The Houston Blog

I am most excited to share a recent personal, albeit business goal accomplishment.  I am now a Texas Real Estate Broker.  My license arrived yesterday evidencing the sign of the times, via email.  Several years ago my Salesperson license came via mail and it was very exciting to receive a hard copy.  The delivery of my Texas Real Estate Broker license was not the most ideal but definitely had the same effect.  Yesterday culminated my achievement to pursue a higher licensing standard in real estate in the State of Texas of course.  My next goal is to attain the prestigious CCIM (Certified Commercial Investment Management) designation by Spring 2011. What does it really means to be a Broker or Broker Associate in Texas?  Real estate is an ever-changing industry, from real estate law to the implementation of technology.  The need for more educated real estate practitioners is essential to provide consumers with the best possible representation.  After all, real estate is perhaps the largest monetary investment most people make in their lives.

The Texas Real Estate Commission (www.trec.state.tx.us) is the state's regulatory agency for the following:

- Real Estate Brokers and Salespersons
- Real Estate Inspectors
- Education Providers for Real Estate and Inspection Courses
- Residential Service Companies
- Timeshare Developers
- Easement Or Right-of-Way (ERW) agents

The Texas Real Estate Commission exists to protect consumers in Texas.  The Commission's is there to ensure that real estate service providers are honest, trustworthy and competent. TREC requires that all Texas real estate brokers and salespersons meet and maintain specified levels of education to hold a license to act as a real estate agent. 

The Salesperson

A person holding a Salesperson license in Texas has met the state requirements for becoming a real estate agent.  The Texas Real Estate Commission requires the Salesperson to have the equivalent of 210 classroom hours (seven 30-hour classes) before you are able to apply for a Texas real estate license and sit for the salesperson exam.  The individual must arrange for a Texas real estate Broker holding an active license to sponsor them as a Salesperson before they can practice as a licensed Salesperson.  Applicants and inactive Salespersons are not authorized to act as real estate agents in Texas. Additional Salesperson Annual Education (SAE), Mandatory Continuing Education (MCE) and related coursework is required to maintain active status.

The Broker

The Texas real estate Broker's license is the highest licensing status issued by the commission. An individual or company who holds a broker license in Texas has fulfilled the additional requirements to practice as a Broker (of Record) or Broker Associate.  In order to apply for your Broker license, you must have had your Salesperson license Active for 2 years in Texas or in any other state in the United States. TREC requires you to have the equivalent of 270 classroom hours (seven 30-hour classes & Brokerage Course) + an additional 630 classroom hours in related courses acceptable to the Commission (can use college degree towards credits if approved by TREC) before you are able to apply for a Texas Real Estate Broker license and sit for the Broker exam.  A Broker Associate hangs their license under another Broker also known as the Broker of Record who owns, manages or operates their own brokerage.  Additional MCE and related coursework is required to maintain active status.

Broker vs Salesperson

Both Salesperson and Broker must abide by the Texas Real Estate License Act also known as TRELA.  TRELA establishes the ethical and practical limitations and licensing requirements.  We must also abide by the Realtor Code of Ethics which establish the standards of practice.  Individuals who attain a Broker license demonstrate the true entrepreneurial spirit of this industry.  They demonstrate proficiency in real estate and pursue a higher level of business practice by committing to the higher licensing status.  Most Brokers have more post-secondary education in specific courses as well as business savvy in running their real estate business.  Brokers are committed to real estate full-time as opposed to some Salespersons who take up real estate as a part-time job or hobby.  Regardless, Buyers and Sellers should be aware of the difference in levels of qualification and experience for each real estate license.

What is a REALTOR?

A REALTOR is a member of the National Association of Realtors (NAR) in the United States.  A Realtor can be a Salesperson or a Broker but MUST be a member of NAR. Real estate agents who are not members of NAR and cannot use the term "Realtor" because it is a trademark of NAR. According to NAR, The terms REALTOR, REALTORS, and REALTOR-ASSOCIATE, as well as the REALTOR block "R" logo, are all federally registered collective membership marks owned by the National Association of Realtors.

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to newly listed homes for sale in Houston with complimentary New Listings Notifications. You'll receive updates via email to the properties that match your Houston Real Estate search criteria. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a Complimentary Home Market Analysis via email with properties that have sold in the last six months around you.

Sincerely,

Diego E. Jaramillo
Broker Associate, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

Request a Free Market Snapshot!

Original Blog Posting 6/3/10 at www.houstonheritage.com/blogs

 

The loan process has become more involved in the last few years and tightened lending practices pose new hurdles for buyers.  Being informed is the best way to keep abreast of changes in the lending process.  Having a great loan officer as part of your team during your purchase is essential.   Larger banks and institutions are taking longer to close a loan so make sure you get information on their average closing times.  We’re seeing 35 days on lenders who are their own underwriters and perhaps up to 45 days for the “BIG” banks.  Here’s a good idea of the lending process lately.  Feel free to email with questions if you have any during your buying process.

