With more than 43 million people relocating throughout the U.S. every year, you don’t have to wait until you are surrounded by stacks of cartons to realize how important it is to make your next move the right one. If you’re buying a house in Plano in the foreseeable future, it’s a particularly valuable idea to take the time to chat with some of your potential new neighbors. And while you’re at it, here are three questions to ask new neighbors when buying a house:

Which schools are best? 

School quality affects more than just property values. Especially if you have your own kids, buying a house in Plano is least disruptive when their new school is the best one available. You’ll make the soundest choice by comparing more than one parent’s opinion.

Is there a neighborhood watch?

You will have already aimed for the safest area possible. Now, getting involved with an active neighborhood watch can further ensure your family’s safety. When buying a house, the presence of a neighborhood watch is a good indicator of some solid community spirit…and if there isn’t one, make sure the reason is that everyone already feels secure in the area.

What events are available in Plano?

Buying a house means buying a home base for all your family’s activities. By asking your neighbors which local events and activities they enjoy the most, you’ll get a glimpse of the scope and depth of the cultural life that’s going to surround you. As a side benefit, just inquiring shows you as someone who is sociable — and that you’ll be a good new neighbor to have!

The simple act of reaching out in this way lets you familiarize yourself with a new neighborhood faster, and ultimately leads to a better-informed long term real estate decision. Especially if the area is new to you and your family, buying a house in Plano is actually a one-time opportunity to make a host of new friends. I have tons of information available for future residents. If you’re even considering buying a house in the Plano area, don’t hesitate to call me today!

Nathan Daniel

Keller Williams Central

972-804-1468

Nathan@SellingTexasToday.com

Suppose you are driving past one of those ‘For Sale by Owner’ yard signs…and the house looks good!

Do you screech to a halt, jump out and rush up to the front door to – quick! – sign a deal? More likely, you jot down the phone number (hopefully one is visible, though with For Sale By Owner signs, it’s not always the case) so you can call up your agent to get the details.

Veteran buyers considering a Texas For Sale by Owner (FSBO) property know why it’s highly beneficial to use their agent from the start.  Even if you have found the home yourself, you should want that first call to go to an agent.

Here’s why:

• Agents offer advanced relationships that stand to improve your bottom line. For example, timing often can make or break a deal, and agents can utilize their network of the area lenders who have proven most reliable.  Agents are also likely to have vetted referrals for specialized services to address fireplace and chimney issues, drainage, asbestos removal, etc.
• Agents are experienced negotiators whose familiarity with North Texas real estate requirements strengthens your position vis-à-vis credits and repairs. Agents understand potential issues likely to come up at inspection — and can help you evaluate each item in your inspection report.
• Some buyers believe they can save money by not using an agent in North Texas For Sale by Owner transactions. Sometimes that happens, but more often than not, it’s the For Sale By Owner whose heart is set on pocketing that extra 2.5 – 3%.  Agents can save you money in other ways –  by negotiating a lower selling price, proposing intangible benefits (like cash for closing), etc.

Circumstances differ, but the bottom line value an experienced agent adds is a clear understanding of the complications and issues that often arise during dealings – whether ‘For Sale by Owner’ or not.   To get to closing, be sure your agent is involved. And if you’re looking for an agent, I would love to help – call me today to discuss how I will help you!

Nathan Daniel

972-804-1468

Sometimes, even after your mortgage application has been approved, you have to scratch your head at apparent non-sequiturs that attach to the process (for instance, when a loan is made contingent upon your repaying an ultra-low-interest credit account).

Even more so if your perfectly dandy financial situation results in a turndown. How could this happen? The answer usually makes perfect sense…but only if you understand that bankers and mortgage brokers are bound by policies and procedures that apply to everyone currently buying homes in Richardson. Knowing the rules ahead of time can influence how readily mortgage applications are approved. Some guidelines:

Forget adding “mattress money.”

