Is President Obama’s mortgage modification program helping Plano homeowners and is he doing enough to help people save their homes? Obama let congress take the bankruptcy modification bill out of the stimulus package. The $75 billion loan modification mortgage plan lacks teeth and is not very direct. The wording in the plan asks the banks to try and work with the home owners and try to give them some mortgage modification help or refinance them but there is no requirement to do so.
From a financial institution’s point of view they don’t want to do any mortgage modifications. They are in business to make money and they may lose money if they give modify home owners mortgages. This is where the plan makes little sense. These lenders need to be forced to help home owners. Our politicians just gave them the money and said to them please do the right thing. The government needs to stop giving these lenders money without telling them what to do with it. We are going into debt way beyond our generation, and the next generation for that matter, only to the benefit of the lenders. If we can get the money to the people that really need it then we have a chance of getting this mess turned around. If we put more money in the hands of the Plano home owners by lowering their mortgages and therefore giving them more disposable income they may have a chance.
Even in this challenging market there is an opportunity to buy Plano Real Estate. To get a better value you may want to consider looking into buying a Plano Foreclosure. Most of the Plano Foreclosures can be found by a Plano Realtor in the MLS. Due diligence, careful thought and a little faith will go a long way in finding that perfect Plano home that you will enjoy for many years to come. You may find out that it will turn out to be a great investment as well.
As with all major decisions you want to make sure you get all the information you can about a specific home and the community in which it is located and get the best advice possible. You will want to consider using the services of an experienced Plano Realtor who can help you with your due diligence, negotiations, and Handel all the details through closing. Depending on your personal circumstances may also want to consult an attorney and/or a tax advisor.
Tuesday, August 31, 2010
Do DFW Real Estate Agents Lie?
Integrity and honesty is of the utmost importance in any profession. This is especially true in the home buying and selling industry. When you buy or sell a home, you are likely handling one of the most substantial financial transaction of your life. The unfortunate thing is that the real estate industry is riddled with sales people with poor reputations. Similarly, as with lawyers and car salespeople because some agents don't know the difference between the truth and a lie. Much of the problem is that a large numbers of unscrupulous people believe that the real estate profession offers a fast track to easy money.
Which Agents Are Trustworthy?
The truth is about 10% of the agents do 90% of the business, and that top 10% are more likely to be the ones that buyers and sellers can rely upon and trust. Many home buyers and home sellers say they want their real estate agent to be honest, ethical, professional and experienced.
What Do Agents Lie About?
Most these agents lie about themselves. Real estate agents often misrepresent their experience, their credentials and almost everything else about them with their “I’m better than you attitude”. Many agents spend inordinate amounts of time posting information online to obtain maximum search engine exposure. Can you trust the agent's web site? Just because it's on the Internet doesn't mean it’s true.
Here are misrepresentations to look for on a real estate agent's web site:
• Experience
It is relatively easy for you to check to see if an agent has been licensed for as long as they say. In most cases it’s as easy as logging onto your State’s Real Estate Commission’s web site and typing in an agent’s name.
• Listings
Most agent web sites feature their active listings. You can also check their company’s web site for a link to their listings to determine whether that agent has any listings or not. Only a few agents, such as buyer broker agents, will not take any listings. Listings are the backbone of most experienced agents.
• Specialty
Agents generally advertise their specialty. An agent might claim to be a specialist at selling homes in a certain neighborhood. Or agents may try to market themselves as an exclusive home specialist by showing only high end homes on their web site but they have never sold a home in that price range. Other agents may say that they specialize in FHA but have yet to close an FHA transaction.
Whether you are looking to buy or sell a Plano For Sale By Owner, a DFW Foreclosure of a Dallas Loft make sure you take all of this into consideration so you don’t hire the wrong real estate agent. You don’t want to end up selling your home to one of those DFW We Buy Houses companies.
Which Agents Are Trustworthy?
The truth is about 10% of the agents do 90% of the business, and that top 10% are more likely to be the ones that buyers and sellers can rely upon and trust. Many home buyers and home sellers say they want their real estate agent to be honest, ethical, professional and experienced.
What Do Agents Lie About?
Most these agents lie about themselves. Real estate agents often misrepresent their experience, their credentials and almost everything else about them with their “I’m better than you attitude”. Many agents spend inordinate amounts of time posting information online to obtain maximum search engine exposure. Can you trust the agent's web site? Just because it's on the Internet doesn't mean it’s true.
Here are misrepresentations to look for on a real estate agent's web site:
• Experience
It is relatively easy for you to check to see if an agent has been licensed for as long as they say. In most cases it’s as easy as logging onto your State’s Real Estate Commission’s web site and typing in an agent’s name.
• Listings
Most agent web sites feature their active listings. You can also check their company’s web site for a link to their listings to determine whether that agent has any listings or not. Only a few agents, such as buyer broker agents, will not take any listings. Listings are the backbone of most experienced agents.
• Specialty
Agents generally advertise their specialty. An agent might claim to be a specialist at selling homes in a certain neighborhood. Or agents may try to market themselves as an exclusive home specialist by showing only high end homes on their web site but they have never sold a home in that price range. Other agents may say that they specialize in FHA but have yet to close an FHA transaction.
Whether you are looking to buy or sell a Plano For Sale By Owner, a DFW Foreclosure of a Dallas Loft make sure you take all of this into consideration so you don’t hire the wrong real estate agent. You don’t want to end up selling your home to one of those DFW We Buy Houses companies.
Frisco – All About History
When the Dallas area was being settled by European immigrants, many of the settlers traveled by wagon trains along the old Shawnee Trail. This trail was also used for cattle drives north from Austin. This trail later became the Preston Trail, and later, Preston Road. With all of this activity, the community of Lebanon was founded along this trail and granted a U.S. post office in 1860.
In 1902, a line of the St. Louis-San Francisco Railway was being built through the area, and periodic watering holes were needed along the rails for the steam engines. The current settlement of Lebanon was on the Preston Ridge and was thus too high in elevation, so the watering hole was placed about four miles (6 km) to the west on lower ground.
A community grew around this train stop. Residents of Lebanon actually moved their Frisco Houses to the new community on logs. The new town was originally named Emerson, but that name was rejected by the U.S. Postal Service as being too similar to another town in Texas. In 1904, the residents chose Frisco City in honor of the St. Louis-San Francisco Railway on which the town was founded, later shortened to its present name. As the City developed, the Frisco Home market became popular as Frisco provided several schools, several entertaining venues like skating, hiking, swimming and also provided for all the basic needs required by the Residents. There are several parks and picnic areas that are enjoyed by people of all ages and people love to live here. Frisco is beautiful, clean and the demand for buying Frisco Real Estate has become extremely popular.
There are several websites and companies who help interested home seekers find the home of their choice and have fulfilled the needs of several of their customers. These websites provide updated information about market values and show all the homes that are currently available. We can view the Frisco Neighborhood Profile, view photos and videos of the homes, find out the number of bed rooms, bath rooms and the basic amenities of the homes and neighborhoods from website like VIP Realty Platinum!
In 1902, a line of the St. Louis-San Francisco Railway was being built through the area, and periodic watering holes were needed along the rails for the steam engines. The current settlement of Lebanon was on the Preston Ridge and was thus too high in elevation, so the watering hole was placed about four miles (6 km) to the west on lower ground.
A community grew around this train stop. Residents of Lebanon actually moved their Frisco Houses to the new community on logs. The new town was originally named Emerson, but that name was rejected by the U.S. Postal Service as being too similar to another town in Texas. In 1904, the residents chose Frisco City in honor of the St. Louis-San Francisco Railway on which the town was founded, later shortened to its present name. As the City developed, the Frisco Home market became popular as Frisco provided several schools, several entertaining venues like skating, hiking, swimming and also provided for all the basic needs required by the Residents. There are several parks and picnic areas that are enjoyed by people of all ages and people love to live here. Frisco is beautiful, clean and the demand for buying Frisco Real Estate has become extremely popular.
There are several websites and companies who help interested home seekers find the home of their choice and have fulfilled the needs of several of their customers. These websites provide updated information about market values and show all the homes that are currently available. We can view the Frisco Neighborhood Profile, view photos and videos of the homes, find out the number of bed rooms, bath rooms and the basic amenities of the homes and neighborhoods from website like VIP Realty Platinum!
DFW Real Estate Careers
A DFW real estate career provides flexibility and freedom to set your own pace. Working in real estate allows for independence and choices of environment in which to work. Your income directly reflects your efforts, with no limits on what astute, hard-working men and women can earn. Successful people in real estate are goal-oriented, persevering, self-motivated, ambitious and people-oriented. The rewards of a real estate career are a potential for high earnings, status in the community, autonomy, time freedom, helping people, the intellectual challenge and the satisfaction from those accomplishments.
No matter if you are just thinking about a career in real estate, newly licensed or a veteran there are many real estate companies throughout the DFW area to choose from. There are still some mom and pop shops around and a slew of franchised shops biding for you to join them. Some of these brokerages have a 100% program, where you pay a monthly fee, sometimes steep, paying each month no matter if you close a transaction or not. Some offer a 50/50 split, taking half of your hard earned commissions but helping you out with advertising and support. There are brokerages out there offering everything in between, 80/20 split, transaction fee, flat fee, etc.
