Hydrostatic Testing

plumbing-840835_640You got your home under contract! You’re so excited, a buyer loves your home as much as you do! Then, inspections are set up. The three inspections typically performed on a home here are the general inspection, the pest inspection, and the plumbing inspection.

It’s this last one that seems to be an inspection that, as of late, has been causing some unease among sellers.

Fear not, sellers! The truth is, this is not at all a scary or intrusive test. But it is an important one. The only way to calm a fear or unease is to be well informed. Here I’ll break it down so that when the time comes, as either a buyer or a seller, this test is nothing to think twice about.

Definition: A hydrostatic test is a way in which pressure vessels can be tested for strength and leaks.

Don’t let the word pressure fool you. There is a common misconception that pressure is put on your system during this test. That is far from the truth. What the plumber does is quite simple. They will find your sewer cleanout/sanitary drain pipe and insert a testball/balloon into the piping and inflate it near the perimeter of the foundation. Next, they’ll simply fill the system up with water. They will then find a commode and/or shower on the lowest level and monitor the water levels. If the water maintains its level (they’ll typically watch for roughly 15 minutes) then there are no leaks! IF the water happens to fall, there is indication of a leak somewhere in the system.

Leaks often occur when foundations have shifted. Because we are built on sand here on the Island, it’s relatively rare to have a failed hydrostatic test as foundations move less on sand. In the case of a failed test, the next step is to find where the leak actually is. That test is slightly more involved, but still not dangerous to the system. An Isolation Test is what should be scheduled next, and this test finds the actual source of the leak. It’s smart to have a different plumber perform this test to eliminate the possible suspicion of an intentional failed test to get more business (as the isolation test is far more expensive).

The entire inspection/hydrostatic test takes roughly 20 minutes. Like a ninja in the night, you may not even know they were there! Our local plumbers are knowledgeable, true professionals who are happy to answer your questions or concerns.

Note: This test typically costs around $85, and only a licensed plumber is to perform this inspection.

Did you know? A hydrostatic test is DIFFERENT than a static test. They are sometimes accidentally interchangeably used in casual conversation regarding the plumbing inspection, and there’s where some confusion can occur in terms of whether pressure is put on your system during a hydrostatic test. A STATIC test is what indicates pressure, and you can do it yourself – it’s a gauge that you can purchase at any hardware store that you screw on to your hose bib. Then, turn the water on and the gage will tell you how much pressure it is outputting. Don’t let a static test be confused with a hydrostatic test.

CONSUMER BEWARE: Rebuilding after a disaster

contractors2With the flooding and other tragedies that have occurred across the state, it is important that consumers be aware of Chapter 57 of the Texas Business and Commerce Code that was enacted by HB 1711 effective September 1, 2011. The bill applies to contractors who remove, clean, sanitize, demolish, reconstruct, or otherwise treat improvements to real property as a result of damage or destruction to that property caused by a natural disaster. Specifically, it requires that a “disaster remediation” contract must be in writing and prohibits a “disaster remediation contractor” from requiring payment prior to beginning work or charging a partial payment in any amount disproportionate to the work that has been performed. However, the statute exempts contractors that have held a business address for at least one year in the county or adjacent county where the work occurs.

Please see the text of HB 1711 for details. Contact your local Home Builders Association for a list of contractors.

Download this document for important phone numbers and information on rebuilding after a disaster. (CLICK HERE TO GET YOUR PDF)

North Padre Island Canal Construction Underway

KiiiTV.com South Texas, Corpus Christi, Coastal Bend

KIIITv has recently reported on all the dirt moving around on the east side of Park Road 22. If you live in the area you have no doubt noticed all the heavy equipment moving sand on the Gulf side of Park Road 22. It is all connected to the Riverwalk-style development that is soon to be going up there and the planned bridge over Park Road 22.  Lots of excitement Developing here on North Padre Island, as the “Upper Padre” Development project is well underway.

