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Lake Conroe Real Estate - A Day in the Life

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Follow me while I live, learn and earn in Lake Conroe
KELLER WILLIAMS REALTY CONROE/LAKE CONROE
        EMAIL ME        2200 North FM 3083 West, Conroe, TX 77304     Phone: (936) 525-3200     Fax: (936) 441-8001
Kathy King is a native Texan, born and raised in Houston. Now a resident and Realtor in the Lake Conroe area, she is at home in life and career.
As published in part in the Texas Realtor Focus:

In this time of strict lending requirements, more and more people are looking for alternative financing methods such as lease-purchase.  Although this is a viable alternative to traditional financing, it is important to remember that Realtors are licensed individuals but most are not attorneys.  The Texas Real Estate Commission, Texas Association of Realtors, and our local association, the Houston Association of Realtors, have promulgated contracts, addenda, notices and forms licensees use to cover the listing, lease, sale and/or purchase of property in our area.  Since there is no lease-purchase agreement form currently available that complies with The Real Estate License Act, anyone considering entering into this type of contract would have to retain an attorney to prepare the agreement.

Further, it would be a violation of The Real Estate License Act if a Realtor were to prepare such a document or fill in, substitute, or complete a lease-purchase agreement based in whole or in part upon a form prepared by an attorney for use by his client in a prior transaction. Such an act would constitute the unauthorized practice of law.

The requirements of the Texas Property Code provisions that apply to lease-purchase transactions are very complicated, and one should not enter into these agreements without talking with a real estate attorney. Careful compliance with the terms and requirements of these laws is essential.

Kathy King, Realtor
Keller Williams Realty

Why are interest rates so low, and how long will they remain so?  That's a good question.  Home buyers have gotten used to expecting mortgage interest rates for conventional 30-year loans to be around the 6% level or lower, sometimes much lower.  However, some of us remember a time in the 1980s when interest rates were as high as 18%.  Even in the 1990s and early 2000s rates hit over 10% and 8% respectively.

Now as we end one decade and begin a new, rates continue at their lowest in the past 40 years.  This is largely in part thanks to the Federal Reserve Bank's purchase of nearly all mortgage-backed securities issued by Fannie Mae and Freddie Mac in 2009.  This program is unprecedented, and has been extended through the end of March 2010.  It is being done in an effort to stimulate the economy by keeping mortgage rates as low as possible.  However, when the Fed stops buying these securities, rates are likely to increase, possibly quite abruptly.

Texas housing affordability indices indicate that homes are now more affordable than ever.  But when the economy recovers and the Fed stops purchasing mortgage-backed securities, a rise in rates is surely likely.

Kathy King, Realtor
Keller Williams Realty
Most people are aware there is a first time home buyer tax credit that has been in affect for months now.  However, I am surprised at the number of people who are not aware there is an additional home buyer tax credit for existing home owners.  For that reason, I am attaching information from the National Association of Realtors that outlines some of the eligibility requirements for both credits.  Of course, it is recommended that individuals who are considering filing for the credit seek the advise of a tax professional.
 
Please feel free to pass this information along to anyone you know that may be considering purchasing a home.  But they must act fast.  Both credits are due to expire April 30th of this year!
 
As always, I am here to assist in any way I can!

Not your typical real estate blog post, I know, but nonetheless a subject worthy of discussion.  I don't know statistically what time of year has the most home fires but the argument could be made that in winter, people are using space heaters, fire places etc.  So it might be a good idea to know one has the right kind of fire extinguisher for whatever their needs may be.

The Conroe Courier published the following information many months ago, and I had cut it out and put it on the fridge.  I needed to use the magnet holding the article but know the information is good to have, so thought I could forever enshrine it in my blog.  Here goes:

Letter Marking on Extinguishers
A:  Ordinary combustibles: Extinguishers for Class A fires are identified by a triangle containing the letter A.  If colored, the triangle is green.
B:  Flammable liquids:  Extinguishers for Class B fires are identified by a square containing the letter B.  If colored the square is red.
C:  Electrical equipment:  Extinguishers for Class C fires are identified by a circle containing the letter C.  If colored, the circle is blue.
D:  Combustible metals:  Extinguishers for Class D fires are identified by a star containing the letter D.  If colored, the star is yellow.

How to Use a Fire Extinguisher
Even though extinguishers come in a number of shapes and sizes, they all operate in a similar manner.  Here's an easy acronym for fire extinguisher use:
PASS - Pull, Aim, Squeeze and Sweep
Pull:  the pin at the top of the extinguisher that keeps the handle from being accidently pressed.
Aim:  the nozzle toward the base of the fire.
Stand:  approximately 8 feet away from the fire and squeeze the handle to discharge the extinguisher.  If you release the handle, the discharge will stop.
Sweep:  the nozzle back and forth at the base of the fire.  After the fire appears to be out, watch it carefully since it may re-ignite.

Now you are armed with just enough information to make you curious enough to go check the extinguishers in your home.  If you do not have any extinguishers, go to the store and pick some up.  They are fairly inexpensive and well worth the cost.

I share the above information only for those curiously interested.  I have no expertise in the area of fire fighting or fire extinguishers.  You should always read the label and operating instructions of any extinguisher to determine how it operates and if it is going to suit your needs.

Have a safe and great weekend.

I saw an article in RECON (Real Estate Center Online - Texas A&M) Where a study by Forbes.com stated "Two major Texas metros ranked among the top ten most overpriced home markets in the country, according to a study by Forbes.com.

San Antonio ranked sixth and Austin–Round Rock tenth. Additionally, Houston ranked 17th and Dallas 21st.

