Dallas Fort Worth Area Homes and Real Estate: Texas: Dallas

HUD has continued to promote their HUD $100 down program for home buyers in the Dallas Fort Worth area.  The program is a great opportunity for home buyers to get into a HUD Home without having to pay the normal 3.5% down payment that is required for FHA loans.

HOW DOES THE HUD $100 DOWN PROGRAM WORK?

There are some specific guidelines that have to be followed:

• The buyer must obtain FHA financing in order to get the HUD $100 Down. 
• The buyer must intend to occupy the property.  HUD does not allow the $100 Down program for investors or for buyers that will not otherwise occupy the home.
• The buyer must submit a minimum bid for at least the list price.  Offers submitted below the list price do not qualify for the HUD $100 Down Program.
• Buyers may bid more than the appraised amount of the property, but must pay the difference between that and the offer price, plus the $100 in cash at closing.
• The program follows all of the other general requirements of purchasing a HUD Home. 
  

Home buyers interested in purchasing a HUD home should consider working with professionals that have prior experience with HUD Homes because of the complexity of the transactions.  HUD has very specific guidelines regarding their bidding process, the earnest money, home inspections, the closing process and situations where the property may need additional repairs.   

Buyers who are interested in bidding on a HUD Home and taking advantage of the HUD $100 Down program can contact me for a list of qualified HUD Homes in their area.  I have past experience with this program on the lending side and also as a full time Realtor(R).  Although I am no longer a licensed loan officer, I can help you find a lender that is experienced with HUD transactions.       

{ { { { { { { { { {  SOME F.A.Q. ABOUT BUYING A HUD HOME } } } } } } } } } }

WHAT IS A HUD HOME?

A HUD HOME is a foreclosure where the previous owner had an FHA loan and the lender negotiated with HUD to take over liquidation of the property.  It is essentially no different than any other foreclosure, except HUD allows certain incentives, such as the HUD $100 DOWN PROGRAM, since they are both the seller and the loan guarantor in cases where the buyer is obtaining FHA financing.

HOW MUCH ARE CLOSING COSTS WHEN BUYING A HUD HOME?

The closing costs vary depending on the type of loan the buyer obtains, the total origination charges a buyer chooses to pay relative to their interest rate, as well as other factors determined by how their loan is structured.  Other prepaid items, such as insurance and taxes, will affect a buyer's total out of pocket costs at closing.  Only a qualified loan officer can answer this question on an individual basis.  Contact me and I can put you in touch with a lender that's experienced with HUD homes. 

HOW LONG DOES IT TAKE TO CLOSE ON A HUD HOME?

HUD's contract automatically allows for up to 45 days from the time the contract is executed.  In my experience, buyers should expect closing to take up to this long in most cases.  HUD's closing agent typically requires documents as much as eight business days in advance of the closing date.  This alone means that closings will typically take at least two weeks longer than non-foreclosure transactions.  With all the new Federal rules in place that require waiting periods on loans, this can add up to several extra days. 

In the event a closing is delayed past the normal 45 day closing window, HUD may allow for an extension.

I'VE HEARD THAT ALL HUD HOMES ARE IN POOR CONDITION.  IS THIS TRUE?

Not at all, although some are definitely in various states of disrepair.  Unfortunately, some foreclosures are in this state because the previous owners could not afford to maintain the home.  And in some cases, home owners who knew their home was going to be foreclosed may have vandalized it or stripped the home of appliances and other loose items, such as ceiling fans and light fixtures, before they moved out.  The condition of the home, as is the case with most foreclosures, is often factored into the asking price.  In some cases, the discount on the sales price over current market value may be more than enough to cover needed repairs, improvements and upgrades and still leave the buyer with some equity.  Every situation is different, and the market value of homes in all areas is always a moving target. 

DOES HUD ALLOW FOR A HOME INSPECTION?

Yes.  HUD has a specific policy regarding home inspections for owner occupant purchasers.  In order to obtain an inspection, a buyer must request this in writing and have their agent submit to HUD's asset  manager within 15 days of an accepted offer.  The buyer is also responsible for turning on all utilities necessary to complete the home inspection. 

In general, HUD will either allow items in need of repair to be escrowed into an FHA loan, or they may discount the price of the home in some situations.  However, they will not allow buyers to escrow items that have been marked as "deficient" on the property condition report unless an escrow amount for these items was already determined and included as part of the list price.  So the bottom line is that buyers should read over the property condition report and make sure they are OK with items marked as "deficient" because there is usually no way to go back and ask for these items to be fixed after the fact. 

In many cases, HUD will have already alotted for a repair escrow on certain items that the property condition report has marked as in need of repair.  For example, if HUDs property condition report shows a faulty front door, they may have already stated in the bid that they will allow a repair escrow of $500 to cover fixing the door. 

CAN I PURCHASE A HUD HOME MYSELF WITHOUT USING A REAL ESTATE AGENT OR BROKER?

There is no way purchase or even bid on a HUD Home without using the services of a licensed real estate agent or broker.   Buyers who wish to purchase a HUD home should storngly consider working with an agent that is experienced with HUDs because the transaction is somewhat different from one where the seller is an individual.  HUD also has very specific guidelines and deadlines for not only the contract, but certain other addenda, the home inspection process, requesting repairs, receipt of earnest money by the closing agent and also the  

WILL I HAVE TO PAY MONEY OUT OF POCKET TO USE THE SERVICES OF A REAL ESTATE AGENT OR BROKER WHEN BUYING A HUD HOME?

NO.  The agent commission is paid by HUD directly to the real estate broker.  The buyer pays nothing out of pocket for this. 

WHAT HAPPENS IF THE HOME INSPECTOR DISCOVERS A PROBLEM THAT WAS NOT DISCLOSED ON HUD'S PROPERTY CONDITION REPORT?

