(888) 743-1528    REPRESENTING FORT HOOD'S FINEST MILITARY FAMILIES  

Frequently Asked Questions About

Fort Hood Real Estate

Do I need a real estate agent or Realtor^® to purchase a home?

We'd recommend it, but it's your decision.  Technically, you don't need one.  You can personally accomplish all of the required tasks when purchasing or selling a home, but Realtors^® have the experience you might lack because they do this more frequently than you do.  They also have formalized training, which other people lack.  Experienced home buyers and sellers may not need a Realtor^®, but we'd certainly recommend it.  In fact, when we purchase homes, we use Realtors^® too.

What should I look for in an agent?

In a nutshell -- experience, education, and someone who is a full time Realtor^®.  In this market, we'd also recommend someone who has prior military experience.  Someone who specializes in the type of service you need.  Do not call the person listed on the yard sign if you're contemplating the purchase of that home. That person/brokerage already represents the seller and anything you tell them must be relayed to the seller if you don't hire them as your Buyer's Agent.

If you're purchasing a home, use someone who holds the Accredited Buyer's Representative (ABR) designation.  Go to the Real Estate Buyer's Agent Council website to confirm who holds the ABR Designation in the area you're moving to.  When selling a home, use someone who holds the Council of Residential Specialist (CRS) designation.  Go to the Council of Residential Specialists website to see if they person you're considering hiring holds the CRS Designation.  Never hire someone who represents both you and the seller, even if the seller is a builder.

What's the difference between a real estate agent, a Realtor^®, and a real estate broker?

A real estate agent is someone who is licensed in that state to sell real estate.  They have to do what's legal, but aren't held to any ethical standards higher than that.  A Realtor^® is a member of the local, state, and National Association of Realtors^®.  Not only are they licensed, but they are held to high ethical standards as outlined in the Code of Ethics.  A real estate broker is someone who not only is licensed, but also has passed other criteria as well, including experience requirements, and the passing of a state real estate broker exam.  All agents must have a responsible broker supervising them, or they must be a broker themselves in order to sell real estate.  In a perfect world, you'd want to work with someone who holds my credentials of being a real estate broker and a Realtor^®.  You get the experience, and the higher code of ethics standards all in one person.

How do I know if I'm getting a good deal?

Your Realtor^® can explain the typical situations you'd like to stay away from.  Here are just a few of the residential property characteristics I'd recommend staying away from properties with:

• high traffic roads nearby

• drainage areas nearby

• in flood-prone areas (lower end of subdivisions)

• in the top-end pricing structure of the subdivision

• properties adjacent to most schools, or those affected by school traffic

• prior water damage, including mold

• foundation problems

• borders that are nearby commercial properties

• noise deficiencies (near airports, highways, etc)

• that have been built by builders with less-than-superior reputations

These are just a few recommendations, and there are many exceptions.  Please consult your Realtor^® before making any final decisions.  Once these criteria are met, you should have your Realtor^® perform a CMA to determine if the sales price is above, at, or below the average price per square foot for that area.  In other words, the home could have diamond-studded walls, but if it's selling for far above the average $/square foot, you could be headed for trouble in the resale market.

How do I hire a Buyer's Agent?

Check the Real Estate Buyer's Agent Council website for agents who hold the ABR designation in the area you're moving to.  Call and interview these agents to find out which one is right for you.  Find someone who communicates well with you and your family, and someone who listens more than they talk.  Once you feel comfortable with your agent, ask to sign a Buyer's Representation Agreement -- the one document that officially hires them as your agent.  Experienced agents who are serious about buyer's agency generally will not show many homes, if any, until they're hired as your Buyer's Agent.  You're asking this agent to invest their time, money, experience, knowledge, and effort in you as a client.  They'll generally expect something of you as well -- your exclusive agreement to work with that agent.

Is purchasing a home a good investment?

