Lacking many amenities the typical home owner might often consider necessary; water, electricity, and non-ungulate neighbors to name just a few, the Moonscape is not your average suburb. Though for those in search of an existence more in tune with the true elements of life and nature, a remote West Texas vista of rusty hills, desert scree and endless blue sky could be the neighborhood of your dreams.
Exploring an extreme case of self-reliant real estate, the March New York Times article, “A Glow in the West Texas Desert,” presents the fascinating instance of a man’s pioneering, Thoreau-like sojourn to find the perfect home, subsistence and life.
One time New York fashion photographer, John Wells now bears a close resemblance to Dusty of ZZ Top, beard and all. More importantly, he lives a humble but rich lifestyle, off the grid and on his own. The assumed sacrifices one would make for such a bargain in real estate soon become apparent as truly brilliant, inventive, and most of all empowering.
Mr. Wells purchased his 60-acre tract, just 30 miles from the Mexican border for a total of $9,600, with a yearly property tax of $86. He has since succeeded in generating his own electricity, overcoming the harsh desert elements and befriending the local livestock. His story is a testament to the feasibility and astounding affordability of such an unique and rewarding real estate option.
Be sure to check out this enthralling article, as well as some beautiful pictures on The New York Times website.
Archive for March, 2011
The Moonscape: Unique Desert Suburb
Thursday, March 31st, 2011Foreclosures: Redux
Monday, March 28th, 2011
Let’s take a side step away from the “10 Things About Realtors” column to talk a little bit about an emerging trend in the housing industry.
FSBO’s and realtors alike are becoming more and more aware of the vast effect trends can have upon their endeavors in the real estate market. Staying savvy to the latest trends has been shown, especially of lately, to make the difference between success and failure in today’s highly variable market.
One recent trend that has caught many eyes is a growing shift towards banks utilizing the current abundance of foreclosed homes in today’s market, choosing to invest in their remodeling and the possibility that the general consumer will find one of these homes irresistible.
Acquired by banks after a borrower defaults on their mortgage, foreclosed homes are often in disarray and will merely continue to depreciate from neglect. Though, in this growing trend these homes are receiving high-value improvements targeted directly to the everyday buyer. A practice which is projected to be advantageous to the banks undertaking these “makeover” investments, as well as the general home buyer.
In fact, increases in general demand and the sales prices for these revamped homes are expected to have an overall positive effect on the real estate market as a whole. Yet, this new trend may only be treating a symptom of the overall predicament, as it does not prevent lenders from dealing with foreclosed upon homes in the first place. Thankfully, an outfit known as Bank of America has chosen treat this issue at heart, attempting to prevent borrowers from ever struggling with foreclosure at all.
Once the second greatest supplier of reverse mortgages, Bank of America has chosen to no longer offer these unique mortgages. Banks generally operate these mortgages by providing the home buyer must be 62 or older with monthly payments based upon the equity they hold in the home (fair market value of home minus all liens on the property). The bank would then take ownership of the home upon the buyer’s death or decision to move out.
By no longer offering reverse mortgages Bank of America is able to focus more determinately upon traditional mortgages, preventing the black scourge that foreclosed homes represent for the market from the start. So for what it’s worth there’s a much needed glimpse of hope in today’s tumultuous market.
8. Realtors Aren’t Lawyers
Sunday, March 6th, 2011
So you’ve come this far. You’ve made it past the taxing open houses the petty bartering and negotiating to get a price for you house that you think is fair, and now it comes time to sign that contract. Whether you are or aren’t working with a realtor to sell your home (in any capacity) it is imperative that you get all contracts and settlements reviewed by a legal professional. It is a sad day when the buyer finds out that he/she is financially responsible for the month you (as the seller) are still living in the home before the move-in date as a “rental tenant”.
Part of your job as the FSBO is to do the best job you can to ensure that everything runs smoothly. Even though you’re foregoing the use of a real estate professional, you still need to act in kind—as if YOU were the real estate professional—and a very convoluted and difficult part of the real estate transaction comes from the contract signing.
I know I’ve mentioned this before, but it doesn’t hurt to pay a little reminder to why legal counsel is the FSBO’s best friend.
Without being a lawyer, the contract can be a daunting endeavor. Legal jargon was never the strong point of the average citizen and often times there are causes and addenda hidden away within real estate contracts that would go unnoticed without the use of a fine tooth comb.
Who’s going to pay for the leftover furniture? Will the seller be forced to pay the buyer back for the two weeks they remained in the residence? These aspect of the home sale can be left un-discussed and undisclosed in the until someone complains and the other points to a tiny little clause in the contract.
According to www.wwlaw.com one of the main hang-ups in selling a house FSBO is “drafting sales documents to ensure that you comply with all appropriate State laws and protect your rights.” And they’re right. Without the help of actual, certified legal advice, you and your buyer are at the will of the contract. Even if the Buyer’s Agent comes with the contract ready, get it looked over. It could save you thousands of dollars in the end.
There are plenty of legal resources for the FSBO out there, especially online. Don’t let closing be your downfall. Several sites, including Yigdigs.com, offer ways to get assistance from real estate professionals. Other websites, like FreeAdvice, give anyone in the real estate business a huge repository of real estate legal professionals. A simple search is all it takes…
7. Realtors Don’t Like Inspectors (Unless They’re in Cahoots)
Tuesday, March 1st, 2011
I’m going to keep this one short.
Now this may be complete speculation, but I’m going to say it anyways because the internet is free press and as a real estate observer and writer, I feel I’m somewhat justified in my claim, if not completely: realtors sometimes don’t like inspectors (unless they’re in cahoots.)
As I’ve mentioned before, several times, and if you’ve followed this blog at all over the past year and a half, then you’re probably sick of hearing it, but realtors do have a certain code of ethics that they must adhere to, and sometimes they do things that aren’t necessarily in line with their code.
Home inspections are a part of the majority of real estate transactions, and as the frequency of home inspections has increased in recent years, there has been a growing concern of brokerages working with realtor-referred home inspectors. The problem arises in the field of conflicts of interests. In fact, stories have emerged about some realtor agencies actually forcing inspectors to lower their rates in exchange for jobs.
According to a New England-based home inspection service, Applewood Home Inspection, there is a growing concern for this conflict of interests and they proclaim on their website that they are not involved in the growing trend. 1goodhomeinspection.com cites the home inspector as a buyer’s “last line of defense” in order to ensure the validity of a home’s integrity.
“In my experience as an inspector,” one blogger writes from 1goodhomeinspection.com, “the vast majority of referrals come from Realtors. In my not so humble opinion this is significant error in judgment on the part of the buyer. I will say there are a few Realtors out there that do genuinely have their clients’ best interests at heart. This is significantly easier for the Realtor if they are working for the seller, but requires amazing moral fortitude when working as a ‘Buyer’s Agent’.”
So there you have it folks, something to look out for when dealing with realtors and inspectors. The real estate world can be a very strange place sometimes, and the more you know about what to expect the better off you’ll be.