In these cases, a buyer can petition HUD to allow for a repair escrow if they are obtaining FHA financing.  The buyer's lender must also agree to this as well and they must also submit a written request to HUD.  HUD will then assess the report and decide whether or not to allow the escrow.  In cases where the total amount of repairs are less than $5,000, HUD will allow this to be structured as a "203B with escrow" loan.  In this case, the work is compelted after closing and both the buyer and the contractor are issued a check.  The buyer typically endorses the check and gives it to the contractor to cash as payment for their services.

However, in cases where the total amount of repairs exceed $5,000, the loan must be restructured into a 203K loan.  A 203K is an FHA loan with a repair escrow of over $5,000.  The 203K loan process is a bit more complex than a simple 203B with a repair escrow.  Also, only a handful of lenders in the Dallas Fort Worth area handle 203K loans. 

IN EVERY CASE, I recommend buyers conduct a full home inspection.  My experience has been that the property condition report sometimes overlooks certain items that may be in need of repair.  DO NOT EVER CONSIDER HUD'S PROPERTY CONDITION REPORT TO BE THE SAME THING AS A HOME INSPECTION!  HUD CLEARLY STATES ON THESE REPORTS THAT THEY ARE NOT HOME INSPECTIONS AND ARE MERELY MEANT TO SERVE AS A GENERAL GUIDE TO THE OVERALL CONDITION.  THEY ARE NOT NEARLY AS THOROUGH AS A HOME INSPECTION. 

I have experienced some cases where a property condition report missed items that were defective - the most recent case was a HUD home that had TWO defective HVAC units that the property condition report stated were functioning normally.  In this case, we were able to successfully petition HUD and the lender for a repair escrow to pay for a new HVAC, which was escrowed and installed after closing.  So in the end, it all worked out.  But if the buyer had neglected to perform a home inspection, they would have had to come out of pocket with several thousand dollars in expensive repairs. 

Contact me at (972) 978-3553 or email me for more information on HUD homes and the HUD $100 Down Program for Dallas / Fort Worth area home buyers. 

The deadline to close on a home purchase in order to receive the home buyer tax credit is looming.  Home buyers who executed a purchase contract by April 30, 2010 have until tomorrow to close on their transaction in order to qualify for the tax credit.  Buyers taking advantage of the "move up" tax credit get an extra day. 

And quite a few buyers did take advantage of this program.  I was lucky to close a few myself this month.  Fortunately, all of my buyers were able to close by the deadline.  They are all happy to be homeowners and also happy to be $8,000 "richer".

Which got me to thinking.  Why did these people buy a home?  They all wanted to own their own home for different reasons.  The real question was why they chose to buy the home THIS MONTH.  Was it just because the government was giving them $8,000?  Or would they have bought a home anyway and just chose to buy sooner because, all things considered, $8,000 IS a LOT OF MONEY!

Not surprisingly, all of them would have bought a home anyway.  In fact, one of them thought he didn't even qualify for the tax credit.  As it turned out, he did, which resulted in him moving up his original plan to close later in the year. 

Another buyer I closed last week is a teacher.  He would have likely waited until the summer to even start looking at homes since he would have been on summer vacation, plus his lease wasn't up until the fall.  Ideally, he would have closed sometime in August, taken a month or so to make a few improvements on the home and taken his time moving.  Instead, he started looking in late February, found a home in mid April and then chose to wait until almost the end of this month to close.  He had to pay a penalty to get out of his lease, but that penalty was a fraction of the $8,000.   

I would have done exactly the same thing had I been in his position. 

A couple of other buyers closed on new homes.  One of them passed on a builder that was unable to guarantee completion by the June 30 deadline in favor of another builder that had an inventory home that lacked a couple of minor features she really wanted.  Instead, she's going to have a contractor install those upgrades once she gets the $8,000 check in the mail. 

So that begs the question.  How did Peter and Paul fare with the homebuyer tax credit? 

Forgive the arcane analogy.  Paul is the second quarter of 2010.  I see him as the main benefactor of the tax credit because this guy named Sam "robbed" a guy named Peter to pay him.  Who is Peter?  He's the third and fourth quarters of 2010.  He's the guy who would have likely ended up with these transactions if the $8,000 had not been a factor. 

And who is Sam?  He's your favorite uncle. 

My point here is not to make an argument in favor of or against the tax credit.  I'll reserve that for another time.  My point is that many buyers who took advantage of the tax credit would have bought a home regardless; they just chose to buy a little sooner to get the $8,000.  

So how might this affect home sales and prices for the rest of 2010?  Or longer?  How many transactions that would have closed in the latter part of the year got moved up to the second quarter? 

We're already hearing news that home sales are starting to plunge.  

How long will the "hangover" from the home buyer tax credit last?

Home buyers who are pre-approved for FHA financing need to be aware of FHA's Guidelines for property condition.  All buyers who utilize FHA financing to purchase their home will have a licensed FHA appraiser perform an appraisal. 

The appraisal is typically ordered by the lender once the home inspection process is complete and the option period has expired.  In addition to determining an opinion of market value, an FHA appraiser must also note certain deficiencies that may exist with the property condition.

Prior to 2006, FHA was considered by many to be overly strict with regards to property condition.  In fact, many home sellers and/or their real estate agents would refuse to accept an offer from a buyer using FHA financing because appraisers would often require a significant amount of repairs. 

Often times, the homes were in good structural condition and did not pose a health or safety issue to the occupants. 

Back then, appraisers could require items such as damaged countertops, cracked window glass and some other cosmetic deficiencies to be repaired prior to closing, even on homes that may have been sold at a reduced price to offset the less than perfect condition. 

In addition to scaring off some home sellers, these requirements would often discourage buyers looking for homes priced below market for cosmetic reasons from using FHA financing. 