In this completive market it is imperative not only that the brokerage you sign up with has a strong web presence but that they optimizes their site for maximum traffic to obtain credible leads and lots of them. In this business if you don’t have leads you don’t have a business. One of these brokerages is VIP Realty Platinum, where you choose your commission!
With Plano Homes being a great value, more and more people want to live in this City. Plano ranked as the highest income City with a population of 130,000 or more in the year 2000. Plano was ranked the most affluent city in the United States with the lowest poverty rate of 6.3% for a city with a population exceeding 250,000. Its neighbor, Frisco, was ranked the richest city for the population of under 250,000 in the United States with a 2.7% poverty rate. Plano also has the highest median income in the nation at $84,942. Many real estate companies websites allow you to search for information about Plano Real Estate and some even contain information about the City of Plano.
DFW Real Estate Bubble?
As we know now there actually was a national real estate bubble but was there a bubble in the DFW Real Estate Market? There is no indication that there ever was a DFW Real Estate bubble. That’s why we are not experiencing a “bust” in the DFW Real Estate Market. Why? Because of a number of factual, economic-based realities about the DFW Real Estate market keeps the Metroplex as one of the strongest and most sought after metropolitan areas to live in the country. Take a look at any web site that gives you access to the DFW MLS. In the DFW MLS you can see that there are now more houses on the market and these houses are staying on the market a little longer but the reality is that the prices of DFW homes has held relatively steady and have actually increased in some areas. If these DFW homes are in good condition and price correctly they will still sell in a relatively short amount of time.
The DFW Metroplex consistently ranks high among the best places to live in the Western United States. DFW Real Estate has maintained its value over the past several years, while many other markets around the country have struggled. Ask any DFW Realtor and they will describe the DFW Real Estate market as Calm and Steady, “Steady as She Goes”. Calmer heads have always prevailed in the DFW area and we should expect the same in the future.
The DFW Metroplex consistently ranks high among the best places to live in the Western United States. DFW Real Estate has maintained its value over the past several years, while many other markets around the country have struggled. Ask any DFW Realtor and they will describe the DFW Real Estate market as Calm and Steady, “Steady as She Goes”. Calmer heads have always prevailed in the DFW area and we should expect the same in the future.
Monday, August 30, 2010
DFW Foreclosures and DFW Foreclosed Homes
Mortgage companies and banks own houses because they have acquired them through the foreclosures process. These homes are called REOs, short for Real Estate Owned. When banks obtain homes through the foreclosure process, in most cases, it is because no one at the foreclosure auction bided the minimum amount, usually the amount of the existing mortgage(s), unpaid interest, penalties and legal fees.
At first look, it may not seem as though foreclosures are a good deal. After all, if it was a good deal someone would have bought it at the foreclosure auction, right? Also, if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor maybe they are trying to sell it for more than it is worth? With all that said, here are two reasons why an REO can be a great deal “value” to you.
• If two loans were obtained to buy the property (which is very common these days), the second mortgage holder sometimes does not foreclose. If the second mortgage holder does not make up the back payments to the first mortgage holed, including and back interest, penalties and legal fees and file its own foreclosure proceedings, the second mortgage holder will get wiped out in the foreclosure proceedings of the first mortgage holder. Many second mortgages comprise 20% or more of original market value
• Not being in the real estate business the bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale the bank is likely to price that REO home for less, just to get rid of it and to get if off their books.
About REO Listing Agents
There are many web sites available to find DFW Real Estate and DFW Foreclosures, your DFW Realtor can also find them in the DFW MLS. If you ask your buyers agent to search MLS for "REOs," you will probably find that a very small handful of real estate agents specialize in listing REOs for sale in your neighborhood. Don’t take a chance on a Realtor that tells you “sure I specialize in REO property”.
Here are tips that will help you when searching for DFW REO listing agents:
• Most REO listing agents list only REOs, not other type of property.
• REO listing agents often give commission discounts to the banks and mortgage companies in return for their business, because these REO agents deal in volume.
• REO listing agents make money by either selling a lot of REOs or operating as a dual agent, both listing the home and assisting the buyer in buying the same home. In Texas this is known as an “Intermediary”.
• REO listing agents generally represent the seller, not the buyer but can operate as a dual agent.
• REO listing agents are typically top-producing agents because of the volume of business they conduct.
• Some REO listing agents are so busy that they hire assistants to handle calls.
About Hiring a Buyer's Agent
Unless you have direct experience negotiating with mortgage companies and banks, it will do you well to obtain representation by hiring your own buyer’s agent. Be sure you interview three buyer’s agents before you select one. Choose one that has a lot of experience with foreclosures and REO homes and one that is professional and you feel comfortable with.
• Buyer's agents have a fiduciary (legal) responsibility to protect your interests.
• Buyer's agents are usually paid by the seller.
• Buyer's agents represent you, not represent the seller.
• Buyer's agents may ask you to sign a buyer’s broker agreement, which will lay out the agent’s duties to you and it will also specify who pays the commission.
• Hire a buyer's agent who has experience working with REOs.
About Negotiating with REOs
If the listing is relatively new to the market the bank usually will not come down much from its asking price. You will have more negotiating power if you make offers on homes that have been on the market for longer than 30 days. Here are more tips:
• Banks negotiate bulk discounts with title and escrow companies. If you choose to use the bank's title & escrow company, check the fees that these companies are going to charge you. In general, fees not paid by the bank but paid by, you the buyer, will be higher because title & escrow often make up those discounts by charging buyers more.
• You will likely be asked to buy the home "as is." Make your offer subject to a home inspection. Generally, the bank will not make repairs but if a serious problem comes up during the inspection you will have the right to back out.
• Many banks are moving away from paying typical closing cost for the buyer. Some fees such as transfer taxes, county and state fees, are borne by the buyer and not the bank. Banks rarely will pay for pest inspections, repairs or home warranties.
• Expect the bank have you sign their purchase contract and/or addendum to your standard purchase contract. Read it thoroughly and ask a real estate lawyer for advice if you do not understand it.
• If the bank won't budge on your offer and you receive an offer rejection, wait another 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. Maybe this time the home will be yours.
• It may take 10 days, or more, to receive a response to your offer from the bank.
• The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank.
• If you cannot close by the predetermined closing date, in many cases, the bank will charge you a penalty for each day you pass the closing date. Make sure you have a loan preapproval letter from your own lender before submitting an offer. Without one the bank may not take your offer seriously.
At first look, it may not seem as though foreclosures are a good deal. After all, if it was a good deal someone would have bought it at the foreclosure auction, right? Also, if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor maybe they are trying to sell it for more than it is worth? With all that said, here are two reasons why an REO can be a great deal “value” to you.
• If two loans were obtained to buy the property (which is very common these days), the second mortgage holder sometimes does not foreclose. If the second mortgage holder does not make up the back payments to the first mortgage holed, including and back interest, penalties and legal fees and file its own foreclosure proceedings, the second mortgage holder will get wiped out in the foreclosure proceedings of the first mortgage holder. Many second mortgages comprise 20% or more of original market value
• Not being in the real estate business the bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale the bank is likely to price that REO home for less, just to get rid of it and to get if off their books.
About REO Listing Agents
There are many web sites available to find DFW Real Estate and DFW Foreclosures, your DFW Realtor can also find them in the DFW MLS. If you ask your buyers agent to search MLS for "REOs," you will probably find that a very small handful of real estate agents specialize in listing REOs for sale in your neighborhood. Don’t take a chance on a Realtor that tells you “sure I specialize in REO property”.
Here are tips that will help you when searching for DFW REO listing agents:
• Most REO listing agents list only REOs, not other type of property.
• REO listing agents often give commission discounts to the banks and mortgage companies in return for their business, because these REO agents deal in volume.
• REO listing agents make money by either selling a lot of REOs or operating as a dual agent, both listing the home and assisting the buyer in buying the same home. In Texas this is known as an “Intermediary”.
• REO listing agents generally represent the seller, not the buyer but can operate as a dual agent.
• REO listing agents are typically top-producing agents because of the volume of business they conduct.
• Some REO listing agents are so busy that they hire assistants to handle calls.
About Hiring a Buyer's Agent
Unless you have direct experience negotiating with mortgage companies and banks, it will do you well to obtain representation by hiring your own buyer’s agent. Be sure you interview three buyer’s agents before you select one. Choose one that has a lot of experience with foreclosures and REO homes and one that is professional and you feel comfortable with.
• Buyer's agents have a fiduciary (legal) responsibility to protect your interests.
• Buyer's agents are usually paid by the seller.
• Buyer's agents represent you, not represent the seller.
• Buyer's agents may ask you to sign a buyer’s broker agreement, which will lay out the agent’s duties to you and it will also specify who pays the commission.
• Hire a buyer's agent who has experience working with REOs.
About Negotiating with REOs
If the listing is relatively new to the market the bank usually will not come down much from its asking price. You will have more negotiating power if you make offers on homes that have been on the market for longer than 30 days. Here are more tips:
• Banks negotiate bulk discounts with title and escrow companies. If you choose to use the bank's title & escrow company, check the fees that these companies are going to charge you. In general, fees not paid by the bank but paid by, you the buyer, will be higher because title & escrow often make up those discounts by charging buyers more.
• You will likely be asked to buy the home "as is." Make your offer subject to a home inspection. Generally, the bank will not make repairs but if a serious problem comes up during the inspection you will have the right to back out.
