Today’s post is an abbreviated version of a Rismedia article:

“When deciding to undertake a remodeling project, there are several invaluable tips to keep in mind as you discuss your home make-over with potential contractors.

Through advice and stories shared by both contractors and consumers, StageofLife.com, a blogging resource for homeowners, discovered 10 important tips on how to find a trustworthy home remodeling contractor.

Tip #1: Does Your Contractor Have Proof of Insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can’t do this – stay away, do not use this company. The general contractor should also have active insurance cards for all subcontracters;  insist they be faxed or mailed to you as well.

Tip #2: Did You Check References and See Photos?
Ask for at least three references – with two of them being for the same type of project you are planning – and then call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project.

Tip #3: Does Your Contractor Take Debit or Credit Cards?
Besides your ability to earn a few points, bonus miles, or cash back on your project, a good sign that a contractor is financially savvy and has a bank behind his business is his ability to take debit and credit cards.

Tip #4: Manners and Appearance?
If the contractor drove his work vehicle to your home to give you an estimate, take a look at the way he keeps the equipment. Are things clean? Neatly arranged? The way a contractor treats his tools is a direct connection to how he’ll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees?

Tip #5: Clean Up Policy?
Ask about the clean-up policy. For example, if your home improvement is a multi-day project, will the contractor be cleaning up at the end of every day or will he leave the dust, wood chips, and other mess laying there?

Tip #6: Will the Contractor Put It In Writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not – walk away immediately.

Tip #7: Availability?
Can the contractor get the job done in your timeline? There’s nothing more frustrating than if a contractor tells you that a job will be done by a certain date and then it isn’t . On the flip side, if you can’t find a good contractor that’s willing to commit to your timeline, your expectations may be too high.

Tip #8: Does Your Contractor Use “Subs?”
Does your contractor plan on doing everything himself? Or will he “sub out” work to the “trades?” For example, if you are remodeling a bathroom, you may need a plumber, electrician, and carpenter. It’s okay if the contractor subs work out to these specific trades – it shows he wants the work done right.

Tip #9: Quoting & Billing Procedure?
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example – most contractors will charge you for a fuel surcharge, material up-charges, waste removal, labor, etc.

Also – what is the payment or billing policy? Is money required upfront? If so, go back to #1 and #2 above to make sure you have the contractor’s references checked and have a copy of his contractor’s insurance.

Tip #10: Did Your Contractor Get the Permits?
Ask your contractor to take care of the permits. Although permits cost you money, the inspection process is meant to protect you from poor workmanship and to make sure that everything is being built to code.

By following these 10 tips for hiring a home contractor, you’ll feel more confident that you’ve found the right contractor for your remodeling job.”

To to tour area properties, contact me at 713-818-2404 or via my website, FuellingKaty.com.

According to a recent study from the University of Texas at Austin, while foreclosures may “destabilize and disorganize” communities, they don’t directly affect crime rates.

David Kirk, assistant professor in the department of sociology at UT and the lead researcher on this study said, “Foreclosures do not indepentently affect crime. Rather, both foreclosures and crime are the products of similar community-level factors, which include a community’s clout, (or lack thereof), poverty and segregation.”

Derek Hyra, associate professor of urban affairs and planning at Virginia Tech, was the co-author of the study.  Crime and foreclosure data from Chicago during the period of 2000 to 2008 was calculated. During this time, foreclosures tripled. Research focused on the consequences of those rising foreclosure rates including effects on the community structure and crime statistics.

Kirk said. “We were able to statistically adjust for confounding influences such as segregation, the political hierarchy of communities and other unobserved factors predictive of both foreclosures and crime.”

To research foreclosures and to tour properties, contact me at 713-818-2404 or via my website, FuellingKaty.com.

Fifteen of the 16 Katy ISD schools serving the 7,600-acre Cinco Ranch master-planned community have earned the highest possible rating in the 2010 Accountability Ratings just released by the Texas Education Agency.

The 15 schools were all rated Exemplary, the highest of the four ratings assigned by the TEA.

An Exemplary rating means that a campus must have at least 90 percent of its students meet or exceed the Texas Assessment of Knowledge and Skills (TAKS) standard on each subject, including Reading, English/Language Arts, Math, Writing, Social Studies and Science.  A campus must also have a dropout rate of 2 percent or less to earn an Exemplary rating.

Taylor High School, the only school serving Cinco Ranch that was not rated Exemplary for 2010, received the TEA’s second highest rating, Recognized.

