D

Where Have All The 4% Jumbo’s Gone? Read On

As anyone buying a home over $417,000 in Dallas knows, it is nearly impossible to get a mortgage unless you have 40% in equity (from, hopefully, the sale of your previous home) and near perfect credit. The huge rise in bankruptcies means a lot of folks are not going to be able to secure mortgages for at least five years, which is why so many investors think small to medium-sized rental homes are the best place to park money right now. But I digress. Dan Green over at the Mortgage Reports has some good news about Jumbos in the 4%, from Main Street Banks. These are small banks, banks that did not need a federal bailout, places like Inwood Bank and Frost Bank (and others, feel free to pipe in) who do banking the old-fashioned way: they keep the loans on their books.

Brady Moore Listing To Be On Friday’s TODAY Show

Look at this cutie pie at 4606 West Amherst Ave., two bedrooms, two baths, two living areas, sunroom, a Seaside, WaterColor cottage-y feel to it with numerous updates and pool. No wonder Barbara Corcoran has chosen this little number to feature on Friday’s NBC TODAY Show in her national real estate report. The price? $349,000.  Yes, Briarwood is going to make us look really good to the whole USA.

Dallas Real Estate: 4214 Manning Finally Under Contract

Because I truly believe that homes have souls, I just love it when they finally find a family.  4214 Manning is one of my favorite bittersweet new construction stories out there. The builders were trying to go outside the box, build a unique home with a strong New Orleans-style slant. Might have worked had the market not turned south. And so this lovely southern belle went into foreclosure even with all her bells and whistles. What was it, $3 million, then $2,050,000 and I said I would have gone in at $1.5. I mean, look at this breakfast room!

D Sale of the Week: Creek, Cul de Sac, Koi, $365K

If you lived here, this would be the view from your kitchen window 24/7. I am obsessed with this Waterview neighborhood, in Richardson Heights. Trees, creeks, stone—it’s like a slice of the Hill Country one mile west of Central Expressway, just north of Belt Line Road. I was perusing the cul de sacs in the area and I found this listing for—are you sitting down?—$365,000. Don’t stand up yet: 10 Shadywood Place offers more than one-quarter of an acre, almost fully remodeled—in fact, a new roof is being installed this week—and has five bedrooms and three baths in 2,950 square feet.  Shares this cute lane with just four other homes, and this wooded cul de sac overlooks Cottonwood Creek. Plus this home is adjacent to larger homes backing up to the same creek in chichi nearby Waterview Preservation. Those pups are much pricier, if they come on the market.

This home was built on white rock with bell-bottom piers (not to be confused with bell-bottom pants) in 1969, by its original owners. He was in the building products manufacturing business: door entrances. He sold to Pella Windows, which is every small-company owner’s dream. Thus the owners, who raised their family in this home, had both a keen eye and an “in” for high-quality materials. The exterior doors are solid Andean walnut from Bolivia; the double spiral banister on the front stairway was imported from Sedrina, Italy; the plentiful crown molding is imported from Cremona, Italy—well, you get the picture. The owners also installed an elaborate outdoor lighting system and a new HVAC and hot water heaters in 2007. But last summer they really went to town: scraped hardwoods in the living room, granite counters in the kitchen, new faucets, and new light fixtures. In other words, this home is turnkey. Their pain, your gain. It has been staged by Creative Staging by Design of Dallas, and it will be open this Sunday from 3-5 pm.

