If you have a question about anything real estate related, have something to contribute, or just need some information... let me know. I'll do my best to get right back to you. If the answer/information is not private, I'll post it here on my blog for all to read and comment on. Chances are, others have similar questions and will appreciate your inquiry or information.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

I found a great article from Lowe's Home Improvement about getting your home reado to sell and tweaked it a bit. Most of the ideas are right-on and will help you prepare you home for sale. However, it's always wise to talk to a Real Estate Professional in your area about what the latest hot-button items are for Buyers in your area, and what specifically your home is most in need of. You don't want to waste money on listed items that are less important than others a professional may feel need addressing in your home and/or the current real estate environment in your local area. This list will give you a great place to start the home improvement/make-ready though:

Ideas To Help That Home Sell & What You'll Need To Make It Happen

Ideas to Help That Home Sell	What You'll Need
Do a little landscaping. Potential buyers will get their first impression of your home from its exterior. So stand outside and take a few moments to look at your home objectively. Could the grass use some cutting? Do the flowerbeds need a bit of TLC? Trimmed landscaping indicates a home that is well cared for throughout. -Replace mulch. -Pressure wash the house. -Edge sidewalks. -Remove vegetation between concrete and bricks. -Trim tree limbs that are near the roof. -Cut the grass. -Prune hedges. -Freshen flowerbeds. -Clear away dead trees and debris.	Tools: Extension Ladder, Pressure Washer. Mower, Edger, Gardening tools
Make your home more welcoming. Before homebuyers even come into your home, they'll be greeted by the front door. So think of it as another chance to make a good impression. -Install a new door. -Paint your front door. -Add some new house numbers. -Get a new lockset, kickplate and house number combination that coordinates with a new light fixture.	Materials: House Numbers, Kickplate, Lighting Fixtures, Paint, lockset
Refresh your deck. You want your outdoor space to be a place buyers can imagine enjoying during the summer with friends and family. Fuel their imaginations by rejuvenating the deck and furnishings. -Power wash deck clean. -Reseal the deck. -Use a wood lattice to enclose unsightly areas underneath. -Add a bright umbrella. -Replace cushions on furniture. -Decorate with potted plants and flowers. -Accent with a small fountain. -Install wind chimes to create a serene atmosphere buyers are sure to appreciate. -Use citronella candles to deter bugs.	Tools: Pressure Washer Materials: Citronella Candles, Deck Sealer, Fountain, Patio Umbrella, Wind Chimes, Wood Lattice, Pots & Flowers
Repair every imperfection. You probably no longer notice your home's little imperfections. Buyers, however, probably will. These small blemishes may stick out in the buyer's mind, so make sure to fix them. -Patch small cracks. -Repair drywall. -Replace broken tiles. -Replace old fixtures.	Tools: Squeegee or Grout Sponge, Waterproof Gloves Materials: Drywall Patching Plaster, Drywall Scraps for Patches, Drywall Tape, Faucet, Grout Sealant, Indoor Tile, Plumber's Putty, Silicon Caulk
Clean every spot. Even if your house hasn't always been kept immaculate, you can still make it look that way. Whether you clean yourself or hire a professional team, it can really help lead to a sale. -Scrub the bathroom and kitchen floors. -Steam clean rugs or replace if traffic patterns are worn-in. -Polish hardwood floors. -Wash windows inside and out.	Tools: Scrub Brush, Squeegee or Grout Sponge, Steam Cleaner, Waterproof Gloves Materials: Cleaning Agent, Floor Polish, Rags, Window Cleaner
Minimize the clutter. Unique things that make your place more "you" may actually distract buyers from envisioning their own personal touches. Remove them so they can imagine your space as their new home. -Remove all personal items and pictures and place personal items in storage. -Clear clutter from the floor by using a shoe cube organizer. -Store all children's toys. -Add wire shelving / closet shelving for additional storage space. -Add a fresh coat of paint inside closets to make everything look clean and organized. -Place a few cedar blocks in your closet for a great scent.	Materials: Cedar Blocks, Moving Boxes, Paint, Shelving
Improve energy efficiency. Making your home more efficient saves buyer's money over the long haul. Be sure to point out all the upgrades to buyers so your hard work doesn't go unnoticed. -Install a programmable thermostat. -Place weather-stripping on doors and windows. -Wrap pipes to conserve energy. -Insulate your water heater. -Replace furnace filters. -Replace old appliances with energy-efficient ones.	Materials: Filters, Programmable Thermostat, Water Heater Insulation, Weatherstripping
Give your favorite space a makeover. Chances are, you and your family spend the most time in the living room, but the last thing you want when selling is for the space to feel 'lived-in.' Refreshing the room with a few simple changes make the space more inviting to buyers while giving it a fresh feel. -Paint walls in neutral colors like linen, cream and beige. -Use thin drapes in a neutral color to accent. -Switch generic switches with painted or ceramic ones. -Boost the look of natural lighting with daylight bulbs. -Add a throw rug to give a touch of softness to the place.	Materials: Accent rugs, Paint, Switch Covers, Window Drapes
Create a camera-ready kitchen. Buyers want a kitchen that feels open and light. You'll want to repair any signs of wear and tear and replace any items that look dated or aren't working properly. -Paint walls with white or neutral paint that complements the cabinets. -Replace existing hardware with cabinet pulls and knobs for a new look. -Install new lighting under the cabinet for a dramatic effect. -Highlight the island or countertop with a simple fixture. -Replace vinyl blinds with sheer bamboo or linen blinds.	Materials: Blinds, Cabinet Pulls & Knobs, Indoor Lighting, Paint
Design a relaxing space. Bathrooms get a lot of use. You'll want to make yours look fresh to buyers by replacing outdated or overused fixtures and adding a few nice, crisp details. -Paint walls in soft, sedated colors like light blue, pale green or cream. -Install a new faucet, fixtures and towel bars. -Put in a medicine cabinet for added storage. -Buy new towels in a light or neutral color. -Replace the shower curtain and bathmat. A new shower curtain offers that "new car" smell. -Keep the room looking clutter-free by organizing bath accessories in a shower caddy. -Add a new bath mat.	Materials: Bath Mat, Faucet, Medicine Cabinet, Paint, Shower Curtains

