Conservation and Financial Fitness: Going Green Can Be Golden!

The world is all abuzz with going green. No home improvement show is without stressing the ability to use recycled and re-purposed materials in home renovations. No daily talk show host has failed to embrace this issue. It is being addressed everywhere you look: Green is 'in'. While I will be the first to admit that there are aspects of home improvement where going green is outright expensive (recycled glass countertops, for instance, cost as much as granite and marble), the truth is that having your attitude in the proper shade of green means that you are thinking conservatively-- how to save in resources can translate into how to save in your pocketbook. And the Lauri Kent real estate team loves win-win situations like this! Here is an article that has several ideas on how to increase your conservation prowess. Maybe there are a few notions here that will work for you:

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Dedicated to Going Green? Follow These 10 Easy Steps

Given the pressing environmental challenges facing the world, one day just doesn’t seem like enough to celebrate the earth and make long-term environmental changes. Why not use this month as inspiration and make a commitment to do environmentally friendly activities throughout the year?

Here are just 10 ideas, along with some online resources, that you could try.

Green your office–Establish a green team with colleagues to address ways to reduce your office’s impact. A recycling program is obvious. Other strategies could entail ridding the kitchen of disposable goods, replacing equipment that hogs energy, improving lighting and HVAC systems, installing a bike rack, and replacing grass around the office with a vegetable garden or native plants. For more information, visit www.greenyour.com/office.

Shop locally–Swear off buying stuff from faraway places, even if it saves some pennies. Just consider the impact that packaging and shipping your goods has on the environment. Instead, shop locally. Walking to shops saves energy and you also help neighborhood businesses thrive.

Make mini moves–Build new habits that will have an ongoing impact. Those could include the basics, such as switching to CFL bulbs, fixing water leaks (www.epa.gov/WaterSense), or cutting the phantom power at home.

Do an energy audit–Invest in an energy audit to figure out exactly how your house wastes energy. Even if you’re on a tight budget, commit yourself to making some of the changes the auditor suggests, and start setting aside money for costlier upgrades. Find an auditor at RESNET, www.resnet.us/trade/find-raters-auditors.

Go car-free–Reorganize your schedule so you can take public transit or walk to work and errands at least a day a week.

Become a locavore–Rely on local providers for your weekly produce by shopping at a farmers’ market or joining a CSA (Community Supported Agriculture) program. And when it’s time for gift giving, consider buying CSA memberships for friends and clients. www.localharvest.org

Share your knowledge–Offer to make a presentation to colleagues at a weekly sales meeting about green changes they can make. Or pass the torch to the next generation by organizing an environmental event at a school or with a Girl Scout troop.

Raise your profile–Whether it’s a community garden, a rails-to-trails group, or a transit improvement committee, get involved in your community. Your participation raises your profile and connects you with new prospective clients, and your efforts have a direct impact on improving your community.

Learn something new–Still fuzzy on the details of programs like LEED or Energy Star? Wondering about new rebates and incentives? Spend two hours each week getting up to speed on industry programs and trends. One resource for such education is the Green REsource Council’s Webinars, one of the many great benefits available to NAR Green Designees. All the Webinars are archived at http://greenresourcecouncil.org/webinars.cfm for deisngees, and they include sessions on Energy Star, EPA’s WaterSense, USGBC’s REGREEN , LEED for Homes, and NAHB’s Green Building Program.

RISMEDIA, April 26, 2011

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So armed with these suggestions, hopefully the idea of going green is not so daunting anymore, nor so foreign from you current lifestyle. Financial fitness incorporates conservation just as much as it includes credit scores. The point is to always use your head and keep the priority that the best conservation efforts are the efforts you can sustain as lifelong habits. And can you quantify how much money you save by your Green efforts? You might be smiling when, after you fix that leaky faucet and improve that insulation, you see beautiful results appearing in your next utility bills! Now that's Financial Fitness!

The National Real Estate Outlook: Existing Home Sales Rise in March

Real Estate conditions and home sales tends change not merely from city-to-city, but there can be dramatic differences neighborhood-to-neighborhood. There is so much that feeds into how a potential home buyer evaluates a property: the corresponding school district, proximity to shopping or recreational outlets, the ease of commute from the home's neighborhood to places of work all feed in to how well home prices maintain value. It is therefore necessary, and helpful, to gauge the micro-markets with the greater real estate outlook on the greater scales of regional and national evaluation. It can answer important questions, and maybe most importantly, put a lens on the general value of homes in your area, in spite of local fluctuations. Here is the latest report that gives great news about home values.

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Existing-Home Sales Rise in March 2011

Sales of existing-home sales rose in March 2011, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3% below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.

Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13% of gross household income, the lowest since records began in 1970.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84% in March, down from 4.95% in February; the rate was 4.97% in March 2010.

Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.

“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago—before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.

A parallel NAR practitioner survey shows first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010.

All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.

The national median existing-home price for all housing types was $159,600 in March, down 5.9% from March 2010. Distressed homes—typically sold at discounts in the vicinity of 20%—accounted for a 40% marketshare in March, up from 39% in February and 35% in March 2010.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said some renters are looking to homeownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”

Total housing inventory at the end of March rose 1.5% to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.

Single-family home sales rose 4.0% to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5% below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3% from a year ago.

Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1% below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1% below March 2010.

Regionally, existing-home sales in the Northeast rose 3.9% to an annual level of 800,000 in March, but are 12.1% below March 2010. The median price in the Northeast was $232,900, down 3.0% from a year ago.

Existing-home sales in the Midwest increased 1.0% in March to a pace of 1.06 million, but are 13.1% lower than a year ago. The median price in the Midwest was $126,100, which is 7.1% below March 2010.

In the South, existing-home sales rose 8.2% to an annual level of 1.99 million in March, but are 1.0% below March 2010. The median price in the South was $138,200, down 6.6% from a year ago.

Existing-home sales in the West slipped 0.8% to an annual pace of 1.25 million in March and are 3.1% below a year ago. The median price in the West was $192,100, which is 11.2% lower than March 2010.

~RISMedia April 21, 2011

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What is your home's value? If your home is in the region of Southeast Texas, Lauri Kent is happy to  provide you with an evaluation of your home's value. IF you are in the market to buy or sell a home in Greater Houston, Spring, The Woodlands, Conroe or any of the towns and communities around Lake Conroe, let Lauri Kent earn your business. She welcomes your interview. Contact Lauri Kent at 936.447.6000.

Agent vs. FSBO: Is there more money to be made by Do-It-Yourself Home Selling?

Why pay someone else to do something that you can do perfectly well yourself?

Every year, approximately 12% of the homes on the market are For Sale By Owner, FSBO for short, which is the process of selling real estate without the representation of a real estate broker or agent. The merit is considered to be, of course, the avoidance of paying commission fees for selling the home. If you are considering the on-your-own approach to home sales, then the next question you must ask yourself is this: How likely am I to successfully sell my house for the price I want? How successful are FSBOs, in general, on the open market?

Only you can determine your level of confidence in engaging the home sales market, and there are some experienced individuals who claim great success at it. But if this is completely new territory for you, here is a survey that you may consider:

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Survey: Sellers Fare 50% Better With Agents

Sellers have a better chance at getting their house sold by using a REALTOR® (real estate professional) than opting for the do-it-yourself approach, according to a survey of 1,000 homeowners by HomeGain.com, an online real estate resource.

Nearly 60 percent of homeowners who used a REALTOR® to sell their home were successful compared to 39 percent of “For Sale By Owners,” the survey found.

