Aaron Layman's Katy Texas Real Estate Forum

Why Open Houses Don't Sell Homes In Katy, Houston Texas

Open houses are often touted by agents as a reason to get you to list your property with them.  The reality is that you probably are more likely to get struck by lightning than receive a legitimate offer during your open house here in the Katy or West Houston area.

Sellers sometimes request their agent hold an open house with the misconception that it will bring a buyer.  Sellers utilizing the for-sale-by-owner method often make the same mistake.  Open houses may bring a lot of lookers but few, if any, qualified buyers.  Without a qualified buyer you have no sale.

An open house in the Houston area is essentially an opportunity for your listing agent to parade your home to the public and advertise his/her new listing.  Open houses are often used by new agents as a way to gain experience on the job and/or pick up potential prospects.  Open houses are far more useful as a lead-generation tool for the agent than as a means to get your house sold.

If your agent is pushing you to hold an open house they are likely fishing for a price reduction.  An end-result of the open house process is that the sellers often find they are not competitive with the market.  A good Realtor will give you information to justify a price reduction along with honest, objective data to back it up rather than make you vacate your home for the day or the weekend.

Open houses can be informative and fun.  Sellers just need to realize that they have limited value when it comes to actually selling a home, particularly here in Houston with so many available properties.  You can go to www.openhouse.com to see hoards of temporarily displaced homeowners looking for that potential buyer.  I wish them the best of luck.  They'll probably need it.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Builder Kickbacks & Closing Cost Scams in Katy Texas Real Estate

The relationship between Realtors and builders is mutually beneficial to both parties.  Builders want to get homes sold, and Realtors want to get paid.  Realtors serve as a valuable tool to help move inventory and most builders recognize the importance of Realtors in their marketing efforts.  In an effort to increase business, the relationship sometimes gets tainted.  From a consumer standpoint, this is a major concern because the Realtor or builder may not be providing full disclosure about how the Realtor is being compensated.  That translates into a conflict of interest that can hurt the home buyer later on.

Some top-producing brokers have established relationships with builders to bolster sales numbers and help builders sell more homes.  The sales pitch usually goes something like this:  My company will list (sell) your home for free, and in return we will pay your closing costs on your new home.   This sounds great at first glance, but a closer look reveals that the numbers are often not in the customer's favor. 

The home seller and/or buyer would be wise to ask for written documentation as to where the money for the closing costs is actually coming from.   The funds for closing costs are likely being paid by the new home builder in the form of an inflated purchase price.  If you think the Realtor is paying your closing costs out of his/her typical commission compensation, think again!  There is likely a hefty BTSA (Bonus to Selling Agent) being offered to the Realtor as part of the transaction.  If the consumer/home buyer does not understand the relationship of the incentive being offered and it's effect on the sales price, it can have negative consequences later on when the homeowner tries to sell.

A great example of how this shell game is detrimental to the consumer is buying an automobile.  Most experts will tell you that you should approach a new car purchase as separate, independent transactions.  Negotiate the sales price or trade-in value of your old car.  Then secure the best financing for your new car purchase.  Finally, negotiate a fair price for the new car of your choice.  The same rules should apply to buying a new home.

I always encourage home buyers to look at the comparable sales in the area when buying a new home.  Resale data will provide a legitimate estimate of a home's value.  A good Realtor will do his/her best to negotiate the best price possible, within those comparable sales figures.  If the client also has a home to sell, a reputable Realtor will not try to confuse the homeowner with a bogus incentive, but rather, offer an appropriate discount on the listing fee for the dual transaction.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Buying Foreclosures (Foreclosed Homes) In Katy Texas

If you are looking for foreclosures in Katy, Texas head north. (As in north of I-10)  A closer look at the foreclosure picture in Katy reveals a dramatic difference in market conditions north of I-10 compared to South Katy.  The number of foreclosure by zip code and their corresponding percentage of active listings is as follows:

77449 - 138 Foreclosures - 14.9% of Active Listings

77084 - 53 Foreclosures - 9.9% of Active Listings

77493 - 13 Foreclosures - 9.4% of Active Listings

77450 - 20 Foreclosures - 6.0% of Active Listings

77494 - 12 Foreclosures - 2.6% of Active Listings

Zip code 77449 stands out as a foreclosure mecca.  A plentiful supply of newer starter homes, coupled with relatively high tax rates has resulted in a huge problem area home owners.   Builders went overboard in this area with too much affordable product, and many inexperienced first-time buyers did not realize the full carrying costs associated with home ownership.

