Low-Cost Kitchen Updates

According to the National Kitchen & Bath Association, kitchen remodeling sales were up 36 percent in the third quarter of 2011 compared to the same time the year before.  It’s no wonder considering that the kitchen is one of the main focal points of the home.  It’s also what buyers look at closely when viewing your home for sale.  An updated kitchen may not only bring added value to you but also added value to your home’s value.  If you would like to spruce up your kitchen at little cost, here are some kitchen remodeling tips.

Replace Hardware

Replacing the hardware on your cabinets – handles, knobs and hinges – is a quick DIY fix that can ehance the look of your kitchen.  If the average kitchen is 200 square feet with 30 linear feet of cabinetry that equates to about 40 handles and knobs.  Knobs typically cost between $2 and $20 per handle or knob.  You could update your hardware between $80 and $800 using those numbers.

Replace the Faucet

This is a quick fix that has many types of options today.  You could choose between different heights, spouts, pullout features, and various finishes.  Faucets range in price with something to fit in every budget.

Add Lighting

Consider adding LED undercabinet lights that can have a dramatic effect in your kitchen.  You may also want to look at replacing older light fixtures with updated ones.  Light fixtures and undercabinet lighting will not break the bank and will definitely make a difference.

Install Organization

Buyers love functionality in today’s market.  Organization and storage in a kitchen will help you and impress buyers.  You can choose from over-the-door hooks and baskets, drawer organizers, stackable shelves for cabinets, etc.  Most of the items can be purchased for under $100.

Energy Saving Tips for DIY Home Energy Audit

With summer arriving soon, it’s a great time to conduct a do-it-yourself home energy audit to find any problems you may have and prioritize your energy efficient upgrades.

Locate Air Leaks

You should first make a list of any obvious air leaks in your home.  The potential energy savings from reducing drafts in a home may range from 5% to 30% per yea.  Check to see if air can flow through these places:

• Electrical outlets
• Switch plates
• Window frames
• Baseboards
• Weather stripping around doors
• Fireplace dampers
• Attic hatches

Inspect windows and doors for air leaks. See if you can rattle them, since movement means possible air leaks. If you can see daylight around a door or window frame, then the door or window leaks. You can usually seal these leaks by caulking or weather stripping them.  You may also wish to consider replacing your old windows and doors with newer, high-performance ones.

Check Insultation

When your house was built, the builder likely installed the amount of insulation recommended at that time. Given today’s energy prices, the level of insulation might be inadequate, especially if you have an older home. The heat loss through the ceilings and walls in your home could be substantial.

If the attic hatch is located above a conditioned space, check to see if it is at least as heavily insulated as the attic, is weather stripped, and closes tightly.

Inspect Heating/Cooling Equipment

You should inspect heating and cooling equipment annually, or as recommended by the manufacturer. If you have a forced-air furnace, check your filters and replace them as needed. Generally, you should change them about once every month or two.  You may also want to consider having a professional check and clean your equipment once a year.

If the unit is more than 15 years old, you should consider replacing your system with one of the newer, energy-efficient units. A new unit would greatly reduce your energy consumption.  Be sure to also check ductwork for dirt streaks, especially near seams. These indicate air leaks, and they should be sealed with a duct mastic.

Update Lighting

Energy for lighting accounts for about 10% of your electric bill. Examine the wattage size of the light bulbs in your house. You may have 100-watt (or larger) bulbs where 60 or 75 watts would do. You should also consider compact fluorescent lamps for areas where lights are on for hours at a time.

You can easily conduct a basic home energy audit yourself. With a simple walk-through, you can spot many problems in any type of home. For more information and tips, visit one of these websites:

U.S. Department of Energy

http://www.doe.gov/

U.S. Environmental Protection Agency (EPA)

http://www.epa.gov

According to Bankrate.com’s national survey of large lenders, mortgage rates dipped for a sixth week in a row, pushing the rate on  the most common type of mortgage below 4 percent for the first time in the  history of Bankrate’s survey.

The benchmark 30-year fixed-rate mortgage fell to 3.97 percent, compared to 4.02  percent the previous week.  A year ago the mortgage index was at 4.77 percent.

It is interesting to note that the first time Bankrate did the survey, Sept. 25, 1985, the 30-year fixed rate  was 12.31 percent. That’s the highest it has been in the survey’s history.

Forbes magazine recently unveiled its annual list of “America’s Fastest-Growing Cities,” and both Austin and Houston made the list.  Austin topped the it for the second year in a row while Houston ranked number four.

According to Forbes‘ Daniel Fisher, “The Lone Star State capitalized on low taxes and cheap real estate to draw in jobs from the rest of the country.”   Forbes pulled data from Moody’s Analytics on the 100 largest metropolitan areas.  Points were given for projected economic growth and subtracted for low median incomes and high unemployment rates. The result is a list of cities that not only growing but creating opportunities.

The projected economic growth rate for Austin from 2011-2016 is 6.1 percent.  That is more than double the national average as a whole.  The projected population growth rate of 2.8 percent is triple the national rate.

Houston places fourth and has been helped by its close proximity to booming Latin America economies and cheap real estate.  Houston has seen its MSA’s population climb 65% since 1990.  Moody’s projects  the city will add another 484,000 residents — the equivalent of Kansas City, Mo. — by 2016. Houston’s economy, powered by energy and health care, is expected to grow at 4.6% a year over the period.

Read more about America’s Fastest Growing Cities on Forbes’ website.