In the survey, 83 percent of homeowners said they used a REALTOR® to sell their home, whereas 17 percent said they tried to sell it themselves. This corresponds to results from NAR’s 2010 Profile of Buyers & Sellers, which found 88 percent of sellers were assisted by a real estate agent. (Additionally, 83 percent of buyers bought their home through an agent.)

“It is especially striking that homeowners fare significantly better in selling their homes using a REALTOR® than selling on their own,” said Louis Cammarosano, General Manager at HomeGain.

“Due to that relative success, the level of satisfaction in the home-selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own.”

Among the findings in its For Sale by Owner vs. REALTOR® survey:

• 88 percent of homeowners who sold their homes using a REALTOR® said they would use a REALTOR® again.
• 24 percent of FSBOs eventually contacted a REALTOR® to help sell their home.

Source: “HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own,” HomeGain.com (Feb. 24, 2011)

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What Fannie Mae Chief Economist Doug Duncan Sees in His 2011 Economic Forecast Crystal Ball

Rising gas prices. Rising milk prices. Unemployment rates that fail to fall. That is what we see in our present. It can make a person rather skeptical about what may be in our immediate economic future. While the prices at the pump suggest gloom and doom, there are others who foretell a bright economic future this year. One is Doug Duncan, a chief economist for Fannie Mae, positively sees a positive future. Check out his perspective:




Financial fitness is all about keeping your eye on economic trends. If you are in a position of buying or selling a home in the Southeast Texas market and would like assistance evaluating your real estate property, Give Lauri Kent a call.

The First Time Homebuyer Credit and Your 2010 Tax Return

The day is quickly approaching: The deadline is Monday, April 18th (the IRS extended the deadline because Emancipation Day is April 15th, a holiday observed by the District of Columbia). Do you have your 2010 taxes prepared?

And did you buy a home in 2008 with the First Time Homebuyer Credit? If so, it may affect how you file this year. Take a look:

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Update on First Time Homebuyer Credit and Tax Refunds

The IRS recently released information on processing issues that are impacting a small percentage of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. While most of these returns are processing normally, the IRS recognizes the hardship caused by delayed refunds, and it has assigned additional staff and resources to address the issues promptly.

It is important to note that taxpayer returns claiming a home purchase in 2010 are not affected, and those returns are being processed as are the vast majority of other homebuyer returns.

Here’s an update on the source of the processing issues:

1. Married Filing Joint taxpayers who received the FTHB credit on a 2008 purchase

There seems to be an identified processing issue primarily impacting refunds for married couples filing joint returns this year who received the First Time Homebuyer credit on their 2008 tax return. This credit was an interest-free loan, and must be paid back beginning this year under the provisions of the law.

This issue, related to Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, primarily impacts Married Filing Jointly taxpayers who filed their tax returns this year before Feb. 22. The IRS is working aggressively to manually process tax returns for this group of taxpayers. It expects most, if not all, of these refunds to be available by April 5, and others the following week. (The date assumes that there are no other issues with their return, and that their refunds are not subject to any offsets for unpaid federal taxes or other debts.)

2. Taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home

3. Taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500)

These two issues require changes to IRS’ core tax processing systems. The IRS is actively working on the development and testing of the required changes that will allow these impacted tax returns to be processed and appropriate refunds issued. The IRS does not currently have a definitive date for when these changes will be complete, although it will be in April.

What should taxpayers do?

The IRS understands that taxpayers affected by this issue are anxious to get the status of their refund. For those who have already filed, no action is necessary. They can check “Where’s My Refund” at www.IRS.gov for updates. Because the IRS is already aware of this issue and is taking corrective action, there is no need to call.

For those who have not yet filed and are making a repayment of a First Time Homebuyer Credit this year, there is a simple step taxpayers can take to help speed processing. Couples filing a joint return for tax year 2010 who received the credit on their jointly filed 2008 tax return should file two 5405 forms, one for each taxpayer. For couples filing a joint return for 2010 but who had a different filing status in 2008 and only one spouse received the credit, the IRS recommends filing one Form 5405 for the taxpayer who received the credit.

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If you are in the market as a first time home buyer, be aware that the government tax credit window has expired, but incentives still remain. Working with a good real estate agent will go a long way you to make sure you take advantage of all available home buying incentives and breaks.

What Documents Do You Need To Buy Or Sell A Home?

Buying or selling a home can be intimidating from the strict point of view of the paperwork involved. What documents do I need? Where do I find these papers? What do I do if I can't find them easily? Who needs to produce what documentation to whom?

One of the things a good real estate agent will do is help their buyers and sellers get all the needed paperwork together. Great real estate agents are perfectly capable of assisting clients when documentation is missing or if there are problems that need to be fixed -- like a 20-year-old lien that was never lifted, or a deed was never properly transferred in a previous sale. Like it or not, things of that nature do come up and will completely destroy a sales process. So getting your paperwork together is an important first step. To make it a little easier for you, here is a list of 10 documents you need to gather together if you are about to buy a home or sell your home.

10 Pieces of Paper You Must Round Up to Buy (or Sell) a Home

March Makeover-For-Your-Home Series: Make The Walls Of Your Home Outstanding!

Nothing brightens up a room more effectively than a new coat of paint. But sometimes it takes more than a coat of paint to make a wall stand out for the right reasons: an unattractive ding or damage to a wall will certainly get noticed, but for all the wrong reasons. If you have some walls that need a face lift, here are the tips that will do the trick:

Repair Walls to Give Rooms A Fresh Face

By: Jane Hoback
Originally Published: January 14, 2011

Sooner or later you’ll repair walls that make rooms look worn out. Erasing dings, dents, and scuffs is an easy fix. We’ll show you how.


Patch drywall to smooth walls
A putty knife, Spackle, or joint compound can repair wall damage that ages a room.

Dents and dings: A quart of Spackle ($11) and a putty knife can fill dozens of small wall indentations. Spackle adheres to painted walls better than joint compound, though it takes a bit longer to dry. Cut wall repair time by thoroughly wiping away excess Spackle.

Fist-sized holes: Joint compound is your best bet when covering the mesh or drywall patches that cover big holes. You’ll need at least two thin coats of compound and fine grit sandpaper to blend repairs into the rest of the wall.

Nail pops: Nail pops travel in packs: Rarely do you see just one. To repair walls pocked with pops, hammer the popped nail back into the wall or pull it out with a needle-nose pliers; refasten the drywall to the nearest stud with a couple of screws, then fill dents with two or three coats of joint compound. Sand until smooth and flush with the rest of the wall, then repaint.

Remove marks for a clean start
Microfiber cloths are little miracles that erase the evidence of a childhood well spent, drawing on and caroming off walls. To get rid of scuff marks and fingerprints:

• Spray an all-purpose cleaner onto the cloth (never directly onto walls to avoid drips) and swipe the scuff. (Test a hidden spot to make sure the cleaner doesn’t take off paint with the mark.)

• Pour a little dish soap onto a damp cloth and wipe the mark.

• Dip a sponge into an earth-friendly and slightly abrasive paste of dish soap, baking soda, and water, and gently scrub grime. 

• To repair walls decorated with crayon marks, dab toothpaste onto a towel or toothbrush and scrub marks.

• Use Mr. Clean Magic Eraser ($3), the best instant wall cleaner around. Wet and wring the eraser before attacking scuffs.

Touch up what you can’t wipe out
Prepare for inevitable touch-ups by keeping leftover paint or at least recording the paint number and/or formula (paint names change). Don’t have the original? Scrape off a little and ask your paint store to match it.

