Preferred Properties of Texas

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First Time Homebuyers

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Red real estate sign near house outdoors on sunny day

Things First Time Homebuyers in Stephenville Texas need to be aware of:

Explain Connections
As an instance, a purchaser’s credit rating has a substantial effect on the interest rate they will be asked to payoff. By taking the opportunity to describe how different credit sources work in pulling these links to buyers credit rating and interest rates, you will have the ability to prevent a great deal of questions and confusion in the future.

Narrow Their Choices
As a broker, however, it is your job to guide your buyers to houses for sale in Stephenville that represent a fantastic compromise, checking as many boxes as you can while still giving a fantastic price. By narrowing down their options to two or three standout Stephenville Texas  houses, you’re help shorten their search period and possibly close your purchase earlier.

Know What They Could Afford
One more thing which some first-time buyers’ in Stephenville Texas battle with is knowing how their earnings relates to their purchasing power. As you don’t wish to show your buyer’s houses they can not afford, it is important to walk together throughout the pre-approval procedure before requesting them about what they desire in a house. This will lower the amount of houses which you will need to check through and assist in preventing significant disappointment in the future.

Use Digital Records
Asking your clients to fulfill you to sign up a pile of files does not do much in the means of simplifying the procedure. But if you’re able to send your clients all the essential documents digitally, then you provide them the liberty to check over the files in their period and guarantee they aren’t left with unnecessary mess. Besides, you may attach the files to an email and clarify the goal of the files in order for your buyers are not inundated with legal-ease.

Throughout the home-buying procedure, it can be simple for first-time buyers in Stephenville Texas to eliminate sight of their objective. In the middle of paperwork, evaluations and all the other crucial steps involved with the procedure, your buyers might become overwhelmed because they have never noticed how everything ends up in the long run. Thus, when the going gets rough, it is important to remind your clients which each step in the procedure has a goal. This can help promote them to keep moving until they eventually get to the end line.

Structural Trends of Regional Texas Rural Land Markets

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Various factors impact local land market prices and activity. The size of offered properties has a large influence on the marketing possibilities. Specifically, buyers simply cannot afford properties beyond a certain size. Similarly, they frequently have a particular sum dedicated to the land purchase. They need to find tracts large enough to use all of that dedicated investment. In this manner, most buyers find themselves considering properties within a range of sizes. In a sense then, land markets consist of a series of properties occupying different size-segments of the overall market. Consequently, buyers and sellers compete with similarly situated buyers and sellers.

This segmentation can lead to different dynamics in market trends, especially in challenging times as buyers respond differently to the situation. For example, markets for the largest properties frequently freeze up in times of turmoil. The limited number of buyers in this market anticipate future weakness. They withdraw from the market or make low offers. Sellers greet these offers with disdain, and transactions cease. Meanwhile, the smaller ends of the market involve a larger population of potential buyers, and, although prices may slip, transactions continue.

To continue reading click on link below:

https://www.recenter.tamu.edu/articles/technical-report/Structural-Trends-Regional-Texas-Rural-Land-Markets-2279

 

Is a Single Family Home Right For You?

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When you’re in the market for a new home, it’s a good idea to do a bit of research into your options. There’s an abundance of different types and styles of homesyou can purchase. But selecting the perfect home for your circumstances will require you to do some soul searching to pinpoint your needs and priorities.

For example, if you’re looking for a residence that requires little responsibility when it comes to maintenance, you may want to purchase a condominium. If you want a primary residence and investment property rolled into one, you should think about purchasing a duplex.

However, if you’re interested in a property that provides you with more space and privacy, a single-family home may be ideal for you. This article will walk you through everything you need to know about single-family homes so you can decide whether this housing option is appropriate for you.

What Is A Single-Family Home?

A single-family home is usually considered to be a house situated on its own plot of land. However, the legal definition of a single-family home is a bit more complex and can vary from state to state.

In some areas, it can be nearly any structure that’s utilized as a single dwelling. In others, the requirements are more specific.

Unlike a condo, a single-family home must have its own utilities, land and entrance from the street. It’s also classified as being distinct from a townhouse in that it doesn’t share any walls with neighboring dwellings. Because a single-family home has its own parcel of land, it’s built as a freestanding structure.

