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Archive for the ‘Home Buying’ Category

Your Top 5 Home Buying Criteria

In Buying a new home, Home Buying, Home buying in West Houston, Houston Association of Realtors Client Rating, Houston Real Estate, Moving, West Houston Real Estate, West Houston REALTOR Connie Vallone on March 22, 2012 at 1:21 pm

Deciding to buy a home is a big decision!  Whether it’s your first home or your tenth home it’s a big decision.   

The National Association of Realtors survey of home buyers shows that one of the main things home buyers want from their Realtor is help finding the perfect home.  That’s why when I first begin working with any home buyer the first thing I do is discuss with them what they are looking for in their Houston real estate home purchase.  The answer I get is usually something like 3 bedrooms, 2 and half baths and a 3 car garage with granite countertops and wood floors.   Ok that’s about ONE million homes in West Houston alone!  

So what more should you think about when you start your home search ?    Think about how you plan to live in your home, what are the most important rooms, where will you spend most of your time, what are the activities you need room for, what does the outdoor area look like ? 

 Buying a home is not only a very big financial decision is also a very personal decision - this will be your home for many years to come.  So sit down and really think about the top 5 most important things you want in your home and then share them with your Realtor.   If you do this your search will much more pleasant and you will find your perfect home!

If you need a good Houston Real Estate agent that will sit down and take the time to discuss with you the home buying process and finding your perfect home please call me – Connie Vallone 713 249 4177  my email is connie@knowsrealestate.com  You can check out what past clients have to say on my Linkedin Profile or my Houston Association of Realtors client experience rating.

www.vallonehomes.com

Does Moving up make sense in our Current Real Estate Market?

In Buying a new home, Home Buying, Home buying in West Houston, Home Selling, Home Values, Houston Association of Realtors Client Rating, Houston Real Estate, Investment, Selling Your Home, West Houston Real Estate, West Houston REALTOR Connie Vallone on February 10, 2012 at 3:40 pm
 

Does moving up make sense in our current Houston real estate market?

Yes! If you are thinking that you have grown out of your current Houston home and you plan to move up in the next 2 or 3 years but are waiting to sell until the market improves – You need to – Think AGAIN!

The percentage in gain you may get from your current lower priced home in the next few years will be outpaced by any gain you will enjoy in your new higher priced home. If the market only increase 3-4% in the next year or two and your current home is worth $250,000 you will earn much less than if you buy that new home you want for $300,000. 4% of $250k is $10,000. 4% of $350K $14,000.

Right now is the time to find good deals in the Houston real estate market and while you might be thinking you need to wait for prices to come back before you sell don’t forget the house you want to move up to is also going to be higher in price.

For first time home buyers and those looking to move up now is the time to take advantage of a great market.

For more information about buying or selling your Houston home contact

Connie Vallone – Broker Associate First Market Realty    713 249 4177 or connie@knowsrealestate.com

http://members.har.com/Realtor-Agent-Rating/process/dispagentrating.cfm?member_number=579645  or http://www.houstonenergycorridorhomes.com

Why Your Real Estate Agent Should Know Mortgage Finance

In Buying a new home, Home Buying, Home buying in West Houston, Home Loan Financing, Houston Association of Realtors Client Rating, Houston Real Estate, Moving, Preparing to Move, Relocate to Houston, Relocate to Texas, West Houston Real Estate, West Houston REALTOR Connie Vallone on February 10, 2012 at 2:01 pm

 

If you are in the market to buy a home make no mistake a real estate professional that understands mortgage finance can save you from making costly mistakes.  Additionally they can help you find the right mortgage professional to help you with financing by referring good loan officers.  It’s risky shopping for a mortgage loan on the internet.  I have seen a lot of baiting and switching from internet lenders.  Make sure you are using a trustworthy mortgage professional.

After spending 20 plus years in mortgage finance in the Houston Real Estate market one of the first things I do with any new clients is to determine a few basic things they will need to qualify for a mortgage loan and then immediately refer them to a seasoned mortgage professional.    By immediately determining how much you qualify to purchase there is no wasted time looking for homes the you can not qualify to buy.  

This also saves you from potential heart-break of finding your “dream home” only to find out you don’t qualify to buy it.   By finding out before you begin your search how much you qualify to purchase you can set your upper limit before you ever go out to look.   If you start looking at $400,000. homes and then find out you qualify up to $200,000. that $200,000 home is going look like any ugly duckling compared to the more expensive homes.  