But on December 19, 2005, HUD published mortgagee letter 2005-ML-48, which eased many of these restrictions.   Homes that are structurally deficient or that may pose a health or safety risk to the occupants will still have to be repaired prior to closing.  But for the most part, FHA appraisers will no longer require minor property conditions to be repaired prior to closing. 

EXAMPLES OF MINOR PROPERTY CONDITIONS NO LONGER REQUIRED TO BE REPAIRED BY FHA INCLUDE:

• Missing handrails on stairs.  Prior to this change, any staircase with more than three steps required handrails to be installed.  Of course, it's still a good idea to have this done, but is no longer required by FHA.
• Damaged exterior doors that are otherwise operable.  Generally speaking, if a door will close properly and does not have significant holes or damage, it will not have to be repaired.
• Cracked window glass. 
• Defective and/or peeling paint on homes that were built after 1978.  Lead paint was banned by the Consumer Product Safety Commission on September 2, 1977.
• Minor plumbing leaks.  Appraisers can still require major leaks to be repaired.  The definition of "minor" is subjective, so the final call is up to the individual appraiser. 
• Defective floor finishing or excessively soiled carpet. 
• Evidence of previous termite infestation and damage in which no evidence of unrepaired structural damage exists.  If termites are active and damage is present, an appraiser will typically require this problem to be corrected prior to closing.
• Rotten or worn out countertops. 
• Damaged plaster, sheetrock or other wall or ceiling materials in homes constructed after 1978. 
• Poor workmanship.  Again, this is subjective and doesn't mean that ALL poor workmanship will be excused.  Poor workmanship that results in a structural, health or safety issue will likely still require repair.  It's ultimately up to the appraiser and the underwriter. 
• Trip hazards, such as heaving sidewalks and carpet that was poorly installed.
• Debris and/or trash present in the crawlspace of a home.
• Lack of an all-weather driveway surface.

IMPORTANT NOTE!! - Some lenders have OVERLAY GUIDELINES, which are arbitrary guidelines over and above FHA's minimum requirements.  Home buyers purchasing homes with any of these conditions should consult with their lender and/or loan officer to see if they will require any of these items to be repaired or replaced before closing. 

EXAMPLES OF PROPERTY CONDITIONS THAT STILL REQUIRE AUTOMATIC REPAIR PER FHA INCLUDE, BUT MAY NOT BE LIMITED TO:

• Leaking or worn out roofs.  If more than three layers of shingles exist on a bad roof, all must be removed before roof can be replaced.
• Inadequate access to exits from bedrooms. 
• Evidence of structural and/or foundation problems.  (NOTE-Contrary to popular belief, Conventional loans such as Fannie Mae and Freddie Mac may also require foundation and structural problems to be repaired prior to closing.)
• Defective interior or exterior paint surfaces in homes built prior to 1978.
• Defective exterior paint surfaces on homes built after 1978 where the finish is otherwise unprotected.

PROPERTY INSPECTIONS (SEPARATE FROM A HOME INSPECTION, WHICH I RECOMMEND FOR ALL BUYERS)

FHA also no longer mandates automatic inspections for the following:

• Termites and/or wood destroying insects unless active infestation is observed by the appraiser.  
• Well and septic test.
• Inspection for a roof that is flat or otherwise unobservable. 

IMPORTANT NOTE!!-Individual lenders may require these inspections to be conducted even though FHA does not specifically require them.  Again, these requirements are called OVERLAY GUIDELINES and can be imposed by lenders that choose to require a higher standard than FHA's basic requirements.  These inspections may also be required if mandated by state or local laws or if they are customary for the area. 

FHA will continue to require inspections when the following conditions exist:

• Standing water against the foundation and/or excessively damp basements.  Such conditions can easily lead to foundation and other structural problems and also can be very conducive to wood destroying insect infestation. 
• Hazardous materials on site or located within the improvements.
• Faulty or defective mechanical systems, including electrical, plumbing and HVAC.
• Evidence of structural problems or structural failure, including foundation cracks. 

HOME BUYERS that haven't already signed a buyer's representation agreement with another agent: If you are looking to purchase a "fixer-upper" home, contact me to discuss other financing options that may be available.  There are still loans that allow repairs, both minor and major, to be escrowed.  I can evaluate your options and put you in touch with lenders that can help.  There are also some great programs available on foreclosures that allow repairs to be rolled into the loan.   I have ten years experience as a lender prior to becoming a full time Realtor(R), so put my experience to work FOR YOU!

HOME SELLERS that haven't already signed a representation agreement with another agent and are concerned about whether or not their home meets FHA requirements should call or email me with questions.  DON'T AUTOMATICALLY ASSUME THAT FHA WILL NOT ALLOW YOUR HOME TO BE FINANCED without consulting with me first.  The pool of FHA buyers has increased significantly over the last few years due to many reasons, such as the increase in down payment, credit score and general credit guidelines for Conventional loans, as well as the fall of subprime and Alt A loans. 

You may be missing out on a large pool of buyers if you refuse to accept an offer from an FHA approved buyer.  Call or email me today and we'll evaluate your individual situation.  I have ten years experience as a lender prior to becoming a full time Realtor (R), so use my experience to HELP YOU sell your home! 

For the first time since 1986, Dallas Fort Worth will host the NBA All Star Game and all the parties and festivities that come along with it. 

The All Star Game will actually be held not in the American Airlines Arena that is home to the Dallas Mavericks, but instead will be in the newly completed Cowboy's Stadium in Arlington (aka "The Jerry Dome"). 

The seating capacity at Cowboy's Stadium is around 80,000 but can be expanded to over 100,000, which is exactly what some people would likely love to see happen.

Cowboy's owner Jerry Jones and Maverick's owner Mark Cuban are anxiously awaiting to see if attendance at this year's game will shatter the current record of 44,735 fans set at the 1989 NBA All Star game held at the Houston Astrodome.  This years game attendance may have a shot of doubling this old record.

