Mandatory Sales Price Disclosure in Texas

HB 2257 is a new bill to be enacted that requires the mandatory sales price disclosures of certain real estate transactions.  Texas has been a privacy state where the price paid for a piece of real estate is not of public record.

HB 2257 will require the report of the sales price to the following real estate transactions:

• Commercial Property ( property used for a business purpose)
• Multi Family Property( property with two or more residential units under one single ownership)
• vacant land

There is a civil penalty for anyone who violates this act.    This only applies to instruments recorded after September 1, 2009.

HB 2257

What does this mean for Austin Investment Property Owners?

It means that the taxes will definitely be going up.  Commercial properties are difficult to appraise on the mass appraisal method. This new law will make it easier for the tax appraisal district to make assumptions regarding similar properties.   Even if you purchased your property Before September 1, 2009 you can expect your appraised value to go up.  There is no 10% cap on the value of a property without a homestead exemption.

If you don’t know a good property tax consultant, it’s high time we all establish a relationship with one.  We are going to need them in the very near future.

Austin Investors:Fannie Mae or Freddie Mac may be rethinking loan limits for investors

In Austin, there  are real estate bargains to be had by bargain hunters but the mid sized investor has been side lined do to the 4 property limit imposed by Freddie Mae and Fannie Mac.

Freddie Mac Fannie Mae rethinking investor loan limits

The previous limit was 10 homes.  And most mid sized investors will easily reach the 4 home limit.  Your primary residence is counted in the 4 home limit.    This new limit pushed many small investors out of the game because they have to seek higher cost financing from non Freddie Mac/Fannie Mae sources.

At this point, we dont know which agency is rethinking the policy as we have not had any official communication from Fannie Mae and Freddie Mac.   I picked up on this rumor by respected Realty Times Contributor Kenneth Harney in his article  Investor Report:  Rethinking Controversial Limits .

Lets hope this is really going to happen.  PMI insurance wont underwrite investor properties — so investors have to put  down a 20% downpayment or find an expensive, elusive 2nd mortgage.  So the deals have to be really good to motivate an investor to take action.  If we can participate in favorable financing , that will sweeten the pot.