• Many banks are moving away from paying typical closing cost for the buyer. Some fees such as transfer taxes, county and state fees, are borne by the buyer and not the bank. Banks rarely will pay for pest inspections, repairs or home warranties.
• Expect the bank have you sign their purchase contract and/or addendum to your standard purchase contract. Read it thoroughly and ask a real estate lawyer for advice if you do not understand it.
• If the bank won't budge on your offer and you receive an offer rejection, wait another 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. Maybe this time the home will be yours.
• It may take 10 days, or more, to receive a response to your offer from the bank.
• The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank.
• If you cannot close by the predetermined closing date, in many cases, the bank will charge you a penalty for each day you pass the closing date. Make sure you have a loan preapproval letter from your own lender before submitting an offer. Without one the bank may not take your offer seriously.
Houses of Allen – Details and Facts
The rate of growth in Allen has increased drastically and buyers and sellers should consult a well versed professional to help them sell their home at the highest possible sales price. The team of real estate professionals at VIP Realty Platinum is working to provide all the necessary details of the list of comparables sales, commonly known as “Comp’s” to helps buyers and sellers determine the value of their Allen Home.
The services offered by the VIP Realty Platinum Real Estate Team have been admired by all of their clients and they have a great reputation. Allen Houses have become more and more popular and the demands on the land are increasing. Allen population increases steadily due to its well planned development and job growth in the DFW area. At present there are number of homes available for buying and selling in Allen. When buying a home in Allen it is better to look for things that suit your lifestyle best. A home inspection is always a good idea before buying home. If you are selling set the best market price for your house so it will sell quickly.
The price range of Allen Real Estate ranges from $150,000 to $3,500,000 which proves its popularity and the demand of land. The Team is working together to provide professional real estate services for the residents of Allen. The team is working hard to provide all available, relevant real estate information to their clients that make them feel comfortable when navigating in the real estate world.
VIP Realty Platinum is known a state-of-the-art real estate firm leading the growing trend in the 21st century towards smaller and more personalized companies. Despite of high cost of living in Allen buying and selling real estates in this area has always been popular and there is always someone to love the house you are selling and they are buying.
Negotiate with Plano REOs and Plano Foreclosures
Negotiate with Plano REOs
In the real estate arena Real Estate Owned (REO) are when a bank or mortgage company has gone through the foreclosure process, no one bought it at the foreclosure action and the bank became the owner of that property. Now the bank must sell that property. If the listing is relatively new on the market, it is most likely that the bank will not come down much, if any, from its asking price. You will have greater negotiating power if you go after homes that have been on the market for more than 30 days. Follow these tips:
· Most lenders and banks are moving away from paying typical buyer closing cost. Many fees such as transfer taxes, county and state fees, are due by the buyer and not the bank. Generally, banks do not pay for pest report, repairs or warranties.
· Banks negotiate bulk discounts with escrow and title companies. If you decide to use the bank's title or escrow company, review the fees that those companies will be charge you. Usually, fees not paid by the bank but by the buyer will be higher because title and escrow often make up those discounts by charging buyers more.
· Many banks will not sign a counter offer until all terms are mutually agreed upon between the parties verbally.
· Generally the banks will allow Board of Realtor contracts to be used but special addenda provided by them must be attached to the standard purchase contract. Read it thoroughly and ask a real estate attorney for advice if you do not understand it.
· If the bank won't budge on your offer and you receive a rejection, wait 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted.
· You might wait 10 days, or more, for a response to your offer from the bank. You must be patient as you are usually dealing with a conglomerate, not a regular seller.
· The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank.
· If you cannot close by the predetermined closing date, the bank may charge you a penalty for each day you pass that date. Make sure you have a pre-approval letter from your own mortgage company before you submit an offer.
There are drawbacks to buying an REO or Plano Foreclosure , like waiting for a long time to get a response from the bank. Many of these homes are dirty and in disrepair. You will be asked to buy the home "as is." You can make your offer subject to a home inspection. Although the bank will not do any repairs you will have the right to back out if the home inspection reveals some serious defects. The best way to protect you while navigating through the Plano TX Real Estate market is to retain the services of a professional Plano Realtor .
Saturday, August 28, 2010
Preparing to Buy DFW Real Estate
When it comes to buying DFW Real Estate, proper preparation is a necessity to your success. You don't want to find yourself in a neighborhood that isn’t as nice or as safe as you had thought. You also don't want to be house poor, making high mortgage payments on a house and not being able to enjoy it. On the flip side, you don't want to fall in love with a home you can't afford? So what do you do? Do your due diligence and Prepare!
You can start the DFW home buying process by preparing a plan for your purchase and referring to it throughout the process. This will help to prevent you from missing an important item or being uninformed on an essential part of the process. Your plan will not only be an aid in buying your home, it will help you to take advantage of all of the home buying information that is available. One of the most important DFW home buying tasks is to determine your wants and needs. It can help you to avoid disappointment or the pain of buying more house than you can afford. Separating your wants from your needs will help you prevent costly mistakes in the home buying process. Establishing basic parameters and sticking to them will be invaluable to the process. When home hunting, it is easy to let your emotions take over, in the moment and you could end up with more home than you can comfortably afford. Review your mortgage options early in the process. Don't wait until after you have found the right home to begin exploring your financing options. Having your mortgage options clear before looking for a home will strengthen your negotiations powers when it is time to write an offer for the home you choose. If you are in a situation where another buyer is interested in the same home as you are, you will have the advantage if you are the one who has been prequalified for a mortgage.
Chances are that you will be working with a DFW Realtor when you start looking for DFW homes for sale. Before you go on a house search, have your Realtor provide you with the listing information from the DFW MLS and familiarize yourself with the facts of each home. Also before starting your DFW Real Estate search make sure you know how agents work and most importantly, who they represent. Many DFW home buyers have made the mistake of assuming that the Agent they were working represented them in the transaction, when, they actually represented the seller.
You can start the DFW home buying process by preparing a plan for your purchase and referring to it throughout the process. This will help to prevent you from missing an important item or being uninformed on an essential part of the process. Your plan will not only be an aid in buying your home, it will help you to take advantage of all of the home buying information that is available. One of the most important DFW home buying tasks is to determine your wants and needs. It can help you to avoid disappointment or the pain of buying more house than you can afford. Separating your wants from your needs will help you prevent costly mistakes in the home buying process. Establishing basic parameters and sticking to them will be invaluable to the process. When home hunting, it is easy to let your emotions take over, in the moment and you could end up with more home than you can comfortably afford. Review your mortgage options early in the process. Don't wait until after you have found the right home to begin exploring your financing options. Having your mortgage options clear before looking for a home will strengthen your negotiations powers when it is time to write an offer for the home you choose. If you are in a situation where another buyer is interested in the same home as you are, you will have the advantage if you are the one who has been prequalified for a mortgage.
Chances are that you will be working with a DFW Realtor when you start looking for DFW homes for sale. Before you go on a house search, have your Realtor provide you with the listing information from the DFW MLS and familiarize yourself with the facts of each home. Also before starting your DFW Real Estate search make sure you know how agents work and most importantly, who they represent. Many DFW home buyers have made the mistake of assuming that the Agent they were working represented them in the transaction, when, they actually represented the seller.
Finding a Professional Plano Realtor
When someone is ready to sell their Plano home, they should interview three Plano Realtors to determine which of them will do the best job for them. They are looking for someone who will represent their interest and someone they feel will do an effective job at marketing their home to get it sold for the most amount of money in the shortest amount of time. When someone decides to buy a home, however, they usually end up finding their Realtor by “accident”. Plano home buyers should search for a Plano Realtor the same way that home sellers do. Instead, most homebuyers usually end up with a Realtor as a result of inquiring about a home they saw online. The online ad only gives a brief summary of a home for sale along with the price, but it tells you nothing at all about the Realtor and their qualifications.
Selling Agents and Listing Agents
There are two sides to every sale, the selling side and the listing side. Most transactions have an agent representing each side. The buyer's side is represented by the selling agent (also known as the buyer's agent). The seller's side is represented by the listing agent. Agents can deal with both buyers and sellers, but the majority of them tend to focus their efforts on one side or the other. Some exclusively handle either sellers or buyers. Your Plano Realtor is vital to your Plano Real Estate search. They can help you locate any Plano home on the market even if it is a Plano Foreclosure or even a Plano FSBO. You should take as much time and effort to hire a real estate agent as you would for any other professional. Ask questions. Ask about education and experience. Buying a house is more than likely the biggest purchase you will ever made in your life. Does it make more sense to find your agent by accident, or by design?
Selling Agents and Listing Agents
There are two sides to every sale, the selling side and the listing side. Most transactions have an agent representing each side. The buyer's side is represented by the selling agent (also known as the buyer's agent). The seller's side is represented by the listing agent. Agents can deal with both buyers and sellers, but the majority of them tend to focus their efforts on one side or the other. Some exclusively handle either sellers or buyers. Your Plano Realtor is vital to your Plano Real Estate search. They can help you locate any Plano home on the market even if it is a Plano Foreclosure or even a Plano FSBO. You should take as much time and effort to hire a real estate agent as you would for any other professional. Ask questions. Ask about education and experience. Buying a house is more than likely the biggest purchase you will ever made in your life. Does it make more sense to find your agent by accident, or by design?