And I expect this will likely be one of the busiest, if not THE busiest, weekend of events in Dallas Fort Worth history. 

In addition to the game itself, there are dozens of events happening throughout the Dallas Fort Worth area starting tomorrow (Thursday).   

If you live in the Dallas area and have driven past downtown lately, you probably couldn't help but notice the larger than life image of Dirk Nowitzki plastered on the side of Bank of America Plaza (the neon green building). 

Dirk is a pretty tall guy, but this really does him justice!

Check out the Hyatt Regency close to Reunion Tower for more larger than life images of some NBA All Star players. 

The downtown Dallas area is expected to have hundreds of thousands of visitors over the weekend.  The only events in recent times that have attracted crowds this large to Dallas were the World Cup in 1994 and the Republican National Convention in 1984.  Police have warned motorists and partygoers in the Dallas area to expect traffic delays and problems with parking. 

Speaking from experience, I can tell you that Dallas is not nice to drivers that park in no parking zones, so don't expect your car to be there when you get back if it wasn't supposed to be there in the first place. Taking cab or hopping on the DART rail may be a much smarter option than risking the traffic and parking nightmare that will likely envelop the city for the rest of the week.  Add to that the two inches of snow expected to fall in Dallas tomorrow night and it might not be a pretty sight for those who are unprepared.

Below is a list of the events planned around the Dallas area for this coming weekend.  Tomorrow night (Thursday) is "opening night" and will likely be the busiest night of the week for events.  Expect security to be extra-tight and dress codes at many of these events to be strictly enforced.  Call the numbers below for full details.

{{{{{{{{{{ THURSDAY DALLAS NBA ALL STAR EVENTS }}}}}}}}}}

• ALL STAR OPENING NIGHT CONCERT - 7PM at the Majestic Theater on Elm Street in downtown Dallas.  Featuring Mary J. Blige, comedian Mark Curry and hosted by actor Mario Lopez.  For tickets, call Ticketmaster at 800-745-3000.  Ticket prices $150-$2,500. 
• ALL STAR WEEKEND TIP-OFF PARTY - 9PM at the Palladium Ballroom on South Lamar just south of downtown Dallas.  Call 800-960-4560 for ticket info.  Hosted by rapper Ludacris and basketball great Allen Iverson.
• ZO AND MAGIC'S 8 BALL CHALLENGE - 9PM at Centennial Hall at Dallas Fair Park.  Featuring Magic Johnson, Alonzo Mourning and Mark Cuban.  $50 donation required to attend - Proceeds benefitting the Magic Johnson Foundation.  www.8ballchallenge.com
• EVERYTHING'S BIGGER IN TEXAS- 9PM at TePheJez night club in Dallas.  Benefit for "Laptops for the Wounded" $50 general admission or $125 VIP.  Call 214-744-JAZZ. 
• ALL STAR COMEDY JAM- 8PM at Nokia Theater in Grand Prairie.  Hosted by Shaquille O'Neal.  214-373-8000. 
• ALL STAR HOLLYWOOD CELEBRITY SOIREE - 9PM at Union Station in downtown Dallas.  Tyler Perry, Terence Howard and Kerry Washington will be there.  Call 800-960-4560 for ticket info. 

{{{{{{{{{{ FRIDAY DALLAS NBA ALL STAR EVENTS }}}}}}}}}}

• 944 MAGAZINE'S FRIDAY-SATURDAY-SUNDAY PARTY AT THE BOARD ROOM - Begins Friday at 5PM.  Continues Saturday and Sunday.  The Board Room in Victory Park on Houston street.  Guests will include Russell Simmons and rapper Snoop Dogg.  www.944allstar.com 
• THE VIBE MAGAZINE ALL STARS OF COMEDY EXPLOSION - 7PM at the Majestic Theater.  Featuring Aries Spears, Jay Lamont and Chris Spencer.  Tickets 800-745-3000. 
• P DIDDY DOES DALLAS - 9PM at the Palladium on South Lamar south of downtown.  Pretty obvious who's going to be there.  Tickets - 800-745-3000.   
• CLASH OF THE TITANS - NFL VS NBA ALL STARS - 9PM at Union Station in downtown Dallas.  Tickets 800-960-4560. 
• VIBE MAGAZINE'S COMEDY SHOW AFTER PARTY - 10PM at the Tower Club in Thanksgiving Tower in downtown Dallas.  Hosted by Rickey Smiley.  800-960-4560. 

{{{{{{{{{{ SATURDAY DALLAS NBA ALL STAR EVENTS }}}}}}}}}}

• THE KATT WILLIAMS EXPERIENCE - LIVE IN CONCERT - 7PM at the Majestic Theater on Elm in downtown Dallas.  800-745-3000. 
• PARTY FOR CHAMPIONS - 9PM at the Tower Club at Thanksgiving Tower.  A Red Carpet Event with multiple rooms of entertainment and a cigar bar.  Tickets 800-960-4560.

{{{{{{{{{{ SUNDAY DALLAS NBA ALL STAR EVENTS }}}}}}}}}}

• ALL STAR APPRECIATION DAY - Noon at Union Station.  Featuring complimentary mimosas and massage stations.  Call 800-960-4560. 
• ALL STAR GAME WATCHING PARTY - 6PM at Union Station.  800-960-4560. 
• AND OF COURSE, THE NBA ALL STAR GAME WILL BEGIN AT 7PM CST at COWBOY'S STADIUM IN ARLINGTON.  Ticket prices range from $25 up to more than you and I together can probably afford.  Call 800-745-3000. 

And if you feel like checking out multiple events, consider purchasing an NBA All Star Passport.  Get tickets to 10 events for $399 or VIP access for $899.  Visit www.dallasallstarpassport.com for details. 

