Author: Ali Palacios - Broker

Happy Clients Realty Group - Ali Palacios > Articles by: Ali Palacios - Broker

Impacts on homeowners and new home buyers

Posted on by Ali Palacios - Broker

The new tariffs imposed by President Trump, particularly on steel, aluminum, and other imported goods, can have a significant impact on homeowners and new home buyers. Here’s how:

1. Increased Construction Costs

  • Steel and Aluminum Tariffs: Many construction materials, especially steel and aluminum, are subject to tariffs. These materials are commonly used in building homes, especially in framing, roofing, windows, and siding.
  • Higher Material Prices: With the imposition of tariffs, the prices for these materials rise because the U.S. is either paying higher prices to import them or domestic producers might raise prices to match the higher cost of raw materials. This means:
    • Builders and developers will face higher costs to construct homes.construction costs
    • The increased material costs can make construction projects more expensive, leading to higher home prices.

2. Higher Prices for New Homes

  • Impact on Homebuilders: Builders will likely pass on the increased costs of construction materials to consumers. This could mean:
    • New home prices might increase due to the higher cost of construction materials.
    • Homebuilders could also opt to build fewer homes or scale back on features to maintain profitability, which could limit availability and affordability for new buyers.
  • Price of Renovations: Existing homeowners looking to renovate their homes could also face higher costs for materials like steel beams, appliances, and metal fixtures. This could discourage some homeowners from making upgrades or repairs, further reducing the supply of homes on the market.

3. Rising Mortgage Rates and Affordability

  • Inflationary Pressure: Tariffs can contribute to inflation, which can cause the Federal Reserve to raise interest rates to curb inflation. Rising interest rates would increase the cost of borrowing money to buy a home.
    • This means higher mortgage rates for potential homebuyers, making home loans more expensive and decreasing affordability.
    • Buyers may be able to afford less house for the same monthly payment, which could push them out of certain price ranges, especially first-time homebuyers.

4. Slower Housing Market

  • Supply and Demand Issues: Higher construction costs may reduce the supply of new homes being built, while demand remains relatively constant or even increases. This could lead to higher prices and less inventory, which could stall the market or make it harder for new buyers to find affordable options.
  • Reduced Homeownership Opportunities: The combination of higher material costs, higher home prices, and rising mortgage rates could make homeownership more difficult, especially for lower and middle-income buyers who are already struggling with affordability.

5. Impact on Homebuyers’ Budgets

  • Increased Construction Costs for Custom Builds: If you’re building a custom home or remodeling, the costs of construction and renovation might rise due to tariffs on materials like steel, aluminum, and certain types of lumber. This could make custom builds less affordable, forcing buyers to look at less expensive options or delay their projects.
  • Fewer Deals on Appliances: Many appliances and home goods (like refrigerators, dishwashers, and washers/dryers) are imported, and if tariffs are imposed on these products, it could lead to higher prices for appliances. This means that new homeowners or renovators might pay more for essential home products.

6. Regional Variations

  • Tariff Impact by Region: The effects of tariffs may vary depending on your location. In regions where new homes are heavily reliant on imported materials or in areas that are seeing a boom in construction, prices could rise more sharply. For example, coastal areas with high construction activity may see larger price hikes compared to regions with less building.

In Summary:

For new homebuyers and homeowners looking to renovate, the tariffs imposed on construction materials and imported goods under President Trump’s administration are likely to:

  • Increase the cost of new homes due to higher construction and material costs.
  • Make it harder to afford a home, especially with rising interest rates and higher prices for home construction materials.
  • Slow down the housing market as supply tightens and costs rise.
  • Impact the cost of renovations and home improvements for existing homeowners, making them more expensive or delaying projects.

For anyone looking to buy or renovate, these tariffs are important to consider because they can make a significant impacton home affordability, the cost of loans, and the overall housing market dynamics.

Proposed Texas Bill HB 202 (2025) – Appraised Value Caps

Posted on by Ali Palacios - Broker

Proposed Texas Bill HB 202 (2025)

Relating to making permanent the limitation on increases in the appraised value of certain real property for ad valorem tax purposes.

HB 202 is a proposed bill that seeks to make permanent the limitation on increases in the appraised value of certain real property for ad valorem tax purposes in Texas. This bill aims to provide predictability and stability for property owners by capping the annual increase in property appraisals, particularly in the context of property taxes.

Key Provisions of the Bill:

  1. Permanent Cap on Appraised Value Increases:
    • The bill proposes to permanently extend or codify a limitation on how much the appraised value of certain real property can increase each year for the purpose of calculating ad valorem taxes (property taxes).
    • This cap is meant to protect property owners from significant annual increases in their property appraisals that could lead to higher taxes, particularly in areas with rapidly rising property values.
  2. Current Temporary Cap:
    • Currently, there is a temporary cap in place that limits the increase in the appraised value of homesteads to 10% per year for tax purposes. This cap was designed to prevent homeowners from being overwhelmed by escalating property taxes as property values rise.
    • HB 202 would make this cap permanent for eligible properties, ensuring that this protection remains in place for the long term.
  3. Eligibility:
    • The bill is likely to apply to homesteads (primary residences) and may extend to other types of real property, subject to specific provisions.
    • This measure would provide relief to homeowners and property owners who may otherwise face higher taxes due to rapidly increasing property values.
  4. Stabilizing Property Taxes:
    • By capping the increase in property appraisals, the bill aims to create more predictable property tax ratesfor homeowners, making it easier for individuals and families to plan their finances without the threat of drastic increases in property taxes due to sudden jumps in property values.

Potential Benefits:

  1. Protection Against Rising Taxes:
    • Homeowners will benefit from the predictability of their property tax bills, as they won’t face large, sudden increases due to significant jumps in appraised property values.
  2. Housing Affordability:
    • The bill could help make homes more affordable for Texans, especially in high-growth areas where property values have been rising rapidly.
  3. Increased Stability for Taxpayers:
    • Homeowners would have greater financial certainty, as the 10% cap prevents drastic increases in property taxes each year, ensuring that taxpayers are not burdened by rapidly escalating property costs.
  4. Encouragement of Homeownership:
    • The bill could make homeownership more attractive by reducing uncertainty about future property tax liabilities, which may encourage individuals to invest in homes without fear of rapidly increasing tax rates.

