Author: pladmin

In today’s market, things are somewhat non-traditional when it comes to real estate.  Although the Houston market seems somewhat stable, with an increase each month in home sales, the market is not a reflection of anything we’ve seen in the past.

Point taken.  Selecting an agent in today’s market is almost as important in deciding where you’ll purchase your next home.   There are two ways of doing most things.  The easy way or the hard way.  Closing a deal smoothly, considering the many obstacles we face in today’s market, is a new challenge to buyers, sellers and agents.  Hiring an agent with extensive experience in business and handling multi-facet transactions is a plus when it comes to closing in a tough market place.   There are a lot more layers to real estate transactions since RESPA laws and lending guidelines have changed.  The lending process is new for all parties involved.  Appraisals, inspections, comparable data, valuation, inventory levels, and the economic climate change have affected the ease of closing deals.

With this in mind, it is important to understand the importance of who you hire as your agent.  In addition, most people want a “hands-on” approach when it comes to handling their properties.  “Our business is all about personalized service and taking serious care in how we handle each and every client.”   We do not send out an assistant to show our properties and we keep a close dialogue with our clients, giving important feedback on their listings.  In addition, the owners of our firm will often take part in meetings with new clients, if necessary.

When I brokered energy futures and OTC markets, I was forced to learn the importance of adjusting to changing markets.  In addition, understanding risk and the ability to adhere to new and different maneuvers, was invaluable experience. Hypothetically, the traits I used in managing commodities are all too familiar with today’s real estate deals.  It is a challenging and constantly changing market place.  It takes an extra effort in making sure closings sail smoothly.

Michele Marano 713-899-8420

Michele@luxuryhighriseshouston.com or Michele@BethWolff.com

Fannie Mae has a new “Loan Quality Initiative”, which has taken effect June 1, 2010.  Basically, the lender will now check your credit score, for a second time, prior to closing to verify that you have not incurred debt during the underwriting process.

For those of you who do not know how the credit scoring system works, let me explain.  First, whenever you have your credit report pulled for opening a new credit card or applying for a loan, it is considered a “hard inquiry”.  If you have several hard inquiries within a short period (usually a 30 day window) they will be grouped together and counted as 1 inquiry.  In this case, your score will be effected anywhere between 3-5 points.  If, however, your inquires are spread over a longer period, then this will affect your score by several points each time your credit is pulled.

In addition, if you are late on any payments, close credit cards, max out or over charge credit cards, dispute anything on your report or pay off collections or charge offs, your credit score will be effected negatively, resulting in a lower score.

So, if you are excited about closing on your new home and decide to run out and buy new furniture of charge window treatments on one of your cards, STOP!  If anything, pay cash so your credit is not affected.

Basically, you need to NOT DO ANYTHING that will affect your report during the loan underwriting process.  When your second report is pulled prior to closing, and it reveals negative changes, your mortgage is subject to re-underwriting and the possibility of being rejected and not closing at all.

Michele is a licensed Texas Realtor with Beth Wolff Realtors – 713-899-8420

michele@luxuryhighriseshouston.com OR michele@bethwolff.com

“Being good in business is the most fascinating kind of art. making money is art and working is art and good business is the best art.” Andy Warhol

I love this quote, since it is so true.  I recently wrote a blog about “The Art of Deal Making” and in it I suggest how important it is in understanding the process of putting a deal together, working all parties seamlessly through the process and knowing how to meticulously negotiate.  Establishing a winning position for all parties is the ultimate goal in deal making, although it may not always seem that way.  As is art, deals take patience, time, understanding, craftsmanship and in many ways creativity.

When it comes to real estate, deal making is part of the art.  Putting a lengthy deal together, while keeping everyone at peace with the situations that can arise, is an art.  In my opinion, the most important part of a real estate transaction is understanding the means of negotiating and being capable of doing of it.  Negotiating is an art in itself and in learning to negotiate one has to go through many deals, good and bad practices to become a great negotiator.

This is why I stress the importance of hiring an agent that understands negotiations, the economy, the lending situation and the market.  I hear, over and over, that someone has just hired their best friend to buy or sell their home for them.  This may a be a fantastic idea, however, if you are literally hiring a friend as a favor and the agent doesn’t have the skill set or enough experience necessary to negotiate to the best of your interest, then you are really not doing yourself or your friend a favor.

Being licensed is mandatory but being licensed AND being experienced in handling business transactions are two different spectrums

All art is beautiful, in some shape or form.  So, the next time you think about your real estate transactions, think about the beauty of getting the deal done, and done well.

Michele Marano – Beth Wolff Realtors, 713-899-8420

Michele @luxuryhighriseshouston.com

Todays real estate market can seem blurred or grim.  It can also be viewed as a great time to take advantage of record low rates and declined values.  Obviously, it is all in the ey of the beholder.

Personally and professionally, I think it’s a unique time to view real estate as an opportunity and look beyond the distant blur.  Seeing through the tightened lending situation, the many foreclosures and the relatively high inventory levels forces us to look at the bright side.  The ability to look beyond what seems difficult or impossible and visualize real estate from its vantage point can be a positive in today’ market.

