Posted by Chris Tesch on Tue, Oct 27, 2009
I've met a multitude of people who remark on the amount of parents buying College Station condos or other properties for their students. There are two emotions most of them express at the time either envy because their parents didn't do anything like that for them, or consternation at the fact that the students are living so lavishly.
I don't think anyone would disagree with the fact that our kids are living in, for the most part, much nicer conditions than their parents were during their college careers. That being said the reality is that they will either spend the money on rent or on a house payment.
If your student is planning on attending Texas A&M or Blinn College for three years or more in most cases it's advantageous to buy student housing as opposed to renting it. Even during this economic downturn the prices haven't soured (though they have for a brief period not appreciated) in this segment of our market as a steady supply of students are coming in and leaving each year. If the market does happen to take a turn for the worse (an unlikely possibility probably) then you can keep it for investment property and rent it out until conditions improve.
One typical scenario: A parent bought a 4/4 condo in Waterwood for $149,000 at the beginning of their students sophmore year. Putting down 20% they finance $132,000 on a 30 year note at 5.5%. Payments would hover around $1200 a month with the Waterwood homeowners association of $120 factored in. Renting 3 rooms out at $450 each, the parents are able to make the payment without spending anything for housing for their child.
In 2009 the condo they purchased costing $149,000 sells for $165,000 giving them, at the end of the three years a profit of $16,000. Even with real estate closing costs factored in the profit would be around $6,000. During the three years they lived in the condo the student hasn't incurred any rent and the parents end up with an overall profit of $6000. Compare that to renting. Month after month the student (ie the parents) end up paying $450 a month for the student to share an apartment or home.
I believe in the concept of owning student housing so much that my daughter, a college freshman, is in our condo currently! It seems like a clear choice given the alternative! For more information on potential properties for your student call or email me!
Posted by Chris Tesch on Mon, Oct 26, 2009
Thinking of selling your Bryan or College Station home? Choose your College Station real estate agent carefully. Don't simply rely on word of mouth (though that can be a good beginning point) but check out the agent that you're thinking about dealing with. There are many myths about homesales that carry a bit of truth but a create a lot of hype. Let's look at a few of them.
1) Hire a Realtor who's been in the market for years.
Sounds like a winner...doesn't it? Just hire a real estate agent that's been around in Bryan or College Station for years and you'll have made the right choice. However what you have to look at is not necessarily length of career, but achievements within their career. Someone who's been a College Station real estate agent for 30 years but only sells 3-4 homes a year is probably a worse bet than someone who's been in real estate for 5 years and sells 50 homes a year. Their knowledge is more up to date, so they can price your home more accurately and they have a ready pool of potential buyers.
2) The agent with the lowest days on the market is the right one to choose.
There are many reasons to dispute this myth. In general days on the market might show you something about the agent, but not necessarily that their marketing skills are spectacular. Some agents artificially keep their days on the market low. How do they do this, you ask....Well there are several ways to make it possible.
The first is that the agent may take only listings that will sell quickly (I know a real estate agent that is part of a husband and wife team, somehow one of them always gets the easy listing and the other one the tough listings).
The agent may price their listings too low, making everything they sell an absolute bargain. You don't want to get less for your home even if it has less days on the market unless you really need to move it immediately.
These are just two of a long line of other reasons why days on the market may not be the indication of a good agent.
3) The Realtor is with brand X, a nationally known company so they've got to be good.
This is a very common myth. The fact is that real estate companies don't hire people, they recruit them. There are good and bad agents at just about any company. Yes, the national exposure will definately help but don't assume that the agent has been screened carefully. Real estate agents are self employed and pay franchising fees to work with a company. There are many companies out there who are agent mills. They will take anyone who can fog a mirror into their firm. If they prosper then the company has made money. If they don't do well the company hasn't lost much.
4) The Realtor is going to advertise in the paper so we'll get lots of exposure.
As an agent I use all of those tools, absolutely. However, in the years I've been selling College Station real estate I've found them to be less and less effective. There was a time when Sunday and Monday the phones would ring off the hook for the latest property listings in the newspaper. No more! The buyers we get now are going to the internet to look. Over 94% of buyers start their search on the web. It's increasingly important to have a large web presence, not necessarily for the company, but for the agent themselves. Which leads us to Myth #5.
5) My agent has a great looking website so I'm getting exposure.
Early in my career when I established my website I heard a saying that's always stuck with me. A website that isn't advertised and optimized is like a sign on a road with no traffic. Web traffic is essential to getting exposure for your home. Not just any web traffic either, but targeted traffic with buyers that are actively looking for homes. Many agents put up their website and forget about it. They then pull it out during the listing presentation like it's a huge benefit. Check your agent out on the web before hiring them. Google their names. If they can't even rank as one of the highest results with their own names they certainly won't rank highly in competitive key words. Then put your "buyer hat" on and search for what a potential home buyer would look for. Some popular terms are College Station real estate or Bryan Texas real estate. See how they rank. There will be national company websites that come up first that they simply cannot compete with, but in which your home will be one of thousands. Look for the actual agents and how they rank.
Ask the prospective agent how much they spend on their website per month. Good websites and excellent exposure don't come cheaply. My website runs around $2500 a month between advertising and administration with the lions share going to advertising.
Join me for more College Station buyer and seller myths in the near future. In the meantime choose wisely! Your home is one of the largest investments you'll ever make!
Posted by Chris Tesch on Fri, Oct 23, 2009
November 3rd is a day that Bryan and College Station homeowners, or people who ever hope to own a home need to mark on their calendars. The propositions we're concerned about affect the entire state of Texas, so even if you are moving to a different area within the state or located elsewhere in the state, please make plans to vote! Early voiting began October 19th and ends October 30th.
Voting yes to these four propositions will affect homeowners in the state of Texas by amending the constitution to protect homeowner rights.
Proposition 2 ensures that a residential property is appraised as a home, not a value based on "highest and best use". Imagine that the field next door to your home had the zoning change and suddenly was a commercial property. If this amendment isn't passed it is possible for the appraisal district to come along and say that your property also could be a commercial property and tax it based on that usage. Some homeowners would find themselves in true financial binds as many counties search for more revenues. Keep in mind that already properties that are used as farms or timberland already are exempt from the arbitrary "highest and best use" appraisal. Our homeowners need the same protection.
Proposition 3 allows the state to have oversight of central appraisal districts ensuring that there are uniform standards for appraisals. No longer would appraisal districts be able to set their own standards, artificially lowering their appraisals in certain parts of the state to take advantage of state monies while other homeowners pay the lions share.
Proposition 5 allows two or more adjoining appraisal district to have a combined appraisal review board. Basically it is difficult to get qualified and knowledgable people to serve on the appraisal review boards in rural areas. To speed up the appraisal review process, should you need to protest your taxes, this would allow board members to cross the county lines to ensure that qualified, knowledable board members are available.
Proposition 11 affects eminant domain. This will set standards for what purposes a county can take a property for eminant domain. In the news fairly recently we've heard of situations where peoples homes were taken away for economic development in the city, thereby enriching a developers pocketbook at the expense of the homeowners. This proposition would strictly prohibit that type of condemnation and only allow eminant domain in the cases where it will truly benefit all residences, such as roadways and other essential intrastructure.
Protect your own Bryan or College Station property and vote yes in the upcoming election. The highly controversial College Station red light camera issue will also be on the table.
See you at the polls!!!
Posted by Chris Tesch on Sat, Oct 10, 2009
An excellent article from the AP news service about home ownership. Overall real estate remains a good investment with price appreciation that typically overcomes the slumps. Owning a home for at least ten years means that you have typically gotten at least 4% appreciation per year, significant tax advantages, and a place to live. Read more here: http://www.msnbc.msn.com/id/33243863/ns/business-real_estate/
College Station real estate is still a strong investment call today for your own assessment based on your circumstances.
Posted by Chris Tesch on Sat, Oct 10, 2009
The $8000 tax credit for first time homebuyers isn't the only available credit to take advantage of. Bryan and College Station home owners have abundant opportunities to improve their homes, not only to claim a tax credit but also to save some money in the meantime!
Improvements in a variety of different systems can yield an excellent tac credit for current Bryan and College Station homeowners. Windows, doors, A/C and heat systems, water heaters, solar systems and roofs are just some of the things you could improve your home with and recoup some of the costs.
You may be eligible for a tax credit equal to 30 percent of the cost of materials (up to $1,500) for certain products purchased between January 1, 2009 and December 31st, 2010.
For more information call your CPA and help the enviroment while adding value to your Bryan or College Station home!
Posted by Chris Tesch on Mon, Oct 05, 2009
In just the last few weeks I've noticed, after a somewhat concerning slow down in the later part of August stretching into the first weeks of September, an increasing amount of people looking at the "luxury" end of College Station real estate.
Activity like this usually predates sales by a few months but is too prevalent, I believe, to be a coincidence. In the last few weeks I've frequently been showing homes in College Station that range from 325K to 650K.
This could be a huge relief to those people who have homes on the market currently that range from 300K to 1 million. This segment of the market has, for quite some time, been soft. A rebound is certain to be a sign that consumer confidence is improving and that homebuyers are much less concerned about their job situation.
As always I serve all ends of the market!
Posted by Chris Tesch on Tue, Sep 08, 2009
Statistics coming from the Bryan College Station Multiple Listing Service indicate that inventory is down and has been creating somewhat of a shortage of homes with first time buyers especially scrambling hard to find the right home.
Let's take a look at the chart below with the data year to date:
Looking at home inventory in the Bryan College Station area since January we see that we started the year out strong historically. In January 371 new listings came on the market, compared to '08's 379 and 07's 270.
What's particularly interesting is the spike we see in May in 2007 and 2008 actually shows a dip for this year before settling back down in June.
As inventory goes down, demand, especially amongst homes 120-140K has gone up. This is creating a situation where one segment of the market appreciates while others, namely the 300K and up market, are declining slightly.
It will be interesting to see what the rest of the year holds and how the first part of 2010 does as well.
