Preliminary MLS Data - April 2012

Preliminary April 2012 Data: 
Units for Sale: (compared to April 2011)

• New listings are up 1.86%.
• Pendings are up 27.40%.
• Solds increased by 5.76%

 As for Average Prices:

• The "New Listings" average list price is up 4.74% to $336,915.  In April 2011 the average list price was $321,670. 
• Sold average sales prices increased less than 1% to $270,952.  For April 2011 it was $270,571.  

Did you know...that we had 11,315 active listings during the same week in 2011?  Today there is 8,756 active listings!  That is a 22.62% decrease from 2011.

What are Easement Restrictions? How to Ensure Clear Title on a Property

When buying a home you’re bound to encounter some things that you don’t know anything about. They are things that outside of the home buying process you won’t ever run into. And since the average homebuyer only goes through this process a few times in his or her lifetime, it’s understandable that these things would be unfamiliar. A couple of items that seem to be perplexing are title insurance and the property survey, specifically how easements are represented.

When purchasing a home with a mortgage you need to get title insurance and a survey. This is required for all financed home purchases. An attorney or title company typically orders property surveys. Though the buyer has to pay for this service they usually don’t need to be directly involved in the process.

What is Title Insurance?

Title insurance is just another line item expense when purchasing your house, paid for one time at closing. Essentially, it is protection for you and your mortgage company that the person selling you the house has full and clear title to the property and was able to legally pass it to you. The title insurance company investigates the ownership of the property and then insures their work. If the seller didn’t rightfully own the home, and someone else does, the mortgage company and the homebuyer are financially protected. Fortunately, issues of title defects are relatively rare, meaning that title insurance isn’t too expensive and really not something to worry about.

What is a Property Survey?

A property survey is a carefully measured drawing that shows the land that is for sale and all structures on the property. It shows how large all the structures are and how far they are from each other and the borders of the property. Most importantly, it shows setbacks and easement lines.

Wait, what? It seems like the property lines and structures should be most important, but they are not. The setbacks and easement restrictions are actually the most critical elements of the survey because those are usually where the biggest problems are found.

What is a Setback?

A setback is the required distance between the house you wish to buy and other property features. For example, a city or county ordinance (or even a homeowners association) may require that homes be set back 20 feet from the road. So even though you own your front yard, you cannot extend your house any closer than 20 feet from the road.

Other setbacks indicate how closely you can build to your property boundaries or to your neighbors’ homes. If you live in an area with natural features like streams or lakes, certain special setbacks may also dictate how close you can build to these structures.

What is an Easement?

Easements refer to property with common usage rights. For example, you may own the land that a sidewalk is on, but anyone can walk on this part of your property.

Why Setbacks and Easement Restrictions Matter

What happens if the survey reveals that part of the house (the actual structure) up for sale sits within a setback or an easement? It’s a problem! In some instances it means that part of the house will need to be torn down before it can lawfully be sold. Otherwise title cannot be passed to a new owner because someone is attempting to sell property that was not built legally.

Surprisingly, this situation is not so uncommon. It may not affect the main domicile on a property, but garden sheds or pool equipment are occasionally located in an area where they don’t have a legal right to be. In these cases your lawyer has some work to do. Hopefully, you’ll discover that the structures are grandfathered because they were erected before certain setbacks were enacted. But definitely investigate these matters fully, as doing future improvements on the property may necessitate that they be corrected in the process.

Spend Some Time With Your Property Survey

For some, the survey process is one of those “check the box” items during home buying. Most get it done and move on. But it’s important to look over everything carefully and ask questions. Surveyors are happy to discuss the survey with you, and errors on surveys can occur. Spending 15 minutes looking this over will save you the headache of having it redone down the road when you want to build or make a change on your property.

Many homes under contract will not be able to close after September 30 if Congress does not act.

On September 30, the cost of a mortgage could rise significantly. If this happens, people wanting to purchase a home run the risk of being priced out of the American Dream of home ownership. Even worse, this could hold back the housing recovery.

