December 2009

Are Short Sales Good for the Housing Market?

I?m often asked if short sales are good for the housing market. Of course ?good? is a relative term. The best market environment would include no distressed sales of any kind?no foreclosures, no short sales, and no deeds in lieu?just regular sales with mortgages paid in full. Conversely, a housing market riddled with distressed sales is a nightmare on Main Street.

While distressed sales were not a large part of the landscape in previous years, we?re seeing more and more of them these days. Some blame this on sub-prime or other risky mortgages. While each geographic region is different, most of my distressed sale listings are a result of the downturn in the economy, not from risky loans. I?ve talked to many homeowners who have exhausted their savings trying to keep their homes after job loss. Others are not so ?fortunate? to have large cash reserves. They list their homes in hopes of selling, but find that decreasing values make it impossible to sell and have the funds needed to close. They eventually wind up in default and lose their home to foreclosure. It?s a vicious cycle.

Click here to read the entire story.

Source: Tom and Gina Branch

Don't Mess With Texas: More Americans Moving In

NEW YORK (CNNMoney.com) -- Americans, it seems, still have a love affair with the West. Texas and Wyoming were the big winners in the Census Bureau's annual population estimates, which were released on Wednesday.

In the year ended July 1, Texas added more people than any other state, and Wyoming had the highest growth rate in the nation.

The population of the United States has grown more than 9% to 307,006,550 since the 2000 census. The population grew 0.86% since last year's estimates.

Just three states shrank during the year. Michigan's population fell by 0.33%, Maine dropped 0.11%, and Rhode Island lost 0.03%.

Click here to read the entire article

Source: Les Christie, Staff Writer - December 23, 2009

White Christmas in Plano

Wow! We awoke on Christmas morning to find that the snowfall that had started on Christmas Eve had continued through the night. We actually have a White Christmas in Plano! We can't remember the last time we've seen snow on December 25th. The local media is reporting 2 to 3 inches of the white stuff fell during the evening setting a new record snowfall for Christmas day. It will all be gone later today as the temperatures climb above freezing, but it was a nice way to start the day!

Source: Tom Branch - Photo Credit: Gina Branch

2009 Holiday Greetings

 

Small Projects, Big Bang

Judicious home remodeling is still worth the investment, according to Remodeling magazine's annual "Cost vs. Value Report."

Uncertainty and restraint are the order of the day in this economy, and that sense of caution is reflected in home owners? return on their investment in remodeling projects, according to REALTORS® in 80 metropolitan markets surveyed by Remodeling magazine for this year?s Cost vs. Value Report.

The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects?siding and window replacement using a variety of materials?involve home maintenance that costs less than $14,000.

Click here to read the entire article

Source: G.M. Filisko - a freelance writer for REALTOR® magazine.

Where U.S. Homes Are Most Overpriced

Properties in these cities stay on the market longest, and sell for less than asking price.

Prospective buyers eyeing real-estate deals in foreclosure-ridden Florida, where home prices have plummeted and unsold properties clog the market, might find fewer bargains than they'd expected. That's because sellers in Orlando, Miami, Jacksonville and Tampa are likely to put their properties on the market for more than what they're worth.

They're not alone. In these markets and elsewhere across the country, homeowners still have an inflated sense of what their properties will fetch. Only 49% of U.S. homeowners believe their home's value has decreased in the past year, whereas prices have plunged for 72% of homes, according to a survey released last month by Zillow.com.

Click here to read the entire article.

Source: Francesca Levy of Forbes

Texas Associates Get Branded Plates

 
Tom Branch's New RE/MAX License Plate

You can find the RE/MAX name on just about everything imaginable. But Associates in Texas have a new, one-of-a-kind option to promote their business: customizable RE/MAX license plates.

RE/MAX is the first firm in Texas to design its very own corporate-branded license plate, which went on sale in mid-November. And Associates there are jumping at the opportunity to order their very own personalized plate, complete with the RE/MAX Balloon and a six-character phrase of their choice.

Being first has its advantages as several news media outlets have reported the story, generating even more brand exposure for RE/MAX. Articles appeared in the Dallas Business Journal, Houston Chronicle, Denver Post and Austin Business News, among others.

"One of the reasons the red-over-white-over-blue RE/MAX Balloon is one of the most recognizable symbols in the world is that our agents understand the power of brand marketing," says Charles El-Moussa, RE/MAX of Texas Chief Operating Officer and General Counsel. "These plates are like mobile billboards all over Texas that give us a unique platform to start conversations about why more buyers and sellers use RE/MAX than any other real estate company in Texas ? and around the world."

Click here to read the entire article.

Source: Deborah Ball, RE/MAX Times Online Associate Editor

Tom Branch Earns NAR Short Sales and Foreclosure Certification

Buyers and Sellers Benefit from REALTOR® Expertise in Distressed Sales

Tom Branch with RE/MAX Dallas Suburbs has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

Click here for the full release.

Source: Gina Branch, RE/MAX Dallas Suburbs

Short sales, Homebuying and Tax Liens

Answers to real estate questions as appearing in the Houston Chronicle

Dear George: I'm selling my house as a "short sale." How will this affect my purchase of another house?

Answer: A short sale avoids foreclosure, but it also negatively affects your credit score, lowering it by as many as 200 points. However, this hit to your credit score can be overcome more easily than the black mark a foreclosure leaves on your credit report?especially if you retain one or two credit cards and keep them current. The IRS used to consider the difference between the mortgage balance and the amount realized from the short sale to be taxable income. This rule was changed by the Mortgage Forgiveness Debt Relief Act of 2007; see Publication 4681 for ruling limitations and restrictions.

Source: Texas Association of REALTORs®

IRS Sets New Rules for Tax Credit

The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.

When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount.

The IRS says the parent doesn?t qualify for any portion of the credit, but if the child hasn?t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009) | Photo: www.irs.gov

KISS Alive 35

Gina and I had the opportunity to see the KISS Alive 35 concert in Dallas from one of the Flagship level boxes in the American Airlines Center. Many thanks to JD and Monica for the invitation!

Gene Simmons and the rest of the band continue to put on a great show with plenty of lights and pyrotechnics. They covered most of their classic hits including Detroit Motor City and Doctor Love. I wanted hear Beth and Christine 16 but neither was on the playlist.

This show is worth seeing! Click here for more information on the KISS Alive 35 Tour.

Source: Tom Branch