Again, you should consult a Real Estate Professional before jumping into any major/expensive projects, but preparing a home to look it's best and appeal to a broad base of Buyers is a big part of getting it sold. Marketing, Pricing, Condition, and Location are the four critical factors in selling any home. The items listed above can help with the Condition and help maximize your Agent's Marketing efforts. Let me know if I can help with any questions about your area or preparing your home!

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

After a Lost Creek Ranch (LCR) resident asked me a good question about our HOA dues, she thanked me for my response and suggested that I post it for all to read. The resident bought a home in Lost Creek Ranch when the neighborhood was new and small (2001-2002). Today, there are over 1,100 homes in Lost Creek Ranch and no more new homes being built. So, her question was about HOA dues for LCR residents. Specifically, why they didn't go down as the neighborhood grew and more homes were built? It's a good question, as more homeowners mean more dues collected. One would think that this would mean that less was needed from each home. So HOA dues should have gone down as the neighborhood grew, right? Unfortunately, no... here is the explanation of why not, in case you were unaware of this information:

It was never the intention or design of the LCR long-term budget (designed by the community developer/builders) for dues to be reduced. In fact, for the first few years/phases of LCR, the dues were subsidized by the builders in the community. This was because there weren't enough homes for dues alone to pay for all of our wonderful amenities. From our parks, ponds, fountains, jogging trails, fencing, signage, management and more... their cost required subsidizing for the first few years. This kept our dues from being unbelievably high; the builders didn't want high dues to keep homeowners from buying here so they subsidized them... or helped pay the shortfall. This is very common in new neighborhoods; and as with most new communities, the long-term budget was designed so that the more homes the builders sold, the less they had to subsidize the HOA dues. They looked at it as an investment in the neighborhood. Eventually, the design allowed for the builders to completely stop subsidizing the HOA dues as they sold out of homes in the (then) self-sufficient community. At that time, there would be enough homeowners to pay for the amenities while paying around the same dues they always had (with no more help from the builders). That's exactly what happened a few years ago and where we are still today.

The good news: While most HOAs have dues increases every year or two (as the cost to maintain amenities goes up each year due to inflation), Lost Creek Ranch has only had one increase since taking ownership from the builders several years ago. This is mainly because our board sends most expenses out for bid (i.e. we got bids on maintaining our common landscaping and have saved thousands). More good news: LCR HOA dues remain low relative to the amazing amenities we have. Just compare LCR to some of the neighborhoods around Allen, Plano, McKinney and Frisco. This is why most consider LCR such a great place to live (even at $460/year). If you want to help make this community even better, or you want to know more about the LCR HOA, please feel free to contact me. And remember that we always need more volunteers (for committees like: pool, parks, yard/decoration, social, etc.). Serving as a volunteer here in Lost Creek Ranch has been a rewarding experience for me that I have enjoyed for many years now. So, even though dues aren't going down, I'm thankful for all of the amenities that we have and how (relatively) little we pay for them.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

In the current economic climate, I know we are all looking to save a little here and there. So, I have compiled a short list of restaurants that let KIDS EAT FREE (or for really cheap). This list is not totally inclusive, so if you have a favorite that I have not mentioned (or find one that is no longer valid) please let me know and I will add (or remove) them:

Cici’s 972-727-2424
Where: 204 N Greenville Ave., Allen
What: Kids 3 and under eat free
When: Every Day! 

Dickey’s Barbeque Pit 214-495-8877
Where: 405 Central Expressway South, Allen
What: Get a free kids meal (12 & under) with the purchase of an adult’s meal
When: Every Day! 

Jason’s Deli 972-727-3440
Where: 906 W. McDermott
What: Kids 10 & under eat free
When: Tuesdays from 4pm-10pm

Texas Land & Cattle 972-578-8707
Where: 3945 Central Expwy., Plano
What: Free kids meal (12 & under) with the purchase of an adult’s meal
When: Every Saturday 

GattiTown 214-618-9800
Where: 3251 Preston Rd., Frisco
What: Free kid’s buffet (10 & under) with the purchase of a regular adult’s buffet
When: Every Wednesday 

Joe’s Crab Shack 972-423-2800
Where: 3320 Central Expwy., Plano
What: $2 kids meals (12 & under)
When: Every Tuesday 

NOTE: It's always a good idea to call ahead and verify that these offers are still valid as they could end at any time. If you have more to add, please send me the Name of the place plus the Where, What & When by clicking "Email Me" under "Links" to the right of this page. The same goes if you find that one or more of these are no longer valid; please let us know. Thanks!

