Dear Candy:

We moved into a pier and beam house last year. At the time, we knew it had some small foundation issues thanks to the inspection — a couple rotted sill plates, and a broken beam. A year later, we’ve been reminded that it needs to be fixed, thanks to some new cracking in the bricks and drywall. We’ve gotten quotes from a company to fix it for around $2k.

What I’m wondering, though, is if it’d be worth it to bring in a structural engineer for an independent evaluation. Looks like they typically charge $350 to do a “level B” type inspection. I’ve seen examples of these types of reports, and from what I gather, I can take that report and get bids for the work.

Is this how it really works? Not being an expert, and being a new homeowner, I’m having trouble finding the correct way to proceed here. Help!

I asked if the couple watered the foundation this summer, and they said, um, nay. My first response is to hire the expert and get the bids, but if they are planning on moving in a few years, maybe just fix/replace the sill plates and the beam? While I root around for an expert, what would you say?

Also folks: hang on to those repair receipts so you can show them off when you list the house and the buyer brings in an inspector. Word is buyers are using inspectors to hasten their uber-pickiness these days.

Like, who knew that homes in some blocks of University Park are HPISD but actually in the city of Dallas for services, which means they have lower values?

I know West Highland Park is DISD but Highland Park services. All these little nuances — ask me about them and more on “Ask Candy”.

And now it’s easier than ever to Ask Candy. Look over to the right and see that little box with that black and white photo of me in Mama Cass mode? Click on it and ask away. You can even upload photos.

Thank you to the website geniuses here at D! XOXO

Dear Candy:

I know you are in Dallas, but we desperately need you in California! Besides, this is a Texas-based real estate brokerage you know too well. My mother is trying to sell her home in northern San Diego County. It’s a lovely house in a gated 55+ golf community in the Carlsbad area. The house has been on the market for about 100 days, and we think the problem is because of our real estate agent. We feel we may have the worst agent in the history of the world and would love to get your  opinion on whether we are judging her too harshly. Here’s her M.O.

1.     Our agent advises her listing clients that she does not work on Sundays, Mondays or any evenings and sends this via a written, mailed “work hours” reminder to her clients once a month.

2.     Our agent has been on vacation for 2 ½ weeks, and she is not allowed to be contacted during her travels, even for emergencies. We actually were in escrow to sell Mom’s house during her absence, but the buyer suddenly walked. That was two weeks ago, and we’ve still not heard a peep from our agent. It was a real crisis for us, and we were left hanging. Our agent has had a back-up agent and an office assistant filling in for her during this vacation, but the back-up agent knew nothing and was under strict instructions not to bother our agent during her very important sightseeing vacation.

3.     Earlier on in the listing we had some agent performance issues (no flyers for more than a week after the listing, even though we were then in the MLS, incorrect MLS listing text, etc.), and we told our agent we needed a little better communication from her. She has 12 listings, so she’s not a pro-active communicator. She agreed with us, but then it was another three weeks until we heard from her. When we did hear from her, it was only because she needed a place to store some spare furniture she owns and wanted my mom to move out prematurely so that she (the agent) could personally stage the house. She fancies herself a stager and wants to move into this field.

4.     Our agent has an office assistant (for whom her listing clients are required to pay a $500 surcharge, which our agent says is standard practice these days). We have received special communications relating to the hours this assistant works. We are only to contact her Tuesdays through Fridays between 9 a.m. and 2 p.m. Those are the agent’s formal “office hours.” By the way, the agent works from home, in the same neighborhood where my mother lives, and 55+ claims to be a senior housing specialist.

5.     The sales flyers which the agent created for my mother’s house list her website as a source for more information about the property. However, her website has not worked for four months. When I expressed concern about this, the agent said, “Lots of people work on their websites. You have no right to complain about this!” I ultimately had to insist that the agent put the realtor.com link for the listing on the flyers, which she grudgingly did.

So, Candy, my question is…. At what point can a client fire an agent without incurring legal/commission liability? This listing runs another 2 ½ months, and I don’t think we can tolerate any more of this!

Dear Eager:

This is a great question currently on the minds of many homeowners across the nation.

The good news is the national foreclosure moratorium will have very little impact in Texas.  Texas is a non-judicial state and the foreclosures will most likely begin again here in the next few weeks as the lenders dot the i’s and cross the t’s on their paperwork.