When Does The Legal Definition Matter?

Knowing the legal definition of a single-family home may seem trivial, but there are actually some circumstances in which it’s important. When it comes to financing, the classification of your house can make a significant difference. Whether or not your home is classified as single-family can affect not only the types of mortgages you qualify for but also the loan amount you’re able to borrow.

For example, you may decide that you want to obtain an FHA loan to take advantage of their lower credit score and down payment requirements. But the Federal Housing Administration has certain lending limits that are determined by the type of home you want to finance.

If the home you’re financing is in a low-cost area and classified as a duplex, you’d be able to borrow just over $400,000. However, if you find that your home is actually classified as a single-family home, you’d be unable to borrow more than $315,000.

What Are The Advantages Of Single-Family Homeownership?

Single-family homeownership is ideal for buyers looking for space. Since this type of dwelling is freestanding, it often has more square footage than apartment-style living. Furthermore, it typically possesses more supplementary space in the form of a basement, attic or garage, which can be ideal for storage.

Since single-family homes don’t share a wall with other dwellings, their residents also benefit from more privacy. These residents don’t have to worry about nosy or noisy next-door neighbors in the same way that condo dwellers do.

Another advantage of single-family homes is their architectural diversity. From stately Tudors to whimsical Victorians to sleek contemporary-style houses, there’s a wealth of styles to choose from, and buyers can enjoy the luxury of finding a home that speaks to their specific aesthetic tastes. And, with their own plot of land, single-family homeowners have the freedom to landscape and decorate however they see fit.

What Are The Disadvantages Of Single-Family Homeownership?

Yet, single-family homeownership is not without its disadvantages. This style of housing requires homeowners to be independent and take on all responsibility for maintaining their house and property. While owners of townhouses or condos pay dues for services that take care of most necessary upkeep, single-family homeowners must shoulder the cost and labor on their own.

The financial burden is also greater when purchasing this type of home. Since single-family homes are typically detached dwellings on independent plots, they’re usually more expensive. They may cause you to spend more on your down payment, homeowners insurance and property taxes.

And while condos and townhouses may come with enticing communal amenities, that’s not the case for single-family houses. If you want a gym or a pool, you’ll have to pay to install and maintain it yourself.

Is A Single-Family Home Right For You?

Although single-family homes are the most common type of housing on the market, they aren’t necessarily right for everyone. Couples with young children are often especially fond of this type of housing because single-family homes provide them with more space for their growing family and a yard for their kids to play in.

However, empty nesters may prefer to downsize, trading in their single-family home for a condo. Individuals without families may prefer apartment-style living, which can be cheaper, more convenient and provide greater social opportunities.

To decide whether a single-family home is right for you, you must consider your current priorities and future goals. Begin by thinking about what your needs are in relation to space, cost, responsibility and privacy.

Single-Family Home FAQs

If you’re deciding whether to purchase a single-family home, it’s important that you have a clear understanding of what this type of ownership entails. So, let’s go over some common questions.

Can Two Families Live In A Single-Family Home?

Two families can live in a single-family home provided that doing so isn’t specifically prohibited by local zoning ordinances or homeowners association rules. In some areas, zoning laws limit how many unrelated people are allowed to live under the same roof. However, in many places, it’s acceptable for two families to live together, as long as the single-family home isn’t altered in a way that changes the nature of the structure.

For example, some neighborhoods are zoned for single-family homes and therefore prohibit the presence of multi-unit dwellings. In such zones, two families may be prohibited from living together if a single-family home is converted into a duplex as a result.

Are There Legal Limits On What I Can Use My Single-Family Home For?

Just as zoning laws can restrict the type of properties allowed in a neighborhood, they can also limit how you use your single-family home. For instance, R1 zoning is a classification reserved for residential neighborhoods that only allow single-family homes.

While some zones allow for mixed-use, those that don’t prohibit homes in the area from being used for commercial purposes. Therefore, depending on how your neighborhood is zoned, there could be legal limits on whether you’re allowed to run a personal business out of your home.

If you plan to, it’s a good idea to check your city’s general plan to see how your neighborhood is zoned. If you find that there’s a problem, you can always apply for a variance to request permission to use your home as you desire. Just make sure you have your neighbors’ support ahead of time – without it, there’s a higher chance that your request will be denied.

