Sheila Cox, Five Star REALTOR

Award-winning REALTOR, Sheila Cox specializes in helping Katy, TX home buyers and seller navigate the local real estate market with confidence. With 15+ years of experience and deep knowledge of neighborhoods like Cinco Ranch, Seven Meadows, and Cross Creek Ranch, she provides expert guidance backed by real data and local insight. Winning the Five Star Real Estate Agent award every years since 2010, Sheila has accomplished what only 1 percent of Realtors can boast. She also provides training guides and courses to other Realtors via Agent Success Builder.

Home Decorating in the Houston Area

I hope you love your new home! As a new resident of the H-Town area, you may be interested in my information on where to look for furniture and more.

Furniture

texas humor 1If you head north on Fondren from I-59, you will find a lot of different furniture stores. I call this section, up to Westheimer, “Furniture Row.” You will also find rug, fabric, and lighting stores in that area. 

There is also a Star Furniture nearby (see map below) which IMHO has the best quality-for-the-price furniture around. There is also a Star Furniture Clearance Outlet where you may get a great deal.

If you like modern/contemporary furniture, then check out Cantoni.

And don’t forget the iconic GALLERY FURNITURE in Houston, which is an awesome furniture buying experience and they can usually deliver on the same day! (Read about owner “Mattress Mack” who is a Houston icon.)

APPLIANCES

I have purchased several appliances (refrigerators, ovens, TVs) online at ABT Electronics. They have different levels of delivery service, depending on what you need. Watch out for large refrigerators and getting them through your door! I had to have a handyman remove my door in order to get my last refrigerator inside, and it’s just a regular refrigerator.

There are also Appliance Outlets all over Houston, just check around on Google Maps.

HOME DECOR

I like to make home decor collections on Amazon (helps with staging). Sometimes you can mix and match, like yellow and gray, or navy and gold:

I also help people with “budget decorating” where you can make your home look great using inexpensive touches and items you already have. You can see a few examples of how I transform homes from my Staging Samples page. Just contact me for help.

Staging: Before and After

If you want home buyers to get excited about purchasing your home, then it needs to look it’s very best!

Most people don’t want to spend hundreds of thousands of dollars to buy a “fixer upper” that needs fresh paint and flooring…they want “move in ready.”

But most of us don’t live in a home that looks like a builder’s model! The way you live comfortably in your home is not how you should stage your home for sale. 🙂 

I can provide small-scale staging services for my full-fee clients, as shown in the following examples. If you need premium furniture (for higher-end or luxury homes) then you will probably need to engage a professional home stager.

TRUE Video Tours
To see one of my best video tours (where no staging was necessary) check this out!

 

Staging Project 1

Here’s one example of a home staging project I did for a lovely home owner/client and the professional photography that I arranged. We received multiple offers in 3 days. That’s how you do it! I also helped this home owner save thousands of dollars by using a local flooring company that I recommended ($9000) vs Home Depot or Lowes ($22,000-24,000). This is why you should contact me EARLY…before you spend too much money on your house. 🙂 

You can view all the photos and my virtual tour for this home here.

 

Staging Project 2

Here’s another example of a “lived in” home that I staged using their existing furniture. When I work with occupied homes, I create a Staging Plan for the home owners, showing exactly what items to remove, so they know how to prepare for “Staging Day.” I also helped this home owner get multiple estimates from local painters in order to select the best one for their project.

You can view the video tour here.

 

 

Staging Project 3

While being only one year old, this home needed a few things to make it more “homey.” This house went under contract in less than a week and the buyers told us, at the Closing, that the colors and staging is what sold the house!

By the way, this home was sold to out-of-town buyers who saw my video tour. They didn’t see the house in-person until the day before Closing. I have sold approximately 15 homes to out-of-town/state/country buyers through my TRUE video tours.

You can view the video tour here.

 

Staging Project 4

Here’s an example of a home staging project I did for a vacant home. I used to do my own photography, but now I hire a professional photographer for my listings.

You can view the video tour here.

You can view all the photos and my virtual tour for this home here.

 

Staging Project 5

Here’s another example of a home staging project I did for a vacant home several years ago. I used to do my own photography, but now I hire a professional photographer for my listings.

Confirmation: Thank you!

I hope you find the information that I send you helpful!
Please email me your feedback if you have any suggestions.

 

 

😀

VIP Buyer Program

Let’s Get Started!

I am happy you have decided to let me be your “Buyer’s Agent” and help you get a GREAT home in the Katy area!

If you haven’t already, you may want to see my List of My Value-Added Services for VIP Home Buyers so you know what to expect. Or you can download my brochure…

 

There are a few things that we need to do before we can start touring houses. The Texas Real Estate Commission, National Association of Realtors, and my broker require that I go over certain information with you FIRST. 

 

Five Steps to Get Started

Here are the required steps…

NOTE: There are BIG changes hitting the entire U.S. real estate industry as of August 2024, so you MUST get up-to-date by watching my videos. You can also view a summary here.

 

Please watch my video about Agency & Representation so you understand what it is. This is very important information! Call me if you have any questions. RECOMMENDATION: Change the video Quality settings to 1080p and, if the video is too fast, change the Playback Speed as well.

 

Also view my video about Buyer’s Agent Compensation so you understand the three different ways that buyer’s agents are compensated in today’s real estate industry. Call me if you have any questions.
RECOMMENDATION: Change the video Quality settings to 1080p and, if the video is too fast, change the Playback Speed as well.

 

Please email me (scox@katyhomesforsaletx.com) a copy of your PreApproval letter from your lender. You can see my video about why we need this now here.

            If you don’t have a PreApproval letter yet, please read this article (which also has a list of some lenders you can contact).
 
 
Also email me your current address and full legal names so I can create the necessary paperwork to get started including:

 

I will send you the docs to sign via a program called Docusign. This is an easy way to e-sign documents online.
 
 
Once we complete these five steps I can start touring homes with you either in person or via my online video tours! I can’t wait to help you buy a GREAT home in my wonderful area!

Check My Client Reviews

Click Image Below

sheila cox reviews
 
 

Home Buying Timeline in Katy

by Sheila Cox, Five Star Realtor | Updated October 2025

One thing I’ve found as a real estate agent: most people need help with their home buying timeline. So my recommendations are listed below. 

Home Buying Timeline for a Resale Home

Start with a Deadline. That’s the date you absolutely have to be out of your current home/apartment. This Deadline may be the end of a lease or a move-out date for an existing home that you are selling.

Begin Search. You should begin your search approximately 2.5 to 3 months before your deadline. Keep in mind that most home owners will want you to Close within 5-6 weeks of executing a contract because that’s the typical time it takes for a lender to process your loan. It may take several weeks before you find a home and get an accepted contract. Some people start their search even earlier, to have more cushion, but they must be prepared to Close early and pay two house payments until the end of their current lease or move out date on current home. (Actually, you don’t usually begin paying a new mortgage for at least one month after Closing. So if you Close in the middle of June, your first house payment may not be until August 1.)

Deadline for Executed Contract. You must be “under contract” on your new home at least 6 weeks before your deadline but 8 weeks is preferred. Again…this is to allow time for your lender to process the loan (usually 5-6 weeks). You should allow a 2 week gap between Closing on your new home and moving out of your current home in order to give yourself time to pack, move, and clean. NEVER plan to Close and move out on the same day. Closings don’t always happen on time, as scheduled. There can be delays caused by the lender. You do not want your belongings on a moving van before you have a definite place to put them!

Recommended Close Date. You should Close on your new home about 2 weeks before your Deadline to move out of your existing home. However, this will need to be negotiated with the Seller of the new home. If they have already vacated the property, they will want a quick/short Closing date. If they are still living in the home, they may want a longer date before Closing or they may want a Temporary Lease to live in the home, after Closing, to have time to pack and move.

home buying timeline katy

 

Home Buying Timeline for a New Construction Home

This timeline is for purchasing a resale home. If you are buying new construction (home being built from “dirt”) then it will take 5-6 months or more. Keep in mind that there are sometimes material shortages and supply-chain issues, and some home builders have delays. Rainy weather can also delay a Closing date for new construction homes.

remodel home

Remodeling Homes in Katy

by Sheila Cox, Five Star Realtor | Updated October 2025

You may want to know about remodeling homes in Katy, because the houses in the best areas to live here are starting to get a bit outdated. If you want to live in an area with the shortest commute downtown, and top-rated schools, with excellent amenities, then understand that those neighborhoods were built in 1990-2010 (or so). So the homes in those areas are starting to need new paint, floors, counters, etc.