The bigger issues impacting home sales in the Dallas area are three-fold.  First, the federal tax credit that expired earlier this year prompted many buyers to get off the fence and purchase before the deadline.  This frenzied buying has dissipated the current buyer pool.  Secondly, we’re still running across many buyers who can’t qualify for a mortgage due to low credit scores, high debt, or a combination of the two.  This is such a tragedy given the historically low interest rates and affordable housing prices in our area.  And third, unemployment is high, so many would-be buyers are unwilling to part with their money given the widespread job insecurity facing Texas and the nation.

While it’s a great time to purchase a home, it’s not the best time to sell.  What sellers need to keep in mind is that whatever loss they might take on the sale of their home, they will more than make up for on the purchase of a new one.  The savings in interest alone is substantial.  When you combine that with lots of inventory and stable prices, it’s a prime time to buy.  The Dallas Fort Worth metro area is having a fire sale!  If you’re planning to purchase another home after you sell, I would encourage you to take your minor bumps and bruises in sales price and then take full advantage of the current buyer’s market.

How do you think the foreclosure moratorium  will affect sales of non-foreclosure homes currently on the market?

Our starter home (under $150,000) has been listed for a bit over a week and we are seeing very little action. Will the moratorium be good news for us in the short term, or bad?

Thanks!
Eager seller

Dear Eager: Whoa, calm down there. Your home has been listed for over a week. The Dallas average for days-on-market is about six months, or 180 days, which is still better than in many other cities and a good average. So you have a few more weeks to go before we get all worried.

That said, your market has seen better days. (Too bad you did not sell during the First Time Home Buyer’s credit this spring.) Last week, Steve Brown told us that the market hurting the most is lower-end, the value priced homes. The high end market is seeing sales, because sellers are slashing and dashing prices finally, and buyers looking at homes in this price range usually have equity to bring to the table. Some even have cash. Banks are taking 90 days for loan approvals. Said it before, I’ll say it again: the taxpayers bailed them out, but they are not giving it back to us in consumer loans.

What’s got everyone freaked out? A practice known as robo-signing. To process foreclosures quickly, one person in a bank was given the job of signing as many 10,000 foreclosure documents per month, by hand.  There are reports that even hairdressers were hired to do this, without training. Thousands of documents were signed at a time, without even reading them. Regulators are concerned that the banks may have been taking people’s homes without following the proper legal procedures, which could mean the homes were wrongly foreclosed. Forty states’ attorneys general, including Texas,  are investigating, and the federal Comptroller of the Currency and federal attorney general may also get involved in investigating this issue.

But even the experts can’t agree over how this will affect the market. The Wall Street Journal thinks it’s no big deal. New York Times says it is a real big deal. Legal experts say the banks are at risk of being sued for what they did — massive class actions — and they are the ones who will take it on the chin. (I asked my broker about selling any bank stock last week.) It is unlikely that anyone who bought a foreclosed home that was “robo-signed” by a foreclosure mill  will have to get out of the house. There are title policies, after all.

But whoa: last week, 3 of America’s largest title company insurers said that they will not offer title insurance on a number of the homes that may have been involved in this scandal.

If you bought a foreclosure without title insurance, you are — well honestly, not too bright. I’d never buy a dog house without a title policy, you shouldn’t either.

But what you want to know is what we all want to know: how will this affect those of us selling homes that are not foreclosures? After all, Texas is a non-judicial foreclosure state meaning lenders can foreclose without having to go to court. So likely not much robo-signing here.

In a word, lower values.

Experts say in the short term, these foreclosure freezes might cause home prices to stabilize, as the supply of foreclosures for sale start to shrink.

Sell fast.

I think it’s not so great because it’s going to prolong the agony of depreciating home prices or at least keep them flat for a longer period of time. Maybe we’ll even get a triple dip: just about the time the market starts getting healthy, all these foreclosures hit the market and drag down home values.

There is a foreclosure in my neighborhood on the market in my ‘hood for almost $100 per square foot less than the other homes. It ain’t going anywhere. Because that price is so cheapo, it pulls our comps downward. The healthiest thing for this market is to purge the foreclosures — as one observer put it, push the pig through the python.

I’m sure the agents out there will weigh in on this for you, too.