Potential Drawbacks or Concerns:

  1. Impact on Local Governments’ Revenue:
    • Capping property appraisals could limit the amount of property tax revenue available to local governments, which rely on this funding for public services such as education, emergency services, and infrastructure.
    • Local governments may face pressure to adjust other forms of taxation or cut services if the cap significantly reduces their property tax income.
  2. Potential for Inequity:
    • Some critics may argue that the cap disproportionately benefits higher-value property owners or those in rapidly appreciating areas, while not necessarily addressing broader issues related to housing affordability across the state.
  3. Market Distortions:
    • By limiting appraised value increases, the bill could distort the local real estate market, particularly in areas where property values are growing quickly. This could lead to situations where property values are not accurately reflected in tax assessments, potentially impacting future real estate transactions.
  4. Challenges in Adjusting Local Budgets:
    • Local governments may find it difficult to adjust their budgets and maintain public services if they are unable to generate the necessary revenue from rising property taxes due to the cap. This could lead to budget shortfalls or the need to increase other taxes or fees.

Conclusion:

HB 202 seeks to make permanent a limitation on the annual increase in the appraised value of certain real properties for ad valorem tax purposes. The bill is designed to provide taxpayer protection from rising property taxes, particularly benefiting homeowners in high-growth areas by capping increases in their property assessments. While the bill offers significant benefits in terms of housing affordability and predictability, it could also face challenges related to local government revenue and potential market distortions.

Texas Proposed Bill HB 191 (2025) – purchase of real property by foreign entities

Posted on by Ali Palacios - Broker

Summary of Texas Proposed Bill HB 191 (2025)

Relating to the purchase or acquisition of title to real property by certain foreign entities.

HB 191 is a proposed bill in Texas that seeks to regulate the purchase or acquisition of real property by certain foreign entities, such as foreign governments, corporations, or individuals. The bill would establish restrictions and requirements for the acquisition of real estate within the state of Texas, particularly targeting foreign influence over the state’s land and property market.

Key Provisions of the Bill:

  1. Restrictions on Foreign Ownership:
    • The bill proposes to restrict or regulate the ability of certain foreign entities to purchase or acquire real property in Texas.
    • Specifically, the bill focuses on foreign governments, foreign corporations, and other entities controlled by foreign interests that may have interests in acquiring property in Texas.
    • The bill likely aims to address national security concerns or issues related to foreign influence, especially from countries that may have conflicting interests with the United States.
  2. Exemptions:
    • The bill may outline exemptions for specific types of foreign entities, such as those engaged in business activities that contribute to the state’s economy, or individuals purchasing property for personal use.
    • Some foreign acquisitions may still be allowed, particularly those that align with business or investmentactivities in Texas, but they would need to meet certain criteria to be eligible.
  3. Government Review and Approval:
    • Foreign entities looking to purchase property may be required to go through a review and approval processby state authorities before the transaction can be completed.
    • This review process may involve checks related to national security, economic impact, and whether the acquisition is in the best interests of Texas residents and the state’s economic security.
  4. Transparency and Reporting:
    • The bill might require foreign entities to disclose their intent to purchase property in Texas, as well as their ownership structure and any affiliations with foreign governments or interests.
    • Transparency provisions would likely ensure that these transactions are publicly reported and open to scrutiny by both state officials and the public.
  5. Land and Property Use Concerns:
    • One of the central concerns driving this bill is the potential for foreign ownership of large tracts of agricultural land, commercial properties, or even land near military bases or critical infrastructure. These concerns focus on issues such as:
      • National security risks related to foreign control over strategic land.
      • Economic dominance by foreign interests, which could undermine local businesses or contribute to rising property prices.
  6. Penalties and Enforcement:
    • The bill would likely set out penalties for foreign entities that violate the restrictions or fail to comply with the registration and approval processes.
    • This could include fines or the reversal of property transactions that were deemed illegal or improperly approved.

Potential Impact of the Bill:

Pros:

  • National Security: The bill is designed to protect Texas and the United States from potential foreign influence on critical infrastructure, especially regarding land near military or strategic locations.
  • Economic Protection: By limiting foreign ownership, the bill could help preserve local control over the state’s land market and prevent the concentration of too much land in foreign hands.
  • Transparency: The bill’s focus on transparency would ensure that foreign acquisitions of real estate are subject to review and oversight, making it more difficult for potentially harmful foreign entities to secretly control large amounts of land.

Cons:

  • Impact on Foreign Investment: The bill may discourage legitimate foreign investment in Texas, particularly in sectors that provide economic benefits like agriculture, real estate development, and business operations.
  • Legal Challenges: The bill could face legal challenges on the grounds of property rights or international trade agreements, especially if it is seen as discriminatory against foreign investors or violates constitutional protections on private property.
  • Possible Trade Retaliation: Countries affected by the restrictions may retaliate, which could affect the state’s international relations or lead to trade restrictions.

Context and Rationale:

The bill comes at a time when there is increasing concern in some parts of the U.S. about foreign ownership of land and its potential impact on national security, economic independence, and local communities. This issue has gained attention due to specific instances where foreign entities, particularly from China and other foreign governments, have been purchasing large tracts of land in rural or strategic areas. The bill seeks to balance Texas’ open market system with the need for national security and local control over its resources.

Proposed Texas HB 165 (2025) – Property Taxes

Posted on by Ali Palacios - Broker

Texas legislature has Proposed Texas HB 165 (2025) that focuses on the elimination of ad valorem taxes and establishes a joint interim committee to study the feasibility and potential impact of such an elimination. Remember that this is a bill, it has not been approved. Let your representative know how you feel Property taxes are a huge issue in Texas.