I’m A Member Of An HOA. Do I Have To Follow Their Rules?

If your home is part of an HOA, you must follow their rules. When purchasing a home that’s part of an HOA, it’s crucial that you read their bylaws and Covenants, Conditions and Restrictions to find out what will be expected of you and your home.

If you don’t abide by the rules stipulated, there can be considerable financial consequences. The HOA can not only fine you but also put a lien on your house.

Summary: One Choice Among Many

A single-family home is one of the most popular types of homeownership. It’s a freestanding house on its own parcel of land. Homeowners often prefer this type of housing as it comes with increased space, privacy and architectural possibilities. However, single-family homes can be limiting as they’re usually more expensive and come with increased responsibilities.

Episode 1 of our Preferred Properties Real Estate Radio Show

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https://soundcloud.com/e-case-horton/preferred-properties-of-texas-real-estate-show

 

Are Home Warranties Worth the Cost?

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While homeowners insurance protects your home against unforeseen circumstances, a home warranty, which costs an average of $550 per year, is a convenience program that covers the normal wear and tear on the major mechanical and electrical systems in a house, says Art Chartrand, counsel and administrator of the National Home Service Contract Association. Your home’s heating, ventilating and air-conditioning systems, the water heater, sump pump and kitchen stove are some of the items covered by a home warranty.

Home warranties, also called home service contracts, are nothing new, but more real estate agents have recommended them in recent years as the housing market has been flooded with foreclosures and short sales — properties that were often neglected or poorly maintained.

“A home warranty is like an insurance policy that protects you after the home sale, but you have to pay close attention to what is and isn’t covered,” says Tony Martinez, a real estate agent with Re/Max North San Antonio in San Antonio, Texas. “Do your homework and research companies online, and make sure you document all of your communications with the warranty company and the service technicians they hire on your behalf.”

Read the fine print

Consumers sometimes make the erroneous assumption that a home warranty covers structural defects or insurable incidents normally included in homeowners insurance coverage, such as damage from natural disasters, burglary or fires, Chartrand says. Some also mistakenly believe that the policies function as emergency home service contracts, meaning the problem will be diagnosed and fixed within hours, which isn’t the case.

When you file a claim, your home warranty company chooses a local contractor that’s been vetted and sends it out to diagnose your problem for a set service fee, which you’re responsible for paying. If the contractor doesn’t find an issue or you disagree with the findings, you can ask the warranty company to send a different contractor out to give a second opinion, Chartrand says.

Getting a claim approved comes down to understanding what your policy does and does not cover. Most home warranties expire after a set time period and don’t cover every little thing in your home — think leaky faucets or peeling paint. That puts the onus on you to read your contract and ask questions, says Katherine Hutt, national spokeswoman for the Better Business Bureau.

You might opt for a certain level of coverage based on your home’s size, condition and age. Beware of scammers who might offer a half-price home warranty contract, then disappear when you try to file a claim, Chartrand says. Consumers should be cautious of such offers and research home warranty providers before choosing one.

Negotiate repairs in the home inspection

A home inspection won’t uncover every major problem, but it can lay the groundwork for getting the most from your home warranty.

What is Up With Mortgages

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The Big Story

According to Freddie Mac last Thursday, mortgage rates were the lowest ever found below the index. For now it is more interesting to check at the reason why while we will enter the details a bit later on.

In a word, this is being pushed by”uncertainty” If individuals are not certain about the management of the market in the long run, they have a tendency to invest in more powerful assets such as bonds and mortgage-backed securities (MBS) instead of the volatile stock exchange.

The returns on these bonds wind up being reduced because they do not have to be high to draw investors if people are purchasing MBS. They move lower Since mortgage rates are tied into such returns.

There are loads of reasons to become somewhat unsure about the market. New claims for unemployment are still raised north of 1 million while decreasing. It is likely to be a very long way back, although Folks are being rehired.

What’s more, the continued battles of the market have caused the Federal Reserve to depart short-term prices around zero and additional help the mortgage market by purchasing a great deal of service MBS. There aren’t any immediate plans.

A spike in cases, especially across West and the South, have made authorities rethink plans. The market will take to get going if workers in a variety of industries have to return home again.

