North Texas Real Estate Talk

Although much of North Texas still remains in Stage 3 Water Restrictions, the recent rainstorms brought the area lake levels up and much-needed relief to residents.

Lake Lavon, which has been holding near 50% capacity for the better part of a year, has seen its lake level rise this past week due to the rain. The lake rose approximately five feet in less than six days, which equates to about an 18% increase. Unfortunately, this isn’t enough to alleviate the dangers of drought conditions for the area.

The North Texas Municipal Water District (NTMWD) says that the twice-per-month watering restrictions will be extended to June 1, 2012. All residents of the North Texas district are asked to water only when absolutely necessary and to reduce turf irrigation – focus on trees, shrubs and foundations.

It’s important for everyone to use water wisely during these times of limited supply, because the NTMWD’s next step is Stage 4 Water Restrictions.

Last month, NTMWD was considering Stage 4 restrictions, which would prohibit landscape watering (except for foundations and hand-held hose watering of trees), it would prohibit permitting of new pools, no draining and refilling of existing pools, golf courses would have limited watering rights, no washing of vehicles, and the list goes on from there. In brevity, no unnecessary use of treated water. If Lake Lavon nears or drops below 35% capacity, the NTMWD will most assuredly put the Stage 4 restrictions in place.

But as of right now, Lake Lavon is at 75%. If North Texans will continue to be mindful of their water usage, and Mother Nature give us more rain like we had last week, we might avoid Stage 4 altogether.

Your home’s landscape is one of its most valuable assets. Knowing that, your next home improvement project may be as simple as planting a tree. At some point, you’ve probably noticed that a common characteristic of older, wealthy neighborhoods are big, mature trees – old trees, even. The value of a tree in your yard will increase as it grows.

If you plan to be in your current home a few more years, plant a tree of substantial size – one in the 8 to 10 foot range. Typically, a tree this size may cost somewhere in the ballpark of $100 to $150 range, depending on the type of tree. The more sought after species, like Japanese Maples, may cost more, but the value of these will also increase more as they mature.

A well-chosen tree adds curb appeal and makes a home appear established within its environment. According to Arbor Day Foundation’s research, 83% of Realtors believe that mature trees have a ‘strong or moderate impact’ on the saleability of homes listed under $150,000; on homes over $250,000, this perception increases to 98%.

If you’re not convinced yet of the value of trees in your yard, consider this: trees do more than provide decoration. They can aid with energy efficiency by providing shade and reducing heating/cooling costs, a properly-sited tree can screen a home from a busy road or a nosy neighbor, they can create an extension of your home and provide visual impacts, and most importantly, they are good for the planet. What better way to ‘go green’ than to plant a tree?

Spend some time evaluating your yard’s needs, determine the most suitable location for a tree and then determine what size and kind you’re interested in planting. A small investment today will benefit you and your home as the years pass.

I receive emails now and again requesting more ideas for storage around the home. Well, I have stumbled across a few that really piqued my interest so I thought I’d share with you.

A do-it-yourself storage wall

I love this idea!! If you look closely at the picture, it is a shelf with coat hooks mounted to a wall and a bench. The wall, shelf and bench are painted the same color to give it the illusion of being one built-in unit. Hopefully the bench lid raises, or drawers would be nice. You could even make the bench a cubby-style cabinet instead.

I couldn’t find instructions for this particular grouping, but here are step-by-step instructions for constructing a built-in-bench.

The color of this particular wall, in case you’re interested, is Benjamin Moore Vintage Wine.

Toe-kick drawers in kitchen

The space along the baseboard area under your kitchen cabinets is probably just sitting there, waiting to collect the falling crumbs. But that can all change…

Almost every kitchen cabinet has a cavity underneath it containing nothing but air. It isn’t prime storage space for everyday items but it will surely house the baking pans, cleaning items and more. And the website where I found this useful idea says it can be done very easily. (Even better, right?)