You can’t buy a new construction home in these areas (77494 and 77450)…they are “built out,” which means there is no land available on which to build. So you can either move way out west into northwest Katy (possibly zoned to lower-rated schools) or into Fulshear or Brookshire Texas, or you can do some remodeling.

In real estate there are three things you need to know: Location, location, location. 😀   So generally speaking it’s a wiser investment to buy a home in the best location that you can afford and then do some updating to the interior as needed.  You can transform an older home and then have a modern-looking, updated home in the best neighborhoods zoned to the top-rated schools. You just need a great contractor and a budget! ;-D

Updating a home will typically take 2-6 weeks (depending on what you do to the home). That’s a lot shorter time than building a new construction home, which will take 5-8 months. Minor updates can begin as low as $10K and a major update can cost around $60-70K (depending on what you do to the home).

I can help you with a list of contractors in the area, sample colors and material lists, planning checklists, and more. Watch the video below of a home transformation for one of my clients (who hired a contractor that I recommended).

 

Beautiful Example of a Home Transformation 

 
NOTE: Make sure the video Quality setting is 1080p.

By the way, I can provide you with a list of Sarah & Will’s paint colors and other materials! ;-D

  

BEFORE & AFTER Photos

 

Other samples of beautiful remodels: Look here

What’s the Most Popular Kitchen Cabinet Color?

 

 

Yards Can Be Transformed Too!

 

Sample Paint Colors

 

 

 

Other Cool Ideas

Built-In Doggie Kennels

doggie kennels

 

 

Bar Under the Stairs

bar under the stairs

 

Wine Cellar Under the Stairs

 

 

sheila cox realtor 22

How To Make Your Offer More Competitive

In a hot real estate market, where homes are getting multiple offers within a few days of being listed,  you need to know how to make your offer to purchase a home more competitive. The more you want the home, the more competitive you will want to make the offer.
 
 
Please view my detailed video (50 mins) to learn about our Texas contracts and addendum. You should do this in advance so you are prepared in case we have to write an offer in a hurry. You can download and print the sample docs (which we go through in the video). Please write down your questions, so we can discuss them.
 
The video and sample docs are exclusive to clients only…so sign up!
In my video I explain the following items and more.
 
Contract Item Comment Estimated Cost*
Sales Price

The higher the sales price, the better your offer.

You usually have to offer over list price to win in a multi-offer situation.

  

Termination Option

NOTE: Relocation companies do not allow Termination Options (which are unique to Texas).

Negotiable for 7-10 days and $200-500 fee. Waiving your Termination Option can be a good way to be competitive, and you are still allowed to do inspections. However, you will have little negotiating room for repair requests. In a hot real estate market, most sellers won’t agree to repair requests anyway. (See more about inspections and common issues on homes in this area.)

If you want a Termination Option, but you also want to be competitive, then offer a $1000 fee to show that you are a serious buyer. If you do not “exercise your option to terminate” then your Option fee is applied (credited) to your Sales Price at Closing.

 $200-1000
Requested Non-Realty Items

Do not request excluded items if you want to be competitive.

You can ask for appliances, furniture, etc. and offer to pay for them in a Non-Realty Items Addendum.

 $10 or more
Title Policy Sellers usually pay for the title policy but you should pay for it if you want to be super-competitive.  Calculate cost
Survey Buyers usually pay for a new survey if the sellers do not have an accurate one available. $425 at Closing
Home Warranty

The Seller usually pays for a Home Warranty, but the Buyer  chooses which home warranty company and policy type they want, and the title company orders it and pays for it out of Closing funds.

To be more competitive, pay for the Home Warranty yourself.

 $500-800 (with pool)
Closing Date If the home is vacant, then the sooner the better to Close (for the Seller). Being flexible on a Closing date, to match what the Seller wants, can be a good way to be competitive. Closing time frames are mostly determined by the lender who usually require 5-6 weeks. Cash buyers can usually close in 3-4 weeks as long as their funds are readily available.  
Possession/Temporary Lease Backs If the home is still occupied by the owner, then offering a Temporary Lease Back to the Seller, so they have time to pack and move after the Closing, can be a good way to be competitive.  
Seller’s Contribution to Closing Costs

If you need help with Closing costs, because you do not have a lot of cash available for the purchase, then your offer will not be very competitive. Asking the Seller to pay for anything extra lowers their “net proceeds” from this transaction. 

Sometimes you can offset “Seller’s Contribution to Closing Costs” with a higher sales price, but not often in a multi-offer situation.

  
Type of Financing

A conventional loan from a reputable local lender will make your offer more competitive. If you have a big bank (such as BofA, Wells Fargo, or Chase) then you will not be as competitive (because listing agents don’t like them due to Closing issues).

FHA loans are not competitive because of the stringent inspection process and reputation for low appraisals.

  
Days for Buyer Approval On the Third Party Financing Addendum, we typically put 21 days for Buyer Approval, but if you have all your paperwork turned into the lender, and your lender says it’s OK, then you may want to put 14 days to shorten this contingency (to be more competitive).  
Appraisal Addendum

If you are bidding high on a house and have concerns that it will not appraise, then you should request an Appraisal Addendum (see my detailed article and video about this). This is especially true if you are a cash-rich buyer. However, this makes your offer less competitive than offers who do not make this request.

If you can afford it, do not request an Appraisal Addendum and be prepared to pay the difference between the sales price and the appraised price (plus down payment and Closing costs).

  
Subdivision Info You can usually get the deed restrictions for a neighborhood online. If you want a printed copy, then you may be charged for it and you will have to request it on the HOA addendum. This is very unusual and will make your offer less competitive. 

Cost Varies
$300-500
HOA Transfer Fee The transfer fee should be listed on the MLS, but it may be inaccurate. The Buyer usually pays the transfer fee. There may be other fees $200-400 approximate) charged by the HOA before Closing…each HOA is different. Cost Varies
$200-400
Foundation Fee Johnson Development who runs Cross Creek Ranch, Sienna Plantation, and Riverstone, requires that Buyers pay an extra fee at Closing, usually equal to one year’s HOA maintenance fee. There may be other neighborhoods/developers that require this as well. Make sure you identify “who pays what” in the contract. Usually equal to HOA fee $1100-1300
Capitalization Fee Johnson Development who runs Cross Creek Ranch, Sienna Plantation, and Riverstone, requires that Sellers pay an extra fee at Closing, usually equal to .25% of sales price. There may be other neighborhoods/developers that require this as well. Make sure you identify “who pays what” in the contract. Cost Varies but usually .25% of sales price
*All of the costs listed are ESTIMATES only.
 

To write an offer to purchase a home, I will need the following information:

Full Legal Names (both people): __________________________  and ______________________________
 
Separate email addresses for each of you: __________________________  and ______________________________
(for e-signature system to be legal, they require separate emails)
 
Sales Price: $____________
 
Down payment: $___________ or ____%
 
Loan Type: Conventional
 
Loan Duration: _____ years
 
Loan Interest Rate: ____%
(The rate should be “worst case” scenario, in case you want to use this as a reason to back out of the deal due to financing issues.)
 
Closing Date: _________________
 
Current Address: _________________________
 
Items to include in Non-Realty Items Addendum: Refrigerator?, W&D? 
 
Special permission to do stucco inspection or hydrostatic testing (very uncommon here)
 
texas humor 2

How to Survive Natural Disasters in Katy

>>Print this article (PDF file)

Helpful Disaster Supplies You Need

Regardless if it’s a hurricane, tropical storm, or winter storm, here is a great list of helpful disaster preparation supplies (Amazon list) and hurricane supplies (Amazon list2). Most people will not have a budget to buy all of this at once, so try to buy one or two items every month or so, and within a year you will have a lot of supplies. Store all your emergency supplies in one area. Non-food items can be stored in a large plastic container, in case you need to evacuate and take them with you.

>>See also: Katy Preparedness Guide

Create an Emergency Binder and include this Basic Preparedness document. Also print out your email contacts (online address book) and evacuation route map and put in binder. Keep some emergency cash in the binder as well…in case the electric power goes out, ATMs don’t work, and credit cards can’t be used.