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

Well, the web traffic shows that lots of people are still interested in Sotherby Homes going under. With over 1,000 unique visitors between my two previous posts on Sotherby Homes, I decided it was time to create a place for readers to post questions, comments, updates, information (company contact info. anyone?) and issues as they relate to Sotherby Homes. Check back occasionally to see if anyone has answered your questions or posted any interesting updates. Obviously, they're are lots of people affected by this home builder's implosion. I'd love to see the earnest money returned to Buyers who were expecting Sotherby to build their dream home (I've talked to several buyers who are out thousands of dollars); and I'd love to see vendors who did work for Sotherby get paid (I've been contacted by more than one vendor who was out thousands of dollars). I don't know that either of these will ever happen, but I was interviewed by WFAA's Jonathan Betz about this very topic (Sotherby and Buyers out thousands). So, post away... I'm eager to hear what's going on and if anyone knows anything new. Note that comments have to be approved before they will show up (i.e. nothing vulger please); that generally happens within 24 hours.

You can check out the two previous posts I wrote on Sotherby Homes here:
http://www.realtown.com/ryancave/blog/developments/sotherbyhomesgone
http://www.realtown.com/ryancave/blog/developments/sotherbywarranty

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

This is an update to a previous post about Water Creek Big Screen on the Green found here.

If you enjoy classic movies and/or live music...
you'll love the latest FREE entertainment options in Allen, TX.

The Watters Creek development, at Bethany and Central/75, is showing Willy Wonka and the Chocolate Factory this Thursday (5/28/09) and E.T. The Extraterrestrial next week (6/4/09). Both will show for FREE on a "Big screen on the Green" at dusk (around 8pm). Future movies in their "Big Screen on the Green" series (every Thurs. at dusk) include Bee Movie (6/11/09) followed by Grease wrapping the series up on 6/18/09.

Then, there's the FREE music series entitled "L!VE on the Green" at Watters Creek. You can hear traditional Celtic and Bluegrass music from 5 Second Rule on Friday 5/29/09, and classic rock from the 60s/70s/80s from That 70's Band on Saturday 5/30/09. All shows in this series are presently set to begin at 6:30pm. Future Friday performers in their "L!VE on the Green" series include The Rob Holbet Group (6/5/09), Chris McGuire Group (6/12/09), and Brent Rozell and the Soulmates (6/19/09)... That 70's Band will play out the rest of the Saturdays in the series through 6/20/09.

So, come on out and shop some if you want, eat some if you please (there are some awesome retaurants/patios overlooking the green), but most importantly... have fun!

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

Even in rough real estate times, Keller Williams Realty continues to thrive (see article below). Why does this matter to you? Well, whether a potential buyer, seller, new Real Estate Agent, or even an existing Agent looking for something more... you probably want to work with a very successful real estate company. Keller Williams (KW) continues to be that, but it's so much more than just the stats and figures below... KW has training that's second to none and a "culture" that can hardly be described, much less duplicated. You've got to visit an office to understand what I'm talking about. Thankfully, most KW offices open their doors to more than just clients. Agents from all companies are generally welcome to stop-in and check out our training for free. Stop by and you'll see Agents helping Agents... even though many are technically "competitors" of one another, we share ideas and receive training from our top Agents; you'll see Agents helping their community... the KW "culture" has always kept our offices plugged into community service and philanthropic endeavors. Recently, we had our greatest community service triumph with thousands of agents from hundreds of offices across the U.S. and Canada participating in "Red Day" on May 14th.  So, in case it doesn't show, I'm proud to be a very successful Agent with, and (in no small part) because of, the very successful company that is Keller Williams Realty... affectionately known to those within simply as "KW". The article below is just further proof of what most KW Agents and Staff already knew...
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We are proud to announce that two of the most prestigious research and media organizations in our industry have confirmed what we believe is one of the most awesome trends in real estate: As our competitors slip backwards, Keller Williams Realty is gaining ground.

The annual RISMedia Power Broker Survey and the REAL Trends 500 Report, recently released, offer definitive proof of this trend.

This year, Keller Williams Realty had more brokerages — based on closed transactions and closed volume — on both lists than any other real estate franchise. We also outranked all others on the reports in terms of number of agents added and total closed transactions.

On RISMedia’s Power Broker Survey, Keller Williams Realty again had the largest majority on the list — accounting for 35 percent of all the brokerages listed — 57 percent higher than any other real estate company.

As for REAL Trends: 143 Keller Williams franchises made the cut. We represent 25 percent of the entire report.  Click here to see our official press release on these results.

Let there be no doubt, the tide is turning toward Keller Williams Realty.
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Like I said, I'm proud to be a part of such a great company. I love it here, and not because our corporate office tells us KW is great, but because of the "culture" and teh feeling I get when I go to work each day. I love my office and the friendships I've formed there, I love our training and sharing of ideas, I love giving back to our community with my friends/co-workers, and I love our regional and international events with KW Agents from all over sharing and growing together. I love the KW "culture"!

