North Texas Real Estate Talk

In our fast-paced North Texas housing market, you only get one chance to make a first impression. When buyers are looking at your home they often know, almost instantly, whether they’ll consider it or not. While front landscape and curb appeal are ‘hot topics’ in real estate, the backyard is often forgotten or left in need of TLC.

It’s especially important during spring and summer months to keep the backyard in tip-top shape, as buyers will be thinking about barbeques and children playing outside. Potential buyers have to love all features of the home, including the immediate outdoors.

If you have a pool or hot tub make sure it is kept sparkling clean. If your lawn is looking a little bit weak, fertilizer and consistent watering will bring back the deep green color. Be sure to maintain your lawn frequently until your home is sold, and remember to cut back overgrown shrubs to show more of the exterior of your home.

Fences should be stained and in good repair; all latches and hinges should be in working order. If you’re a dog owner, be mindful to keep the “evidence” to a minimum. If you have a patio, make sure it’s clutter-free and that any furniture is clean and strategically placed. Potted plants can add a tremendous amount of life to a patio.

In short, make a lasting first impression inside your home and out. A few minor adjustments could make a tremendous difference on how quickly you receive an offer from a buyer!

If you’re considering a remodel of your North Texas home, you probably want to get a solid return on your investment when you sell your home in the future. But when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90% or more. Things like adding rooms or finishing basements tend to pay back the least. Finishing a basement usually returns less than 50%, so it’s not a project likely to show profit at selling time.

There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your area. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market.

The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you’re smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back.

An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood. It’s important to keep your home within neighborhood standards – don’t remodel or upgrade to the point that you’ve priced yourself out of the market when you try to sell your home.

Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment. Some improvements are just too complex for do-it-yourself work though and should always be done by a professional contractor. In those instances, the better you negotiate the cost, the better your return. But this is not a time to cut corners in order to save money. Remember, if you choose a contractor based solely on bid price, you’re likely to get less quality work in return.

The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:

• Kitchen remodeling – 90%
• Add a bathroom – 90%
• Bathroom remodeling – 80%
• Add outdoor living or deck – 75%
• Upgrade windows – 70%
• Add a room – 55%
• Build a pool – 45%
• Finish a basement – 40%

Monday’s bond market has opened well in negative territory after talks on raising the debt ceiling (or read more here) fell apart in Washington late Friday. The stock markets are reacting the same way with the Dow down 68 points and the Nasdaq down 14 points. The bond market is currently down 16/32, which will likely push this morning’s mortgage rates higher by approximately .250 of a discount point over Friday’s morning pricing.

There are seven reports scheduled for release this week which may affect mortgage pricing in addition to two relevant Treasury auctions, but none come today. The setback in Washington really puts Congress and the White House on an extremely tight timetable to come to an agreement before the August 2nd deadline to avoid default on our current debt. Even though that date is over a week away, procedures for drafting bills to be presented and voted on have to be followed. This leaves just a couple days for both sides to agree and for the final product to start its way through the House and Senate before reaching the White House for signature. This issue will be in the forefront of the news and trading during the next couple days.

Tomorrow has two economic reports scheduled for release. The first is July’s Consumer Confidence Index (CCI) from the Conference Board at 10:00 AM ET. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. If consumers are more confident in their own financial situations, they are apt to make large purchases in the near future. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, meaning that consumers were less confident than thought, we may see bond prices rise and mortgage rates drop Tuesday. Current forecasts are calling for a reading of 56.0, which would be a lower reading than June’s 58.5 and indicate consumers are becoming less comfortable with their finances.

Overall, an extremely active week in the financial and mortgage markets is expected. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important report of the week is Friday’s preliminary GDP reading, making it one of the most important days of the week. But it is difficult to say which day we can expect to see the most movement in rates as several of the releases and scheduled events have the potential to influence mortgage rates. The wild card is the debt ceiling. Any news on that topic will probably heavily influence the financial and mortgage markets, as we are seeing this morning.

Therefore, it is recommended that you maintain contact with your mortgage professional this week if you’re still floating an interest rate. Experts say if you’re scheduled to close on a home loan in the next 20 days, you might want to lock in your rate if you haven’t already.

And if you’ve been waiting to purchase to see what the interest rates do this week, you might want to get that loan now. Of course, there are no guarantees and you should always consult a qualified lender for more information.

Contact me if I can be of assistance with your North Texas home purchase.

Information Provided by Mortgage Commentary 2011

With the price of oil on the rise – let’s be honest, with the price of everything on the rise – these simple strategies to help save energy in your home will help when having to make difficult decisions in your household budget. For this article, we’ll focus on strategies around heating your home.