Dear Candy: We are looking for a home, our first home, but here’s the thing: we have no credit score. My husband and I have paid cash for everything ever since we could remember. We don’t even have a bank account. We just never wanted to get started with all that debt and the temptation of wanting to buy more. Sometimes, I have to admit, it’s a little boring, but we sleep so well at night knowing we owe no money to anyone. That to me is worth the trade-off. We do buy stuff, but we save up for it — usually by the time we have the cash it’s on sale! Do mortgage companies like this? Can you help?

I am truly impressed. We ought to make a Reality TV show about this called “Paying Cash”. One question: how do you live without airline miles and… how do you always manage to have cash on hand?

I hate to tell you this, but you have to roll up your sleeves and get in debt. (I’ll be glad to help. Some Louboutins are calling me.) You have to build a credit history and that can be done in a few simple steps:

1. Find all the bills that you pay at least quarterly. Examples include auto insurance, cell phone bill,  insurance, cable, Internet, rent, medical insurance. (You pay cash for all of these?)  Any bill that you pay every month or at least quarterly will qualify.

2. Now go get a checking account, on-line is OK. (You do have a computer, don’t you? Did you pay cash for that, too?) Pay these bills using a check or by setting up an automatic bill payment through your bank. You are creating a record of payment history.

3. Always make those payments on time and though you are a neophyte to banking, do not bounce any checks or allow your account to go negative. Watch too for bank fees that will eat up your balance.

4. After 12 months, collect your bank statements. That’s a documented report of your credit history. Congrats — you pay your bills! The mortgage companies should welcome you with open arms and flowers!

You could, of course, open up a credit card account, charge a little each month, and pay it off in full. I really like the cards with the on-line banking like USAA, where you can set up auto payments so you are never late. Also try to find a credit card that does not charge annual fees — those just aggravate me.

Now I hate to break it to you, but you will not be able to pay cash for your home unless you’ve got a tap on the Barnett Shale. Even then, I’d advise against it. You will need this bank account to make the house payments.And don’t forget to keep records for your income taxes.

You are super great kids. If you’d like to write a guest post on how you have survived on all cash, no credit thus far, I’d welcome it! At least you are not contributing to Stephen Trauber’s $30 million dollar pay package at Citi — wish I weren’t, either.

Dear Candy: I have lived in Uptown for more than two years but recently started house-hunting. Lakewood was the front runner, but now my girlfriend is pushing me in the direction of Bluffview. I like the Lakewood area –great restaurants, bars and proximity to Central Market — harsh criteria, I know, but am concerned with the price per square foot there.

But the GF REALLY likes Bluffview. Says it is classier than Lakewood. Does it have a future? How are the schools? And why the hell is it called “Bluffview”?

Cannot decide, please help. Thanks!

Well well, now that’s a tough choice! Lakewood and Bluffview are almost topographical mirrors of each other — though Bachman Lake is no White Rock Lake.

And I’m also worried about this GF. Is she going to want to be a Parkie next?

That said, I LOVE Bluffview, so named because of the bluffs overlooking Bachman Lake. With actual views. Granted, sometimes those views are not so hot.  Bachman has gotten way better than ten years ago when my daughter was in high school rowing crew there. The crew team could never jog around the lake — too dangerous. And we once stepped over a handcuffed man at 7-11 while we bought Slurpees.  Again,  Bachman is now on the mend.

You’ve got the great intersection of Northwest Highway and Midway, Preston Center further east, all of Lovers Lane, and Love Field a ten minute drive. Don’t forget that in what, 2014, we are actually going to be able to use Love Field for more than a quick trip to Austin. Bluffview (west of Inwood) is getting a lot of attention from empty nesters selling homes right now and wanting sweet, downsized Dallas cottages with topography and trees.

Checking the average price per square foot in 75214,  I’m showing an average home price of  $497,104, average price per square foot of $196 with 128 days on the market. In zip code 75209 — this will be skewed as it will include some of the Bluffview area mansions — I found an average price of $652,338, average price per square foot of  $251 and 149 days on the market. But again, this zip code is not as homogeneous as 75214. I looked at one year of sales.

You might be thinking of Shorecrest, a great greened-up area west of Bluffview.

