Sherry Villere’s Blog

Just because the mortgage industry is tightening their lending standards doesn’t mean a first-time home buyer with limited means is out of luck! 

 I am in the process of assisting my client in buying their first home, thanks to a Affordable Housing program offered by the Texas Dept of Housing & Community Affairs (TDHCA). For a qualified buyer, this is an opportunity with wings!  The details & requirements are easy to read and there is a step-by-step outline  to find out the details.

The rates are very competitive & the fees are made easier with the availability of the grant of up to 6% of the loan amount for down-payment and closing costs.

In addition, if the buyer lives in the Rita Go Zone consisting of several counties in the southeast area of Texas affected by Hurricane Rita, the income restrictions to qualify for for Affordable Housing loans are significantly less.

OK. Prices are down. Interest rates are modest, historically speaking. There are many more houses to choose from (high inventory). So, what are qualified, motivated buyers waiting for?

From my personal experience as a Realtor who enjoys working with buyers, I frankly believe that they are cautious…even skittish…because they fear buying before the market “bottoms” out. They do not want to pay a premium price in an uncertain market. In a word, they want to be sure of getting lasting VALUE.

Some of their fear, I believe, accrues from watching & listening to media ”talking heads” dramatize mortgage problems across the country, with predictions of more rounds of foreclosures into 2008.

While it is true that foreclosures, in a broad sense, depress market prices for all homes, it is also possible that these same lower prices, coupled with current modest interest rates, should encourage buying activity by qualified, motivated buyers.  These buyers are already positioned ahead of the cyclical timing of buying in a low market. 

The real losers in this downturn are motivated buyers who are not in a financial position to take advantage of moderating prices & interest rates.

I believe the prudent, quality buyer who wishes or needs to purchase real estate for personal or financial reasons should take the long view—most real estate is a 30, 20 or 15 year investment. In the long term, what will the investment produce in terms of quality of life & long range financial goals?

When prices of real estate are indeed heading south, it’s a good time to consider buying with the intention of holding for later 1031 Exchange.

An excellent article by Greg Lehrmann gives details of this investment strategy as it pertains to avoiding capital gains taxes when selling an investment.

The key words are “like-kind” exchange and “QI” (Qualified Intermediary). I’ll be gathering & sharing more links to this subject in the near future.  It’s the secret of why many of the “rich” get “richer” and it can apply to any modest investor!

The price is right in Galveston…for a get-away cottage in town or a house by the beach or bay, sellers are more negotiable and there are a lot of properties in every price range available.

 Fall is our nicest season, according to some folks.  The weather is still warm but not hot, the summer crowds have dwindled, and the beaches are quieter.

Prices for updated cottages behind the seawall start around $100K or a little less, which may include 2 bedrooms 1 bath & maybe a nice front porch for relaxing.

Prices for resort properties on the west end are also more reasonable–starting at around $150K and up.  We have a great short-term rental program if you want to allow your place to be rented out during peak season.

 Now is a good time to buy in Galveston, as there are lots of available properties and prices are more negotiable than ever.  You can enjoy a mild winter with us, then place your property in a “rental pool” in the summer months to help pay for your winter getaway.  This applies both to properties  in-town “behind the seawall” or out in the west end “resort” areas.

Which area depends on your lifestyle preferences.  If you want to be close to the Strand, the Grand Opera House, historical homes, many seafood restaurants, movie theaters, & grocery stores, then an in-town house or condo might be best for you. On the other hand, if you love being in a quiet, restful, nature-filled environment, love bird-watching, quiet fishing & walks on the beach, then the west end might be your best choice.

Recreational activities in either area are by no means exclusive–there’s a little bit of everything everywhere; high energy lifestylers & laid back lifestylers find pleasure in both places. Visit both areas to see what feels “like home”.

Welcome to Sherry Villere’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market on Galveston Island, TX.