Or sit at home and watch it on TV.  That's always fun too....In fact, that may prove to be a smart strategy for Thursday night if it does happen to snow two inches.

In addition to these headline events, many other restaurants, bars and venues will host smaller events that will attract crowds from all over.  Check www.quickdfw.com for more info on smaller local events planned for the weekend.

The Dallas, TX real estate market has remained very resilient throughout the recession and housing crisis.  Below are some real estate statistics and charts for single family home sales in the city of Dallas, TX from December of 2007 to December of 2009. 

The median home price of homes sold in the city of Dallas, TX decreased by 6% from $145,000 to $136,250 from December of 2007 to December of 2009.  The significant movements in this median home price are likely due to the shift in activity on a seasonal basis, plus the changing availability of mortgage products, especially for jumbo loans. 

The most significant decline was in the beginning of 2009 when the financial crisis escalated and many home buyers were paralyzed by market uncertainty, plus the normal decline in sales activity during the winter months.  Overall, the market has remained relatively strong, especially compared to cities in the "bubble states" like California and Nevada, where median home prices have declined by over 50% or more in some markets. 

Although I do not like to post "seasonally adjusted" data because I do not believe it shows an accurate picture of the market, I do think it is very important to compare changes in statistics, such as the median home price, to similar months for different years.  For example, comparing the change between sales from June of 2008 to June of 2009 tends to show a more accurate picture of the market versus comparing June and December figures because of the normal seasonal decline in sales between June and December. 

The average days on market for single family homes in Dallas, TX varies greatly from one month to the next, but is usually greatest in the winter months because of the seasonal slowdown in real estate sales.  The average number of days that homes sit on the market in Dallas, TX actually decreased slightly (by 3%) from December of 2007 to December of 2009. 

This next chart shows the median for sale vs. the median sold price of sold properties in the City of Dallas, TX from December of 2007 to December of 2009.  This data shows that while the median price of homes listed for sale has increased by 64%, the median price of homes that have actually sold has decreased by 6%. 

I believe this to be a direct result of the tougher market for jumbo loan products combined with the incentives for conforming buyers (such as the home buyer tax credit and the Federal Reserve mortgage-backed security purchasing program).  Both of these programs are slated to end in just a few months, which I suspect will result in a reversal of this trend to some extent. 

And below is the data for expired listings in the City of Dallas, TX from December of 2007 to December of 2009.  This shows that the number of expired listings has declined by 19% from Dec 07 to Dec 09, and the overall trend of expired listings seems to be on a decline. 

And the decline in expired listings certainly seems to match the trend we've seen in the total number of "For Sale" properties.  This chart shows a steady decline for the last two years, with a marked decrease occuring over the last year.  In total, the number of single family homes for sale in the City of Dallas, TX has decreased by 28% from December of 2007 to December of 2009. 

This is likely the result of decreased equity that many home owners have, which means they are not able to sell their homes, as well as a decrease in available financing compared with prior years.  This would also seem to reflect the general slowdown in the economy as a whole. 

The total number of single family home sales in Dallas, TX has declined steadily for the last two years, showing a total decrease of 19% from December of 2007 to December of 2009.  Again, this is likely due to the general slowdown in the economy, lack of available mortgage products and also some home owners that may be "upside down" on their current homes and unable to sell. 

And here's a chart that shows the total number of single family homes with purchase contracts in Dallas, TX from December of 2007 to December of 2009.  The trend seems to closely follow the number of closed sales (above), but there is a slight gap that appears to be widening during some months.  The difference in sold homes versus homes that are under contract to sell represents all contracts that have fallen out due to financing problems and buyers who terminate due to other reasons, such as those that are unable to negotiate repairs with the seller.   

This market data was provided courtesy of MarketMetrics.  The data is believed to be reliable but I cannot guarantee its accuracy.   In addition, sales of "by owner" properties, as well as some MLS sales where the buyer and seller opted out of disclosing the sales price are not included in these figures.

HOME SEARCH GATEWAY - THE EASY WAY TO SEARCH FOR HOMES ONLINE IN DALLAS - FORT WORTH

Thanks to the internet, it is now easier than ever to search for homes online.  It is estimated that as many as 94% of homebuyers begin the search for their new home via the internet.  And while there's little doubt left that the internet has simplified the home search process for many consumers, there can be some pitfalls to searching for a home online. 

For starters, many websites only allow a very narrow set of search criteria.  For example, a buyer searching for a three bedroom, two bath home in Dallas will quickly find that they have an overwhelming number of choices.  How can buyers narrow down their search to the more specific criteria that's relevant to their individual needs and wants?  And how can they eliminate the homes that don't fit their criteria so they don't have to keep sorting and resorting their favorites from the rejects?

Is there a better way to search for a home online?  YES!  It's called a Gateway search, and it can only be set up by a local Realtor®.

WHAT IS A GATEWAY SEARCH?

A Gateway is a customized home search linked directly with the MLS system, which is the computer and home search system used by all Realtors®.  Only Realtors® have direct access to the full MLS system and the ability to create a custom Gateway search for a consumer. 

The Gateway is essentially a custom website prepared by a Realtor® for a potential buyer.  Instead of receiving an email with dozens or even hundreds of home listings to sort through, the Gateway sends an email once a day with a link to all homes that fit a buyer's specific requirements.  And the search is updated every 24 hours with new listings, price and status changes and other updates.  So once the criteria is entered by the Realtor®, the search process becomes much easier and more focused for buyers that have a specific idea of their wants and needs. 

The criteria can be changed at any time, and multiple searches can also be added to a Gateway.  For example, a buyer looking for a home either in the Frisco or Plano School District could have seperate search links for homes in each district. 

But aside from the simplicity, the Gateway also offers many other features that make the process of finding a home even more efficient and enjoyable.  Here are some other features the Gateway allows:

SAVE FAVORITES, POSSIBILITIES AND REJECTS TO SPECIFIC FOLDERS

The Gateway offers users the ability to save favorites, possibilities and rejects to folders for easy sorting and reference.  They can also write and save notes on each home listing, and the Realtor® can make notes as well.   This cuts down on multiple emails and phone calls once a buyer narrows down their selections and helps to keep all of the information and correspondence in one place. 

SEARCH CRITERIA CAN BE CUSTOMIZED VERY SPECIFICALLY.

The MLS system allows for very specific search criteria to be entered on a Gateway search, whereas most online search engines only allow very general criteria, such as price range, bedrooms and city. 

An example of some of the search criteria the Gateway allows:

• SCHOOL DISTRICT AND EVEN SPECIFIC SCHOOLS.  Many cities in D/FW lie in multiple school zone boundaries.  Furthermore, most school districts have specific boundaries for each school.  So if you have specific needs as far as school or district, a Gateway search is the best way to find the home you're looking for!
• HOME FEATURES.  Looking for a home with gas utilities?  Or a pier and beam foundation with a backyard at least half an acre?  The Gateway will find it.  What about a two-story home with wood floors and energy-efficient windows?  They are out there, but you'll be looking through a bunch of lemons to find that lemonade if you're only searching by price and bedrooms. 
• SPECIFIC GEOGRAPHIC LOCATION - Say you want a home within a five mile radius of your office.  Or perhaps you want to be within the borders of specific roadways, such as "North of LBJ Freeway, West of the Tollway, South of Campbell Road and East of Central Expressway".  Or perhaps you want to search multiple areas that aren't connected to each other and would like more than one custom search.  The Gateway Search can do that!
• ROOM DIMENSIONS AND LOCATION.  Have a need for a garage at least 22 feet wide?  Or want a two-story house with the master bedroom downstairs?  A Gateway search will find it. 

And in addition to these features, the Gateway allows all listings to be mapped as well. 

It goes without saying that there is currently an oversupply of homes in most markets.  With all the choices, why waste your time searching multiple websites, making phone calls and spending hours of your time viewing homes that might catch your eye online but don't meet the specific criteria that you're looking for? 

It's your time, and you deserve a better way to search for your new home. 

Contact me today to customize a Gateway search to fit your specific needs and criteria.  The setup process is short, the service is free and it can easily be expanded to include multiple searches. 

If you are a business owner looking for a great office location in the North Dallas area, the Tollway Park Office Condo development, located on the southeast corner of the Dallas Parkway and Frankford Road, is a great location to consider. 

The development is centrally located close to the Tollway and George Bush (190), and just a few minutes drive to Plano, Addison, Carrollton and LBJ Freeway (635).

Our newest listing in the Tollway Park Office Condos is located at 18170 Dallas Parkway, Suite 303 Dallas, TX 75287.  This listing is somewhat unique because the seller is offering unit 303 for sale as a single unit for $300,000 or both units 303 and 304 for sale as a package for $600,000.  

The front of the building has a very nice drive up appeal for an office building.  The Tollway Park Office Condos have been the home of many businesses, including an optometrist, a laser hair removal clinic, a financial planner and a law firm.

The seller is the original owner and did not spare any expense on custom upgrades in the finish out, including granite in the restrooms and granite countertops in both kitchen/utility areas. 

Each unit has its own restroom with space for storage over the commode, handrails for handicapped access. 

The restrooms also have good lighting and are in close proximity to all offices in the building.

Both units also have ample storage space, including seperate, firewalled attics that have been decked for extra storage.  

Here's a view of the utility area of unit 303 looking into the utility areas of both units. 

The two units currently connect together via this passage that connects each kitchen/utility area, which could easily be closed off for a buyer who only wanted to purchase unit 303.  

There are enough options with this work space to mix business with some ammenities that you would find at home.

The lobby area/front office has a wood grain door with a ceiling fan, good lighting and also has small windows on both sides of the door.  There is also a doorbell outside both entrances (Suite 303 and 304), as well as a security system throughout both units. 

This front lobby area could also be used as an office.  

The current owner uses the front entrance as a lobby (suite 303) and the other front entrance (suite 304) as an office.   

Most clients won't mind a short wait in a room like this.

OFFICES IN UNIT 303

Both units combined have a total of eight offices and two lobby areas.   The floorplan is laid out very efficiently with maximum space in the offices and work areas. 

This is the front office in Suite 303.  It is one of the larger offices in the building and has three windows that face east towards the adjacent building and parking lot. 

This is the middle office in Suite 303.  It is large enough to fit more than one person comfortably.  The furniture is also negotiable with the sale of this unit. 

The two back offices in unit 303 both have windows that face West.  However, the adjacent building blocks much of the direct sunlight in the afternoon.

This office is where the current owner has officed for the last two years.  It has more than enough room for a large desk and additional furniture. 

These offices are large enough to hold meetings with several people and without feeling cramped. 

The fifth office area in unit 303 faces west as well and is only slightly smaller than the owner's office next door. 

Although this is the smallest office in Unit 303, it still has more than enough room for a desk, filiing cabinet, extra chairs and plenty of room to spare.

OFFICES IN UNIT 304

Unit 304 is essentially a mirror image of unit 303 with the exception of a few office dimensions.  Some of the offices also have additional windows since this unit is not connected to another on the north side. 

This is the front office/lobby of Unit 304. 

The tile, crown moulding and other finish out items are exactly the same on both sides.

The middle office in Suite 304 is the smallest in the unit but still has more than enough room for a large desk, multiple chairs and other small office furniture, such as a filing cabinet.  The large window faces to the north. 

The second front office in suite 304 is currently used as a conference room and also has three large windows that overlook the parking lot and adjacent buildings. 

