Have you ever thought it would be fun to actually go out and cut down your Christmas tree (or thought the kids might really enjoy such an experience)? Well, here's your chance... I got this great email from a friend and thought I should share it with my blog readers:
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Every year my wife and I go to this place and cut down our tree. Very cool place that has Hay rack rides, apple cider, hay bail maze for the kids, and a cool little cabin where they make homemade cookie and wooden dolls and stuff… very neat.

Time and time again, I run into homeowners who want to bring up a past appraisal when we talk about the value of their home. However, it is important to keep a two key questions in mind when you're talking about appraisals:

1. When was the appraisal done?
In a "normal" market, appraisals are generally considered inaccurate if more than a few months old. Certainly anything more than six months old is practically irrelevant. However, in more rapidly moving markets (whether prices are increasing or declining) an appraisal that's more than a few weeks old, let alone a few months, may be out of date. Appraisals are based on the prices comparable homes are selling for in the area around the subject property. So, each time another home sells near you, the value of your home is prone to change.
What does this mean to you? While you may have an appraisal that indicates a specific value for your property, if it's not VERY recent, it's not very accurate.

2. Why was the appraisal done?
Tax appraisal: I won't get into the details here, but while tax appraisals can vary widely, in North Texas they are often at or slightly below a property's true market value. That's not to say that they can't be high, but taxing authorities tend to shoot at or slightly below market value so that they don't get a fight from every single homeowner. That's right, Homeowners in most North Texas counties have the option to challenge their appraisals. So, when a neighborhood's appraisals are coming in high, some homeowners will challenge, others will not. This can make for widely varying tax values (some high, some low, some right on) all in the same neighborhood. However, I've seen entire neighborhoods sell for well above tax roll values while others have sold entirely for well below. Ultimately, this means that tax roll values have little, if any, significance when it comes to putting a true market value on your home.
Refinance and purchase appraisals: These tend to run a little on the high side, and this is generally due to homeowners (and their lenders/appraisers) trying to stretch every single dollar out of their prospective new loan. As lending guidelines tightened up recently, so too did have the values on these appraisals, but I still see them for more than a home would really sell for (almost an "if all the stars aligned perfectly" value for your home).
What does this mean to you? While neither of these are hard-and-fast rules about tax or refi/purchase appraisals, hopefully I've illustrated that these types of appraisals can vary depending on the reason they were performed.. so they are not generally the most accurate judge of true market value.

So how to you go about finding true market value?
Sites like www.Zillow.com claim to give a fairly accurate "Zestimate" of property values. However, reading the fine print for the Dallas area, I found an error margin of almost 9%! Obviously that's unacceptable as this could have you overpricing, or underpricing, your $200K home by around $18K! Ultimately, paying to get your own independent appraisal (letting a good Appraiser know that you need a true market value) is one smart way to go. However, most homeowners prefer to get a CMA (Comparative Market Analysis) by a great REALTOR® as part of their home sale preparations. Though most Real Estate Agents are not certified Appraisers, they are the ones out in the market helping buy and sell homes every day. A great agent can pinpoint the true market value for a property based on the most current market data (sales of nearby, comparable homes) and let you know where to price your home to insure a sale at that price within the time-frame you need. A good CMA can also be used as a tool to challenge your property tax appraisal (I've prepared them for many of my clients over the years). Let me know if you have any further questions on appraisals or CMAs. There's even free CMA request form right at the top of my website (www.CaveRealty.com). Just remember that a CMA value, like an appraisal value, changes with time. If you're thinking about selling in the near future, now (Winter) is a fine time to request a CMA to get an idea what you home is presently worth... but if you won't be Selling until the Summer, expect to need a new, revised CMA (or appraisal) come Spring.

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

Isn't technology great? Today's Home Buyers can practically have direct access to the MLS (Multiple Listing Service) like a real estate agent does. This will show them all homes listed for sale by all real estate companies. Many agents initially feared this, worrying that if Buyers could access this information directly, why would they need an Agent? Good Agents embraced it, knowing that educated Buyers are almost always better to work with. As a top Real Estate Agent, I'm not in the business just to find & show homes... almost anyone can do that. I specialize in the entire process: from finding the right home, writing the first offer, negotiating the finer points of the deal (from price and terms to repairs and closing costs) all the way through closing and handing over the keys. There are LOTS of little steps along the way that my years of experience help me make smooth. So, I think it's GREAT to give Buyers access to the MLS... let them set-up their own search criteria, save their favorite properties, see all photos, etc. Most Real Estate Agent/company websites now have the ability for Buyers to search the MLS, some even allow you to save your search, favorite properties, etc. The Home Buyer's Scouting Report^® (HBSR) is simply more powerful, with a few more bells and whistles, than the "normal" home search tools you find on most websites. I ran across the HBSR when a preferred Mortgage Loan Officer asked if I had ever seen anything like it. I hadn't then and still have not to this day. Here's the description I put together from my own experience with the HBSR:

"The Home Buyer's Scouting Report^® allows you to search the entire MLS, similar to the way REALTORS^® find homes and properties for sale. There are over three million listings available, from thousands of real estate companies, across all 50 states! Find the most current property information available, see all pictures available from the MLS, save your search criteria, save your favorite properties and get e-mails of any new or changed listings that match your criteria... plus requests for showings and additional property information are just a click away."