If you have questions about KW, or are thinking about getting your real estate license or moving brokerages, give me a call just to talk. No pressure, I promise... but no matter where you live or work (i.e. even if it's not even in Texas), I'd love to share why KW Agents are so passionate about helping Buyers, Sellers, our communities, and even other Agents.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

Free money, housing grants, down-payment assistance... call it what you will, but the U.S. government's recent announcement of an $8,000 tax credit available to virtually any first-time home buyer (or anyone who hasn't owned a home in the past three years) has sparked more buyers to start shopping for homes. I've run across several people recently who say their reason for looking is the $8,000 credit that expires 12/1/09. The only trouble has been getting your $8,000 tax credit up-front so you can use it for your purchase. As it stands, the money is only available after you purchase your home and file your taxes (which means early 2010 for most current buyers). This is great for those who can borrow the money from savings then repay it after filing their taxes. But what about those who don't already have the cash to drop on a down-payment?

Besides my solution in the article linked above, there wasn't a great answer until Tuesday. HUD Secretary Shaun Donovan announced yesterday that home buyers will be able to use the $8,000 first-time home buyer tax credit for down payments on FHA loans via bridge loans. Basically, Donovan said that FHA is going to allow those entities like approved lenders, nonprofits, state and local government agencies to issue short-term bridge loans which buyers can use for down-payments. Buyers would repay the loans after getting their tax refunds.

More details are said to be forthcoming, and there are still snags to work out (like the fact that the IRS won't allow your refund/tax credit to be designated to be sent to anyone besides yourself). However, a lot of people (including the National Association of REALTORS) are working on the IRS/refund issue and say they should have this worked out soon. Once it is, the $8,000 tax credit will become a true form of down-payment assistance, and not just a reward post-closing. This should further stimulate home buyers.

Seller-funded down-payment assistance programs were recently disallowed by the FHA as it was found that the assistance amount was usually being rolled into the cost of the home (and thus the sales price raised). The Buyers were instantly upside-down and default rates on these homes were exceptionally high. This shouldn't be a problem with the $8,000 tax credit as it won't cost the sellers anything; the money will be coming from Uncle Sam... and, if government spending isn't reeled in, be repaid by our children and grandchildren... but that's another article entirely. So go out and buy a home! Your $8,000 awaits!

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

As our property tax appraisals arrive in the mail again this year, many people are shocked to find that their taxable county appraised value stayed about where it did last year or even went up! They're shocked because many people assume that all property values have been falling, especially due to the "bad" real estate market we all hear about on the news. However, most of our local real estate market isn't nearly as bad as the media would have you believe. The media tends to report broadly, on entire counties or states (they just don't have time to report on every single neighborhood). Real estate is WAY to local for these broad reports to mean much in regards to your home (just be sure contact a local real estate professional to get the facts about your home/neighborhood). So, many people who were expecting a lower property tax appraisal aren't getting one simply because their property values haven't fallen. However, there are certainly tax appraisals that are too high...

The good news: If you feel that your property tax appraisal is higher than your actual property value, in Texas, you can protest it. It can't just be a feeling though, you're usually going to need proof. If you're not sure about your appraisal and/or your property value, or you need to get that proof, ask a local real estate professional to help. We can help explain and/or pull some comparable sales data for you. If this data indicates that the appraisal is indeed high, the you can request an informal review and/or schedule a protest hearing with the country appraisal district. In either case, be sure to take the comparative sales data with you and any other supporting documents (like contracts, appraisals, loan docs, repair estimates and/or pictures). Many people try "cherry picking" the lowest priced sales around their home, but the appraisal district generally looks to see if you have done this and discards such sales and/or points to comparable homes that sold for more. Oh, and even on homes recently purchased, what you paid doesn't determine the tax appraised value. This value is set by what multiple properties like yours appeared (to the appraisal district) to be selling for around Jan 1, 2009. So, just because you got a great deal and bought a property below market or tax value, doesn't mean that they'll adjust downwards... though you can still try to protest it...

The bad news: Your time to file a protest is short. In Collin County, the Collin Central Appraisal District protest deadline is June 1, 2009. You can start with an informal review if you would like (which can get your appraisal lowered). If it is not lowered, and you still disagree with it, you can file a protest for a formal hearing. To request an informal review or ask questions, call 469-742-9200 (metro) or 866-467-1110; or you can visit 250 W. Eldorado Pkwy in McKinney. Hours are M-F 8am-5pm and Thursdays in May 8am-7pm. However, note that the typical wait time is 45 minutes and wait time increases the closer we get to the protest deadline (so don't delay). To file a protest for a formal hearing, check the back of your proptery tax appraisal ("2009 Notice of Appraised Value") you got in the mail; the protest form is printed on the back of the appraisal.

Oh, and you might want to Click here for a short, related article about property tax appraisals. It talks about how they affect to the sales price when you buy or sell.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

I just got this relatively good news from the Collin County Association of REALTORS (CCAR). It makes me wonder: Has the economy finally bottomed out? Have the number of foreclosures finally stabilized and is the market finally absorbing them? Is the real estate market finally taking steps towards appreciation sometime in the next year or two? Feel free to post your comments below...
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 Collin County Foreclosures Down Over Same Time Last Year
For the first time in several years, the number of new residential foreclosures is down in Collin County and surrounding areas. The first quarter of 2009 showed an 11.9 decrease in the number of new foreclosures over the same time last year, reports CCAR. In addition, more than one-fourth of all closed sales in the first quarter were foreclosure listings - up 19 percent from the same time last year.