Here’s a concise summary of the bill:

Key Points of HB 165:

  1. Elimination of Ad Valorem Taxes:
    • The bill proposes to eliminate ad valorem taxes, which are taxes levied based on the value of property (real estate, personal property, etc.). These taxes are currently a major source of revenue for local governments in Texas, particularly for funding public services such as schools, public safety, and infrastructure.
    • The proposal calls for a complete removal of these taxes at a state level, shifting the financial burden away from property owners.
  2. Creation of a Joint Interim Committee:
    • To evaluate the feasibility of eliminating these taxes, the bill proposes the creation of a joint interim committee.
    • This committee would consist of members from both the Texas House of Representatives and the Texas Senate, tasked with studying the economic, social, and fiscal impacts of eliminating ad valorem taxes.
    • The committee would work to develop alternative revenue streams to replace the funds currently generated by property taxes, ensuring that local governments can still meet their financial obligations.
  3. Committee’s Responsibilities:
    • The committee would be responsible for gathering data, consulting with experts, and analyzing the impactof tax elimination on public services and the economy.
    • The committee would also explore other tax alternatives, such as sales taxes, or methods of generating revenue without relying on property taxes.
  4. Timeline and Report:
    • The joint interim committee would be required to report its findings and make recommendations to the legislature, potentially influencing future tax reforms or policies in Texas.

Why This Bill Matters:

  • Ad Valorem Taxes are a significant revenue source for local governments, so eliminating them could have major implications for public funding and service delivery.
  • The bill aims to explore alternative tax structures and potentially reduce the tax burden on property owners, but it also recognizes the need for careful planning to avoid disruptions to public services.

Conclusion:

HB 165 seeks to eliminate ad valorem taxes in Texas and replace them with alternative revenue sources. It creates a joint interim committee to study the feasibility and impacts of this proposal, ultimately helping lawmakers evaluate the potential consequences of such a significant tax reform.

FAQ about the Listing Agreement

Posted on by Ali Palacios - Broker

Listing a home for sale can be overwhelming. I get it. There are a lot of documents involved along with getting your home ready for sale. Here are a list of the most common questions I receive. If there is something not covered here, just ask.

Questions about selling your home

What is the best time of the year to sell my home?

Honestly, there are pros and cons on selling a home anytime during the year. It depends on the home. In general, larger homes in more suburban areas sell better during the summer months. Smaller homes usually sell well all year around. It is best to have your home evaluated and speak to your real estate agent about the pros and cons on selling thought the year.

How long will it take to sell my home?

The time that your home is on the market depends on several factors: pricing, time of the year, the size of the home, location and much more. The best way to get a realistic number is by speaking to your real estate agent. Your agent can evaluate trends for the last 6 months and give you a general idea on timing. 

Once you are under contract, it can take 7-45 days to close. Cash deals can close sooner, while financed purchases can take 30-45 days to close. 

How much is my home worth?

The answer is not simple. Every home is different. When a home is sold, a willing seller and a willing buyer have just announced to the world the value of that home. From there, other similar homes are benchmarked, but other factors come into play. The most important are: location, size, finishes, and condition. For more info

Zillow states that my home is worth $200,000 and the state tax accessor has my value at $180,000. Why is your suggested price different?

All of these entities are looking at your home in different ways. Sites like zillow work well in states that discloses sales prices. In Texas we are a non-disclosure state. Zillow pick up values using data from county and tax assessor records. Since prices are not disclosed to our tax assessor, these zestimates are normally not accurate.

The tax assessor has also established a market value or assessed value for your property. This is the value they use to calculate your yearly tax bill. This value may or may not be your actual market value. More info

As a real estate agent we look at similar homes that have sold in your area and establish a suggested list price. We used several factors to determine price. For more info on this

How much it cost me to sell my home?

You have options when it comes to selling your home. You have to decide what is best for you. Here is a list of some of the most popular choices.

We are a full service brokerage. We will guide you through getting your home ready, marketing and the overall sales process.   What does the agent do for you?

Should I make repairs to my home before putting it on the market?

The answer is normally yes. Skipping repairs can lose you money in the long run. Repair the little things that often get negotiated and cost more after someone else discovers them and a “Professional” has to be hired. More info

Should I use a real estate agent or sell my home for sale by owner?

This is a decision you will have to make. Just know that selling a home is not as easy as they make it look on TV. There are several pros to using a real estate agent. 

  • Real Estate agent will facilitate the sale or purchase of a contract. Your agent know how and when things are done.
  • Agent can spot potential problems. Being proactive is always cheaper than reactive.
  • A real estate agent acts like a mediator between the buyer and the seller.
  • Home is promoted on the master listing system (HAR.com) and distributed to other sites such as Zillow, Trulia, Home.com, etc.
  • Agents know what buyers want. It’s important to make your home as marketable as possible. This will translate into more income for a seller.
  • Only buyers that are qualified and represented will access your home.

Your selling options

  •  

Can you sell your home “as-is”?

Technically the standard sales contract is an as-is contract. The seller can make conditions on accepting an offer or in permitting an offer to be submitted, these requirements would limit the buyers that would be interested in your property. This also does not limit the buyer from getting your home inspected.  

Can I forbid home inspections?

Although a seller could refuse to permit a buyer to have inspections or a right to terminate under the termination option, it is generally not a good idea to try to prevent a buyer from having a right to freely inspect the home. Preventing a buyer from an inspection increases the seller’s risk of a subsequent claim that she withheld information about the condition of the property. Furthermore, most homebuyers are going to be reluctant to buy a home without a right to inspect the home and without an option to terminate the contract if they are not satisfied about the condition of the property. Permitting the buyer to inspect a property doesn’t obligate a seller to agree to repairs.

Before you refuse to permit any inspections, discuss this with an attorney. 

What appliances typically stay and which ones may I take?

The only appliances that are typically considered personal property and can be removed are the washer, dryer and refrigerator. That said, it will all depend on the contract you signed. If you agreed to leave those appliances within your written and signed contract, those appliances should stay. 

What are seller disclosures and do I have to fill them out?

A seller disclosure form is required by sellers of previously occupied single family residences and is to be used in conjunction with a contract for the sale of real property. It contains information required to be disclosed by Section 5.008 of the Texas Property Code regarding material facts and the physical condition of the property. 

The basic seller disclosure forms are composed and available to the public from the Texas Real Estate Commission (TREC).

There are a few exceptions. See Texas Property Code Sec 5.008(e) will lists those cases exempt from needing to provide a Seller’s Disclosure.

Questions about the Listing Agreement

Do I have to sign a listing agreement?

