TOPICS INDEX

RENTS AND HOUSE PRICES ARE GOING UP!

A NOTE CONCERNING NORTH TEXAS REAL ESTATE

TIMING IS EVERYTHING

GETTING OVER THE 3% REALTOR® COMMISSION

FINANCING? DO WE USE THE BUILDER'S MORTGAGE COMPANY OR OUR OWN?

FIND THE RIGHT BUILDER AND COMMUNITY FOR YOU - KNOW WHAT YOU WANT

KEEP AN OPEN EYE FOR PRE-CONSTRUCTION SALES EVENTS

USE YOUR REALTOR® AS A LEVERAGE TOOL IN YOUR NEW HOME NEGOTIATIONS

SOME THOUGHTS ABOUT THE PRESENT ECONOMY

REAL ESTATE AS AN INVESTMENT

FINALLY

RENTS AND HOUSE PRICES ARE GOING UP!

If you are a renter you are most likely discovering that rent prices are on the way up. Many DFW area apartments are seeing rate increases up to 50% on lease renewals for leases that are expiring in late 04 and early 05. Sad fact is that house prices have also JUMPED since April of 2005 in the Greater Collin County region. With stable interest rates, and an ever increasing presence of INVESTORS prices look as if they are going to stay up for the foreseeable future. 

The only way off the escalator to higher monthly RENT payments is to buy NOW versus paying higher rent or higher house payments later.. Since Apartments2go is part of ARG, we keep constant track of Apartment rents being paid in the DFW Metroplex. If you are in the market for a house, acting sooner will insure lower prices and LOWER monthly payments. 

Since April of 2005 New and existing inventories have come under a strain of demand. Nice homes are gone quickly at or very near asking prices. If you're in the market and see something that is priced low you will not get a second chance in most cases to reconsider the home on a second visit. ARG can help you find New and Existing quality homes that have excellent marketable aspects to them before they are contracted. Real Estate is all about timing.

A NOTE CONCERNING NORTH TEXAS REAL ESTATE

Unlike California and much of the East Coast money is made or lost on Real Estate in North Texas market when you buy. By finding an exceptional value "up front" you lock in your equity cushion. On the other hand, if you fall in love with a particular house and fail to consider its CURRENT REAL MARKET WORTH, you can easily develop a bad case of buyers remorse once reality sets in or worse if your plans change and you find yourself selling sooner than later at a MEASURABLE LOSS.

Yes, homes do appreciate with inflation in a general sense. Since the mid 90's homes have increased in value about 60 to 100%. If you live in certain "City Areas" your rate of appreciation can be higher. Location is always key along with scarcity of land. In the out lying areas Home appreciation is dependent upon in most cases the "New Home Factor." New Home Construction will affect you home's value if you try and sell shortly after you buy.

Looking at the "Bright Side" of buying a North Texas Home when compared to Homes in California, the East Coast or even in some Mid West States is that you can buy MORE HOUSE for your money and live a lifestyle you could only dream about in other parts of the Country. So while you like the "pricing" of North Texas Real Estate you must remember NOT to over pay "Up front." If you decide to buy a Home anywhere in the Collin County or North Texas area, Forney Home Rebate will help you find the most home for the least cost. We understand North Texas Real Estate and can help you BUY RIGHT!

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TIMING IS EVERYTHING

BUYING DURING NOVEMBER THROUGH EARLY MARCH TYPICALLY MEANS LOWER BUILDER PRICES AND LOWER INTEREST RATES!

A good Realtor® does not "WAIT" for business to just "happen." He finds out where the best deals are happening FIRST and then gives his clients the right of FIRST REFUSAL before word of these great deals spread to others. Most Great Sales Events are OVER before the average Realtor® finally gets word. Our Motto here at Forney Home Rebate is simply this, "equity is made when you buy, not when you sell." And that is why we spend so much time previewing home builders and why you should consider NO ONE ELSE if you're serious about buying a a New Home.