For touch-ups, use the same type of brush or roller the original painter used. Feather the paint from the outside borders in.

If touch-ups stand out, paint the entire wall, making sure to paint corner to corner and avoid splatters onto the ceiling and adjacent walls.

Here in Southeast Texas many walls have the added difficulty of being textured, and on some wall and ceiling repair jobs matching the technique of the texture is an obstacle. If you are readying your house for sale, your Texas realtor will be able to assist in identifying home repair specialists or painters capable of assisting with more extensive wall repair work. Also be sure to identify your home value for the current market. Once the walls are repaired, you will enjoy how flawless your home presents, and whether for sale or just for your own enjoyment, renewed walls makes for a renewed home!

March Makeover-For-Your-Home Series: New Life to Wood Floors

Wood flooring is an attractive selling point to any home. So whether you are just seeking to beautify your flooring for spring and summer activities, or get your home in tip-top condition for sale, make sure your wood floors shine. If you are concerned that your wood flooring has a few dings and scratches or other unsightly flaws, then you will be pleased to know how easy it is to make those flaws vanish away. Check out this article I found:

Repair Wood Floors and Erase Ugly Scratches

By: Jane Hoback
Originally Published: January 14, 2011

Repair wood floors and scratches that make rooms look worn out. We’ll show you easy ways to put the luster back into your floors.


Camouflage scratches
Take some artistic license to hide minor scratches in wood floors by rubbing on stain-matching crayons and Sharpie pens. Wax sticks, such as Minwax Stain Markers, are great scratch busters because they include stain and urethane, which protects the floor’s finish.

Don’t be afraid to mix a couple of colors together to get a good match. And don’t sweat if the color is a little off. Real hardwoods mix several hues and tones. So long as you cover the contrasting “white” scratches, color imperfections will match perfectly.

Homemade polish
Mix equal parts olive oil and vinegar, which work together to remove dirt, moisturize, and shine wood. Pour a little directly onto the scratch. Let the polish soak in for 24 hours, then wipe off. Repeat until the scratch disappears.

Spot-sand deep scratches
It takes time to repair wood gouges: Sand, fill, sand again, stain, and seal. Here are some tips to make the job go faster.

Sand with fine-gauge steel wool or lightweight sandpaper.

• Always sand with the grain.
• Use wood filler, which takes stain better than wood putty. 
• Use a plastic putty knife to avoid more scratches. 
• Seal the area with polyurethane, or whatever product was used on the floor originally. 
• Apply the polyurethane coat with a lambs wool applicator, which avoids air bubbles in the finish.

Fix gaps in floor
Old floorboards can separate over time. Fill the gaps with colored wood putty. Or, if you have some leftover planks, rip a narrow band and glue it into the gap.

So there you have it: a path back to a beautiful floor!


The home selling process can be intimidating. Be sure to become familiar with the home selling process if you have never sold a home before. Doing so can prevent a lot of stress and help you to make the very best decision on a real estate agent and how to ready your home for sale. If you intend to buy or sell a home in southeast Texas, be sure to call Lauri Kent and her team.

March Makeover-For-Your-Home-Series: Freshen Up Your Doors

Today our March Makeover-For-Your-Home takes a look at the doors of your house. Not just your front door either, but all doors: bedroom doors, cabinet doors, the french doors that lead to the back yard. While it is true that investment in the front door of your home is the single best investment to increase the value of your home, all doors are the entryway to every nook and cranny of your home, and the doorknobs and door pulls are the baubles that provide that extra adornment that add to the beauty and uniqueness of the home. From vintage, retro, to modern, consider the possibilities of replacing the brass....

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Repair and Replace Door Hardware

To Update Rooms

By: Jane Hoback
Original Publish Date: January 14, 2011

Repair and replace door hardware that makes rooms look dingy and outdated. We’ll show you how door and cabinet pulls, knobs, and hinges can give your home new sparkle.

Repair and replace kitchen cabinet hardware

Replacing or repairing knobs and pulls on cabinets and drawers is a quick way to give your old kitchen a new look.

Cabinet hardware can be simple or ornate, and ranges from $1 a knob to $45 or more. Here’s your game plan:

• Repair loose knobs and pulls by tightening holding screws, replacing stripped screws, or plugging gaps with wood filler applied with a putty knife.

• Count the number of knobs or pulls you need before you head to the hardware store. Estimating will cost you time and money.

• To replace pulls, which are attached to cabinets by a screw at each end, measure the distance between holes--not the length of pulls--to assure a perfect fit.

• If you’re switching from a two-hole pull to a one-hole knob, choose hardware with back plates that cover door scratches and holes.

Tighten, polish, or replace door hardware

Nothing ages a room like a loose doorknob. You can tighten mortise-style doorknobs by simply tightening the setscrew on the side of the doorknob. For cylindrical doorknobs, you’ll need to take the doorknob apart.
           
Replace dated doorknobs with sleek door levers. For easiest installation, choose a lever handle lockset made by the same manufacturer. Prices range from $20 to $160.

Buy a commercial polish, such as Wright’s or Weiman, to make brass doorknobs shine. Warm water and a little dish soap or a homemade paste of equal parts vinegar and baking soda will scrub off dirt and make stainless steel and glass doorknobs sparkle.

Clean or replace door hinges

• Telltale paint on door hinges says someone did a sloppy job. To restore hinges, try these techniques.

• Wash with sudsy hot water.

• Scrub with a nylon brush or a toothbrush. A wire brush could damage the finish.

• Brush on paint stripper that is safe for all surfaces.

• Polish with beeswax furniture polish or brass polish.

Jane Hoback is a veteran business writer who has written for the Rocky Mountain News, Natural Foods Merchandiser magazine, and ColoradoBIZ Magazine.

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Stay tuned for for more March Makeover-For-Your-Home tips and tricks for improving the quality and value of your home. If your a southeast Texas resident and would like assistance in determining that actual value of your home, give us your information on our Your Home's Value form and we will be glad to assist you. Lauri Kent is a real estate agent serving Greater Houston and specializing in home sales of Spring TX, The Woodlands TX, and the whole Lake Conroe area. Enjoy browsing Lauri Kent's impressive featured properties for sale on her website.

March Makeover-For-Your-Home-Series: Renew A Room With Paint

There is nothing more obvious, and time-honored, than to freshen a room than a nice coat of new paint. If your walls are looking a little dingy, or if they are marred with the battle scars received from active kids armed with soccer balls and crayons, then a fresh coat of paint is an easy and very inexpensive way to make your home look renewed. And of course, a fresh coat of paint is a must-do if your are in the process of selling your home. What do you need to know about interior latex that you didn't already know? Read on and see: the proof is in the paint.

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Low-VOC Paint Protects Health, Pocketbook

By: Joseph D'Agnese
Original Publish Date: October 13, 2010

Low-VOC paints are kind to your health, and they won't break the bank, either. Learn more about these eco-friendly ways to brighten a room.

VOCs health hazards

Volatile organic compounds (VOCs) are solids and liquids that convert easily to gas or vapor at room temperature. VOCs are contained in many paint products and have been linked to a variety of health problems--watery eyes, headaches, asthma, respiratory diseases and cancer.

Common paint VOCs

Common VOCs in paint include ethylene glycol (the same chemical compound found in antifreeze), formaldehyde, benzene, and a variety of other flammable or toxic chemicals. The paint’s materials safety data sheet (MSDS) lists the hazardous materials the product contains. Laminated MSDS sheets are usually displayed in paint stores, or you can download them from a paint manufacturer’s website.

