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Getting To Be A Good Time To Buy A Condo In Dallas:Makes Me Want To Scream

It really is a good time. Might be even better in the fall, though you may be tripping over the bottom feeders. Great piece by Steve, but my favorite part is where he quotes Al Coker, the last marketing guru for the ill-fated Stoneleigh, as saying “In Texas, people that have jobs are fairly confident that they are going to keep them” right before Mike Puls says “it helps that some Dallas condo projects never got off the drawing boards.”  The irony! Love you Steve Brown! I needed Depends when I read that one. I am sure the Stoneleigh management team rues the day they gave Al the keys. He came in and re-designed the whole marketing center, which I never could figure out. (I think it ended up looking more like a funeral home than a classy, tasteful condo.) I would LOVE to know what he spent on the re-vamp, and where are all those drape-y things? Not that Al is not capable, but the dramatic re-design, re-conceptualization lost critical time for the developer — time when they could have been making more pre-sales off the roll started by Kyle Crews, who is now marketing TerraNova in Preston Center. These guys were real estate pros, they knew the party was not going to last for eternity. Why didn’t they stick with the game plan and just hit the streets? Last I heard, those who had put down deposits at The Stoneleigh have been refunded and I heard the shell was being evaluated for a distress sale. The Ritz and The Azure have been plagued with structural issues, the Ritz taking good care of its owners by putting them up at the hotel while water was shut off.  Oh yes, those monthly HOA dues at The Ritz: about $1800. The Azure is also having some issues, none of which surprises me – you can have the Pope as contractor and you are going to have building issues. Two hints for next time: do not buy any building products from China. And figure out that we like closets the size of Manhattan in Dallas. And we may not be as modern as we think. One Arts just switched brokers to attract a more traditional buyer, and the Palomar is now a rental.

Have I missed anyoned? The House? Museum Tower? How everything is way overpriced — thank you, Ted Wilson: “… at least 85% is priced over $417,000 putting it into the jumbo loan category…” which means it cannot be cheaply financed. Is not affordable to the demographics who might want to live downtown. And where did these developers get these demographics telling them that people would pay $700,000 for a condo, dish out $1800 a month in HOAs and still have enough left over to shop and dine at restaurants that charge $100 for a steak? 

It makes me want to scream. Stay tuned.

SOS: How Does Arkansas Real Estate Law Cover Meth Homes?

A friend is set to close on a piece of rural property near Eureka, Arkansas, Monday, with a “buy as is” contract sale. This week, the neighbors informed him the home may have been a meth lab. The owner, now deceased, was a paraplegic drug user. My friend has purchased the six odd acres as a country retreat — it holds a trailer home and garage. The agent is representing both the seller and the buyer.  Sellers disclosure statement made no mention of drugs. If it were me, I might do a bit more research on the drugs and possible contamination and ask for a delayed closing.

What do you think?

Update: I just found out it is illegal in 12 states (Arkansas, Arizona, California, Colorado, Idaho, Minnesota, Michigan, Nebraska, North Carolina, Oregon, Tennessee and Washington) for anyone to live in a former meth house before it’s been decontaminated, according to the National Alliance for Model State Drug Laws, a congressionally funded nonprofit that helps states set drug laws.

Dallas Morning News Updates Us On Champ d’Or On Denton County Prairie

Tucked into the Metro section yesterday was an “update” by Scott K. Parks making the astute observation that this week’s uptick in home sales is not much solace to Alan and Shirly Goldfield, the owners of “a very impressive mansion” in Hickory Creek. This property has sure had multiple partners.

Hi Scott, how are you? The uptick in sales this week, very aptly reported by Steve Brown, is happening because people are slashing the prices of homes and buyers are in the drivers’ seat. This is a rebound driven by first-time home buyers, that $8000 tax credit being one of the wiser decisions to come out of D.C. in this financial tsumani. But banks still aren’t lending, and the tough time getting jumbo money is really hurting the higher end home sales. Like getting a mortgage on a $25 million dollar mansion is pretty tough right now. You have to have a really great credit score. It’s just a lot better to have that cash in your bank account.

And Scott, thanks for giving D CEO credit for the cover story on Champs d’Or. That was a great story by a talented writer, Mark Vamos.  I appreciate all the info you got from that story and maybe my 8 blog posts on Champs d’Or. Oh, but you got a bit something wrong in your “What’s New”. Yes, the price has been lowered to $25 million (I thought it was $27.5, but hell, what’s $2.5 million and maybe the Goldfields are getting motivated) but that price includes a smaller spread of land than what was included in the former price of the estate, $65.5 million. But wait, in May of 2008 they were asking $72 million. I so hope they didn’t turn down any offers even within $20 million of that number. I know one seller who kicks himself every single morning because he turned down $7 million cash on a home priced at $9.9 last September.