 

What To Do the Week Before a Disaster

For most disasters (hurricanes and winter storms) you will have advance notice. Essential items that you need to survive include: water, food, lighting, cooking gear, and gasoline. Keep in mind that many of these items will not be available AFTER the disaster, so plan ahead.

Before a hurricane, winter storm, or other natural disasters, you should:

 1.   Store as much water as you can. Water may go offline or have a “boil notice” after a disaster, so store water in jugs, such as a 5-gallon collapsible storage jug, and 2 gallon container with spigot (works great as an alternative faucet for washing hands). Bathtubs can be used as a last resort.

2.   Fill up your car with gasoline, whether or not you plan to evacuate. Gasoline is often in shortage after a disaster. If you have a gas generator, get gas for that too. Use Gas Buddy app to find gas after a disaster.

3.   Buy non-perishable supplies at a grocery store at least 3-days in advance. Don’t wait until last-minute when shelves will be empty. Perishable items are not recommended since they will spoil if you lose power for an extended period (and refrigerator doesn’t work). Buy enough to last at least 1-week.

    Other Helpful Shopping Lists:

 

4.   Make sure you have enough prescription medicines on hand.

5.   Charge up all phones and devices. If you have battery backups, or chargeable radio/lanterns, then charge those too.

6.   Familiarize yourself with all evacuation routes and shelters.

7.   Wash clothes—you may not be able to do so after the storm.

8.   Shower and wash hair—you may not be able to do so after the storm.

9.   Download the Gas Buddy and Waze apps.

10.   Sign up for Nextdoor in your neighborhood and all neighborhood Facebook groups. During Hurricane Harvey, social media had information up to 12 hours ahead of the county’s emergency management system.

11.   Freeze plastic bags of water to use for ice after storm.

12.   Sign up for emergency alerts at city, county, and MUD websites.

>>See Katy Road Conditions Map or Houston TranStar

 

How to Prep Home for Hurricanes

The following list will help you prepare for a hurricane:

1.    Get flood insurance by May 1…it takes 30 days to go in effect and hurricane season begins in June.

2.   Purchase Hurricane Supplies in addition to other emergency supplies. The supplies may be on short supply after the disaster.

3.   Know how to turn off the electricity, gas, and water for your home.

4.   Print a list of local emergency shelters.

5.   Put all outdoor lawn furniture, potted plants, and items that may go airborne in high winds, in the garage.

6.   Cover windows with plywood, if possible.

7.   Unplug small appliances and propane tanks (gas grills).

8.   Make sure all dogs and cats are wearing tags, in case they get lost.

9.   Take detailed photos/videos of home and contents (internal and external) for insurance records.

10.   You may want sand bags to seal doorways.

11.   In an emergency, you can store documents and valuables in a dishwasher (which is waterproof when fully closed).

12.   Move valuables upstairs or stack furniture on risers. Get items off the floor if flooding is expected.

13.   Prepare a location under the stairs or inside an interior closet as a safety room during high winds, if you can’t evacuate.

14.   You may need cleanup supplies: heavy duty garbage bags, ax/chainsaw, broom, mop, bleach (which doesn’t kill mold on porous surfaces, as commonly believed), heavy duty gloves, and more (see list).

 

How to Prep Home for Hard Freezes and Winter Storms

The following list will help you prepare for a hard freeze or winter storm:

1.  Do not leave pets outside during a freeze; 40 degrees or below is dangerous for most mammals.

2.  Cover delicate outdoor plants with bed sheets or fabric (better than plastic) and bring potted plants inside.

3.  Disconnect water hoses from outside faucets and cover all faucets with insulators (cheap, easy to use, and available at Home Depot).

4.  Winterize sprinkler system, it’s very easy (see video).

5.  Insulate all outside, exposed pipes. 

6.  Make sure you know how to turn off the “water main” in case a pipe bursts.

7.  Drip water (size of angel hair pasta) at faucets at night, especially for kitchen and bathroom sinks that are on an exterior wall. Open the cabinet doors so warm air can get to pipes. If temperatures will be below freezing for more than 6 hrs then shut off water at the main, and open faucets in bathrooms and kitchen to drain lines. Leave faucets open until you open the water main again (when temperature gets above freezing).

8.  If you have a swimming pool, make sure you set the pump to run during the freezing temperatures…usually from 10 p.m. to 10 a.m. You want to keep that water flowing! If temperatures will be below freezing for more than 6 hours, then you may want to winterize your pool (videos listed below).

9.  If heater goes out due to power loss, “seal” off one room in your house that is near an alternative heat source (fireplace or gas stove in kitchen). Use thumbtacks to hang blankets over doors and hallway entryways to keep cold air out and warm air inside. Keep all family members in one room to retain body heat in one place. Close doors to all other rooms in the house. If you will be using a fireplace*, make sure you have firewood or gel fuel on hand, but always monitor all open flame fires. If using a gas stove in a kitchen, then make sure you have a lighter. Don’t sleep with unattended open-flame fire: fires are silent killers. Keep a fire extinguisher nearby. Make sure you have a carbon monoxide detector in the room. Dress in warm layers and drink warm tea.

*NOTE: Make sure you have your chimney cleaned at least every 3 years…more often if you frequently use your fireplace. Creosote build-up and other issues can cause dangerous house fires (read more). Be safe!

Helpful Videos 

Learn how to turn off water main, winterize sprinklers and pool, and more. Check out the videos on my playlist here: https://youtube.com/playlist?list=PL6I6-5nmCmu-JCR0ye7oGEagpILaOMhk8

Emergency Video Playlist

 

If You Need Emergency Restoration or Plumbing

More checklists: Primal Survivor Website

Print this article (PDF file)

appraisals

About Appraisals and What To Do When One Comes in Low

The Problem Regarding Real Estate Appraisals

One troublesome aspect of home buying and selling is how to handle low real estate appraisals. 
A real estate appraisal is an estimate of the market value of a piece of real estate based upon a variety of factors. 
In the definition above, notice the word ESTIMATE. If you ask five different appraisers to give you an appraisal for one home, you will end up with five different prices/values. So never consider an appraisal to be absolutely true, objective, and infallible—it’s an OPINION only. It’s not like 2 + 2 = 4. It’s more like the appraiser chooses the comparable homes (“comps”) and adjustment numbers he wants, to make the home equal to the sales price or less…depending  (in my opinion) on how much down payment the buyer is paying. 
 
 
I’ve seen overpriced houses appraise for the sales price and I’ve seen fairly priced homes NOT appraise for value. What’s the difference? I think at least part of it is how much the buyer is putting down on the home (but I can’t prove that). In my experience, it’s interesting how often homes appraise when the buyer is putting 20 percent down, and how often the appraisal “comes in low” when the buyer is only putting 3 to 5 percent down.
 
I’m a very analytical real estate agent, so I actually review all appraisals that I receive, to see what the appraiser did and how he valued the property. One thing that has always amazed me is how rarely appraisers choose true comparables to the subject home. We’re supposed to choose 3-5 homes sold in the past 6 months that are as near the subject property in size, quality, age, amenities, and proximity as possible. But I’ve seen an appraiser go back a year to find the lowest comps possible, when there are plenty of comps that are within the 6-month preferred window. I’ve seen appraisers use comps in totally different neighborhoods, zoned to different schools and with different amenities, rather than use the comps available in the same neighborhood. I’ve seen appraisers use homes that where larger or smaller than our +/-300sf guideline, even with there are appropriately sized comps available. Trust me when I tell you, the value of a home can be easily manipulated by the types of comps that are chosen. If an appraiser chooses the cheapest comps available, and the subject property is high-end due to it’s location or features, then the appraisal will come in low. If an appraiser chooses the most expensive comps available, and the subject property is priced fairly, then the appraisal may come in a tiny bit over sales price (about $5000).
By the way, home appraisals will almost never come in more than $5,000 over the sales price. Isn’t that magic? ;-D
Another problem is timing. Using 6-month old homes to value the current market is a little absurd. If you are in a hot “sellers market” then the comps 6 months ago won’t reflect the current market situation. Likewise, if you are selling in a “slowing” market, with lots of homes available, then the price you could have received 6 months ago may not be what you will sell for today (when the buyers have more options).
 
So all home buyers need to take these things into consideration and they should not treat an appraisal as an absolute TRUTH.
 