If you want to sell your home using a real estate agent, you must sign a listing agreement. A listing agreement is a contract between the property owner and a real estate broker. The contract authorizes the agent to represent you and find a buyer for the property. The agreement is legally binding and gives the real estate agent or broker the right to sell your home.

Can I cancel the listing agreement once signed?

If you are unhappy and you are not under contract with a buyer, tell your real estate agent that you’re unhappy and you want to cancel the listing agreement in writing. They should send you a listing agreement termination to sign. 

What is included in a listing agreement?

The listing agreement, will list the parties involved,  everything that is included in your home sale, the agent’s commission, a list of seller and agent expectations, among other things. 

How long is the listing agreement?
Toggle Content
What can you negotiate in the listing agreement?

In real estate, almost everything is negotiable. Speak to your real estate agent if you’re uncomfortable with certain terms. 

What exactly I am selling?

“Property” means the land, improvements, and accessories described below, except for any described exclusions.

What are improvements?

The house, garage and all other fixtures and improvements attached to the above- described real property, including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas, mounts and brackets for televisions and speakers, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above-described real property.

What are Accessories?

The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, door keys, mailbox keys, above-ground pool, swimming pool equipment and maintenance accessories, artificial fireplace logs, and controls for: (i) satellite dish systems, (ii) garage doors, (iii) entry gates, and (iv) other improvements and accessories.

What are Exclusions?

Exclusions are improvements and accessories that will be retained by Seller and must be removed prior to delivery of possession.

Who decides on the final list price and can be in changed?

The listing price is the price that a seller instructs Broker to market the Property. This price can change but only with seller’s consent. 

The broker’s compensation explained

The broker’s compensation is the amount that you agree to pay the broker for his services. Keep in mind that this fee is typically shared among the agents and brokers involved. There are normally two agents and possibly two brokers involved in a transaction; One that represents the buyer and one that represents the seller. 

How are the broker’s commissions paid?

All payments are made through the settlement statement and ultimately subtracted from the buyer’s net balance. 

Are there other agent Fees and/or Reimbursable Expenses?

Maybe, but these should be disclosed in advance under 5, D, 3 of the listing contract.

What is a protection period?

The protection period in a listing agreement is there to protect the real estate agent. For a certain amount of days after the contract expires, if any of the potential buyers that the seller’s agent brought in actually buy the home, then the seller will still owe them the commission.

Does my home have to be listed online?

It doesn’t but seller acknowledges and understands that if this option is chosen the seller’s Property will not be included in the MLS database available to real estate agents and brokers from other real estate offices who subscribe to and participate in the MLS, and their buyer clients may not be aware that Seller’s Property is offered for sale;

In addition, the seller’s Property will not be included in the MLS’s download to various real estate Internet sites that are used by the public to search for property listings; and real estate agents, brokers, and members of the public may be unaware of the terms and conditions under which Seller is marketing the Property.

When will my home be listed in the Multiple Listing Services?

You as a seller can decide.

Broker will file this Listing with one or more Multiple Listing Services (MLS) by the earlier of the time required by MLS rules or 5 days after the date this Listing begins; unless the seller instructs them differently. 

Does my sales price have to be disclosed to the MLS (master listing services)?

Submission of information to MLS ensures that persons who use and benefit from the MLS also contribute information.

MLS rules require Broker to accurately and timely submit all information the MLS requires including final closing of sales and sales prices.

Who and how will others access my property?

The listing agreement authorizes access to the Property. This means giving permission to another person to enter the Property, disclosing to the other person any security codes necessary to enter the Property, and lending a key to the other person to enter the Property, directly or through a keybox. To facilitate the showing and sale of the Property.

Seller instructs Broker to:

(1) access the Property at reasonable times;
(2) authorize other brokers, their associates, inspectors, appraisers, and contractors to access the Property at reasonable times; and
(3) duplicate keys to facilitate convenient and efficient showings of the Property.

Where will my key be kept?

A copy of your key will be kept in a supra keybox that is placed on the Property. A keybox makes it more convenient for brokers, their associates, inspectors, appraisers, and contractors to show, inspect, or repair the Property. The keybox is opened by a special programmed device so that authorized persons may enter the Property, even in Seller’s absence. 

What is a Cooperating broker?

There are usually two agents and brokers involved in any transaction.

The listing broker will allow other brokers to show the Property to prospective buyers. The listing broker will offer to pay the other broker a fee as described in the contract if the other broker procures a buyer that purchases the Property.

What is Intermediary Status

There are occasions that the listing broker will be contacted by a buyer directly.

Broker may show the Property to interested buyers who Broker represents. If a prospective buyer who Broker represents offers to buy the Property, the seller may authorize the Broker to act as an intermediary and Broker will notify Seller that Broker will service the parties in accordance to the contract. See section 9, A.

Please note that the seller can decline intermediary status.

Is any information I share with my agent confidential?

During this Listing or after it ends, Broker may not knowingly disclose information obtained in confidence from Seller except as authorized by Seller or required by law. Broker may not disclose to Seller any confidential information regarding any other person Broker represents or previously represented except as required by law.

What type of financing can I accept on my home?

Depends on the home’s condition, and sales price. Speak to you agent about those that you can consider. 

Can a seller list their home with multiple agents?

No. The seller should only be bound by one listing agreement with another broker for the sale, exchange, or lease of the property. You can cancel the first listing agreement and then sign a new one with another broker.

Do you need to inform your real estate agent of any past due balances due on the home, property taxes or any liens?

Yes, please inform your agent of any delinquent loans and all other financial obligations related to the Property, including but not limited to mortgages, home equity loans, home improvement loans, homeowner association fees, and taxes. 

I am relocating for work and my company requires that I use a relocation company. Can I choose my agent?

Depends. Speak to your company and see what their rules are. 

My property is vacant. Is there anything I should know about the listing process while vacant?

If the Property is or becomes vacant during this Listing, Seller must notify Seller’s casualty insurance company and request a “vacancy clause” to cover the Property. Broker is not responsible for the security of the Property nor for inspecting the Property on any periodic basis.

What are Addendas?

Addenda that are part of this Listing. If the item is checked off make sure it’s attached to the listing agreement. 

Do I need to inform my listing agent if I am a foreign person?