 

 

I.  Prequalification

            a.  Information from borrower

                        1.  Personal information

                        2.  Supporting documentation

                        3.  Automated Underwriting

                        4.  Initial fees worksheet

 

II.  House Under Contract

            A.  Update all information from borrower

                        1.  Documentation

                        2.  Agreement of loan terms

                        3.  Initial Disclosures and Form Loan Application

                        4.  Execute Floatdown Agreement (if rates are down, lock it once up to .375% less)

           

III.  Option Period Ends

            A.   Order appraisal

            B.  Order title

            C.  Order survey if applicable

            D.  Submit to processing

1.  Sometimes the file is submitted to processing prior to option period ending.

 

IV.  Processing

            A.  Fraud guard (basically a background check)

                        1.  Make sure DOB, Name, Addresses, Employment, SSN & other facts match. 

                                    a. This sometimes requires further explanation from borrower.

                                    b.  Will show if borrower owns other properties

             B.  Verifications

                        1.  Employment and/or income

                        2.  Verification of Rent (if applicable)

                        3.  Tax returns (4506)--all loans

                        4.  Social Security Number validation

            C.  Review Credit, Income, and Assets

                        1.  Must make sure that the documentation we have meets underwriting requirements

                        2.  Update documents that have expired

                        3.  Request additional documentation not requested by Loan Officer

                        4.  Ensure that appraisal is received

                                    A.  Did it make value?

                                    B.  Is it “as is” or “subject to”

            D.  Re-run Through Automated Underwriting

 

V.  Underwriting

          A.  Reviews all documents submitted by processor

          B.  Validates automated underwriting findings

          C.  Determines approval ability based on underwriting guidelines  set by Fannie Mae, Freddie Mac, FHA, & VA.

          D.  Creates “prior to document” conditions based upon review of findings.

                    1)  Example—Bank Statement w/ large deposit (not employment) & to provide documentation and explanation.

          E.  Creates “funding conditions” based upon review of file

                    1)  Example—Final Inspection of property or cash to close cannot be higher than a certain amount of money

 

VI.  Closing

        A.       Reviews Legal Aspects of File

                    1)      They work for a law firm employed by lender

                    2)      Title

                    3)      Survey

                    4)     Insurance—sufficient coverage

          B.      Give Instructions to Title on Creating HUD1 and provides loan legal documents to sign at closing

          C.    Approve HUD1

          D.     Order Funding (wire)

 

VII.  Funding

          A.      Reviews Funding Conditions

          B.     Verifies all documents have been signed properly by all parties

          C.     Release Funds for Closing

 

This of course means....LOAN IS OFFICIALY CLOSED AND PROPERTY SOLD!!!!  :)

 

 

Special Thanks to Prime Lending:

 

 

Darrell Clifton	Roger Ryman
Loan Officer	Loan Officer
832-275-9161 Cell	713-446-9666 Cell
dclifton@primelending.com	rryman@primelending.com

 

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

Request a Free Market Snapshot!

 

Original posting at: http://www.houstonheritage.com/blogs/

 

 

Tick, tock….tick…tock…   The anticipation of first time home buyers around the nation is coming to an end.  These are the last days of the tax credit in Houston.  It’s funny how buyers who procrastinated so long are now coming to terms or making offers like crazy.   These were the same buyers who were submitting low-ball offers these past few months thinking that this buyer advantage would go on forever.  The great news is that Houston has benefited from a more stable real estate economy than other parts of the country.  The unfortunate truth is that as we wrap up the end of the tax credit we are seeing skewed numbers.  It seems buyers have been over paying lately.  I’ve had several buyers who have submitted offers at asking price and the property goes into contract for a higher price.

 

The tax credit was established by the administration to assist buyers in purchasing their first (primary) home.  It also considered buyers who hadn’t owned in the last three years “qualified” to take advantage of the credit.  This credit was extended and expanded from its 2009 predecessor to include recent homebuyers.  What’s the catch?  You have to be in contract by April 30, 2010 and close by the end of June 2010.

 

1. Will it be extended again?

Probably not. So far Friday’s deadline remains.  There has been much lobbying in Washington for an extension but no signs of one as of yet.

 

2. Can I still qualify!

Please consider that you can still qualify (only a few days left) but other buyers such as yourself are going to possibly get into a bidding war with you.

 

3. Don’t Overpay!

Ok, so you waited last minute and now you want to qualify for the tax credit.  Before you go sending your best and final offer, consider HOW MUCH you are paying.  If you are paying $8000 more than you normally would then you are probably at a draw.  It is always best to compare homes for sale in Houston and get comparables to make sure the house will appraise for the asking price.