Katy ISD schools attended by Cinco Ranch students include eight elementary campuses: Creech, Exley, Fielder, Griffin, Kilpatrick, Rylander, Stanley and Williams. Middle schools include Beck, Beckendorff, Cinco Ranch, McMeans and Woodcreek. Students also attend Cinco Ranch and Seven Lakes high schools.

“Outstanding schools are a major reason why Cinco Ranch is the number one community in the nation for new-home sales in 2009, and we applaud the students, parents, faculty and all community members for their hard work and achievements,” said Heather Gould, marketing director for Newland Communities, developer of Cinco Ranch.

The 2010 TEA ratings are the latest good news about Cinco Ranch schools.  The 2010 “America’s Best High Schools” study by Newsweek ranked Cinco Ranch High School and Seven Lakes High School within the top 3 percent of the nation’s high schools.  The study ranked schools based on the number of students taking Advanced Placement, International Baccalaureate or Cambridge tests, divided by the number of graduating seniors.

To tour Cinco Ranch Homes, contact me via FuellingKaty.com. I have sold Katy real estate for 21 years and would enjoy touring Cinco Ranch together.

Nationwide, foreclosure inventory fell for the third straight month in June. Realty Trac, a subscription service that tracks U.S. foreclosure rates, reports that nationwide foreclosure filings last month dropped 2.81 percent from May’s statistics. This year’s national figures are down 6.98 from June 2009.

Katy has never suffered from the foreclosure disaster at the level plaguing  many other areas of the country. Still, there are opportunities to purchase a foreclosure in Katy with inventory on both sides of I-10.

Considering only houses in the Katy Independent School District, there are 24 houses in foreclosure on the southside of I-10 and 36 on the northside.

Most people are surprised to find out there are so many houses in foreclosure on the southside. The vast majority of these houses are in areas where prices are below $200,000. The total price range is from $79,900 all the way to $339,900. Neighborhoods include Wingate, Cimarron, Memorial Parkway, Governors Place, Cinco Ranch, Falcon Point, Grand Lakes, Nottingham Country, Seven Meadows, Firethorne and even Avalon at Seven Meadows.

On the northside of I-10, prices for foreclosures range from $59,900 to $184,900. Subdivisions include Westlake, Williamsburg, Silvermill, Bridgewater, Raintree Village, Lake Ridge, Barkers Ridge, Westfield and Lakecrest.

Don’t hesitate if you find a foreclosure you are interested in purchasing as those houses priced at a bargain receive multiple offers within days of being listed. Hesitation will lose the house as will an offer below list price; the majority of foreclosures that sell quickly sell above list price.

To research foreclosures and to tour properties, contact me at 713-818-2404 or via my website, FuellingKaty.com.

The date has been set, Saturday, August 14, for the opening of the new Katy HEB grocery. The store is located on the south-side of I-10 at the intersection of I-10 and Pin Oak.

The Katy Main Street project, of which HEB is the anchor store, is being developed by Woodcreek Development Company. Eventually, it will include retail shops, restaurants, banks, hotel and office space.  A Walgreen’s drugstore was the first business to open. The HEB gas station has a tentative opening date of July 21.

There are three other HEB grocery stores in the Katy area; locations can be found at the Grand Parkway at Fry Blvd; Mason Road at Highland Knolls; and, Fry Road at I-10. The new store will be extremely convenient to residents of Woodcreek Reserve, Firethorne, Old Katy, Pin Oak and the Falcon neighborhoods.

According to the Texas Association of Realtors, 1400 homes per day in the United States require flood insurance policies to close. The problem is that no new flood insurance has been written since May 31.

Even though we are in hurricane season, the National Flood Insurance Program has been unable to issue new policies, increase coverage, approve renewal policies or pay claims since the end of May.

Why? The most recent temporary extension, approved by Congress,  expired on May 31. The proposed extension of the National Flood Insurance Program is tied to a bill that would provide a temporary extension of unemployment benefits, COBRA health insurance subsidies, and highway and transit programs.

While the bill passed the House of Representatives prior to the June 1 deadline, the Senate defeated the bill in mid-June over concerns that the extension of benefits, those attached to the bill, would increase the federal deficit.

The National Flood Insurance Program was designed to be renewed every five years. However, since expiring in 2009, the program has received only temporary extensions of only 30 days to six months.

The Independent Insurance Agents and Brokers Association and the Property Casualty Insurers Association of America sent a letter to Congress that said, “The expirations have called into question the very stability of the program as a whole among consumers, agents and companies.”