VOC regulations

Current EPA regulations limit VOCs to 250 grams/liter in latex paint, and 380 grams/liter in oil-based paint. Low-VOC paints, now available from most major manufacturers, clock in at less than 50 grams/liter in flat paints, and 150 grams/liter in gloss paints. Some go even lower, hitting 25- or even 10-gram/liter benchmarks.

A paint that has 5 grams or less/liter can claim “zero-VOC” status.

Low-VOC price

Painters shy away from low-VOC paint, thinking it’s more expensive than the stuff that’s hazardous to their health. In fact, low-VOC and zero-VOC paint are comparable in price to any paint that’s comparable in coverage.

Price is determined by how much bang you get from a gallon. Benjamin Moore’s zero-VOC Aura paint sells for almost $60 per gallon, not because it’s zero VOC, but because it is self-priming and requires only two coats to cover a room. Benjamin Moore’s low-VOC line, Ben, costs about $35 per gallon, comparable to other VOC-laden premium paints.

Tints and VOCs

Even if you buy low-VOC paint, you can unwittingly raise toxic levels by adding tints tainted with VOCs. Low-VOC tints are available, so ask for them when lightening or darkening paint.

Joseph D'Agnese is a journalist and book author who has written numerous articles on home improvement.

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More March Makeover-For-Your-Home tips and tricks are coming, all to give you ideas for improving the quality and value of your home. If your a southeast Texas resident and would like assistance in determining that actual value of your home, give us your information on our Your Home's Value form and we will be glad to assist you. Lauri Kent is a real estate agent serving Greater Houston and specializing in home sales of Spring TX, The Woodlands TX, and the whole Lake Conroe area. Enjoy browsing Lauri Kent's impressive featured properties for sale on her website.

March Makeover-For-Your-Home Series : Kitchen Counter Top Makeover

We are kicking off our March Makeover-For-Your-Home series with a focus on how to give a face lift to your kitchen counter tops. Especially if you are planning to sell your home in the near future, taking a close look at the condition of your kitchen counter top is critical, since a home's kitchen is a central selling point. The following article will be very useful to help you determine whether you can do a quick and easy repair to your kitchen counter top, or whether it might be more productive to replace it.
 

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Repair and Replace Kitchen Counters to Stay on Top of Scratches

By: Jane Hoback
Original Publish Date: January 14, 2011

You can repair kitchen counter mishaps with only a little time and money. Big boo-boos, however, will need professional help.

Granite
Even granite counters suffer kitchen wear and tear. But you can make them shine with a little time and know-how. After you fix them, don’t forget to reseal them.

Cracks, chips, scratches: Fill nicks in granite by building up layers of epoxy resin colored to match the stone. Clean the area first with acetone, which breaks down grease. Be sure to open a window for ventilation.

Stains: The type of stain--wine or ink, oil or bleach--determines the type of poultice you’ll need to suck it out. A paste of flour and hydrogen peroxide pulls out grease, oil, bleach, and ink stains; a mix of flour and bleach cleans wine stains. If you want to go commercial, check out Alpha, Aqua Mix, and StoneTech stone cleaners. Cost: $6 to $20.

Solid surface counters
Solid surface countertops, such as Corian, are man-made from resin, acrylic, and other materials. They’re tough but not impervious to scratches and stains. To repair minor scratches, rub a white polishing compound on the area with a wool pad, then apply a countertop wax.

For deeper scratches or cuts, call a professional. Figure labor costs at about $15 to $35 an hour. If you need to replace portions of the counter, figure at least $35 to $65 per square foot.

Laminate
Fixing gouges or covering burns in laminate is tough for mortals, though repairing minor problems is doable.

Fix small chips with laminate repair paste that matches the color of the countertop.
Cover scratches with countertop polish or car wax.
Fix peeling laminate with contact cement applied to both surfaces and pressed back into place.
Remove coffee and tea stains with vinegar or a paste of baking soda and household cleaner.
Bigger problems will require replacing the damaged stretch. Laminate comes in a billion colors, but finding an exact match for an old counter could be difficult.

To get the look you want, replace the counter. Labor will cost $15 to $35 per hour; countertops range from $3/linear ft. for Plain Jane straight-edged laminates to $100/linear ft. for laminates with a beveled edge that look like granite.

Tile
If you’ve planned ahead and stockpiled old tiles, then grab a few and replace cracked or scratched areas. If you don’t have extra tile, then attempt the following first aid:

Wipe away scratches with a dab of toothpaste on a clean cloth.
Work epoxy glue into cracks with a toothpick, then color with matching oil-based artist paint.
Remove old grout with a utility knife, then replace with a rubber trowel.
Stainless steel
Stainless steel countertops become scratched, stained, and dull over time. While you’ll never completely remove scratches, you can buff them into a warm patina by massaging with vegetable oil.

Remove stains with a paste of baking soda and dish soap. A sprinkle of Barkeeper’s Friend will remove stains without scratching.

Jane Hoback is a veteran business writer who has written for the Rocky Mountain News, Natural Foods Merchandiser magazine, and ColoradoBIZ Magazine.

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Stay tuned for for more March Makeover-For-Your-Home tips and tricks for improving the quality and value of your home. If your a southeast Texas resident and would like assistance in determining that actual value of your home, give us your information on our Your Home's Value form and we will be glad to assist you. Lauri Kent is a real estate agent serving Greater Houston and specializing in home sales of Spring TX, The Woodlands TX, and the whole Lake Conroe area. Enjoy browsing Lauri Kent's impressive featured properties for sale on her website.

Things are Looking Way-Up for Houston Area Real Estate

Winter is usually a tough time for real estate, but there is much to be excited about regarding the housing market of the greater Houston area. How have the number-crunchers determined such uplifting statistics? They base their prognosis on January 2011 numbers, which are far from bleak. Here is what Houston Area Realtors has released regarding the improved housing market:

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The New Year Ushers In Houston's First Increase In Home Sales In Seven Months

The latest MLS release with January 2011 residential sales statistics has been posted in the HAR Newsroom. Please click HERE to read the release. It will be distributed to the media today so it will likely be reported in the newspapers and on TV, radio and the Internet in the next couple of days. For your convenience, you may also view the video of HAR Chairman Carlos P. Bujosa discussing the statistics embedded within the release.


In an effort to keep our members as informed as possible about the real estate market, we wanted to make you aware of the latest statistics. Obviously, it is important to remember that "all real estate is local," and these figures are for the aggregate of the greater Houston area. That is why we strive to encourage all consumers to seek the guidance and assistance of their REALTOR® who has the most experience and market knowledge about their particular localized market.

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The housing market in the towns and communities north of Houston certainly reflect this as well:

• For Spring, the median price of existing single-family homes fell to $139,950 - down -8.3% December to January.
• The Woodlands rose dramatically to a median price of $329,450, +21.1% December to January.
• In Conroe, the median price rose 4.1% to $159,000
• Montgomery  rose to a median price of $235,000, that is up +34.3% December to January. 
• Willis, TX rose to $116,900 median home selling price, up 21.1% from December to January.

So, for those homeowners in the Houston area who have been putting off the sell of their property for brighter days, the sun appears to be rising. For more great tips on accomplishing a successful and profit-maximizing sale, check out Lauri Kent's How to Sell Your Home page for some important tips, and please enjoy browsing Lake Conroe Realty Now for all the beautiful Lake Conroe waterfront homes for sale, and other excellent properties for sale north of Houston. 

