McKinney

Builder Magazine in conjunction with Hanley Wood Market Intelligence posted its top fifteen healthiest housing markets for 2009. It was great news for Texas. The top five were in Texas and ranked accordingly:

• Houston

• Austin

• Fort Worth

• San Antonio

• Dallas

Some of the criteria used to evaluate the top 75 housing markets were the number of building permits, job growth, stability of housing values and population trends. The value of homes in the Dallas area decreased approximately 2.3%, which is mild considered to McKinney and other areas of the country.

Take the above into consideration along with the stimulus package, which is giving first time home-buyers an $8,000 credit for purchasing homes between Jan. 2009 and Dec. 2009, plus the low interest rates on home mortgages and you will realize it is a fantastic time to buy a home in McKinney. This $8,000 credit does not have to be repaid unless the McKinney homeowner or homeowners do not live in the home for at least three years. McKinney has some great homes in all price ranges. There are new construction homes as well as resale McKinney homes in wonderful McKinney neighborhoods with community pools and jogging trails.

E-mail me or call me to see some of these McKinney homes and neighborhoods.

A client made a comment to me a couple of weeks ago that really surprised me. We were discussing the purchase of her future McKinney home and its inspection, and she said she would never use a home inspector that I would recommend. She thought the recommendation might present a conflict of interest for the inspector, and that he might not point out things that needed to be repaired in the home since I would be referring the business. I explained that McKinney requires the home inspectors to be licensed and that they have regulations and forms to follow when inspecting a home. I did not believe that an inspector would risk his license and livelihood for one home inspection.

This does bring up a good point that has been discussed in many classes that I have taken regarding fiduciary duty to your clients. Do you recommend a McKinney inspector or let them choose? Personally, I feel I should recommend several that I know who do a good job since the home inspection is such an integral part of the purchase process. That is better, in my opinion, than having them blindly pick one out of the McKinney yellow pages or off the internet. However, I have colleagues that believe their clients should choose their own McKinney inspectors in case problems should arise with the home inspection. Then, the McKinney Realtor is not responsible or liable. I want my clients to have every advantage available to them so that they can make an informed decision.

Regardless, the home inspection is very important when purchasing a McKinney home, and I even encourage clients purchasing new construction to have one. Of those that have, there has always been something the builder has had to fix, and it was a repair the buyers would not have found without a McKinney inspector. Inspectors are not infallible and they do not always find everything. For instance, they do not move appliances and heavy pieces of furniture so there could be issues behind these items. In one case, my clients found termites underneath wallpaper when they began their remodeling. There was no way for the inspector to see these termites as there were no holes in the wallpaper. My experience has been that McKinney home inspectors do a great job in determining the overall condition of the home and the items in need of repair.

Of course, purchasers realize the value of the home inspection before committing completely to the purchase of the McKinney home. It helps with the negotiation of repairs and documents good condition. Sellers would benefit, too, from having their McKinney homes inspected before putting them on the market. It eliminates any surprises, and the seller can be proactive and fix small items which, in turn can eliminate more terminations. In addition, the documentation of good condition of the McKinney home can be a comfort to the buyer.

As spring draws near, more and more homeowners will consider the option of selling their McKinney home to purchase a newer one, a larger one or to downsize. Although the market has been slower in McKinney and the Dallas Metroplex, homes are selling. Your home must be in “tip top” shape, though, to sell in a reasonable amount of time because there is a lot of competition in McKinney.

Many McKinney homeowners tell me they are leaving their old carpet in the home and will offer the buyers money so they can choose their own color of carpeting. Or the sellers say the same about not painting those rooms that are purple or pink. They want the buyers to choose their own colors of paint. However, the majority of McKinney homeowners do not want to have cosmetic work or repair work to do before or after they move into the home. They want to purchase a McKinney home that is “move-in” ready.

