Entries for the 'Assessing the Local Market' Category
With Texas Hills Come Valleys, Rivers (& Flooding): How to Handle Flood Plain Issues
May 18th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Resourcing, Real Estate Stats & Issues
Beautiful Creek View in the Hill Country (available with Cabin www.hillcountryvacationrental.com)
The Texas Hill Country is full of beautiful hills, valleys, rivers, and creeks (like the one pictured to the left).
You’d think that every one moving to the Hill Country would want something like that. Beautiful, Live water! Ahhhhh…. You can almost feel your blood pressure falling, can’t you?
Well … Maybe. Maybe not! For some it might actually increase their blood pressure. So .. it just depends!
As with many things in life, with every plus, there is a minus and with live water comes the possibility of flooding. You just have to weigh the good with the bad and determine if it is right for you!
I had someone call me not too long and say that they wanted a live water property that was not in the flood plain. Kindof a problem, you think?
In some places, especially here in Comfort, a very large portion of the community is in the flood plain. The river and creek that caused the original settlers to settle there also caused those settlers much difficulty through the years. In fact, Comfort’s “main” street (e.g., the place where the majority of the town’s businesses are located) is now “High Street” because businesses relocated to “higher” ground after numerous floods.
So .. for many properties in the Hill Country, including properties in Kerrville, Bandera, Center Point, Fredericksburg, etc., you will have to weigh flood insurance into the overall budget.
When faced with flood plain issues, one term can be especially confusing.
100-Year Flood – The term 100-year flood is misleading. It is not the flood that will occur once every 100 years. Rather, it is the flood that has a one percent chance of being equaled or exceeded in any given year. Thus, the 100-year flood could occur more than once in a relatively short period of time. The 100-year flood is also known as the base flood or 1 percent annual flood.
So, how do you know whether the property you are looking at is in the floodplain? You will want to locate the the Flood Insurance Rate Map (FIRM) for your area. Here is a portion of Comfort, Texas (Panel 90 in Kendall County):
Flood Insurance Map for Comfort, Texas
What you will notice is that there are different zones shown as wells as various numbers. For areas in the Hill Country, you will be concerned with Zones A & B. Zone B is considered to be in the “flood fringe area” (e.g., the risk of flooding is less than 1%; however, still a possibility). Many mortgage companies still require coverage for properties in Zone B.
Zone A is definitely in the high risk portion of the flood plain. Often, Zone A will be broken down into subareas ranging from Zone A-1 to Zone A-30. If your property is in a Zone A area, you will definitely need flood insurance and the Flood Insurance Rate Map will tell your insurance agent how to price your premium. Flood insurance premiums are federally regulated. Often, individuals and lenders will ask for a Flood Insurance Certificate in order to better define the risk of flooding and can help save in premiums.
A Flood Insurance Certificate is prepared by a surveyor who certifies the Base Flood Elevation (BFE) that the property is in, the Lowest Floor Elevation(LFE), and the Lowest Adjacent Grade (LAG).
Base Flood Elevation (BFE) – The Base Flood Elevation is the height of the base flood, usually in feet, in relation to the National Geodetic Vertical Datum of 1929, the North American Vertical Datum of 1988, or other datum referenced in the Flood Insurance Study report, or average depth of the base flood, usually in feet, above the ground surface.
The other two terms, LFE and LAG give perspective as to where the house is relative to the BFE. If it is above the BFE, insurance rates could be less than standard FIRM rates. If the house is at or below the BFE, the insurance rates likely will remain at the FIRM rates.
Whether your house was built (or substantially improved) prior to the community’s first Flood Insurance Rate Map (FIRM) or not will factor into how much you pay in flood insurance premiums. Ask your insurance agent.
For other terms related to flood plain, go to:
Or if you would like information on a specific area or property, we’d love to help you. You can draw on our expertise of Hill Country real estate and the dynamics related to it.
We’d love to be your Hill Country Home & Ranch Team! 830-995-2511.