Colleen McIntyre will not seek reelection

District 4 City Councilwoman Colleen McIntyre said Monday she has decided this will be her last term as a Corpus Christi City Council member.

McIntyre has accepted a position as the director of Seashore Middle School and as the superintendent of Seashore Charter Schools on Padre Island.

McIntyre told KRIS 6 News her new position makes it difficult to put in the time and effort to serve on City Council.

She has served for two terms.

“Being with all of the different groups in the community. Being able to help with… whether it’s code enforcement, animal control, zoning cases, all the different things that I’ve dealt with in the areas of the district I’ll miss that a lot,” said McIntyre.

Her term will end in November. via Kristv.com

We want to personally thank Ms. Colleen McIntyre of her dedication to city council over the past 2 terms. We truly have enjoyed her keeping an eye on padre island interests and much of the work she has completed and set into motion during her term. You will be missed, and we are excited for your new position to lead Seashore Middle Academy forward into an even more successful future. Thank you again for your service in our city government, we feel blessed to know you! ~Coastline Properties

CC voters face critical sales tax vote in November

KRISTV.com | Continuous News Coverage | Corpus Christi
CORPUS CHRISTI –

Plenty of issues will be in voters’ hands come November, including a pivotal decision on how to spend sales tax revenue.

Depending on the vote, a powerful city board that spends your money, may not exist next year.

An eighth of every cent you pay in sales tax funds the city’s Type A Board, which controls the Type A Fund.

We’re talking millions of dollars a year controlled by five people.

The board spends most of it on economic development. They also spend money on seawall repairs and the American Bank Center.

CLICK HERE: Projects funded by Type A Board

The board (fund) is up for renewal this year, and it’s up to the voters.

Jerry Sansing is president of the Corpus Christi Taxpayers Association. He plans on voting against it.

“I’ve seen too much money go down the drain. You know, we can’t fix streets. We can’t do this. We can’t do that, but we can certainly tax for everything under the sun,” he says.

Sansing would rather the city give that money back to the people, or spend it, in part, to cut down palm trees off Airline. The ones right by the Gulfway Shopping Center.

Sansing says they violate the Americans with Disabilities Act because they take up too much room on the sidewalk, and make it almost impossible for people in wheelchairs to get by.

But Type A Board member Bart Braselton points out the board’s numerous accomplishments, like landing Schlitterbahn with a $5 million deal in incentives.

“It competes with other cities, and when you know, when you’re having somebody that’s bringing say, anywhere from 500 to 1,000 new jobs to your city, the return on investment is incredible,” Braselton says.

Sansing says projects like Schlitterbahn don’t need the money.

Braselton points out other things the Type A Board has helped fund, like the Engineering Department at Texas A&M Corpus Christi, or the truck driving program at Del Mar College.

If residents vote to get rid of the board, it’ll be disbanded after any remaining money is spent.

If that happens, it’ll likely be up to the city council to decide how to re-allocate that portion of sales tax revenue every year.  Via KrisTv.com

Corpus Christi Chambers to Unite

hand-shake

Officials for the Corpus Christi and Hispanic chambers of commerce say their historic merger should wrap up in the next few weeks, and that they are just days from unveiling the new organization’s name.

A transition team consisting of members from each chamber’s board took less than a month to unify the groups and agree on a name for the new chamber.

The team is expected to notify the two boards of its recommendation in coming days. The name will be made public after they’ve voted on it, perhaps as early as the beginning of February, Alan Wilson, chairman of the Corpus Christi chamber, told the Caller-Times on Thursday.

Other details, including memberships and drafting bylaws, are being worked out but appear to be on pace for completion by the end of March, Wilson said.

“Everyone has been on board with making sure this (merger) is something positive for the entire region, for the entire community,” said Rosie Gonzalez Collin, chair of the Hispanic chamber.

Members of the chambers voted overwhelmingly Dec. 29 to unite their organizations. Supporters have said the move was necessary to eliminate overlap in membership and to keep Corpus Christi’s business landscape in line with the region’s energy and job growth.