The fantastic news, as we will see in a moment, is that home has been a bright place. Let us dig into the information!

News You Can Use
Econoday supplied analysis employed within this report.1 Let’s see exactly what happened!

Housing Market Index
The National Association of Home Builders’ housing market indicator went up 14 points in the month of July to emerge in at 72. This really is right back to where it had been before the virus struck.

The numbers are up across the board if it is in visitors of people or terms of sales.

Home Begins
Home starts in June were up 17.3percent to a seasonally adjusted annual rate of 1.186 million. It is still a bit below the 1.6 million rate it was around in the start of the calendar year, but it is an improvement. Single-family starts were up 17.2percent to 831,000 on a seasonally adjusted annual basis.

Meanwhile, licenses were up 2.1% complete in 1.241 million. This comprised an 11.8percent uptick in single-family licenses at 834,000 after accounting for seasonal adjustment.

FHFA House Price Index
Since this runs two months before the information this report deals although it was outside in July. COVID-19 was unquestionably a presence, together with costs alternating 0.3% and the yearly rate of price appreciation decreasing 0.5percent to 4.9 percent.

In a sign of just how much influence the virus needed, trades were roughly a third lower than usual. That sum in cost appreciation informs an excellent narrative on a foundation. It will be intriguing to see how country reopenings in June and July affect these amounts.

Existing Home Sales
Existing home sales were up 20.7percent in June, and it is a record profit. They settled at 4.72 million on a seasonally adjusted annualized basis. While being down 11.3percent as this time one year ago, that is a far cry from the 26.6percent year-to-year fall in May.

Co-op and condominium sales were up 29.4percent to 440,000, while the yearly rate for single-family houses was 4.28 million, up 19.9 percent.

At exactly the exact same period, costs were up 3.8percent over the month at $295,300up 3.5% over the year. Stock no doubt drove Section of the sales cost increase. It moved down from 4.3 weeks to 4 months in the current rate of sales.

New Home Sales
New home sales were up 13.8percent in June to emerge in a seasonally adjusted annual rate of 774,000. Supply is still somewhat thin but becoming better, with gone from 4.7 weeks May to 5.5 months in the current rate of sales in June. As a reminder, 6 weeks’ worth of distribution indicates a industry that is balanced.

Additionally, a residence in June’s cost was up $19,000 to come in at $339,200. There were revenue earnings in all four areas therefore it’ll be intriguing to see for that area particularly.

S&P CoreLogic Case-Shiller HPI
On a average, costs at the indicator are based Contrary to the purchase price Indicator set out from the FHFA. On a seasonally adjusted basis, prices were flat in May and up 0.4percent all around. That brings year-to-year cost earnings of 3.7%. It tends to run beneath the FHFA number.

Pending Home Sales Index
Pending home sales were up 16.6percent to 116.1. That is greater from before the virus’ effect. A June growth in home sales is a fantastic indication for present home sales in July.

Gross Domestic Product (GDP)
GDP was 32.9% complete from the initial estimate for the second quarter published in the end of July, while consumer spending dropped 34.6%.

It is included here because housing is a large driver of the market and slid 38.7percent in the initial quote, dragging down GDP by 1.76 percent. It is worth noting that the next quarter featured a few weeks which were influenced so it will be interesting to see where this heads moving.

MBA Mortgage Software
I am less interested in the amounts than the trends Because this report comes out on a monthly basis. Interest is shown by those trends .

Purchase software are from where they were a year 13, up 22 percent. On the facet that is refinance, it is a 47% growth. Low prices seem to be a main incentive for customers.

Mortgage Prices
They’ve never been improved, and this ought to be a incentive for the customers you serve and you as a realtor.

The average speed on a 30-year fixed mortgage has been 2.88% with 0.8 points paid in prices down 11 basis points over the week and falling by 3.6percent a year ago.

Considering shorter periods, the average speed on a 15-year fixed mortgage with 0.8 points paid fell 7 basis points to 2.44 percent. This is a fall from 3.05percent this past year right now.

Last, the average speed on a 5-year treasury-indexed, hybrid adjustable rate mortgage (ARM) using 0.4 points paid has been down 4 basis points to 2.9 percent, dipping from 3.36percent this past year.

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