So when you decide to purchase a home and start interviewing Houston Real Estate agents find out if they can help you in determining how much you can afford and refer you to a good reputable mortgage professional. 

Connie Vallone  - Broker Associate First Market Realty  member of Houston Association of Realtors , Texas Association of Realtors and National Association of Realtors

713 249 4177  or connie@knowsrealestate.com

www.vallonehomes.com or  www.houstonenergycorridorhomes.com  

NEW LEASE LISTING! 14630 Wind Hollow Circle, Houston, TX 77040 – MLS# 47732764

In Houston Real Estate, Moving, Preparing to Move, Relocate to Houston, West Houston Real Estate, West Houston REALTOR Connie Vallone on January 13, 2012 at 12:56 pm

NEW LEASE LISTING! 14630 Wind Hollow Circle, Houston, TX 77040 – MLS# 47732764

Step into this beautiful home featuring-upgraded tile flooring in entry and kitchen with laminate wood dining area. Kitchen flows to dining area and into your huge living area with French doors and views of your very own private oasis featuring a big sparkling pool with still plenty of play room. Stay cool under the big mature oak trees. Highly sought after Jersey Village schools. Cul-de-sac lot. New roof, exterior paint, hardiplank and carpet. Landlord will pay for pool maintenance.

Follow this link for more information:

http://search.har.com/engine/14630-Wind-Hollow-Circle-Houston-TX-77040_HAR47732764.htm  or contact Connie Vallone with First Market Realty at 713-249-4177 or connie@knowsrealestate.com 

NEW LISTING! 14630 Wind Hollow Circle – MLS# 53770024

In Buying a new home, Contract Terms, Home Buying, Home buying in West Houston, Home Inspections, Home Insurance, Home Maintenance, Houston Real Estate, Investment, Relocate to Houston, Relocate to Texas, Schools, Texas, West Houston Real Estate, West Houston REALTOR Connie Vallone on November 17, 2011 at 12:20 pm

You can have it all! Step into this beautiful home featuring-upgraded tile flooring in entryway and kitchen, new carpet and laminate wood dining area. Upgraded kitchen flows to dining and your huge living area with french doors and views of your very own private oasis featuring a big sparkling pool and still plenty of play room and nice shady mature oak trees.  Highly sought after Jersey Village schools. Quiet Cul-de-sac lot.

Follow link for more information: http://search.har.com/engine/14630-Wind-Hollow-Circle-Houston-TX-77040_HAR53770024.htm

If you are interested in buying or selling real estate in West Houston please contact Connie Vallone First Market Realty 713 249 4177  or visit

www.houstonenergycorridorhomes.com  or www.vallonehomes.com

US Realtors to Show Mexico MLS Listings on Their Websites – PR.com

In Buying Mexico Real Estate, Home Buying, Home Selling, International Real Estate, Investment, Relocate to Houston on November 12, 2011 at 8:44 am

US Realtors to Show Mexico MLS Listings on Their Websites – PR.com.

Home is where your heart is!

In Home Buying, Home buying in West Houston, Houston Real Estate, West Houston Real Estate, West Houston REALTOR Connie Vallone on November 7, 2011 at 3:46 pm

 Home is where your heart is!

Jane Austen Quote - Home

Quoted - Jane Austen

 After a long and stressful day, many of us look forward to “just getting home!”  There is something about the comfort and security of being in our own space and doing many things.  You can see & actually feel the activity with adults, kids & pets gathered and reunited with others in the yards and the neighborhood sharing their day as you pass by!

 From a very young age, I was always mesmerized by the lights, the decorations and other activities of families within when passing their houses.  I imagined the smell of a freshly baked pie, a family game night or other fun activity that only could happen “at home!”

 This fascination has remained and is a strong motivation for me as a real estate agent as I work my clients to find their true home and not just a houseHome is where they will compose a story of wonderful memories that will grow in their hearts for years to come!

Home is MY favorite place to be.

Connie Vallone – Broker Associate First Market Realty – Houston Texas

http://www.houstonenergycorridorhomes.com/  or www.vallonehomes.com

Why take a risk when you move out of your home?