If Seller is a “foreign person” as defined by federal law, a buyer may be required to withhold certain amounts from the sales proceeds and deliver the same to the Internal Revenue Service to comply with applicable tax law. A “foreign person” is a non resident alien or a foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation; or a foreign partnership, trust, or estate.

Is Curb Appeal Important? YES!

Posted on by Ali Palacios - Broker

The truth is that we judge…

We do judge the home and what we can expect inside by the exterior. The exterior of the home is our first impression and will set the mood for the rest of the tour.

I know it’s sometimes easier to offer a buyer credit for paint or landscaping but don’t do it. Most buyers can’t visualize changes and often won’t take a second look at a house if the first look doesn’t appeal to them.

Let’s check out a few houses:

When I look at this home, I assume it’s abandoned. I also would consider putting on my boots just in case I encounter snakes or rodents. My first thought is that the home is unsafe so I will be very careful when walking through the home.

The first home is an extreme but let’s look at this one. The lawn looks great and is freshly cut. The front door and shudders appear to be in great shape. The landscaping is a little over grown. Although the ivy and vine growing on the home is attractive, it’s also very destructive to the home. I’d be concerned that there is a lot of structural damage under the vines.


What about this home? The home appears to me in great shape. I don’t see any peeling paint. The roof is clean and appears to be newish. The hanging plants adds a pop of color. The seating area is inviting. You can imagine yourself sitting on this patio, enjoying an evening. That’s exactly your goal! You want the buyer to see themselves living in the home. 

Clean and Repair

Step 1

Walk around your home and make a list of anything that needs to be repaired or cleaned. If it’s broken and it’s not essential to the home, consider removing it. For example, a broken gutter. Your home doesn’t NEED a gutter. So either repair it or remove it. Things to consider:

  • Power wash mold, mildew and/or dirt on the house, siding, sidewalks, or driveway.
  • Clean out any spider webs or mud daubers nests
  • Look for signs of pest. Treat for ant mounts, spiders or any other pests you might encounter. Look for signed of termites. If you think you might have termites, call a professional. See termite tunnel below.

  • Walk around the home and check out your foundation. Look for cracks and rebar exposure. If you are concerned about your foundation call a professional. Why do we have foundation issues?

Popped corners

Corner pop Repairs

Slab crack

Exposed Rebar

Water should drain away from your foundation and away from your home

Sitting water will cause wood rot and the concrete to sink

  • Cracks in your concrete? Walk the pathways to your door. Are there any tripping hazards? Is the concrete uneven? Cracks?
  • Take a look at your roof. Do you have any shingles that have any missing, lifted and/or broken shingles? Do you see any waves or bulges in the roof? Speak to professional. A new roof is a huge expense and will deter buyers. In our area a roof will typically last 15-20 years, depending on wind/storm exposure.

Missing shingles

Lifted shingles

Bulging or wavy roof

  • Pick up any items you might have laying in the yard
  • Clean all windows and gutters. While you are cleaning the window look for cracked caulking and wood damage. Repair as needed.
  • Remove any peeling paint and touch up any areas that need to be painted. This should include trim, front door, shutters and/or walls. This is especially important if the home was built before 78 because of potential lead paint.
  • Edge sidewalks and remove vegetation growing between concrete or bricks.
  • Mow the lawn and get rid of weeds. If you have patches of dead grass, consider adding sod or grass seed.
  • Rake and dispose of leaves.
  • Trim tree limbs near or touching the home’s roof. Trim all overgrown vegetation. Especially if it covers the home.
  • Clean out the flower beds. Removed weeds and old mulch. Add a thick layer of new mulch.
  • Don’t forget the backyard. Backyards are important in our area. Make sure you clean off your patio (declutter) and out door furniture.
  • Make repairs as needed to any wood decks. Treat the wood if needed.
  • Make sure the home number is visible. Trim any plants that might be covering the number. Touch up the paint if needed if the numbers have faded.
  • Check out all your exterior hardware. Has the paint faded? Spray paint them. Make sure to clean the glass and remove any dead bugs.
  • Does your doorbell work? If not, repair it.
  • If your home has gutters, check for sagging or leaking gutters. You an either repair, replace or remove them.
  • Check your fence. Consider power washing the fence if needed. Repair any loose or rotten boards

Set the Mood

Step 2

Staging

  • Add a new welcome mat or clean the one you might have
  • Add pops of color to your flower beds
  • Do you have a porch? Set up a nice seating area with colorful pillows and a nice plant. Let the buyers imagine themselves enjoying an evening on your covered porch.
  • Good flow. Make sure you are able to walk to the property without any obstacles.
  • Do you have a patio in your backyard? Consider setting up a nice seating area with a few plants.

Evening Curb Appeal

Buyer will drive by your home during the day, at night, during the weekday and the weekends. You are constantly in the spotlight. Make your home appealing at night as well.

  • Add some solar lights to your flower beds
  • Leave the lights next to the garage and porch on at night

Check out these pictures for inspiration

Holidays in December from around the world

Posted on by Ali Palacios - Broker

I love that we live in an international city! We are exposed to all sorts of traditions and celebrations. I’m always curious and honored when invited to partake in these celebration. Here are a few that are celebrated in December. If you have one that I have missed, let me know. I’d love to learn about it. 

St. Nicholas Day December 6

A popular December holiday in many European countries, St. Nicholas Day, celebrates St. Nicholas of Myra, the man whose life inspired the tradition of Santa Claus and Father Christmas. He gave all of his money to the needy and was known for his compassion for children and all those in need. The holiday honors the man on the anniversary of his death, December 6, 343 A.D.

In the European countries of Germany and Poland, boys have traditionally dressed as bishops and begged alms for the poor. In Ukraine and Poland, children wait for St. Nicholas to come and to put a present under their pillows provided that the children were good during the year. Children who behaved badly may expect to find a twig or a piece of coal under their pillows. In the Netherlands, Dutch children put out a clog filled with hay and a carrot for Saint Nicholas’ horse.

Bodhi Day

Bodhi Day  (Rohastu) December 8th

Bodhi Day — or Rohatsu, as it’s known in Japan — commemorates the day in 596 BC that the Buddha is said to have attained enlightenment under the Bodhi tree. According to tradition, the Buddha decided to sit under a pipul tree and meditate until he could discover the root of suffering, and how to liberate oneself from it.

