COLLEGE STATION  – College Station was the only city in Texas to make Kiplinger’s list of top ten great cities for raising families.

The findings were based on job growth, healthy economies and vibrant local culture. Additional information such as areas already filled with families with children, quality of public schools, low crime rates, and amount of parks and recreation were then taken into consideration.

“Great public schools and low crime are not the only draws of this small Texas city,” said Kiplinger. “College Station has also seen steady wage growth and a low unemployment rate of 6.9 percent. Plus, there are plenty of cultural and athletic events at Texas A&M University, an interactive children’s museum, and dozens of parks and playgrounds on the shores of nearby Lake Bryan.”

Susan

979-764-2100

Century 21 Beal, Inc.

The CSISD Board of Trustees has held numerous public forums to discuss the rezoning, get feedback from College Station citizens, and attempt to solve this rezoning issue with as little disruption to the community as possible.  After these public forums, the Board continued to meet in an effort to process all of the feedback received.  As officially stated on the College Station rezoning website, the main goals of the Board and the CSISD rezoning committee were: to zone schools for a comparable composition of students, to establish feeder patterns for students in 5th-12th grade, and to zone schools for growth.  Their resulting recommendations involved the proposal of new elementary and secondary school zones.  To view the propsed elementary zones, please click here.  To view the proposed secondary school zones, please click here.

Additional details are available on the CSISD rezoning website: Rezoning for the 2011-2012 School Year.  For further background on how the committee arrived at each of their recommendations, community members are advised to view the video presentation submitted by the Rezoning Committee to the Board, located here.

The College Station I.S.D. school board will adopt the final attendance zone plans this fall.  Elementary, intermediate and middle school plans take effect in the fall of 2011, and the new high school attendance zones will take effect in 2012, once the new College Station High School opens.

If you have any concerns, questions, or if you are unsure of where your property lies in relation to the zones, you may consider attending one of the upcoming public forums.  They are as follows:

• Wednesday September 8th, AMCHS Auditorium at 7:00 p.m.
• Tuesday September 14th, AMCHS Auditorium at 7:00 p.m.
• Thursday September 16th, AMCHS Auditorium at 7:00 p.m.

As always, continue to check back for more expert real estate advice, College Station and Bryan community information, and other news that affects you!  If you have any questions about College Station school district zoning and how it affects your currently owned or potential real estate, feel free to contact me any time.

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

David F. Bottenfield
Broker/Owner Premier Properties
939 N. Augusta St.
Staunton, VA 24401
540-885-6708-Office,
540-480-4003-Cell
540-885-6637-Fax

This charming Bed and Breakfast hosted us for the 4 day trip in quintessential elegance. We could not have asked for a better host than David Bottenfield.
David Bottenfield, a long time Real Estate Broker and former Century 21 franchise owner, even took time to show us the old town and several of the old Civil War era buildings etc. I was FLOORED!!! David Bottenfield is easily one of the most knowledgeable Brokers about his market I’ve ever met! If you need an amazing place to stay, are planning a neat holiday, or want to talk about Staunton Real Estate call my new friend David Bottenfield! You’ll be glad you did.
I need to run now but more to come about David Bottenfield and whats going on in Staunton VA. Sorry Staunton, secrets out!

With a 2-1 buy down, the purchaser temporarily lowers their interest rate on a 30-year mortgage.  For example, with an interest rate of 4.25%, a buyer would lock into a deal of paying only 2.25% for year one, 3.25% for year two, and back up to 4.25% for years three-30.  However, most mortgage professionals generally do not recommend a 2-1 buy down if the borrower is paying for the buy down.  This is because the costs that are charged the borrower at closing are generally equal to the savings in lower payment the first two years. 

The main disadvantage of buying down a mortgage is that you will have spent cash up front that you might have been able to use elsewhere more advantageously.  Some mortgage companies suggest that the lower interest rates that you pay will free up your cash flow to buy other things, such as furnishings.  However, you already had that money before you paid it as a lump sum at the beginning of the loan.

Additionally, the basis for a mortgage buy down is an adjustable rate.  You will receive a lower rate at the beginning of the buy down period than you will face at the end.  Adjustable rates are not altogether bad; in some cases, they grow appropriately with your income and help you afford a more expensive home.  However, if not managed properly, adjustable rate mortgages can be very detrimental.  If you are planning on reducing a 4.25% interest rate to 2.25% for one year, 3.25% for a second year, and 4.25% on, you will need to be able to make the higher payments once the third year comes along.  People who elect adjustable rates always have good plans to make more money and afford the higher payment.  But it is crucial to remember, plans do not always come through.  There is always the possibility that you will not get that raise or promotion you were counting on to help with the third year payments. 

Then, there is the consideration of taxes.  Taxes paid on the purchase the first year are generally based solely on the land owned.  So for the first year and a half, owners are paying lower taxes.  Once the home is taken into account, taxes will soar the second year, and owners may be struggling to catch up.  If they are $200 behind the second year, this will get compounded with the following year’s taxes, making it incredibly difficult to stay on track.  This coupled with the rising interest payments means some homeowners simply will not be able to afford their home.

For example, let’s consider taxes on a $100,000 30-year mortgage with a 2-1 buy down.  Your interest payment for year one will be $382.25 plus $55 (only taking into account the land) in taxes.  This comes out to $437.25.  Year two will be $435.21 + $55 taxes = $490.21.  But say the homeowner was only prepared to pay the first year’s total of $437.25.  This means they do not pay $52.96 of their bill for year two.  Then year three reaches its highest point of both taxes (as the house will now be taxed) and interest rates.  This leaves the homeowner struggling to make the $491.94 payment + $220 taxes + $52.96 left over from year one.  The payment of $770.90 would be a huge shock and a hard one to match when the homeowner was used to paying little more than half of that.  Bear in mind, anything not paid that year will only follow through to the next year, making it increasingly hard to ever pay in full.

In this situation, it is best to ask the lender to base taxes (from the first year on) on the estimated value of the house and land.  This way, the owner knows exactly what they will be getting into and can budget appropriately from the start.  If you happen to pay too much, you will simply get it back at the end of the year. 

For the reasons I’ve cited above, I simply cannot recommend a 2-1 buy down to any of my clients or prospective clients.  It is best to purchase a home at the price and interest rate you know you can afford.  This way, you are able to move into your home without the fear (or reality) of losing it after not being able to keep up with payments.  This is my advice especially for first-time homebuyers, who are often at the max of their budget. 

If you have any questions on FHA loans, rules, or the things I do and do not advise when considering the purchase of a home, give me a call.  If you are interested in simply shopping around for some of the beautiful properties in College Station and Bryan, feel free to contact me anytime for expert real estate advice.

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

Century 21 manages many transactions on foreclosed homes in Brazos County.  After comparing these recent transactions’ list prices versus sales prices, a huge saving trend is obvious.  The average savings purchasers realize when buying a foreclosed property in our area is 17%.  And according to realtytrac.com, a real estate website that tracks trends including foreclosures, the national average when buying a foreclosed home was about 15-20% below the full market value of a home.  A would-be homeowner could potentially save even more money by buying a home that’s been taken over by a bank or lender seeking to recover money still owed on the property.  It is important to note, foreclosed homes generally do not have a price reduction simply to match the current market.  But these homes generally are low priced to begin with, and the sellers are much more willing to accept many substantially lower offers.  Additionally, if a buyer is in the position to make one, cash offers are considered gold in the current market as financing is difficult to come by.

These available foreclosures are all listed through Century 21 Beal, and buying through a real-estate office is considered the best way to purchase a foreclosure.  Not only do these properties tend to be in better shape, you also will get the advantage of fully inspecting the property and receiving a clear title. 

1. 1725 Harvey Mitchell#1527 College Station $141,900.00
2. 1213 Remington Ct. College Station $149,900.00
3. 8417 Turtle Rock Loop College Station $294,900.00
4. 2115 Ella Lane  Bryan   $139,750.00
5.  2111 Ella Lane Bryan $139,750.00 
6. 2107 Williams Way Bryan $204,900.00 
7. 1301 Columbus Ave Bryan $31,900.00 
8. 611 E 29th St Bryan $199,900.00 
9. 4711 North Texas Ave Bryan $59,900.00 
10. 1341 Baker Ave Bryan $139,900.00
11.  4516 Kingsdale Bryan $127,900.00
12. 2409 Pleasant Rose Bryan $142,900.00
13.  1101 Post Oak Hearne $68,000.00 
14. 21354 Valley Ridge Dr. Bedias $20,900.00 

Homes such as these, priced as low as $20,900 are a huge bargain.  Rest assured, they won’t sit on the market for long.  If you are interested in purchasing a foreclosure, or if you have any preliminary questions, please feel free to contact me at your convenience.  Whether you are looking to invest in a property, or are wanting to purchase a dream home at a deep discount, I will be happy to discuss the specifics with you.

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

According to the National Association of Realtors, home resales dropped a record 27.2%—nearly twice as much as analysts had expected—to an annual rate of 3.83 million in July.  Meanwhile, inventories rose to 12.5 months from 8.9 months in June, pressuring already depressed home prices. Inventories are at their highest level in more than a decade.  As I mentioned yesterday, we are used to seeing a drop-off in sales towards the end of summer.  And historically, July is the peak inventory month in any given year – whether it is a slow market or not.  However, the combination of an early drop-off in sales and an unheard of peak in inventory flooding the market places pressure on those trying to sell. 

NAR analysts suggest that unemployment, foreclosures, and the increase in inventory is preventing many potential homebuyers from making a purchase.  Some are most likely worried about the huge financial obligation, while others are simply waiting for the prices to drop even further. 

On the whole, July existing-home sales dropped 29.5% in the Northeast, 22.6% in the South, 25% in the West and 35% in the Midwest.  The Texas economy, though affected like the rest of the nation, has remained stronger than most.  Additionally, our unemployment numbers are lower and locally, Texas A&M employment offers some respite for these issues.  This is a large part of why our housing market is less affected than the rest of the nation. 

