• Price: $1395
• Square Footage: 1696
• Bedrooms: 3
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1395
• Great Location
• Close to I-45
• Walking Trails
• Large Kitchen
• Breakfast Bar
• Dickinson Schools
• Community Pool
• Community Playgrounds
• Low utility bills
• Move in ready

Property Description

Beautiful home for lease in sought-after Bay Colony – great location close to I-45. Great Dickinson ISD Schools in close proximity and easily accessible shopping and groceries. Available for immediate move in. Wonderful open floor plan accentuated by high ceilings. Huge open living room, large kitchen with breakfast bar and nook, formal dining room, spacious master bedroom suite. Faux wood floors in the living and dining and easy to maintain vinyl in the kitchen and baths. Good sized backyard.

Bay Colony is a lovely neighborhood  in close proximity to Highway 45, 646 and 517

Lease Terms

Looking for a good long term tenant (2 Year Lease is Best) with great rental history, good stable employment (2+ years) and income (Approx. $4200/month income to qualify   salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary  a candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home. Apps processed within 24-48 hrs.

Photos

• Price: $2250
• Square Footage: 3722
• Bedrooms: 5
• Bathrooms: 3.5
• Garage: 2 car
• Deposit: $2250
• One Owner Home
• Lake Community
• Walking Trails
• Large Island Kitchen
• Huge Gameroom
• Master Down
• Fort Bend Schools
• Community Pool
• Community Playgrounds
• Low utility bills
• Move in ready

Property Description

Stunning One-Owner Perry Home in beautiful Brightwater freshly painted and ready for immediate occupancy. Fantastic floor plan with formals on opposite sides of a two story foyer, large family room with gas fireplace, huge island kitchen with custom cabinetryand lovely master bedroom on the first floor. Upstairs, there’s a huge gameroom, a bright study overlooking the foyer and four large bedrooms connected by Hollywood baths. Energy efficient features installed: Radiant barrier and insulation..

Brightwater is a lovely neighborhood with wonderful lakes and walking trails in close proximity to Highway 59, US 90 and Sugar Land.

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $6750/month income to qualify – salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary. A candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home. Apps processed within 24-48 hrs.

Photos

• Price: $1425
• Square Footage: 1857
• Bedrooms: 4
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1425
• Granite Countertops
• Black Premium Appliances
• Refrigerator included
• Washer Dryer included
• Community Pool
• Community Playgrounds
• Katy ISD Schools
• Under warranty
• Low utility bills
• Move in ready

Property Description

Immaculate brand new home for lease zoned to great Katy ISD schools available for move in on April 1. This gorgeous four bedroom home has stunning curb appeal in its brick and stone exterior and features a wonderful open floor plan with high ceilings and lots of natural light. This energy star home features some of the top energy efficient features like Techshield radiant barrier, Low E windows, 14 Seer Carried A/C unit and great insulation to minimize your utility bills. Easy to maintain ceramic tile in the foyer, living room, kitchen and baths. Perfect for entertaining island kitchen with dark 42 inch cabinetry, premium granite countertops and black appliances overlooking the living room. The large master suite features premium berber carpeting, high ceilings and great closet space. Separate tub and shower and double vanities in the master bath. Oversized covered patio in the fully sodded large backyard. Home comes with builder’s warranty for the entire first year. All appliances are provided including refrigerator, washer and dryer. Competitively priced and ready for a great tenant on April 1.

Morton Ranch is a quiet neighborhood located two miles from I-10 off Mason Rd. It features a great community pool and playgrounds.

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $4000/month income to qualify – salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary – a candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home.