For home purchasers, the first time home buyer’s and existing home owner’s tax credits were extremely popular. The $8,000 tax credit for first-time home buyers and the $6,500 tax credit for existing home owners applied to sales contracts signed no later than the end of April and closing no later than the end of June.

The program was so successful that pending home sales, (contracts signed but not yet closed), in April 2010 rose 22.4% (nationally) when compared to April 2009!  However, with increased underwriting turn times, (the time it takes for a mortgage to be approved), many people that met the requirement by signing a contract before the end of April will not be able to close in time.  Under the current law, they will lose their tax credit.

With the rush of contracts written, unfortunately, some home builders promised June delivery and they cannot meet that deadline. These buyers will also lose their tax credit. Additionally, there is growing concern that because of the time it takes for banks to complete transactions such as short sales, many of these home purchases would not be complete before the deadline through no fault of the home buyer.

Senate Majority Leader Harry Reid of Nevada, Senator Johnny Isakson of Georgia and Senator Chris Dodd of Connecticut have introduced an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that would extend the closing time from June 30 to September 30, 2010. It remains to be seen if the proposal will pass; I will keep you posted.

Note:  If you did not sign a purchase contract by April 30th, there is no extension for you. The proposed extension is only for those that signed a contract in time but just can’t close on time.

For more information, contact Julie Fuelling @ FuellingKaty.com.

Mortgage backed securities, see my article at FuellingKaty.com on Mortgage based securities (MBS), lost 69 basis points last week which caused 30-year fixed rates to increase for both government, (FHA and VA), and conventional loans.

According to Network Funding’s, a local mortgage lender with several locations, Weekly Mortgage Newsletter, “The prior week, mortgage rates were at their best levels of 2010.  MBS pricing decreased, (which causes mortgage rates to go up), due primarily to a rebound in the stock markets which pulled some money way from bonds.”

Financial indicators appear to show shows sign of economic expansion. This growth takes a toll on long-term bonds such as MBS.  However, it is very important to see the big picture: Mortgage rates remain at fantastic levels!

For specific rates, contact me at FuellingKaty.com. I will be happy to put you in touch with an experienced lender. I have sold Katy real estate for more than 20 years. Experience does count!

Have you visited higher-end new construction lately, particularly homes over $400,000? At this price, stunning outdoor kitchens are more a standard than an exception in Katy area model homes.

Buyers are greatly attracted to this feature and many Katy home buyers will pay the substantial price of adding an outdoor kitchen to their new home. Prices vary. Some buyers select the minimum features: An oven, refrigerator, sink and traditional barbeque pit. Others opt for many more upgrades.

Every Katy outdoor kitchen I have seen features stainless steel appliances. A large covered porch is standard. Most homeowners also have or add a pool.

According to RISmedia, ” “Homeowners want a space where they can entertain for large parties, cook meals for the family and comfortably enjoy the outdoors without leaving home.”

RISmedia goes on to state that a deluxe package might feature “a  summer kitchen, 96-inch projection screen, full wet bar, extended lanai, pool house, bathroom and outdoor family room.”

The RISmedia article discusses a family who remodeled their home to include all the above features plus outdoor furniture and decor. They spent in access of $90,000! I have never heard of  Katy homeowners spending this much money. Every builder and remodeler has their own price list; it is best to contact them directly. I Googled “outdoor kitchens Houston” and got quite a few links.

Like a swimming pool, the entire cost of an outdoor kitchen can rarely be recouped when selling a house. However, Katy houses with this much desired feature usually sell quicker than those without.

To tour houses, both new construction and resale, that feature outdoor kitchens contact me at 713-818-2404 or via email. I have sold Katy real estate for over 20 years. Experience does count!

The federal tax credit may have expired, but there are still many programs in Texas available for Katy home buyers. That’s why the Texas Association of Realtors® created TxHomePrograms.org, a searchable online database of homebuyer-assistance programs.

You  can find programs, such as down payment assistance and below-market interest rates, available only in Texas. Many, though not all, of the programs depend on household income and whether the consumer has owned a home in the last three years.

TxHomePrograms.org also has a glossary of real estate terms, outlines the home buying process, and provides information on issues that affect many first-time buyers, such as predatory lending and credit repair. There is a section with advice on how to avoid foreclosure.

Call me at any time, 713-818-2404, for more information. I am always happy to answer your inquiries. I have sold Katy real estate for more than 20 years.