This office is perhaps the best seat in the house!  This corner office in the rear of Unit 304 has wondows that face both north and west with a view of the middle courtyard of the Tollway Park Office Condos. 

A RECAP OF THE OFFICES AT 18170 Dallas Parkway Suite 303 and 304

Unit 303 is listed for sale for $300,000

•·     1175 square feet total.

•·     4 offices and a lobby that can be used as a fifth office.

•·     Restroom with granite vanity.

•·     Attic decked for additional storage.

•·     Plumbed for kitchen connections.

•·     Storage closet.

•·     Custom finish out includes custom tile in kitchen/utility area, corwn moulding, granite in work area and six panel doors.

•·     Fully wired with CAT5 and telephone connections.

•·     Security system.

•·     Ample parking spaces.

•·     HOA dues of $200 per month

Units 303 and 304 are available as a package deal together for $600,000

•·     2350 square feet total.

•·     kitchen area in 304 has dishwasher, sink and connections for a refrigerator.

•·     Additional HOA dues of $200 per month.

•·     Additional attic that is decked for storage.

•·     More windows in the offices since this unit is not connected to another on the north end.

Unit 303 is also available for lease, fully furnished.  Please contact me for additional details.

The $8000 Homebuyer Tax Credit has been officially extended and expanded to include a new $6500 tax credit for move-up buyers.  Dallas area first time homebuyers and move-up buyers now have until April 30, 2010 to obtain a written, binding contract and until June 30, 2010 to close the transaction. 

Some of the details and guidelines for the homebuyer tax credit were changed slightly with passage of this new legislation.  Some of the guidelines were loosened while others were tightened.  And there is a sepearate set of guidelines for the new $6500 tax credit for repeat buyers as well.

EXTENSION OF THE $8000 FIRST TIME HOMEBUYER TAX CREDIT

The new legislation extends most of the guidelines of the previous $8000 first time homebuyer tax credit with the exception of the deadline extension, increased income limits and a few other details: 

Guidelines that REMAINED THE SAME:

• Amount of tax credit remains the lesser of $8000 or 10% of the purchase price.
• Home must be primary residence that will be occupied by the owner.  Investors do not qualify.  
• The tax credit does not have to be repaid unless the homeowner sells the home in the first three years. 

Guidelines that worked out BETTER for homebuyers:

• Deadline to obtain a WRITTEN AND FULLY EXECUTED CONTRACT is now April 30, 2010 and the transaction must CLOSE ON OR BEFORE JUNE 30, 2010.  The previous program had no specific date to obtain a fully executed contract, but the deadline to close the transaction would have been November 30, 2009.
• MILITARY SERVICEMEMBERS who were on active duty overseas for a period greater than 90 days in 2008 or 2009 will be allowed until April 30, 2011 to claim the first time homebuyer tax credit. 
• Income limits for single taxpayers raised from $75,000 to $125,000.  The program phases out completely at $145,000.
• Income limits for married couples raised from $150,000 to $225,000.  The program phases out completely at $245,000. 
  

Guidelines that became MORE STRICT for homebuyers:

• Maximum purchase price cap is now $800,000.  Previous program had no price cap.
• Requires written proof of home purchase in the form of a certified HUD-1 closing statement.  Also, the IRS has more authority to conduct oversight on claims for the tax credit.  The previous program was plagued with fraud since it did not require homebuyer to show any proof of purchase. 

CREATION OF THE $6500 TAX CREDIT FOR MOVE-UP HOMEBUYERS

This is a completely new program that was passed as part of the legislation that expanded the first time homebuyer tax credit.  Current homeowners who are "moving up" will quaify for the $6500 tax credit beginning with all purchases that close after November 6, 2009 and who meet the other guidelines listed below.  Many of the guidelines and deadlines are the same or close to the same as those of the first time homebuyer tax credit:

General guidelines (beginning after November 6, 2009):

• Amount of tax credit is the lesser of $6500 or 10% of the purchase price of a new home. 
• Homebuyer must have owned and lived in their previous home for at least five consecutive years out of the last eight years.
• Home purchased must be a primary residence that will be occupied by the homebuyer.  Investors do not qualify.
• Maximum purchase price is $800,000.
• Tax credit does not have to be repaid unless the owner sells the new home in the first three years.
• Income limits are the same as for the $8000 first time homebuyer tax credit ($125,000 for single filers and $225,000 for married couples, phases out completely at $145,000 and $245,000 respectively). 
  
• A written, binding contract must be signed on or before May 1, 2010 and the transaction must close on or before July 1, 2010.  This is ONE DAY LATER than the deadline for the first time homebuyer tax credit for some reason, perhaps because simultaneous closings can often take two days to fully consummate.
• IRS will require proof of purchase for the new home and will likely require proof that the previous home was both owned and occupied by the homebuyer. 

Stay tuned for some additional updates and some frequently asked questions.  If you have any questions about the extension and expansion of the homebuyer tax credit, please email me. 

The Lochwood Branch of The Dallas Public Library will be having its Grand Opening on Saturday November 7th, 2009 beginning at 10AM.

The City of Dallas has invited all citizens to the official grand opening of the new Lochwood Branch Library this coming Saturday, November 7th, 2009 at 10AM.  If you live in or near the Lochwood area of East Dallas, then you have probably noticed the rather unique building that's been slowly taking shape for  the last several months across from the Home Depot on Lochwood Boulevard.   I had a chance to visit the library yesterday and it is quite amazing, both inside and out. 

In addition to the over 70,000 books available to the public, the library has a huge selection of magazines, DVDs and CDs.  The computer area has almost two dozen computers with high resolution flat screen monitors.   

The Lochwood Branch Library replaces the old Casa View Branch of the Dallas Public Library that was on Ferguson road.  When that library opened in 1964, they broke a record for the most books ever checked out in a single day at a U.S. public library.  The organizers are hoping once again to break a new record, and they certainly have the inventory on hand to make that happen as long as enough people turn out on Saturday. 