"If we continue to see a decrease in new foreclosure listings while foreclosure sales are brisk, the market will eventually absorb most of those listings. This is an important component to a return to a more normal market," says Steve Haid, CCAR member services director.
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I guess only time will tell, but this is certainly one of a few positive signs recently (i.e. let's hope the Dow Jones keeps stable/increasing too).

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

I got some good stuff from Chris McLaughlin (shortsalesriches.com) on what to avoid with short sales (see below). If you're wondering what a short sale is, just Google it. You'll find more than you care to know. But basically, it's when a homeowner is trying to sell their home (often in an attempt to avoid foreclosure) and the net proceeds from the sale will not be enough to pay-off their mortgage (i.e. there's a deficit). So, they are going to ask their mortgage bank's permission to sell the home "short" of what's owed. Why would their bank agree to this? Because it's often cheaper for them to take a loss on a short sale rather than risk a bigger one in foreclosure. So, they might sell it a little below market... if any/all offers are too far below market, the bank will just make plans to foreclose. The upside of a short sale for a Seller is that they typically get out without a foreclosure on their credit. Also, the banks typically agree not to come after sellers for damages/deficiencies if you have a good agent helping (i.e. when you get foreclosed on, the bank can still sue for their loss). The upside for a Buyer is that they can sometimes get a good deal on a property (i.e. buy it a little below market). However, the downside for everyone is the extended time it takes to get a short sale approved (often weeks or months). So, when dealing with a short sale, avoid these:
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Badgering. Let's face it, nobody likes to be badgered. Yes, you might be excited by submitting your first short sale offer but resist the urge to call too often or otherwise badger overworked staff. Maintain regular contact and put a system into place. [this refers to you calling your agent, your agent calling the Seller's agent, or the Seller's agent calling the bank. Patience is key in a short sale]

How Low Can You Go---Not that Low! While lowball offers are expected, don't waste everyone's time by submitting something excessively below the current market value. Keep it realistic and plan to justify the reasons why you think the offer is fair.

Requesting Repairs or Refunds. Although there are exceptions to every rule, short sales are sold 'as-is'. The price should reflect needed repairs - including time and labor. Don't expect the bank, lender or current homeowner to fix or repair anything. Problems that arise after the sale are also your problem so be sure to add in a bit of wiggle room especially if the homeowner plans to occupy the house for some time during or after the sale.

Bad Credit. Yes, they will look. Get your own finances in order and make a point of presenting them in the best light possible.

Threats. Threatening to walk away from a deal, sue or other tactics rarely result in anything more than frustration for everyone involved. Unless a gross degree of misconduct was perpetuate against you related to a federal issues such as discrimination or other similar point, regular day to day mishaps are part of learning how to play the game. It's essential to have a tried and true system in place that maximizes profit while minimizing time.

Homeowners with Assets. Homeowners have to demonstrate their need an inability to pay before a lender will agree to take a major loss. If your homeowner has other assets that could be turned into cash or compensate the lender for a loss then there is a high likelihood your offer will be rejected. Do your homework before blaming the bank - make sure the deal is win-win for all involved or you will likely just waste everyone's time.
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I'll add to that list:

Vacant FHA homes. Homeowners that financed their home with an FHA loan cannot move-out before the short sale is approved or it is automatically disqualified from a short sale.

Being in a hurry. If you have a lease that's expiring in the next few months, or you have another reason why you might have deadlines in your home buying process, then short sales aren't for you. I've seen a short sale approved in a couple of weeks, but more often it's a month or more. And that's just to get the approval... it then generally takes another 30 days or so to close. However, you might not get the approval, or the home might foreclose while you're waiting and, after waiting a month or two, you're back at square one looking for another home.

I hope that info. helps... let me know if you have short sale questions I can help answer.

I saw this press release for a free, fun time in the new Watters Creek development and thought it should be shared:

Great Movies Under the Stars

Come Hungry for a Delicious Range of Dining Options

While the north Texas real estate market has remained fairly strong, many other parts of the country aren't fairing as well. The number of real estate agents is down both locally and nationally, mostly due to the amount of business being down (and the business that is out there being tougher to handle). The National Association of REALTORS lost 140,000 members (a decline of 10.5%) between December 2007 and December 2008. Most active agents believe that this was mainly part-time and/or under-trained agents effected. However, there are some previously successful agents who just aren't able to shift their business strategy with the changes in the market. The latest statistics from industry analyst REAL Trends shows that the losses, at least among the largest real estate franchises in the U.S., aren't distributed equally among companies. According to the 2008 REAL Trends 500 report, there has been a major shift among the rankings of the top players. After just moving into 4th place within the last few years, Keller Williams Realty has jumped again (even in tough times) to become the 3rd largest real estate franchise in the U.S.:

The Top-Ranked Real Estate Franchises by Agent Count

What this shows is that, while the housing market is (and real estate agents are) struggling, some companies' models are struggling more than others. While the top two are operated as separate companies, for example, they are both owned by the same parent company: Realogy. I had heard that they were pretty deep in debt, but I had no idea... If you Google "companies that might not survive 2009" you'll find articles like this about the parent company:
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Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, [Century 21] , ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.
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I don't know that they'll really go under, in fact Realogy responded to this article saying that much of their debt isn't due until 2013 (not denying the high debt load though). The fear is, agent commission splits at these brokerages, their royalty fees, office fees, etc. may have to be adjusted to cope with the debt. This could chase away more of their agents (a primary source of income) and that certainly won't help with the debt problem. The future remains to be seen though. Keller Williams Realty (KW), on the other hand, has no parent company and they carry zero debt (wow!). KW is based out of Austin Texas, they just started franchising less than 20 years ago (compared to Coldwell Banker who has been around since the early 1900s), and KW has always had an "Agent First" mentality. Besides offering some of the industry's best training and technology, they operate each of their franchise offices with an open books policy so that everyone can see what the owners make, what other agents make, and what's spent on everything from salaries to coffee supplies. This is almost unheard of and, when combined with the company's "profit sharing plan", it helps create an electric environment KW calls their "Culture." The "Culture" at most Keller Williams offices is indescribable. Agents are taught an abundance mentality as they help one another to succeed by sharing knowledge and training (rather than hording information and business "secrets" as in the scarcity environment at most traditional brokerages). You have to ask yourself: How has such a relatively young, non-traditional real estate company come so far so fast? Obviously, even in tough times, Keller Williams may not be perfect but they must be doing something right.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

Lets start with the second half of the title. The "First Time Homebuyer Tax Credit" is basically an $8,000 gift from the government; but it's not just for those who have never owned a home before. Those who haven't owned a home for the three years prior to buying another will also qualify. So, if you last owned a home in June of 2006, you could buy one in July of this year and still get $8,000 (or 10% of the purchase price, whichever is less) back on your taxes. So, buying any real estate as your primary residence for $80,000 or above (before the plan expires on Dec. 1st) should make you eligible for the $8,000. Just be sure to check on all the details of qualification with your CPA. Here are a few scenarios to help explain the "Tax Credit":

Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

So how does this "Tax Credit" help you with a downpayment (since you don't get the money until AFTER you've bought the home and filed your taxes)? There are some states looking into offering short-term loans (i.e. a loan until you get your tax credit) and some people are going to employers or other sources to ask for this help. However, this may prove difficult as downpayment monies are typically not allowed to be "borrowed" funds. So, I had an idea involving removing all of your payroll witholding. This would allow you to save this money each month towards your downpayment. Then, when the taxes are due, up to $8,000 would be canceled out (or able to be repaid) by the tax credit. Check with your CPA for advice before adjusting your payroll witholding, but this may be just the thing to help save that downpayment this year. Just know that if you don't buy a home before Dec. 1 (and meet all other criteria of the First Time Homebuyer Tax Credit) you'll still owe all of those taxes to Uncle Sam. Rates are low and who doesn't want an extra $8,000? So, let's get house hunting!

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

The Village at Allen continues to improve with new openings all the time. If you haven't visited the dog park or the shops and restaurants that are already open, you're missing out. Plus, there are lots more store openings on the horizon (some just a few days away). Of course, all opening dates are subject to change...

VILLAGE AT ALLEN - NEW & UPCOMING OPENINGS…

- Opening March 7th: Petsmart

- Opening March 8th: Super Target  (boy, is my wife excited about this one)

OPENING IN...

- March: EyeMasters, Cheddar's Casual Cafe, Scottrade, Saxby's Coffee

- April: Ooo La La, The Kid Salon, Radio Shack

- May: Dodie's Place Sports Cafe, Tacone Flavor Grill 

- June: Movie Trading Company, Yogilicious, Hemispheres, James Avery, Ross - Dress for Less

 RECENTLY OPENED:

Anderson's Furniture, Villa Nails & Spa, GameStop, Sleep Experts and more.

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So get out there and shop... together we can spend our way to a better economy.  :-)

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

This is an update to my previous post here:
http://www.realtown.com/ryancave/blog/developments/sotherbyhomesgone

I continue to hear that Shaddock corp. is finishing up homes started by Sotherby. So, there may be hope yet for those with homes started by Sotherby. Please comment below to let us know if you have a home in-process with Sotherby/Shaddock. Also, I heard you can still get warranty work done on Sotherby homes if it's an emergency; see below (I found this on Frisco-Online.com and, at almost the exact same time, it was submitted as a coment by David Margulies on the previous post):
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Sotherby Homes is in the process of re-establishing a procedure for warranty performance as per the HOME of Texas Limited Warranty issued to homeowners at such time that a home was closed from Sotherby to a homeowner. At this time, Sotherby is accepting calls, e-mails and faxes for warranty issues. It is currently acting on emergency items, such as plumbing leaks, roof leaks, and heating and cooling issues. In the near future, Sotherby hopes to establish and phase in procedures for warranty performance for all other HOME of Texas Limited Warranty repair requests.

For emergency warranty performance or other questions about warranty issues, please call (972) 985-7955, fax (972) 526-5645 or email customerservice@sotherby.com.

The company will place calls to contact individual customers to update them on the status of their homes. Sothereby will make every attempt to complete the construction of all sold homes.