Photos

• Price: $1325 
• Square Footage: 1675
• Bedrooms: 3
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1325
• Granite Countertops
• Stainless Steel Appliances
• Refrigerator included
• Washer Dryer included
• Community Pool
• Community Playgrounds
• Katy ISD Schools
• Under warranty
• Low utility bills
• Move in ready

 Property Description

How would you like to live in an immaculate home zoned to esteemed Katy ISD, in close proximity to schools and good access to I-10? This home is brand new – never lived in and will carry full builder warranties through the lease term. It already comes equipped with premium stainless steel appliances, a refrigerator and washer and dryer. The Emerson floor plan is functional and makes maximum use of the space. Upon entrance, you will find the tiled foyer and to your right, there’s a spacious office with french doors. Up ahead is the wonderful kitchen with beautiful birch cabinetry, granite countertops, plenty of counter space and cabinet space. The bright and cozy breakfast/dining nook complements the kitchen area well. The family room features a gas fireplace and has access to the back yard and the covered patio. The master bedroom features vaulted ceilings, massive closet space and a master bath complete with separate tub and shower, double vanities and ceramic tile. The two additional bedrooms are in a separate hallway and they are both good size. The laundry room is off that same hallway on the way to the garage and it comes equipped with a new washer and dryer.

The home is energy efficient with Techshield radiant barrier so you can have lower utility bills.

The Morton Ranch neighborhood is quaint and quiet just a couple of miles north of I-10 on Mason. It has a great community pool and play areas. You will love it here!

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $4000/month income to qualify – salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary – a candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home.

Property Photos

What’s the next step? Download the blank lease application complete it and email it back to us along with copies of  last two check stubs and copy of driver’s license.

Photo Credit: Kevin Dooley via Compfight

Houston Real Estate market stats

I want to make this very simple for you by briefly summarizing the main points. Real estate sales were up by double digits over the same period in 2011: All property sales were up 15.8% while just single family homes were up 16.9%. Inventory is down to 5.6 months: The lowest levels since right after the peak of the recession in December 2008 and down 22% compared to last year. Pending sales are up 13.5% compared to last year as an indication that the increased activity is likely to continue in the following months. Average sales price fell 4.6% as foreclosures made up a larger portion of sales: 21% increase compared to last year. Full report on HAR’s website.

Bank foreclosures and the upcoming market

Banks foreclosed on millions of homes across the country during the recession and at some point they would have to resell them to recuperate a portion of their investment. But bringing all the foreclosure inventory owned by banks on the market at once would wreak havoc on the real estate market and drop values even further. In addition since the demand for properties was barely keeping up with the inventory already in the market, dumping this massive number of homes on the market wouldn’t make sense at all. So, banks have been doing a controlled release of these properties on the market while being careful about preserving a ratio of foreclosure sales to total sales between 15-20%. This has brought about the much talked about “shadow inventory” talk that many people say can be the next shoe to drop for the housing market.

The increasing number of sales in real estate markets across the country demonstrates an increase in demand for properties. Banks are taking notice of their properties commanding multiple offers and selling above asking price so they’re releasing more properties. In February, foreclosure sales made up 23% of total sales – a figure that’s higher than the 15-19% norm of the past couple of years. This is reflected in the decrease of average sales price seen in February. Remember the median sales price for all properties in Houston is $150,000 whereas the median sales price of bank foreclosures is $79,000.

So what remains to be seen in what the banks will do as the market seasonally heats up for spring and summer. Will they bring even more properties to market to take advantage of a liquidation opportunity or will they be cautious and try to preserve a balance in the market?

What February numbers mean for Houston Sellers

If you are considering to sell your property in 2012, the environment is much friendlier this year than in years past. More buyers and shrinking inventories are a good combination and they increase the probability that your home will sell faster. But a note of caution: The majority of home buyers are still in “looking for a deal” mode so properties that are priced competitively, marketed aggressively and ready for showtime will prevail. And now they have choices: Many banks are now remodeling their foreclosures to make them more competitive with regular listings. Last, remember that there are two main driving forces behind home sales: 1) the strength of the economy (or people’s perception of it i.e. consumer confidence) and 2) low interest rates. The second factor is crucial for affordability and it comes with a time limit. The more the recovery strengthens, the higher the prospects for higher inflation, the higher the probability that interest rates may have to rise. So this may be a good opportunity for you to make your move.

