Rockwall Real Estate Market Trends – Texas

Spring Maintenance Tips - April 12th, 2012 8:15pm
10 home maintenance tips for spring

When was the last time you checked your foundation vents?
By Paul Bianchina
Inman News®

The sun is peeking out and the plants are starting to blossom, so it must be about time for spring chores again. Here's my annual spring checklist of important issues to tend to around the house.

1. Roofing repairs: If you suspect winter storms may have damaged your roof, it needs to be inspected. (If you're not comfortable with the height or steepness of your roof, hire a licensed roofing contractor for the inspection.) Look for missing or loose shingles, including ridge-cap shingles.

Examine the condition of the flashings around chimneys, flue pipes, vent caps, and anyplace where the roof and walls intersect. Look for overhanging trees that could damage the roof in a wind storm, as well as buildups of leaves and other debris.

If you have roof damage in a number of areas, or if older shingles makes patching impractical, consider having the entire roof redone. Also, remember that if the shingles have been damaged by wind or by impact from falling tree limbs, the damage may be covered by your homeowners insurance.

2. Check gutters and downspouts: Look for areas where the fasteners may have pulled loose, and for any sags in the gutter run. Also, check for water stains that may indicate joints that have worked loose and are leaking. Clean leaves and debris to be ready for spring and summer rains.

3. Fences and gates: Fence posts are especially susceptible to groundwater saturation, and will loosen up and tilt if the soil around them gets soaked too deeply. Check fence posts in various areas by wiggling them to see how solidly embedded they are.

If any are loose, wait until the surrounding soil has dried out, then excavate around the bottom of the posts and pour additional concrete to stabilize them. Replace any posts that have rotted.

4. Clear yard debris: Inspect landscaping for damage, especially trees. If you see any cracked, leaning or otherwise dangerous conditions with any of your trees, have a licensed, insured tree company inspect and trim or remove them as needed.

Clean up leaves, needles, small limbs and other material that has accumulated. Do any spring pruning that's necessary. Remove and dispose of all dead plant material so it won't become a fire hazard as it dries.

5. Fans and air conditioners: Clean and check the operation of cooling fans, air conditioners and whole-house fans. Shut the power to the fan, remove the cover and wash with mild soapy water, then clean out dust from inside the fan with a shop vacuum -- do not operate the fan with the cover removed.

Check outdoor central air conditioning units for damage or debris buildup, and clean or replace any filters. Check the roof or wall caps where the fan ducts terminate to make sure they are undamaged and well sealed. Check dampers for smooth operation.

6. Check and adjust sprinklers: Run each set of in-ground sprinklers through a cycle, and watch how and where the water is hitting. Adjust or replace any sprinklers that are hitting your siding, washing out loose soil areas, spraying over foundation vents, or in any other way wetting areas on and around your house that shouldn't be getting wet.

7. Check vent blocks and faucet covers: As soon as you're comfortable that the danger of winter freezing is over, remove foundation vent blocks or open vent covers to allow air circulation in the crawl space.

While removing the vent covers, check the grade level around the foundation vents. Winter weather can move soil and create buildups or grade problems that will allow groundwater to drain through the vents into the crawl space, so regrade as necessary. Remove outdoor faucet covers. Turn on the water supply to outdoor faucets if it's been shut off.

8. Prepare yard tools: Replace broken or damaged handles, and clean and condition metal parts. Tighten fittings and fasteners, sharpen cutting tools and mower blades, and service engines and belts in lawn mowers and other power equipment.

9. Change furnace filters: Now is the time to replace furnace filters that have become choked with dust from the winter heating season. This is especially important if you have central air conditioning, or if you utilize your heating system's fan to circulate air during the summer.

10. Check smoke detectors: Daylight Savings Time snuck up early again this year, and that's usually the semi-annual reminder to check your smoke alarms. So if you haven't already done it, now's the time. Replace the batteries, clean the covers, and test the detector's operation before it's too late.

If you have gas-fired appliances in the house, add a carbon monoxide detector as well (or check the operation of your existing one). CO2 detectors are inexpensive and easy to install, and are available at most home centers and other retailers of electrical parts and supplies.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author's actual testing of free review samples provided by the manufacturers... [ + Read Full Article ]

Must-knows about mortgage rate/fee combos - January 15th, 2012 10:38am
Don't assume loan officer has your best interest in mind
By Jack Guttentag
Inman News®

Share ThisEditor's note: This is the second of a two-part series.

