Want to Save Money? File Your Homestead Exemption

Here's an email I sent to all my clients recently. I was going to post this soon after said email was sent but then I got busy. I'm very important you see. Thus, I get busy from time to time. And when I say busy, I mean forgetful.

If you purchased a home in 2009, please read the following information on Homestead Exemptions that I copied from the Dallas Central Appraisal District website and applies to the entire state of Texas.

"A property tax exemption excludes all or part of a property's value from property taxation, ultimately resulting in lower property taxes. To qualify, the property must be designed or adapted for human residence and the homeowner must own the property on January 1 of the year application is made. The person claiming the exemption must reside at the property on January 1 and cannot claim a homestead exemption on any other property. If more than one individual (not a married couple) owns the property, each separate individual must make application if they reside at the property. Exemptions are allocated according to percent of ownership interest the applicant has in the property. The exemption application must be completed, notarized and include a driver’s license or social security number and date of birth."

If you have not already done so, please go to the relevant district website below where your property is located. For most of the websites you can search for your property and then click a link to print out a homestead exemption form. I have also included the phone numbers for each of the appraisal districts should need to contact them directly. And of course, you are always welcome to call me if you have any questions about the homestead and other exemptions.

Dallas Central Appraisal District

214-631-0910

www.dallascad.org

Collin County Appraisal District

469-742-9200

www.collincad.org

Tarrant County Appraisal District

817-284-0024

www.tad.org

Denton Central Appraisal District

940-349-3800

www.dentoncad.com

(The Homestead Exemption application link is at the bottom right of the Home page)

Forbes List of Cities Where Homes Have Lost the Most Value

I love Forbes' lists. This is a nice list of cities across America that have lost the most value since the "Peak" which is some magic formula using 2004 values and 3rd Quarter of 2009.

I'm not surprised by any of the cities on this list. I'm also not surprised Texas isn't on any of them. I am surprised however that the Northeast cities have done so well during this housing crisis since that area tends to appreciate quite a bit. What does that mean? In my opinion it means that area has remained in demand. Most likely because that area has been built out much more than almost all other cities on this list. Kudos to you Northeast US!

Having Problems With Your Appraisals?

This is a pretty good article explaining how appraisals are killing more deals in today's real estate market. It's not the appraiser's fault...every time. And yes, listing agents will resort to begging in order to get their listing sold. Something we shouldn't be proud of but it happens all the same.

Consider an example where a home has been listed for 280 days and they finally get the home under contract. Until the appraisal comes in at $50,000 below the agreed contract price. If the seller doesn't drop the price by $50,000 then the buyer must come up with the $50,000 difference or else the deal falls apart. Guess what happens 98% of the time? The deal falls apart. It's heartbreaking for both buyer and seller and the lender. But how do we know if the appraiser really knows what they're doing? They're human and can make mistakes, right?

Fortunately, I have not had any appraisal problems but I have certainly had a few appraisers call me and ask for extra comparables. But the article points out a big problem and that is the lender will sometimes hire an appraiser not familiar with the area in which the subject property is located. Appraisers are similar to real estate agents in that both tend to have areas of focus. Most Dallas agents can't speak elementary about Ft. Worth real estate and vice versa. So then why is an appraiser any different? Yet Ft. Worth appraisers appraise Dallas real estate all the time. And there are many disagreements.

It's also odd that an appraiser will ask for a copy of the contract and, therefore, see the agreed sales price, before they've stepped foot in the property? Isn't this like cheating? I've never understood this practice. Aren't appraisals supposed to be unbiased reports? Wouldn't seeing the sales price before seeing the property make the report biased?

Whatever. My buyers get good deals and don't have appraisal issues and neither do my sellers. I guess that means I'm doing something right.

Conservation Districts vs. McMansions: Which is Better?

These two homes are located on Richard Ave. in Vickery Place. There are many more homes that looks just like these scattered throughout Vickery Place yet the Conservation District doesn't seem to do anything about it.

In the never ending debate over which is better, bulldozing old homes to make way for McMansions or encouraging renovation of older homes with "character", there never seems to be hard data to clearly support either side. What I will say - bluntly, cuz that's how I roll - is that Vickery Place should have NEVER been allowed to be a Conservation District.