On the opposite end of the spectrum, zip code 77494 has seen relatively few foreclosures.  Homes in this area are significantly more expensive and the people buying them have likely had previous experience as home owners, thus the lower foreclosure rates.

The good news for Katy area residents is that prices are holding up quite well even for these foreclosed homes.  Bargain prices are hard to find because of strong demand for available inventory.  A healthy supply/demand relationship means the Katy, Texas real estate market should be able to absorb the foreclosures in the system.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Foreclosure Investing in Katy, Houston Texas

If you have ever thought about getting rich in real estate by investing in foreclosures, you are not alone.  Scores of books, seminars and get-rich-quick schemes seem to be popping up across the country.  The U.S real estate market is awash in foreclosed homes, and there are plenty of people looking to capitalize on the feeding frenzy.

A closer look at the situation reveals that the only easy money being made will come to those who are selling their get-rich-quick seminars, books and other advice to the unsuspecting public.  Foreclosure investing is ripe with difficulties, and the money to be made is rarely the bonanza that the some would lead you to believe.

A recent trip to a Houston area auction by US Home Auction (Real Estate Disposition Corp) only confirms my point.  I watched home after home get bid up to close to market value, or even beyond in some cases.  The auction atmosphere reminded me of a game show.  While the auctioneer is rattling off numbers, there are a half-dozen other salesmen in tuxedos roaming the crowd shouting numbers, trying to get you to up your bid.  There is even a healthy supply of free Starbucks coffee on hand to help get your adrenaline going.

Other resources and websites like Foreclosures.com advocate calling distressed homeowners to reach homeowners before the bank starts foreclosure proceedings.  The idea is to get the homeowner to sell, and run to the bank with all of the equity you have pocketed.  The only problem with this strategy is that there is often little if any equity in most of the foreclosures coming on the market.  The flood of easy money and 100% financing that got us into this foreclosure mess will also make it difficult for investors on the foreclosure side.  Declining home values in many areas have also erased any equity that existed.

If you are looking to make money in real estate, join the crowd.  The American Dream is alive and well, and you wont have to look too far to find a book or seminar telling you how you can get rich investing in real estate.  A closer look shows that the path to riches contains plenty of potholes.

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Houston Targets Illegal Billboard Owners and Advertisers

Owners and Advertisers of billboards in the Houston area are getting the "unwelcome" sign from mayor Bill White and the city of Houston.  With pro bono help from attorney Jim Moriarty, the city is now going after the advertisers using the billboards in an effort to rid the area of the unsightly mess.  Matt Stiles of the Houston Chronicle noted that violators of the city sign code now face fines of $500 per day.

RTM Media and other owners have repeatedly claimed that the city did not have the authority to regulate billboards along highways in Houston's extraterritorial jurisdiction, even though a new state law was passed this year clarifying the city's authority.  According to Chronicle writer Matt Stiles, court records show that the city has issued more than 2100 municipal citations against one of RTM's officers.

Roadside advertising has been a problem in the Houston area for years.  City and county officials have rarely enforced actions against owners and users of the media that litter our highways and public roads.  I sincerely hope that Mayor White can make some headway on this issue because we need all the help we can get if we are going make our city a comfortable place to live.

If you have an opinion about this issue feel free to post your comments.

For the complete article posted by Matt Stiles visit www.chron.com

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Affiliated Business Arrangements In Katy Texas Real Estate

Affiliated Business Arrangements (ABA's) are nothing new.  Many of the real estate transactions in the Katy and Houston area involve some sort of ABA.  It's almost impossible to purchase a new home without seeing the ABA disclosure.

The Real Estate Settlement Procedures Act (RESPA) allows for the use of ABA's with proper disclosure.  The theory is that consumers benefit from competition and the opportunity for a "one stop shop" where consumers can get real estate, insurance, title and mortgage services.

While useful in theory, ABA's can lead to some precarious liability issues and added costs for consumers.  When your home builder offers you an incentive to buy a home but demands that you use their mortgage company and title company to get the incentive, it becomes more difficult to evaluate the true dollar value of that incentive.  Builders use this sort of horizontal integration for a reason; They can turn all aspects of the real estate transaction into a profit center.