Last week I discussed a new integrated calculator on my website that uses current and personalized mortgage price data to help borrowers select the type of mortgage that would minimize their net costs. This article introduces a second integrated calculator that helps borrowers select the best combination of interest rate and lender fees on their preferred type of mortgage.

Before describing this new approach, it is instructive to consider how the rate/fee combination is selected now.

Lowest rate used to solicit naive borrowers

Naive borrowers know that mortgages carry an interest rate, but they don't know that the rate varies with the amount of total upfront fees. They are thus vulnerable to solicitation from lenders and lead generation Internet sites promising the lowest rate.

While the lowest rate carries the highest fees, the fees are not disclosed. The annual percentage rate (APR) must be disclosed, and will be much higher than the lowest rate, but because these borrowers usually don't know what the APR is, they often ignore it.

Borrowers who respond to the solicitation and start the process will soon be confronted with the bad news about the fees required. At that point they may flee, or they may allow themselves to be sold another rate/fee combination by the loan originator (LO) -- a loan officer or mortgage broker.

Loan originators look for an acceptable combination

Most LOs try to guide the borrower toward a rate/fee combination that is responsive to the borrower's major weakness. If the borrower is cash-short, the LO will steer the deal toward a higher rate which may carry a cash rebate from the lender, for example.

If the borrower's problem is income adequacy, the LO will propose a lower rate that carries a lower monthly payment. The combination selected must meet underwriting requirements and be acceptable to the borrower.

What LOs seldom consider are the implications for the borrower's future wealth, which depend on the total cost of the combination selected over the period the borrower has the mortgage. Information on future costs has never been available before.

The integrated rate/fee calculator

In last week's article, I used the integrated type of mortgage calculator to compare a 30-year fixed-rate mortgage (FRM) and a 5/1 adjustable-rate mortgage (ARM) on which the initial rate held for five years and was adjusted annually thereafter.

In step two of the decision process, I assume the borrower selected the 5/1 ARM, and now must select the combination of interest rate and total upfront fees on this ARM from those available. The table below shows the available combinations and the total cost of each combination over different periods selected by the user.

Interest Rate/Fee Combinations on 5/1 ARM of $270,000
Dec. 8, 2011

Interest Rate
Points and Other Fees Paid in Cash Upfront
Initial Monthly Payment
Total Net Cost Over Assumed Life of Loan

3 Years
5 Years
8 Years

1.75%
$11,819
$965
$20,537
$28,459
$47,698*

1.875%
$10,780
$981
$20,469
$28,848
$48,118

2.00%
$9,743
$998
$20,403
$29,241
$48,544

2.125%
$8,714
$1,015
$20,345
$29,645
$48,980

2.25%
$5,392
$1,032
$18,517
$28,226*
$47,510*

2.375%
$4,423
$1,049
$18,507
$28,683*
$48,001

2.50%
$3,724
$1,067
$18,711
$29,361
$48,724

2.625%
$3,133
$1,084
$19,000
$30,129
$49,541

2.75%
$1,976
$1,102
$18,821
$30,416
$49,855

2.875%
-$11
$1,120
$17,672*
$29,705
$49,125

3.00%
-$465
$1,138
$17,953*
$30,470
$49,938

3.125%
-$704
$1,157
$18,459
$31,469
$50,995

3.25%
-$724
$1,175
$19,196
$32,707
$52,303


*Denotes the two lowest-cost combinations. The components of total cost are shown in last week's article.

Using the calculator

The best way to use the integrated calculator depends on the borrower's major concern. Borrowers who can deal with the highest monthly payment and the largest upfront fees shown in the table should select the rate/fee combination with the lowest total cost over the period they expect to have the mortgage.

As that period lengthens, the advantage shifts toward lower rates and larger fees, because the benefit of the lower rate extends over a longer period. I have flagged that tendency by placing asterisks next to the two lowest-cost combinations for each period.

If the borrower's major concern is cash, he excludes the top part of the table and looks for the lowest cost from the rate/fee combinations that remain. If the borrower's major concern is the initial payment, he excludes the bottom part of the table, selecting from the combinations that remain.