If you haven't tried the Home Buyer's Scouting Report^®, you owe it to yourself to at least watch a demo and see what it's all about. Visit my website (www.CaveRealty.com) and click on the HBSR graphic in the middle of the home page. Or, visit www.IncredibleHomeSearch.com. Then, click on "View Demo". If not the HBSR, be sure you've found some home search tool that at least provides some of the great features available with the HBSR. I've been told by Buyers that, before they found me/the HBSR, they had similar functionality by combining a few different on-line search tools. The good news is that the HBSR is all of these tools in one place... there's no need to search multiple sites. Bottom line: My Buyers LOVE IT and that please me as a top Agent.

So, power to the people! Enjoy the MLS access and the process of becoming a more educated Home Buyer. I'll be here right here beside you to help put that education to it's best possible use in finding the perfect home for you and your family and take the deal all the way to closing/completion (and beyond).

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

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

Many first-time Buyers don't know much about HOAs (Home Owners Associations). Repeat Buyers often have strong opinions based on their previous experience with a past HOA. Trouble is, every HOA is a little different. Some are stronger than others, some barely exist. Some police the neighborhood for anything that may be against their rules and/or harm property values (liked dilapidated fences or houses painted purple or blue), some just maintain common areas (like community fences, entrance signs/landscaping or a pool). Ultimately, an HOA is usually run by the Home Owners and for the Home Owners with operating funds provided by the Home Owners. Many communities have their HOA administered by a management company (like CMA manages Lost Creek Ranch: http://www.cmamanagement.com/) but the board is still generally run by Home Owners. The board doesn't usually make a lot of policy, they just follow the rules that were in place when they took office. It's up to the community's Home Owners as a whole to make/change the rules and regulations. The purpose of an HOA is generally to maintain a nice community. The real issue is the question: What is a nice community? Most HOAs tend to want uniformity if they are enforcing rules about property and home improvements. Many times, these rules can be traced back the the developer of the community (as is the case with Lost Creek Ranch in Allen, TX). Developers know that a bright blue house or dilapidated fence, in a neighborhood full of more traditional colored homes (shades of brown, beige, etc.) with nice fences, traditionally brings the property values down around it. Many people want uniformity, that's why they are looking in a neighborhood with similar homes and an HOA. Those looking for something more "exotic" or out of the ordinary (like a purple home with a huge collection of yard gnomes) can often find such a home in less traditional neighborhoods with no HOA (keeping in mind that there may be city codes/ordinances that even an area with no HOA must adhere to). Ultimately, even the most strict and authoritative HOAs are generally just trying to keep property values up for all residents. Seldom are they "out to get" anyone in particular. Remember, any changes to your home or property may have an impact on your neighbors. So, where do your rights end and theirs begin? Shouldn't you be able to do whatever you want on your property (you own it, after all)? Not if you're in a neighborhood with an HOA. When you purchased your home, you probably signed an HOA rider or document that said that you agreed to adhere to their rules and regulations. I know that there were a lot of documents at closing, but your real estate agent should have made you aware of this (well before closing actually). The street goes both ways though: when you are thinking about selling your home, your neighbor's yard/home will have a direct impact on how your home shows/sells. Wouldn't it be nice to have an HOA help encourage your neighbor that the Christmas lights need to come down now that it's February (and PLEASE mow that yard for goodness sake)! Personally, I'm a fan of HOAs... I've been out with Buyers when they've said "We love this home, we just don't love the next door neighbor's yard/fence/etc." I've seen unkempt yards/homes cost a nearby Seller thousands of dollars (and bring neighborhoods down as a whole). However, this is the U.S. of A. and, if you don't like HOAs, you have rights! If you feel oppressed by an HOA, you could see if their is neighborhood support for disbanding the HOA, changing the leadership, or even move out of said neighborhood. The best plan for these people though is to never to buy a home in a neighborhood with an HOA. There are plenty out there without HOAs and the associated rules and regulations... just watch out for your neighbors, there won't be anybody to help (unless it's against city code) when they bring out their new collection of pink flamingos.

