Fredericksburg Texas Real Estate, Ranches, Homes, Land and Property for sale in the Hill Country.

Thanks for taking the time to visit this page. My goal is to provide you with information reprinted from various news sources and/or to establish links that will take you to interesting articles that have been posted on the internet. I will try to focus on topics concerning real estate but may (as resources allow) throw in an occasional curve ball...bookmark this page as I will make every effort to keep it stocked with fresh news...! Feel free to click on an article and print it for easier reading!

TEXAS HOUSING BUBBLE...TRUTH OR SCARE? http://recenter.tamu.edu/tgrande/vol13-2/1769.html Hopefully, this article will put to rest the fear folks have about the state of our housing market! Here's a link to an interesting article from the recent issue of Tierra Grande (Journal of the Real Estate Center of Texas A&M) that would interest those of you considering reduced commission arrangements and/or Limited Service Listings. The article also provides empirical evidence that "Experience Matters"... http://recenter.tamu.edu/tgrande/vol13-1/1765.html 

Reverse Mortgages... Reverse Mortgages (limited to those over 62) can be a blessing...(re-printed from the Austin American-Statesman. For more information on reverse mortgages, visit AARP at www.aarp.org/money/revmort/ , www.reversemortgage.org or www.financialfreedom.com 

ST. LOUIS -
 Oliver Dusin, 82, was at his wits' end late last year, staring at a future where he and his 79-year-old wife, Yvonne, would lose their home in Affton, Mo.   Inflation had pushed prices to the point that their Social Security and pension couldn't keep up with their expenses.

"There was more going out than coming in," Dusin said. "We decided we would have to leave the house and move into a (nursing) home, which neither of us wanted to do."

But the Dusins are still in their home, the beneficiaries of what Oliver calls a "godsend." Mortgage bankers call it a reverse mortgage.

Despite being around for more than two decades, reverse mortgages are little-known tools that can help older people stay in their homes as bills mount and incomes stagnate.

They're also little understood, with a too-good-to-be true aspect that invites skepticism.

Available only to people age 62 or older, reverse mortgages let homeowners turn what is likely their biggest asset, a house, into a cash machine.

In a traditional mortgage, a homeowner gets a loan and sends a monthly mortgage check to a lender. In a reverse mortgage, a lender typically sends a monthly check to homeowners for a period.

"It comes into play when you're an elderly person who needs cash flow," said Jim Blair, a principal at Moneta Group, a financial planning firm in Clayton, Mo. "It's the last pile of equity. . . . It can be a lifesaver."

When the owners die, or when the home is sold, the bank collects the principal that it paid to the homeowners, plus accrued interest.

"Our research tells us the vast majority of people want to stay in their homes and never leave," said Bronwyn Belling, a reverse mortgage specialist for the AARP Foundation. "A reverse mortgage is an important tool that seniors can look into to do that."

But the vast majority of seniors don't give them a second thought.

A recent study by the National Council on the Aging estimates that the most popular reverse mortgage program has been used by only about 100,000 households since 1989.

The study estimates that more than 13.2 million households are candidates and $953 billion would be available.

The council identified medical costs as the most urgent issue that could be at least partially resolved with reverse mortgages.

Nearly 10 million senior households face health problems. About $700 billion would be available to those seniors.

"Almost all of my clients had a health care issue or an expense issue because they ran their credit cards up so high to pay for prescription drugs," said Bob Lane of Paramount Mortgage Co. in Creve Coeur, Mo.

Paramount is among a handful of St. Louis-based lenders that offer reverse mortgages. Because the market is so small, most lenders stay away from them.

A single California firm, Financial Freedom, has captured more than 50 percent of the reverse mortgage market nationally. In 2004, it closed nearly 20,000 loans.

That represents a 44 percent increase from 2003, but it's still a tiny fraction of the potential market, said Bart Johnson, the company's chief operating officer.

"Overcoming misconceptions is our core job," Johnson said. "People still think they give their home away."

Until she received a promotional letter, "I never heard of a reverse mortgage," said Ida Hill, 70, of Richmond Heights, Mo.

In a few weeks, Hill became educated, then a customer and is now an advocate.

Unlike most reverse mortgage borrowers, Hill does not receive a monthly check. Instead, she used the reverse mortgage to wipe out her monthly mortgage payment.

She and her husband, Willie, 72, now have about $10,000 a year to spend on the day-to-day expenses that had swamped them.

More importantly, they will be able to stay in their home, Ida Hill said.