It is celebrated by Buddhists all around the world. Some choose to celebrate the day by performing acts of kindness towards others, partaking in meditation, or chanting traditional Buddhist verses.

Buddhist homes, often have a fiscus tree displayed. On Bodhi Day, these trees are usually decorated with multi-colored lights, strung with beads to symbolize the way all things are united, and hung with three shiny ornaments to represent the Three Jewels – The Buddha, the Dharma, and the Sangha. A meal of rice and milk is also significant on this holiday, as according to Buddhist legend, this is what was offered to the Buddha upon his awakening under the Bodhi tree. Children often participate in baking heart-shaped cookies, modeled after the shape of the leaves of the Bodhi-tree.

St. Lucia Day December 13

To honor this third-century saint on December 13, many girls in Sweden dress up as “Lucia brides” in long white gowns with red sashes, and a wreath of burning candles on their heads. They wake up their families by singing songs and bringing them coffee and twisted saffron buns called “Lucia cats.”

Las Posadas December 16-24

Las Posadas is a nine-day celebration which originated in Spain, but is now mostly celebrated in Mexico, Guatemala, and in the Philippines. It begins on December 16th and ends on the night of December 24.

Las Posadas derives from the Spanish word posada (lodging, or accommodation) which, in this case refers to the inn from the Nativity story. It uses the plural form as the celebration lasts for a nine-day interval (called the novena), which represents the nine-month pregnancy of Mary.

The nine-day celebration often includes candle-lit processions re-enacting  journey through Bethlehem.  They then travel from house to house, re-enacting the journey of Mary and Joseph, until they reach a designated house where the celebration is being held that year.  The celebrations of Las Posadas wrap up on Christmas Eve with a large feast where a fruit punch is typically served (ponche navideno)

Hanukkah Dates vary 

Hanukkah (or Chanukah), also known as the Festival of Lights, is an eight-day Jewish holiday which celebrates the triumph of light over darkness. Hanukkah is observed for eight nights and days, starting on the 25th day of Kislev according to the Hebrew calendar. On the Gregorian calendar, the eight days/nights fall on varying dates in between late November to late December. 

For each night of Hanukkah, one additional candle is lit, ending off with eight on the final night. The typical menorah/hanukiah consists of eight branches with an additional distinct branch in the middle. The extra light is called a shamash and is given a distinct location, usually above, or below the other eight. The purpose of the shamash is to have a light available for practical use, since it is forbidden to use the Hanukkah lights themselves for purposes other than publicizing and meditating upon Hanukkah.

It isn’t a holiday without food! Here are some traditional Hanukkah recipes

Soyal December 21-29

Soyal is the winter solstice celebration of the Hopi and Zuni Native American peoples. Participants for 9 days ceremonially bring the sun back from its long slumber, mark the beginning of another cycle of the Wheel of the Year. 

According to tradition, the kachinas (the spirits that guard over the people) come down from the mountains at the winter solstice. They remain with the people until the summer solstice. The Katsinam, which represent various beings, from animals to clouds, are messengers who send prayers for rain, bountiful harvests and a prosperous, healthy life for humankind. 

During Soyal, sacred rituals are performed in chambers, called kivas, and many ceremonies involving dancing and singing take place. During Soyal, stories are passed down from the elders to children in which they are taught important lessons.

The Hopi believe that everything that will occur during the year is arranged at Soyal.

In preparation for the kachinas’ arrival, the Hopi make prayer sticks to bless and purify the community, including their homes, animals and plants.

Yalda December 21

Yalda, or Sab-e-Yalda, meaning “birth”, in Persian is an Iranian festival celebrated on the longest and darkest night of the year. It is celebrated in the night between the last day of the ninth month (Azar) and the first day of the tenth month (Dae) of the Iranian civil calendar, which corresponds to the night of December 20th or 21st each year.

Friends and family gather together to eat, drink and read poetry until late into the night. Fruits and nuts are staple items. Pomegranates and watermelons are particularly significant as the red colour symbolizes the crimson hues of dawn and the glow of life.

Food plays a central role in the present-day form of the celebrations. Here is one of my favorite recipes.

Dongzhi December 21

Dongzhi literally means “the extreme of winter” and is one of the most important festivals celebrated by Chinese and other East Asian cultures during the winter solstice.

The origins of this festival can be traced back to the yin and yang philosophy of balance and harmony in the cosmos. After this celebration, there will be days with longer daylight hours and therefore an increase in positive energy flowing in.

Traditionally, the Dongzhi Festival is also a time for the family to get together. One activity that occurs during these get-togethers (especially in the southern parts of China) is the making and eating of rice balls, which symbolize reunion. Other dishes include dumplings, mutton soup, rice cake and red bean sticky rice. 

In Taiwan, many people take invigorating tonic foods during this particular winter festival. To the Taiwanese, winter is a time when most physical activities should be limited and you should eat well to nourish your body. 

Kwanzaa Decemer 26-January 1st

Kwanzaa is a week-long African American and Pan-African holiday which celebrates family, community and culture. Celebrated December 26 to January 1st every year, its origins are in the first harvest celebrations of Africa from which it takes its name. It is based on seven core principles based on African Heritage.  The holiday was created by Maulana Karenga, and was first celebrated in 1966–1967.

Kwanzaa builds on the five fundamental activities of Continental African “first fruit” celebrations: in-gathering, reverence, commemoration, recommitment, and celebration.

Gifts are given mainly to children, and usually include a book and a heritage symbol. The book is to emphasize the African value and tradition of learning. The colors of Kwanzaa are black, red and green and are often utilized in decorations for Kwanzaa. Decorations include symbolic items such as: Mazao, the crops (fruits, nuts, and vegetables), Mkeka: Place Mat, Vibunzi: Ear of Corn, Mishumaa Saba: The Seven Candles, Kinara: The Candleholder, Kikombe Cha Umoja: The Unity Cup, and Zawadi: Gifts

Christmas December 25

In the Christian faith, Christmas is the historical celebration of the birth of Jesus Christ. Whether celebrated for this religious reason or solely as a cultural celebration, Christmas traditions vary around the world. While Americans celebrate with Christmas trees and visits from Santa Claus, In Australia they might decorate a “Christmas Bush,” a native Australian tree with small green leaves and flowers that turn red during the summer.