When buying or selling a home, you should keep these things in mind:
  1. In a hot “sellers market” where there are few homes on the market, and most homes have multiple offers within a few weeks of listing, buyers should expect to pay the listing price or more to get a home under contract. The problem with this scenario is that the home may not appraise for value (the sales price).
  2. In a “buyers market,” where there is high inventory (lots of homes available) and buyers have lots of options, then sellers should not expect to receive top-dollar for their property, and it may take longer to find a buyer unless your home is immaculate.

Options for Handling Low Appraisals

If you are a home buyer, and my client, then it’s my job to help you get the home that you want…even if it may at the higher end of the market. If you put a $400,000 contract on a home AND have an appraisal addendum, and then the appraisal comes in at $380,000 (these prices are just examples), then you have four options: 
 
A. Ask Seller to Drop Price to Appraised Value: Send an Amendment asking the seller to agree to change the sales price to match the appraised value. Consequences: If seller agrees, then you get the house at a much lower price. If not, you lose the house and all fees you have already paid, but you get your earnest money back. Sellers do not have to agree to drop the price. If it’s a hot market, then the seller can relist, get another offer, and end up with a different appraisal. (Except FHA appraisals stay for 6 months, but the seller can just refuse FHA offers in the future.)
 
B.  Ask Seller to Drop Price Part Way: Send an Amendment asking the seller to agree to change the sales price to meet you somewhere between appraised value and current sales price (such as at $390,000, or any number between $380,000 and $400,000). Consequences: If seller agrees, then you get the house at a lower price than you agreed to in the contract. But again, the seller does not have to agree to this and can always put the house back on the market.
 
C. Buyer Pays Extra for House: Move forward with the transaction and pay the extra money between the appraised value and the sales price. This will be in addition to the down payment and other Closing costs. This is not usually recommended, but sometimes necessary to get the home you really want. Consequences: Buyer pays more than originally intended, but gets the home.
 
D. Terminate Contract: Terminate the contract and get your earnest money back. Consequences: You don’t get the house you want and you lose the fees paid to lender and inspectors.

How Do You Choose the Right Option?

Use the chart below to help find the right option for your situation:
 

How To Price a Home

NOTE: This video is for normal markets and may not apply to “hot” seller’s markets where most homes have multiple offers.

 

Read also:

 
 
houston-real-estate-news

Houston Real Estate News

Latest Houston Real Estate News

Click a link below for more information.

 

 

How’s the Katy Real Estate Market in 2022?

katy market report smallGet the Report! 

  • Ten-year trend of median sales prices by ZIP Code and neighborhood…so you have a baseline in determining a home value.
  • Ten-year trend of sales volume by ZIP Code and neighborhood…so you can see which are the most popular neighborhoods.
  • Ten-year trend of median Days on Market by ZIP Code and neighborhood…so you can see how long it takes to sell a home in each area.
  • List of the most popular neighborhoods in the Katy area…see what neighborhoods are HOT!
  • List of the neighborhoods by price (high to low) in the Katy area.
  • Detailed market data on the most popular Katy neighborhoods

Download the Report!

arrow orange

 

katy-tx-la-centerra green featured

Self-Guided Tour of Katy Texas

Some people want a self-guided tour of Katy Texas before looking at houses with a REALTOR, so I created this tour to show you around the area. You will start this tour at LaCenterra which is a great place to find a restaurant. Just click each address in the order listed below and Google maps will take you to the featured places in our top Katy neighborhoods. You can click the neighborhood name to see my complete description of that neighborhood.
 
Try to drive around a neighborhood before moving to the next location on my tour. Remember that Google Maps can get you back on track no matter where you are located in the neighborhood. 😀
 

Order of Tour:
 

    1. La Centerra at  23501 Cinco Ranch Blvd, Katy, TX 77494
      This is one of our main shopping and dining areas with fun events on a regular basis. 

    2. Cinco Ranch Beach at  3131 S Lake Village Dr, Katy, TX 77450
      This is the original part of Cinco Ranch and one of the 10 swimming pools you would have access to as a resident of this neighborhood.  

      ⇒ Optional: You may also want to visit: Katy Equestrian Center while you are in this area.

    3. Grand Lakes at S Grand Star, Katy, Texas 77450
      Grand Lakes has an interesting “square” design (see diagram/birds eye) and many great amenities. This location takes you past the dog park, to the neighborhood garden, and one of the several splash pads and parks.

    4. Whole Foods at  6601 S Fry Rd, Katy, TX 77494
      While I’m a dedicated HEB-girl, some of my clients like to know that we have a Whole Foods nearby.   
       

      texas humor 1
      About Hurricane Harvey

    5. Seven Meadows at  23610 Seven Meadows Pkwy, Katy, TX 77494  
      One of my top-three favorite neighborhoods! Seven Meadows is a smaller neighborhood but is zoned to the best schools in Katy and has excellent access to both Westpark Tollway and Grand Parkway. 

    6. Cinco Southwest at  25202 Springwood Lake Dr, Katy, TX 77494
      This is a newer section of Cinco Ranch. Very pretty except watch out for the line of high-voltage power lines that run through the middle. This area is zone to excellent schools. As you drive from here to Cross Creek Ranch you will see the newest part of Cinco Ranch. 

    7. Cross Creek Ranch at  6450 Cross Creek Bend Ln, Fulshear, TX 77441
      Another of my top-three favorite neighborhoods, Cross Creek Ranch is resort-style living at its best. Make sure you park at the observation tower (welcome center) and walk around “The Hill.”

    8. Churchill Farms at 27618 Briscoe Park Ct, Fulshear, TX 77441
      Churchill Farms is a small, newer neighborhood with beautiful homes built recently and zoned to great schools. 

    9. Pine Mill Ranch at  26810 Pine Mill Ranch Dr, Katy, TX 77494
      Pine Mill Ranch is another smaller, newer neighborhood with recently built homes zoned to great schools.

    10. Tamarron at 28707 Tamarron Pkwy, Katy, TX 77494
      Tamarron has a gorgeous entrance (fountain) and resort-style community swimming pool, water park, splash pad, with a view of a lake, dog park and playground. This neighborhood is split between Katy ISD and Lamar Consolidated ISD.

    11. Cinco Northwest at Cinco Trace Dr, Katy, TX 77494
      This is part of the newest section of Cinco Ranch and features mostly high-end homes. Even though it is a bit away from “The Beach” and “The Lakehouse,” this neighborhood shares access to ALL of the Cinco Ranch amenities.

    12. Firethorne at 28100 N Firethorne Rd, Katy, TX 77494
      Firethorne is a newish neighborhood with nice amenities and the schools are split between Katy ISD and Lamar Consolidated ISD. On the Katy side, this neighborhood is zoned to Katy High School which is usually a 7 on GreatSchools.org (not one of our top high schools).

    13. Grayson Lakes at 2042 Broken Branch Ct, Katy, TX 77494
      Grayson Lakes is built around a small lake, so it has lots of waterfront homes. This is a smaller neighborhood and is zoned to excellent schools.

    14. Woodcreek Reserve at 26604 Kingsland Blvd, Katy, TX 77494
      Woodcreek Reserve is one of the prettiest neighborhoods in West Katy because it was built along a bayou. It is zoned to excellent elementary and middle schools, but also zoned to Katy High School (only a 7 on GreatSchools.org).

    15. Katy Mills Mall at  5000 Katy Mills Cir, Katy, TX 77494
      This is the largest mall in the area and is surrounded by restaurants and other activities. Drive around and take a look! On the south-side you will see new construction for the Katy Boardwalk taking place.

    16. Typhoon Texas Water Park at 555 Katy Fort Bend Rd, Katy, TX 77494
      Kids are always excited to see this awesome waterpark!

    17. Times Square Entertainment at 402 W Grand Pkwy S #110, Katy, TX 77494
      To bring you back around, I wanted you to see this entertainment center. Katy has MANY Fun Things to Do in Katy.

 
That’s a good self-guided tour of Katy Texas and our top Katy communities and amenities. There’s more of Katy along I-10 heading into town including even more restaurants and shopping. If you want to try some of our famous Tex-Mex and see this portion of Katy, then head to Pappasito’s (at 10409 Interstate 10 Frontage Rd, Houston, TX 77024) over by City Center.
 