I encourage clients to look at each part of the puzzle as a separate transaction and evaluate each piece on it's own merit.  Just as you would separate the purchase and finance aspects of a car purchase, it pays to do the same when buying a home.  If you run into an ABA that looks like a shell game, you should take some time to look at what's under the shell!

For more information about real estate and mortgage issues in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com

Houston's Homeownership Rate Lags State, Nation

According to the U.S Census Bureau the homeownership rate in the Houston area was 46.5 percent in 2006.  That was a slight increase from the 2000 level of 44 percent.  The large immigrant and minority populations in the Houston metro area are likely culprits of the relatively low percentage.  San Antonio surprisingly had a much higher rate at 60.8 percent. 

The national homeownership rate increased last year to 67.3 percent.  The rate in Harris County was 58 percent.  As one would expect, bubble markets like California and New York have some of the lowest homeownership rates in the country.

For more information you can visit the U.S. Census Bureau at www.census.gov

For more information about real estate issues in Katy, Texas or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can call him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com

Home Builders In Katy Texas

In Katy, Texas, just like any other area of the country, selecting the right builder and the right neighborhood are crucial to protecting your investment.  Some builders in the area have a solid history, while others may be new to the market.  Resale data also confirms that some builders suffer from poor design or architecture.  Your Realtor can help you find the right home that fits your needs.

Some of the more reputable builders in the area include:

www.partnersinbuilding.com

www.taylorwoodrowna.com

www.trendmakerhomes.com

www.highlandhomes.com

www.davidweekleyhomes.com

www.perryhomes.com

www.davidpowershomes.com

www.newmarkhomes.com

www.coventryhomes.com

www.meritagehomestexas.com

www.wilshire-homes.com

www.beazer.com

www.pulte.com

www.lennar.com

www.ryland.com

www.morrisonhomes.com

www.pioneerhomes.com

www.khov.com (K Hovnanian)

For more information about builders and real estate contact Aaron Layman.  He is a licensed real estate broker and mortgage broker in Katy, Texas.  You can call him directly at 281-994-5190.  You can also visit him at www.AaronLayman.com.

Cinco Ranch Real Estate Broker In Katy Texas

If you are looking for a Realtor specializing in the master-planned community of Cinco Ranch, look no further.  Aaron Layman is a licensed real estate broker and mortgage broker.  He is an experienced real estate professional, ready and able to assist you with the sale or purchase of your home.  He can also handle all of your relocation needs, including international moves.

If you are looking to sell your Cinco Ranch home, remember that Aaron Layman is your best choice, providing maximum exposure for your listing and preferred placement on search engines.  Aaron utilizes up-to-date technology to get your home noticed and sell it faster.

Cinco Ranch is the master-planned community that set the standard for other neighborhoods in Katy, Texas.   This 7400 acre community offers a wealth of amenities and beautiful homes that have made it a popular destination for home buyers.

Cinco Ranch offers homes from the following builders:

www.partnersinbuilding.com

www.trendmakerhomes.com

www.davidweekleyhomes.com

www.perryhomes.com

www.beazer.com

www.chesmar.com

www.pulte.com

www.lennar.com

www.drhorton.com

www.ryland.com

www.morrisonhomes.com

When you need the assistance of an agent who knows the area, contact Aaron Layman.  You can call him at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Cinco Ranch Real Estate Agent In Katy Texas

If you are looking for a Realtor specializing in the master-planned community of Cinco Ranch, look no further.  Aaron Layman is a licensed real estate broker and mortgage broker.  He is an experienced real estate professional, ready and able to assist you with the sale or purchase of your home.  He can also handle all of your relocation needs, including international moves.

If you are looking to sell your Cinco Ranch home, remember that Aaron Layman is your best choice, providing maximum exposure for your listing and preferred placement on search engines.  Aaron utilizes up-to-date technology to get your home noticed and sell it faster.

Cinco Ranch is the master-planned community that set the standard for other neighborhoods in Katy, Texas.   This 7400 acre community offers a wealth of amenities and beautiful homes that have made it a popular destination for home buyers.

Cinco Ranch offers homes from the following builders:

www.partnersinbuilding.com

www.trendmakerhomes.com

www.davidweekleyhomes.com

www.perryhomes.com

www.beazer.com

www.chesmar.com

www.pulte.com

www.lennar.com

www.drhorton.com

www.ryland.com

www.morrisonhomes.com

When you need the assistance of an agent who knows the area, contact Aaron Layman.  You can call him at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.