In Home Insurance, Houston Real Estate, Moving, Preparing to Move, Relocate to Houston, Selling Your Home, West Houston Real Estate, West Houston REALTOR Connie Vallone on October 12, 2011 at 2:32 pm

Takiing a risk on leaving your home vacant? Over the years I have worked with several clients that decided to buy a new home and then lease out the home they currently live in or they leave their home vacant while it sells.  Many times those folks will tell me that they are not going to notify their insurance agent of these events because it may or will cause the homeowners insurance to increase.   BAD IDEA !  The article below was written by my good friend and personal insurance agent Rhonda Runge with Serna Insurance.  With her permission I am republishing this article.

If you rent out your current home or vacate it for a long period of time, would your homeowner policy still cover you in the event of a loss?

 The answer would most likely be a resounding NO!  As a homeowner living in your property, the insurance carrier typically would determine that you would have less risk.  Why?  It is because you or some other family member is constantly going in and out of the home.  Thieves are less likely to bother a home where there is a lot of activity.  Also, just be being in your place of residence, you are more likely to fix things more quickly such as water leaks, fires, etc which would reduce the cost of a possible claim.

 

When your property is occupied by renters (someone who is paying you money to live there), there is less risk for suspicious activity such as theft because there are people coming in and out of the dwelling. However, a renter may not be as quick to notify you of a leaky pipe or other issue that could result in a large claim.  Thus the carriers build in this additional type of risk into what is called a “rental dwelling policy”.

 If you move out of your home and leave it vacant for more than 30 to 60 days, a carrier can consider the property to be “vacant” and you would need to have a “vacant dwelling policy”.  This is because the home has a higher risk of being vandalized and/or having critical maintenance items that may not be addressed in a timely manner resulting in a larger claim amount due to no one being aware. 

 Recently, there were two claims situations where the homeowners neglected to inform their agent and/or carrier of a change in residence status for the property.  (One where the home was converted to rental property and the other where the buyer never moved in to the property at all).  In both cases, a fire was the culprit completely destroying the property.  When the “homeowners” went to file a claim, both claims were denied based on improper disclosure of occupancy.  

 Remember that individual policy and carrier guidelines do vary so it is always important to discuss any changes like this with your agent and/or carrier prior to making them.  Unfortunately, you do not want to find out after the fact that you may not be covered.

 Rhonda Runge – Serna Insurance 713 515 8928  or rhonda@sernainsurance.com     http://rhondainsuresme.com/

For more information on leasing or selling your home call Connie Vallone at 713 249 4177 or connie@knowsrealestate.com

www.vallonehomes.com  www.houstonenergycorridorhomes.com  

New Listing! 13815 Menasco Court – MLS# 47267974

In Buying a new home, Contract Terms, Home Buying, Home buying in West Houston, Home Inspections, Home Inspections, Home Insurance, Home Maintenance, Home Selling, Home Value Reports, Home Values, Houston Association of Realtors Client Rating, Houston Real Estate, Investment, Marketing your home, Moving, Preparing to Move, Relocate to Houston, Relocate to Texas, Sellers, Selling Your Home, Testimonials, Texas, West Houston Real Estate, West Houston REALTOR Connie Vallone on September 2, 2011 at 10:11 am

Updated beauty in desirable Energy Corridor within walking distance of Terry Hershey Park and bike trails! Great open floor plan with huge island kitchen open to living and dining rooms with gorgeous golden oak paneling, soaring ceilings and wet bar. Light and bright! Every room features big picture windows and/or French doors leading to your own private oasis with covered patio and lush mature landscaping! Game room upstairs. Two large walk in closets in Master Retreat! Premium location on cul-de-sac street. Recent carpet, new fixtures, new ceramic cooktop, designer paint colors throughout and new exterior paint. AC has new compressor!

If you are interested in buying or selling real estate in West Houston please contact Connie Vallone First Market Realty 713 249 4177  or visit

www.houstonenergycorridorhomes.com  or www.vallonehomes.com

Moving to Texas? How to speak Texan in 60 days or less!

In Buying a new home, Home Buying, Home buying in West Houston, Houston Real Estate, Moving, Preparing to Move, Relocate to Houston, Relocate to Texas, Texas, West Houston Real Estate, West Houston REALTOR Connie Vallone on July 8, 2011 at 11:39 am

Relocating to Texas – How to Speak Texan in 60 days or less!

Texas Flag

 

 Recently, I assisted a family in their relocation to Houston, Texas from Connecticut.  The whole family is very excited to be moving to this great area and to not have to shovel mounds of snow during the winter!   While I met with the client to do the final walk through and hand over the keys to their new home  in The Woodlands Mr. CT told me a cute story and I felt compelled to help out with the family dilemma.  

