Houston Real Estate

Tonight as I sit here and ponder what I just saw on our late night news, I am just floored of what I just listened to.  I am actually sickened on what I saw.  Not that the news ever really gives me anything to feel good about, but this in my mind is just wrong.

The local news channel, KHOU, Houston’s CBS affiliated station reported that many of our largest energy companies are getting thousands, even millions of dollars of savings each year in their ad volorum taxes here in Texas.  Why this is happening?  They are placing livestock on their land that they own to take advantage of tax savings that farmers are able to get.

This tax savings is given to farmers who have land that my not be producing enough income to pay their property taxes.  Instead of paying on the market value of the land, they pay on a special agriculture valuation.  Now it seems that the large energy giants have been taking advantage of this loophole.

Typically, I am a supporter of the energy companies.  I was born in raised in a community that is supported by the energy companies.  I even will only get certain brand name gas, because I know where it is produced.  However, this is just wrong and needs to be corrected.

Why this gets my attention?  I am not an expert in taxation, but there are thousands of landowners out there who are loosing their homes because of the mortgage crisis.  Many each year loose their homes because of they are not able to keep up with their taxes.  Ad volorum taxes are going up each year in Texas because of all of the new residents moving to Texas from other states.  School districts are declining because they can’t keep up with the high enrollments.  Cities are seeing their infrastructure decline because of the burden on their systems; so they are raising taxes.  If they had this extra income from these multi-billion dollar energy companies, this could possibly help with the Texas Education issues that faces our legislators every session.  This could help reduce taxes in these cities and reduce the burden on the aging infrastructure. 

Now how do we as real estate agents handle this situation?  We are out there selling commercial and residential properties in these areas that the school districts could be improved.  We have property owners that carry the burden with high tax rates to support the communities.  The very people that are affected by this are our clients.  I just find this interesting and would like to know what other real estate agents think about this issue?

For the record, in no way would I want to remove this tax, because I want to help the Texas farmers in anyway that I can.  They provide the very basic needs of America, and I want to stand by them 100%.  However, these large energy giants who are taken advantage of our farmers, our clients, our communities need to be stopped.  Let’s put this money back into our communities, back to our clients, back to Texas.  Visit KHOU’s website and read the report, http://www.khou.com/topstories/stories/khou071018_tj_agexempt.18306e133.html.

Texas voters will cast their vote for Proposition 6 on November 6, to amend the Texas Constitution that Texas Lawmakers passed with HB1022 in the pass legislative session.

This amendment will keep County Tax Assessor/Collectors from  collecting ad volorum taxes on independant contractors who use their personal vehicles for work purposes. 

Are you kidding me?  Has this really been going on?  The local governments have been putting a tax on hard-working contractors trying to provide a living for their families?  Up to $600 per year could be taken away from these workers. 

Some of these workers need every bit of their money that they earn.  Gas prices and insurance cost are high!  I don’t see this going down anytime soon!

These are just some of the workers that this un-fair tax would affect:

• Independent Real Estate Agents (MOST OF US)
• Contract nurses who do home visits
• Independent landscapers who transport equipment
• Independent plumbers, electricians, carpenters, handymen and others in the home repair industry
• Pizza Delivery Drivers
• Newspaper Couriers
• Independent Insurance Agents
• Farmers and Ranchers
• Small business owners who use their vehicles for their everyday business needs

This information and source comes from www.voteforprop6.org.  Please visit this site to learn more about this issue, and educate your friends, family and neighbors and vote ‘FOR’ Prop 6, November 6.

Last week I posted this blog on my Houston Real Estate Group on Facebook, so now that I have created this week, www.houstonrealestateagent.com, I thought I would cut and paste it here!

The TODAY Show Weekend started a new series this morning on the Best Cities in the U.S. To no surprise, the show began their series with Houston, Texas. 

Houston — a city filled with Entertainment, Museums, Restaurants, Sport Teams, Recreational Activities, and let’s not forget the many famous Houstonians that the world knows. Clint Black, Beyonce, George Foreman, President George H. Bush to name a few. 

As a former Economic Developer who promoted not only Houston but the State, this is exciting to see that Houston is quickly becoming a tourist destination for many Americans as well as those from overseas. The hotels are one of the most affordable in the world, the transportation system is great for those visiting and the many choices of things to do within a small geographical range makes this city attractive.

Why this is a good thing for Houston and its real estate? Well, despite all the national news coverage on the mortgage crisis. Houston’s housing market is still progressing. New contruction is continuing. This is because of Houston’s job market continuing to be strong.  Unemployment rates are staying low. We have jobs here!!! Companies are moving here because of low cost!!! Thus, is making our real estate valuable and it is selling.

There are areas of Houston that have slowed down, but Houston as a whole is still thriving in the real estate market. Making this list, Houston will be on the radar screen for many to consider living here. What are your thoughts on Houston making this list? Do you think the real estate is suffering in Houston?

It was only going to take maybe 20 minutes today to close a simple house deal that I was helping a friend purchase, but to my surprise that 20 minutes lasted 6 hours.

Yes, six hours that a stroke of a pen couldv’e taken care of in a matter of minutes.  Next time I will take a bigger pen that works so that I am not sitting for hours waiting to negotiate at the final minutes.

You are probably wondering what craziness happened that took this closing so long.  Well, it all started with the final inspection of this beautiful 3-year-old, six bedroom home.  Three small items that we probably would discount, but to my client it was an issue.

The issues: home was not cleaned properly, outside speakers for radio system were missing and the window treatments were all gone.  When I called it out to the selling agent, we were told that the house was cleaned to the best of their ability, speakers and window treatments were in the “MLS Exclusions.”

Okay, but we were told only the receiver for the speakers were going to be taken not the fixtures connecting to the ceiling.  Window treatments were fine that they took but you can’t take the fixtures to hang the treatments leaving holes in the wall. 

There’s a kick to this though…we were arguing over these items that were in the so-called “exclusions,” but they were not in the contract.  I read and reread and guess what? None of these exclusions were in the contract. 

So, the lesson here is to make sure you put every exclusion in the contract so that everyone is clear.  This will definately save you time and grief at the signing table.

So in the end, my client won his arguement and received compensation and the closing finalized.  This wasn’t a deal breaker but only the principal of the matter.  Though, it sure made for a long day!

Early morning and late nights for the last week — who said the real estate business was slowing down?  Well, it may be true on the national level and in residential, but I can say that the Houston market is not showing signs of stopping. 

My phone rang non-stop on Monday with potential clients shopping for retail space that I have available.  Just when I thought that a few of my listings in a particular part of an underdeveloped area of the Houston region wouldn’t get a call, well, I received several calls on each of the pieces of properties.  In the same area, I received calls from retailers wanting space in a neighborhood center that I am pre-leasing right now (not even underconstruction).  Two of those calls I am confident will go into contract by end of next week.  Real Estate meltdown?  I think not!

Lets move on inside of the 610 Loop…residential still being built all over.  Clients are buying and selling.  New shopping centers being placed throughout the area.  Older shopping centers have been remodeled or in the process.  I can attest that even foreign investors are looking at Houston.  I am currently working with two different clients from two different countries across the ocean wanting to tap into the Houston shoppers wallet.  I have a client from a neighboring state that is looking at opening an ethnic restaurant inside the loop.  Another client is looking for 10,000 sq. ft. of Class A highrise office space. 

These are only a few of my deals that I am working right now. Imagine all of the other commercial agents that are working in Houston right now and their deals.  Houston, we DO NOT  have a problem!