With all the changes in the industry the past few years, it’s important to understand what a home appraisal is and what it isn’t.  A home appraisal is a survey of a home by a professional for their opinion of the property market value.  It is usually ordered by a bank when a home is being approved for a loan for a home buyer.  It is the best assurance for the lender that they won’t lose money on the transaction by loaning more money to the home buyer than the home is actually worth.

An appraiser will create a detailed report that loooks at various items including the condition of the home, the neighborhood, what similar homes are selling for, and how quickly similar homes have sold.  If you are in an area where market conditions have negatively changed from foreclosures and short sales, the appraised value of your home could be affected.  For example, if there are 10 houses on your street and 4 of them are in foreclosure, you’re home value will be lower than you expect.  The two most common appraisals are the Sales Comparison Approach and the Cost Approach.

In the sales comparison approach, the appraiser compares the property with three or four similar homes that have sold in the area, often called comparables.The analysis considers specific components, such as lot size, square footage of finished and unfinished space, style and age of house, as well as other features such as garages and fireplaces.

The cost approach is used more for new property and is based on reproduction costs. The appraiser estimates the cost to replace the structure on the property if it were destroyed. The appraiser then looks at land value and depreciation to determine the property’s worth.

So what happens when a home appraisal comes in lower than the agreed to price on the contract?  It depends on what the buyer and seller choose to do.  The lender will generally only loan up to 80% of the appraisers opinion of the home’s value.  Sometimes a seller will lower their asking price to meet the home’s appraisal value.  Or the seller and buyer can negotiate and meet in the middle.  The buyer may also decide to put more money down to meet the criteria of the lender.  And of course, the final option is to dispute the appraisal.

It is important to note that an appraisal is NOT a home inspection!  Appraisers only look for major concerns, they do not examine the home’s full condition.  It is highly recommended to have a home inspection before purchasing any home.

Despite the ups and downs of the real estate market, housing still remains a good long-term investment for most home buyers. Homeownership offers tax benefits, builds long-term wealth, and provides security and shelter to its owners.

Here are some helpful homebuying tips:

1. Stay within your homebuying budget. Make sure you can really afford the home you plan on buying. The rule of thumb is that you can buy housing that runs about 2.5 times your annual salary, but you’ll need to take into account your debts and other obligations as well.

2. Get pre-qualified or pre-approved for a mortgage loan. Getting pre-approved (as opposed to pre-qualified) can save you time with your home search and show a seller you are serious when you submit an offer.

3. Determine how long you plan on staying put. Unless you plan on staying for at least a few years, buying may not be right for you at this point in your life. You’ll need to factor in the cost of buying when you consider the expense of buying a home - that includes your closing and lending costs.

4. Get professional help from a realtor. A buyer’s agent will have your best interests at heart and guide you through the entire homebuying process.

5. Hire a home inspector. An inspector will check the house from top to bottom to look for potential repairs and problems that may cost you money later.

Here’s why a TEXAS CAPITAL PROPERTIES Agent is right for you:

• We are knowledgeable of local neighborhoods, schools and market conditions.
• We utilize the latest technology to provide you with the latest listings and resources available.
• We are professional real estate agents specializing in buying, selling and leasing.
• We are connected to a wealth of reputable lenders and vendors to help you with your homebuying needs.

Contact us today for a FREE VIP Buyer Search of homes in Austin, TX or Houston, TX.

For a third week in a row, mortgage rates fell and are now at new record lows according to Bankrate.com’s national survey of large lenders.  The benchmark 30-year fixed-rate mortgage fell to 4.09 percent, compared to  4.1 percent the previous week.  A year ago, the mortgage index was 4.95  percent.

The benchmark 15-year fixed-rate mortgage fell to 3.28 percent from 3.32  percent the previous week.

If you are thinking about buying, it’s still a great time to find a property!  Contact Texas Capital Properties today!

If you are thinking about making an offer on a SHORT SALE, here is what you need to know.

A short sale occurs when a homeowner sells a property for less than what he or she owes to the lender, and does not have the funds to make up the difference at closing. It is also frequently referred to as a pre-foreclosure. Many more homeowners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values.

Homeowners often try to accomplish a short sale in order to avoid foreclosure. You are a good candidate to be a short sale buyer if:

1) You Are Willing to be Patient
Even after you and the seller come to agreement to purchase the short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. That can take up to 60 days, and even longer in some cases.

2) You Have Your Financing in Order
Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified. Offers with large down payments and that can close at any time are viewed more favorably than that of a buyer whose financing is less secure.

3) You Don't Have Any Contingencies
If you have a home to sell before you can close on the purchase of the short-sale property or if you are on a specific time line, a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you are a good candidate for a short sale, it can be a win-win for you and the seller. Usually a short sale will be in better condition than a foreclosure and you may purchase the property under market value.

Find Houston and Austin area short sales for sale.

March marked the 10th straight month for Houston homes sales to rise.  The average sales price also neared an all-time high.  That’s great news for the Houston-area real estate market!

According to the Houston Association of Realtors, sales of single-family homes in March 2012 totaled 4,996 in the region- up 7.8 percent compared to the same month a year earlier.  The average price for single-family homes was $227,270, up 5.7 percent year-over-year and the highest level for a March in Houston. It was just a little below the all-time high reached in June 2008.

Inventory of single-family homes reached 5.6 months.  That’s the lowest level since December 2008.  Active listings declined almost 18 percent from the prior year while pending listings were down 0.7 percent.

If you are in the market for a home around the Houston area, search Houston real estate listings here.