Rufus C. Burleson, R.I.P. Our Condolences To Mary Frances

It is with a saddened heart I tell you that Mary Frances Burelson,  President and CEO of the Ebby Halliday Companies, has lost her beloved life mate of more than 55 years, Rufus C. Burleson. Mr. Burleson died in his sleep on November 13 while accompanying his wife to the National Association of Realtors convention in San Diego, CA.  The Dallas native was 77 years old and lived with Mary Frances in Sachse. Our Park Cities People blog reports that both Rufus and Mary Frances attended Highland Park High School. A graduate of Texas Tech with a degree in animal husbandry, Rufus served in the U. S. military and had a successful career in residential home construction. Upon retirement, he and his wife bred championship Boxers at their 11.5 acre kennel. Visitation is at Restland Funeral Home on Thursday, November 19 from 6-8 p.m. Burial will be private at noon on November 20. A memorial service and celebration of Mr. Burleson’s life is scheduled for 2 p.m. Friday at Park Cities Baptist Church, where he was an active member and Deacon . A reception will follow in the Fellowship Hall. Memorial contributions may be made to Buckner International, c/o Jim Huey, Buckner Foundation, 600 N. Pearl St., Ste. 2260, Dallas, 75201 or the American Boxer Charitable Foundation, ABCF Memorial Endowment Fund, P.O. Box 8667, Spokane, WA 99203. Jump for more information which was released by Ebby Halliday late this afternoon:

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Dallas Real Estate: Drexel Park Hollow Auction Results

“The original auction brochure listed 29 units to be open for inspection.  On Saturday, only ten were listed as being offered for sale that day.  I did not ask why so many were excluded.  I presumed that it was because each bidder that went through the registration process in the days prior to the event was asked which units they were interested in – and that the excluded units had insufficient interest during the inspection process.  One other change was that the first two units offered would start with a minimum bid of $295,000 and would be sold to the highest bidder.  The eight remaining units would be sold subject to seller approval of the high bid.  My opinion is that many bidders do not fully understand this provision in that even if they are the high bidder, the seller can come back within a stated time period and say no thanks.  (Editor’s note: the “reserve”.) The brochure clearly states this, but most people think the high bid gets the property.

An interesting feature of the auction was that the Park Hollow units were mixed in with the Craig Ranch properties.  You would have a few homes come up and then a few condos.  It was quite a large crowd that required many additional chairs to be brought in.  It seemed that there were more people interested in the SFR’s (Editor’s note: single family residences) than the condominiums.

I don’t have the one page schedule that listed the exact order of the properties to be sold.  Without it, these results are not particularly meaningful.

The high bid results for the ten condominiums in the order in which they were auctioned:

1 – $310,000 (sold to the high bidder)

2 – $300,000 (sold to the high bidder)

3 – $271,000

4 – $471,000 (penhouse unit)

5 – $468,000

6 – $326,000

7 – $233,000

8 – $251,000

9 – $341,000

10 – $300,000

I did receive a call this week from Kennedy Wilson asking if I was still interested in #4.  This indicates that the seller did not accept the high bid.  I advised them that I thought the auction bid was a lot higher than I was willing to pay to begin with.  I asked if other high bids, besides those on the first two had been accepted.  It was indicated that there were some, but that others had been renegotiated upward before being accepted.  So it appears that in certain cases, being the high bidder only wins you the right to negotiate.”

Reduced For Quick Sale: Sweet Charity’s Dream House

Now that it’s up here on Dallas Dirt, Sweet Charity’s precious Jeanne Prejean may lose this once in a lifetime chance to buy her dream home at a greatly reduced price. I mean, this puppy is on the drastically reduced shelf…  hopefully not a scratch and dent.

9243 Church Road, reduced $150,000 from $650,000 to $425,000. This for 1.49 acres on Church Road, kind of an historic Dallas home. The agent, Briggs Freeman’s Erika Orbin, says the sellers are just really, really motivated.

Update: I’m told the property was recently apraised by veteran appraiser D.W. Skelton for $500,000 but the sellers, savvy business folks, are trying to be realistic given the current market. In my shorthand, that means motivated!

Hey! My Ritz Bedroom Was on KXAS!

I love you guys over at DFW Around Town, KXAS-TV, but really, aren’t you a little late coming to the Ritz party? Been there, done that, and need to tell you how much I wish I were at the Ritz Spa all week today. Or, actually, anywhere near the hotel that was awarded AAA Five Diamond hotel ratings for 2010. We had Supper Club chez nous this weekend, and I have been vacuuming floors, filling and emptying the dishwasher, etc. (I’ve missed my keyboard.) Oh Roberto Van Geenan, where is your wonderful staff when I need you? If you buy one of the last 30 units available at the new Ritz-Carlton Tower Residences, you pick up the phone and order a party and the Ritz even does a white glove clean up. This is interesting to me because — I will probably be kicked out for saying this — but our Supper Club is getting old. Really, not old,  just weary of entertaining so many people. A few members have dropped out and the majority voted to keep the membership down to 18 or 20, only nine dinners per year, not eleven or twelve, because members say it is way hard to entertain so many people. The fact is, many will be downsizing their homes and want more ease and help in party preparation. May I suggest we all buy at the Ritz?