In addition to calling all citizens of Dallas to attend the grand opening, they are also asking for help from volunteers to come by the library between the hours of 10AM and 6PM to help put the finishing touches on the remainder of work that has to be done before the big event.

The Lochwood Branch Library also has a theater room with a maximum occupancy of 420 people.  This room will likely be used for community affairs and theater events.  The library is an impressive 19.000 total square feet, including the black box theater, classrooms and public meeting areas.  The parking lot has enough space for over 100 cars and there is also an area to park and lock up bicycles close to the entrance.  

The area is close to the DART bus lines as well.  The DART rail station is only a few miles away on Northwest Highway.

The building itself is a Silver Rated Leadership in Energy building, so it will consume less energy and use recyclable materials. 

The computer area is right in the middle of the library.  There are 25 desktop computers available, as well as 10 laptops and wireless access.  The library will also have self-checkout stations.

The residents of Lochwood and East Dallas have been anxiously awaiting the formal grand opening of the library ever since construction began back in April of last year.  The previous building that occupied this land was the old YMCA building, which had been somewhat of an eyesore in the neighborhood for quite some time.  The city of Dallas did a wonderful job on the Lochwood Branch Library, and hopefully the residents of Lochwood and East Dallas will have the opportunity to enjoy it for years to come.

SCHEDULE OF THE GRAND OPENING EVENTS ON SATURDAY NOVEMBER 7TH:

10AM - Grand opening begins.

11:30AM - Reilly Elementary Choir will perform.

12NOON - Reinhardt Elementary and Bryan Adams High School will perform

12NOON to 2PM - Childen's Crafts

3PM - Tango lesson with Laurie Vego

4:30PM - Teen Time.

The Lochwood Branch Library is located at 11221 Lochwood Boulevard in Dallas, TX 75218 almost directly across from the Home Depot. 

Interactive Map Showing Dallas/Fort Worth Area Home Prices and Statistics for 3rd Quarter of 2009

The Dallas Morning News published an interactive map today showing the performance of the Dallas / Fort Worth area real estate market for the third quarter of 2009 compared to the second quarter of 2009.  This interactive map, broken down into the various MLS numbered areas, shows various data about home values and the Dallas real estate market, including:

• The number of home sales.
• The percentage change in the number of sales compared to the previous year.
• The median home price.
• The percentage change of median home price compared to the previous year.
• The median number of days on the market.
• The median price per square foot.

Their source for this data was the North Texas Real Estate Information Service, which is the company that manages the MLS system that all realtors use to input home listings and home sales prices.   It's important to note that some of these numbered MLS areas overlap into different cities and parts of town. 

This data does not include homes that have sold "by owner", nor does it include home prices of homes that were "Z'd out" in MLS by home buyers and sellers.  "Z'd Out" is a term used by real estate agents when the sales price of a home was not disclosed in MLS.  Texas is a non-disclosure state, which means that a buyer and seller can opt-out of publicly disclosing the sales price of a home in the MLS system if they both agree. 

THE NUMBER OF HOME SALES IN THE D/FW AREA

• While it appears that every single area had a decrease in home sales compared to the previous year, some areas fared better than others.  Frisco showed only a 4% decrease in the number of home sales, while Far North Dallas, Westlake and Kaufman county only saw single digit declines.
• The highest percentage decrease in home sales were the Wilmer-Hutchins area, followed by the Park Cities and Sunnyvale area.  All three had a decrease of greater than 30%.  The Grapevine area also posted a 28% decrease.

THE MEDIAN HOME PRICE IN THE D/FW AREA

• Some areas of the D/FW area actually had either small increases or saw no change in the median home price from Q3 2008 compared to Q3 2009.  Overall, Westlake showed the largest increase in median home price at 14%, followed by Duncanville at 7%, while Arlington and Ellis County showed median home price increases of 4% and 3% respectively. Cedar Hill, Garland, Richardson, Wylie, Euless and Denton County all increased by a modest 1%.  Areas that posted saw no percentage change included Far North Dallas, Northeast Dallas, Colleyville and Grapevine. 
• Areas that saw modest price declines of only 1% were The Colony, Northwest Dallas, Grand Prairie.  The Sachse-Rowlett area dropped by 2%.  The highest drops in median home price included Wilmer-Hutchins, which dropped by 35%, Oak Lawn and Southeast Dallas, which saw decreases of 23% and 17% respectively, as well as North Dallas and Park Cities, which both saw declines of 13%.  The declines in Wilmer-Hutchins and Southeast Dallas were likely due to the high number of foreclosures and general oversupply of homes, whereas North Dallas and Park Cities likely decreased because of the lack of financing available at their median home price range, which is generally above both the Fannie Mae conforming loan limit, as well as the FHA loan limit for this area.  Oak Lawn likely suffered because of declining prices in some condos, as well as some of the areas priced above the loan limit for traditional financing.

Overall, the Dallas real estate market is still performing very well compared to many of the bubble states, such as California, Nevada, Arizona and Florida, which saw enormous inflation in real estate values for many years in the late 1990's and early to mid 2000's.  Although prices in many areas of Dallas did post increases during these same periods, the median home price to median income ratio never rose to levels anywhere close to the bubble states. 

While this data can be very useful, it does not tell the whole story.  Real estate values can fluctuate significantly even between individual neighborhoods and subdivisions.  Ultimately, appraisers determine market value by the sales price of comparable homes that have sold within a short distance from the subject property within the last three to six months.  The individual characteristics of a home, as well as the specific market demand in the neighborhood, have a significant impact on the appraisal value of a home. 

DALLAS MORNING NEWS INTERACTIVE REAL ESTATE MAP