Some borrowers may want to impose both a cash and a payment limit. For example, the borrower represented in the table might want to cap cash outlays at $9,000 and monthly payment at $1,100. In that case, there are only five rate/fee combinations from which to choose. But that is four more options than he is likely to have without the calculator.

The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.

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Home Maintenance Tips - December 27th, 2011 10:26am
5 tips to stay on top of home maintenance
Where to find reliable contractors
By Dian Hymer
Inman News®

You're not alone if your roof is leaking and you're kicking yourself for not having called a roofer during the summer months. Most people have a limited concept of preventative maintenance. This can lead to big problems that end up being more expensive than if you had routine maintenance in place.

Many buyers don't understand that home maintenance goes with homeownership. When you rent, someone else usually pays for repairs. As a homeowner, you're responsible for keeping your home in good condition.

Unless you're handy at home repairs, it can be costly to maintain a home properly. But there is a benefit at the end of the line. Buyers pay more for homes that are well-maintained and show a pride of ownership.

It can be a hassle to properly maintain your home unless you organize and prioritize the projects that need to be done. You also need to set a schedule and stick to it.

Most home maintenance can be done annually: roof maintenance (including gutters and downspouts); sealing exterior cracks; weatherproofing; a furnace and air conditioning inspection; and inspecting and cleaning the drainage system.

Mark these events on your calendar so that they can be scheduled for about a month before you'd like to have the work done. If you wait until just before the rainy season to start your annual maintenance, you could have trouble finding good contractors to help you.

Don't wait until your roof is leaking to repair or replace it. There will be collateral damage to the interior of the house. Your homeowners insurance company might pay to repair the interior damage, less the amount of your deductible, but it won't pay to replace the roof. Too many claims could be grounds for not renewing your policy.

HOUSE HUNTING TIP: Assemble a crew of contractors and tradespeople who can help you with your home maintenance. It's not always easy to find reliable people who do good work. You'll end up frustrated and having to do more oversight if you work with people who don't show up or do the job right.

Ask your real estate agent or acquaintances who own homes in the area to recommend tradespeople to you. If the seller is happy with people who have worked on the property, ask for a list of names and contact information when you close the sale.

Homeowners who haven't the time or expertise to determine what needs to be done to keep their home in good shape could ask the home inspector that inspected the house for them to do a reinspection periodically to point out areas that need attention.

One of the keys to good home maintenance is to take care of critical items as soon as they become apparent. For instance, don't postpone repairing a plumbing pipe leak. Have it repaired as soon as you notice it.

Don't assume that because your house is new that you won't have any maintenance issues. If the gutters back up on any house, even a new house, water can leak into the house or down the inside of the walls. This, left unchecked, can lead to a major repair to the framing. If repaired right away, you may just need to seal and touch up the paint.

Likewise, even though you just had the exterior painted, you still may have areas that will need touch up every year or so, especially if they receive intense sun exposure.

THE CLOSING: Don't go for the cheapest contractor or building materials just to save money. If an inferior-quality job has to be redone sooner than anticipated, your savings will dwindle.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

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News for Rockwall, TX - December 21st, 2011 11:39am
MANDATORY— SEVERE DROUGHT RESTRICTIONS

Limit landscape watering with sprinklers or irrigation systems to once every other Saturday.

Foundations, new landscaping, new plantings (first year shrubs and trees) may be watered
for up to two hours any day by hand-held hose, soaker hose or drip irrigation.

Prohibit washing or rinsing of vehicles by hose except with a hose-end cutoff nozzle.

Prohibit hosing of paved areas, buildings or windows. (Pressure washing of impervious
surfaces where a health issue may be present is permitted.)

Prohibit using water in such a manner as to allow runoff or other waste.

Prohibit planting of cool season grasses (such as rye grass or other similar grasses that
intensify cool-season water requirements.)

Wait until restrictions are lifted before establishing new landscaping. No hydro-seeding,
hydro-mulching or sprigging is allowed.

Watering of golf courses using treated water is prohibited except as needed to keep greens
and tee boxes alive. (The Shores Country Club uses raw water from the City of Dallas and
their watering will not be restricted by the City of Rockwall.)

Registered and properly functioning ET/Smart irrigation systems and drip irrigation is not
restricted. (Go to www.rockwall.com/green to print ET/Smart irrigation system registration
form.)

Existing swimming