New home starts in the Dallas/Ft Worth area are up more than 50% this year from the first six months of 2009. In addition, the number of new homes sold is also rising. The northern suburbs, including Frisco and McKinney, have shown the largest increases in starts.

Plano’s economy is holding strong despite the economic challenges in 2009. Plano ranked 5th in household spending, department store shopping, health care and restaurants. This is not the only strong news for Plano, the latest census data shows that Plano’s median household income is $84,493, the nations highest. Plano’s highly ranked schools, educated workforce, and employment opportunities have helped to keep the future looking strong.

Data through October 2009, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that the annual rate of decline of the 10-City and 20-City Composites improved compared to last month’s reading. This marks approximately nine months of improved readings in these statistics, beginning in early 2009.” The 1 year change for the Dallas area was -0.6%. Due to this slowing of housing price declines, the real estate market should stabilize this year.

10.  The worst mistake you can make is to not find, and use, a good Buyer’s Agent. Purchasing a home is the largest investment most people will make.  You need to have a qualified Buyer’s Agent with you every step of the way.  He can help you understand every aspect of the home buying process – financing, contracts, inspections, and closing.  He will look out for your best interests and help you find the home of your dreams.

9.  Doing too much too soon.  You’ve just moved into your new home and you’re ready to put your style stamp on it.  Don’t go into debt to do so.  Instead, create a plan and budget and make those changes when you can afford it.

8.  Failing to include an option period or contingency clause in the contract.  Always include a financing contingency clause in a real estate contract in case something happens and you don’t qualify for the loan or the house doesn’t appraise for the purchase price.  Also, in some states, there are option periods – typically a 7 to 14 day time period to allow the purchaser to have the house inspected.  A fee is paid for the unrestricted right to terminate the contract – no reason needed.  These clauses prevent the purchasers losing their earnest money.

Check back later for more.

7.  Skipping the Inspection.  Sellers aren’t likely to tell a Buyer what’s wrong with a home.  They probably aren’t even aware of some of the things that need to be repaired  To protect yourself, hired a qualified, licensed inspector to do a thorough inspection on the home you wish to purchase.  It will be worth it.

6. Assuming your first offer will be accepted.  With home prices becoming more affordable, more people are looking to buy.  You may encounter competition for a home you want so don’t get too discouraged if you lose out on a house.

5.  Failing to budget for property taxes.  Don’t forget to factor in property taxes (and the inevitable increases) into your budget.  Do a little research - find out if the tax rates have gone up or down over the last few years, as well as the assessed property values.  Be prepared.

4.  Underestimating the cost of owning a home.  Many home buyers don’t consider the cost of repairs and maintenance when they purchase a home.  Things break and need to be fixed.  Take a look at how well previous owners have cared for the home, as well as the age, before buying.  If available, consider purchasing a Residential Service Contract (or ask your Seller to pay for it).  These contracts could cover the cost of some repairs after closing.  Your utility costs may go up as well so take that into consideration when budgeting.  It would be wise to start a savings account for just such maintenance.

Check back later for #5.