Why Buying a Dallas Home is a Good Idea
Individualism & Freedom in Your Own Domain
When you rent a Dallas home, you are usually limited on what you can do to improve or upgrade your home. You must get permission to make certain types or any type of improvements. Either way it doesn’t make sense to spend good money painting, replacing carpet, tile or window coverings when the only person who will benefit from it in the end is the landlord and not you. Since your landlord wants to keep his expenses as low as possible, they will probably not spend much to improve or upgrade the home either.
When you own your own Dallas home you can do whatever you want to the property, it’s your property. You get all the benefits of any improvements, upgrades and additions you make. One of the biggest benefits you get is that you get to live in an environment you have created, not one created by some cheapskate landlord.
More Space – Your Space
Generally, you will probably have more space if you own your own home, both indoors and outdoors. Even moving to a condominium from an apartment unit, you are likely to find that you have much more room available for all your things. You may also find that you have your own laundry and storage area, and bigger rooms throughout. Most apartment complexes are more interested in creating the maximum number of income producing apartments than they are in creating space for their tenants.
If you are moving to your own home for the first time, you will be very pleased with all the new space you will have available. You may have to even buy more "stuff" to fill all that space. Make sure you hire a professional Dallas Realtor to find you a home that is just right for you. They have access to the powerful Dallas MLS and can find you a great deal on a Dallas Foreclosure. In many circumstance they can help even help you with a Dallas FSBO making sure you use the proper paper work and that you receive the applicable legal notices and disclosures from the seller.
When you rent a Dallas home, you are usually limited on what you can do to improve or upgrade your home. You must get permission to make certain types or any type of improvements. Either way it doesn’t make sense to spend good money painting, replacing carpet, tile or window coverings when the only person who will benefit from it in the end is the landlord and not you. Since your landlord wants to keep his expenses as low as possible, they will probably not spend much to improve or upgrade the home either.
When you own your own Dallas home you can do whatever you want to the property, it’s your property. You get all the benefits of any improvements, upgrades and additions you make. One of the biggest benefits you get is that you get to live in an environment you have created, not one created by some cheapskate landlord.
More Space – Your Space
Generally, you will probably have more space if you own your own home, both indoors and outdoors. Even moving to a condominium from an apartment unit, you are likely to find that you have much more room available for all your things. You may also find that you have your own laundry and storage area, and bigger rooms throughout. Most apartment complexes are more interested in creating the maximum number of income producing apartments than they are in creating space for their tenants.
If you are moving to your own home for the first time, you will be very pleased with all the new space you will have available. You may have to even buy more "stuff" to fill all that space. Make sure you hire a professional Dallas Realtor to find you a home that is just right for you. They have access to the powerful Dallas MLS and can find you a great deal on a Dallas Foreclosure. In many circumstance they can help even help you with a Dallas FSBO making sure you use the proper paper work and that you receive the applicable legal notices and disclosures from the seller.
DFW Home Buying Trends
Home Buyers Spend More to Live in and near the City
Generally, urban infill developments command higher sales prices than homes located in the suburbs. Many home buyers are willing to pay a premium to be located near work, restaurants and nightlife. This partly due to high gas prices and people tire of long commutes and the related expenses. Some newer developments are selling for even higher prices. But these developments are located near shopping, businesses, art galleries, bars and gourmet cafés, which satisfy the wants and needs of those buyers. Some buyers do not own a car and depend on walking and public transit to get around the city.
Modern Designs
Newer homes are designed with simple, clean lines, offset by decorative lighting fixtures such as drop pendants, hand-crafted balls or hidden light sources. Some designers use creative built-ins that double to house large flat-screen televisions, which swivel between two rooms, or double-sided fireplaces that add character to the home. Granite counters are still popular but are beginning to lose appeal, perhaps because so many homes have them they are not special anymore. Buyer’s preferences are leaning toward sinks that are larger, flatter and built-in to the vanity. Rain shower heads are installed in ceilings instead of walls. Soft, cooler earth-tone colors are on the comeback. The colors are more relaxing. There is a lot of blue, gray, tan and green and less of the warmer colors such as yellow, red or orange.
Green homes are becoming more and more popular, featuring solar energy, natural fiber or eco-friendly wood flooring, compact fluorescent lighting and energy-efficient high-end appliances. Some homes even have a place in their garages to plug in an electric car.
Lofts Gaining Popularity
In many downtown areas, lofts are the design of choice. They offer work-live spaces, which are generally multi-level. The first floor is often an open space that can be used as an office, warehouse or commercial place of business. The upper floors feature floor-to-ceiling glass windows -- views are highly desirable -- exposed ventilation and duct work, with fewer walls separating living spaces such as bedrooms, living rooms or kitchens. Loft designs make the kitchen work area more compact and efficient. Appliances are smaller in dimensions. Many appliances blend with sleek European cabinets. A professional DFW Realtor will help you find a downtown loft that meets your needs.
Professional Singles are Teaming Up
Single professionals are teaming up to buy downtown DFW Real Estate together, especially those that offer two master suites. Higher prices make qualifying on a single income more difficult. Some single people find that it's easier to pay half of a mortgage than the whole mortgage on their own and it makes financial sense, particularly if half the mortgage is equivalent or close to the amount of a monthly rental. Singles are attracted to downtown areas that offer walking distance to work, shopping and nightlife attractions.
Home Buyers Desire Smaller Homes
Many baby boomers who live outside the city often decide to move back after their children grow up and leave home. They find that they have to much living space, too much upkeep and too far away from downtown attractions and easy of getting around. Many of these buyers would like to downsize and make do with a smaller space that is newer and offers more conveniences, than live in a larger suburban home not convenient to the city. The DFW MLS system is paramount in locating the home of your choice.
Generally, urban infill developments command higher sales prices than homes located in the suburbs. Many home buyers are willing to pay a premium to be located near work, restaurants and nightlife. This partly due to high gas prices and people tire of long commutes and the related expenses. Some newer developments are selling for even higher prices. But these developments are located near shopping, businesses, art galleries, bars and gourmet cafés, which satisfy the wants and needs of those buyers. Some buyers do not own a car and depend on walking and public transit to get around the city.
Modern Designs
Newer homes are designed with simple, clean lines, offset by decorative lighting fixtures such as drop pendants, hand-crafted balls or hidden light sources. Some designers use creative built-ins that double to house large flat-screen televisions, which swivel between two rooms, or double-sided fireplaces that add character to the home. Granite counters are still popular but are beginning to lose appeal, perhaps because so many homes have them they are not special anymore. Buyer’s preferences are leaning toward sinks that are larger, flatter and built-in to the vanity. Rain shower heads are installed in ceilings instead of walls. Soft, cooler earth-tone colors are on the comeback. The colors are more relaxing. There is a lot of blue, gray, tan and green and less of the warmer colors such as yellow, red or orange.
Green homes are becoming more and more popular, featuring solar energy, natural fiber or eco-friendly wood flooring, compact fluorescent lighting and energy-efficient high-end appliances. Some homes even have a place in their garages to plug in an electric car.
Lofts Gaining Popularity
In many downtown areas, lofts are the design of choice. They offer work-live spaces, which are generally multi-level. The first floor is often an open space that can be used as an office, warehouse or commercial place of business. The upper floors feature floor-to-ceiling glass windows -- views are highly desirable -- exposed ventilation and duct work, with fewer walls separating living spaces such as bedrooms, living rooms or kitchens. Loft designs make the kitchen work area more compact and efficient. Appliances are smaller in dimensions. Many appliances blend with sleek European cabinets. A professional DFW Realtor will help you find a downtown loft that meets your needs.
Professional Singles are Teaming Up
Single professionals are teaming up to buy downtown DFW Real Estate together, especially those that offer two master suites. Higher prices make qualifying on a single income more difficult. Some single people find that it's easier to pay half of a mortgage than the whole mortgage on their own and it makes financial sense, particularly if half the mortgage is equivalent or close to the amount of a monthly rental. Singles are attracted to downtown areas that offer walking distance to work, shopping and nightlife attractions.
Home Buyers Desire Smaller Homes
Many baby boomers who live outside the city often decide to move back after their children grow up and leave home. They find that they have to much living space, too much upkeep and too far away from downtown attractions and easy of getting around. Many of these buyers would like to downsize and make do with a smaller space that is newer and offers more conveniences, than live in a larger suburban home not convenient to the city. The DFW MLS system is paramount in locating the home of your choice.
Plano Home Owners Insurance
It is a good idea, and required by your lender, to carry at least a basic homeowner’s insurance policy on your Plano home. A basic policy protects the owner against property damage that may result from lighting, fire, wind or hail. It will also cover cost for motel and food if you are forced out of your home while such damages are repaired.
A basic home owner’s insurance policy will also cover against loss from vandalism or theft and will usually allow for reimbursement for personal property destroyed in many natural disasters. One of the most important parts of a home owner’s policy is that it will provide for liability coverage for lawsuits brought against the owner by others who were injured on the property. This coverage includes the cost of legal defense up to the pre-set policy limit. Most policies will have a provision that will cover the basic medical expenses for the parties as well.
Homeowners insurance is always required by mortgage companies with the purchase of a home. It is required because the mortgage companies’ investment is almost as big for them as it is for the Plano real estate owner. They need to make sure the property is protected from major damage so that if they become the owner of the property through an unfortunate Plano foreclosure the property will be of sufficient value that they can re-sell the property through an aggressive Plano Realtor and re-coupe their money. Even if you own your home outright, a good insurance policy is still the best way to protect the value of your home.