"I was in the verge of a nervous breakdown," she said. "I didn't want to move to a senior citizen home." But reverse mortgages aren't for everybody.

For starters, only homeowners with a lot of equity in their houses are candidates. Ideally, the homes would be mortgage-free.

A financial planner offered a warning about the complexity of the transactions.

"There are enough details in those things that I think it definitely is a consumer beware thing," said Eric Park, president of Steamboat Financial Group in Washington. "The miracle of compounding is working against you."

Reverse mortgages have safeguards that prevent the loan from building higher than the equity in a home. But if elderly couples live long enough, and housing values decline, their monthly checks could run out.

Getting a reverse mortgage is similar in scope and in cost to getting a traditional mortgage. All the usual inspections apply, and a home appraisal must be conducted.

Because they are relatively expensive, reverse mortgages don't make sense for anyone who needs a small sum of money. In those cases, lenders recommend home equity lines of credit instead.

For many seniors, the biggest concern is that reverse mortgages reduce the equity. When homeowners die, they literally will have less house to pass on to their heirs.

Ida Hill said she isn't worried about that. The equity in her home is rising faster than the accrued interest.

Besides, she and her children are happy that their immediate financial problems are resolved.

"My and my husband, we've never been so happy in our lives," she said. "All I think about is me not paying the mortgage every month."

To paraphrase the conclusion of this recent article in "Tierra Grande" (Journal of the Real Estate Center at Texas A&M University), the risk of a price bubble in the state's residential market is very low. to read the full article, click here: http://recenter.tamu.edu/tgrande/vol12-3/1731.html 

Holding Out for a Higher Price By Dian Hymer Content provided by

It's not unusual for sellers to have an over-inflated opinion of the value of their home. Often this comes from pride of ownership, which is not a bad thing. Homeowners who take pride in their homes usually keep them well-maintained. This preserves the value of the property. Sometimes, however, pride of ownership can get in the way of making a rational business decision.

Recently homeowners put their Oakland Hills, Calif., property on the market with expectations of a high selling price. To encourage competition, they listed it for $759,000, which was a price that was lower than they were willing to accept. They received an offer soon after they listed for $785,000. The sellers rejected the offer because they wanted more than $800,000. Subsequently, the property languished on the market. Finally, it sold, after the price was reduced to $739,000.

Another seller countered an excellent offer that he received soon after listing. He was also hoping for a higher price. Months later he ended up selling for $50,000 less than he would have if he'd accepted the first offer.

It has often been said that the first offer is likely to be the best one you'll receive. While this saying doesn't hold every time, it does contain a kernel of truth.

Your best chance of selling your home for the highest price is when it's new on the market. If a property is priced right for the market, and the market is active, you might receive an offer, or offers, within the first several weeks of marketing. Buyers tend to make aggressive bids for high-demand listings in order to beat the competition.

After your home has been on the market for a period of time with no offers, you are less likely to receive aggressive bids, unless the market changes in your favor over time. However, if the market is steady or slows, you could find the appeal of your home diminishing over time. This usually equates to fewer offers at lower prices. Buyers typically ask how long a listing has been on the market and discount their offer prices accordingly.

Home seller tip: You're taking a gamble when you turn down a strong offer from a well-qualified buyer. If you wait, you might not see as good an offer later. If word gets out that you rejected a good offer, this could discourage other buyers from making offers. They may wonder if you're serious about selling.

Just as it's risky to turn down a good offer in hopes of something better, it's also risky to accept an offer before your home has been exposed to the market. If your home is priced at or under its market value and it hasn't been adequately marketed, you could shortchange yourself.

Before you sign a listing agreement, make sure that your real estate agent will provide you with an aggressive marketing program. You want as much exposure for your home as possible, as quickly as possible. If your home is priced right for the market, and it receives comprehensive marketing, you should feel confident that the offers you receive reflect the current market value of your home.

If after professional marketing exposure, you receive an offer or offers that are less than you had hoped for, you may need a reality check. Your pride of ownership could be clouding your judgment of current market conditions.

The closing: Your home is only worth what a willing and able buyer will pay for it in the current market.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Real Estate Flipping: Lucrative and Legal News Release No. 53, May 2004 College Station -
 “Flipping can be a very lucrative pursuit. We are not talking about flapjacks here, but real estate,” says Judon Fambrough, attorney with the Real Estate Center at Texas A&M University. Flipping refers to the practice of finding a property that is for sale - usually priced below-market -
 and then selling it soon after it is bought for a quick profit. To read the full story, follow this link http://www.recenter.tamu.edu/news/53-0504.html