EXAMPLES:

Last February Forney Home Rebate got word of this Huge Builder Sales Event FIRST  and informed our Clients days before the Weekend Sale started. This Sale was discounting New Inventory Homes at Craig Ranch up to $40,000 Dollars. $40,000 off homes priced around $200,000 is a 20% price cut (like buying a Brand New Foreclosure with FULL WARRANTY!)  To get right to the point by Sunday evening all 13 inventory homes sold and 13 buyers got instant home equity because their TIMING was RIGHT! Keep in mind is that if you had worked with me you would also have received an additional cash Rebate of $3000 Dollars on top of the $40,000 price reduction versus leaving it behind on the Closing Table.

In the Summer of 2004 Perry Homes announced a Huge Close Out Sale on their Luxury Homes in Wyndsor Grove at Stonebridge Ranch. Price reductions of $105,000 Dollars on $395,000 Dollar homes can't be kept quiet long amongst Real Estate Agents and again Forney Home Rebate had this information FIRST and more than 1 of our Clients were able to Contract before all these homes were gone! That's 2 out of 5 Homes for Forney Home Rebate! The sale was over in just 5 Days! Not bad. These buyers will also receive a Rebate of $7,500 and $8,000 at Closing from Forney HOME REBATE!

See examples of actual offerings in Forney:

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GETTING OVER THE 3% REALTOR® COMMISSION

If you can't get past the idea that a Realtor® can save you money on your New Home purchase and help you NOT make costly mistakes when you get to the contract table then please read on. Actually the 3% Realtor® Commission does 2 IMPORTANT THINGS for YOU.

1. Pays for and provides YOU with Buyer Representation from an experienced professional THAT WILL PROTECT YOUR FINANCIAL INTERESTS. Remember the Builder's Sales Agent is an AGENT for the BUILDER. Who is YOUR AGENT when you're ready to Contract? How do you know your getting the lowest price or other concessions?? Have you seen a MARKET ANALYSIS so you know the price you are about to PAY is FAIR?

2. Gives the Builder a financially effective means to MARKET their New Homes to the Public.

In short 3% is a minor marketing expense for the builder to pay for the continual stream of home sales they realize through Realtors®. Also and even more importantly is the 3% is NEVER PAID until a HOME IS SOLD unlike Radio, Newspaper and mass mail outs that have to be PAID with the possibility of NO SALE and ADD Thousands of dollars of cost burden to the HOME you want to PAY LESS for!

Realtors® in the DFW Market sell anywhere from 50% to 90% of all New Homes that are SOLD! Without Realtor® sales, there would be few builders to choose from and fewer banks who would be willing to finance New Home constructions. Without Realtors®, finance and marketing charges would eat away from builders profits and either drive them from business or drive up costs.

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FINANCING? DO WE USE THE BUILDER'S MORTGAGE COMPANY OR OUR OWN?

If the Builder is discounting their prices to clear inventory or to get contracts then going with the Builder is your best course of Action. You can always refinance afterwards. With Forney Home Rebate we can provide leading mortgage lenders who can put together loan packages and pay 80% - 100% OF YOUR TITLE POLICY thus in many cases neutralizing any benefit of staying with the Builder's Mortgage Company. Finding the RIGHT Mortgage Lender does make a difference in what you pay each month and on your total costs. Part of our services to our clients is to provide alternatives that can help you find additional savings. Leading edge "Interest Only" finance packages can save you up to 25% on your monthly. I can help you understand this option when you use me as your Buyer Agent.

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FIND THE RIGHT BUILDER AND COMMUNITY FOR YOU - KNOW WHAT YOU WANT

To begin with find a home, community and subdivision that you really like. Talk to the Builder's sales rep and ask him to contact you or your realtor® the moment a great special comes along. Many times with inventory or weekend sales events if you're the last to know, Specials become meaningless.

A client of mine just contracted with an area Builder. He got a call from the sales rep who told him he would get a $25K price reduction only IF he contracted that weekend - and he did! He had told the builder he would buy when the price was right and had negotiated for about 8 weeks with no success. When he got the call about the price reductions he was ready to act. Having me as his buyer representative had NO BEARING on the DISCOUNT offered. In addition to the $25K reduction in price he will also get a Cash Rebate for over $2400 dollars!