A basic home owner’s insurance policy will also cover against loss from vandalism or theft and will usually allow for reimbursement for personal property destroyed in many natural disasters. One of the most important parts of a home owner’s policy is that it will provide for liability coverage for lawsuits brought against the owner by others who were injured on the property. This coverage includes the cost of legal defense up to the pre-set policy limit. Most policies will have a provision that will cover the basic medical expenses for the parties as well.
Homeowners insurance is always required by mortgage companies with the purchase of a home. It is required because the mortgage companies’ investment is almost as big for them as it is for the Plano real estate owner. They need to make sure the property is protected from major damage so that if they become the owner of the property through an unfortunate Plano foreclosure the property will be of sufficient value that they can re-sell the property through an aggressive Plano Realtor and re-coupe their money. Even if you own your home outright, a good insurance policy is still the best way to protect the value of your home.
Friday, August 27, 2010
Your DFW Real Estate Escrow
What is Escrow? The simple explanation of Escrow is a deposit of money, a deed or other written document by one party of a transaction, for the delivery to another party, in the same transaction upon completion of a particular event or condition. The Texas Escrow Law provides the legal definition.
Do you need an Escrow when buying DFW Real Estate? No matter if you are the seller, buyer, or lender you will want the assurance that no property or funds will change hands until All of the instructions in the transaction have been followed and completed. The escrow company has the obligation, to all the parties, to safeguard the funds and/or documents while they are in their possession and to disburse funds and/or convey title to Dallas Real Estate only when all provisions of the escrow have been complied with.
The way Escrow works: The principals to the escrow transaction, the buyer, seller, and lender create the escrow instructions, usually in writing, to be created, executed and delivered to the escrow officer. If a Professional DFW Realtor is involved, he or she will normally provide the escrow officer with the information necessary for the preparation of the escrow instructions and documents. The escrow officer will process the escrow, in accordance with the instructions and when all of the conditions required in the escrow are met the escrow will be "closed." Each escrow, although similar in many ways, will be different in some respects, as it deals with your DFW property and the specific transaction. If you are purchasing a DFW Foreclosure Home it is especially important to have the title work securitized by a seasoned escrow agent. It is the right of the principals to use an escrow company who is experienced and competent in handling the type of escrow transaction in which you are involved.
In this ever changing real estate environment you can rest assured, be confident and move forward with a DFW home purchase if you study the market in your area, understand your financing options and get sound advice from real estate professionals.
Do you need an Escrow when buying DFW Real Estate? No matter if you are the seller, buyer, or lender you will want the assurance that no property or funds will change hands until All of the instructions in the transaction have been followed and completed. The escrow company has the obligation, to all the parties, to safeguard the funds and/or documents while they are in their possession and to disburse funds and/or convey title to Dallas Real Estate only when all provisions of the escrow have been complied with.
The way Escrow works: The principals to the escrow transaction, the buyer, seller, and lender create the escrow instructions, usually in writing, to be created, executed and delivered to the escrow officer. If a Professional DFW Realtor is involved, he or she will normally provide the escrow officer with the information necessary for the preparation of the escrow instructions and documents. The escrow officer will process the escrow, in accordance with the instructions and when all of the conditions required in the escrow are met the escrow will be "closed." Each escrow, although similar in many ways, will be different in some respects, as it deals with your DFW property and the specific transaction. If you are purchasing a DFW Foreclosure Home it is especially important to have the title work securitized by a seasoned escrow agent. It is the right of the principals to use an escrow company who is experienced and competent in handling the type of escrow transaction in which you are involved.
In this ever changing real estate environment you can rest assured, be confident and move forward with a DFW home purchase if you study the market in your area, understand your financing options and get sound advice from real estate professionals.
Why you should invest in your first Plano home
It is common that many first-time homebuyers get nervous about making the commitment to purchase a home. After all, your are committing to pay a large sum of money for up to 30 years. This is a big decision that leaves many first-time homebuyers wondering if they should take that leap of faith or not. I assure you it is normal to be nervous about purchasing your first home. To ease your nerves, Plano Realtors have provided a list of the benefits of homeownership. Whenever you feel nervous searching for your first home, on the Plano MLS , make sure to keep in mind the many benefits of home ownership:
1. Appreciation – Real estate, even going through a down cycle, consistently appreciates. A home is also an investment, a investment in your future.
2. Pride of Home Ownership – The main reason that first-time home buyers purchase a home is because they want to experience the pride of being homeowners. When you own your own home you have the freedom to paint the rooms any color, increase the volume of your radio without worrying, decorate any way you want and so much more. Home ownership means freedom from landlords and all their restrictive rules.
3. Deduct the Interest on your Mortgage – There are several tax benefits to home ownership that includes deducting the interest you pay on your mortgage. This is great news since interest is the biggest part of a mortgage payment.
4. As you pay on your home loan, you are building the equity in your home, which you can tap into at any time. If you ever need a loan to pay for college, expenses, credit card debt, or for other various reasons, then equity is a great financial resource to have.
5. The $8,000 tax credit is another reason to invest in your own home now. This credit is a true credit and does not have to be paid back. But hurry, this program ends November 30, 2009!
Home ownership is an incredible feeling. If you are a first-time home buyer do not be nervous about taking the invigorating plunge into home ownership. The benefits will far outweigh the risk.
Purchasing a Plano Home - Things Not to Do Before
While in the process of purchasing a Plano Home for Sale make sure you do not make any major purchases of any kind. I have had clients get a home under contract and the next thing I know they are pulling up to the home for their home inspection in a brand new car! What could they have possibly been thinking? You may be enticed to purchase new appliance and furniture for your new home prior to closing. You may also want to take a vacation to get a break from all this home buying stuff. Don’t do it! If you do you will be severely damage your chances of obtaining the mortgage you will need to by the home.
Don’t move your money around. When your lender reviews your loan package prior to closing for loan approval they will be seriously concerned if the money you are going to use, the source of your funds, for your down payment and closing costs is not in the same place or in the same amount as it was when you initially applied for the loan. More than likely, you will be asked to provide statements for the last two or three months on all of your liquid assets. This includes savings accounts, money market funds, CD’s, stock statements, mutual funds, 401k and retirement accounts.
The loan underwriter, the person that give final approval on your loan, will most likely require a complete paper trail of all your larger withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, statement and other documents. You may find yourself becoming frustrated with your lender but they are only doing their job correctly per all the mortgage rules and regulations. This is necessary to ensure quality control and eliminate potential fraud. It is a requirement for obtaining financing to document the source of all your funds and assets. Moving your money around, even if to consolidate your funds to make it closing easier, could make it more difficult for the lender to verify properly. Don’t change banks, move funds or make purchases without first speaking with your loan officer.
If you want to buy Plano realty and you are using a professional Realtor they will be able to give you additional advice to keep you on track during your home buying process. If you are buying a Plano for sale by owner property then the onus is on you to stay out of trouble. If you are just beginning searching for a home get you Realtor to search Plano Listings to find sellers who are offering to pay some or all of your closing cost. This can reduces the amount of money you will need to bring to closing.
Don’t move your money around. When your lender reviews your loan package prior to closing for loan approval they will be seriously concerned if the money you are going to use, the source of your funds, for your down payment and closing costs is not in the same place or in the same amount as it was when you initially applied for the loan. More than likely, you will be asked to provide statements for the last two or three months on all of your liquid assets. This includes savings accounts, money market funds, CD’s, stock statements, mutual funds, 401k and retirement accounts.
The loan underwriter, the person that give final approval on your loan, will most likely require a complete paper trail of all your larger withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, statement and other documents. You may find yourself becoming frustrated with your lender but they are only doing their job correctly per all the mortgage rules and regulations. This is necessary to ensure quality control and eliminate potential fraud. It is a requirement for obtaining financing to document the source of all your funds and assets. Moving your money around, even if to consolidate your funds to make it closing easier, could make it more difficult for the lender to verify properly. Don’t change banks, move funds or make purchases without first speaking with your loan officer.
If you want to buy Plano realty and you are using a professional Realtor they will be able to give you additional advice to keep you on track during your home buying process. If you are buying a Plano for sale by owner property then the onus is on you to stay out of trouble. If you are just beginning searching for a home get you Realtor to search Plano Listings to find sellers who are offering to pay some or all of your closing cost. This can reduces the amount of money you will need to bring to closing.
Before Reducing The Price of Your DFW Home
Thinking about price reductions, price improvements, price adjustments? It doesn't matter what it’s called, no one wants to hear about lowering the sales price except buyers. In slow, buyer's markets it is common for DFW Home sellers to point their fingers at their DFW Real Estate agents and say "Why didn’t you do more to sell my house?" It seems like a good question but if the seller has their home overpriced there was probably nothing they could have done to get the home sold. With that said Sellers should ask agents this question.
Before Reducing Your Price Review Your Marketing Plan and Answer These Questions
1. Do your ads contain too much or too little information?
2. How many ads have been published?
3. What kind of direct mail campaign has been imitated?
4. How many open houses have been held?
5. How does the house show online, many good quality pictures?
6. Is your sign in a good location, contain a phone number and a Web site?
7. Do you have a virtual tour online?
8. What kind of feedback have you received from agents and buyers?
9. Are you offering enough compensation to selling agents?
10. Have you had any showings?
• Are you truly serious about selling your home?