You tell me, are these homes increasing Vickery Place's property values more than if a $500K+ McMansion were to be built on the very same lots? (Yes, I know a builder can still build in Vickery Place, but not without a bunch a red tape and getting approval from a biased Board.)

If you think McMansions ruin property I suggest you talk to residents of Preston Hollow, Park Cities, Lakewood and Lakewood Heights. They don't seem to be complaining too much about their property values.

Gambler Loses $127M Then Blames Casino...Seriously

This isn't exactly related to Dallas real estate but I couldn't resist posting it since you know how I love me some stupidity. This is just another example of how our society continues to avoid taking responsibility for our own actions. Remember the McDonald's coffee lawsuit? Lord and Baby Jesus help us if this man wins this lawsuit.

(Thanks, Mark, for the link!)

New Marketing Technique Using "Artistic" Photos?

Nope. Just another poor seller who is not getting their money's worth. Or maybe they are? Either way, this is poor form and should never be acceptable to any real estate agent or their clients. At this time, there is only 1 photo. And this is the one they picked? Hopefully the seller speaks up about this.

The Best Dallas Photographer in Dallas. Maybe the Country.

Sublime Red Line
Originally uploaded by the urban fabric

So I'm being cheeky in the title. But if you haven't heard of Justin Terveen or seen his work then you are seriously missing out. His photos are nothing short of jaw dropping. Check out his Flickr page.

Amazing stuff.

Home Sales Increase by More Than 10%

But don't go popping corks on the Veuve just yet. While it may be true home sales have risen to their highest level in 2.5 years the experts accurately state that this jump in sales was due to many buyers having already been under contract before the first time home buyer tax credit was extended to April of 2010. That being said, we are likely to see stagnant sales over the winter and then they will ramp up as we near the April 2010 tax credit deadline. From the omniscient experts,

Experts forecast that prices will fall again. Most say they will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.

I've already expressed my concern about the threat of rising and/or continuing foreclosures. And it looks like the experts agree.

A record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September, the Mortgage Bankers Association said last week.

What this means to you, Dear Reader, is that if you are in a neighborhood full of short sales and foreclosures, you may have to wait until 2011 before you see a turn around in prices. If your neighborhood doesn't have that many short sales or foreclosures your home value will still feel the indirect effects of a lousy economy laden with foreclosures. So sit tight. Update that kitchen or the master bath, beef up your landscaping and enjoy your home. And if you get relocated and have to sell then at least your home will be in great selling condition.

Is this the Most Expensive Lease Property in Dallas?

I'm talking about Casa Bellamini, of course. I mean, who doesn't have $50K a month to spend these days? To be fair, the monthly rate includes maid service, a private chef, and a full time butler and house manager. Good Lord. To put this into perspective, if you make over $1 million a year you probably still can't afford to lease this place.

This home is also for sale with an asking price of $7.9M, which is a far cry from the original asking price of $13M. That's a whopping $5M price reduction! Check out the home's website here. I've seen this home a few times and I have to say it is breathtaking. My favorite feature is the pedestal sink in the master steam shower. Perfect for a man (or woman) who prefers to shave while in the shower.

NAR Has Fun With Numbers

Feel free to read this somewhat wordy article released today by NAR. Here are some of the highlights.

Existing-home sales are expected to rise 13.6 percent in 2010.

The 30-year fixed-rate mortgage will average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year.

Home prices should rise between 3 and 5 percent in 2010.

The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.

All Realtors should be thrilled with the increase in home sales. However, I wouldn't expect Dallas to live up to the price appreciation forecast. We tend to lag behind whatever the country is trending towards. I expect Dallas to remain stable and possibly depreciate 0% to 1% in 2010 mainly due to flushing out the bulk of the foreclosures and short sales.

And finally, I'm not sure what is meant by the unemployment rate "easing to 9.5%" means. Is it going up, down? This, IMHO, is the major factor in determining the future success of Dallas real estate. Many people are forced to foreclose because of a job loss. They have no savings, mortgaged to the hilt, credit cards are maxed and then BAM! They get laid off. Ninety days later the house is foreclosed on. So until people can be secure in their jobs I wouldn't expect 2010 to be all roses. But it also won't be all doom and gloom. There are many deals to be had out there and smart buyers are taking advantage.