If you want to see “Old Katy” (the incorporated part of Katy) then head to Mary Jo Peckham Park at 5597 Gardenia Lane, Katy, Texas 77493 and then drive over to the Katy court house at 5432 Franz Rd, Katy, TX 77493. The famous K-T train car is at 5615 1st St, Katy, TX 77493.
 
⇒ Area golf courses are listed on my website: Katy Golf Courses 
 

⇒ My tour in Google Maps is at: https://goo.gl/maps/ru6AP7o7Y8G2

 

How to Schedule a Home Tour with Me

 
sheila-cox-realtor2-featured

Katy New Construction Homes for Sale (from home builder)

Many people moving to the Houston area decide they want to live in Katy or Sugar Land because of the great schools. However, they are often surprised to find out that there is very limited new construction in these areas, especially Sugar Land. Sugar Land is completely land-locked by Houston, Stafford, Missouri City, and Richmond Texas. If you want a new construction home in that area you will probably have to live in Missouri City, in either the Riverstone or Sienna Plantation neighborhoods. There is new construction in Imperial Sugar Land, but that neighborhood is not zoned to highly-rated schools, is next to a chemical plant, municipal airport, and baseball stadium, and train track. There is some new construction in Riverpark, which is zoned to poorly-rated schools.

NOTE Richmond Texas is adjacent to Sugar Land and there are new construction homes available in Aliana and a few other neighborhoods that I do not recommend. Aliana is adjacent to a large county dump and the other new construction neighborhoods are not zoned to highly rated schools.

Katy New Construction Neighborhoods

If you want Katy new construction homes for sale, especially a new construction home from a builder, then you will have to look northwest or southwest (and have a longer commute to downtown). Katy is “built out” on the northeast and southeast sides, closest to downtown Houston. The largest area of new construction homes will be on the northwest side of Katy (77493) where the schools are only Average (usually rated 5-7). If you want highly-rated schools, then look on the southwest side, including Fulshear TX (77441) because most of 77494 is built out.

katy new constructionSource: https://www.katyisd.org/

 

One thing to watch out for with Katy new construction homes for sale: High-risk flood zones. Some of the new construction neighborhoods are in 100-year and 500-year flood plains! Check out my Katy Flood Zone Report for more details and flood maps.

cross creek ranch featured

Cross Creek Ranch

Price Range: Home prices range from $335K to $1.7M Description Cross Creek Ranch is located on the ...
firethorne featured

Firethorne

Price Range: Home prices range from $303K to $1M Description Firethorne Katy is located on the far-west ...
tamarron featured

Tamarron

Price Range: Home prices range from $250K to $700K Tamarron Katy is located on the far-west side ...
Camillo Lakes

Camillo Lakes

Price Range: Home prices range from $287K to $430K Description Camillo Lakes Katy is located on the ...
Cane Island

Cane Island

Price Range: Home prices range from $585K to $2.45M Description Cane Island Katy is located on the ...
Elyson

Elyson

Price Range: Home prices range from $287K to $958K Description Elyson Katy is a “new construction” neighborhood ...
Fulbrook on Fulshear Creek

Fulbrook on Fulshear Creek

Price Range: Home prices range from $400K to $860K Description Fulbrook on Fulshear Creek Katy is located ...
Jordan Ranch

Jordan Ranch

Price Range: Home prices range from $272K to $800K Description Jordan Ranch is located on the southwest ...
polo ranch

Polo Ranch

Price Range: Home prices range from $249K to $539K Description Polo Ranch Katy is located on the ...
Young Ranch

Young Ranch

Price Range: Home prices range from $369K to $731K Description Young Ranch Katy is located on the ...

 

NOTE: There is also a major new development in Cypress (north of Katy) called Bridgeland.

 

Do Your Research!

>> Read Buying New Vs. Resale Home

>> Read What To Expect When You Buy A New Construction Home

>> Read How to Choose the Best Neighborhood

 

 

Katy New Construction Homes for Sale

Updated Daily – Sorted by Newest Listings

 

 

 

home inspections

Sixteen “Must Do” Items To Prepare Your Home for Inspections

When you are selling your home, you may be tempted to focus more on your home’s appearance than its condition…both are very important to home buyers! In Texas, a home inspection report “sticks” with the home for four years. That means that if you get a contract on your home, and the Buyers do inspections, and then back of of the deal (“exercise their Option”) due to repair issues, you will have to attach that inspection report to your Seller’s Disclosure to inform all potential buyers about the issues with the home. (This is Texas law.)

inspection reports

 

This means that you want to prepare your home in advance, so that very few items are listed on the inspection report!

 

So do the following items when listing your home for sale, and especially a few weeks before an inspection. These are the most common things that will be listed on an inspection report in the Katy and Sugar Land area. These are also the types of things that “kill deals” and cause Buyers to “exercise their Option” to cancel the contract. Smart home owners side-step these issues by resolving them in advance of listing their home.

 

#1 – Get the HVAC System Serviced

The number one issue with buying and selling a home in Texas is the HVAC (heating, ventilation, air conditioning) system. Home inspectors will test the cool air blowing inside the home and compare that to the outside temperature to find the “differential.” Even if you THINK the system is working properly, it probably isn’t good enough for an inspection report.

Generally speaking, you want an air differential of 16-20 degrees. Home inspectors will also do other items to inspect the HVAC system but they will VERY OFTEN recommend that a “qualified HVAC professional check the system.” To head that off at the pass, you should contact your A/C company and have them check the system first. Make sure they fix any issues and then write the temperature differential on the receipt. Also make sure they check the heating elements and specifically write the condition of the heating elements on the receipt. (Home inspectors are not allowed or qualified to open the furnace to check the heating elements.) You need written proof of these items for most buyers.

One thing to understand…if the outside temperature is 65 degrees, minus a 16 degree differential, that equals 49 degrees. Most ACs will not work under 55 degrees. So you can’t properly inspect the cooling capacity of an HVAC system when the outside temperature is below 72 degrees.

Providing a Residential Service Contract (“home warranty”) may help you resolve concerns about HVAC systems, but not always. It’s best to have the system serviced, and provide WRITTEN PROOF, ahead of time. Send a copy of the receipt to the Buyer’s agent before the home inspection, so they can give it to the home inspector.

 

#2 – Walk the Perimeter and Repair Cracks in Brick Mortar Joints

Potential foundation issues will scare buyers off faster than most anything else when buying a home (read details). Since we live in an area with expansive clay soil (which is susceptible to our frequent floods and droughts) it is common for the brick and mortar around the exterior of a home to crack…especially at bay window and wall joints. Cracks do not, necessarily, mean there is a problem with the foundation. Most exterior cracks in the mortar, and interior cracks in the sheetrock, are indicative of typical “settling” in our area. However, most buyers do not understand that and will just move on to the next available home…passing yours by. 

Here is a must read for Texas home owners: Buyer’s Guide to Slab-On-Ground Foundations by R. Michael Gray, P.E. and Matthew T. Gray, EIT.

If you have any concerns about your foundation, don’t ignore them and hope they will go undetected. Call a reputable foundation company and have them give you an estimate. Most of the time, there is no issue, so having that information in writing is beneficial.

Make sure you properly seal up cracks in mortar to prevent water and pest intrusion. But never DIY these repairs with stuff you can buy at Home Depot!! Hire professionals so the repairs will be invisible. Also repair interior cracks in ceilings and sheetrock, but again, hire a professional so they will be done properly. These repairs are relatively inexpensive and well worth the price if it prevents buyers from avoiding your property.

Read: Will Prior Foundation Repairs Effect a Home’s Resale Value?

 

#3 – Get the Pool Equipment Serviced

If you have a swimming pool, even if you think it is working properly, have it serviced and especially make sure the pool heater (if any) has the pilot light lit so it can be tested during an inspection. Make sure your “pool guy” writes the condition of the equipment on a receipt and keep it to provide to buyers. Also make sure the pool pump is clearly labeled, all switches for lights and water falls are labeled, and clearly label the GFCI outlet.

 

#4 – Get the Sprinkler System Serviced

Most buyers want to ensure that the sprinkler system works properly…especially the backflow device (which keeps yard contaminants out of the homes main water supply). Make sure that your sprinkler control box is clearly labeled for “which zone is which.” Example: Zone 1 = Front flower beds. Also attach a copy of your sprinkler’s instruction manual in a clear, plastic paper protector and staple or thumbtack by the control panel.