1. Maybe you don't have to sell. When the market is slow and inventory is high, demand falls. If that's the case, maybe you should take your home off the market.
2. It makes no sense to put an overpriced home in MLS that is not receiving any showings because it skews the numbers for market performance.
3. If you don’t need to move right now, you might be better off renting your house or staying put until the market rebounds.
Choosing the Right Price
If your list price is to high, you'll need to continually reduce the price until you hit the right number, and by then buyers will begin wondering:
1. What is wrong with your house?
2. How much lower will you go?
If necessary, you want only one price reduction. Consider these guidelines:
• Realize your DFW Realtor is on your side; enlist their help.
• Pull up pending sales and examine their history. How many days on market before the price was reduced and how much of a price reduction was made? You won't know the sold price, but you can determine average price reduction percentages. Your Realtor can provide you this information through the DFW MLS.
• Compare sold prices with active listings. Are sold prices higher or lower?
• Run a side-by-side comparison with active listings near the price point you are considering. Price yours so it falls in the bottom two to five listings or, if you are really committed to selling your home, price it less than anything else on the market.
• Although the DFW MLS contains much valuable information in many cases it does not contain For Sale By Owner DFW information.
Is Your Price Too Low?
• Even in distressed markets properties that are priced below what buyers are readily willing and without prodding to pay will receive multiple offers.
• It is common to have price wars among buyers who are competing for these low priced homes, which will then result in an accepted offer for more than list price.
Every House Will Sell!
It is a fact. Every DFW Home will sell if it is priced properly and every home will sell for it’s true value. The old adage is true “everything is worth what someone is willing to pay for it”
Before Reducing Your Price Review Your Marketing Plan and Answer These Questions
1. Do your ads contain too much or too little information?
2. How many ads have been published?
3. What kind of direct mail campaign has been imitated?
4. How many open houses have been held?
5. How does the house show online, many good quality pictures?
6. Is your sign in a good location, contain a phone number and a Web site?
7. Do you have a virtual tour online?
8. What kind of feedback have you received from agents and buyers?
9. Are you offering enough compensation to selling agents?
10. Have you had any showings?
• Are you truly serious about selling your home?
1. Maybe you don't have to sell. When the market is slow and inventory is high, demand falls. If that's the case, maybe you should take your home off the market.
2. It makes no sense to put an overpriced home in MLS that is not receiving any showings because it skews the numbers for market performance.
3. If you don’t need to move right now, you might be better off renting your house or staying put until the market rebounds.
Choosing the Right Price
If your list price is to high, you'll need to continually reduce the price until you hit the right number, and by then buyers will begin wondering:
1. What is wrong with your house?
2. How much lower will you go?
If necessary, you want only one price reduction. Consider these guidelines:
• Realize your DFW Realtor is on your side; enlist their help.
• Pull up pending sales and examine their history. How many days on market before the price was reduced and how much of a price reduction was made? You won't know the sold price, but you can determine average price reduction percentages. Your Realtor can provide you this information through the DFW MLS.
• Compare sold prices with active listings. Are sold prices higher or lower?
• Run a side-by-side comparison with active listings near the price point you are considering. Price yours so it falls in the bottom two to five listings or, if you are really committed to selling your home, price it less than anything else on the market.
• Although the DFW MLS contains much valuable information in many cases it does not contain For Sale By Owner DFW information.
Is Your Price Too Low?
• Even in distressed markets properties that are priced below what buyers are readily willing and without prodding to pay will receive multiple offers.
• It is common to have price wars among buyers who are competing for these low priced homes, which will then result in an accepted offer for more than list price.
Every House Will Sell!
It is a fact. Every DFW Home will sell if it is priced properly and every home will sell for it’s true value. The old adage is true “everything is worth what someone is willing to pay for it”
FHA and VA Financing / the Way Your Offer Should Be Structured
If you purchasing a home and you are obtaining a VA or FHA loan to do so, that information must be included in your written offer. This is necessary on these government insured mortgages because these mortgages place additional financial cost and performance obligations on the seller.
FHA and VA insured mortgages prohibit buyers from paying certain types of fees that are often charged by escrow companies, lenders, settlement agents, etc,. These fees are called non-allowable fees. The fees still get charged but as the buyer, you are not allowed to pay for them. What results is that the seller ends up paying the fees instead of you.
Most of these non-allowable fees are charged by your lender. Before you make an offer you should have already been pre-qualified for financing by a loan officer. If you are buying a DFW For Sale By Owner Property or your DFW Realtor can ask how much the lender’s non-allowable fees will be. Experienced Realtors should also have an idea of what non-allowable fees will be charged by their preferred escrow company and title insurance company.
Since these are fees the seller would not usually pay on a sale with a conventional mortgage this information must be included in your written offer. Realize that since the seller will be paying these additional fees, they may be less negotiable on their price of their DFW Home for sale. You can have your Realtor search the powerful DFW MLS for property listings that advertize that the seller is willing to pay a certain amount of closing cost on the buyer’s behalf.
FHA and VA insured mortgages prohibit buyers from paying certain types of fees that are often charged by escrow companies, lenders, settlement agents, etc,. These fees are called non-allowable fees. The fees still get charged but as the buyer, you are not allowed to pay for them. What results is that the seller ends up paying the fees instead of you.
Most of these non-allowable fees are charged by your lender. Before you make an offer you should have already been pre-qualified for financing by a loan officer. If you are buying a DFW For Sale By Owner Property or your DFW Realtor can ask how much the lender’s non-allowable fees will be. Experienced Realtors should also have an idea of what non-allowable fees will be charged by their preferred escrow company and title insurance company.
Since these are fees the seller would not usually pay on a sale with a conventional mortgage this information must be included in your written offer. Realize that since the seller will be paying these additional fees, they may be less negotiable on their price of their DFW Home for sale. You can have your Realtor search the powerful DFW MLS for property listings that advertize that the seller is willing to pay a certain amount of closing cost on the buyer’s behalf.
Wednesday, August 25, 2010
DFW Real Estate Location, Location, Location
Location – Community is Important
Before you can start your house hunting you need to choose what cities or communities you want to live in. There are several factors that you should pay attention to, not only for yourself, but because you will eventually need to sell the home to someone else. Choosing your community is the first step and most important step in "location, location, location" and can help maximize your future potential resale value.
Local Services
Check on the services provided by local government. Also look into local crime statistics and see how that city compares to the national averages and other nearby communities. Are fire stations located strategically around the community so that they also can respond quickly in an emergency? Go a step further and inquiry about community services. Does the community sponsor sports and have athletic facilities and parks? Are community events sponsored? Are there activities available for children, teenagers as well as for senior citizens? Your DFW Realtor will have amassed a wealth of information on these subjects and will be happy to talk about them.
Economic Stability
When searching for a community make sure you check to see that the city has a viable and stable economy. Ten, or fifteen years from now when you want to sell your home you can have a reasonable expectation that your community will still be a desirable place to live and give additional value to your home. In addition to residential areas there should be a mixture of commercial businesses and stores. These not only provide jobs to local residents, but also add an income source that the city can use to maintain roads and community services. You should go for a drive and see how well the community is maintained. Look to live in a city that demonstrates community pride.
Schools
Even if you do not have children pay attention to the local school system. When you sell the property, many potential buyers desire to live in areas with great school systems. Find out if the local schools are overcrowded. Drive around and see if there are auxiliary trailers outside of the local schools. Call the local school district and see if elementary aged children always attend the school closest to their home? Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes? There are also school reports available for free on the Internet.
Property Taxes
When searching DFW Homes For Sale note that property taxes may be higher in one city than in another nearby city. This could affect whether potential homebuyers view a community as a desirable place to live or not. Interestingly enough, they may choose to purchase in a community with higher taxes, because of the perceived value. Higher property taxes often mean newer and more modern schools, well-maintained roads, and many community services. Also, you will often find that the cost per square foot of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Many DFW Realtors and prospective buyers have a bias against communities with higher property taxes. Regardless if you are going to sell your home as a DFW FSBO or have your Realtor put your home in the DFW MLS and resale value is important to you, make property taxes a consideration when choosing the location of your next home.
Before you can start your house hunting you need to choose what cities or communities you want to live in. There are several factors that you should pay attention to, not only for yourself, but because you will eventually need to sell the home to someone else. Choosing your community is the first step and most important step in "location, location, location" and can help maximize your future potential resale value.
Local Services
Check on the services provided by local government. Also look into local crime statistics and see how that city compares to the national averages and other nearby communities. Are fire stations located strategically around the community so that they also can respond quickly in an emergency? Go a step further and inquiry about community services. Does the community sponsor sports and have athletic facilities and parks? Are community events sponsored? Are there activities available for children, teenagers as well as for senior citizens? Your DFW Realtor will have amassed a wealth of information on these subjects and will be happy to talk about them.
Economic Stability
When searching for a community make sure you check to see that the city has a viable and stable economy. Ten, or fifteen years from now when you want to sell your home you can have a reasonable expectation that your community will still be a desirable place to live and give additional value to your home. In addition to residential areas there should be a mixture of commercial businesses and stores. These not only provide jobs to local residents, but also add an income source that the city can use to maintain roads and community services. You should go for a drive and see how well the community is maintained. Look to live in a city that demonstrates community pride.