Program Economical Thermostat Settings in Your House

One of the smartest strategies to help save energy in your home is lowering your thermostat when you go to sleep and when you’re away. Start with a comfortable setting of 68 F, then turn it down by 10 degrees on your way out. Save on your peace of mind, too, by installing a programmable energy-saving thermostat. Most are priced under $100 and will pay for themselves within one year of proper use. Learn more about programmable thermostats and their benefits from the U.S. Department of Energy.

Avoid the Draft with Weather Stripping on Your Doors and Windows

How many times have you walked by a closed window or exterior door and felt a tiny bit of air rush in? Those little bits add up to a lot of heat rushing out in the course of a year, and more during harsh winters. Covering them up is one of the best strategies to help save energy in your home. It’s also one of the least expensive.

A 10 foot roll of weather stripping costs under $10. For less than $50 or so, and within a couple of hours, you can avoid heating the outdoors. If even that’s too much—and let’s face it, it might be considering all the demands on our time and money—roll up a thick towel and press it against the door.

Clean or Replace Air Filters Regularly

Another one of the low-cost strategies to help save energy in your home is monitoring the wear and tear of your air filter. Do this throughout the year, not only during high-use seasons of summer and winter. A clogged filter will make your heating/cooling system work harder, so the roughly $20 to $50 you spend on a new filter is well worth it. You can avoid even this minimal expense by cleaning the filter frequently.

Move It

We all have them. Small piles of stuff accumulating throughout the house, on top of which is our great intention to put them away “someday.” If your pile is on top of or near a heater or register, someday has come. Unpack that box, file those papers, hang those clothes! At the very least, move them where they won’t block the heat from being distributed evenly. Keeping things tidy is not only one of the easiest strategies to help save energy in your home, it also saves effort in the long run.

Invest in Insulation That’s Good for Your House and Health

There are always going to be costly strategies to help save energy in your home. However, depending on how long you plan to stay where you are, they could pay for themselves over time.

If you’re fortunate enough to have a little extra cash on hand, one of the most cost-effective strategies is to invest in proper insulation. If you still have home insulation used in the 1920s, it’s high time for you to upgrade!

Considering insulation is sealed in walls and ensconced in attics and crawl spaces, you might be surprised at how it can deteriorate over time. A combination of moisture and animal waste (the smallest holes provide a damp breeding ground for the tiniest creatures) over the years can do a lot of damage. You’ll also find that today’s materials are far more efficient than what you may currently have.

The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, which sources a variety of strategies to help save energy in your home, has a section on insulation and air sealing that will take you through the steps of assessing your home’s specific needs.

Watch for additional strategies to help save energy in your home. Up next will be a feature on appliances, lighting and available tax credits for making your home more energy efficient.

Information courtesy of Realty101

If you’re thinking of taking your patio improvements beyond simple, you’ve probably considered adding a kitchen or fireplace to your existing patio or deck.

Outdoor living spaces are quite popular in North Texas and have become more and more commonplace throughout the area. These enhancements make a great addition to any home, providing long-time enjoyment and oftentimes increasing property value.

According to recent trends, today’s homeowners have an increased interest in eco-friendly architecture, which encourages them to incorporate extensive outdoor living designs into their home plans.

Inspiration from the natural environment creates a tranquil outdoor living space, creating an appreciation for nature and lifestyle. It provides an attractive area for entertaining or a refuge from the hectic pace of everyday life. The design opportunities are endless, limited only by your imagination, or budget.

You can create a personal paradise using brick, stone, wood and other natural materials. Gone are the boring square-shaped patios of yesteryear – people are designing the outdoors to fit their lifestyle. Designs include pergolas, patio covers, outdoor kitchens and fireplaces, extended entertainment areas with ceiling fans, televisions and surround sound.

The design of these features should be done with great care and consideration. An extension to your home should look as though it is not an add-on, but as though it was always a part of the structure. While these inviting living spaces can add great value to your home, a poorly designed and constructed one can just as easily impact your value negatively. It’s best to hire a professional when making extensive improvements to your home.

Enclosed patios are another great way to create an outdoor living area. A well-done enclosure can provide long-term benefits and allow you to entertain without pesky insects ruining the party. In many cases, homeowners will enclose a portion of their patio, and then create a secondary area alongside it. As long as the environments flow and match the quality of the home, there is no right or wrong method to an outdoor living area.

Remember to decorate with live plants, there’s nothing more inviting than potted flowers and ornamental trees in a setting area. Landscape beds can also add tremendous beauty to your newly created paradise. Of course, it wouldn’t be paradise without the greenery, now would it?

Plan your living spaces well and always work within your budget. Don’t cut corners – this is one improvement that can offer big returns on resale.