The two chambers haven’t wasted time preparing for the unification since.

Executive board members of each group have met with Annette Medlin, who recently was named president and CEO of the Corpus Christi chamber. The Hispanic chamber is planning an official welcome ceremony for Medlin during its Feb. 25 “Mi Casa es Su Casa” women’s mixer.

Medlin fills a vacancy left by Foster Edwards, who retired.

Earlier this month, the Hispanic chamber announced Gilda Ramirez would remain its interim president, while taking on a full-time role as its vice president of small business, international outreach and education affairs. Ramirez is expected to work on staff of the new chamber once the transition is finished.

Twitter: @Caller_ChrisRam via Caller Times

6 Smart Reasons to Buy a Home in 2016

2016

Is it really 2016 already?  For those of you who happen to be planning on buying a home in the new year—or even just trying to—there’s a whole lot to celebrate. Why? A variety of financial vectors have dovetailed to make this the perfect storm for home buyers to get out there and make an (winning) offer. Here are six home-buying reasons to be thankful while ringing in the new year:

Reason No. 1: Interest rates are still at record lows

Even though they may creep up at any moment, it’s nonetheless a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%.

“Remember 18.5% in the ’80s?” asks Tom Postilio, a real estate broker with Douglas Elliman Real Estate and a star of HGTV’s “Selling New York.”“It is likely that we’ll never see interest rates this low again. So while prices are high in some markets, the savings in interest payments could easily amount to hundreds of thousands of dollars over the life of the mortgage.”

Reason No. 2: Rents have skyrocketed

Another reason home buyers are lucky is that rents are going up, up, up! (This, on the other hand, is a reason not to be thankful if you’re a renter.) In fact, rents outpaced home values in 20 of the 35 biggest housing markets in 2015. What’s more, according to the2015 Rent.com Rental Market Report, 88% of property managers raised their rent in the past 12 months, and an 8% hike is predicted for 2016.

“In most metropolitan cities, monthly rent is comparable to that of a monthly mortgage payment, sometimes more,” says Heather Garriock, mortgage agent for The Mortgage Group. “Doesn’t it make more sense to put those monthly chunks of money into your own appreciating asset rather than handing it over to your landlord and saying goodbye to it forever?”

Reason No. 3: Home prices are stabilizing

For the first time in years, prices that have been climbing steadily upward are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers, even in heated markets.

“Local markets vary, but generally we are experiencing a cooling period,” says Postilio. “At this moment, buyers have the opportunity to capitalize on this.”

Reason No. 4: Down payments don’t need to break the bank

Probably the biggest obstacle that prevents renters from becoming homeowners is pulling together a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs to help home buyers. For instance, the new Fannie Mae and Freddie Mac Home Possible Advantage Program allows for a 3% down payment for credit scores as low as 620.

Reason No. 5: Mortgage insurance is a deal, too

If you do decide to put less than 20% down on a home, you are then required to have mortgage insurance (basically in case you default). A workaround to handle this, however, is to take out a loan from the Federal Housing Administration—a government mortgage insurer that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85% of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you fund it this way. In fact, the FHA predicts this 37% annual premium cut will bring 250,000 first-time buyers into the market. Why not be one of them?

Reason No. 6: You’ll reap major tax breaks

Please, Mr. Postman Tax laws continue to favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! The biggest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners may also deduct certain home-related expenses and home property taxes.

via realtor.com

5 Real Estate Trends That Will Dominate 2016

real-estate-2016

This year may have marked the best for housing since 2007, but the market will likely get even rosier in 2016, according to a recent real estate forecast by realtor.com®. One of the main drivers behind the brighter 2016 is the projection that employment will continue to grow, which will add to consumers’ wallets and allow them to purchase their first home or upgrade to a new one.  Realtor.com® highlights the following housing predictions for 2016:

  1. ‘Normal’ is coming.

Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem—it’s just a return to normalcy,” writes Jonathan Smoke, realtor.com®’s chief economist. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”

  1. Generational buying trends shape up.

Young adults’ presence on the housing market has been largely predicted for years, but 2016 may finally be the year they make a move in a larger way. Millennials represented nearly 2 billion sales in 2015 – one-third of home buyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time home buyers next year. But two other generations will also have a big presence in 2016: financially recovering GenXers and older baby boomers who are entering retirement, realtor.com® notes. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,” Smoke notes. “Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

  1. New-home construction focuses more on affordability.

Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. In 2016, they likely will shift to more affordable product to cater to the entry-level buyers. “We are already seeing a decline in new-home prices for new contracts signed this fall,” notes Smoke. “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”

  1. Higher mortgage rates.

Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the new year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” The markets with the highest home prices will see the effects from the higher rates the most.

  1. Rents to go up even higher.

Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.”

Source: “The 5 Real Estate Trends That Will Shape 2016,” realtor.com® (Dec. 16, 2015)

THE REVERSE MORTGAGE, REVISED!

reverse-mortgage-corpus-christi

It’s no longer just a refinance tool, but now also for use with purchases!

First let’s review what a reverse mortgage is. It’s a loan available to homeowners who are at least 62 years old, where instead of making monthly payments to a lender, the lender makes payments to the borrower. The idea is to aid elders and retirees who have wealth in their homes, but have limited income, to cover their basic living expenses and health care expenses.

BUT there is a new program that we should know about. It is called the Home Equity Conversion Mortgage (HECM) for Purchase product. This can greatly enhance the real estate service options we can offer our senior customers who would like to purchase a new home while still maintaining their retirement goals. Many mortgage companies in our Coastal Bend now have departments offering this option, which could be valuable for many seniors looking to relocate closer to family members, downsize, upgrade, or move to an active adult community.

This is an exciting option for qualified homeowners who are purchasing a home. This mortgage option allows homeowners to keep the home in their name while not having any monthly payments.

Who qualifies?

If you are 62 or older, will use the home as your primary residence, have no federal debt delinquency, can pay annual property taxes and homeowners insurance, vow to keep the property presentable, the property meets FHA guidelines, and agree to participate in a counseling session, YOU are qualified!

So how does it work?

When bundling the HECM with a new home purchase, the buyer can buy the property by mixing the HECM loan proceeds along with the proceeds from their previous home sale and/or savings to complete the transaction.

For example: Charlie is looking to downsize. He receives $700,000 from the sale of his home. He buys a home for $300,000. HECM loans Charlie $160,000 ($10,000 to cover closing costs). Charlie puts $150,000 as his downpayment. The remaining $400,000 goes straight into Charlie’s pocket!

  • It involves financing that doesn’t require monthly principal and interest mortgage payments
  • It includes increased purchasing power for those who are upsizing or downsizing
  • It has a streamlined closing process as the buyers are purchasing and getting a HECM all in one transaction
  • It may include supplemental income to support a better retirement, including a growing line-of-credit

Repayment

Just like other loans, the HECM loan must be repaid. But it is unlike traditional loans in that this repayment isn’t due until the owner has sold the home, no longer uses it as their primary residence, or passes away. When one of these scenarios occurs, the HECM and any accrued interest and mortgage insurance must be paid, but the perk is that the homeowner will never pay more than the home’s market value at the time of repayment.

So run, don’t walk! Your dream retirement home is waiting…

Coastline Properties – The Face of Padre Island Real Estate

We are delighted to have been nominated “The Face of Island Real Estate” in this months Issue of The Bend Magazine.

It’s incredible to discover so many other community leaders that are making waves in the Coastal Bend by being dedicated to their profession.  We salute all those businesses out there that truly understand the nature of customer service and work so tirelessly to care for and understand their clients needs.  Thank You Corpus Christi!!

coastlinebend1  coastlinebend2

 

The Bend Magazine – November 2015