The study used data from California-based Altos Research to rank 40 metros according to the percentage of homes that had seen price reductions, the median number of days spent on the market and the ratio of median list price to the median absorbed prices. A five-year forefor the percentage change in the S&P–Case Shiller Home Price Index was also used."

Considering the Texas housing market is generally thought of as very economical, I thought this report was odd and deserving of further research.  I pulled the single family homes months of inventory for the greater Houston area and was surprised to see the figure of 5.8. 
(Months of Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity.)  This figure would be considered by most to be middle of the road between a buyer’s and seller’s market, and a good place to be at this point in time. 

So, how can an area with 5.8 months of inventory be overpriced?
  When a property is overpriced it will sit on the market longer and I would assume increase the available inventory, and subsequently increasing the months of inventory figure.  It doesn’t seem logical to me.  However, I am no statistician and don’t fully understand the methods used in this report.  All I know is that although Texas has been impacted by the current economic situation, we have not seen as much damage to our housing market as other areas of the country and are grateful for that.

Keep in mind that real estate markets are localized and there could be neighborhoods and/or areas that might have inventory numbers twice as high.  If you want to know what is going on in your area, please give me a call or send me an email.  I’d be happy to assist

 I am not using the greeting "Happy 4th of July", I am choosing to use the greeting "Happy Independence Day".  Sometimes it feels like our society is forgetting the meaning behind our national holidays.  Now more than ever, we need to remember the past, and the greatness with which this nation was founded.  We need to become aware of our rights and the rights (or lack thereof) and responsibilities of our elected officials.  Have you actually read the Declaration of Independence?  If not, here it is as published by the National Archives:

IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.--Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.
He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.
He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.
He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures.
He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.
He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil power.
He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:
For Quartering large bodies of armed troops among us:
For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:
For cutting off our Trade with all parts of the world:
For imposing Taxes on us without our Consent:
For depriving us in many cases, of the benefits of Trial by Jury:
For transporting us beyond Seas to be tried for pretended offences
For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies:
For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:
For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.
He has abdicated Government here, by declaring us out of his Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.
He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.
He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our Brittish brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.

Even if you were never a Scout, this motto can serve you well in life and home buying.  The first thing one should do when considering that they may purchase a home is get pre-approved by a lender.  If you don't have a lender, ask your Realtor.  We work with lenders all the time and will be happy to set you up with a name or two.

In today's market, sellers want to know before they accept a contract that the buyer has been approved for financing or if paying cash, can provide proof of funds.  Know the difference between getting pre-qualified and pre-approved.  Pre-qualified means that a lender has taken verbal account of a buyers finances but often has not checked credit or received any of the required documentation.  Getting pre-approved usually means that the lender has verified credit, employment, earnings and all other necessary information.

Sellers today want pre-approval letters.  It is truly unfortunate when a buyer finds the home of their dreams but within the couple of days it takes to contact a lender, supply documentation and get the letter, the seller has already accepted another contract!  Don't let this happen to you.

Be prepared!

Kathy King, Realtor
Keller Williams Realty

It's one of the toughest sells a Realtor has to negotiate.  Not between a buyer and seller but between the listing agent and client.  Most homeowners love their homes.  It's very personal to them.  They have accumulated great memories and/or have it updated just the way they like.  It's surely head and shoulders above the rest of the comparable homes, and should be priced accordingly...right?

The hard facts are that it doesn't matter what was paid for the home.  It doesn't matter how much the owner has put into upgrades.  It doesn't matter that last year the home could have sold for more.  The only thing that matters is what a buyer is willing to pay for the home NOW.

The National Association of Realtors states that a home priced at fair market value attracts 60% of available purchasers.  A home priced just 10% above fair market value attracts only 30%, and a home priced 15% above attracts a mere 10% of available purchasers.

On the flip side, a home priced 10% less than fair market value attracts 75% of available purchasers, and a home priced at 15% less will attract 90%.

If you have a home on the market and you are receiving little to no showing activity, speak to your Realtor.  Go back over the comparables in your area.  It may be that your home is priced above its fair market value.

Kathy King, Realtor
Keller Williams Realty

Although most of my business is conducted around Lake Conroe, I do still represent clients in Houston on a limited basis.  This past week has seen me driving into the city several times.  I prefer to take the back route when possible, through the yet undeveloped areas off 149 into Pinehurst then 249 on into Cypress and Houston.

I love the rolling hills (yes, for those of you not from around here we do have rolling hills) the goat farms, the cows and all the green pastures and trees, but I digress...spending time in Houston with all that entails reminds me how happy I am that I made the move.  Don't get me wrong, I love my birthplace, and am proud to say I am a native Houstonian.  It has just about anything you could want.  Good jobs, cutting edge medical, aerospace, fine dining and shopping but with all that comes the negative too.  When I was little, Houston was still a small city, not the major metropolis it is today.  No, I feel much more at home around the lake.  People seem to care less about what they have and more about living.  It was a culture shock at first but when I make that drive back home through the pastures and rolling hills I feel like I can breathe again!  Less really is more...for me.

Until we meet again...

Kathy King, Realtor
Keller Williams Realty

We have all heard that saying but I am looking out my window right now and can tell you for sure here at Lake Conroe the grass is green, the sky is blue, and the lake is cool and refreshing.  Looks like we are going to have another beautiful Texas day.

I was speaking on the phone with someone from Michigan who said "I didn't realize that Texas was such a big lake state".  I guess I shouldn't be surprised.  Many people around the country do not realize how much geographical diversity and recreation our great state has to offer.  A great site for people interested in Texas recreation is the Texas Parks & Wildlife Department.  Check it out.  Even native Texan's will probably learn something new.

Until next time...

Kathy King, Realtor
Keller Williams Lake Conroe
 
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