Schedule a complimentary consultation with Erion

What February numbers mean for Houston Buyers

Getting a deal on a foreclosed property will be more difficult in 2012 for Buyers that approach the process unprepared. Read: What to expect when buying a Houston foreclosure before you start. It will save you a lot of headache and aggravation and will increase your chances of being the winner. Slimmer inventories and increasing buyer demand will mean there are fewer eligible properties per eligible buyer so you may need to act quickly when the opportunity presents itself. All that being said, 5.6 months of inventory is still a balanced market and therefore full of opportunities. So, get your pre-approval in order (if you need help finding a great lender, send me an email) and let’s meet to talk about your needs, wants and would-be-cools. Or just:

Search All Houston Homes

The bank foreclosure market is a Seller’s market

I know what you’ve heard. “We’re in a great free-for-all buyers market with banks just giving homes away at ridiculous prices”. Let’s get the most important myth out of the way right away. The current state of the bank foreclosure market is a Seller’s market. That means there are more buyers (demand) than properties (supply). The ultimate evidence of this is bidding wars. Since the year started I am yet to find a foreclosure property that didn’t have multiple offers on it. Bidding wars and multiple offers means most properties will sell at or (most probably) above asking prices. The moment there’s buyers competing for a property all the negotiating leverage goes out the door and it becomes a matter of “who will get the property” rather than “at what price”. Prospective buyers have to be prepared that it may take 4-5 offers before they get one under contract. In other words, if you want to ride Space Mountain, there will be lines.

Carpet and Paint goes without saying

There’s always exceptions to every rule of course, but if you’re going to buy a bank foreclosure be prepared for at least some cosmetic work. Banks aren’t stupid – they know the fair market value of properties as they have seen what comparable properties sold for in that neighborhood. More often than not, the reason why they agree to discount the price of the property is to account for any work that they have no interest in doing themselves. So getting a home below market and cosmetic repairs go hand in hand. There are cases when banks handle those repairs on the front end by repainting the property, changing carpets and installing new appliances. But it those cases, the price they end up asking for is pretty close to the retail value of the home. If you are planning on purchasing a foreclosure property in Houston be prepared for repairs in the neighborhood of $5,000 – and under most loan programs these repairs cannot be rolled into the loan so the Buyer has to make prior arrangements to have that money saved or some other alternative.

It’s not what you start with, it’s where you end up

When you’re caught up in a competitive bid, it’s easy to throw caution to the wind and just make sure that you beat the other guy. But in the end that’s not in your best interest. Think about this scenario: There’s a bank foreclosure selling for $100,000 and sales comparables show a fair market value of $130,000. The home will need about $10,000 in repairs to be brought to top condition. You make an offer only to discover that there’s another Buyer that wants to beat you to that $20,000 in built in equity. Inevitably your nostrils flare up and you make it your life’s mission to deny this guy the property and bid $110,000 thinking you still have room. But the purchase price is just the beginning. By the time you are done with the repairs you end up with a $120,000 property worth $130,000 and a happy Home Depot. Hardly something life-changing. When deciding on an offer price, take into consideration where you will end up by the time everything is done not just the acquisition price.

Banks take their sweet time

If there’s a principle the understanding of which will save you immense amounts of aggravation is that banks operate slowly. Generally,  it takes 48-72 hours to get an answer from the Bank when you submit an offer or negotiate the price. This is in part because the bank’s asset manager that makes decisions on their properties is probably handling hundreds of properties a day so it’s just a matter of them getting to the one you’re trying to buy. Even after an agreement has been reached, the 48-72 hour turnaround times apply to getting the contract signed by the bank. Once the contract is in place, then the deal moves faster as it’s up to your mortgage company not the bank.

Does it make sense to purchase a bank foreclosure in Houston? It depends: On the deal, on the Buyer and their situation. But one thing’s for sure: if you are planning to undertake the journey, the tips above will have you better prepared.

Search Houston Bank Foreclosures

First, the data in a vacuum

Let’s take a look at the data HAR released a few days ago for the year 2011:

1. Total Property Sales: 63,610
2. Total Dollar Value: $13B
3. Average Sales Price: $213,723
4. Median Sales Price: $155,000

Quite a handsome set of numbers, isn’t it? Without some context however, it just makes your head hurt and tells you nothing.