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

First-time Buyers (or first-time investors) are sometimes hesitant "pull the trigger" or write a contract on a home because buying a home is, after all, a major financial decision. However, if you come upon a gem of a home, something you think might really work for you, your family or situation, don't hesitate and lose out. I can't tell you the times that a Buyer has decided to "sleep on it" for a few days only to find that another offer came in and that home is gone (under contract with another Buyer). Even in a Buyer's market, when there are lots of home on the market, the best ones don't generally stick around very long. Then, you're left with the memory of your favorite home and none of the others after that ever seem to match "the one that got away".

Luckily, in Texas when you write a contract to purchase a home there is generally an "Option Period" where Buyers can take a home off the market for a small "Option Fee" and seriously consider their purchase over the course of several days with the option to cancel their contract for any reason (read more here: http://www.realtown.com/ryancave/blog/transactions/optionmoney). Now I'm not suggesting that you go write a contract on every home you might be interested in, that could get expensive at around $100 per home. However, if you have a favorite and you want to "sleep on it", why not go ahead and write an offer? It will probably take a day or two for the Sellers to get back with you anyway (and often they will simply counter your offer). Worst case: They accept your offer and you pay your "Option Fee" and then can think more seriously about it while having the option to cancel at any time (but the home is yours if you want it, they can't sell it to someone else once it's under contract). Trust me, it's far better to risk around $100 than miss out on the home that would have worked so perfectly for you, your family, or your business aspirations.

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

Spread Holiday Cheer
With a Progressive Dinner Party

A progressive dinner party is a simple way to spread holiday cheer or start the New Year while getting to know your neighbors. Whether in a smaller town like Allen, TX or a big city like Dallas, TX, a good time can be had by all. The main premise behind a progressive dinner party is that a group of neighbors plan a meal together where each course is served at a different participant's home. This has become an annual tradition for the residents of Brandywine Drive (in Lost Creek Ranch of Allen, TX) and each year has proven to be an enjoyable and entertaining evening.

Here are a few steps for organizing such an event:

• A flyer about an initial/planning meeting can help get things rolling.
• Select the hosts. A good number is 3 to 5 houses; this is an excellent way to show your neighbors your beautiful home (and/or to display that project that you have been dying to show off). A good way to get people to sign up is to have the Organizer pass out a festive flyer down the street with sign up times and have people call to choose their desired time slot.
• Send out the invitations to your neighbors. Request RSVPs and include the times and addresses of the hosts' houses.
• Follow up with guests who haven't responded and remind hosts of the event a week before the party.

Tips:

• A sample outline for the evening: the first house serves cocktails and hors d'oeuvres; appetizers at the second home; a first course such as soup, salad or pasta at the third house; the main course served at the fourth house; and desert at the fifth house. Or you can simply alternate between cocktails and hors d'oeuvres instead.
• Remember to keep it short and sweet. 30-45 minutes for cocktails, hors d'oeuvres and dessert. 45-60 minutes should be plenty of time for the main course.
• Choose recipes that can be made ahead and simply reheated and served when the guests arrive.
• Leave the kids at home as they can be a handful as you move house to house. Share a sitter if possible and get to your know your neighbors!

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

In Texas, almost every real estate transaction requires a property survey showing boundary lines and the location of easements, fences, dwellings, structures, pools, etc. These are important as they can show where you might be allowed to build on to your home, patio, fence, back yard, etc. Also, they show if any of your current real property infringes on neighboring land (i.e. if your fence actually sits on your neighbor's lot). Most Buyers are happy to re-use the survey provided by the Sellers as it generally saves them somewhere around $375. The Sellers sign an affidavit stating that there have been no changes to the property since the survey was done except... (they fill in any changes and if not too great, the survey is often accepted by lender and title co.). However, there are some important issues that Buyers should be aware of when accepting a Seller's survey and affidavit. First, surveys are often copyrighted. This means that they may not be copied legally without the Surveyors permission. The Surveyors won't generally give permission, because they make their money by going out and doing new surveys and don't want to be liable if there are changes to the property not reflected on the old survey. There may be changes to the property that the Seller forgot about or "forgot" to mention. A Buyer has no recourse against the Surveyor who did a survey for the Sellers (they're using a Survey that they didn't pay for, after all). I generally recommend that my Buyers get a new survey if at all possible. When you're making what is often the biggest financial purchase in your life, you don't need to skimp on $375. This way, if a new neighbor says that your fence, pool, fountain, etc. is on their property, you can pull up your new survey and/or call your surveyor to quash the issue. For more information on the Texas Board of Professional Land Surveying, go here: http://www.txls.state.tx.us.

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