 Over the weekend while packing they discussed a family trip back home to Connecticut in November.   One son wanted to know if by the time they returned to Connecticut from Texas if he would have a Texas accent.    So I started thinking, “How could this young man impress his friends back home with fine Texas speak in less than 60 days”?   Here are a few pointers that I shared with him:

 Essential Texas Words

“ Y’all” – means you or all of you (or whatever they say up North!) 

“Fixin” – getting ready to do something.  Use instead of “ I am going to do” or “I am about to”  this may be the Number One Texan speak!  You are always “Fixin to go to the store.”

Aggravated -used to describe everything from mild annoyance to dangerous, murderous rage. Usually pronounced “agger-vated.”

Blue Norther – storm that comes up as a giant, blue-black cloud of cold air comes over the warm gulf air and “just about freezes us to death!” Rain and wind may accompany the black cloud.

Fit to be tied – really upset.

Hissy Fit – a state of extreme agitation.

Norther -a storm; not as bad as a blue norther.

Nu-uh – no.

Nuther thang – another thing.

Place – an individual’s farm or ranch.

Plug -common mutt horse.

Plug-ugly – see above. This is definitely not a compliment.

Post Oak -wood that is hard and resistant to rot and can be used for fenceposts.

Sorry – adjective meaning worthless, no-count, useless, bad.

Supper – this can be either thenoonor the evening meal.

Tank – a pond on a farm land or ranch.

Wore Out – fatigued, exhausted.

 A few rules that will help when you’re not really sure the proper Texas speak.

If a word has -ing tacked onto the end of it, that last ‘g’ is always silent. “Fixin’ to”, “Doin’ that”, “Goin’ there” and similar phrases are correct pronunciations.

 If a sentence can be shortened by dropping a few letters or syllables along the way, by all means do it! 

 Examples

A while ago – awollago

Have to” = “hafta”
Some of that” = “sum’at”
“alright” = “a’right”

Who would have thought?” = “Who’da thought?”

The word “of” is not said as its own word, but instead as an ‘a’ sound tacked onto the end of the previous word.

Examples  

“kinda” and “sorta”.

Understanding Texas Phrases

Texans use hundreds of phrases to get their point across that mostly only make sense to other Texans. They can be used in any situation that the speaker sees fit.

Example 

“This ain’t my first rodeo”  

 And finally, speak slowly and draw out every syllable!   To talk like a Texan, practice elongating all one-syllable words into two syllables. The word “big” is pronounced, “bee-yug.” The word “pen” is said, “pee-yun.”

 Make your long “I” sounds into lazy sounds. To talk with a Texan accent, your long “I” sounds need to sound closer to a short “a” sound. Texans don’t get in “fights.” They get in “fahts.” They don’t “buy” something at the store. They “bah” it. They don’t do something “nine times.” They do it “nahn tahms.”

 If you are relocating to Texas– we welcome you!  Don’t forget we fly our Texas Lone Star flag so on your way down stop at the first Wal-Mart as soon as you cross the border!  Also, “PRRACTEECE MAKES PURRRFICT so start learnin’ our fine Texan lingo now!!

I am a native Texan I have lived and worked in Houston Texas Real Estate my entire life.   I love this state and city and I would love to help you and your family relocate and find a home to purchase in the Greater Houston area.  Katy, Sugar Land, Pearland, The Woodlands, Spring and we have many more beautiful communities in and around Houston.    There is something for everyone! 

Please call Connie Vallone 713 249 4177  email connie@knowsrealestate.com    Broker Associate with First Market Realty.   or http://vallonehomes.com

What if I find a house the first day ?

In Buying a new home, Home Buying, Home buying in West Houston, Houston Association of Realtors Client Rating, Houston Real Estate, West Houston Real Estate, West Houston REALTOR Connie Vallone on June 29, 2011 at 8:44 am
Buying a home

Your Perfect home purchase

There is no rule in real estate that says you have to look and 50 plus houses before you buy.   Looking for a home can be hot (in Houston) and  tiring work !   House hunting should be fun and exciting not grueling and disappointing!  

So before you go house hunting invest a little time.   Sit down and list your top 5 criteria in order of importance.   If you are a couple then I always suggest that you each do this on your own and then sit down together and compromise on the top five most important between you.  