Don’t worry; the step-by-step instructions seem easy to follow. If you’re like me, you’re already wondering: “why didn’t I think of that?”

Sliding pantry alongside refrigerator

Here’s another incredibly useful idea. It seems no matter how large a pantry we have, it’s never enough.

This idea would work in almost any kitchen, but would be especially useful in the galley-style ones that offer very little cabinet and pantry space. If you do this right, you just might find yourself dancing a little jig.

This site didn’t provide step-by-step instructions, but it gives enough information that those of you skilled in woodwork should have an easy go of it.

Now, the ideas above happen to require a bit of home improvement and whenever you do home improvements, you should always take care to do them properly. Nothing will bring down the value of your home quite like a slop job attached to the property.

Lenders have been cautious with home mortgage loans of late – right up to the closing date.

Many homebuyers mistakenly believe that being approved for a home loan means the deal is done. But that’s not the case. Now, more than ever, it’s important to toe the line after being approved for a mortgage, at least until you close the deal.

Even buyers with good credit scores and substantial savings may find themselves being denied a loan if they make one of these mistakes before closing:

Avoid making major purchases. Lenders have been known to deny a previously approved applicant (at the closing table) if they purchase a new car, furniture, appliances or other major purchases before signing on the dotted line. These purchases suggest more debt for the buyer, and more risk for the lender. Avoid the big-ticket items until you’ve closed and funded the deal.

Don’t make career changes. Your job stability and salary are major factors when being approved for a home purchase. Any career move you make, even for a higher paying job, could potentially jeopardize your loan status. Worst-case scenario, you could be denied the loan completely. Otherwise, they could choose to delay the closing until you’ve demonstrated stability and financial ability to repay the loan. This is especially true if you changed professions or industries entirely.

Be prepared for last-minute credit check. In June 2010, new rules initiated by Fannie Mae’s loan quality initiative prompts banks and lenders to run a second credit check before closing. So, if you missed credit card payments or were late on a mortgage since the initial credit check and approval, then you could putting your purchase in jeopardy. It is recommended by many lenders not to do anything that could affect your credit score. This includes opening or closing credit accounts, paying late or anything that could trigger a credit inquiry.

Understand closing costs. When you begin your loan process, be sure to inquire about estimated closing costs, or the costs associated with the purchase. Depending on the type of loan, (FHA, Conventional, VA), your closing costs could range from 2% – 6% of the purchase price. Your loan officer will be able to answer questions and provide estimates to help insure you have the funds necessary to close. And if you have a real estate professional working for you, then you can even discuss the possibility of having the sellers assist with some of your closing expenses before you put an offer on the home.

Good luck with your home purchase!

If you’re like most people, you’ve often considered purchasing a home, or homes, for investment reasons. After all, real estate is still the best long-term investment choice available. Well, with interest rates being at historical lows, now may be the perfect time for you to start or expand your portfolio.

Before we go any further, let’s set the stage for the type of investments I’m referring to in this post – primarily residential. Investment properties are usually not occupied by the owner and are geared towards profit by means of renting or leasing the property. They are usually held for long-term profit generation and capital appreciation. These properties can include manufactured homes, condos, homes and even multi-family units.

As with any investment, it’s wise to do research or hire a real estate professional to assist you. You will want to have a clear understanding of the surrounding area, the rental market demand, nearby employment districts, etc. Properties situated in central business districts or near high-level employment areas are often key locations.

Another thing to consider is the proximity of universities with high student population. Something to consider when looking into these education locations, is the cost of tuition, as it is often a key indicator. Affluent families are likely to consider renting a place near campus for their children, as opposed to dorms.

Don’t forget to consider the location in relation to popular districts like shopping, dining & entertainment, as well as public transportation. You probably won’t find many properties with access to all of these things, but they should be taken into consideration.

With the help of a qualified professional, you could be well on your way to building a successful investment portfolio. You might be surprised at just how possible it is. If you’d like more information, be sure to contact me and we can discuss your long-term goals.