It is optimistic that sales have consistently been on the rise in Houston, compared to last year.  “June sales of single-family homes throughout the Houston market rose 2.9 percent compared to June 2009.  Sales volume showed gains in all single-family home pricing segments except the $150,000 to $250,000 market. The largest increase took place among homes priced from $500,000 and above. Sales of all property types combined climbed 4.1 percent in June on a year-over-year basis. ”

Michele Marano – michele@luxuryhighriseshouston.com

Beth Wolff Realtors

713-899-8420

Looking for a get-a-way in Colorado’s most luxurious Snowmass Canyon?  Boy do I have a property for you!

The gorgeous, newly constructed architecture is situated beautifully on the Roaring Fork River.  This spectacular 4 bedroom 4 1/2 bath retreat style home features bamboo ceiling, slate and bamboo flooring, four wood burning fireplaces, a wine room, a media den and a cozy hearth room. Purposely designed facing south, each room provides magnificent lighting and breathtaking views.

Imagine 475 ft on the Roaring Fork River with some of the best fly fishing in the world, just 20 ft from your back door.

For more information call Beth Wolff Realtors, Michele Marano at 713-899-8420 or email Michele @bethwolff.com.

Fannie Mae has a new “Loan Quality Initiative”, which has taken effect June 1, 2010.  Basically, the lender will now check your credit score, for a second time, prior to closing to verify that you have not incurred debt during the underwriting process.

For those of you who do not know how the credit scoring system works, let me explain.  First, whenever you have your credit report pulled for opening a new credit card or applying for a loan, it is considered a “hard inquiry”.  If you have several hard inquiries within a short period (usually a 30 day window) they will be grouped together and counted as 1 inquiry.  In this case, your score will be effected anywhere between 3-5 points.  If, however, your inquires are spread over a longer period, then this will affect your score by several points each time your credit is pulled.

In addition, if you are late on any payments, close credit cards, max out or over charge credit cards, dispute anything on your report or pay off collections or charge offs, your credit score will be effected negatively, resulting in a lower score.

So, if you are excited about closing on your new home and decide to run out and buy new furniture of charge window treatments on one of your cards, STOP!  If anything, pay cash so your credit is not affected.

Basically, you need to NOT DO ANYTHING that will affect your report during the loan underwriting process.  When your second report is pulled prior to closing, and it reveals negative changes, your mortgage is subject to re-underwriting and the possibility of being rejected and not closing at all.

Michele is a licensed Texas Realtor with Beth Wolff Realtors – 713-899-8420

michele@luxuryhighriseshouston.com OR michele@bethwolff.com

What should you know before buying a high-rise condo in Houston?  Well, let’s start with several thoughts.  Be prepared to do some homework, or seek advice from a Realtor who is highly knowledgeable with condos, the market, the economy, and who understands prevalent questions to ask when seeking a mortgage specifically for a condo.

Shopping for a condo is exciting, yet challenging.  Should you shy away from condos, considering the lending situation is tight and there are many condo’s that took a beating from over-investing, inflated values, depreciation after a mortgage debacle and a surplus of inventory as a result of foreclosures?  No.  The reason being, there are some opportunities in the condo marketplace, however, being able to define them is the real challenge.

Understanding value in condos, as is understanding the intrinsic value of any purchase, short or long-term is key.   Determining whether the building is financial sound is extremely important.  In other words, a healthy high-rise has a well-managed association and there is a substantial pot of money set aside in reserves.  These two factors will speak loudly about the integrity of the building.  Keep in mind, if your neighbors or fellow residents, forego the complexities of maintenance, your unit will suffer when it comes time for resale.

In addition, be very aware of the percentage of “owner occupancy” within the building.  If enough of the units become rental properties, you may have real problems when it comes time to sell.

The bottom line is, be prepared to hire a professional Realtor who knows the ins and outs of high-rise living.  Make sure you are working with an agent who not only understands that particular market segment, but understands the economy AND the lending situation.

CONDO FINANCING GUIDELINES

CONVENTIONAL

Of the units sold, 70 percent must be sold to owner-occupants (primary residence or second/vacation home).

Conforming Transactions only:

A minimum 51 percent of the units must be for use as a primary or second/vacation home when:

• It is an established project.

• 80/90 percent LTV/CLTV (combined loan to value if there is a first and second) for primary.- If the LTV is higher than 80%, it must be 70% owner occupied.

• 75 percent LTV/CLTV for second/vacation home.

• Not eligible for investment transactions. (has to be 70% owner occupied for investors)

Owner-occupancy for conversion projects is based on the units that are sold. A maximum of 10 percent of the units may be sold to one party. If more than 15 percent of the units are delinquent on their HOA dues, the project is ineligible.

FHA

• A maximum of 10 percent of the units may be sold to one entity.

• No more than 15 percent of the units are delinquent on their HOA dues.

• No more than 50 percent of the units are occupied by non-owner occupied residents

Michele Marano specializes in HIGH RISE LIVING IN HOUSTON, TEXAS

BETH WOLFF REALTORS

713-899-8420

MICHELE@LUXURYHIGHRISESHOUSTON.COM