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Local Hill Country Property Tax Rates for 2008
May 8th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Resourcing, Real Estate Stats & Issues
Here’s a compilation of 2008 property tax rates in the Hill Country area (prepared to the best of my ability based on information provided from local county appraisal districts):
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Seasonal Fruits and Vegetables Can Be Found at Local Farmers’ Markets – Kendall County, Texas
April 3rd, 2009 categories: About the Local Market, Assessing the Local Market, Places to Go & Things to Do, Real Estate Stats & Issues, Relocating to the Hill Country
If you are looking for fresh fruit, vegetables, baked goods or other homemade products in Kendall County, check out our local farmers’ markets:
The Comfort Area Farmers’ Market is open on Saturdays (beginning April 4) at 7:30 a.m. until 12:00 Noon (or until sold out) in the Comfort Park. They have seasonal vegetables, baked goods, fresh eggs, plants, herbs, jellies, preserves, homemade soap and crafts.
Boerne Farmers Market is open on Wednesdays (April 8 to November 18) from 2 to 6p.m. at the Kendall County Fairgrounds. They have fresh vegetables, peaches, local pecans, honey, eggs, brick-oven baked breads,plants, canned fruits and vegetables, aromatherapy and other fresh seasonal products.
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THE MORTGAGE CRISIS DRAMA: What Really Happened?
March 20th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Resourcing, Real Estate Stats & Issues
If you are still trying to figure out what caused the Mortgage Bailout, 
check out the Frontline program, “Inside the Meltdown.” It is extremely informative and gives a full chronology of all the events that led up to the bailout.
Click Here to view the program.
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MARKET DATA FOR COMFORT TEXAS: February was a good month!
March 6th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Stats & Issues
Real estate sales in Comfort, Texas during February were stronger than last year’s figures. There were 3 sales totaling just under $1.4 million which compares with 6 sales totaling just under $1.2 million during February 2008.
Two of the 3 sales were properties greater than 25 acres. In a rural area such as Comfort, properties with large acreages generally make up a large portion of the overall sales figures. Hopefully last month’s results indicates a change in the trend as sales of large acreages were off during most of 2008.
We are generally optimistic about Comfort for 2009. Several new “tourist destinations” are expected to make their home in the Comfort area … which should help the overall economy and the appeal of the area. Also, we believe the trend toward “small town” living will continue. Many people believe that Comfort is the first “true” small town in the Hill Country outside of San Antonio … so it has great appeal to those looking for that quaint, “All American”, small town feel.
The Hill Country is a great place to live … So, if Comfort is what you’re looking for, give us a call. We’d love to help you find your “Hill Country Dream Home.”
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PRICEY HOME SALES IN BOERNE CONTRIBUTED TO STELLAR SALES FIGURES FOR JANUARY & FEBRUARY
March 5th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Stats & Issues
Four home sales totaling $7.1 Million contributed to better than average sales figures for the Boerne area during the months of January and February. One might actually use the word, “STELLAR” if comparing these statistics with the national market .
All in all, there were a total of 40 sales that amounted to $17 Million during the months of January and February as compared with 59 sales totalling $18.7 Million during the same time period the previous year.
Based on these figures, it appears that the Boerne market may be on the road to recovery. Good news for anyone that has been sitting on the fence waiting for the market to recover before placing their home on the market. If that’s you, give us a call and we’d be happy to give you a free market analysis for your home.
And, if you are interested in buying in the Boerne area, we’d love to represent you. Our number is 830-995-2511.
Our encouragement to you in this market: Get good advice! Move in peace! Live in Freedom!
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LOOKING FOR REHAB INVESTOR – $20K Cash + 680 Credit Score
March 5th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Resourcing, Real Estate Stats & Issues
I picked up a brochure the other day from a mortgage company catering to Re-Hab Investors. The terms are as follows:
They will fund the purchase price, all rehab costs and closing costs SO LONG AS all of those costs don’t exceed 75% of the final appraised value. There are 2 appraisals done – One at the Purchase and One at the time of the Take Out Loan.
Pre-qualification is for both the Re-Hab Loan and the Take-out Loan (permanent financing once repairs are done). To be eligible for the Re-Hab portion of the loan, you must have at least $20,000 in available cash assets and a 680 Credit Score. The Permanent Loan generally follows FNMA guidelines.