But Lakewood! Tends to be a younger population, and many attorneys cluster there. There is Central Market (take a walker) and lower Greenville and great elementary schools. In fact, if you plan on having kids, you may want to compare Bluffview elementary schools versus Lakewood.

Of course I want our nation to help answer this, but my gut says go with your gut. Where do you feel more at home? Which area is closer to work? Where will you feel like hanging after work, on weekend? I find that young buyers often like to stay in their comfort zone, near places that have a familiar feel whether they grew up in that place or not. And there is nothing wrong with that.

Question: why did you not take advantage of the home-buyer’s credit?

Two for one today — because I have been in and out of town and cannot remember if I posted any questions last week–

Today’s “Ask Candy” sounds like my neighbor — sure you didn’t mean it was Lakewood?

This “neighbor” seems to be selling off all of his furniture and personal property in the form of a yard sale every weekend.  All day, Saturday and Sunday, he puts his junk out on the driveway with a sign indicating that “everything must go, all offers considered!”  Apparently all offers have not been good enough because he’s out there every weekend (with the same sign…)  Now I usually am at work during the week, but I came back from vacation last Thursday at noon – and my “neighbor” is out there during the week as well.  Same sign, same junk – apparently this is his full time job.  Isn’t there a city ordinance against this type of thing?  I know times are tight, but if he’s trying to sell his stuff on a daily basis, doesn’t that constitute a business (and require a license)?  Is there anyone I can call in the city to check this out?   Lakewood Lil.

Well, Lil, does sound like the guy is out of a job. Let’s see what the community here says but tell me — is there anything good in his sale? Like, what street in Lakewood?

Dear Candy: We are living a dirty little secret here in the Park Cities. We can no longer afford our home. We bought when the market was really hot in 2007 because my husband had received a job promotion and was making a lot of money. We also bought a second home property because we thought those were good, solid investments. (What’s even worse is I am having to hide my identity because my husband is in private wealth management — he advises people on how to make and maximize money, when all he’s done is lose ours! In fact, one of his clients developed the second home property.) But recently our cash-flow was cut in half, our portfolio is so depressing I can’t even look at it, and I have about $10 left each month after paying the mortgage and groceries. I recently had a high-profile realtor here for a market analysis: our home is worth less today than what we paid for it. Even worse, it’s worth less than what we owe the bank. I’ve been reading about strategic defaults and think we may have to go that route or worse — foreclosure. But honestly, I will die from the shame. What do I tell the kids? No summer vacation this year about killed them — they went to their grandparents’ house. I know this sounds trivial, but I haven’t had a massage in months, I am doing my own manicures and have given up my personal trainer. I’ll even go back to work, if necessary, but when you figure the taxes and nanny, my husband says it will probably cost us money for me to work.

I love my house, but I’m not sure it’s worth the financial drain. Do you have any advice at all? I’d go beg my doctor for anti-depressants but guess what? Cannot afford them.

Wowsers. So sorry to hear this. When I read that 11.2 million American borrowers are underwater on their mortgages — that is 19% of all mortgage holders, by the way — I never stop and translate exactly what that means. It means no money sitting around to save for a rainy day or enhance life. It means you are a slave to your home. Is there a way out? Perhaps. It’s called a short sale. Or, what I call it, Something’s Got To Give and Everyone Takes a Hit.  The lender has to agree to take less than what is owed — hit for the bank. The homeowner agrees to sell the home for less than what they paid for it — hit for the seller. Then a short sale specialist Realtor negotiates dissolving that outstanding balance, kind of like negative negotiation.

What’s so good about this? Your credit rating stays intact. A foreclosure can constipate your credit rating for up to seven years. With a short sale, it’s a two-year blip, not much more chastisement than a series of late payments. But beware: I’ve heard there are a lot of charlatans out there peddling short sales.

What’s in it for the lender: They take a hit, of course, but a short sale is far less costly to lenders than is a foreclosure. And the government is currently offering a $3000 subsidy to mortgage lenders to encourage short sales and even $1,500 in relocation assistance for the Seller.

I don’t know if this would work for you, but it sounds like you’ve got to get out of that house — or both homes. I still think second homes are a great long-term investment for families as future family gathering places but certainly not if you cannot even afford a manicure!