Add in some historical context

click for full size image

The strongest indicator of market and recovery strength is the total number of sales in a particular year. This may come as a surprise to many but even during the lowest point of the recession, average prices in Houston never really dropped. They were either flat or growing slightly. What revealed the weakness in the market was the lower number of sales. In fact, we had declining sales for 22 consecutive months until the government tax credit lifted sales in late 2008 mid 2009.

So how did the Houston real estate market do in 2011 when it comes to sales? Short answer: Better. The total of 63,610 properties sold was a 4% improvement over 2010 and a 1.5% improvement over 2009. Remember that sales were on steroids during 2o08 and 2009 so direct comparisons aren’t fair. Total sales in 2011 and 2010 reflect the true state of the market, whereas in 2009 and 2008, they reflected an inflated market. So the 2008 spike you see in the graph should be taken with a big pinch of salt.

Conclusion: Sales in 2011 show a real estate market in a moderate recovery. Definitely not the time to throw a party yet, but this is encouraging. 

Click for full size

The number of sales tells only half the story. After all, Florida had soaring sales in 2009 and 2010 but most those sales were foreclosures, short sales and distressed properties which sold at low prices. That’s not good either. So, after we found out we sold more homes we need to look at the prices those homes fetched.

The average sales price for the Houston real estate market in 2011 was $155,000 which is the highest number on record. That said, this average sales price is a 1% improvement over 2010 and it follows a trend of minimal appreciation seen since 2008. So, prices are holding up well while sales are increasing. We’ll take that.

Decisions, Decisions

So what should you do if you’re considering to buy or sell in 2012? The first answer is easier than the second.

If you’re looking to buy, there are three huge reasons to make that move in 2012. First, interest rates are scary good. To illustrate that point, think about this. If you had purchased a home in 2010, the average 30 year fixed mortgage rate during that year was 5%. Now it’s 3.82%. So if you take a $150k mortgage, you’d be saving 13% on your payments or $1200 for every year you have the mortgage. Like I said, scary good. Second reason is that there are plenty of deals out there. Banks have been slow dripping their inventory onto the market and kept foreclosure sales at roughly 20% of the total. That approach extended the time it took to clear out the foreclosure inventory so in 2012 there will be  plenty of bank owned homes on the market. Another factor that will contribute to this will be the supply of short sales available. Banks have somewhat streamlined the short sale approval process and that has lead to more short sales being approved in a shorter timeframe. Third, financing options are plentiful. Don’t listen to boneheaded news reports that now you need 20% down or excellent credit to purchase a home. While guidelines have tightened, you can still get a conventional mortgage with 5% down and a FHA loan with 3.5% down and the required credit score is above 640. If you want to take a look at what’s on the market, you can start your search.

If you’re considering a sale of your home, your decision will largely depend on your reasons behind the move and  the local conditions in the specific neighborhood. If you’re being transferred, you may have no choice but to sell or lease and a market analysis of your home can point out which one of those makes the most sense for you. If instead you have the option to sell but no obligation, the market conditions in your neighborhood and  the time (and price) when you purchased your home will determine if you should put the home on the market or hold off. Either way, a disadvantageous sale can be offset by an equally advantageous purchase in this market.

New Law

In September of 2o11, House Bill 252 imposed new requirements on property owners that want to claim exemptions. Due to the spread of duplicate or multiple filings of homestead exemptions on several properties by the same owner, this bill now requires the homeowner to provide the following along with their application:

1. Copy of drivers license showing the address of the property and
2. Copy of car registration with the property address. In the absence of a vehicle, you can provide a utility bill with that address or complete a notarized affidavit

Harris County

If your property is located in Harris county, please print out the Harris County Application for Residential Homestead Exemption form , fill it out and mail back to Harris County Appraisal District, P. O. Box 922012, Houston, Texas 77292-2012 along with the supporting documentation from above. If you have any questions about how to complete the form, you can email me or call me on my cell at 713-922-2702.