The Dismantling of Freddie and Fannie: What The Future Brings

If you haven't heard the recent news about Freddie and Fannie being dethroned from the realm of home loan guarantors, it's true. Well, sorta. The proposal has been made, but how to implement it is another thing. When it comes to protecting the value of your home, and the value of your future home, it is important to follow what direction they decide to go with this one. After all, housing value across the country is down, home ownership is down, distressed real estate is up... and it all started with loans that the federal government could no longer back up. It presently affects your ability to buy a home or to sell your home. From RISMEDIA:

"In a move that had been widely anticipated, the Obama administration said last week that it wants to get the government out of the mortgage business by winding down operations at Fannie Mae and Freddie Mac over the next five to seven years.

“Fundamental reform” is the aim, Treasury Secretary Timothy Geithner said in announcing the plan to not only “shrink the government footprint in housing,” but also “strengthen consumer protection and preserve access to affordable housing for people who need it.”

While it seems counter-intuitive that the present administration would proactively execute measures to, in fact, get the federal government out of the mortgage business, it is more important to look at what are the implications of this move, and how the real estate industry is reacting. RISMEDIA outlines some of the implications of it:


The plan calls for:

• Withdrawing government support of housing finance by gradually eliminating Fannie Mae and Freddie Mac, which would bring private capital back into the market. The government now guarantees nine of every 10 home loans, which Geithner says has discouraged private capital’s return.

• ”Leveling the playing field” for private capital by gradually making it more costly to get a loan at Fannie and Freddie.

• Reducing conforming loan limits—the maximum size of loans the two government-sponsored enterprises (GSEs) can guarantee—after temporarily increasing them, as scheduled, on Oct. 1. Geithner said the administration would work with Congress to make other changes in the future.

• Phasing in a 10% down-payment requirement for Fannie and Freddie borrowers, “to further protect taxpayers.”

• Winding down Fannie and Freddie investment portfolios at the current annual rate of 10%.

RISMEDIA further explains what the reaction has been: 

Though the stocks of private mortgage insurers such as Radian Group Inc. of Philadelphia rose shortly after Geithner’s announcement, reaction from other corners of the housing industry was less enthusiastic.

The 160,000-member California Association of REALTORS® said the plan would raise borrowing costs and restrict a safe and affordable flow of financing, further impeding a still-fragile housing recovery.

American Bankers Association CEO Frank Keating suggested that rather than develop a “silver bullet” solution to housing finance, policymakers should create a well-regulated covered bond market and enhance the Federal Home Loan Banks “to better help them meet their mission of providing advances to private market portfolio lenders with minimal taxpayer exposure.”

Saying that Fannie Mae and Freddie Mac’s multifamily programs “were not part of the meltdown” and are a “vital capital source for the rental-housing sector,” National Multi Housing Council President Doug Bibby urged the government to be cautious in its reform efforts.

Yet economist Anthony Sanders, a professor of real estate finance at George Mason University in Fairfax, V.A., said that aside from saving U.S. taxpayers hundreds of billions of dollars in the future, not much will change in a world without Fannie and Freddie.

“After pumping trillions into the mortgage market since 1998 through the GSEs, the homeownership rate is back to 1998 levels,” Sanders said. “Enormous pain and suffering occurred in the United States trying to go from 66 percent to 70 percent homeownership.”

So there are still proponents of government-backed mortgages, and those who look at the dismantling of Freddie and Fannie as long-overdue. According to The Wall Street Journal, just because the administration has declared that the Federal Government is leaving the mortgage industry does not really mean the Federal Government is leaving the mortgage industry. In his article "Views of Life After Fannie, Freddie" by Nick Tamaraios, he writes:

Producing three different options, instead of one clear recommendation, reflects the fact that there isn't a strong consensus within the administration or Congress, said Laurence Platt, a banking industry lawyer at K&L Gates in Washington. He described the proposals as "Goldilocks and the three options—one's too hot, one's too cold, one's just right, but everyone disagrees which one is which."

Bottom-line, what this means to you is that in the future, you can probably count on everyone's home purchase to be "one you can take to the bank," and the security you can have in the integrity of home purchase loans in general means security in the housing market. It also means that home loans will likely become not-too-easy, so now more than ever it is good to take care of your personal financial fitness and carefully monitor and improve your credit score before thinking about purchasing a house. It is also important to have a real estate agent who can be very effective in helping home buyers and home sellers navigate the purchase process, to make sure it goes smoothly, that there are no suprises, and that proper preparation is made. If you are a home buyer or a home seller in the Greater Houston Area, especially north Houston areas of The Woodlands, Spring, and Conroe/LakeConore, the Lauri Kent Team is exceptional in understanding the real estate micro markets. Call or Contact Lauri Kent Team with your real estate questions.

When Tax Time Can Be Fun

It’s that time of year again! Woo-hoo, time for that annual paperwork party chock-full of party games like Deduction Decipher and Adjusted Gross Income Gotcha.

Okay, so maybe the only people looking forward to this shin-dig is the IRS man, but it is up to us taxpayers to make sure that we keep as much of our earnings as we can. Prosperous people are people who consistently exercise financial fitness. As a Real Estate Agent, I likewise believe that maintaining the health of property value is a direct extension of wealth maintenance acumen (and, by the way, it is always a good idea to regularly check your home’s value). Educating yourself on how to not over-donate to Uncle Sam fits into the category of “Smart Saver” very well.

Tax Time: 5 Tips to Put More Money in Your Pocket

RISMEDIA—Taxpayers receive the most important tax form of the year in January: Form W-2, Wage and Tax Statement. Your 2010 income tax and future Social Security benefits are based on it, so its accuracy is vital to your short- and long-term financial health.

The American Payroll Association offers W-2 tips to save you time, money and headaches this tax season:

1. Increase your paycheck in 2011. The average person overpays taxes by nearly $250 a month, according to the IRS. Making minor adjustments to Form W-4 can increase your paycheck. The W-4 assistant at www.nationalpayrollweek.com/W4 helps determine the withholding allowances you claim on Form W-4.

2. Don't forfeit free money. Read the back of W-2 copies B, C, and 2 to determine if you are eligible for credits. You could be missing out on thousands of dollars in tax credits.

3. Review your W-2 carefully against your final 2010 paystub. If your W-2 seems incorrect, contact your payroll department.

Important items to review:
A. Box 1 should differ from your final 2010 paystub year-to-date gross pay if you participate in a 401(k) or other employer-sponsored savings plan.
B. Box 3 total should not exceed $106,800 – the 2010 social security wage base.
C. Boxes 1, 3, and 5 should be less than your final 2010 paystub year-to-date gross pay, if you use pre-tax deductions to pay your insurance premiums or to contribute to medical or dependent care, parking, or transit flexible spending accounts.

4. Ensure your Social Security Number (SSN) matches your Social Security card. The name and SSN on your W-2 must match your Social Security card to receive your benefits. Ask the payroll department for a corrected W-2 if they do not match.

5. Make sure you get all your tax forms. You should receive a W-2 from every company that paid you in 2010 by January 31. Contact the payroll department of any company you worked for in 2010 that didn't send you a W-2. Request a 'reissued statement' to replace lost W-2s. If you earned more than $600 from a single company for any freelance or contract work, you should receive Form 1099-MISC, Miscellaneous Income, instead of a Form W-2.

The Lauri Kent Team believes that in all things, it is important to work smart as well as work hard. Our clients can attest that we truly exercise this philosophy: we do our homework on real estate. If you are looking at buying or selling a home in or around Southeast Texas, give us a call and see if The Lauri Kent Team can answer all your questions.

Will 2011 Bring End To A Long Credit Market Winter?