As I noted yesterday, the College Station market experienced much good news that was unparalleled in the rest of the country.  This brings me back to my statement made: if a home is priced correctly and marketed well, it will sell at a great price within an average of 3-4 months.  So if you interested in selling your home, but are worried about the current state of the market, remember that no market is impossible.  Let me devise a plan to assist you!

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

The good news for buyers is: more available homes entered the market in July 2010 than in July of the previous two years.  In 2008, 442 new listings were accepted.  In 2009, we took on only 346 new listings.  But in 2010, we received an impressive 450 new listings.  As mentioned previously, if you are in the market for a new home, it is an optimal time to be in the buyer’s seat. 

The less positive numbers reflect monthly sales, and listings under contract.  Normally, we expect and are used to these numbers dropping at the end of summer, but this usually occurs in August.  Of the 450 new listings we received in July, only 98 went under contract this month.  This is much lower than usual, even for 2010.  This is especially the case when compared to the sales in April, which were inflated by the homebuyer tax credit-related spike.  Further, the total monthy sales were down quite a bit in comparison with years prior.  Total monthly sales in July 2008 were $61,873,310.  For July 2009, numbers were low at $47,453,045.  This July, numbers were substantially lower at only $30,773,396.  That is a reduction of over 50% of total sales compared to 2008. 

As always in the field of real estate, there will be some positive and some negative information.  It is usually dependent on whether you are in the buyer or seller position.  Important facts for sellers to take away from this article: if you are truly serious about selling your home, you must price it accurately.  If it is priced right, you can expect it to sell within 3-4 months, as proven in July.  If your home has been sitting on the market and is not being viewed often, or is just not selling, you may have priced it too high.  Selling your home quickly could be a matter of simply adjusting the price; however, this does not mean you can’t get a great deal for your home.  Call me and I can discuss the basics of your home, the price I recommend, and the marketing strategies I will employ to sell your home quickly at a price that is right for you!

                                                     Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

Old real estate investment strategies involved what we call flipping a home.  In this practice, an investor buys a property, puts a little money into it, and sells it as quickly as possible for a profit.  These investors earned the monker “vultures” for their repeated practice of swooping in and purchasing foreclures, short-sales, and other distressed properties.  But with fewer overall buyers, and those buyers able to be more selective, this is becoming the less common route of the investor.  Today, they are more likely to hold onto a property purchased with the intent of renting it out.  While it may be hard to sell a home right now, it is comparably incredibly easy to find a renter.  And this practice is substantially more stable, and oftentimes more lucrative.  Take into account the relatively low monthly payment on a foreclosed home, maintenance fees, and taxes.  Now consider that rent accrued will be substantially higher than the costs.  While it would be hard to live off a rental property alone, an extra few hundred dollars a month is likely to be very helpful during these tough economic times.

Then there are those investors (generally investment firms) seeking to not only get a return on their purchase, but help out fellow community members in need.  A recent trend among a small percentage of those purchasing distressed properties has given hope to many homeowners across the country.  Some investors are choosing to purchase the loan on a home before it reaches foreclosure; this way, they are able to acquire the loan at a deep discount and renegotiate the terms with the homeowner.   Typically, this means that balance, interest rates, and monthly payments will be discounted for the homeowner.  The main reason this type of deal is possible is that these firms buy loans, mostly from banks, at steep discounts to the balance due. If a fund pays $50,000 for a loan with a $100,000 balance due, for example, it can make a profit even if the borrower ends up paying back only $70,000.

Cutting the loan balance is one of the most effective ways to motivate borrowers to resume payments because it gives them more hope of eventually owning the home, say nonprofit groups that work with distressed borrowers.  However, banks have been reluctant to reduce principal, partly because that would require them to recognize losses they still hope to avoid. Their modifications almost always involve reducing the interest rate or giving the borrower more time to pay.

Still, every day the number of foreclosures in the College Station and Bryan markets continues to rise.  In fact, in our Century 21 office, we have received five additional foreclosures in Bryan/College Station today alone.  While this marks a disappointing trend for some community members, it is an excellent opportunity for those investors looking to augment their income.  If you are one of these potential investors and have any questions about buying a foreclosed home, please contact me at your convenience.

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

It only took about 2 hours of waiting to get to the counter to pay and have his picture made for his new license at the Bryan College Station Departement of Motor Vehicles (DMV or DPS). To his right a man was renewing his license.  The man was just a little bit ahead of us in the process. The clerk behind the counter took his information and his picture and said “that will be $11″. The man handed her a credit card and with a snide voice the clerk said “we only accept cash or check.”  The man responded that he did not have any cash on him but he would hurry to the bank and would be right back.

Well you can guess what the clerk said. “You’ll have to come back tomorrow and stand in line again. We will be closed before you get back.”

My son looked over at me and quietly asked if he could give the man $11. Of course, I said yes.

The man graciously accepted the money and asked where he could return it. I gave him my business address and really had no idea if we would ever see the money again.

Today the man from the DPS counter walked in with our $11 and said “Thank you so much. You offered money to a stranger. There are good people out there.”

It was my pleasure to call my son and let him know the stranger repaid the $11.  Funny - my son was not surprised at all.

Susan Hilton

Century 21 Beal, Inc.

979-764-2100