Your bank account gets a thorough going-over, of course. If you have recently deposited a bundle of cash with no apparent source, it looks as if you are artificially hiking up the balance (perhaps with borrowed funds). Too bad about that garage sale: if the cash has not been on deposit for at least 90 days, it can be considered ‘unseasoned’ – likely to raise questions.

Disclose all pertinent info.

Many credit applicants in the process of buying homes assume the credit investigation will be limited to the information disclosed on the application. Not! Underwriters are trained investigators always on the lookout for anything that looks like fraud. Buying homes involves sums that deserve serious investigation; even relatively minor oversights are likely to be discovered. Answer: supply all the information asked for.

Avoid employment hopscotch.

Those who suddenly change jobs while in the process of buying homes in Richardson raise the odds of their application being affected. This is especially true of wholesale shifts in careers or industries. Even for otherwise praiseworthy professional moves, an employment outlook that appears unpredictable isn’t helpful.

Bottom line: those who will be buying homes need to prepare knowledgably for the policies that govern mortgage approval. If you are among those who will be buying homes inour area this winter, call me today — I can put you in touch with a mortgage broker to start the pre-approval process!

Nathan Daniel
Keller Williams
972-804-1468
www.Sellingtexastoday.com

In case you missed it, there is at least one widely overlooked local Richardson real estate investment possibility that can be available to active IRA holders. Especially if you are among those who look at the current local Richardson real estate market and find numerous investment possibilities with significant long-term upsides, the Self-Directed IRA option can be worth looking into. Some of the broad outlines of how it works:

1. The right IRA custodian

Custodians are trustees who hold self-directed IRA assets and file documents with the IRS. Richardson area real estate purchases are considered ‘non-traded’ assets — and not every IRA custodian allows for them. You may need to find one who does.

2. Use only IRA funds

All costs associated with your real estate investment must be paid using funds from the self-directed IRA. These can include property management expenses (if you use the property as a rental), taxes, repairs, and insurance. Using IRA funds for any personal expenses or personal benefit will lead to penalties.

3. Guard your interests

Be careful to play by the rules. For instance, you cannot involve a spouse, family member, or company in which you have a 50%+ interest; nor may you reimburse yourself for work you do on the property (including the reporting and other administrative requirements).

According to Fox Business News, many people are using self-directed IRAs to purchase non-traded assets like real estate. Since there are significant limitations as well as advantages, it is all but mandatory to consult a qualified accountant or legal professional before proceeding. If it looks as if the advantages predominate, it will be time to go about finding the right Richardson property for your investment…time to contact me!

The Weather Channel has nothing to do with it. What’s happening up in the ski resorts, likewise. The ‘snowball effect’ being discussed in print and on TV won’t soften anytime soon (even if the groundhog was right about winter being over)..

This is an economic snowball — one that’s gathering momentum following what CNN’s Money website describes as “the best year for U.S. real estate market in five years.” Businesses that stand to benefit from growth in the Richardson housing market are watching closely.

The Wall Street Journal’s snowball report took form in last Monday’s Marketplace section, where the top headline read “Housing Recovery Opens Spigot…Makers of Products From Carpets to Air Conditioners Feel Effects of Rebound.”

It was even more heartening as a counter to last week’s government indications that the greater economy seemed to slow. The housing sector’s performance was so strong it acted as a tonic to its many associated industries: among them, many local Dallas retailers.

The snowball effect was noted widely. The company that makes Carrier air conditioners said that orders rose 20%; Honeywell International reported the “first sign of life we have had in a while.”

Locally, fingers were crossed that Richardson area businesses will be swept up in the snowball. National suppliers expected that to happen. “Housing is what we see leading the economy out of the doldrums,” according to the CFO of United Technologies Corp. The WSJ reported evidence that Americans are spending more to build and refurbish their properties.