Since the 2008 Housing Market Crash, the beleaguered Credit Market, which is responsible for the issuance of mortgages, has struggled to regain its footing with lending practices. Real estate sales have been sluggish in large part to the current rigidity of the Credit Market, sluggish real estate sales impact the value of everyone's home, and those seeking to buy a house, even though prices homes are incredible, can only obtain the financing needed with good and improved credit ratings. So improvements in the Credit Market should be welcome new to all homeowners and would-be homeowners everywhere. And guess what? There are some who prognosticate that 2011 may bear good news on this front. Let's look at it:

Report: U.S. Credit Markets May See an Early Spring Thaw

RISMEDIA— U.S. credit appears to be on the mend, but the recovery is still in its early stages. That is the key message of a report released by TD Economics highlighting a number of positive developments in U.S. credit markets over recent months.

In October, responses to the Federal Reserve's Senior Loan Officer Survey showed that commercial banks' willingness to lend to consumers is hovering around its highest level in the last five years. The easing of credit standards has coincided with a drop in delinquency rates, signaling a general improvement in credit quality. Although delinquencies on real estate loans remain elevated, delinquencies on unsecured loans to consumers and businesses have seen a steady, downward trend since 2009.

"The improvement in credit quality is important," says TD Chief Economist Craig Alexander. "It could mark the beginning of a virtuous cycle where better credit quality leads to more credit growth and improved economic growth – which in turn feeds back into greater credit quality."

Developments in the market for unsecured credit – such as credit cards and student loans – do give particular cause for optimism. Unlike mortgage credit, which is secured by the value of a person's home, unsecured consumer credit is backed only by the lender's faith in the borrower's ability to repay.

Unsecured lending seized up during the recession, falling 7.4 percent from its peak reached in 2008. However, the data suggests that unsecured lending is growing once again. Adjusted for charge-offs (a one-time hit that banks take on delinquent accounts that they deem unrecoverable), total consumer credit is up almost 3 percent from a year ago.

In general, the uptick in lending has important implications for the economic recovery.

With banks more willing to lend, there are more resources available to finance investment projects that will boost output. Also, the expansion of credit, while raising the supply of money in the economy, will help counter the threat of deflation. This is particularly important because deflation erodes the value of earnings, making outstanding debt obligations more expensive to service.

Nevertheless, Alexander cautions that the picture is not all tea and crumpets. Some lenders are still reeling from a real estate mortgage delinquency rate that peaked around 10 percent during the recession – up from less than 2 percent earlier in the decade. Although the delinquency rate has inched down in recent quarters, it remains elevated by historical standards.

"Without a resolution in housing, improvement in other sectors of the economy can only push the gas pedal so far," Alexander concludes. "At the same time, the fact that credit quality is improving outside of mortgages shows that resolving issues in housing and commercial real estate could lead to a much faster pace of economic growth."

So if you are in the market for purchasing a home in the North of Houston area communities: Spring, TX real estate, The Woodlands homes for sale, or Lake Conroe homes, but have had recent roadblocks of inflexible lenders, let Lauri Kent work with you to make sense of home buying finance issues.

Why Don't My Credit Scores Match?


By Jeff Mandel and Marlin Brandt

RISMEDIA, January 12, 2011—Perhaps your clients have truly realized that now is a great time to buy and they want to take advantage of some great home-buying opportunities before they disappear.

Interest rates are still low for people with excellent credit, so advise your clients to update their records and purchase a credit report from a reputable credit report provider.

However, while the score they saw was a 920, they score the lender pulls up is an 810—what happened?

What Happened?

First, you need to understand a little about credit scores. Your credit score is a three-digit number that helps lending institutions assess their risk associated with lending you money. Credit scores are used for home loans, auto loans, personal loans and credit cards.

However, it doesn’t end there. Your score may also be considered for non-lending purposes, such as new utility services, cell phone services, renting an apartment, a lease, auto insurance and even to assess your character as part of a new job background check.

People with lower credit scores may pay higher interest rates or may not be approved at all. Whereas, those with higher, less-risky credit scores often qualify for lower interest rates and special options. Credit scores are calculated based on computer “predictability” models. These models are designed to compare and analyze credit information and credit utilization patterns from your credit report against thousands of other consumers. The data is then evaluated using a complex mathematical algorithm that generates a credit score the moment a report is ordered.

There are literally trillions of score combinations used in the calculations. Most credit scores are calculated and provided individually by each credit bureau, including the three major ones in the U.S. , which are Experian, Equifax and TransUnion. Additionally, many lenders use third-party credit scoring systems, such as FICO, NextGen, CE Score and VantageScore. For consumers, the variations in scoring models and score ranges can create some confusion.


In 2006, the three major bureaus joined forces to create a single credit scoring system called the VantageScore. The VantageScore and FICO model lead the industry as competitive rivals in credit-scoring systems.

VantageScore provides a standardized universal mathematical formula to create a credit score from data found on reports from the three major bureaus. Your VantageScore may not be exactly the same if your lender only orders a credit report from one of the bureaus. This is because the data each bureau receives may be slightly different.

As an example, if your auto loan lender does not report your payment history to Equifax but does report it to Experian and TransUnion, it will create a difference in scores. In theory, the VantageScore should be more consistent across all three bureaus since the mathematical formula is the same.

Unlike FICOs traditional 300-850 credit score range, the VantageScore ranges from 501-990. There is no true way to compare the results of the VantageScore to a FICO score especially when the formulas are constantly changing. However, to put some perspective in place, a 650 FICO score approximately compares to a low, 800-range VantageScore.

Although the exact formulas and algorithms for calculating credit scores are closely guarded secrets, FICO and Vantage do provide general key characteristics that drive their credit scoring models. The one constant for both scoring systems is that paying your debts on time will typically be the primary factor that positively impacts your credit score.


Click here for the current local housing trends:

http://www.blogger.com/goog_565786052

Lauri Kent
Keller Williams Realty
2200 N FM 3083 W
Conroe , Texas 77304
281-703-5740 cell
936-447-6000 home
936-441-8001 fax
http://www.lakeconroerealtynow.com/
need a break, check our vacation rentals at:
www.vrbo.com/134046 & www.vrbo.com/246370

BE A SMART FORECLOSURE BUYER

You may be thinking about buying some distressed property as an investment. Now more than ever, there are great deals to be had in foreclosure properties, but if you are new to buying foreclosures, equip yourself with these insights that can protect you from clostly mistakes. Then do your homework, and research the foreclosures in your area. And how to make sure that investment turns a profit requires knowing how real estate property best results in a good investment.