Finally, I can see where the Goldfield’s would not like to think of their chef d’oeuvre as a tear-down, especially when they built a home across the street to live in while they constructed Champs. But come on, you have to admit –”Biggest Little Teardown In Texas” — cutest little way to describe that spread I’ve ever heard.

Who Is Responsible For Paying Realtor Fees?

A Reader asks:

“Who is responsible for realtor fees?  I was thinking that your advice would be very helpful.   Please help.
I really appreciate your help.”

The buyer of the property really pays for the realtors’ fees in the price of the home. At closing, commissions are taken off the sales price of the home and the seller is funded whatever remains. Sellers in Texas traditionally pay for Title policies, but this is not set in stone. The traditional split is 3% to the buyers agent, 3% to the seller’s agent. How they split the 3% within the brokerage firm is up to the agent and broker to battle out, and splits do vary. The broker usually owns the listings. Correct me if I am wrong. The answer is, I guess, the buyer of the property unless the seller… or a Fairy Godmother… decides to pick up the tab.

Hope this helps. Thanks for asking.

Update: My experts concur, I was wrong: Seller pays.

While You Were Out Of Town, Ctd. Ctd.

While You Were Out Of Town, Ctd.

We are not talking a small tree here.

Every Dallas Homeowner’s Nightmare: While You Were Out Of Town…

That big, beautiful tree in the backyard split and fell on the house. P.S. This is why it is important to be nice to your next door neighbors. Hint hint.

Tree House Debacle In The Park Cities: Maybe Happy Ending?

So Merritt Patterson wrote up the story of a PC man who built his kids a treehouse and even lost a thumb in the process, I think, and the nazis village of UP wants to make him tear it down because it violates code that says treehouses are to be in the backyard only. So she spreads the word, you go girl, next thing you know the story is all over the media world — Good Morning America, LA Times, local TV stations and all. (I hear Ahmadinejad is siding with University Park.) Now does it get to stay? Fabulous work, Merritt!

Did Dallas Miss Out On The World’s Biggest Real Estate Boom?

Wick poses the question over on Frontburner, with this colorful chart. I think we need to keep in mind that the purple line that represents Dallas real estate values is an overall average of everything from Preston Trails to Oak Cliff. There are parts of town –Park Cities, Preston Hollow, Lakewood — that, if graphed, I think would look more like Seattle. Real estate is about as local a story as you can get. And I wish I had bought more real estate in 1999.

Sure Sign That The Real Estate Boom Is Returning

Saw this sign on the back of a pick-up truck while driving. Which can mean only one thing —Baby, it’s back!

First Time Homebuyer: A Work In Progress

Ruth Buzzi Makes Southlake Primary Home

Must be, because Mama says she has sold her Hollywood Hills House.I had heard that Miss Buzzi and her uber loaded hubby Kent Perkins just love Texas and have quite the spread in Southlake. OK, please tell me you remember Ruth Buzzi from Rowan & Martin’s Laugh-In, which I used to watch while in utero. And please tell me you remember Laugh-In.

About That Lot At 4500 Lakeside Drive

That would be Tim Eller’s lot, but I am now told that lot is no longer available. But Tim’s son John Eller has joined the dynamic real estate sales team of Ben Jones at Allie Beth Allman, Ben being the agent who was marketing Tim Eller’s lot.  I’m showing the lot still being in the Eller family name.

Guess Which Industry Is Actually Spending LESS On Lobbying This Year?

The Real Estate industry. Yup, according to David Levinthal’s Capital Eye Blog, lobbying by the industry (not just Realtors) fell 30% as of second quarter, 2009, compared to 2008 when the industry dumped pumped in $22.9 million by June 30, 2008. Down market or not, Real Estate outspent the financial industry, spending $33,574,438
to the financial folks’ $15,566,059.

D Sale Of The Week: Easy In, Easy Out

Balcony over two car garage.

D Sale Of The Week, Ctd.

D Sale Of The Week, Ctd.

Luscious master on the third floor remains away from the maddening crowds should your downstairs “guests” be entertaining.

D Sale Of The Week: Fabulous Uptown FSBO

Here’s what my downsizing friends are telling me: they want to shed the McMansion and live in Uptown in a nice duplex or townhome, with a New York City or Chicago brownstone feel. Well, I have one for you: 4322 Throckmorton, an Oaklawn/Turtlecreek tri-plex for sale by owner (FSBO), 2740 square feet built in 1998. First floor designed as guest, nanny, or mother-in-law suite guaranteed to self-destruct after five days. (Kidding.) . Middle level features study/library, kitchen, formal dining, living area opening to large balcony overlooking garden. Stunning master suite with Imelda Marcos-approved closets on third level with separate sitting room, convertible to nursery if surrogate mother desired. (Kidding.) Master bath has jacuzzi tub and steam shower. In other words, the location, the bells and whistles, two-car garage, everything in the hottest happening area for…  are you ready, smelling salts handy? $637, 170. Why the random price, ask the owner/seller, James Duncan  214-766-9208.  Stay tuned for more photos.