You are your own contractor and up to three draws can be taken during the 90 day Re-Hab period.
Obviously, I am not guaranteeing these terms as this is the information that I was told from the loan officer … but thought I’d pass it on as good information. For more information, email and I will give you the referral.
We have a listing that would be great for this type of loan. To see it, Click Here.
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The Kerrville Real Estate Market Faring Much Like Wall Street
March 4th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Stats & Issues
On Monday, the Dow Jones industrial average fell to 6,763 — the lowest close for the Dow since April, 1997. The 300-point drop Monday leaves the index more than 52 percent below its record high of 14,164.53 set in October 2007.
The Texas Hill Country real estate market, while still doing better than the national market, is experiencing a similar decline as that of Wall Street. Kerrville, Texas Real Estate Sales in January & February 2009 totaled just $7.67 million, equivalent to just 46.7% of last year’s sales.
It is commonly understood that in an unstable environment, “Big Ticket Items” get hit the worste. People delay purchases … especially big ones until they feel more certain about the future. Real Estate certainly is one of the “Big Ticket Items” that is suffering in the current economic environment.
What will it take to create a more certain future? I imagine just time. In our opinion, the real estate market, like the stock market, was due a “correction.” People get caught up in the frenzy and make unwise decisions … not based on fundamentals. The good side to a correction is people start making sensible decisions about how they spend their money. And, the ones that don’t OVERREACT can seize opportunities. When the market is down, deals can be found more easily!
The good news is that, historically, real estate has been one of the best places to invest money in uncertain times. Real estate is a “real” asset … meaning it is a tangible, real asset … It can’t be taken away … It’s not just on paper!
We believe that it is time for many who have lost money in the stock market to consider investing in real estate.
The Texas Hill Country is still one of the best places in the country to invest. Tourism and retail sales are still strong.
Our encouragement to you is: Live fully and yet wisely! And keep the long term perspective!
We’d love to help you find your Hill Country dream home! Give us a call at 830-995-2511.
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REAL ESTATE SALES – ARE WE PAYING TOO CLOSE ATTENTION TO THE WAY SALES “BOB UP AND DOWN”? FREDERICKSBURG TEXAS JANUARY & FEBRUARY 2009 RESULTS
March 4th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Stats & Issues
President Barack Obama said on Tuesday that paying too close attention to how Wall Street “bobs up and down” could lead to bad long-term policy. “What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability of the United States … to regain its footing.”
The same may be true when looking at real estate sales in Fredericksburg, Texas which were WAY down in January and February … just 33% of the previous year’s figures*. Sounds horrible? Should you run from this market?
It would seem to be a paradox … but Fredericksburg actually is thriving this year!
Pass through the town any day of the week, especially on weekends and you’ll see a city that is booming. Tourists galore!
Doesn’t quite fit with the real estate numbers? Well, go figure!
What we are hearing from the retailers in Fredericksburg is that sales are up! More people! And they’re still spending!
What’s happening is that, instead of taking trips to Europe, the Carribean, and other exotic places, people in Texas are taking small trips within the state … and Fredericksburg, still characterized by its German heritage, is a huge draw to the local tourists. Close to Austin, within driving distance of Dallas and Houston, and “smack dab in the middle of the Texas Hill Country,” people are taking weekend and extended visits to the Fredericksburg area.
Our feeling is that many of those tourists will take note of this quaint Texas town and, once optimism returns, will resume real estate purchases there.
Given that outlook, right now would be a prime opportunity to get into this market. Buyers are getting better deals than they have been in a long time! Give us a call if this interests you. We’d love to help you find your Hill Country dream home or ranch.
Our encouragement to you: Live life fully and yet wisely! And keep a long term perspective!
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*Also, keep in mind that a large portion of Fredericksburg real estate sales are large acreages and ranches. Just a few ranch sales can make up a large portion of the overall sales figures and a decrease in the number of ranch sales can make the picture look worse than it actually is.