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KEEP AN OPEN EYE FOR PRE-CONSTRUCTION SALES EVENTS

Also look for Pre-Construction sales promotions and don't forget to ask ALL the builders that you visit if they have any Grand Openings planned in the area. These are usually very aggressive sales events. Two of my clients last year got the lowest prices offered in a new Subdivision plus a nifty $5,000 Rooms to Go Gift Card plus my Buyer Rebate. Its hard to have buyers remorse when you strike such a good deal! At Pre-construction Grand Opening sales Builders want 'contracts' and are willing to discount liberally - especially when they can't even show you a model!

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USE YOUR REALTOR® AS A LEVERAGE TOOL IN YOUR NEW HOME NEGOTIATIONS

Contrary to what many home buyers believe one of the advantages of telling a Builder's Sales Rep that you are working with a 'Realtor®' is that it makes that Rep KNOW they WILL have to compete to get YOUR business. What may seem at a casual glance to be a burden to the price negotiation process actually becomes a financial leverage or benefit that you can and should use when negotiating. 

For example, a recent client of mine employed this strategy to successfully obtain an additional $6K in builder concessions. For him it meant getting the elevation he wanted on his new home. For the builder it meant a signed contract. This particular builder almost never discounts more than what corporate allows, but they did for him. During the negotiations I spoke to the builder's rep directly and told her that my client, although fully qualified and ready to contract, would most likely not buy their home unless they would agree to the elevation change without added cost and that there were 2 other builders that were also being considered. Again my client had time on his side and had his homework done. In this case he waited out the builder stuck to his cards and got his price. This was a case of "working" a better deal then being ready to respond to a fire sale announcement where the 'first ones in' gets the best selection and deal.

In addition to the extra $6K in builder concession my client also received another $19K in discounts and closing cost benefits. Then of course he still gets a tidy $2700 Cash Rebate from me at 'Closing' to help him enjoy his new home that much better.

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SOME THOUGHTS ABOUT THE PRESENT ECONOMY

The rising cost of Oil and Gold and the rapidly falling Dollar may in fact be signaling the beginning of a period of sustained INFLATION. With energy costs rising everything becomes affected. With the falling Dollar, IMPORTED PRODUCTS (nearly everything!!) will begin to become more expensive. On March 18th German Automakers announced price increases on vehicles sold in the United States due to the falling dollar. The falling dollar at some point will begin to affect commodity prices across the board.

Government spending is now at its highest levels since the Cold War and with the massive loss of high paid technology jobs, Tax Receipts are at an all time low and this further compounds inflation worries. Large government deficits were at the foundation of sustained INFLATION that swept through the U.S. in the 70's. This triggered an Oil embargo, and crud and home prices quadrupled not to mention 20% Interest Rates and $800 Dollar Gold prices. Currently Crud is at 13 year highs just under $40 Dollars (Now Over $40 per Barrel 05/04) per Barrel. In 1999 Oil was selling for $10 Dollars a Barrel.

In light of past economic history, now may be the best time to buy a home before the present economic realities begin to reflect in higher cost of durable goods and eventually higher interest rates and with it higher homeownership costs. With inflation comes pay increases that over time will help to make your mortgage payment (principle and Interest component) decrease as a percentage of your income. But in order to see this effect you must own a home before and not after inflation runs its course. Buying your home after INFLATION leaves its mark will mean much higher costs to you.

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• More than DOUBLE their annual income when compared to what they would get from Bank CD's!

• Protect their CAPITAL from INFLATION or LOSS of PURCHASING POWER in the GREEN BACK by having their liquid capital invested in TANGIBLE REAL ESTATE.

• To Make a CAPITAL GAIN or PROFIT when selling their Real Estate investment for more money than what they paid.

If you're an investor I can help you package a deal with a builder for a negotiated fee. Buying New Properties provide warranty advantages and are Renter Ready! Forney actually has a shortage of quality Rental Properties.

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FINALLY

Keep in mind that Forney Home Rebate always appreciates your business and I pledge personally to do my level best to help you find both quality and savings in Forney's dynamic New and even Pre-owned home market.