4 Tricks and Traps Foreclosure Buyers Need to Know

By Tara-Nicholle Nelson

Interest in buying a foreclosed home is on the rise, but so are concerns about the risk involved in the process. In a December survey, Trulia found that 49 percent of Americans were at least somewhat likely to consider buying a foreclosure, up from 45 percent in May 2010.  But the number of US adults who believed there are disadvantages to buying foreclosures had also increased, from 78 percent to 81 percent over the same time frame.  Among those folks who had qualms about purchasing a foreclosure, the top concerns were:
that buying a foreclosure might involve hidden costs, that the buying process itself is risky, and
that the home might continue to lose value, after escrow closes. While there certainly are risks that run with buying a foreclosed home, the most risky way to do it is also the least common method: at the foreclosure auction itself. Auction buyers often don't have the opportunity to fully vet the foreclosure to ensure that they are receiving clear title and/or to make sure they're not getting a lemon. With that said, most foreclosures are resold not at the foreclosure auction, but as an REO (short for Real Estate Owned - by the bank), listed by a real estate broker on the Multiple Listing Service and on Trulia!
When you buy an REO in this way, you have lots of opportunities to use some tricks of the trade, so to speak, to avoid some of the traps you may fear. Here are my Top 4 Tricks and Traps for Foreclosure Buyers:
1.  As-is means as-is, period.  (Most of the time.) Banks have very little interest, inclination or even the logistically necessary resources to execute repairs on your home. Many of these homes are managed by an asset management company in another state, and may not even have a local person besides the agent who can handle large repairs. Generally speaking, bank-owned homes are sold on a very strict "as-is, where-is" basis, which just means that you should expect to take possession of it, if you buy it, in exactly the position and location it is, no matter how defective.  Do not walk into a viewing of a foreclosed home, notice how the plumbing is all ripped out of the wall, and make an offer for it, assuming you'll be able to get the bank to "fix" the issue later.  Usually, if the bank is willing to do any repairs to a foreclosed home, they do so, on the advice of the listing agent, prior to the home being listed.
Out of hundreds of foreclosure transactions I have personally been involved in, I have seen exactly four where the bank did agree to do some level of repairs at a buyer's request.  Every one of those times, the repair was to fix a health-and-safety endangering property defect, like a gas-leak or an electrical fritz. And every one of those times, the property defect was highly non-obvious - not something even a diligent buyer could have detected visually prior to making an offer.  Maybe another few times I've seen a bank agree to a small price reduction due to surprising condition problems.  And dozens of times, I've seen transactions fall apart or buyers take on the property’s repair costs, when they request repair credits, price reductions or actual repairs from the ban seller.
If a foreclosure you're considering has obvious property damage, have your contractor stop by with you or gather whatever information you need to get as comfortable as possible with your offer price, assuming that the bank will not be chipping anything in for repairs, before you make the offer.
2.  The bank speaks no evil.  When it comes to real estate disclosures, the fact is, the bank speaks not much of anything!  Many states exempt banks and other types of corporate homeowners from making substantive disclosures about the condition of the property.  Even in jurisdictions where the bank is not legally exempt, most banks will simply write across the required disclosures something to the effect that the bank has no knowledge of the property's condition.  (Before you protest with a "that's not fair!!" keep in mind that the bank never lived in the property, so most often truly does have no idea of any important facts or details about its condition or location, the things an average home seller would be required to disclose.)
Even in a normal transaction, it behooves a buyer to be thorough in having the property inspected and meticulous about reviewing the resulting inspection reports.  But buying a foreclosure ups even that ante, as you have no seller disclosures to highlight particular problems you should have looked at, and none of the usual legal recourse you would have if a “regular” seller made incomplete disclosures.  Get a property inspection.  A pest inspection.  A roof inspection.  A sewer line inspection. A pool inspection, if you have a pool and care about its condition.
Yes - all these inspections cost money, but the drama and thousands each of them can save you is well worth it. And read your state’s buyer inspection advisory or similar document (ask your agent), just to make sure you’re aware of all the inspections that are available to you, and work with your agent to determine which ones make sense, and which are not appropriate.
Some insider tips:
Vacant foreclosures often have their utilities disconnected.  Work with your agent to make sure the utilities get turned on - even for a single day - so that your property inspector can run the water taps, test the stove and dishwasher, see if the water heater and electrical outlets work, and so forth.
If appliances are there, the bank will probably leave them there, even though they may not have technical “legal” ownership of them, so they may not be included in the contract, like in a "normal" home sale.
However, the bank will not give you any sort of warranty on appliances, so try to obtain any warranty coverage you want or need elsewhere - from a home warranty company or, potentially, the original manufacturer/retailer.
3.  The contract terms, they are a changin'. One thing squarely in the wheelhouses of local real estate pros are local market standard practices.  From negotiating practices to which party pays which closing costs, every market is different, and experienced local agents are experts on this information.  If you’re buying a foreclosure, though, the bank will often require you to use it’s own purchase contract, rather than the more commonly used state forms.  Many times, this is done to advise the buyer of the bank’s refusal to make substantive disclosures (see above) and to change some of the normal practices for your area to the bank’s standard practices. 
For instance, if you are buying a home in a contingency state, where you would usually have to sign a document proactively releasing contingencies, the bank’s contract will probably change that, so that your transaction operates on an objection period. In "objection" based transactions, you  have a certain period of time in which you must either speak up about your concerns with the property and/or cancel the deal, or you will automatically be presumed to be moving forward with the deal and your deposit money will be forfeited if you change your mind after that date. 
If you’ve been making offers on non-foreclosures on the standard contract form, or you’ve bought homes before and think you know the drill, please - I implore you - READ every word of the contract you sign when you buy a home from the bank, and ask your broker, agent or attorney to explain anything that doesn’t make sense.
4.  Expect the unexpected.  When you buy a foreclosure, you might end up working with the bank’s escrow company, instead of a company you or your agent selects.  And the bank's escrow provider might be slow or disorganized.  C’est la vie. The bank might rush you for your deposit money, but take their own sweet time coming up with the necessary signatures on their end to close the deal.  Par for the course.  You might expect that the bank would be desperate for buyers, and instead find out that there are 20 offers on the same REO.  Or, you might be the only offer and still get your aggressively low (but still reasonable) offer rejected, only to have the bank reduce the list price of the home to the same price of your offer!  (They often want to see if exposing it to other buyers at the new, lower list price might generate more interest and higher offers.) 
When you’re buying a foreclosure, expect glitches, expect your calendar to be derailed, expect the bank to be inflexible and possibly even unreasonable.  It’s not overkill to ask your broker or agent to brief you on the common complications they see in REO transactions.  Having realistic expectations may keep you from pulling your hair out.  And if the transaction turns out to run smooth as silk?  You’ll be pleasantly surprised.

So remember that, like anything else, becoming a highly profitable foreclosure investor requires some experience and know-how. The market is ripe with opportunity, however, so if you desire to take advantage to current opportunities, then have the confidence in knowing that a seasoned real estate agent can help you navigate these foreclosure waters. If you have any questions about foreclosures anywhere around the Houston and Southeast Texas region, contact Lauri Kent.  Also visit the website for more information about Lauri Kent and her team of real estate professionals.

"...a great bellwether for the economic situation of the country."

It may be old news that Detroit is declining since the American auto industry took a tumble. And, simply based on who you see moving to your neighborhood, it may be no surprise to you that Texas is a state to which people are flocking right now, especially from New York, New Jersey, and Ohio. Migration trends tell us much about the state of affairs across the country, and from that we can extrapolate some good and practical insight into the condition our state is in, and more to the point, the condition of your real estate value.

Where is America Moving?
Top Migration Trends Seen in 2010 

According to the 2010 Atlas Van Lines Migration Patterns study, more Americans are on the move. In 2010, Atlas saw increases in the number of household moves, a possible sign that the economy is improving. Atlas' annual study has tracked the nation's moves since 1993.

For some states, outbound moves were high. Due to high unemployment, especially with declining manufacturing and automotive jobs, residents of the Rust Belt continue to relocate elsewhere. States adjacent to the Rust Belt saw a great increase in the number of inbound moves.

For the first time in two years, Kentucky joined its surrounding Mideast states—North Carolina, Maryland, and Washington, D.C.—as inbound states. For the fifth year in a row, Washington, D.C. had the highest percentage of inbound moves, while Ohio came out the clear leader in the highest percentage of outbound moves.