From the Harris Country website these are the exemptions that may be available:

School taxes — all homeowners.
If you qualify for the homestead exemption, you will receive at least a $15,000 homestead exemption on the value of your home for school district taxes.

County taxes — all homeowners.

Harris County currently provides a 20% optional homestead exemption to all homeowners. This means, for example, that if your home is valued at $100,000, the exemption will reduce its taxable value for Harris County taxes by $20,000 to $80,000.

Optional exemptions — all homeowners.

Any taxing unit, including a school district, city, county or special district, may offer an exemption for up to 20% of your home’s value. The amount of an optional exemption can’t be less than $5,000, no matter what the percentage is. For example, if your home is valued at $20,000 and your city offers a 20% optional exemption, your exemption is $5,000, even though 20% of $20,000 is just $4,000.

Fort Bend County

If your property is located in Fort Bend County, you can download the application, and mail back to:

Fort Bend Central Appraisal District
2801 B.F. Terry Blvd.
Rosenberg, Texas 77471-5600

Here again you will need to provide supporting documentation (driver’s license and vehicle registration or utility bill).

Download Brazoria County , Montgomery county  and Galveston County applications.

For a wonderful treat, visit Prestonwood Forest’s Nite of Lites: A neighborhood wide spectacle of beautifully decorated homes at no cost. Decorations will be up until January 1st so there’s a few more days left. You can get directions to Prestonwood Forest here, or visit the official neighborhood page for a list of winners, entrance points and more. It’s become a Christmas family tradition of ours since we moved to Northwest Houston to attend this event. People drive in from all over the city to be a part of it. Below are some photos I took when we went last week. Enjoy!

For all the photos from Prestonwood Forest’s Nite of Lites view the Flickr slideshow

Houston real estate market statistics for November 2011

Although useful, these figures by themselves don’t provide much insight until they’re coupled with some historical perspective and context. That’s why I went back 10 years to November 2001 and tracked each of these figures to offer you a clearer picture of where the Houston real estate market stands relative to other years – recession or boom.

Property Sales

Along with sold prices, the number of properties sold in a particular period of time is a fundamental indicator of market health. Take a look for yourself:

Property Sales in Houston November 2001-2011

When you take away the outlier that is November 2009, when the government shot steroids into the housing market via the tax credit, you can see that property sales in November are on an upward trend since the 2008 bottom when the recession hit. We are definitely lower than the top of the market numbers in 2004-2007 but higher than similar months at the beginning of the decade (2001-2003). Sales numbers in November are therefore encouraging.

Median Sales Price

The median sales price of $154,950 is the highest among properties sold in the month of November in the past decade. Chart speaks for itself:

Median Sales Price November 2001-2011

You can see definite trends: sideways through 2001-2004, upward in 2005-2007, the dip of 2008 and upward tick in the last couple of years. This chart is by and large good news – our market is on a positive trend in November.

Months of Inventory

Last but not least, months of inventory is a statistic that indicates literally how many months it would take to clear out the existing inventory of Houston homes for sale at the current rate of sales. Typically 5 months or under is considered a Seller’s market (more buyers than sellers, sellers in driver’s seat), 6 months depicts a neutral, balanced market, and 7 or higher is a buyer’s market.

Months of Inventory November 04-11

HAR data only went back as far as 2004 on this. We’re currently at 6.2 months of inventory which points to a balanced market between supply and demand. This years figure is a great improvement over last year and it’s in line with number is 2007-2009.

Takeaways

Remember that these are aggregated numbers – that is they provide a macro view of the Houston Real Estate market as a whole during the month of November. That means that if you wanted to know how the market is doing in your neighborhood, you still need to look at the micro view of sales, prices and inventory in that specific neighborhood. If you are thinking about selling your home or just would like a complimentary home value evaluation, you can request one here and I’ll be happy to help.

In the meantime, enjoy your holidays. I’ll be covering December’s figures in about four weeks.

(HAR Press Release)