 The next steps make an appointment with your Realtor to sit down face to face and talk about your top 5 and why they are important to you.    It always helps me tremendously when my clients will invest 30 minutes so I can really get to know them.    

If you do a little homework before you go on your first home tour you may actually find your dream home on the first day and that’s ok!  It just means you know what you are looking for!!!    

I meet people all the time that tell me they looked at hundreds of houses last year or a few months back and just got discouraged and quit looking.   I usually find that the Realtor they were working with did not insist on spending the time upfront to get to know them and  find what they really wanted in a home.  The result – several home tours that were exhausting and disappointing!  

So make the time investment and find a real estate professional that will make the same time investment upfront before you ever get in the car and you will find your dream home!

Connie Vallone 713 249 4177   connie@knowsrealestate.com

http://www.vallonehomes.com/   or www.houstonenergycorridorhomes.com

Gorgeous and Gracious Executive Home

In Buying a new home, Home Buying, Home buying in West Houston, Home Selling, Houston Real Estate, Moving, West Houston Real Estate, West Houston REALTOR Connie Vallone on June 9, 2011 at 1:23 pm

Gorgeous and gracious executive home. Enter the grand foyer through double leaded front doors that open to formal dining and living areas. Light and bright island kitchen open to huge family room leading to serene and shady backyard oasis. Stately paneled study downstairs plus bonus room and workout/craft room. Spiral staircase leads up to your grand master suite with your own private sun deck. Plus three more big bedrooms! Too many custom features to list. Please see two-page feature list. Plus a new roof was added in 2011. Pride of ownership shows!

More information on this beautiful home http://search.har.com/engine/502-Lee-Shore-Lane-Houston-TX-77079_HAR36650715.htm

Want to know if the Houston home you are buying is in flood zone?

In Buying a new home, Home Buying, Home buying in West Houston, Home Insurance, Houston Real Estate, West Houston Real Estate, West Houston REALTOR Connie Vallone on May 18, 2011 at 2:23 pm
This is a locator map showing Harris County in...

Image via Wikipedia

If you own real estate or if you are thinking of buying a home in Houston you should be checking to see if the home is located in a flood zone.   Don’t assume that just because your home was not in a flood zone when you purchased it that it is still no longer in a zone.   Harris County flood maps change.    

Tropical Storm Allison Recovery Project website as a  Interactive Mapping Tool available as an informational tool. For official flood zone determinations you should contact your insurance agent or floodplain administrator. You can also view the maps for Harris County and the surrounding counties at the FEMA Map Store.

If you would like more information about buying real estate in Houston contact Connie Vallone – First Market Realty 713 249 4177 or connie@knowsrealestate.com    or visit www.houstonenergycorridorhomes.com  – www.vallonehomes.com

This One Won’t Last Long!

In Buying a new home, Home Buying, Home buying in West Houston, Houston Real Estate, Moving, West Houston Real Estate, West Houston REALTOR Connie Vallone on May 18, 2011 at 1:05 pm

Beautiful Home in Gated CommunityThis one won’t last long! Beautiful energy corridor home in desirable gated Parkway Villages – The Courts. Spacious open floor plan with tons of upgrades including wood floors in most rooms, chefs kitchen with granite counter tops, travertine and glass mosaic backsplash, upgraded stainless steel appliances and gas cooktop. Master retreat with doors that open to your own backyard oasis and that has tons of closet space. Designer paint colors. Noritz tankless water heater. Cul-de-sac lot. Walking distance to Terry Hershey Park, excellent schools, energy corridor shops and restaurants.

For more information about properties in West Houston, visit  my website at  www.HoustonEnergyCorridorHomes.com  or contact Connie Vallone at 713-249-4177 or email connie@knowsrealestate.com .

Can you still get a 3.5% down payment ?

In Buying a new home, Home Buying, Home buying in West Houston, Houston Real Estate, West Houston Real Estate on January 4, 2011 at 5:56 pm

FHA is a great option for many home buyersThe Federal Housing Administration was created in 1934 to help people buy homes.  It is still a great option in todays market.    This program as always allowed down payments as low as 3.5% and it is not just for first time home buyers.    It’s also not a program reserved for low to moderate income families.   The loan limits varie from state to state but in Houston Texas buyers can qualify to borrow up to $271,050. 

If you are thinking of buying a home in Houston Texas contact Connie Vallone – First Market Realty  713 249 4177 or connie@knowsrealestate.com   or www.houstonenergycorridorhomes.com   or www.vallonehomes.com

Who Represents the Buyer on New Construction?

In Buying a new home, Home Buying, Home buying in West Houston, Houston Real Estate, New construction home purchase. on December 29, 2010 at 12:18 pm
New Construction Home

Building your own new home

It always amazes me how many people buy a new construction home directly from the builder.  When sitting with a builder sales person it’s easy to forget who they work for. 

 It’s NOT the buyer ! It’s the builder and while almost all of them are good honest people their job is to represent the builders interest – NOT the Buyers Interest.    

Can you imagine being involved in a  business dispute and you’re representing yourself in front of the judge and jury?   Or purchasing insurance without the advice of an insurance agent?  If you depend on people in the service industry for filing a claim for hail damage to your roof, or handling legal matters, then why would you want to represent yourself in the most expensive and probably most important purchase of your lifetime… your new home?     

 If builders rely on real estate professionals to sell their homes, then why wouldn’t you, the buyer, take the same precaution in assuring yourself the market expertise in making this important decision?

Connie Vallone – Broker Associate First Market Realty
connie@knowsrealestate.com  713 249 4177
www.vallonehomes.com  or www.houstonenergycorridorhomes.com
 

Inspect a new home ? Why spend the money?

In Home Buying, Home buying in West Houston, Home Inspections on December 16, 2010 at 8:24 pm

If you are buying a new construction home you may think paying a few hundred dollars to have your own independent inspection is just a waste of money.   Remember builders are great people and almost all of the want to sell you a good product BUT they are people and people make mistakes. 

Example:  I helped a young couple purchase their first home new construction – really nice home in West Houston – Katy.  We closed today !  They did get pay for their own inspection and we did find that the bricks over the garage had a crack in them turned out when the builder pulled those bricks off someone forgot to put a support piece in during the construction.  They fixed it before we closed no problem.  But if they had not paid for that inspection at some point down the road they may have been paying for that major repair out of their own pockets!  

If you are buying a new home or a resale get a professional real estate expert to help you – and always get an inspection!

Connie Vallone  Broker Associate First Market Realty – 713 249 4177  www.vallonehomes.com  or www.houstonenergycorridorhomes.com

How many days does the buyer have to get financing?

In Contract Terms, Contract Terms, Home Buying, Home Selling on November 30, 2010 at 12:37 pm
Photograph of Houston, Texas taken by Daniel A...

Image via Wikipedia

In my previous posts I have addressed a contingency in the Texas Real Estate contract called the Termination Option in Paragraph 23 that releases the buyer from the contract and allows for the buyers earnest money to be released.   In today’s post I want to address the Financing Contingency available to the buyer addressed in paragraph 4.  This paragraph if used properly will also allow the buyers earnest money to be released.  This paragraph should be used when the buyers are not paying cash.   

There are check boxes in Paragraph 4 that should be used to identify the type of financing the buyer will be using to purchase the property.  The three options listed are; Third Party Financing, Assumption or Seller Financing.  Let’s talk specifically about the Third Party Financing option since this is the most typical option and when it is used.  When it is used the buyers may have a certain number of days to terminate the contract if they are unable to obtain financing.

On Page one of the Texas One to Four Family Residential Contract mid page you will find Check box       4. Financing.  A(1) Third Party Financing.  This part says that the property must meet the lenders underwriting requirements or the contract terminates and the earnest money will be refunded to the buyer.   The second part of box 4. Financing is 4 A. (2) Financing Approval.  Below that box (a) states that the contract is subject to the Buyer being approved for financing as described in the attached Third Party Financing addendum.  Box (b) states that the contract is NOT subject to the buyer being approved for Third Party Financing.   

In my next post I will discuss in more detail the Third Party Financing Addendum as referenced in Box 4 A.(2)(a) when the contract is subject to the buyers loan approval.    As a buyer you should be looking closely at page one to be sure that the correct box is checked  and you should be aware of your final date to obtain financing.   And as a seller you should also be examining closely the number of days allowed for the buyer to finalize their financing in the Third Party Financing addendum.  