It can be, but the answer depends on so many factors, it's impossible to answer here.  If done right, purchasing a home can give you many things, including tax benefits, possibly a lower monthly payment, appreciation value when it comes time to sell, and possibly a very stable income stream if you eventually use the property as a rental.  You'll also tend to build equity in your property over a number of years, increasing your personal net worth.  Over the long term, we think you'll find that an intelligently purchased property produces many benefits.  Again, there are never any guarantees, so the decision to purchase a particular property should always be your own.

How much cash out of my pocket can I expect to spend on a home?

This will depend on what you're paying for as outlined in the terms of your contract.  On VA loans in the Fort Hood area, you can typically expect to pay about 3% in closing costs, unless the seller agrees to pay those (or part of those) for you.  This is a general planning factor, so examine the contents of your contract along with fees quoted by your lender in the Good Faith Estimate and title company expenses.

Other typical expenses can include the survey, title policies, home warranties, etc.  In most instances, no one knows with absolute certainty what charges will be filed until you receive your HUD-1, or settlement statement, from the title company prior to closing.

What mortgage program should I use?

You'll need to contact a reputable lender to determine that.  If you need one, contact us and we'll provide one for you.  In the Fort Hood area, it's safe to say that most of the mortgage loans are VA loans, because they offer a number of benefits for veterans -- the most important of which is no down payment is required.  Everyone likes that.

If you're not a veteran, you can use conventional and FHA financing to purchase your home, and there are many other programs out there as well.  Please contact your lender or call us to find out which one is right for you.

How do I find out if I qualify for a VA loan?

Work with a local lender in the area you're moving to.  Let them provide the expertise and guidance necessary to successfully fund your loan.  All mortgage companies are not equal, by any means.  Your Realtor^® will usually have very strong relationships with local lenders who are very good at providing the service you need, so consult your Realtor^® first.

You can also determine this for yourself if you'd like to read through the VA website that outlines the requirements at http://www.homeloans.va.gov/eligibility.htm.  Please don't make the mistake of believing that all lenders process VA loans well, because they don't.  It's better to work with a lender who maintains strength in this area. 

Am I better off renting or buying?

That depends on the market in your target area.  If the market is hot, and homes are appreciating at a rapid rate with no expected changes during your ownership timeframe, it's usually a good idea to buy.  If properties are declining in value, you might consider renting.  No one has the great crystal ball to tell the future, so you'll have to use trends more than anything else.  Keep in mind that purchasing anything is a risk -- it may very well be worthwhile, but it's still a risk.  Renting has some risks too -- the risk of being locked into leases, losing the money you pay every month for renting, not being able to do essentially what you want with the property, and paying too much for basically temporary places to live.  When you leave, it's not yours.

How long does it take to build a new home?

In the Fort Hood area, generally between 3 and 7 months.  This varies with a number of factors including adequate supplies, tradesmen, interim financing, developed lots, and other economic variables.  Natural disasters nationwide also increase the demand placed on both raw materials and finished goods such as sheetrock, for example.  When building new homes, it's best to be flexible on closing dates, and give yourself plenty of time.

What are "closing costs?"

Various fees and expenses payable by both the seller and buyer at the time of closing such as surveys, appraisals, lender discount points, title insurance premiums, deed recording fees, prepayment penalties, inspection and appraisal fees, attorney fees, and more.

What are "pre-paid items?"

Expenses necessary to open an escrow account or to adjust existing escrow accounts to include taxes, insurance, mortgage insurance, special assessments, and more.

What areas have the best schools?

It's a shame in this day and age that one has to consider liabilities before expressing opinions, but it's true.  What we would suggest doing is going to the Texas Education Agency website to research the 'grade' assigned to the schools in the district you're contemplating.  Although this tool is great, it's not the entire picture.  We also highly suggest touring the school(s) you're interested in prior to purchasing property in the area.  Schools change attendance zones all the time, so you can never be entirely sure you're going to remain in a certain school's attendance zone, but it's a great place to start.  Chances are, if you like the school, the administrators running it, their programs, and the teachers within the school, it might be right for you and your children.  It's such a personal decision - this question can't be adequately answered here.