 

4. Beware of short sales and foreclosures!

Short sales and foreclosures in Houston usually require an asset manager or the bank’s approval which can take several days up to several weeks for an offer acceptance.  You probably won’t qualify if the bank hasn’t already seen your offer or doesn’t expedite responses.  Short sales can take several months to close (3-4 months on average in Houston) so you may not qualify for the closing deadline of June.

 

5. What is tax deductible if I don’t qualify?

You can still deduct your mortgage interest from your home purchase as well as any PMI that is paid.  This of course will apply to your next year’s tax returns if you purchase this year.

 

If we do see an extension to the tax credit, please don’t wait until the last minute!  You will only be competing with other panicked buyers and sometimes even overpay for something you could have gotten a better deal before.

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

Request a Free Market Snapshot!

 

Original Posted 4/27/10: Houston Real Estate Blog

 

 

 

The joys of homeownership are sometimes shot by first and multiple time homebuyers who forget the changes in financing.  There are four things to avoid before applying for a mortgage and even during the loan process (until you close).  Each one can greatly impact your ability to qualify for a mortgage loan so buyers, please be careful.  If you are contemplating the purchase of a home or are already in the process of doing so, be aware that your mortgage lender will continue to evaluate your ability to qualify for financing from the time of your application through the actual closing of the transaction. 

1. DO NOT Change Your Job!

Changing jobs before or during the process can only add headaches when qualifying for a mortgage loan.  It can be even more difficult if the new job is in a different line of work, lower pay rate or different pay schedules.  During the mortgage loan process, this can cause delays because the new job will have to verified and documented.

2. DO NOT Switch banks or move money around!

Please consider leaving your money where it is until your loan is closed.  You can greatly impact your verification process and reduce your chances at getting a mortgage loan if you move money to a new account or even into a different account.  If you have opened a new bank account, please inform your loan officer.

3. DO NOT Pay off your bills!

Please ask your loan officer upfront to advise you if it is necessary to pay off any bills that may help you qualify for a loan.  Not all bills should be paid out.  Your loan officer will show you the best approach to pay off bills to ensure there is evidence to prove the bills have been paid in full.

4. DO NOT Make any major purchases that require credit inquiries!

Please don't make the mistake of purchasing a new car, motorcycle, furniture sets or other major purchases.  Major purchases involving credit inquiries can impact your ability to buy a home.  A large monthly payment can affect the amount of home you qualify for and can make it hard to get a mortgage loan approval.

 

THREE Major areas should remain constant throughout the loan process:

Employment- Your lender will consider both the stability of your employment and the sufficiency of your income for qualification.  It is best to avoid a change of employment before or during the loan process.  A change involving a new line of work, lower rate of pay or different pay structure can negatively affect your ability to qualify or create un-anticipated delays in the process of obtaining your loan.

Assets- During pre-qualification, you and your lender will determine the source and availability of all funds you may need for down payment, closing costs and any reserve assets required for loan approval. Switching banks or moving your money around before or during the loan process will impact the lender's ability to verify the funds needed. 

Credit - It is best to limit credit card activity and avoid major purchases throughout the loan process.  New purchases may result in an unintended negative affect on both credit scores and qualifying debt ratios that impact your approval. If it is necessary to reduce or eliminate bills to assist in qualifying, your lender will advise you regarding how best to approach and document such payments.

Communication is the key regarding the loan process.  Keep your lender informed of any changes in these areas of qualification, both during pre-qualification and throughout the loan process for a smooth and problem free transaction.

Special Thanks to Our Mortgage Partner:

Ann Bennett
Senior Loan Officer
Cell: 832-594-0479
Email: ann@homeloansbyann.com

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Realty - The Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

Request a Free Market Snapshot!

Orignally Posted 4/26/10 at: http://www.houstonheritage.com/blogs/diego_jaramillo/archive/2010/04/26/four-things-to-avoid-when-purchasing-a-home.aspx

The plan was for today to be like any other work day.  The middle of the week is usually a logistical war zone with scheduling client appointments and keeping things in order.  A call this week changed the flow of the morning as an REIT (Real Estate Investment Trust) was considering placing several of their portfolio properties on the market.  I received the request and as I followed up on the BPO (Broker Public Opinion) I noticed the distance between the properties.  Each property is unique in that they are multi-family properties ranging from 4 units to 44 units.  As I mapped my trajectory from Houston I noticed today would take me to Galveston and Dickinson and back to Houston.