 

#5 – Replace Burned Out Light Bulbs (or Fix the Light Fixture)

If an inspector turns on a light and nothing happens, they don’t know if the bulb is burned out or if they fixture doesn’t work…so it will go on the inspection report. It’s easy enough to walk your house, including porches and garage, and make sure every single light bulb works. I recommend you use “bright white” (not daylight and not soft white) with the highest wattage allowed for the outlet.

Beware of using energy efficient “pinkish” light bulbs that take several minutes to warm up. Usually the buyer is ready to leave by the time those lights bulbs warm up, so the house looks too dark.

 

#6 – Ensure All Sink and Tub Drains Work Properly

Go through your home and make sure none of the drains are clogged up. Slow drains will go on an inspection report. While you’re at it, if you have a whirlpool tub, fill it up and pour 2 cups of bleach into the water and run for a few minutes to clean the jets internally. If you do’t use the whirlpool regularly, you may be surprised with the “black gunk” that will appear in the water!

A plumber recommended Thrift Drain Cleaner (buy on Amazon) to me and it works great! I use it to maintain the drains in my own home.

home inspections drain cleaner

 

#7 – Repair All Leaky Faucets and Underneath Sinks

Check all the faucets and underneath all the sinks in the home to make sure there are no leaks. Hire a handyman or plumber (more expensive) to fix or replace leaky faucets and sinks. Also repair previous water damage (if any).

 

#8 – Get the Electrical Panel (Breaker Box) Up to Code

Electricity scares most people and electric codes change year to year. Just to be safe, have a qualified electrician check your electrical box/panel and make sure it will pass an inspection. Make sure the breakers are properly labeled. Also make sure there is easy access to the box and there are no wasps nests growing in or around it. (Yes, I’ve seen this!)

 

#9 – Lower the Soil/Mulch Level Around the Foundation

One of the most common items to go on an inspection report is that the soil/mulch line is too high around the foundation. Since termites are a problem in our area, and they build mud tubes along the foundation to get into the wood frame of the home, inspectors like to see 4 to 6 inches of foundation to ensure there are no termite tubes. If your soil or mulch is too high around the house, they can’t see the foundation and they will report it. 

Hire your yard guys to rake back the soil and mulch from your foundation.

house inspection termite tubes

 

#10 – Fix Drainage and Gutter Issues 

Home inspectors are very picky about possible drainage issues. Make sure your yard is properly graded to drain water within 24 hours. If you have spots that tend to “puddle” for more than a day, then have them filled-in or install a proper drain. 

Also make sure your gutters are clear of debris. Home buyers don’t want to buy a home that needs a lot of attention like this and it’s easy enough for you to take care of before an inspection.

 

#11 – Repair and Paint Wood Rot & Caulk the Exterior Windows and Doors

Water is what typically damages a home. If you have any rotted wood around your home, have it replaced by a handyman. Also have a handyman or painter check every single exterior window and door of your home for separations and cracks and recaulk them as needed. 

 

#12 – Repair Roof Leaks Properly and Repair Ceiling Damage As Well

No one wants to buy a house with a bad roof. Plus, if the roof is really bad, then the buyer may not be able to get home insurance, which means they will not be able to buy your home. (Lenders will not loan money to buy uninsurable homes.) So fix any known roof issues in advance and professionally repair interior damage (water spots on ceilings or walls).

 

#13 – Repair Broken Glass in Doors and Windows

No one wants to buy a home that has broken windows. Carefully walk your home and inspect each and every window and door and have all broken glass replaced. It’s usually relatively inexpensive to do this. Also make sure all doors and windows open and close and lock properly.

 

#14 – Label “Unusual” GFIC Outlets and Light Switches

house inspection GFCIA ground-fault circuit interrupter (GFCI) is the only protection device designed to protect people against electric shock from an electrical system. Most of the time, these outlets are obvious with Test and Reset buttons. However, you can connect a regular outlet to an outlet with a GFCI so that it is protected, but it will not be obvious to the inspector. So if you know you have some outlets like this, especially in the kitchen or bathrooms, then clearly label those outlets and specify the GFCI outlet they are tied to. This is something that inspectors can’t just “know” by looking at it, so they will mistakenly report this on an inspection report.

 

#15 – Ensure Accessibility to Attic Doors, Garage Doors, Sprinkler Panels, Etc.

A home inspector cannot inspect what they cannot get to and they will not move things to obtain access. So make sure that your garage is not so packed with stuff that the attic door (if any), breaker box, garage door openers, electrical breaker box, or sprinkler control panel is blocked. Make sure no car is in the garage, blocking an attic door as well.

 

#16 – Inspect the Stucco Exterior and Resolve All Issues

Many home owners love the look of stucco, but it is really a terrible substrate to use for homes in a moist and humid climate like Houston. If you have a home with stucco, make sure you maintain it properly (and annually) because moisture in walls can cause serious problems…including mold hazards. Before listing your stucco home, have it inspected by a professional stucco inspector and make all repairs in advance.

The highest repairs I have ever seen in my 10+ years as a real estate agent added up to $14,000 in stucco issues.

 

 

Checklist: Sixteen “Must Do” Items To Prepare Your Home for Inspections

home-inspections-checklist

See Also:

FHA Repair Requirements and Guidelines for Loans

Pricing a Katy Home Correctly

 

by Sheila Cox, Five Star Realtor | Updated October 2025

Pricing a Katy home correctly is more complicated than simply comparing the list price to the sales price. Clients often ask me how much they should pay for a home, and I tell them, “It depends on how much it’s worth!” For example, if a house is listed at $450,000 and you get it at $400,000 that may seem like a good deal…but not if the market data says it’s only worth $350,000. (I’m using large numbers here to make the point.) Similarly, if a house is listed at $450,000 and you get it for $450,000, but the market data says it’s actually worth $500,000…then you got a  good deal, even though you paid “full price.” See what I mean? 

By the way…that new home specialist at the builder’s model home you like will tell you that the $440K model home was originally listed at $520K…sounds like a great deal, right? But they won’t tell you that the last five homes they sold, with that exact floorplan, had an average sales price of $400K. But I will! I’m looking out for you…not the builder.

 

Home Value Is Not About Price Per Square Foot

Pricing a Katy ome is complicated because real estate market data is changing every month…so home values are changing every month as well. In addition, there is not one price/sf price for an entire neighborhood. Smaller homes in the same neighborhood will typically have a higher price/sf than larger homes in the same neighborhood. Homes with swimming pools and water view lots are generally worth more in the same neighborhood than homes that don’t have those features. Three-car garage homes are worth more than two-car garage homes in the same neighborhood.

Pricing a home correctly is complicated…you can’t just work off of averages or price/sf. There is no “Kelly Blue Book” value for homes! When determining the value of a home, you should compare at least three to five recently Sold price (not asking prices) for homes that are comparable to the house you want. Comparable means the houses are all within the same size-range (+/- 10%sf), have a similar number of bathrooms, have similar garage sizes, have similar types of amenities and lot types, etc. Usually you will not find three to five homes that are exactly the same as the subject property, so adjustments must be made to the prices, and then the adjusted prices are averaged out. This gives you a good idea of a home’s current market value. See the example below.

CMA

By the way, cosmetic items such as granite counter tops, hardwood floors, updated light fixtures, special colors of paint…those items do not typically add value to a home. Appraisers do not make adjustments for most cosmetic items. They try to use Comps that match the home they are appraising. In other words, they don’t compare a “fixer upper” with a totally updated home. As much as possible, they compare “fixer uppers” to “fixer uppers.” So cosmetic adjustments are unnecessary.

New Construction Homes Cost More Than Comparable Resale Homes

New construction homes in a neighborhood make pricing a home correctly more challenging. Technically speaking, investing in a home is very different from investing in an automobile. Homes and real estate are generally “appreciating assets” while cars are generally “depreciating assets.” However, trust me when I tell you that no home buyer on the planet is going to pay the same price for a “used” one-year old home when they can buy a “fresh,” brand-new, never lived in home…where they get to choose all the finishes (paint colors, floors, counter tops, cabinets, etc.). Buyers like that “new home smell” just the same as they like that “new car smell.” And they are willing to pay a premium for the “new home smell” just like they are willing to pay a premium for the “new car smell.”