Schools
Even if you do not have children pay attention to the local school system. When you sell the property, many potential buyers desire to live in areas with great school systems. Find out if the local schools are overcrowded. Drive around and see if there are auxiliary trailers outside of the local schools. Call the local school district and see if elementary aged children always attend the school closest to their home? Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes? There are also school reports available for free on the Internet.
Property Taxes
When searching DFW Homes For Sale note that property taxes may be higher in one city than in another nearby city. This could affect whether potential homebuyers view a community as a desirable place to live or not. Interestingly enough, they may choose to purchase in a community with higher taxes, because of the perceived value. Higher property taxes often mean newer and more modern schools, well-maintained roads, and many community services. Also, you will often find that the cost per square foot of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Many DFW Realtors and prospective buyers have a bias against communities with higher property taxes. Regardless if you are going to sell your home as a DFW FSBO or have your Realtor put your home in the DFW MLS and resale value is important to you, make property taxes a consideration when choosing the location of your next home.
Before You Buy - Concerns About DFW Property
Property Disclosures
You have already toured the home, looked at the ceiling, walls and floors, turned on the faucets and flipped the light switches but you have never lived there. The seller may have lived there for many years and have a ton of knowledge about the home. For this reason, in most areas, the law requires the seller to provide potential buyers certain disclosures about the home and sometimes even the area around the home. Since you don’t want to be blindsided down the road with a big expensive repair you want the seller to disclose any adverse conditions in the home. This would also include any problems with the foundation of the house, whether the property is in a flood zone, a noise zone, near a landfill or any other kind of hazardous area. If you have a professional DFW Realtor representing you, in the course of their daily business they will get the necessary forms for you. Take note that banks selling DFW foreclosures are exempt from the disclosures. It is true “Buyers Beware”.
Property Condition
The last thing you want when you move into your new home is to find it a total mess. Make it clear in your offer that you require certain minimum standards. Some of the requirements you should include in your offer are that the appliances work, the roof does not leak, the plumbing does not leak, there are no broken or cracked windows, the yard has been kept up, and any trash has been cleared away. There are many DFW homes for sale so find one that is in good condition and meets all your needs.
Home Inspections
Along with the required appraisal and the pest inspection always get a professional home inspector to go through the house to find any potential problems. Even if they are not things the seller is usually expected to repair, at least you will have knowledge of any potential problems. The seller will want this inspection performed quickly, so that you can move forward with the purchase. Once you receive the home inspection report, you will want to allow yourself a few days to review the report. If you are concerned about any items on the report you can negotiate with the sellers on which repairs will be performed and who will pay for those repairs. If no agreement is made, you can cancel the purchase without penalty, assuming you have included a home inspection contingency in your offer. Always get a Home Inspection!
Walk-Through Inspection
Right before closing on your DFW Real Estate, you should revisit the property to make sure it is in the condition you have set in your offer. Be sure to inspect that any required seller repairs have been performed made and are made in a professional manner. If you were smart enough to use a DFW Realtor in your transaction make sure they accompany you on this final walk through inspection.
You have already toured the home, looked at the ceiling, walls and floors, turned on the faucets and flipped the light switches but you have never lived there. The seller may have lived there for many years and have a ton of knowledge about the home. For this reason, in most areas, the law requires the seller to provide potential buyers certain disclosures about the home and sometimes even the area around the home. Since you don’t want to be blindsided down the road with a big expensive repair you want the seller to disclose any adverse conditions in the home. This would also include any problems with the foundation of the house, whether the property is in a flood zone, a noise zone, near a landfill or any other kind of hazardous area. If you have a professional DFW Realtor representing you, in the course of their daily business they will get the necessary forms for you. Take note that banks selling DFW foreclosures are exempt from the disclosures. It is true “Buyers Beware”.
Property Condition
The last thing you want when you move into your new home is to find it a total mess. Make it clear in your offer that you require certain minimum standards. Some of the requirements you should include in your offer are that the appliances work, the roof does not leak, the plumbing does not leak, there are no broken or cracked windows, the yard has been kept up, and any trash has been cleared away. There are many DFW homes for sale so find one that is in good condition and meets all your needs.
Home Inspections
Along with the required appraisal and the pest inspection always get a professional home inspector to go through the house to find any potential problems. Even if they are not things the seller is usually expected to repair, at least you will have knowledge of any potential problems. The seller will want this inspection performed quickly, so that you can move forward with the purchase. Once you receive the home inspection report, you will want to allow yourself a few days to review the report. If you are concerned about any items on the report you can negotiate with the sellers on which repairs will be performed and who will pay for those repairs. If no agreement is made, you can cancel the purchase without penalty, assuming you have included a home inspection contingency in your offer. Always get a Home Inspection!
Walk-Through Inspection
Right before closing on your DFW Real Estate, you should revisit the property to make sure it is in the condition you have set in your offer. Be sure to inspect that any required seller repairs have been performed made and are made in a professional manner. If you were smart enough to use a DFW Realtor in your transaction make sure they accompany you on this final walk through inspection.
Your DFW Home Offer & VA or FHA Financing
If you are looking to buy a DFW Home and you will be obtaining VA or FHA financing then you must include that information in your offer. This is necessary because these government loans place additional financial and performance obligations on the seller that are not typical with cash or conventional loan purchases.
VA and FHA loans prohibit buyers from paying certain types of fees that are often charged by their lenders and title companies. They are called non-allowable fees. They will still be charged, but as the buyer, you are not allowed to pay them. This means that the seller will end up paying them instead of you.
Most of these non-allowable fees are fees payable to your lender. Prior to submitting an offer on the home of your choice you should have already been pre-qualified by a loan officer and that loan officer should have told you what the non-allowable fees will be. Experienced DFW Realtors should also have an idea of what non-allowable fees will be charged by the escrow agent and title insurance company. Since these are fees the seller would not pay on a cash offer or an offer with conventional financing, this information must be included in your offer. You should realize that since the seller will be paying these additional fees, they may be a little less negotiable on the sales price.
Appraisals on VA and FHA loans are a little more involved than on conventional loans because they include an inspection element and they are also more expensive. These appraisers are required to perform certain minimum inspections, which are generally safety items, as well as evaluate the value of the home. Although these inspection reports are not as detailed as a typical professional home inspection report they can uncover items that need repaired prior to closing. These additional repair costs are cost the seller would not be obligated to pay for someone paying cash or obtaining conventional financing. Because of this your offer should include a maximum figure, or cap, for these repairs. Whatever figure you put in will likely affect the seller’s willingness to negotiate on their sales price. If you put $1,100 as an estimate, the seller may be $1,100 less negotiable on their sales price. If no repairs are necessary, you may have been able to get the home for $1,100 less than what you and the seller originally agreed on as the sales price.
When searching for DFW Homes For Sale it is best to retain the services of a professional DFW Realtor. Your Realtor can discuss with you the possibility of buy a DFW Foreclosure to locate a good deal for you. Some of these foreclosures, however, may not be good candidates for VA or FHA financing programs as many times they need a lot of work, work a bank is unlikely to do. If you are not using a Realtor in your search of DFW homes you may consider a DFW FSBO understanding that these FSBO sellers probably have no idea if their home can be financed under one of these programs.
Plano Home Buyers & Sellers Must Agree
When buying a Plano home there are all kinds of people and services that are involved to make it all come together for closing. Because many of these services affect both the buyer and the seller, there needs to be agreement about which vendors the parties will use for these servicers. When the buyer is putting an offer together their Plano Realtor should request the buyers choices for these necessary services. If they are unfamiliar with these service providers, they can get recommendations from their agent and sometimes even the seller.
Escrow and Closing
A settlement company is necessary to act as an independent third party between the buyer and the seller. Example, how would one know when they fork over their money that they are going to get the deed? This is the type of service provided by the settlement company. They will hold the earnest money deposit and coordinate much of the activity that goes on during the escrow period. Since the settlement company is so important to both parties and both parties will pay fees to this company, it is important to agree on which services to use. The choices should be part of the written offer. Since the buyer is probably unfamiliar with companies that provide these services. Your Plano Realtor can make these recommendations. The seller will also have a preference in these service companies and this may be a point of negotiation in a counter-offer. It has become customary that one side will choose the settlement company and one side chooses the title insurance company.
Title Insurance
Title insurance is very important when you buy Plano Real Estate, by providing an Owner’s Policy, they insure that the buyers have clear title to the property. If there are any problems later, they can go to the title insurance company and have them take care of it. Since it is customary for the seller to pay for the owner’s policy, they have an interest in which company is selected. Title insurance is a good idea anytime a home is purchased and it is particularly important when you buy a Plano Foreclosure because one can never be certain that all the appropriate actions have been taken to clear title to the home.
Escrow and Closing
A settlement company is necessary to act as an independent third party between the buyer and the seller. Example, how would one know when they fork over their money that they are going to get the deed? This is the type of service provided by the settlement company. They will hold the earnest money deposit and coordinate much of the activity that goes on during the escrow period. Since the settlement company is so important to both parties and both parties will pay fees to this company, it is important to agree on which services to use. The choices should be part of the written offer. Since the buyer is probably unfamiliar with companies that provide these services. Your Plano Realtor can make these recommendations. The seller will also have a preference in these service companies and this may be a point of negotiation in a counter-offer. It has become customary that one side will choose the settlement company and one side chooses the title insurance company.