Everyone who lives in Houston knows that the best rule of thumb is to plan ahead and factor in traffic.  I decided that it would be best if I salvaged as much of the morning by beating any trace of traffic and head towards Galveston before sunrise.  You tend to forget and lose yourself when you pop in some music, follow it by motivational seminars and then back to the tune you'll soon hum the rest of the day.  The solo drive was shorter than I expected given my ninja-like driving skills and considering there were few commuters heading south.  I decided to stop by Denny's for a breakfast treat and noticed patrons eating and then heading outside.  I left the establishment as sunrise started to grace the ocean skies and felt humbled by the sight of a fleeting masterpiece.  I don't tend to drive to Galveston much and feel perhaps I've treated it like Houston's step child for a while.  I walked across the street and took it all in....the salty aftertaste of the gulf wind, the brilliant shades of Spring sunrise, the sandy shore, the sound of the crashing waves.  There I was being thankful for what we have in Galveston and for having had that community spared from what everyone expected Hurricane Ike to have done to the island.

 

 

BPOs usually require a description of the property, comparable active and solds as well as several images of the subject property.  I took my trusty Sony a700 and headed to complete the task at hand.  Images of multifamily homes, locations, observation of premises and exterior conditions were all duly noted.  My next stop was Dickinson where other properties were going to be considered for sale by the investor.  I found it funny to take pictures of these multifamily investment properties and compared them to Houston where we have no zoning.  I did observe that there are a good number of foreclosure properties in Houston - both commercial and residential properties and the surrounding areas down to Galveston.

The last property was perhaps the most interesting.  It is a 44-unit apartment complex with amazing potential in the Southwest Houston area.  There are great finds for foreclosure properties in Houston where investors from out of state are taking advantage of great pricing.  The property condition was expected for a distressed property but the investment potential is great.  Occupancy rates in the area range from 70-90% with property mangement companies.  Taking a project like this involves good financial analysis and investment savvy.  An informed investor will consider distressed properties a good investment depending on the investor's goals.  A great source of commercial listings is my website at www.HoustonHeritage.com where you can sort through different residential and commercial properties to consider for investment.  Whatever your investment needs are, always decide what is important - a rate of return or a cap rate.

It was great to have had a fun filled early morning and taken time to appreciate what we have not only here in Houston but in our neighboring cities as far south as Galveston Island.

Let me show you the way...

 

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

 

Sincerely,

 

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

 

Request a Free Market Snapshot!

 

Original blog 3/25/10 at www.HoustonHeritage.com

 

 

The Houston Montrose Neighborhood is truly a gem in the city of Houston, TX.  Montrose is located inside the 610 Inner Loop, west of the 527 Spur and just north of HWY 59.  It can be referred to as a super neighborhood of sorts with many historic highlights.  Developed in 1911 by J.W. Link, of the Houston Land Corporation, the name Montrose comes from a historic town in Scotland.  Montrose is located in the popular 77006 zip code inside the loop. Known for its bohemian chic and diverse mixture of residents, Montrose has laid a unique claim among Houston's Top 50 Neighborhoods.

The air is filled with scents from close knit restaurants and brasseries that welcome you in to taste the myriad of flavors - from Indian to Brazilian cuisines.  Take a weekend stroll around the neighborhood and go hunting for amazing finds among the many Antique shops lining the Houston Montrose Neighborhood perimeter.  Montrose features plenty of shopping with a mixture of upscale and vintage shops. Enjoy different flavors of coffee or teas at the different coffee and tea houses in the vicinity and partake of the local flavor.

The quaint look of Montrose remains one of the reasons its residents and businesses thrive.  Imagine walking through a neighborhood that features a combination of renovated elegant early 20^th century mansions with wrap around porches and picket fences.  The neighborhood is very pedestrian friendly and the tree lined streets is perfect for a morning jog or walking the dog. Continue your stroll as you appreciate beautiful bungalow homes with wide front porches and a swing to boot.  Small cottages stand out from the crowd with fresh upgrades to kitchens and bathrooms common to the area.  McMansions have sprouted in the area showing how the nouveaux blends quite nicely with the quaint.  A series of upscale townhomes and condo complexes are also easy to spot in the area.  The old and new architectures converge to become the thriving residential market that is Montrose.

The Montrose neighborhood thrives with artists, museums, cultural references and local area businesses. In the essence of preservation, businesses have learned to seamlessly adapt to the area.  Many of the older mansions are home to attorney offices, local businesses and restaurants.  The preservation of these beautiful structures is a testament to Montrose community.  Original hardwood floors are buyer's gold when in mint condition and the large patios make a great outdoor sitting area for restaurants.  Many century-old bungalows and mansions can be found within the Montrose neighborhood.

The Houston Montrose Neighborhood features a wide range of property values reflecting its location and strong real estate market.  Small townhomes and condos can sometimes be found around $150,000 while a new construction can sell over $1 million. Land value in Montrose ranges from the $200,00s to $500,000s. Most newer townhomes in Montrose sell in the $350,000 to low $600,000s. Many older bungalow sales range from the $250,000s to the $400,000s.  The luxury townhomes and single family home sales in Montrose range from the $600,000s to the $1,300,000s.