We all know a car loses value the minute you drive it off the car lot. Likewise, that a new construction home typically loses its value (at least in the short run) the minute that you move in. So do not compare new construction prices with a resale home prices when determining value.

And be prepared to sell your home for less than you paid for it if you bought it from a builder…at least until the builders move out of the neighborhood (and no new construction homes are available) or at least five years (or more) have passed since you bought it from the builder. It is almost impossible to compete on price with home builders when you are selling a resale home. They offer lots of “buyer incentives” to entice buyers to purchase…and they can offer a buyer something you can’t…a never-lived-in-home.

It can be hard to determine what new construction homes are selling for because builders do not always list them on the MLS. Since Texas is a non-disclose state, home builders can sell homes without ever reporting them to the MLS. This often conceals the fact that homes lose value after they are purchased by a builder. 

I know that some home sellers think their home is “better than new” because they have done this and that to the home. Home sellers like to price a home based on new construction home prices. But just like a used car, a used home is not usually worth as much to a buyer as a new construction home. 

 

Home Should Appraise for Sales Price

If you are like most home buyers, you are going to get a loan in order to buy a home. That means the lender’s appraiser is going to have a say in how much you can pay for a home. This is something that home buyers and sellers have to be reminded about. It really doesn’t matter if you are willing to pay $450,000 for a house if the lender’s appraiser says it’s only worth $420,000…unless you want to pay the $30,000 difference at Closing.

Remember that a lender is making an investment in you and your home when they loan you money to buy a house. They want to make sure the home is a good investment. They don’t want to invest more than the item is worth. Always keep this in mind when you are applying for a loan.

Always make sure you have a way to get out of the deal if the home doesn’t appraise for the sales price. That will give you leverage to renegotiate the price if the appraisal comes in too low. If you have a back-out addendum in place, and the appraisal comes in too low, then you have four options:

  1. Get the Seller to come down in price to the appraised value
  2. Meet the Seller somewhere in-between the sales price and the appraisal price (but you will have to pay your share of the difference at Closing)
  3. Pay the difference between the sales price and the appraisal value at Closing…on top of your other down payment and Closing costs
  4. Back out of the deal (but then you will not get back all the money you spend on inspections, appraisal, etc.)

Some people think they will be able to terminate a transaction if the appraisal comes in too low because they believe a lender will not approve the loan in that case. This is not, necessarily, true. If you have enough cash on hand to pay the difference, then the lender may still approve the loan.

 

Tax Appraised Values Do Not Equal Market Value

Pricing a home based on the “tax rolls” and tax appraised values does not work in Texas. Tax appraised values are usually not accurate for market value in this state. The following short video proves that the tax appraised value is usually (not always) lower than the market value.

 

Plus, Texas is a non-disclose state and only members of the MLS have actual sales data.

And even Zillow only gives themselves 1-star on their Zestimate’s accuracy (see here). 

zestimates not accurate

 Zillow’s algorithm was a huge failure with their iBuyer program! Why would anyone depend on a Zestimate?!

There is a method for doing a proper Comparative Market Analysis for a home that is similar to how a lender’s appraiser is going to determine a home’s value. Hire an experienced agent who knows what they are doing!

As your Buyer’s Agent, when you find a home you want to make an offer on, I do a complete CMA (Comparative Market Analysis) and provide you with the data that I have, to determine the realistic and accurate price for a home. This method is similar to how lender’s appraisers value a home. That way you don’t find yourself wasting a lot of time on a home that will not appraise for sales price.

Read more about “Buyer’s Agents”: The Agent Showing You Houses May Not Be Your Agent

 

Negotiating Price When It’s Too High

Often times a home is listed at a price that is considerably more than the CMA value. For example, a home that just hit the market may be listed at $550,000 and the CMA, which is based on comparable homes SOLD in the past six months) says it is only worth $500,000. But you, the Buyer, really want the house. What do you do? Well…

Neither the Buyer’s Agent or the Listing Agent can make a seller accept your reasonable offer. And if the house just hit the market, then it’s possible that the seller hasn’t “come to their senses” yet. Sometimes it takes time for a home seller to see that their home isn’t worth what they want for it. If the house sits on the market for months, then sellers either decide to lower the price (hopefully) or they take the home off the market, because they find out they can’t get what they want for it at the current time. (So they will wait.)

I have seen it time and again where a Buyer’s Agent shows the Listing Agent their data for the $500,000 offer and it doesn’t matter…until months go by. Then, eventually, the Seller finally sells the home at the price you offered (or lower)…after letting it sit on the market for 6 months. It is often the case that only TIME can motivate a seller to accept a reasonable offer.

So what do you do if you really want a house that is overpriced? 

  • Do you have time to wait? If so, give it a month or two and hope that another buyer doesn’t beat you to it. If you don’t have time to wait, then move on and find another home.
  • Pay the higher price. Sometimes it is worth paying more for a house to get what you want, when you want it. And besides…paying a higher price helps raise the prices in the neighborhood…thereby increasing the value of your investment.
  • Take a risk and offer the price the seller will accept while hoping the appraisal will come in low so you can renegotiate. Use the lender’s appraisal as your “checks and balances” for the price. This strategy can only work if you have the right to back out of the transaction if the appraisal comes in low. 

Sometimes an appraisal comes in much higher than what a Buyer’s Agent thinks the house will appraise for. This may be because the market has changed in the 4-6 weeks between the time the agent did the CMA and the time the appraisal is done..and more homes sold in that time. Or sometimes it seems that appraisers choose odd “Comparables” to make the appraisal come in higher (or lower). You just never know what a lender’s appraiser will do when valuing a home.

 

Negotiating Tips for Buyers

Here are some tips to help with negotiations:

  • Don’t let yourself “fall in love” with a house, making detailed plans for remodeling and decorating, before you have an executed contract. If you are emotionally attached to the home, then it will be harder for you to walk away from an over-priced home.
  • Don’t expect to get a seller to go down substantially in price when the house has only been on the market for a few weeks. Be willing to pay a reasonable price instead of getting a “killer deal” on a house that just hit the market.
  • Don’t low-ball a house in a HOT market when you may get in a competitive situation with other buyers. Be willing to pay a reasonable price (or slightly more) because other buyers will be willing to do so.

There is a funny saying in real estate: “You can’t fix stupid.” That’s just an irreverent way of saying that your Buyer’s Agent can’t prevent other buyers from overpaying for a home. Cash buyers commonly pay way too much for a home because they don’t have a lender’s appraisal holding them back. And you don’t know what the other buyer’s circumstances and motivation are…maybe they are too desperate to be conservative about price.

  • Always consider your “next best alternative” when making pricing decisions. If you are desperate to get a home because you have to move in six weeks, and you have been looking for several months without finding anything else that you like, then be willing to pay more to get what you want. Likewise, if you are not being forced to move in a short-time frame, or you have seen lots of other homes that you like, then you can be “stricter” with the price you pay for a house.
  • Do not take the CMA value of a home and then subtract from it all the cosmetic changes (paint, flooring, landscaping, pool, etc.) that you want to make to the home. It doesn’t work that way. Cosmetic items do not, generally, effect the value/price of a home. 
  • Remember that both CMAs and Appraisals are opinions of market value. If you have three different appraisers do an appraisal on the same home at the same time, you will probably end up with three, different values. 
  • Always remember that the price you pay effects the prices in the neighborhood where you are buying and investing. Driving too hard a bargain on your future home can have a negative impact on your home’s value too.

How’s the Katy Real Estate Market?
Get the Report!

katy market report smallWhat’s Included

  • Ten-year trend of median sales prices by ZIP Code and neighborhood…so you have a baseline in determining a home value.
  • Ten-year trend of sales volume by ZIP Code and neighborhood…so you can see which are the most popular neighborhoods.
  • Ten-year trend of median Days on Market by ZIP Code and neighborhood…so you can see how long it takes to sell a home in each area.
  • List of the most popular neighborhoods in the Katy area…see what neighborhoods are HOT!
  • List of the neighborhoods by price (high to low) in the Katy area.
  • Detailed market data on the most popular Katy neighborhoods

Download the Report!

arrow orange

 

Depositphotos 1372112 xs

Homestead Tax Exemption in Texas

As a homeowner in Texas, your Homestead Tax Exemption is a large exemption to reduce the amount of property taxes you pay. Applying for a Homestead Tax Exemption (more info) is a one-time activity in Texas that homeowners need to do the first year they buy a home…not something you do every year. The deadline is not until the first one-year anniversary of Closing on your home, however, you can do it now.
 