And then you can go to the spa instead of vacuum. (more…)

Dallas Real Estate: This House In Foreclosure, So Let’s Up The Price

Cute little house, no? $179,000, 7530 Caillet Street – that area behind Lovers Lane, bit west of Simon David and the Bird Streets, an area saturated with more renters but one that I predict as a general personal opinion (NOT as a realtor) will flourish with first time homebuyers in the next boom. Not giving any advice here, OK? But get this: the house had been listed for $169,000, goes into foreclosure, they list it for $10k more. What gives?

Update: Oh must tell you I found this listing on the Sawbuck website. You know, the company that got the Dallas Morning News into the real estate biz.

Acres of Astro Turf Invade Preston Hollow

Oh God, think I’m going to be sick. This is the house I wrote about months ago, 8787 Jourdan Way, you pass it on Douglas heading north from Northwest Highway to Walnut Hill. I used to drive carpool on this street. Months ago  Dr. H. Doug Barnes started building a $9,460,500. behemoth stucco Palm Springs-style mansion here, plastering huge, ominous signs all over the place — KEEP OUT! PRIVATE PROPERTY! PROPERTY UNDER SURVEILLANCE!!! And the best: NO PHOTOS, NO CAMERAS (because we might actually want to duplicate this home, yes). So I packed up my dogs one sunny weekend and tried to take them over there for a walk. Was stopped by a huge security guard, a former defensive tackle no doubt. He asked me to leave and leave fast because the owner was on the premises.  Do you know how hard it was to peel myself out of there? I called his office the next day, he never called me back.  I so wanted to ask for a tour and why he was re-creating a Florida hotel in Preston Hollow. Would an ocean soon follow?

Please note: Dr. Barnes, I’m told, did not make his great fortune from doctoring but eyeglass ty-cooning. Here I thought everyone was doing Lasik!

Update: Thanks to the reader who snapped and sent these in — huge hugs! This home was also listed in D Magazine’s Most Expensive Homes issue — surprise, surprise!

That Drexel Park Hollow Auction

OK, I phoned the press liaison for Kennedy Wilson TWICE yesterday, still no word so I will have to go to plan B. Need dark glasses. Stay tuned.

More Hope For A Burgeoning Downtown Dallas

Consumer trends in real estate will be pushed by aging Baby Boomers and their kids, and all signs point to infill, close-in, urban living. Last week I heard there won’t be enough urban housing to accommodate their needs. You won’t hear any more whining out of this gal about overbuilding of downtown condos. Of course, those units have to be affordable: seniors in ten years may have sharply reduced 401ks and may not be able to afford hefty monthly maintenance fees. This reminds me: I ran into the Prescott guys at the ULI and asked if Lake Highlands Town Center was still a go — since many of you have emailed me with that question. Judd Pankey said it most certainly is.

Dallas Real Estate Peeps At The Urban Land Institute

That’s Courtney A. Underwood (and pooch!), Vice President of Asset Management, Underwood Financial, Ltd.

D Sale of the Week: Belmont Beauty, House of Tudor

Fairies, elves, knights in shining armour, I see all this and more in this restored 1931 built Lakewood Heights Tudor that has been restored and remodeled to sustain 21st century living. Yet it has retained the charm of yesteryear, from the exterior brick, roofline, leaded glass windows, moldings and sunroom.  6318 Belmont  is larger than it appears to be,  2703 square feet loaded with four bedrooms, three baths, sun room, large master suite and ginormous closets. And talk about proximity to White Rock Lake — please! This is the Lakewood dream life, biking to White Rock, Whole Foods, footing it to Lakewood Village. Master suite is upstairs with a stunning bath suite. Garage is detached and in back, with an electric gate. The yard: to die for deck and trees. The price: not bad — $479,000. Twist Brett Gray’s arm over at Dave Perry-Miller, but not too hard, please.

Dallas Real Estate News: I Had Lunch With Steve Brown!

It was so much fun: Steve Brown offered his words of wisdom to the Elite 20 Real Estate agents at Bent Tree Country Club Wednesday, and I got to be a fly on the wall. Steve was pretty positive, and said he thinks our market has bottomed out past the worst, which he says was last March, April and May. We could be at the bottom of an “L” pattern or, hopefully, a “V”. He was very encouraged by the Case Shiller report and hopes that by the end of next year we may see some plus signs on our values. Steve is not concerned by the glut in our condo market, either: says condos are now a lifestyle choice, unlike they were in the 80’s. (But those home association fees! Someone recently told him that when you buy a condo, you are buying the the “right” to rent something.) Here’s what concerns him — and me, too: foreclosures — 60,000 for the year. Job losses — 64,000 lost in Texas, and we will have to see if employers step up hiring come next quarter. Buyers are not paying retail, and are in fact treating sellers like their homes are the Dollar Store. This is true: one homeowner told me that a couple from New Jersey came in and offered 40 cents on the dollar for their home. People from other parts of the country are so used to the bargain basement mentality, they don’t get it that our market is not Phoenix. Real Estate bargain hunting is going to be a tough brand to shake. Believe it or not, we will have a dearth of new spec homes in the coming months. We need jumbo credit and we need it now! Oh, and Brad Edgar, who was also at the event, asked him about the DMN’s Sawbuck deal. Said Steve: I don’t think its an issue. All businesses have to diversity and seek incremental sources of revenue. If the real estate market picks up, he said, the DMN’s investment in Sawbuck will be the least of any one’s concerns.

Steve, you are a really great speaker! Sorry I had to rush back to class.

D Sale of the Week: Twin Posts (and Columns) on Twin Post

This is one of those lovely, lazy North Dallas ranches many seek to save from the ’dozer claws. It’s located in a great neighborhood east of Welch Road and north of Forest Lane, and it was built in 1965, when this area was developed. A generous lot—122 by 131—means you can have a pool and some yard. Not too far east and north are scads of builder homes, both spec and custom. Forget about the low ceilings; focus instead on the living, dining, kitchen, vaulted den, and four or five bedrooms—the fifth plus bath located off the kitchen as it is in so many homes of this era, ostensibly designed for household help or in-law visits. (If you put your in-laws near the kitchen, dinner may magically appear!) On the bedroom wing, there’s a Jack and Jill bath between two bedrooms, and one more bedroom has a private bath. Then there’s the master suite, which was designed by Ellen Amador. Set apart from the other sleeping rooms, it features not just a large bedroom but also a sitting room, huge remodeled master with tub and shower, and two walk-in closets. Plus—another reason why this house is so great for the money—there is a study or exercise room off the master that opens to a patio. I think there’s a lot of living packed into 3,679 square feet, and I’d love to see my kids in this home. I also think this might be a perfect empty-nester palace: one floor, with room for grandkids. The kitchen needs new counters, and I’m a big fan of two dishwashers, but the price ($625,000) ain’t too shabby. And just wait until those multiple trunk live oak limbs get TP’d by all the private school kids in the ’hood.

Dallas Real Estate: Grand Prairie Is Smokin’, Everyone Else “Less Bad”

Case-Shiller tells us that Dallas home prices fell at the annual rate of 1.2 % between August ‘08 and August ‘09, which is a smidgen compared to the rest of the world — double digit declines almost everywhere. Only Dallas and Denver are edging closer to positive numbers, our decline at 1.2%, Denver’s 1.9%.

Then ZipRealty (Emeryville, CA) tossed out it’s third quarter report to find this quirk:  Grand Prairie, Texas emerged as one of the top ten “hot” markets in the U.S., a hot market being one where accepted offers come in higher than list price. I had no idea this was happening in Grand Prairie. Further, Texas is a non-disclosure state so I am just baffled and have emailed the company for an explanation.

Help if you are from Grand Prairie — we need a clue!

Ask Candy: What Should I Do About Selling My House?