In England, Christmas traditions are similar to those in the United States, but instead of leaving milk and cookies for Santa Claus, children leave mince pies and brandy for Father Christmas. In Iceland, capital city Reykjavik turns into a winter wonderland with its Christmas market and for the children, there is not one but thirteen Santas, known as Yule Lads. One arrives each night in the thirteen days before Christmas, leaving small gifts in shoes left in window sills. 

Boxing Day December 26

Boxing Day takes place on December 26. Only celebrated in a few countries, the holiday originated in the United Kingdom during the Middle Ages. It was the day when the alms box, collection boxes for the poor often kept in churches, were opened and their content distributed, a tradition that still happens in some areas. It was also the day servants were traditionally given the day off to celebrate Christmas with their families.

Boxing Day has now become a public holiday in the United Kingdom, Canada, Australia, and New Zealand, among other countries. In England, soccer matches and horse races often take place on Boxing Day. The Irish refer to the holiday as St. Stephen’s Day, and they have their own tradition called hunting the wren, in which boys fasten a fake wren to a pole and parade it through town. The Bahamas celebrate Boxing Day with a street parade and festival called Junkanoo. 

Ōmisoka December 31

Ōmisoka, New Year’s Eve, is considered the second-most important day in Japanese tradition as it is the final day of the old year and the eve of New Year’s Day, the most important day of the year. Families gather on Ōmisoka for one last time in the old year to have a bowl of toshikoshi-soba or toshikoshi-udon, a tradition based on eating the long noodles to cross over from one year to the next.

At midnight, many visit shrines or temples for Hatsumōde. Shinto shrines prepare amazake to pass out to crowds and most Buddhist temples have large cast bells that are struck once for each of the 108 earthly desires believed to cause human suffering. 

New Year December 31

In many places people stay up late to see the old year out and the new year in. Almost everywhere in the world fireworks are set off, church bells ring, horns toot, whistles blow, sirens shriek. It’s a time to bring in the new year.

In Ecuador, families dress a straw man in old clothes on December 31. The straw man represents the old year. The family members make a will for the straw man that lists all of their faults. At midnight, they burn the straw man, in hopes that their faults will disappear with him.

Those in Hong Kong pray to the gods and ghosts of their ancestors, asking that they will fulfill wishes for the next year. Priests read aloud the names of every living person at the celebration and attach a list of the names to a paper horse and set it on fire. The smoke carries the names up to the gods and the living will be remembered.

Three Kings Day January 3

Although this holiday is not in December, it’s part of the December holidays. At the end of the Twelve Days of Christmas comes a day called the Epiphany, or Three Kings Day. This holiday is celebrated as the day the three wise men first saw baby Jesus and brought him gifts. On this day in Spain and Mexico, many children get their Christmas presents. In Puerto Rico, before children go to sleep on January 5, they leave a box with hay under their beds so the kings will leave good presents. In France, a delicious King cake is baked. Bakers will hide a coin, jewel, or little toy inside.

Do you celebrate a holiday I have not listed? Let me know, I would love to share.

Download your free home buyer's guide now

Sources:
https://en.wikipedia.org/wiki/Bodhi_Day
https://en.wikipedia.org/wiki/Las_Posadas
https://www.wintranslation.com/decemberholidays/
https://en.wikipedia.org/wiki/Hanukkah
https://en.wikipedia.org/wiki/Soyal
https://www.wilderutopia.com/traditions/soyal-ceremony-hopi-kachinas-dance-at-winter-solstice/
https://en.wikipedia.org/wiki/Yaldā_Night
https://en.wikipedia.org/wiki/Dongzhi_Festival
https://www.history.com/topics/holidays/kwanzaa-history
https://worldstrides.com/blog/2015/12/december-holidays-around-the-world/
https://www.nippon.com/en/nipponblog/m00060/
https://www.learningliftoff.com/9-winter-holidays-around-the-world/
https://en.wikipedia.org/wiki/Saint_Nicholas_Day 

Prefabricated Homes – Modular, Manufactured and Mobile Homes

Posted on by Ali Palacios - Broker

“Prefabricated” homes can refer to buildings built in components or panels that are transported to a homesite. Most people think mobile homes when their hear the word “prefabricated” home, this isn’t the case. Let’s explore these options and their pros and cons.

Modular Homes

Modular homes are created in sections, and then transported to the home site for construction and installation, think puzzle. These are typically installed and treated like a regular house, for financing, appraisal and construction purposes, and are usually the most expensive of the three. Although the sections of the house are prefabricated, the sections, or modules, are put together at the construction much like a typical home.

How can you recognize a modular home? Every modular home should have a small metal tag on the outside of each section, or in kitchen cabinets and bedroom closets.

Since modular homes are typically built using the same materials as traditional stick-built homes, it stands to reason that they will last as long as these homes.

Sample Modular Home Source
Sample Modular Home Clayton
Sample Modular Home Method Homes

Pros

  • Modular home construction tends to be more exact than on site built homes
  • These can be as large or as small as you choose.
  • There are many different style to choose from
  • Built in a weather controlled enviorment (not exposed to rain)
  • Can be constructed quickly
  • In most cases a municipality cannot differentiate between a modular home and a site-built home.
  • Manufacturers can purchase materials in bulk which will reduce overall cost
  • More financing options available

Cons

  • In most cases the home needs to be approved by city zoning and subdivision restrictions
  • You will need to already own the land where the home will be assembled
  • In most cases, the company will need to be paid in full before they start construction (this can be financed)
  • Not all mortgage lenders have knowledge in this area so finance may take longer
  • There may still be neighborhoods or municipalities that will not allow you to build a modular home
  • Perceived lower value by public may caused you issues once you are ready to resell
  • It is difficult to make changes once fabrication has started
  • When you buy a modular home, you may need to hire someone to assemble the prefabricated parts and take care of plumbing and electricity.
  • The home site (land) needs to be level and cleared of trees and wires to accommodate a large crane. The foundation must be poured perfect to fix the modular pieces
  • Prices can be deceiving because you will have to add land costs, assembling, hookups, transportation, driveway cost, etc.
  • Careful handling of the modular components while in transit is required. Sheetrock stress cracks are common.