Sellers need to address all cosmetic and repair issues before putting their McKinney homes on the market. Carpets should be clean and not worn, and walls should have a fresh coat of paint. Most people know to minimize clutter including closets. Sometimes it is a good idea to remove certain pieces of furniture that block walkways or make rooms look smaller. I believe one very important area that is often overlooked is the grout in tubs and showers. It should be clean, smooth and free of rust or black color. All appliances should be freshly cleaned including the inside of the oven and all cabinets should be wiped of grime. A good cleaning and a couple cans of paint can work wonders even if sellers cannot afford carpeting. There are McKinney companies that will install carpet and let sellers pay at closing. These are just some of the interior items that need the seller’s attention.

McKinney sellers also need to address the exterior of their homes. Does the exterior need paint? Are the doors and windows sealed properly? Are the windows clean? What is the condition of the roof? They also need to spruce up their landscaping by weeding and adding mulch if necessary. One small item that perks up a home is to add a couple of containers of plants or flowers at the front door or on the back patio.

If repairs are required before putting the home on the McKinney market, think green. Buyers are looking for energy efficient homes and more and more builders are promoting green homes. McKinney buyers consider every detail when they are comparing homes. Sellers should want theirs to stand out from all the other McKinney homes in order to have a quick sale.

If you are thinking about buying a home in McKinney, now is a good time to make the investment. McKinney’s mortgage rates are at a 40 year record low. A week ago the 30 year fixed rate dipped below 5%. Even though mortgage rates rose back above 5% last week, it is still lower than anything we have seen in years. Loan officers I have spoken with believe that they will go lower again or, at least, stay this low for months.

Although it is an excellent time to buy because of low interest mortgage rates and the favorable price of homes in McKinney, Freddie Mac and Fannie Mae have tightened standards on obtaining a loan. You have to have a good credit score, money for a down payment, and a decent debt to income ratio. The amount of the down payment can depend on all of the above factors, but this can be discussed with your McKinney lender.

As mortgage rates in McKinney are so low, most lenders are recommending those over adjustable rates. However, I read in our online REALTOR Magazine that if you currently have an ARM, you should evaluate it carefully before refinancing, because “you’re very likely to see your monthly payment fall.”

McKinney Homeowners are rushing to refinance their existing loans while these low mortgage rates are prevalent. If you are one of these homeowners, you should compare interest rates and work with a reputable, trusted lender. If you are interested in a referral to a reputable mortgage rate Officer, please leave me a message or give me a call. I am happy to assist in any way possible.

About once a week I receive a phone call from someone wanting to buy a McKinney foreclosure property. The buyers I work with will all want to look for a foreclosure, mostly because they believe they will get a “deal”. It is understandable because there are so many available at this time and McKinney has its fair share. However, buyers need to realize that buying a McKinney foreclosure is a different process than buying other homes.

For one thing, it takes longer to buy a foreclosure. You are negotiating with banks and they can take days or weeks to respond. They may have hundreds of foreclosure properties in McKinney they are trying to sell. I have waited as long as three weeks for a response from a bank on a foreclosure. So a buyer must have the time to wait. Often times, you are working with an asset manager, who may or may not be able to make decisions.

In addition, the banks in McKinney are not required to furnish a Seller’s Disclosure so it is often difficult to assess all that might be in need of repair. McKinney foreclosure buyers should have some money set aside for repairs. They should also realize that a McKinney home owner, who does not have the money to pay his mortgage and is facing foreclosure, which can take months and months, is not using his money to make repairs on the home. An inspection on a McKinney foreclosure is a must. Buyers might need to allow time to make repairs before they can move into the home. If buyers are not willing to make repairs on the foreclosed home, then they might want to consider buying other properties in McKinney.

As with any McKinney home purchase, it is important that buyers are working with a good lender, who has already pre-qualified them, and pre-approval is even better. Often times, there are multiple offers on foreclosures, and a buyer, who is pre-approved looks better to the bank than one who is only pre-qualified. This is true with any home purchase.

McKinney foreclosures offer homebuyers another choice in the market place. However, a buyer must have the patience, time, a little extra cash for repairs, a good lender and a Realtor who understands the process, to assist them with their foreclosure purchase.