If a current homeowner receives any notices or threats concerning liens they should contact our office at (972) 526-5645 or fax to (972) 526-5645. It is our intent to compile and remedy this issue very soon. Sotherby regrets any inconvenience that this situation is causing its valued customers and is doing everything it can to resolve the situation in a timely manner.
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However, the same forum also says that Sotherby is down to just three employees. So, I imagine that response times are slow at best. I wish all the best to those affected by Sotherby's troubles (employees, homeowners, subcontractors, homeowners-to-be, etc.). I hope Sotherby is able to right the ship and take care of their customers (both past and present) in the process.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

So you have a kid or two in college (or headed there soon). Chances are that you're going to be paying for housing of some sort, tuition, books, meals, clothes, you name it... it's not cheap. Here are some ideas that may allow you to save some money, make some money, and/or add some write-offs to your tax bill all while investing in real estate. Let me preface these by saying that I'm not a CPA or a lawyer and I don't give tax or legal advice. These aren't even my ideas, but they sounded good so I thought I'd share. Please consult your own CPA, lawyer and/or tax advisor before making any moves.:

1. Get in-state tuition prices! If you have a son or daughter headed to a university out of state, investigate the residency requirements for the state (and university) they're headed to. Sometimes just buying an investment property a few months ahead of time may allow you to pay in-state tuition rates. Why would you want an investment property in another state? Keep reading...
2. Get some rental income! Besides housing for your own kid, renting a bedroom or two to friends can help defer the cost of the home and have everyone paying amounts closer to dorm or, at least, apartment rent. Afraid the roomies are not responsible enough to pay their rent? Get their Mom & Dad to co-sign their room lease (yes, you put the room lease in writing with shared use of, and responsibility for, the common areas). The parents are often paying for the housing anyway. If they won't co-sign, this may be a red-flag for this potential roomie. You might also check credit and, as with any rental, get a month's rent as a deposit.
3. Stop paying your kids expenses! Instead, pay your property manager a salary. While tuition is tax deductible, books, food, clothes, housing, and other expenses are usually not. However, if you pay your son or daughter a reasonable salary for keeping the house in good shape, making sure rent checks are mailed, etc. you can deduct this salary as a business expense associated with your rental property. Then, let them pay their bills from their salary!
4. Take business trips! Instead of visiting your kid at college, go visit your property and property manager. Instead of paying for kids to come home for the weekend to visit Mom & Dad, pay for your property manager to come meet with the boss(es). Chances are you'll talk about the property anyway, right? This may make part or all of the trip tax deductible. How much may depend on how much business you talk (and document). Just expect your property manager to always arrive bearing laundry to wash and asking for a raise...

There you have just a few ideas on how investing in real estate can be affordable, or even profitable, for those with kids in college. I have heard other ideas too, but this will get you started. Find a good real estate agent to help find a good property in a good location and the property may eventually become a profit center as your kid moves out (let's hope because they graduate) and others move in. At that point, you can hire a professional property management company to oversee the property if you choose... keeping the Mom & Dad co-sign, credit check and deposit rules in effect if you want. Or, after 4-5 years of college, you may find that you have the equity to sell and make a little money on the house... and that's not counting the tax breaks and money making/saving ideas above.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

An update to my earlier post here:
http://www.realtown.com/ryancave/blog/developments/bennigansclosing/

Many have asked me what they can do with their gift cards to Bennigan's and/or Steak & Ale. My suggestions: Use as a shoe horn, hole punch and make into a necklace charm, frame as a memento to corporate mismanagement, etc. Ok, so this may not be the answer you were looking for. Unfortunately, best I can tell, if you have a Gift Card for Bennigan's or Steak & Ale, they are probably worthless. Technically, I've heard that you are a creditor and could file a claim against their bankruptcy (I heard you could file a claim at www.uscourts.gov. That you could download the bankruptcy form and submit form B-10). However, you'd have to get in like with their other creditors and chances of you ever actually getting anything are slim to none (and the trouble probably isn't worth what you might recoup). This is further evidence why (in my opinion) gift cards are simply not good gifts... Even if the recipient LOVES the store/issuer, they may not get to use it. If a store files bankruptcy/closes, they're probably out of luck. Though this is rare, especially with "major" companies like the one that owns Bennigan's and Steak & Ale, this shows you that it can happen to any major corporation.

While we're on the topic, you might also want to be careful of "expiring" or "diminishing" gift cards. Many places issue gift cards that "expire" after a certain length of time (often after one year) or diminish in value as "maintenance fees" are changed every few months. I think this is horrible since the store already collected the cash (from when the card was purchased) and the company is collecting interest on the money until you use the card. A perfect example: a friend gave me a gift card to Harley Davidson in Allen Texas a few years ago (I think it was $50). I used part of it almost immediately (around $25), but when I returned the next time I wanted to use the balance, I was told that it had "expired" and wasn't worth anything. So, basically, they kept around $25 and never had to make good on it. I felt like they "stole" from me (or from my friend who had paid for and given me the card). But there it was in fine print on the back of the card... it expired one year from issue. This is why I don't give gift cards from Harley Davidson (or any other merchant that has gift cards that "expire" ). If you don't know what to buy me (my birthday was just this past week), just give me the universal gift card that never expires... cash.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

This one is fresh out of the rumor mill... However, I have a semi-confirmed report that Sotherby Homes has gone out of business. I had heard that they were in trouble, but now it looks like another BIG builder has gone under. At the time of this posting, their website (http://www.sotherby.com/) was down (citing "technical difficulties")... but according to one source, they are not declaring bankruptcy and are trying to find ways to finish all homes currently under construction. If you have a contract with Sotherby Homes, my advice is DO NOT PANIC, but rather contact your Real Estate Agent and/or Sotherby Sales Agent to get a status on your home. According to one source they will be closing their doors on Monday, but this may just be for any/all new business as, again, another source told me that they were not declaring bankruptcy at this time and were trying to finish homes in progress (it's a long story, but either through Shaddock Homes, Shaddock Financial and/or the banks that have already loaned on the homes in progress).  At this time that is all the information that I have and will pass on any additional information as I receive it. If you have more info. please feel free to post a comment below.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