Let me show you the way...

 

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

 

Sincerely,

 

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

 

Request a Free Market Snapshot!

 

Original Posted 3/24/2010 at www.TheHoustonBlog.com

One of the best forms of personal expression when owning a home is remodeling it to your liking.  Aesthetic updates provide a sense and feel of “home” by combining creativity and proper workmanship.  Homeowners are advised to research the type of improvements prior to implementing them to evaluate the return on your investment.  An aesthetic improvement does not always provide the adequate return on investment.  A good question to ask is, “Once I do this remodeling project, will I be able to recuperate my investment?”

 

Project Budgeting

 

Budgeting is one of the more difficult feats when deciding to do a remodeling project.  It is difficult to establish a budget based on a magazine clipping from Architectural Digest or Home & Garden.  I recommend creating a remodeling fund for your remodeling “wish list”.  It isn’t that common for homeowners to tap into their home equity lately, especially in certain areas, because of the decrease in home and equity values.  It is a good idea to discuss your project with your CPA or financial advisor or even a loan officer if you plan on getting a line of credit.

 

Silent Vs Hard Costs

 

Homeowners become enamored by images without regard to both hard and silent costs.  Hard costs are usually associated with the actual improvement and may or may not include allowances provided for fixtures.  Silent costs are usually what hurt homeowners and include unknown damage or deferred maintenance that is not visible. Some silent costs include dry rot, termite damage, mold, wood destroying insect damage, etc.  

 

Selecting a contractor

 

Many contractors now provide free estimates for your review so take advantage of this.  You must be upfront with your contractor and request they provide you a line-itemized estimate.  It is unfair to you as a customer to receive a kitchen remodeling project with vague estimate and a ballooned price.  Allowing for a detailed estimate per room is something that I encourage my clients to request.  A per room estimate will alleviate the headache of rounded numbers for painting, carpentry, plumbing and other repairs.

 

Most Popular Remodeling Projects in Houston - Cost Vs Value 2009-2010

 

HOUSTON — MIDRANGE PROJECTS                                                            2009-10 NATIONAL AVERAGES

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change VS 2008
$41,389	$40,448	97.70%	Attic Bedroom	$49,346	$40,992	83.10%	Up
$12,540	$9,789	78.10%	Back-Up Power Generator	$14,304	$8,428	58.90%	Up
$52,931	$49,010	92.60%	Basement Remodel	$62,067	$46,825	75.40%	Up
$33,188	$22,955	69.20%	Bathroom Addition	$39,046	$23,233	59.50%	Down
$14,109	$11,532	81.70%	Bathroom Remodel	$16,142	$11,454	71.00%	Down
$14,463	$10,011	69.20%	Deck Addition (composite)	$15,373	$10,904	70.90%	Down
$9,773	$7,924	81.10%	Deck Addition (wood)	$10,643	$8,573	80.60%	Down
$70,827	$51,071	72.10%	Family Room Addition	$82,756	$54,051	65.30%	Down
$50,123	$33,538	66.90%	Garage Addition	$58,432	$36,361	62.20%	Down
$26,101	$13,970	53.50%	Home Office Remodel	$28,375	$13,648	48.10%	Down
$52,405	$39,346	75.10%	Major Kitchen Remodel	$57,215	$41,260	72.10%	Down
$88,750	$61,959	69.80%	Master Suite Addition	$103,696	$67,578	65.20%	Down
$20,077	$16,557	82.50%	Minor Kitchen Remodel	$21,411	$16,773	78.30%	Down
$15,148	$10,734	70.90%	Roofing Replacement	$18,731	$13,133	66.60%	Up
$9,365	$7,394	79.00%	Siding Replacement (vinyl)	$10,607	$8,476	79.90%	Down
$66,046	$34,375	52.00%	Sunroom Addition	$73,167	$37,118	50.70%	Down
$139,048	$99,095	71.30%	Two-Story Addition	$156,309	$107,286	68.60%	Down
$9,285	$6,859	73.90%	Window Replacement (vinyl)	$10,728	$8,217	76.60%	Down
$10,168	$7,802	76.70%	Window Replacement (wood)	$11,700	$9,044	77.30%	Down

 