If you would like to know more about Houston real estate or have any questions about real estate please contact Connie Vallone 713 249 4177 or email me at connie@knowsrealestate.com

You may also visit www.vallonehomes.com or www.houstonenergycorridorhomes.com

Buyers Option Period in Texas Real Estate

In Contract Terms, Contract Terms, Home Buying, Home Selling, Houston Real Estate on September 20, 2010 at 8:08 am

In my last post I promised to address the big question of “What happens to the buyer’s earnest money if the transaction does not close? “   

The answer is the contract does have a couple of contingencies that will allow for the buyers earnest money to be released.    In this post I am going to address one of those contingencies in the Texas – One to Four Family Residential Contract (TAR 1601).   Paragraph 23. Termination Option.  

The first sentence in this paragraph states that for nominal consideration the buyer will pay the seller an (Option Fee) within 2 days after the effective date of the contract for the buyers unrestricted right to terminate the contract.  The paragraph goes on to explain that if the buyer does not pay any dollar amount then there is no option period.   This paragraph in the contract is very important and many times it is not read completely by all parties.   Because of the importance of this paragraph I am going to retype it in its entirety. 

23. Termination Option: For nominal consideration, the receipt of which is hereby acknowledged by Seller, and Buyer’s agreement to pay Seller $____ (Option Fee) with 2 days after the effective date of this contract, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination to Seller within ____ days after the effective date of this contract.  If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller with the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminated this contract.  If Buyer gives notice of termination with the time prescribed, the Option Fee will not be refunded; however, any earnest money will be refunded to Buyer.  The Option Fee __will__ will not be credited to the Sales Price at closing.  Time is of the essence for this paragraph and strict compliance with the time for performance is required.

So this paragraph DOES allow the buyer to cancel the contract and have the earnest money refunded back to them.  But this paragraph is also very specific that the option fee must be paid and it must be paid with 2 days of the contact or there is no option period.  

Texas Real Estate Commission TREC – A Guide for Buyers and Sellers of Real Estate in Texas

If you would like to discuss in more detail this topic or any other regarding buying or selling Texas real estate please contact Connie Vallone 713  249 4177 connie@knowsrealestate.com or visit www.houstonenergycorridorhomes.com or www.vallonehomes.com –Contact Us.  I will state here now that I am addressing specifically the terms of the Texas Real Estate Contract other states may be similar however for specifics regarding contracts in any other state besides Texas please contact a local real estate professional. 

Houston, Texas

Houston, Texas

What happens to the Earnest Money?

In Contract Terms, Contract Terms, Home Buying, Home Selling on September 3, 2010 at 6:42 am
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In my previous post I started writing about the important terms of the real estate offer and contract. As I wrote earlier my plan is to address the key terms every buyer or seller should be aware of during contract negotiations and the real estate transaction. 

It is so tempting and frankly very natural for any buyer or seller and in some cases even an unseasoned real estate agent to get tunnel vision and only focus on the price.  So this will be my second installment of this series to address all the important terms of the offer and contract. 

I will state here now that I am addressing specifically the terms of the Texas Real Estate Contract other states may be similar however for specifics regarding contracts in any other state besides Texas please contact a local real estate professional.  If you would like a referral for a local real estate professional you may contact me at 713 249 4177 or visit www.vallonehomes.com – Contact us. 

So to begin this second installment we will be staying on page one of the Texas real estate contract TAR 1601 One to Four Family Residential Contract (Resale).  At the bottom of the page you will find Paragraph 5 Earnest Money.

 In Texas the title company that is chosen to issue the buyers title insurance is typically also where the transaction is closed.  It is also commonly where the earnest money is held in escrow until the closing.

 Many buyers will ask “is the title company going to cash my check? “  And of course the answer to this question is Yes.  So you do need to transfer funds or do whatever you need to do to cover the earnest money check.  And yes it will be cashed immediately after it is delivered so when you write it cover it.

And both buyers and sellers want to know what happens to the earnest money if the buyers do not close the transaction.   Will the seller keep the earnest money if the contract does not close? The answer here is maybe.  Ok don’t like that answer?  I will address that in the next installment on this series as it is a topic that deserves to be addressed on its own. 

For now understand that the earnest money must be delivered and receipted immediately after all parties have signed and the offer is executed and becomes a contract.  And those funds will be held until closing.  When the transaction does close the earnest money will be credited towards the buyer’s down payment if there is a loan or to the sales price in a cash transaction.

In my next writing I will address the all important question – What happens to the buyer’s earnest money if the transaction does not close?   

If you would like to discuss in more detail this topic or any other regarding buying or selling Texas real estate please contact Connie Vallone 713  249 4177 or visit www.houstonenergycorridorhomes.com or www.vallonehomes.com 

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