The only thing the "Experts" can all agree on, when it comes to housing prices (and interest rates), is that NOBODY can predict the immediate future but they will eventually go up. You see, nobody really knows how low interest rates or prices will go, or when they will start upwards again. All that is known for sure is that Interest rates are at their lowest point in several decades (with little room to fall much further)... and housing prices, at least in Texas, weren't ever skyrocketing (they're some of the most affordable in the nation) and our local economy is still strong, so our prices have been mostly flat and there is no reason to expect them to tumble. So, the important question is, what are you waiting for? Prices and interest rates are very low (and you're supposed to "Buy Low" so that one day you can "Sell High", right?). The biggest mistake most people make in situations like this (whether the housing market or the stock market) is waiting for the "bottom" before they buy. Unfortunately, the only time the bottom can be clearly identified is after things have started upwards again (i.e. interest rates, housing prices, the stock market). At that point, much of the savings have been missed... this is when people mistakenly "Buy High". Keep these 30-year (fixed) Principal and Interest (P&I)* mortgage payments in mind each time you catch yourself thinking that you might should wait to see if we've "hit bottom" for prices and/or interest rates:

• You buy a $200,000 home at 5.5% and your monthly P&I payment is just $1,135.58
• If prices remain stable, but interest rates rise just 1%, that same $200,000 home (at 6.5%) is $1,264.14 (the same home costs you $128.56 more per month).
• If prices take a BIG tumble (for Texas) and fall 5%, but interest rates remain stable, the house is $190,000, which, at 5.5% is $1,078.80 (the $10,000 savings only saves you $56.78 per month).
• Worst case, you wait 'till you're 100% sure that interest rates and prices had hit bottom before you buy (remember, the world only knows they had bottomed out because they're going up again) and so you jump on the home for $210,000 at 6.5% and your monthly P&I payment is $1,327.34. The same home costs you almost $200 more per month!

So, the moral of the story is: Housing is on sale right now! Both pricing and mortgage interest rates are LOW and are expected to increase again (and remember, it's "Buy Low, Sell High"). Could this sale get slightly better? Perhaps... but experts agree that the sale will certainly come to an end, so don't wait until it's all over to go shopping or you'll simply get much less for your money. And ultimately, who cares if a sale gets "slightly" better, as long as you get in before the sale goes away... that's when housing prices have rebounded and interest rates are on the rise. Then you'll be sitting pretty in a home with rising equity and a low interest mortgage. Heck, you might be able to get EVEN MORE when you sell if your low interest mortgage is assumable**... but that's another article entirely.

*Note that P&I payments don't include property taxes or homeowners insurance. Your total house payment is known by the initials PITI (principal, interest, taxes and insurance). Two of those items are tax deductible and will usually save you some money on your income taxes... do you know which ones or what the decuctions mean for your wallet? Call or email me for details.
**Note that FHA loans are still assumable, but the buyer has to qualify. Call or email me for details.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
 

As The Village at Allen continues to grow, and more stores continue to open, there will be even more shopping nearby before Christmas. Here's a list of what's already open and what else is opening soon... of course all dates are subject to change:

Already open:
Toys R Us, Babies R Us, Best Buy, Dick's Sporting Goods, HomeGoods, T.J.Maxx, Coffee N Cream, Men's Wearhouse, Nate's Seafood & Steakhouse, Smoothie Factory, Uncle Julio's, Verizon Wireless, Which Wich?, Canine Corners Dog Park & Chase Bank

Opening Soon (with tentative opening dates):
Vitamin Shoppe - on or around December 11th
AT&T (Wireless) - on or around December 13th
Mattress Giant - on or around December 13th
Cold Stone Creamery (Ice Cream) - on or around December 15th
Village Smiles (Dentist) - on or around December 16th
Olive Garden - January
Ooo La La (? Somebody tell me what this is.) - January
Sleep Experts - January (Seriously? ANOTHER mattress store?)
Anderson's Furniture - February
GameStop - February
Radio Shack - February
Villa Nails - February (I believe a nail shop is mandatory in all shopping strips/malls/etc.)

Also, The Village at Allen is donating 200 Christmas trees to service men and women, and their families, at bases in the U.S. and abroad. This will be done via the Trees for Troops program (by the Christmas Spirit Foundation). Please stop by the Trees for Troops tent in The Grove* on Saturday (12/6/08) as it is the last day you can write a note of appreciation to our country's service members before the notes are attached to the trees for shipping.
Finally, Carter BloodCare is having a blood drive on December 20th from noon 'til 6pm in the parking lot just east of The Grove*. Giving blood is a great way to give for the holidays and it doesn't cost you a dime. Just imagine if you or a loved one were in need of a life-saving transfusion this holiday season... you'd be so grateful for the gift from those who donated.
   * The Grove is the one-acre park in the heart of The Village at Allen shopping center.

If you always want to get the get the latest scoop on items like these as soon as they are published, Email Me and let me know and I'll put you on my new scoop notification list.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com