HOUSTON — UPSCALE PROJECTS                                                            2009-10 NATIONAL AVERAGES

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change VS 2008
$66,720	$48,807	67.20%	Bathroom Addition	$75,812	$43,888	57.90%	Down
$46,865	$33,724	72.00%	Bathroom Remodel	$52,295	$32,196	61.60%	Down
$35,426	$21,829	61.60%	Deck Addition (composite)	$37,745	$22,934	60.80%	Down
$75,871	$47,310	62.40%	Garage Addition	$87,230	$48,762	55.90%	Down
$105,621	$69,898	66.20%	Major Kitchen Remodel	$111,784	$70,641	63.20%	Down
$203,593	$124,873	61.30%	Master Suite Addition	$225,995	$125,793	55.70%	Down
$29,554	$19,474	65.90%	Roofing Replacement	$35,359	$22,610	60.50%	Down
$12,874	$11,121	86.40%	Siding Replacement (hardiplank)	$13,287	$11,112	83.60%	Down
$11,671	$9,738	83.40%	Siding Replacement (vinyl)	$13,022	$10,285	79.00%	Down
$11,888	$9,378	78.90%	Window Replacement (vinyl)	$13,862	$10,601	76.50%	Down
$15,899	$11,875	74.70%	Window Replacement (wood)	$17,816	$12,738	71.50%	Down

Source: Remodeling Cost vs. Value Report, copyright 2009-10 by Hanley Wood LLC & REALTOR Magazine, Dec 2009 issue.

 

Special thanks to:

MIF Contracting, LLC
Tel: 713-541-4685
Web: www.mifgc.com
Email: mifgc@email.com

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com

Request a Free Market Snapshot!

"Because my business is primarily based on referrals, I thank you in advance for your endorsement. If you or anyone you know are considering buying or selling a home, please think of me."

 

 

Houston real estate has begun to show signs of stability and we are confident that the first quarter of 2010 will bring more new construction.  Buying new construction is equivalent to the "new house scent syndrome".  Buyers get too caught up with the thrill of the experience that they forget that this is one of the most important purchases in their life. As such, it is important to see the transaction through with caution and due diligence.  It's not to say that your builder will cut corners but every now and then there are items that fall through the cracks, pun intended.

It is important for buyers to make their own check lists when they do their walkthroughs and make the builder accountable for addressing the items of concern.  Creating a checklist will assist you during any walk-through phase to ensure that the work has been completed properly. Feel free to discuss missing items with your Realtor if they were previously negotiated into your contract. Always have a paper trail or email trail of the items of concern and communication between your Realtor and builder/remodeler. If an item or repair you agreed on is missing, write the specific item down and address it in writing. Describe the problem and the location of the item needing repair.  The builder/remodeler can answer questions about your home including its use and upkeep. Please remember to keep safety first when inspecting your home and operating the mechanical or electrical systems. Avoid climbing on anything without proper equipment or ladder. If you have a concern after completing the walk-through, notify the builder/contractor immediately and put it in writing as soon as possible.

1. Fencing and Retaining Walls: Inspect the fencing. Support posts should be firmly set.   Fencing material (planks or wire) should be securely fastened. Metal parts should be free of rust. Check masonry and wood for damage or deterioration.
   
2. Landscaping and Planting:  Check to make sure all vegetation is alive. Discuss options with builder if you notice vegetation is dying.
   
3. Shutoff/Cutoff Valves and Main Breakers:  Locate and become familiar with the operation of all shutoff and cutoff valves for gas and water as well as the main breakers for electricity.
   
4. Exterior Concrete Slabs:  Inspect concrete for exposed steel or damage.  New concrete slab should not be cracking.
   
5. Exterior Doors:  Inspect doors for damage.  Doors should open and close with ease and locks should be operational. Inspect doorbells for proper operation. Open French doors or sliding doors to test.
   
6. Stone and Masonry:  Inspect stone and masonry for damage or missing mortar. Inspect stucco for discoloration or damage. 
   
7. Exterior Paint and Stain:  Inspect paint and stain for discoloration or shade variation. Paint and stain should adequately cover required surfaces. Inspect for overspray onto other surfaces and report to builder. Inspect painted and stained surfaces for damage.
   
8. Roof, Gutters and Downspouts:  Visually inspect roof, gutters and downspouts for any damage.   Perform the inspection from ground level only; do not walk on the roof.
   
9. Garage Doors: Inspect garage doors for damage. Operate the garage door to make sure the door stays on its track and opens and closes completely. Test safety stop feature using a box or brick.
   
10. Stairs and Railings:  Inspect surfaces for exposed steel, protruding objects or damage.  Check that stairs and railings are secure. Listen for unusual popping or creaking.
    
11. Manuals and Warranties (Range or cook top, Refrigerator, Oven, Water Heater, Ice Maker, Microwave, Air Conditioner, Irrigation System, Elevators etc.):  Have all owner manuals and warranty information on new operating systems and appliances been provided?
    
12. Keys and Garage Door Openers:  Make sure you receive all keys and garage door openers been provided and that they are operational.
    
13. Interior Doors:  Inspect doors for damage.  Doors should open and close smoothly.  Check for door stops and request them if missing.
    
14. Specialty Doors:  Inspect sliding and pocket doors for proper operation.  They should slide easily, stay on their tracks and latch easily.
    
15. Carpet:  Inspect carpet for stains, spots, or any damage. Carpet should be securely attached.  Make sure there is no squeaking when walking.
    