With sales of existing housing registering the largest annual jump since 2004, it should come as no surprise if Credit Suisse’s Daniel Oppenheim proves correct in predicting a 7%-8% rise in home improvement spending. He expects it to keep going for at least the next two years. That’s a pretty solid forecast, and in line with what most observers are saying.

All in all, the boost from the housing recovery is one snowball no one seems to think is likely to melt soon  — regardless of what Punxsutawney Phil has to say about it.

One of the key factors serious buyers eye when appraising foreclosed homes for sale in Collin county area is condition – the shape those properties have been left in. The Federal Housing Administration has weighed in with a program that can materially affect how that condition – good or bad – will finally affect the bottom line: it’s known as the FHA 203 (k).

If you are among those currently looking at foreclosed homes for sale in Collin County, the 203(k) can make a big difference.  Here are some points that might influence your decision:

First in line is whether the program is applicable. HUD tells us that for a local property to be eligible, it must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must meet zoning requirements. Furthermore, any and all newly-constructed units must be attached to the existing dwelling. Importantly, coops are out: cooperative units are not eligible.

The greatest effect is on foreclosed homes for sale that need a lot of work. HUD guidelines indicate that properties that have been demolished, or will be taken down as part of the renovation, may be eligible — as long as at least some of the existing foundation remains.

As you might expect, none of this helpful news comes without some practical caveats. Although you may get this kind of FHA rehab help for a foreclosure, this is a labor-intensive type of loan requiring multiple appraisals (including “as-is” and “Value After Rehabilitation”), licensed contractor projections, and more. Since time factors are always important when dealing with a foreclosure, it’s important to choose your backup team carefully. You will need to select the right lender and consider enlisting a team consisting of a mortgage broker and real estate professional – both of whom have experience getting approval for FHA 203(k) loans. You want pros who understand the extra steps involved, not those who simply tell you what you want to hear.

Most likely, you will want to get actual pre-approval for the FHA loan (not just a prequalification letter).  There is a lot of additional paperwork involved, and you will want to avoid a last-minute scramble once your desired property is on the line.

Buying Collin County homes for sale taking advantage of the FHA 203(k) requires organization and preparation, but can be a great way to make a questionable rehab project on a foreclosed home for sale affordable.  If you have questions about buying the right property and the outlook for getting a 203(k) insured mortgage loan, get in touch with an FHA-approved lender in the Collin County area or call me anytime for an introduction.  Then — let’s get started!

There’s nothing like a clear October day to get you wondering how the heck summer disappeared so quickly…or to suddenly flash on how soon winter is going to be here. Especially for anyone who is seriously thinking about selling their home in Richadson, now is the time to take on any maintenance issues that could crop up later, when weather conditions might hinder your ability to fix them.

If that suggestion has you thinking ‘roof,’ you are not alone — roofs deteriorate more often than any other part of a building. No wonder the Labor Department says that the number of roofing jobs is expected to increase by 18% between now and 2020!

Any home that has been around for a while will require regular roof maintenance, repair and perhaps even replacement. The usual reason is debris – material that the wind (or windborne animal life) can cause to accumulate up there. The debris can be anything that might divert the flow of rainwater.

The first place to check is the rain gutters. They are practically magnets for all sorts of leaves and other debris. Since water damage is usually the culprit when roofs need to be repaired or replaced, the gutters and downspouts have to be kept open. Selling a home takes enough attention without having to worry that potential buyers will notice clogged and neglected gutters — or that the condition of the roof gets them wondering what else has been neglected.

Along with water damage, the other major perpetrator is the sun. Many roofs that have metal or wood paneling are susceptible to deterioration from the summer sun, and winter’s slick weather conditions can turn what today’s easy roofing job into something truly dangerous, if not impossible.

A home sale doesn’t have to be in prospect for you to be on the lookout for missing shingles, tiles — or any other part that creates what looks like a newfound irregularity. Especially after major storms, don’t forget to keep an eye out for any bare spots. It’s doubly important for anybody considering selling a home: among all the other reasons, a roof near the end of its lifespan can interfere with a successful loan approval.