Dear Candy:

I know you’re not a huge fan of HOAs so I think I know what your answer will be to this question, but can you post this question on your blog?
I live in a medium size condo complex.  It’s pretty well managed.  I recently learned that our Board gave our property manager (who does not  office on the property and is here infrequently) a 25k bonus.   They also are generous with bonuses to the 2 maintenance guys including buying a truck for one of them.  Is this typical? A 25k bonus seems really outrageous to me?  I don’t think there was any mention of this in any of the board meeting minutes. It seems like they were keeping this fairly quiet.   One of our CPA residents noticed it on the balance sheet.  Shouldn’t the residents be able to vote on something like this?  Thanks!

Wowsers. Something’s rotten in Denmark, don’t you think?

Help — my husband and I both office at home, and now our house is on the market for a serious sale. How can we keep it neat and tidy for showings when we need to work everyday? We need to show the space because it is a third bedroom, but keeping it together is just impossible — we have two kids and hundreds of emails, well, you know the drill. Any suggestions would be most welcome. Thanks!

I feel ashamed even posting this question because I have the very same problem: my office is a shambles. The shoemaker’s kid always goes barefoot, right? But my house is not on the market. If it were, I’d be in trouble. I welcome suggestions from the DallasDirt nation on this — and am thinking, should you get a temp office space just while you sell your home?

Dear Candy: We moved to the suburbs of Dallas years ago to give our kids the benefit of good public schools. Now they are grown and out of college, and no longer home except to mooch a free meal. (Who can blame them, I love to cook?) We want to move back into the city, be closer to the hub and the medical facilities, but do not want to buy a condominium downtown. We’d like a small yard. Where do you (or your nation of readers) suggest we plant our nest for the next chapter of our life? Price range — knew you’d ask: $500,000 max. Thanks!

Now that’s a tough one. Devonshire? Little Forest Hills? Forest Hills? Baby Bluffview? Midway/Royal? Kessler and Stevens Park are right near Methodist Hospital. What do you guys think???

Dear Candy:

Why have appraisers have not adapted to the massive movement towards energy efficiency. Indeed, they ignore it.
While the federal government has funded major initiatives to modify existing homes and to provide information on energy efficiency, the MLS and the appraisal industry ignores the significant value added to homes by implementing energy efficiency measures.
Our electric bills in the summer are less than half those of our neighbors as a result of a magnitude of modifications that we have installed.
When one seeks to take advantage of the lowest ever current interest rates to refinance and lock in these rates, the less-than-impressive appraisal types fail to see value in these improvements and they make the statement: “the banks don’t care about that stuff”.
I suggest that of the tsunami of repos that the banks find on their hands, the most unsalable will be those with no trees and no energy efficiency modifications.

Thank you.

Good question, now how do we answer it?

Dear Candy: First of all I love all your posts.  You are both informative and entertaining.  I have a question for you that I was hoping you would maybe post to get some other opinions as well.  Where is the best place to take courses to get a real estate license for Texas (for a college graduate).  Is it best to do online courses, books, in person?   I appreciate your help!!

I took courses at a local real estate school that was excellent. At first, I was a bad student, checking my phone for emails and comments until the instructors told me to stop. It worked for me to focus on the material once I put my phone away. I thoroughly enjoyed the camaraderie of the students and met some wonderful people. Plus, if you don’t understand a point you have a live instructor to clarify and offer memory tricks: How big is an acre? Four men in a car going down 35 at 60 miles per hour. So I vote for school. Others tell me on-line courses work very well. Maybe our community can offer some insight on the pros and cons of each — please have at it!

PS: Thank you!

Dear Candy: I am new to Dallas and I was driving down Swiss Avenue today and fell in love. These are gorgeous homes! But you venture a few blocks out and — ick. Kind of scary. I think Swiss Avenue homes are way prettier than Highland Park homes, but I understand they have not retained their value over the years. What’s the story with this hood? How did it go from rich to poor — well, poor surrounding it? Do you think it will ever come back? Thanks!

Swiss Avenue went from gentrification to un-gentrification, then back again. From utopia to dystopia, and now portions may very well be some homeowner’s nirvana. But what caused it to do that? Schools? Highways? I’ve often heard it was lack of zoning that allowed tire places and icky garages to spring up right next to mega-homes, like this one. But help, I sure need the experts to weigh in on this one!

Update: here’s a scary thought — would an HOA have helped the surrounding area?