16. Vinyl:  Inspect vinyl flooring for stains, bubbles, depressions, ridges or damage. 
    
17. Flooring:  Inspect wood flooring for damage and consistency in stain.  Inspect concrete floors for damage.
    
18. Grout:  Inspect grout for discoloration or cracking especially in bathrooms.
    
19. Countertops:  Inspect all countertop surfaces and edges for any damage or missing caulking.  Also make sure to check for cracks or chips on countertops and address options with builder.
    
20. Drywall:  Inspect ceilings and walls for sagging, bowing, visible nail heads or any damage.  Make sure texture has been properly applied, primed and painted.
    
21. Interior Paint and Stain:  Inspect paint and stain for discoloration or shade variation. Paint and stain should adequately cover all surfaces.  Inspect for overspray onto other surfaces.  Inspect painted and stained surfaces for damage.
    
22. Interior Ironwork:  Inspect ironwork for rust on surfaces.
    
23. Mirrors/Interior Glass/Shower Doors:  Inspect for secure installation or damage.
    
24. Windows:  Inspect windows for damage.  Windows should open and close without difficulty.   Inspect screens for any damage.
    
25. Skylights:  Visually inspect for signs of leaks or any damage.
    
26. Electrical Fixtures:  Inspect fixture surfaces, switch and plug covers for any damage.
    
27. Electric Panels: Inspect to ensure that the breakers are in panel boxes and are properly labeled.
    
28. Lighting:  Check fixtures to determine if light bulbs are in place, fixtures are operating properly and for damage.
    
29. Communications (Television, Cable, Internet, and Telephone):  Inspect all communication cover plates and fixtures for damage.
    
30. Bath Accessories:  Inspect toilet paper holders and towel bars for secure installation and for damage.
    
31. Ceiling fans: Check fixtures to determine that all functions are operating properly and check for damage.
    
32. Plumbing Fixtures:  Inspect plumbing fixtures for secure installation, stains or damage.
    
33. Toilets:  Inspect toilets for secure installation or damage. Water should not be running continuously.
    
34. Closet Shelving:  Inspect shelving and rods for secure installation.  Brackets that support shelving and rods shall be installed no more that four feet apart.
    
35. Heating and Cooling Systems: Inspect filters and thermostats. Make sure they are securely attached.
    
36. Fireplaces and gas logs: Inspect all visible components of the fireplace and chimney. Note any damage.
    
37. Cabinets: Inspect cabinets for damage and proper alignment.

The list could go on for days if you think about it but the goal is to give you a glimpse of what to look for.  A great way to keep track of these items and others are to create a spreadsheet in Excel and print out as you check each item.  Remember that your due dilligence is important because many builders will not come back to repair items later.  If you are looking for new homes in Houston or are relocating to Houston, let me know! :)

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com

Request a Free Market Snapshot!

"Because my business is primarily based on referrals, I thank you in advance for your endorsement. If you or anyone you know are considering buying or selling a home, please think of me."

 

 

Everyone who knows me clearly knows that I’m no stranger to food.  Houston is one of those cities with exceptional culinary extravaganzas and delicious eateries.  From restaurants with lavish settings to giant aquariums, you’ll usually find somewhere to delight your senses. To delight your palate, sample the refined cuisines of area chefs from specialties ranging from American to Indian to South American food.  Because service the Houston area and Houston Inner Loop, here is a little list of Houston Downtown restaurants and eateries for your leisure.

 

Dining Out in Houston Downtown

 

Angelo’s Italian		711 Main		713-225-3500
Azuma Sushi & Robata Bar		909 Texas		713-223-0909
Bangkok Room Lounge		914 Main		713-658-0950
Birraporetti’s Italian		500 Louisiana		713-224-9494
Bistro Lancaster		701 Texas		713-228-9502
Cabo Mexican Grill		419 Travis		713-225-2060
Café Express		650 Main		713-237-9222
Charivari Restaurant		2521 Bagby		713-521-7231
Chipotle Mexican		909 Texas		713-225-6633
Cielo Mexican		300 Main		713-229-9500
Downtown Aquarium		500 Dallas		713-223-3474
Downtown Hunan Café		613 Clay		713-759-0515
Farrago		318 Gray		713-523-6404
Flying Saucer Pub		705 Main		713-228-7468
Franks Pizza		417 Travis		713-225-5656
The Grove		1611 Lamar		713-337-7321
Guadalajara del Centro Mexican		1201 San Jacinto		713-650-0101
Hard Rock Café		570 Texas		713-227-1392
House of Blues		1204 Caroline		713-652-5837
Hunan Downtown Chinese		812 Capitol		713-227-8999
Jimmy John’s Gourmet Deli		820 Main		713-222-9995
Little Napoli Italian		1001 Texas		713-225-3900
McCormick & Schmick’s		1201 Fannin		713-658-8100
Mia Bella Italian		320 Main		713-237-0505
Morton’s Steakhouse		1001 McKinney		713-659-3700
Red Cat Jazz Café		924 Congress		713-226-7870
Sambuca Jazz Café		909 Texas		713-224-5299
Table 7 Bistro		720 Fannin		713-227-4800
Timpano Chophouse & Bar		610 Main		713-223-2622
Vic & Antony’s Steakhouse		1510 Texas		713-228-1111
Zula New America		705 Main		713-227-7052