Selling a home in Richardson involves many moving pieces; I’m happy to help you put together the ones that will bring the results you want. Contact me anytime to discuss options for your property.

Whether you are in the process of buying an income property this fall or are already an owner, your decision about whether to work with a property manager is pivotal. When you lack the time or capacity to effectively manage your investment, hiring a professional property manager is certainly the right business move. But suppose you have already decided that you will use a pro – does that solve all management issues for your investment? If you have chosen well, the answer may be almost ‘yes’ – but not quite. As you would with any service provider, keeping tabs on their performance is simply prudent.

The happy truth is that managing your property manager will not command a large amount of your attention: a little will go a long way. And some areas to monitor are more obvious than others.

Rent collection is one process that almost monitors itself. When the checks are slow in coming, you’ll know it soon enough. If a regular pattern seems to be developing, discuss your manager’s strategy to improve the tenant’s compliance. Good property management pros have proven strategies for timely rent collection.

Maintenance is one main reason a property manager is invaluable. When a repair issue arises, take a look at the invoices: not only at the cost, but also the time it took to solve the problem.  Your manager should have contracts in place with competent maintenance and repair companies, so complaints from the tenant should not be a regular occurrence. You can also ask for vendor references from anyone who performs services for the property. After all, they are really working for you.

If part of your property manager’s job is to act as a leasing agent (or to oversee one), be certain that he or she emphasizes the importance of ensuring that tenants thoroughly read and understand the lease terms. Ask how your manager would handle any tenant non-compliance if that occurs. Situations that could cause sleepless nights for you should be ho-hum affairs for your pro!

Buying an investment property in Plano can be exciting and profitable, but it’s not usually fully exploited on autopilot. I strive to help my clients find and identify the right investment properties for long-term profitability.  If you are considering buying a local property, contact me anytime to go over your options. You will find that good ones are out there!

Getting a mortgage refinance has seldom looked more attractive than it does this October. Ads for seemingly ridiculously low teaser rates are popping up all over the place — and even if the closing costs are hefty (many aren’t), the underlying rates make them all but irresistible.

But do you qualify?  Some folks don’t realize that a refi can be just as tough as getting a mortgage in Plano in the first place. Or tougher. One client has a stunning property, top credit, and a guaranteed income stream that was more than adequate to fund the refi. She put together all the required paperwork, hosted an inspection (the inspector told her, ‘this is the finest property in the area’), and then waited a week before being told she had failed to qualify. Why? Because her place had a guesthouse — and that particular loan program was for single dwelling properties only!

The lesson here is that it pays to ask all sorts of questions before actually applying for a specific refinance offer; in other words, kick the tires! Nevertheless, when all is said and done, locking in lower monthly payments can still be worth the trouble.

You will want to present a solid picture — one that shows that you are financially stable with a good credit rating. Getting any kind of a mortgage in our Plano is twice as hard if there are significant issues in your credit report or instability in your employment history.

Of course, the basic math has to work, too. The more income you have, the more the lender will be willing to lend. If you are married, you can opt to borrow as a couple so that your joint income is considered. Since the lender will factor in your debt load, subtract your monthly from your income number: if the remainder is healthy, the lender will see that, too.

Lastly (and of key importance), your home will need to appraise for the loan you desire. Although a resurgence in property values seems firmly underway, some neighborhoods have had time to show those rising values, and some not. I can help you get an idea of how the ‘comps’ in your part of Plano have been faring recently – good to know when you are getting a mortgage or refinancing an existing one.

The bottom line?  Getting any type of mortgage in the Plano area requires all the usual suspects.  Reliability and predictability are really the key here.   If you are tempted by today’s record rates to try to refinance, contact a reputable mortgage broker to go over your options.  As always, please consider me your local real estate resource – call me if you need an introduction!