Your application must include a copy of your Texas Driver’s License or DPS Identification Card and the address on the driver’s license or identification card MUST be the same as the address on which you are filing an Application for Residence Homestead Exemption (because you can only get this exemption on ONE home you live in). Make an appointment to get your Texas driver’s license here.
 
Download the form to fill out and send in or you can eFILE it by clicking here. 
 
You can get the appraisal district’s name and number here: Fort Bend County Appraisal District
 
If you have questions, please call the Tax Assessor-Collector Office at 281-341-3710 or go to: https://www.fbcad.org/fbcad-forms/
 
More info…
 
>> Read more about Property Taxes in Texas

Katy Real Estate Market

Real Estate Terminology

Buyer’s Market vs. Seller’s Market

The  real estate market is constantly changing. The way we determine the type of real estate market we’re in (Buyer’s Market vs. Seller’s Market) is based on the amount of Inventory (homes available for sale) currently available. Six months of inventory is usually considered “equilibrium” —neither a Seller’s or Buyer’s Market. A Buyer’s Market is considered to be 7 months or more of inventory. This is where the demand for homes is somewhat less than the supply of homes and when Buyers may have more control over house prices than Sellers. A Seller’s Market is considered to be 5 months or less of inventory.  This is where the demand for homes is somewhat greater than the supply of homes and when Sellers may have more control over house prices than Buyers.

Months of Inventory

Months of Inventory refers to the number of months it would take to sell all of the currently listed homes on the market, with no new homes being added. This may also be called the “Absorption Rate” because it is the rate in which houses are “absorbed” in the current market. Generally speaking, if Inventory is greater than 6 months, then it is a “Buyers Market,” and if Inventory is less than 6 months, then it is a “Sellers Market.”

Months of Inventory =

# Active on the Market

(# Sold in Past 12 mths  ¸ 12 mths)

Cumulative Days On Market

How long it takes to sell homes can be a good indicator for “how’s the market”? The longer it takes to sell homes, on average, the slower the market. So if the cumulative number of Days on Market is increasing, then the market may be slowing down, and if CDOM is decreasing, then the market may be speeding up.

“Days on Market” refers to the days a specific home listing has been on the MLS. If the real estate agent Terminates the listing and then relists it with a new MLS number, then the DOM resets. However, the Cumulative Days On Market should show the total Days on Market for that particular home, regardless of the number of time it is terminated and relisted by one or more real estate agents.

Keep in mind that areas with lower-priced homes will usually sell faster than luxury-priced areas, because the more affordable the home’s price, the larger the number of potential buyers, and the quicker it can sell.

Median Price

Median Price is not the same as the Average Price; it is the middle point for real estate prices. The Median Price is the price in the middle of all the sales prices for a certain time-period, with exactly half of the houses priced for less and half priced for more.

It is generally believed that the Median Price is the best indicator for market activity because it is less affected by abnormally low prices or high prices (which skew the Average Price).

Overall Real Estate Market Data for 2021

The following data is for single-family properties Sold from January 1 to December 31, 2021. Keep in mind that # Active fluctuates daily and this report was put together in January 2022. The CDOM is the Median “Cumulative Days on Market.”

 

Area

ZIP

# Active

# Sold

CDOM

Median Price

Lowest Price

Highest Price

Months of Inventory*

Southwest 77494

77494

80

2755

6

$404,000

$150,000

$1,700,000

0.3

Northwest 77493

77493

142

1941

10

$325,000

$136,000

$1,350,000

0.9

Southeast 77450

77450

40

1208

7

$340,000

$134,000

$2,100,000

0.4

Southwest 77441

77441

133

888

14

$474,000

$205,000

$2,400,000

1.8

Northeast 77449

77449

33

861

6

$252,000

$120,000

$646,000

0.5

Southwest 77423

77423

66

540

14

$326,000

$85,000

$760,000

1.5

Northeast 77084

77084

53

513

6

$240,000

$125,000

$1,000,000

1.2

Southeast 77094

77094

6

162

11

$450,000

$221,000

$1,850,000

0.4

*Severe Housing Shortage: We should have 3-6 Months of Inventory in most of our Katy neighborhoods. With less than 1 Month of Inventory, we are is a HOT “Sellers Market” and buyers will have to pay top-dollar and request very little extra costs in order to “win” in a multi-offer situations. Make sure you line up a Strong Pre-APPROVAL letter with a good lender as part of your offer package.

Katy Real Estate Market Report 2022

The Katy Real Estate Market changes every month. To see recent data on the 10-year price trends, Days on Market, sales volume, months of inventory, and more, then DOWNLOAD the FREE  Katy Real Estate Market Report!

This information is not available on this website. 

Last update: January 2022

Download the FREE Report

Sales & Price Trends per
ZIP Code and Neighborhood

katy real estate market report
 

Includes Real Estate Market Data That You Won’t Find Anywhere Else!

What’s Included

  • Ten-year trend of median sales prices by ZIP Code and neighborhood…so you have a baseline in determining a home value.
  • Ten-year trend of sales volume by ZIP Code and neighborhood…so you can see which are the most popular neighborhoods.
  • Ten-year trend of median Days on Market by ZIP Code and neighborhood…so you can see how long it takes to sell a home in each area.
  • List of the most popular neighborhoods in the Katy area…see what neighborhoods are HOT!
  • List of the neighborhoods by price (high to low) in the Katy area.
  • Detailed market data on the most popular Katy neighborhoods

 

 

 

houseonmoney

Home Warranties

houseonmoneyWhen you purchase a resale home, you can purchase a home warranty (a.k.a., Residential Service Contract or RSV) that will protect you against most ordinary flaws and breakdowns for at least the first year of occupancy.  The warranty may be offered by either the Seller, as part of the overall package, or by the agent.  Even with a warranty, you should have the home carefully inspected before you purchase it.

A home warranty program will give you peace of mind, knowing that the major covered components in your home will be repaired if necessary.  Here are the major RSV providers:

 

NOTE
If you need help deciding, check out http://www.homewarrantyreviews.com/reviews but keep in mind that the bigger companies have more complaints because they have millions of customers and people are more likely to complain than express their satisfaction. “You can’t please all the people all of the time…”

I can say from personal experience that I no longer recommend First American Home Buyers Protection…they have terrible customer service these days and send terrible, low-quality vendors to perform the work.

 

priorfoundationrepair

Prior Foundation Repairs

Will Prior Foundation Repairs Effect a Home’s Resale Value?

In Texas, there is a saying that all houses here either have foundation repairs or will need them in the future. That’s because the soil in most parts of Texas is an “expansive soil” that significantly expands and contracts based on the level of moisture in it. And since Texas is known for either droughts or floods…our soil tends to expand and contract a lot.

Here is a must read for Texas home buyers: Buyer’s Guide to Slab-On-Ground Foundations by R. Michael Gray, P.E. and Matthew T. Gray, EIT.

That is why it is very important for homeowners to keep the soil around their home evenly watered. Water in the soil provides pressure to support the home. During a drought, the lack of moisture may cause a foundation to sag. Simply watering the soil can often push a slightly sagging foundation back up…no kidding!

Does having a prior foundation repair on a home effect the resale value? That’s a controversial question with no “scientific” data to prove one opinion or another. Some say that as long as the repair is done by a reputable foundation company and has a transferable lifetime warranty…no problem. It may even be considered a positive feature of the home, since the cost of the repair has been covered by a prior owner.

NOTE: If you need some brick or mortar repair in the Sugar Land area, contact JQ Brick at 713-253-5092…they do excellent work at very reasonable prices.

brickrepair
These kinds of cracks do not necessarily mean there are foundation issues…bricks and mortar crack very easily.
They do need to be resealed, however, with mortar (not caulk) to prevent water penetration into the side walls.
Call JQ Brick at 713-253-5092.

Others know that inexperienced home buyers may be scared of purchasing a home with prior foundation repairs…and will not even give such a home a second glance. So, by reducing the number of prospective buyers for a home this way, it could have a negative impact on the price per square foot that home can command. That would suggest that a home buyer should not pay a neighborhood’s top price/square foot for a home with prior foundation repairs…unless there are other special features that significantly override the foundation issues.

Read other opinions: