Texas Realty Blog

Gotcha Guide™: Top 5 Tips to Avoid the Bite of a Bad Property Management Agreement

NOTE: This article is part of the forthcoming book, the Gotcha Guide™ to Buying or Investing in Real Estate. Email us to join the mailing list for the release date. by DeeinAustin™

I'm a member of the Texas Association of REALTORS® (TAR) and normally like the forms they provide for consumer use. This post is based on my experience helping a friend negotiate a property management agreement provided by the Texas Association of REALTORS®.

Perhaps I was naive, but I was surprised at how much the standard language in the Texas Association of REALTORS® (TAR) property management agreement was biased in protecting the property manager's interests. I respect the job that Austin property managers do, but couldn't let my friend sign without striking half the clauses.

Before becoming a real estate broker, I was a landlord. I used the Texas Apartment Association (TAA) forms.  

The "standard" Texas property management agreement, "Residential Leasing and Property Management Agreement" (Form TAR-2201), was easily skewed by the property manager, who protected themselves while charging my friend additional costs that the contract allowed.

GOTCHA GUIDE™: TOP 5 TIPS TO SNAP BACK AT BAD PROPERTY MANAGEMENT AGREEMENTS

Annual Market Update: Austin Real Estate Winners and Losers 2007

by DeeinAustin™

Austin real estate was poise for a Super Bowl-style win in 2007, but the year proved to be humbling after the mortgage market fumble last summer.

SEE THE  8-YEAR AUSTIN REAL ESTATE MARKET PLAY-BY-PLAY (From 1999 to 2007)

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• Austin homes sales during the first few quarters in 2007 were selling in under 30-60 days. Buyer confidence was high.
• The Texas mortgage market tanked in June. The result: many buyers and investors who wanted loans simply could not get them.
• Loans for new construction, land, stated-income, sub-prime borrowers and low-down payments were at a stand-still for a few months Fall '07.

Spotlight: Builders Bet on Texas Lake Real Estate, Commit to 400-Acre Lake Houston Development

By DeeinAustin™

Fictional character J.R Ewing, from the popular 80s television drama, Dallas, was a betting man. What would the rich Texan do in today's housing market?

I think he'd take a peak at lake real estate in Texas, which are poised for a comeback in 2008. Investors and buyers know that know that the market for second homes, luxury estate, and lakefront estate homes in Texas are still in demand. 

We recently reported on Trinity River development in Dallas. Today's spotlight is on an upcoming 400-acre neighborhood development on the west side of Lake Houston.

A FEW DETAILS:

• This $90M-plus Parke Patterson Land Development project was announced a few weeks ago.
• Two Texas home builders have already committed. Next up is the retail developer.
• Estate lots will be 70-80' along 2000 feet of shoreline on West Lake Houston Parkway near Beltway 8.
• Trees and water amenities will be the central feature of the Houston lake front community.
• Townhouses and retail will be integrated.

ARE KIMBALL-HILL AND IMPERIAL HOMES BETTING ON TEXAS LAKE PROPERTIES IN 2008?

Gotcha Guide™: Agent Bonuses are Bunk! Offer Real Incentives

NOTE: This article is part of the forthcoming book, the Gotcha Guide™ to Buying or Investing in Real Estate. By DeeinAustin™

Now that the mortgage market isn't so hot, builders and home sellers are super hot-to-trot on buyer agent bonuses. They think agents will be more motivated to show their homes if offered extra monetary incentives.

Here's how a buyer agent incentive is cooked up:

INGREDIENTS & DIRECTIONS (TASTY BUYER AGENT BONUSES)

Step 1:Take 2 cups of a Seller with an over-priced home.

Step 2: Whip in a heaping mound of a Cooled Real Estate Market.

Step 3: Drizzle in 1/2 teaspoon of a Listing Agent willing to "try anything".

Step 4: Pile on $5000 worth of a Buyer Agent Bonus.

Finally: Sparingly sprinkle on Potential Home Buyers and Top with a Smart Buyer's Agent.

COOKING INSTRUCTIONS: Half-bake until the home is taken off the market, the seller lowers the price, or you offer a real incentive that meets the buyer's needs.

WHY BUYER AGENT BONUSES SOMETIMES WORK

Dallas Stats In: View the Latest Market Update

By DeeinAustin™

Some of the local boards haven't officially released their December 2007 market statistics, but the Dallas board is out in front with their final numbers. Below is the summary for the Dallas-Fort Worth-Arlington real estate market for December including data since 2005.

See the data charts below. They are viewed best in full screen mode.

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DECEMBER 2007 DALLAS-FORT WORTH MARKET SUMMARY

City Spotlight: McAllen-Mission Area Tops Growth Charts

By DeeinAustin™

McAllen, Texas has been the talk of the nation for a few years now.

The McAllen-Mission-Edinburg area in South Texas (past San Antonio) consistently tops national charts for highest expected job growth, appreciation and housing growth.

GROWTH COMPARISON CHART
This chart was created in Google Docs to show you how McAllen, Mission, and Edinburg compare to each other as well as two major cities in Central/South Texas.

TOP THINGS TO DO WHEN YOU VISIT MCALLEN, MISSION, OR EDINBURG TEXAS

Sticker Shock! Sluggish December Smacks You in the Face

By DeeinAustin™

I wonder if anyone uses the term, "sticker shock" anymore. Sticker shock was used backed in the 80s and 90s to describe the raw, gut reaction that consumers had when they saw an extremely high price tag on a item. The term wasn't used to describe real estate, but I think you should prepare for sticker shock on December market stats.

If I had to describe the face of a sticker shock victim, it would look like what you'd expect from someone who had their hand struck with a hammer or who jumped in the Alaskan waters sans speedo.

A quick peek at December stats show that it was a sour month for Texas real estate. Lack of consumer confidence, high oil prices, less investors, and the holidays caused Austin real estate sales to be down 27% from 2006. Houston, Dallas, and San Antonio didn't beat last year either.

[Wait for the resounding OUCH...]

Now that the shock is over, let's break this down.

THE TRUTH ABOUT TEXAS REAL ESTATE

Step Up to the Mic: Market Condition Reporters Wanted

By DeeinAustin™

What does American Idol, Next Great American Band, and Don't Forget the Lyrics all have in common?

Besides signaling the downfall of quality television and saving network tv from the writer's strike, they allow a select few to live out fantasies of having a national audience.

WE'RE LOOKING FOR HAMS

I'm excited to announce the Texas Realty Radio blogcast coming in 2008. This addition will compliment the Texas Realty Blog with more interactive content via audio and video podcasts. 

Even better, we're going to share the love...

KNOW A TEXAS MARKET EXPERT? THEY CAN BE A MARKET CONDITIONS REPORTER

If you know a savvy investor or sharp real estate expert in Greater Austin, Dallas/Fort Worth, San Antonio, or the Houston/Bay Area, have them contact us to become a Featured Market Reporter for Texas Realty Radio. Monthly Duties:

• Tell us what's happening in your area and how it may affect the rest of us.
• Provide a quick, written summary in no more than 300 words.
• Record a 30 to-60-second synopsis to be aired to our listeners nationwide via your computer or our voicemail line.
• Optional: Provide video updates or post updates more than once a month.

Note: We may have more than one reporter per area to provide several points of views.

YEAR-END MARKET REVIEWER SPOTS AVAIILABLE

Community Spotlight: Historic Gruene and New Braunfels

By DeeinAustin™

I took a trip to New Braunfels this past weekend. I'd been hearing about rapid growth in the area, so wanted to see for myself. New Braunfels and the Gruene (pronounced, "green") Historic District are our Destination Spotlight for this week.

New Braunfels,Texas is a sleepy town about 30 miles South of Austin on the way to San Antonio. The areas is a getaway destination for busy professionals in Central Texas as well as out of state visitors.

College students from San Marcos and Austin also visit during the summer for fun on the Guadalupe and Comal Rivers.

View the short photo tour below of new construction in the area. Click the photos to view a larger version.

"GRUENE GARDEN" LUXURY GARDEN VILLA COMMUNITY

Gotcha Guide™: Why Adjustable Rate Mortgages (ARMs) Don't Scare Me

NOTE: This article is part of the forthcoming book, the Gotcha Guide™ to Buying or Investing in Real Estate. Email us to join the mailing list for the release date. By DeeinAustin™ 

Remember Adjustable Rate Mortgages (ARMs)? Here's a tip. They're mortgage loans that gained popularity in 2003-2005. Now pick the best explanation of their fate from 2006-2007...

A) They're little demons that caused our foreclosure rate to increase to the highest in American history, prompting over 200 lenders close their doors.

B) Along with sub-prime loans, they were the downfall of the U.S. real estate and mortgage market, sending investors (i.e. speculators) and the secondary lending market running for the hills.

C) They aren't so bad if used wisely and may be converted to fixed-rate loans with minimal paperwork and about a $250-$500 fee.

D) All of the above.

My ANSWER: Is D... All of the above, with caveats. I do agree that ARMs are one of many reasons why the lending market is now in recovery. The truth is that lending guidelines became lax and borrowers weren't being responsible.

TOP 3 REASONS WHY ADJUSTABLE RATE MORTGAGES AREN'T THE BOOGEYMAN