How much does it cost to hire a Buyer's Agent?

Generally nothing.  In most instances, the seller offers to pay the commission of your Buyer's Agent.  There are situations where the seller is offering to pay no commission to your agent, or a reduced commission amount as well.  You may also find that owners of properties that are for-sale-by-owner may not offer to pay your agent's commission too.  You need to discuss this with your agent, and ensure you understand which properties are already offering to pay your agent's commission.  Your agent may be negotiable, as well as the seller.

Do you recommend home inspections?  How much do they cost?

Home inspections are mandatory in our book.  Never purchase a home without having it inspected by a licensed real estate inspector who has experience with the type of property you're purchasing, and the area you're purchasing it in.  In the Fort Hood area, a typical inspection runs between $175 and $300, so call your inspector, and find out what he/she charges. You'll find that additional items may cost more, such as sprinkler systems, larger homes, pools, etc.

What's the first thing you would tell me about buying a home?

Never call on a real estate sign sitting in a yard if you're considering purchasing that home.  Listing agents are not the same as Buyer's Agents.  Listing agents list homes for sale.  Buyer's Agents represent the buyers who eventually purchase them.  Many buyers make the mistake of hiring someone to  find them the right home, and don't even know that the agent usually doesn't even work with buyers.  They work with sellers.

It's like going to an auto mechanic to fix a heart problem.  I've talked with many people who have had negative experiences with agents, and the majority of them have one thing in common -- they were generally working with people who didn't have the expertise, experience, or desire to represent them adequately.  If you're selling a home, hire a listing agent.  If you're purchasing a home, hire a Buyer's Agent.  It's that simple.

Why do I need a Realtor^®?  All I need is someone to open the door for me.

Really?  I've been on both sides of this issue, so we'll answer this question two ways. 

From your perspective.  You may have all the experience in the world, but the person on the other side of the table will almost always have representation.  They do this to keep the real estate market in check.  How would they know if you're taking advantage of them?  How would they know if their home is under priced?  Only by having someone who's more experienced tell them so.  If you have this much experience, you're probably looking in the wrong place.  Once a home hits the open market, everyone knows about it, driving the price up.  If you're looking for deals, you'd be better off contacting potential sellers that haven't yet decided to sell.  It's more work, but then again, you don't need help -- you're an old pro!

From the agent's perspective.  You may only need someone to open the door to that potential home, but you weren't the one who got this home to the open market.  The agent's role is to work with potential sellers to determine if they should sell or not.  Once they decide to, the agent protects their client, and prices the home appropriately.  Long story short, you wouldn't know this home was for sale if it weren't for the agent, and the seller.  In addition, this home might very not be offered for sale at all.  You need each other.

Lastly, there's a safety issue involved here.  It's widely known in the real estate profession that being an agent is a dangerous job.  It's the agent's responsibility to protect.  If we have a client who is threatening in any manner, the show's over.  We're not going to expose the seller to a dangerous situation.  In addition, before we take you in anyone else's home, we're going to know who you are, that you're qualified to purchase, and that you're serious about purchasing.  Otherwise, others are exposed to potentially dangerous people.  By associating yourself with me during a showing, others will know that you're a home buyer, not a security threat.

Don't believe us?  Read on....

• Article 1

• Article 2

• Article 3

• Article 4

• Article 5

Real estate agents bring credibility and increased safety to the real estate market place.

Why can't I just sell my property For-Sale-By-Owner?

You can.  And we recommend at least attempting to sell it for-sale-by-owner if you have the experience to do so.  Of course, an agent will bring your property increased exposure through the many outlets and portals we have access to, but we only recommend using an agent if you can't accomplish your goals on your own.  Be especially aware of the safety threats that often accompany for-sale-by-owner properties first, and make the decision based on the risk involved.

Won't I save money by selling my property myself?

Not really.  Let's look at the big picture here.  83% of homes were listed with Realtors^® in a 2003 study, which means that most, if not all, of your potential buyers will be represented as well.  With most homes, sellers will offer to pay the commission of a Buyer's Agent to represent the buyer, so you'll need to do that in order to compete.  Of the 1/2 of the commission that you'd have paid to your own agent, you're taking on the safety risk, you're doing all the marketing, you're not able to access the local MLS because only clients represented by a Realtor^® are listed there, and you're taking the sale all the way from the sign in the yard through closing.  If you're willing to do all of that, and be outgunned at every turn by someone who works professionally in the real estate field everyday, in addition to your buyers, so be it.  By all means, sell it yourself.  It's your money and time.

On a side note, did you know that the typical FSBO home sold for $163,800, compared to $189,000 for agent-assisted home sales in 2004?  Do the math on that one, and you'll find that if the listing agent's commission was $5670 and the additional money cleared by using that agent was $25,200, you'd still be $19,530 ahead at the end of the sale.  And you want to sell it yourself?

Is an Agent Required to Purchase or Sell Real Estate?

No.  Anyone can buy and sell real estate - they really can.  The reason that we enjoy an advantage is because we're professionals and we do this everyday.  We're going to be good at it, we're going to enjoy what we do, and we're going to do it much faster and much more reliably than an average home buyer or seller.  We know the market, we know it's players, and we have pre-established relationships with the most powerful real estate agencies in the Fort Hood area.  What might take you weeks, takes us a few minutes.  And, as the saying goes, if you want us to do the impossible, it might take me an hour or two.

Were You Ever in the Army?

Yes.  Like many people in the Fort Hood area, most of us have spent quite a bit of time in the Army or as family members - both as an enlisted and office personnel.  We've seen military life at it's best...and it's worst.  We know it's not easy caring for a family, pursuing a career, and relocating every few years.  Like it or not, that's part of everyday life for military families.  Our job is to make your transition to the Fort Hood area a little easier.

What Areas Do You Service?

Great question!  We work in split markets, meaning that we currently service multiple real estate markets including:

Fort Hood: Harker Heights, Killeen, Copperas Cove

Greater Austin Area: Austin, Dripping Springs, Bastrop

Austin - San Antonio Corridor:  San Marcos, Kyle, Wimberley, New Braunfels, Canyon Lake, & Kyle

Working in all of these markets offers us the chance to have greater insight into the regional real estate marketplace rather than just having a localized view, and gives us a greater perspective on how these markets interact with each other.  This benefit is, in turn, enjoyed by our clients.  For example, if military rotations are currently causing home prices to be higher than usual in our Fort Hood market, but our other markets are experiencing a significant downturn, we would be able to pass that information on to our multi-family investors so that they could expect higher vacancy rates in their Fort Hood rental homes once those rotations stabilize. 

Why Do You Specialize In New Construction & New Homes?

We choose to specialize in new construction for three reasons - 1) there's a genuine need for expertise in this field 2) they're often the best choice for our clients and 3) We enjoy it.  Most of us began our careers working with new home builders, learning step-by-step what's required to construct a quality home from conception to closing.  We enjoy spending time on job sites getting to know the builders, crews, superintendents, inspectors, and the like.  Our idea of a great week is spending 5 out of 7 days in the field, on site, providing feedback and trouble-shooting expertise to our clients.  Fortunately, almost every week is a great week!

Real Estate Broker vs. Real Estate Agent

When a person first enters the field or real estate as a profession, they're an "agent."  Real estate agents are licensed to sell real estate in the State of Texas with minimum education levels and no real world experience is required.  All licensed agents are required to be sponsored by a licensed real estate broker -- someone to supervise their actions and maintain accountability. 

In this industry, as in the military, my position is that if you're not moving up, you're moving out.  If you're not striving for higher levels of responsibility, you're not growing.  Here are the differences at the time of this writing:

The difference is substantial.  The washout rate in the real estate industry is high. 

Full-Time Agents vs. Part Time Agents

We are full-time real estate practitioners.  With the increasing value of real estate comes the inevitable influx of people who think they'd like to be a real estate agent because they'd like to be the next million-dollar agent.  Their motivations don't necessarily stem from providing quality services and good, solid groundwork for each transaction, but rather they're motivated by the money involved.  Yes, like any other business, money is involved and sometimes it's substantial, but it shouldn't be someone's primary motivation for being in this business.  Once new agents see how much work is involved and how long you have to stay focused to be a good agent, their motivation can diminish somewhat.  In that light, they become part time agents, choosing to practice part time instead of full time.

It's funny how with so many agents in any given community, you tend to see the Top 10% of those agents on a daily basis in person, in advertising, or in public.  Where are all of these other agents?  Everyone knows someone who's an agent, but how many of those people that you know have active real estate practices that operate every day, day in, and day out?  Not many.  People's choices are interesting.  We've studied how potential buyers and sellers make the decision to select an agent and the results are remarkable.  We also find it interesting that people won't select a part-time attorney or a part-time doctor, but they'll select part-time real estate agents on a daily basis.  Does that really make sense?

Realtors^® vs. Real Estate Agents

We are Texas-licensed Realtors^®.  You'll notice in our writings that we use the word "agent" quite a bit.  There's a reason.  Real estate agents have passed their state's real estate exam and area licensed to sell real estate.  "Realtors^®" on the other hand, have gone a step beyond.  Not only are they licensed agents, they're also members of their area, state, and national Association of Realtors^®.  In order to access most local Multiple Listing Services, agents are required to join at least three Realtor^® Boards, which all require strict adherence to the Code of Ethics published by the National Association of Realtors^® (NAR).  As Realtors^®, we are held to higher standards.  People expect more of us because we're the professionals, and rightly so.  In essence, all licensees are agents, but not all agents are Realtors^®.

HAVE A QUESTION?

If you have a question that you'd like to be featured here, please feel free to submit your question below.  Others may have the same question

LIKE THAT PAYMENT?

Sure you're including everything in your budget payment?

You may find it interesting to know that many first time home buyers, or others who have not purchased property in a while often make the mistake of thinking that the online payment calculators include all of the costs associated with purchasing a home.  They usually don't.

Here's why. 

Online payment calculators usually assume that you're putting 20% down on a home when taking out a mortgage.  That's seldom the case.  That alone, could make your payment 20% less according to the calculator you're using.  Be sure to record the actual amount you're making as a down payment into calculator when calculating payments.

Don't forget to also add property taxes and insurance to the amount that the calculator estimates.  You'll normally be required to make a payment for taxes and property insurance as part of your payment, which could significantly affect your bottom line.

SHOULD I SELL MY HOME?

The real question is, why would you want to?  Unless you have a pressing need to sell your home, you may be better served by placing it into the rental market.

Sure, not everyone enjoys the experience of being a landlord, but today, you don't necessarily have to.  Property management companies specialize in providing rental properties to the general public, whether they're yours, or someone else's.

For a stated fee, they will manage your property, advertise for tenants, screen potential applicants, coordinate repairs on your property if required, and conduct face-to-face meetings with your tenants.

Perhaps the one biggest mistake I see people make on a daily basis is selling a property that they've lived in only for a few years.  For the first few years, most people make very little progress on paying off a significant portion of their mortgage, making the selling process rather difficult.

In many cases, it may serve you well to hold onto properties for the long term, especially in areas where the general economic outlook seems promising.  No one has the magic "crystal ball" to tell how a specific home will perform over time, but the general trend is that real estate becomes more valuable as time progresses.  Long term holdings have the potential to gain in value, making real estate an investment worth investigating.

To determine if your current home might make a great investment, please consult your tax attorney and tax accountant.