How are modular homes built?

Manufactured or Mobile Homes

I’ve grouped these two together because there are a lot of similarities but please note that there are difference as well that I will note below.

Manufactured homes and mobile homes, or trailers, are built on wheels, and can be pulled by a vehicle. They are considered to be personal property, and are licensed by the Dept. of Motor Vehicles. They must be built to the DMV code, and pass inspection for licensing. 

Manufactured homes and mobile homes are different but they have lots of similarities. The HUD code, enacted in 1976, is really what makes a manufactured home fundamentally different from a mobile home. Some elements remain the same—for instance, they’re still built off site and then assembled on site on a rectangular chassis rather than a permanent foundation. Wheels, hitch and axles are removed on site when the home is attached to the land. Typically Manufactured homes are intended to just be moved once; whereas mobile homes can be moved several times. 

Once the land has been prepared and the foundation completed, the home may be delivered. At this point you will need electrical service. The home must be closed up as soon as it’s delivered so it won’t be damaged. This is called the finish work and it includes things like installation of roofing shingles, attaching exterior siding, construction on decks and porches, checking for leaks, etc. This will require the hiring of different contractors and good weather. 

Manufactured homes must have “HUD tags” to meet most mortgage lending guidelines. These tags, or more properly, certifications, state that the manufacturer complies with safety standards created by the Department of Housing and Urban Development, or HUD. A HUD tag ensures the home meets safety and livability standards, so it’s a good thing to have.

HUD stated that based to today’s building standards a manufactured home can last 30-55 years if properly maintained.

how to buy a mobile manufactured home

There are several rules you must follow to convert a manufactured home that is considered personal property or real property.

How are mobile homes converted from a “car” to a house?

Sample Manufactured Home Source
Sample Manufactured Home Source
Sample Manufactured Home Sunshine Homes

Pros

  • These homes can be placed on owned or leased land
  • Less expense overall
  • If you own the land, you might be able to use the land as collateral for the home
  • Quick built time and installation
  • They can be attached to land and made permanent
  • Potentially lower tax bills

Cons

  • Manufactured homes are considered mobile homes until they are fixed to land. See restrictions with the DMV
  • You can move them from one location to another and moving these can cause financing issued
  • Local laws may restrict movement and installation
  • Utility services are required and can be costly if not available
  • Foundations are not always needed
  • Check deed restrictions because many will restrict Mobile/manufactured homes even if they are permanently placed onto the land
  • Financing is limited and restricted. They are typically financed as personal property and land is consider “real” property. Few real estate lenders will finance mobile homes built before 1976. Financing limitations.
  • Mobile homes tend to depreciate like vehicles, not increase like traditional housing
  • Land preparation will add to the overall cost
  • Perceived lower values from public
  • Interest rates are typically higher than mortgage rates because loans for movable property are riskier for lenders
Sample Mobile Home Source
Source

Mobile home loan Info

Mobile home loan Facts

Homesite development checklist

Land and Home Expense Planner

Sources:

Pros And Cons Of Modular Homes | 18 Key Points

10 Basic Facts You Should Know About Modular Homes

https://www.finelinehomes.com/biggest-problems-modular-homes/

https://www.manufacturedhousing.org/wp-content/uploads/2018/12/MHI-Construction-Planning-Guide.pdf

https://www.manufacturedhousing.org/wp-content/uploads/2018/06/2018-MHI-Quick-Facts-updated-6-2018.pdf

Understanding The Difference Between Mobile and Manufactured Homes

https://www.realtor.com/advice/buy/what-is-a-manufactured-home/

https://www.tdhca.state.tx.us/mh/faqs-sol.htm

Loans for older manufactured housing (how to buy a mobile home)

https://www.hud.gov/program_offices/housing/sfh/title/repair

https://www.thehomesdirect.com/blog/how-does-the-manufactured-home-buying-process-work

https://mobilehomeliving.org/30-tips-for-buying-a-new-manufactured-home/

Your Home, Your Rules – Showing your Home during the Conoravirus outbreak

Posted on by Ali Palacios - Broker

Speak to your Real Estate agent about possible changes/rules that you can implement to make your property tours safer.

These restrictions may reduce the number of visits but it will assure you that those that do tour your property are serious buyers.

1. Have your listing agent request a copy of the buyer’s pre-qualification in advance. If they are not pre-qualified they shouldn’t be touring your property.

2. Have your agent use the following form to at least ask if the parties that will tour your property have symptoms.

3. Have all persons entering your home remove their shoes 👞👡 right outside your home. Add a note to your front door requesting this just in case the buyer’s agent forgets to tell their client.

4. Clean frequently touched surfaces and objects daily (e.g., tables, countertops, light switches, doorknobs, and cabinet handles).

5. Consider offering hand sanitizer by the front door. Add a note asking those entering to please use the sanitizer before they tour your home.

6. Speak to your agent about offering a video tour of your property. Sometimes a video with answer the questions buyers have about your property and they might rule it out based on further details. The truth is that your home is not for everyone. Let’s limit the tours to the ones that really are interested.

🗣This works both ways, if you as the seller are feeling ill please speak to your listing agent about canceling all showings until further notice.

We all have to do our part to help stop the spread!

COVID-19 Addendum provides for a 30-day extension of the closing date

Posted on by Ali Palacios - Broker

My job as a Real Estate Agent is to protect my buyers and sellers during the buying and selling process. 🌟 We have seen many delays in the home selling/buying process. 🌟 These delays have caused extensions in closing dates. It’s very important to protect your interests. The Realtor Organization has created a form that will cover you should you need an extension due to the COVID19 outbreak. Ask your agent about this form. Read it and see if you feel you’d like it included in your offer/contract.

The 30-day extension under the addendum is available if the delay in closing is due to a quarantine or closure that affects the buyer, seller, or other service provider, including, but not limited to, a title company, lender, inspector, or appraiser.

Please note that any date extensions must be approved by sellers and buyers alike. If one party does not agree, you will have a problem.