New Jersey Woman Bakes Her Way Out Of Foreclosure

One of the most heartwarming stories I have read in real estate, this story shows true American, can-do grit. I’m hoping her Mortgage Apple Cakes become as famous as Miss Grace Cakes.

Another Use For Twitter:Diss Your Landlord, End Up In Court?

Seems a woman in Chicago got sued after she sent out a tweet claiming her landlord thought it was OK for her to sleep in a moldy apartment. Horizon Group Management in Chicago says that tweet should cost her $50,000 for their pockets to help patch it’s landlord reputation.

Wow. Glad my tenants don’t use Twitter. On the other hand, for anyone who has had to re mediate a building due to mold claims, that four-letter word is no joke. Please let me know if this happens in Big D. And don’t say I gave you any ideas…

Matthew McConaughey Just Spotted In Dave PM’s Office Building

In the lobby , coming down from an apparent pow wow with former President George W. Bush, who is officing at 5950 Berkshire Lane. (Dave Perry-Miller’s office is in suite 100, with a full view of the lobby.) Matthew was wearing faded 501 jeans, a white cotton button down, had a leather satchel tossed  over his shoulder…  just sauntered right through the lobby over there before we could grab any shots.  Or him.

Love Affair With A Driveway

I love this driveway. Found it in Maine, but could be created here as well, now that we have some rain…

Should Mom And Dad “Gift You” With A Down Payment For A Home?

OK, let’s face it: many of us got a little help from mom and dad when we bought our first homes back before zero-down loans. Guess what, it’s 1980 all over again. Tough Love in lending and we are back to ten,  twenty percent down payments,  tough for kids fresh out of school, loaded with education debt, to come up with. No wonder lenders are seeing a surge in kids asking M&D for help with down payments. Keep in mind, the help cannot be a loan and you must document the down payment gift with a “gift letter.” My fave mortgage blog has all the details on the right way to do a gift letter, and will even email you a sample. To satisfy underwriter’s increasingly unsatiable appetites, you’ll need the gift letter, the gift in a cashier’s check, and no co-mingling of funds on deposit. 

This is not new: the tradition at Romanian weddings was to pin money on the bride (a tradition I’d like to revive), that money going to help the couple buy their first home. There are also many ways parents can help their children buy a home without giving them a chunk of cash. For example, we let my daughter and her fiance live with us while they saved up for a down payment. You can also cover the cost of property improvements on the new home once they move in.

Call me Debbie Divorce Downer, but I am a member of the 50% divorce rate generation: what do you do if the marriage doesn’t last? Let’s say you “gift” Johnny and Susie $20,000 for a down payment on a cute M Streets cottage. They split after two years. Texas is a community property state, home is to be sold and equity split. My take: you have just gifted your son-in-law $10,000. Am I correct?

Your Commission Dollars At Work: A Lot Of Dallas Folks Don’t Realize This…

That real estate companies pay big time for those appearances on Good Morning Texas. I saw this on Frontburner and it reminded me: I cannot tell you how many consumers are genuinely shocked when they learn that their realtor/broker paid to be on the show. (Hate to burst your bubble, but doctors pay, too.) Of course, as one publicist told me, no one is as surprised as the realtor/broker who says, can’t you get me on Good Morning Texas? Sure I can, says the publicist, for about $15,000.

If You Get “THE LETTER”, It Means You Have Arrived, They Are Dying To Get In

Yes, “The Letter”. It’s an elegant correspondence from a real estate agent, and it goes something like this: Dear So & So, We are working with a (delightful, dynamic) couple (sometimes called the buyer) who is seeking a home in your area. They are well-qualified cash buyers (read: members of the Lucky Sperm Club) who do not require the sale of another home as a contingency (read: it’s already sold, or daddy can just write a check). They are willing to be flexible with closing or possibly lease-back (to you, but don’t think you can replace those nickle drawer pulls with Home Depot stainless — they’ll snap photos). Please call us at your earliest if you are at all interested.

Oh yeah, this is a good letter to get. Hang onto it — and that’s a good agent out there busting (Gucci) shoe leather trying to find a home for a client.   This is exactly what Allie Beth Allman did for months trying to find a home for former President George and Laura Bush. In fact, that may have been how she found the house on Daria Drive.This is what Kenny Troutt did a few years back when he decided to buy up multiple acres at Inwood and Royal, an area he later sold to Hillwood which is now known as the Creeks of Preston Hollow. (I must tell you that story someday.) Getting the letter means you live in a hot ‘hood where others are dying to move in and you may not have to crump on your asking price too much. In the good old days, you might even have had a few back-up contracts.

We love getting The Letter. Just don’t show it to DCAD.