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“Texas is somewhat insulated from the nation’s economic problems” – Per Texas Comptroller
February 27th, 2009 categories: About the Local Market, Assessing the Local Market, Real Estate Stats & Issues
Here’s an interesting article posted by the West Kerr Current:
Texas Economy in Better Shape Than Most States’, says State Comptroller
By Clint SchroederWest Kerr Current
Texas Comptroller Susan Combs told a group of Kerr County residents Friday that Texas is in far better economic shape than most states, but won’t come through the current crisis completely unscathed.
Combs, speaking at the YO Ranch Resort Hotel and Conference Center in Kerrville, made her case.
“Texas is honestly, truly different, and I’m not being a Pollyanna,” she said.
Combs said the state diversified its economy after the crisis in the oil and gas industry here in the early to mid-1980s.
“We lost a couple of hundred thousand jobs and we had had overpriced housing, we had a housing bubble,” she said. “We went through all of that, and I think basically everybody said, ‘Never again!’
“Our state now is the second most diverse by economic measures in the country, second to California, and we are more diverse as an economy than Canada or Mexico,” she said.
As a result, Texas is somewhat insulated from the nation’s economic problems.
“I kind of like to say if the country is having pneumonia, we may have a case of the sniffles but we are not going to be in deep trouble,” Combs said.
She pointed out that Texas never got the overheated housing prices and didn’t get into subprime mortgages.
“We did not get crazy, and our community banks by and large have been absolute stalwarts,” she said. “They have done well, obeyed the rules.”
About one of 1,200 homes in Texas face foreclosure, she said, compared to one in 76 in Nevada or one in 200 in Florida.
“It’s all absolutely attributable to their nutty, insane housing prices. We have not done that,” she said.
Combs also said sales taxes have been a “rocket ship,” with 12 percent increases in recent years, sliding to 10.9 percent and last year to 6 percent. She is projecting 2.9 percent for the next biennium.
“You’re going to see sales tax increases decline,” she said. “People just aren’t going to be shopping as much. If you are in a somewhat struggling small sales business, it may be tough for you.”
High-end food enterprises will have a tougher time, she said, and people will move to general merchandise instead of specialty stores.
She also noted the state has lost jobs, about 27,000 in December, an abrupt change from creating 10,000 jobs a month — and that after generally creating 20,000 new jobs a month.
“I expect us to see a tough job time in Texas through the first two quarters of the year, which will take us through June, leveling out July-August, then picking back up again,” she said.
Combs said job losses could come in construction, which has slowed down both in residential and commercial sectors. Dallas could be hit in the financial sector, and Austin in high tech.
“I think it’s going to be relatively shallow in scope and relatively short-lived duration,” Combs said. “I know some people have already experienced some trouble starting two or three months ago, but the state of our economy is nonetheless so robust.”
She added that Texas is doing better than other places because, “We’re smarter. Unlike other states, we don’t think you can get something for nothing. We are really well grounded in standard economics.”
Combs credited legislators with the state government being in good financial shape.
“Your state government did not get nuts,” she said. “Your state government did not go on a spending spree. Your state government did not encumber all of your future assets, so that’s been very, very important to the state.”
She said the state has about $2 billion in surplus funds available, $3 billion in the property tax relief fund and $6.7 billion in “rainy day funds” from the oil and gas severance tax established in the 1980s.
“I don’t know what they’ll (legislators) do, but they’re not going to be a California where they can’t pay their bills,” she said, adding the state doesn’t allow deficit spending.
“I want to commend them for their consistently conservative view,” she said.
Combs also called attention to new information available on the comptroller’s office website. One called “Where the Money Goes” details where every state dollar is spent and which is refreshed every 24 hours.
There also is TxSmartBuy.com, a site where local and state governments can make purchases using the state’s buying power to obtain the best value.
“We want to make it easy for all the engines of taxpayer money to be the most efficiently spent,” she said.
Kerr County Judge Pat Tinley introduced Combs, who is from a West Texas ranching family. She was educated at Vassar, spent time on Wall Street, and earned a law degree from the University of Texas.
She served in the Texas House for two terms, working on property rights legislation, was an assistant district attorney in Dallas County, took office in 1998 as Texas agriculture commissioner and was elected Texas comptroller in 2006.
If you are looking to relocate and wanted to know where to move, there you have it! We’d love to help you find your Hill Country home! Give us a call 830-995-2511.
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