Many homes now under contract will not be able to close and 1,300 sales per day could stall on September 30, 2011, unless Congress takes swift action to make the current FHA and GSE loan limits permanent.

Well-qualified buyers don't need another hurdle to access affordable mortgage financing.
If Congress does not act, below are examples of the loss of buying power accessible to those purchasing their home though FHA loan program.

County Current FHA Loan Limit Limit as of 10/1/2011 Difference
Atascosa County $332,500 $287,500 ($45,000)
Bandera County $332,500 $287,500 ($45,000)
Bastrop County $288,750 $271,050 ($17,700)
Bexar County $332,500 $287,500 ($45,000)
Caldwell County $288,750 $271,050 ($17,700)
Comal County $332,500 $287,500 ($45,000)
Guadalupe Co. $332,500 $287,500 ($45,000)
Hays County $288,750 $271,050 ($17,700)
Jeff Davis Co. $271,250 $271,050 ($200)
Kendall County $332,500 $287,500 ($45,000)
Medina County $332,500 $287,500 ($45,000)
Travis County $288,750 $271,050 ($17,700)
Williamson Co. $288,750 $271,050 ($17,700)
Wilson County $332,500 $287,500 ($45,000)

How to Buy a House Before Your Other House Sells

In a buyer's market, the inventory of homes for sale can be astounding. Deciding on a home to buy is difficult enough, but what happens when you have one to sell beforehand? Many times, especially in a soft real estate market, a buyer may get into a situation where they find a new house before their current house sells. Acting as a buyer and a seller in separate transactions can be tricky business, especially if you need the equity from your current home to pay for the new home. Luckily there are some best practices that can help show you how to buy a house before your other house sells.

Consider a Bridge or Home Equity Loan. There are many financing options available when it comes to home buying, and bridge loans can be an easy way to finance a new home sale before your existing home closes. A bridge loan is one that is used to provide funds needed for a short period until another source of funds becomes available. Sometimes called a "swing" loan, it allows a homebuyer who needs the equity in his old home to pay for the new one to close on the new home purchase before closing on the old home sale. The interest rates on these loans are typically high. However, because the loan will be paid off in a short period of time, this should not be a huge problem for buyers. In a similar vein, you might consider a home equity loan on the house you already own. This is a bit riskier, but provides the same benefits.

Rent your current home. If you can find short-term or month-to-month tenants who are willing to rent your current home until it sells, you can avoid having to worry about the house sitting vacant while you are moving into the new home. This can help you avoid having to winterize or de-winterize the property and stage the home for showings. You will also be able to apply the rental income to your existing mortgage on the house, to alleviate the financial burden of paying two mortgages.

Work with the Seller. In a soft market where buyers are limited, sellers are often willing to work with the buyer on a purchase agreement that works for both parties. If you've already found the house you want to buy, but haven't yet sold your existing home, it may be possible that the seller will allow you to make a small down payment with a signed contract that permits you to wait to make the purchase until your old house sells.

Thinking About Moving?

Compare where you live to a new location or multiple areas using current information on community summaries, market stability, schools, listing vs. sold price, buyer vs. seller market, and even smoking bans. It's an easy to use tool that provides valuable information.

Bank of America Overhauls Equator System, Accepts Back Up Offers

The short sale process can be lengthy and complex. Unforeseen changes may occur during this process that would prompt you to submit a backup offer to replace the original short sale offer on the property.

This could occur if:

•The original buyer walked out during the process, but you have a backup offer ready to submit from a different buyer.
•There is a change in the buyer’s name during the process.
•The original offer was declined for being insufficient, and you have a backup offer that can be submitted.This guide outline how to submit a backup offer under any of these circumstances.

This is big news for both buyers and sellers because (1) the short sale process doesn't have to be abandoned & restarted if a buyer walks (2) your file isn't reassigned to a new processor.

If you want to search for shorts sale properties click here.