For other things real estate, let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a Complimentary Home Market Analysis via email with properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Tel: 713-980-5115 
Online at www.HoustonHeritage.com

Visit my Blog at www.TheHoustonBlog.com

Visit Facebook Fanpage: www.DiegoJaramillo.com

 

Request a Free Market Snapshot!

"Because my business is primarily based on referrals, I thank you in advance for your endorsement. If you or anyone you know are considering buying or selling a home, please think of me."

 

 

 

 

Inspections are an essential component of the Due Diligence period during your Houston home buying experience.  The Due Diligence period is also known as your Option Period or Termination Period.  This period provides buyers with the unrestricted right to terminate their contract.  One major item to take care of during this Due Diligence period is a residential real estate inspection.  Sometimes negatively referred to as “deal killers”, inspections are an essential part of your discovery and negotiations.  Inspection reports should point out the various aspects of the property condition beyond the more obvious visual evidence.

 

Different types of inspectors

• Professional Home Inspector
• Engineer/Forensic
• Wood Destroying Insect (WDI)/Termite
• Mold
• Stucco/EIFS
• Thermal Imaging/Energy Audits
• Well & Septic
• Swimming Pool
• Lead Based Paint
• Environmental/Phase 

 

Selecting and Scheduling Inspectors 

• Ask Questions
• Cost Estimate
• Who and When

 

Questions to Ask an Inspector

• How long have you been in business?
• How many inspections do you schedule a week?
• How long is your average inspection?
• How soon can I schedule my inspection?
• How fast can I get my report?
• What format do you send your report in?
• How many pages is your average report?
• What areas do you service or are most familiar with?
• What is included in the price you quoted?
• Are there any discounts available?
• How many inspectors work with you?
• Do you carry insurance?
• Do you have a Supra access key?

 

Property Inspection Reports

• Checklist (lease informative)
• Narrative Report
• Combination of both including COLOR pictures of property and defects

 

Rules and Standards of practice required of Inspectors

• Texas Administrative Code – Title 22 – Part 23 – Chapter 535 – Subchapter R – Section 535.206 – Section 535.233

 

Recommended forms pertaining to Property Condition that could be added to contract

• For Your Protection Get A Home Inspection (TAR 1928)
• Inspector Information (TAR 2506)
• Texas Real Estate Consumer Notice Concerning Hazards and Deficiencies (TREC OP-1)
• Environmental Assessment, Threatened or Endangered Species, and Wetlands Amendment (TAR 1917)
• Broker Notice to Buyer/Tenant (HAR 410)
• General Information and Notice to a Buyer (TAR 1506)
• Information About Property Insurance for a Buyer or Seller (TAR 2508)
• Information About Special Flood Hazard Areas (TAR 1414)
• Protecting Your Home From Mold (TAR 2507)
• Notice of Information From Other Sources (TAR 2502)

 

Standard Property Inspection Report and Other Property Inspection Forms

 

Form #	Form Caption
REI 7-2	Property Inspection Report
REI 7A-1	Property Inspection Report
REI 1-3	Inspection Log
OP-I	Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies

 

Getting what you pay for

Remember the saying...."you get what you pay for"?  I find it to be very true with residential home inspections in Houston.  A very basic inspection is about 6 pages long using the promulgated forms provided by TREC.   Inspection reports in Houston range about $250 to $500 for residential properties under 3000 sq. ft. homes. A less detailed inspection report may save you some money but may cost you later in unreported items that could have easily been reflected on a more thorough report.  I ask buyers to insist their reports be in full color (NO FAXES) and in PDF format.  I enjoy receiving 30-40 page reports to review with buyers that detail condition of the property and the inspector’s professional observations.  A great inspection report allows buyers to  negotiate (unless foreclosure/REO) repairs or receive seller contribution towards buyer’s closing costs.

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a Complimentary Home Market Analysis via email with properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Tel: 713-980-5115 
Online at www.HoustonHeritage.com

Visit my Blog at www.TheHoustonBlog.com

Visit Facebook Fanpage: www.DiegoJaramillo.com

 

Request a Free Market Snapshot!

"Because my business is primarily based on referrals, I thank you in advance for your endorsement. If you or anyone you know are considering buying or selling a home, please think of me."