DallasDirt wants to help buyers and sellers of properties. Home not selling? Should you buy now and can you afford that new home? Questions about a certain ‘hood? Ask Candy and we will enlist the help of an entire city of real estate experts!

Dear Candy:

My house has been on the market now for 95 days with about 30 showings. It’s a sprawling North Dallas ranch, great neighborhood, large lot near Inwood and Royal. I’m told this is a “highly sought after” area. We are considering lowering the asking price from $999,500. Do you think we should? By how much? My husband says we should take it off the market and wait until spring. Do you think this market is going to get any better?

Here’s the feedback we have received: not big enough; too big; yard not visible enough; too much of a “project” at this time, buyers need to sell their Uptown home first, buyers want new construction and less yard, buyers want quarters for their parents, buyers wonder why the walls are so big, buyers want a contemporary, open and updated kitchen. (Does no one remodel homes anymore? We didn’t thinking buyers would want to make their own statement.) Jeesh.

I just don’t know what to do, can you help?

Love, Amy

Dear Amy: Wow, you have had a busy last few months there, that’s a lot of showings. I know your area and it is hot, but this is a buyer’s market. It’s like the ultimate Last Call. In a market like this, buyers can afford to be picky picky and when they do make offers, they are coming in 20% to 40% below asking. Plus there’s still lots of inventory, so if they want new, they can find spec inventory from a builder who’s willing to let go. The biggest problem, I hear, is the out of towners who do not yet understand that our tongues are not hanging out like the sellers in New York, Florida, Phoenix and Nevada. (California is seeing a blip of euphoria, ha!)

Have you staged your home? Offered a remodeling credit for those who have no vision or inclination to redo that kitchen? Home warranty? Maybe fill the counters with ideas of what they could do. Most buyers today want turn-key — they are too busy to mess with a remodel. I’m the exception — I prefer to do it myself.

Take a cue from what you are hearing? Can you make the yard, which is one of your huge plusses, more visible? Can you draw people out there with furniture? Can you offer any perks with purchase — a face-lift for the new owner?

Just kidding.

As for lowering the price, the buyers will probably do that for you — sorry. The problem is this: the experts think interest rates are going to go up, and that kind of noise always gets the buyers off the pot, so to speak. But I am also hearing worries of inflation, which means all our homes will be worth more. Wish I had a crystal ball. Maybe hang in there ’till spring, or let her go for whatever you can without wanting to kill yourself. This administration had better get the credit market for jumbos — $417,000 and above — un-constipated real fast. After all, we bailed them out, right?

Keep us posted…

xo

Dallas Real Estate: Barclays May End Up With Some Morgan Stanley Props

I told you last week that Morgan Stanley was going to have to do some talkin’ on nearly $2 billion in loans from Barclays Capital by November 2 — now Steve Brown tells us that one option may be turning over stake in some of the buildings they owe money on to Barclays outright.

Damn, Steve, you are so good. Can you imagine what would happen if we were a couple?

D Sale of the Week: David Feld’s Southern Comfort

This charming brick and clapboard cottage, designed in 1936 by Charles Dilbeck, is owned by Dallas native and former D Home editor David Feld, who now lives in Connecticut and works in New York. (The house was also featured in D Home.) Every room of the just-under-2,000-square-foot cottage is a designer’s paradise, including the remodeled kitchen with sleek cabinetry, granite countertops, gourmet appliances, and skylight. A beautiful turreted staircase leads to two bedrooms—the master is on the first floor—and one serves as a study with charming views, bookcase-lined wall, and faux fireplace. Among the bells and whistles: hardwood and seagrass floors, cedar-lined closets, sandstone counters in the baths, speakers in every room, large backyard with patio, flagstone terrace, and tended perennial garden. But the real treat with this home is the grounds: 50-year-old pecans and live oaks on a 55-by-117-foot deep lot. List price: $439,000.

A Deason in the House at Briggs-Freeman

That’s Briggs Freeman agent Holly Bock Deason, who just married one of the Deason kids, as in Darwin’s offspring. I was reminded of this when I read our “sista” blog, SweetCharity. Charity and Real Estate always go hand-in-hand…

Potential Abuse From First Time Homebuyer $8K Credit Program?

Apparently, so. The IRS is investigating more than 100,000 suspicious claims for possible abuse of this program that has helped prop the entry level real estate market over the past few months, so says the Wall Street Journal. And as I heard from Ebby Halliday herself last week, the real estate industry is lobbying for an extension of the program. One proposal would stretch the date ’till June, 2010, and also raise the income ceiling on participants:

“One proposal by Sen. Johnny Isakson (R., Ga.) and others to extend the credit and make it available to all home buyers through June 2010 carries a price tag of about $16.7 billion. That proposal would raise the income ceiling for eligible home buyers to $150,000 per year for an individual and $300,000 for a couple. Currently the credit phases out for individuals earning more than $75,000 and married couples earning more than $150,000.”

Of course, there is the usual whining from those who claim this program, as well as the standard mortgage deduction, is nothing more than welfare for the middle and upper classes.

Dallas Realtors tell me the program has helped keep our local market hopping, particularly with affordable homes and in such entry-level neighborhoods as Little Forest Hills and others bordering Lakewood, east of Central.

“The under $300K market is really showing improvement,” said David Brown with MetroStudy. “The biggest weakness is in the $500,000 and up market, because there’s no secondary market for jumbos.”

Sign of the Times: 1.45 Acres, Lennox Lane, Under $1,500,000

That would be 10011 Lennox Lane. OK, so this home is a bit south of Ross and Margot, edges on Walnut Hill Lane, still — you get 1.45 acres of prime dirt, a mid-century modern home that doesn’t have to be scraped and replaced by a 20,000 square foot mansion. And get this price: $1,295,000.

Reminds me of what I was telling my husband the other day: the minute you move in these palaces, the place starts depreciating. All downhill, just like cars. Put the keys in the ignition, turn her on, the dollars start falling before you get out of the parking lot. Structure may decrease in value, but that dirt does nothing but hold hold hold.

So here’s my new theory: we should all live in tents on one acre lots. This place? One fancy pants tent.

Update: My first headline said $1.5K — was just trying to get your attention.

Dallas Real Estate: Why Does Preston Tower Look Like A 1960’s Christmas Tree?

Simple: to make it more appealing to those younger folks who grew up in the 60’s. Karen Lukin, who lives in Preston Tower, tells us:

“I have lived in my building for 11 years. Imagine my surprise to drive up and see that they’ve added uplighting, blue-revolving-to-green, that shines up 30 floors on the sides of the building. Was told it might make our 1960’s high-rise appeal to the “younger folks.”

The 29-story Preston Tower was built in 1966 and was one of Dallas’ very first high rise buildings. Only the very cool need move in.

Looking For Happy Pill Real Estate News? Then Don’t Read This

It’s still not Miller Time, especially once you cross the Red River or head east, west. And guess who’s hurting the most? Folks with homes valued over $500,000 on up to $3,000,000. This Reuters story has it right, and is about the same as what I’ve heard here in Dallas: the big ticket homes are not moving without negotiation IF loans are to be found. Roddy’s Foreclosures reports a 30% increase in postings – remember, that does not mean that all those homes will make it to the court house steps. Many will be re-negotiated prior to the public auction. However, it is not good news that more than 5,000 D/FW homes are threatened with foreclosure.

I also read somewhere this week not to count on rising values in “bottomed-out”  communities where investors are buying up foreclosures: hello Arizona, Florida, Nevada, we are talking about you. Their point: investors don’t get rooted in the community, they may lease homes for cash flow, they are the quick in and out guys. For pricing to get solid, you need jobs and families to move in, become established. No one night stands.

However, maybe one toast: the very best place to be in this mired mess is Texas, according to David Brown, Director of Metrostudy, Dallas/Fort Worth. And guess what: we may actually have a shortage of new construction in the not too distant future.  I’ll have an interview up with him next week, so stay tuned. Also of note: I spoke with Ebby Halliday on Friday, who told me the NAR is doing all they can to extend that $8,000 first time home buyer’s credit. There is no doubt which side of the political aisle Ebby prefers.

“The first-time home buyer credit is the one good thing this administration has done,” said Ebby.