the true specialist is. Find this person and it will be worth your while.

Remodeling 101 – Return on Investment

Every homeowner has probably thought to themselves, “Geez, I need a new kitchen” or maybe said, “Hey honey, let’s redo our bathrooms” The thought then creeps in, “How much is this little project going to cost me?”

Well a better question might be, “How much of my investment will I be able to recoup?” Generally, there is always an amount that can be added as value put into your home. The trick is to make sure that the project does not exceed the value of the comparables in the area.

For instance if an Irving Las Colinas homeowner decides to remodel their kitchen and finds out they will be spending $25,000, then the formula needs to be calculated as follows.

In the neighborhood they live in, properties of similar size and features that have been remodeled, generally sell for $250,000. The homeowner bought the home one year ago for $225,000. If they spend the $25,000 on the kitchen, there is a pretty good chance that the money they spend will be recouped upon the time when they sell the property,

It is important to get an idea of what homes are selling for in your area before you start a large project and put in a lot of money. That being said, if you are going to live in the home for the next 30 years you will likely have the appreciation over the years that will make up for the costs.

There is one more reference that homeowners in the Irving area can use. Although the stats are for the Dallas area in general, Remodeling Magazine Online puts out a Cost vs. Value Report. This tells homeowners what percentage of certain projects they can expect to recoup.

Happy Hammering.

Taking Advantage of Property Tax Exemptions

Remember to file for your homeowner property tax exemptions this year!
There are many exemptions Irving Las Colinas residents might qualify for depending on your situation. The most common is the General Homestead Exemption.

Requirements and information regarding each exemption can be found online at the Dallas Central Appraisal District website. You can also easily file your exemption by going once again to the DCAD website and searching for your property. You can then print out an exemption form for that specific property.

Depending on the exemption your tax savings can be quite significant. It is important that you take advantage of these savings. If you have filed in the past and your status has not changed it may not be necessary to re-file. Although I have found it is always a good idea to check your property on DCAD yearly and view which exemptions you currently have, as your status might have changed and you would be able to take advantage of other exemptions.

Below is a list of homeowner property tax exemptions.

General Residential Homestead Exemption
Over-65 Exemption
Surviving Spouse of Person Who Received Over-65 Exemption
Disability Homestead Exemption
Surviving Spouse of Person Who Received the Disability Exemption

Hit The Links In Las Colinas

Not that I am much of a golfer, but I do appreciate the fact that the Irving Las Colinas area boasts a plethora of golf courses. You can come to play or come to stay, as many of these courses are home to residential subdivisions. These have lots with homes on the course or not, depending on your tolerance of my tee shot smashing through your living room window.

There are 28 golf courses located within 10 miles of Irving, you can view these on Golflink.com. They range from private country clubs to municipal courses to independently owned ones. Most are able to be played just by calling them up and reserving a tee time, others you might need some friends in high places.

Some of the more notable ones are the 4 championship courses located in Las Colinas. One of which is the TPC course where the Byron Nelson Golf Tournament is played every year by the PGA players.

TPC Las Colinas Course

Cottonwood Valley Course

Hackberry Creek Country Club

Las Colinas Country Club

Las Colinas New Construction

Looking for new construction?

Here are some of the projects in and around Las Colinas.
These include some wonderful areas and gorgeous subdivisions.
Easy access to Highway 114 and the 635 Loop.

La Villita
K. Hovnanian Homes & CityHomes

Positano
North American Properties

Versailles Villas
David Weekly Homes

Emerald Valley
Monterey Homes & Ryland Homes

Hidden Deals That Will "Motivate" You

My last post was about bank owned properties. After explaining the potential pitfalls of those types of properties I wanted to mention an alternative that can get you a great deal on a home.
Motivated sellers are by far my favorite type of purchase. Those people who have equity in their home but cannot make payments anymore.

Imagine if you will an Irving/Las Colinas homeowner that has been living in his home paying off his mortgage for 10 plus years. His home was purchased for $100,000 and his loan was originally $90,000. (he put down 10%) His current principle balance is $80,000. He has taken care of his home and it has appreciated to a value of $120,000. He has been unable to make payments and the bank is looking to foreclose.

Not many people want to go through a foreclosure, so the opportunity for a great buy is available as well as helping someone avoid foreclosure and losing all of their equity and down payment. If you pay him the balance of the loan plus his original down payment you are still buying a home $30,000 under value. Motivated sellers are everywhere, look for properties that have been on the market for a long time, ask the right questions, find the motivation and you just might get a heck of a deal.

To Buy Or Not To Buy (a Foreclosure)

Right now there are ALOT of bank owned properties in Irving and Las Colinas. The question I get asked quite often is "Can you find me a great deal on a foreclosure?".The answer is a bit complicated. If the bank is ready to sell the property and is realistic on true value than sure they are out there.

However many banks acquire a property from an owner that is in really rough condition and let's say that the balance on the loan is $80,000. The market analysis shows that homes of similar size and location are selling for $120,000.Without any repairs the bank puts the property on the market "as is" for $120,000. Let's say that the repairs needed will cost you about $15,000. Buying it for anything more than $105,000 would be overpaying.

People generally assume that by buying a foreclosure you are paying what the bank was owed on the property, thus maybe getting a great deal on a home. But the banks are in it to make money. It is doubtful that they will sell a property for less than what was owed, and when they do sell for what they were owed, it usually comes months after it has been sitting on the market.

In today's market of people who have refinanced to many times that loan balance might actually be HIGHER than what the home is worth. There is alot of research that must go into buying a home especially when it is bank owned.

New Developments in Las Colinas

Irving/Las Colinas is in the midst of numerous development plans. The area in and around Williams Square and the Mustangs looks to soon be the epicenter of retail , residential and commercial projects. check out The Irving Las Colinas Chamber for information on all the developments that are in the works.

I am looking forward to the completion of these projects, as are many others who remember when the developing kind of just stopped years ago. Well, the recently renewed interest in Las Colinas has prompted developers to take another look at the area I have long described as a diamond in the rough.

Welcome back.

Manipulating the Market

Today I was curious to see how many homes there were "Active" on the market in the Irving Las Colinas area. Meaning these where not under contract yet. I was pleasantly surprised to find only 675.

Everyone talks about a market downturn, or a stagnant market. I agree that if you live in Florida, Nevada, Michigan...I am probably missing a few. But the numbers of homes on the market in those areas is much higher than here.

With a flood of properties on the market it always makes it much harder to sell. Once those properties go away, properties get scarce, obviously a good case of supply and demand.

Now think of this... a rough average of sales per month in Irving is about 100, over the last six months it has actually been 93 homes per month.

If starting from today no one listed their home for sale it would take 7 months to have absolutely no inventory. What would happen to prices then?

Alot of these other cities have a supply that would last them years. Fortunately for us the market looks pretty bright!!

Now if I can get everyone to stay put for awhile :-)

Open Houses...Worth it?

In the past open houses have brought many tire kickers as well as serious buyers. However the internet age seems to have turned the tide. Why get in the car if you can see it online?

Real Estate agents in Irving used to caravan to go see all of the new listings so getting them inside, (the only true way to get a feel of a home) was easy. Now that they can click a few links and view pictures, or even a virtual tour, most buyers and agents just monitor listings online.

My suggestion is to try one, if the guest list is limited, there are many other ways to market your home. Try them all and figure out what works.