Posted by Chris Tesch on Mon, Sep 07, 2009
Buyer's Agency is out there and it's a wonderful thing! Bryan and College Station home buyers can get excellent representation without someone trying to "sell" them a property. A good Buyer's Agent will find the choices, investigate possibilities, make recommendations based on resale factors, check into taxes and utilities, pull comparables, set up inspections and coordinate the closing typically at no cost to the buyer.
What about calling the agent on the sign? Not a good idea at all...the agent on the sign has a job too. That job is to sell that particular house, not help to figure out which house is right for you. This is relevant whether you call the agent, a number on the sign or log into a website....that person is charged with selling that property and, if not, at the very least get you as a client.
When picking a Buyer's Agent you need to know that agent doesn't make any money until you sign a contract with them as the agent. Find one that you can trust and stick with them.
Interview several if at all possible. Ask them pointed questions. One secret is that Buyer's Agents make a percentage of the sale. One pointed question that should be asked is "what is your incentive for getting me the best possible price on my home purchase?" I typically talk about that in my home buyers interview. My incentive is to keep you as a client, not only for this transaction, but for any future investments or home sales or buys in the future. I'm also hoping that you will refer me to your friends and relatives as well. To accomplish that it is essential that you trust me and realize that I'm going to do what's right.
When buying a home, a condo, or investment property you'll have the best success by picking someone honest, hardworking and dedicated to you and your success!!!
Posted by Chris Tesch on Sun, Jul 26, 2009
Buying a home in Bryan or College Station this year? If you're going FHA (3.5% down) you might not notice a huge difference. If you are financing conventional (typically 20% down) be aware that it will take longer than in previous years.
Lenders and appraisers have been seperated out this year with the lender no longer being able to go straight to the appraiser. The process now is that the lender puts in an order for an appraisal for the property. A central appraisal office will assign an appraiser to it. Despite the fact that the central appraisal office has a copy of the contract up front we are finding in most cases the appraisers, who must have the contract in order to finish their job, must call the agent for the contract.
Expect delays as another layer of complexity is added into the equation. Closings that could have been done in days before are taking a minimum of 30 days and sometimes even 45 days. Plan accordingly.
Thinking of buying a home in College Station? Your best bet is to begin the process two months before you wish to close if you are using conventional financing. FHA regulations have not required this seperation process between the appraisers and lenders so 30 days maximum is the usual FHA closing. If you're using FHA begin looking for the right College Station home or Bryan home about 45 days in advance of your move date.
Posted by Chris Tesch on Wed, Jul 15, 2009
Buying a new home is a dream for many. To be the first to live in a home, picking out the colors, the countertops, the light fixtures is the College Station real estate fantasy for many. It does have it's advantages, but often comes with a whole host of disadvantages as well.
What you must know about buying a new home in Bryan or College Station
1) Many builders contracts give them the right to substitute material without giving notice to the buyer. You could find yourself getting T-11 instead of a Hardiplank or you may have seen a Jacuzzi brand tub in the model but find yourself getting a lower end tub.
2) The building process is frustrating, tiring and stressful. On a 300K plus home that a client was building I went in to find flat panel doors going to the garage and utility room. The defect was corrected after I lodged a complaint, but shouldn't have been an issue in the first place. Minor things can seem like major items, doorbells put in areas that don't make sense (with the brick already adjusted for it by the time you see it), faucets installed improperly and other strange mistakes can be made. The builder is relying on his contractors to do it right and may only come by your house to check a couple of times a week.
3). The warranty given with your new home may only be as good as your builder. The builder may go out of business leaving you with no way to collect.
4). The 10 year structural warranty only covers "Major Structural Damage" which can be way more limited than you can believe. In most cases one of the criteria for the structural damage to be fixed is a condition that makes the home uninhabitable, unsafe, or unsanitary. All they are typically required to do in a new home warranty if it's not one of those three situations is to patch exterior cracks greater than 1/4" in size, and patch interior cracks greater than 1/8" in size. Look at a standard ruler and think about what cracks these sizes would appear like running down your walls.
5). Just because it's new doesn't mean it meets code or shouldn't have an inspection. Defects do happen with new homes. Don't rely on your builder to have caught sloppy workmanship on the part of the contractors. Buy a home without an inspection and you might find yourself doing costly repairs when you sell that home.
I've listed many homes that were bought directly by the client from the builder. When inspections come up anything from minor annoyances to major issues have shown up. It's a shame that those clients are left to clean up the builders mess.
How do you protect yourself when buying a brand new home?
Hire an agent that knows the market, the area of town you're building in (some areas have very difficult soils), and knows the builders and their reputations. There are hundreds of builders out there. You need to know how long they've been in business and whether they or a third party provide the warranties.
Always get a new home inspected by a highly qualified inspector. Yes, you may be wasting your money, but it's a lot better than getting blindsided when you go to sell your home. For more inspiration on this go to HomeGauges Report about defects found in new construction. It's an eye opening experience.
Yes, buying a brand new home can be a wonderful experience. In most cases you will love your new home for years and have few regrets (there will ALWAYS be some, like "why did they put that light switch here instead of there). With some precaution and the addition of a good real estate agent on your team your improving your odds greatly.