Regardless of economic highs and lows, several states have remained constant in status for 10 or more years. California, Kansas and South Carolina have been balanced, Indiana has been outbound, and Alaska and North Carolina have remained inbound.

As the year progressed, Atlas saw increases in the monthly totals of household moves. Summer months continued to see the highest number of moves per season. Overall, the total for 2010 was 74,541.

"Every year we look forward to sharing the results of the Atlas migration study; it is a great bellwether for the economic situation of the country," said Jack Griffin, president and COO of Atlas World Group. "The results are especially promising this year, as the number of moves has increased, with monthly numbers higher than last year's."

Here's a closer look at relocation patterns in 2010 as identified in the Atlas study:

Westward-Ho!
Much of the West continues in a balanced state. For the first time in three years, Idaho moves from an outbound state to a balanced state, joining California, Oregon, Washington, Nevada, Montana, Colorado, Utah and Arizona.

Déjà Vu
For several states, economic ups and downs have had little influence on the number of residents moving in or out of that state. For ten or more years, six states - California, Alaska, North Carolina, Kansas, South Carolina and Indiana - have remained constant in their inbound, outbound or balanced status in Atlas' annual study.

Silver Lining
Despite high foreclosure rates and poor housing sales, a large pocket of southeastern states - including Florida, Alabama, Georgia and South Carolina - saw no drastic increase in the number of outbound moves; in fact, they remained balanced in their number of outbound and inbound moves. A reason for the balance could be these states' popularity as a retirement destination.

For full results of the migration study and to view a map and annual histories for each state, visit www.atlasvanlines.com/migration-patterns/.




AfterWord
The Southeast Texas region may be a bit healthier, economically speaking, than the rest of the country, but we, too, have our share of economic and real estate challenges. Distressed real estate and foreclosures are an issue here, too, but one man's distressed real estate can be another man's real estate opportunity. IF you are in the market for investing in foreclosure property in the North Houston area that includes Spring, The Woodlands, Conroe/Lake Conroe, Montgomery, Magnolia or Willis, please check out MLS Houston Area foreclosure listings on our website.

New Year, New Financial Fitness Good Habits

It's a new year, and a new opportunity to resolve to build your wealth and make better decisions that will effect your long-term goals.  No matter where you find yourself at the present moment - whether in the comfort of a secure job or if you are presently unemployed - taking control of your situation will benefit you greatly. Here are some great tips that can help you no mateer where you find yourself on the financial spectrum. When the time comes that you need to make a large purchase, like the purchase of a home, the efforts you make now will make all the difference then. Home buying Financial Fitness is of course our special concern.

Use New Year to Build New Financial Foundation 

By Pamela Yip

RISMEDIA—This is your chance to start fresh with your finances, another opportunity to achieve the goals you didn't hit in 2010.

"The new year gives us all an opportunity to make decisions and take action," said Thomas Murphy, partner and certified financial planner at TEMAA Financial in Dallas. "I suggest 2011 be the year you take control of your finances."

MAKE YOUR GOALS CONCRETE: What are your financial goals? How will you achieve them? Without this blueprint, you'll be chasing your tail, worrying about which stock or mutual fund to invest in. Having no real plan could result in higher risk than you need, scattered and duplicate investments, and high fees.

Be specific about your goals. Don't just say, "I need to pay down my credit card." Instead, say you want to put a specific amount toward your credit card bill next year and you will achieve that by paying a specific amount each month.

Clearly defining a goal enables you to develop a concrete plan for achieving it.

"Come up with a plan on how to become debt-free, either on your own or with debt counseling," said Todd Mark, vice president of education at Consumer Credit Counseling Service of Greater Dallas. "What matters is taking those steps."

Becoming debt-free also means changing your mindset toward debt.

"Like most people who are used to carrying the extra weight around the middle, people get used to carrying debt and saying, 'That's where I am right now,' " Mark said. "We want to change that. We don't want them to accept it, and we don't want them to be comfortable with it."

SPEND STRATEGICALLY: "Make the decision that you will not spend one dime unless it is to help you achieve your goals," Murphy said. "No more spending money on things you no longer care about or to impress the neighbors or for any other reason, except it is part of your path to achieve financial success, however you define it."

TRACK YOUR SPENDING: "Record every penny you earn and every penny you spend for at least 90 days," Murphy said. "If you have no real idea how much money you make or where it all goes, you are not in control."

SAVE MORE MONEY: Always pay yourself first each month. It doesn't have to be a large amount of money. It just has to be consistent and left alone as much as possible. The compounding effect over time will take care of the rest.

"Set up a program to save the difference between what you earn and what you spend," Murphy said. "Save first, spend after. Stretch to save at least 10 percent of your income. Put the savings in an emergency fund and commit that you will only touch it for real emergencies — unforeseen and unforeseeable events. Set a goal of accumulating six months of living expenses in this emergency fund."

Take advantage of all opportunities offered by your employer to save money, such as through a 401(k).

"Those savings which come automatically out of your pay are best,"
Murphy said.

PAY OFF OR PAY DOWN DEBT: Debt is one of the biggest obstacles to achieving your financial goals. It will divert your money and cause your financial journey to come to a screeching halt.

"The more you owe, the less control you have over your life," said Calvin Helin, a demographic economic trend analyst and author of the upcoming book, "The Economic Dependency Trap: Breaking Free to Self-Reliance."

"Debt puts you in a position of seeking to pay off your debt rather than pursuing other areas of life that might be more rewarding. It is one of the biggest sources of family stress."

If you racked up credit card debt for the holidays, aim to pay it off in three months.

"If you haven't paid off your holiday debt by the time you've gotten your tax refund, there's a good chance you're going to continue to be paying on that during the holidays in 2011," Mark said.

Commit to paying credit cards off every month, Murphy said.

"If you find you cannot resist the temptation to buy, cut up all but one card and leave that card at home," he said. "Use it only for important purchases after careful thought and a plan for how and when you will pay it off."

Getting rid of the anxiety of high-interest rate debt is a far better gift than almost anything you could buy.

"Those who understand interest earn it; they do not pay it," Murphy said.

MAKE YOUR GOALS REALISTIC: "Don't say, 'I'm going to be debt-free and a millionaire by the end of 2011,'" Mark said. "Maybe you can say, 'I have a goal of paying down $10,000 in debt in 2011, and I want to be debt-free in four years.' "

PROTECT YOUR INCOME AND ASSETS: "Find out if your employer offers disability insurance and life insurance," Murphy said. "If so, buy it.
To determine how much you need, conduct a financial fire drill and imagine you are permanently disabled. How much money would need to come in the door to allow you and your family to maintain your standard of living?"

FOR THE LONG-TERM UNEMPLOYED: Your aim is to stabilize your finances as much as possible.

Besides the obvious priority of landing a job, you should analyze what financial resources you still have to sustain you.

"If you've been unemployed for awhile, try to get a part-time job at night and on weekends to help reduce the cash-flow drain and provide you with a sense of belonging," said Lynn Lawrance, certified financial planner at Financial Network Investment Corp. in Dallas.

If you've been unemployed for more than six months, watching your spending is all the more critical.

"Tracking every penny is a necessity, not a luxury," Murphy said. "Making conscious decisions about every spending decision is vital. Forcing yourself to reduce your standard of living temporarily may be the only way to allow you the peace of mind necessary to interview well."

When you do spend, make the money count.

"Squeeze every penny you spend to minimize the damage to your net worth," Lawrance said. "Spend only on absolute essentials and items that will boost your networking and interviewing success."

(c) 2010, The Dallas Morning News.
Distributed by McClatchy-Tribune Information Services.