Title Insurance
Title insurance is very important when you buy Plano Real Estate, by providing an Owner’s Policy, they insure that the buyers have clear title to the property. If there are any problems later, they can go to the title insurance company and have them take care of it. Since it is customary for the seller to pay for the owner’s policy, they have an interest in which company is selected. Title insurance is a good idea anytime a home is purchased and it is particularly important when you buy a Plano Foreclosure because one can never be certain that all the appropriate actions have been taken to clear title to the home.
Determining Your Plano Home Offering Price
Before you prepare a written offer to purchase a Plano home you already know what the asking price is. But how do you determine what a fair price you should offer for the home and how do you come up with that amount? Determining the amount of your initial offer can be done in an organized three step process.
The first step in determining the price you are willing to offer is to look at the recent sales of similar homes. These are called "comparable sales" or “comps”. Comparable sales are recent sales of homes that are similar to the one you are looking to write an offer on. Make sure you pay special attention and compare prices of homes that are similar in lot size, square footage, number of bedrooms and bathrooms, garages, type and quality of construction.
Study recent sales of similar homes in your community to determine a price range. Then analyze additional information like current market conditions, the condition of the home, improvements and upgrades made to the home and the circumstances of the seller. If seller is distressed they may take a lower price that the average seller. This will help you evaluate a fair price that you would be willing to pay for the home. Depending on your negotiating ability, adjust your fair price down a little and then determine what you want to put in your initial offer to the Seller.
The best source of this valuable information is through a professional Plano Realtor. Theses Realtors have access to the comprehensive Plano MLS and have access to Active, Pending and Sold homes. All Plano realty listings that have ever been in the MLS will be accessible you your Realtor. It is more difficult to access Plano FSBO Property because, generally, they are not listed in the MLS. Using the MLS your Realtor can create a Comparative Market Analysis “CMA” to show you the averages on the comparable homes in your market area. This is the best tool you can use to help you deterring what the value of the home is.
Tuesday, August 24, 2010
DFW Home Appraisals VA & FHA
Appraisals for DFW home sales include inspections and are more comprehensive than appraisals with conventional financing and they are also more expensive. These appraisers are required to perform certain minimum inspections as well as evaluate the market value of the subject property. These inspections are not as comprehensive or detailed as a professional home inspection report. These “Appraisal Inspections” should not be considered a substitute for a professional home inspection and sometimes additional repairs are needed.
These repair costs are additional costs the seller that the seller would not usually be obligated to pay for a buyer obtaining conventional financing. If you are using FHA or VA Insured financing for your purchase your offer should include a maximum figure to cover these repair cost. If this figure in not included, in essence, the seller is signing the equivalent of a blank check and it could cost them substantially more that they expected. Have your Realtor search the MLS for the rare DFW listings that show that the sellers are open to selling to buyers using FHA and VA insured financing.
The figure that you put your offer will more than likely affect the seller’s willingness to negotiate on terms and on the price of their DFW realty for sale. If you put $750 as a repair estimate, the seller may be $750 less negotiable on their sales price. If no repairs are necessary, you could have been able to get that home for $750 less than what you and the seller originally agreed on for the price. A good solution would be to add a clause to your offer that states that if the required repairs cost less than the maximum amount allowed, the excess will be credited toward buyer’s down payment or closing costs. If you are purchasing a DFW FSBO home then the onus is on you to make sure that your offer is written correctly to handle these details.
These repair costs are additional costs the seller that the seller would not usually be obligated to pay for a buyer obtaining conventional financing. If you are using FHA or VA Insured financing for your purchase your offer should include a maximum figure to cover these repair cost. If this figure in not included, in essence, the seller is signing the equivalent of a blank check and it could cost them substantially more that they expected. Have your Realtor search the MLS for the rare DFW listings that show that the sellers are open to selling to buyers using FHA and VA insured financing.
The figure that you put your offer will more than likely affect the seller’s willingness to negotiate on terms and on the price of their DFW realty for sale. If you put $750 as a repair estimate, the seller may be $750 less negotiable on their sales price. If no repairs are necessary, you could have been able to get that home for $750 less than what you and the seller originally agreed on for the price. A good solution would be to add a clause to your offer that states that if the required repairs cost less than the maximum amount allowed, the excess will be credited toward buyer’s down payment or closing costs. If you are purchasing a DFW FSBO home then the onus is on you to make sure that your offer is written correctly to handle these details.
Richardson Real Estate - Economy & Development
Despite declining economies in other parts of the US, from 2005 through 2009, Richardson has had substantial increases in its economy. Sales tax collection went up from $21 million in 2005 to an estimated $24.7 million in 2008. The city's total assessed property value went up from $8.3 billion in 2005 to $9.5 billion 2008. The city has also achieved a considerable amount of corporate recruitment and retention.
In 2008 Standard & Poor's upgraded Richardson's credit rating to "AAA" from the previous rating of "AA+". Richardson is one of only four cities in the state of Texas and one of 88 cities in the nation with an "AAA" rating from Standard & Poor's. Richardson is the metropolitan statistical area's second largest employment center with daytime population increasing to more than 140,000 making Commercial Real Estate highly desirable in the City. The economy remains rooted in the telecommunications industry. The tax base is very diverse with the 10 leading taxpayers accounting for 10 percent of total assessed value. Richardson's property tax base is deep and extends beyond its Telecom Corridor area with other sectors including health care, technology, and finance. The City's per capita sales are 200 percent of the national average as well as the second highest sales tax per capita in the DFW Metroplex.
Richardson has won many economic awards including DBJ's 2006 "Best Real Estate Deal of the Year", making Richardson Real Estate very desirable, International Economic Development Council's 2006 "Technology-Based Economic Development Award", and Texas Economic Development Council's 2007 "Texas Economic Excellence Award". As the City developed, the Richardson Home market became popular as the City provided several schools, several entertaining venues like skating, hiking, swimming, and also provided for all the basic needs required by the Residents. There are several parks and picnic areas that are enjoyed by people of all ages and people love to live here. Richardson is beautiful, clean and the demand for buying homes in that area has become extremely popular.
We can view the Richardson Neighborhood Profile, view photos and videos of the homes, find out the number of bed rooms, bath rooms and the basic amenities of the homes and neighborhoods from website like VIP Realty Platinum! The dream home you desire is out there and is different for every individual.
Comprehensive Dallas Flat Fee MLS Programs
VIP Realty Platinum’s Flat Fee MLS Programs
Why pay 6%? - Save thousands in Real Estate Commissions
Paying 6% Commission Will NOT Sell Your Home Any Faster!
Our comprehensive DFW Flat Fee MLS programs works because there are typically two real estate agents involved in the sale of a house: the buyer's agent, who represents the buyer and the listing agent who represents the seller.
A seller would typically pays a 6% commission. A home is listed at $235,000 which is split evenly ($14,100), with the "listing agent" getting $7,050 and the "buyer agent" getting the other $7,050.
With our DFW Flat Fee MLS, Dallas Flat Fee MLS and Plano Flat Fee MLS Programs, instead of paying the "listing side" of the commission (typically 3% of the sales price of your home) you would only pay a nominal flat fee at the time of listing and you would pay the "buyer agent" fee of 3% ONLY IF a buyer’s agent finds a buyer for your home. If you find a buyer on your own, you pay 0% commission! VIP Realty Platinum will act as your listing agent, representing your interest, but we will not collect a listing commission at closing.
Why the DFW Flat Fee MLS Program Works
Realtor Marketing Myths
When most Realtors come to you to list your property, they will show you a great presentation telling you all about their wonderful "marketing plan" and how wonderful and great they are and how quickly they will sell your house. However, did you know that the majority of properties, approx. 80-90%, are sold by another MLS agent, and are NOT by the listing agent? If their marketing plan is so great, why doesn't the listing agent sell the listing themselves? Most agents know they won’t sell the property themselves so they let the MLS and buyer agents do all the work. With that in mind, why give your hard earned equity away to someone with only a sign, a couple of print ads and access to the MLS?
Newspaper, Home Buying Magazine & Other Print Media
Do you think print ads still work in this day and age? If you really believe that Agents and Brokers advertise your home in home buying magazines and newspapers only to sell your home, then I have some disturbing news for you!
The main reason agents or brokers would pay big money every month just to place your property in a home buying magazine or other print media is to generate buyer leads for themselves and to brand their companies. In the past we spent big money every month for ads in real estate magazines and newspaper classified ads. Did we sell our listed properties as a direct result of a phone call? No! Most people end up buying another home after they comparison shopped. I can assure you that home buyers won’t just look at one home, your home, before buying. We ran these ads to get the phone calls coming in so we could assist other people who wanted to Buy or Sell. Have you ever seen homes advertised in the real estate magazines or other print ads with the complete address listed? I wonder why not.
Be aware that agents are trained to use marketing materials and tools to promote themselves, their team or their company NOT to actually find a buyer for your home. When you pay a 5%, 6% or 7% commission you are the one who pays for their marketing campaign.
Buying Tarrant County Bank Owned Properties
So you’re thinking about buying a Tarrant County Bank Owner Property. Bank owned property taken back by the bank through foreclosures are referred to as “Real Estate Owned” more commonly referred to as REO’s. You expect to make a killing" in the process, right? Seems like a great plan and it just may happen, but first you take a look at some facts about REO’s so you will be prepared.
As a purchaser of an REO property, you will receive a title insurance policy and the opportunity to do your due diligence on the property. All REO’s may not be a great bargain, however. Do all of your homework prior to making an offer on the property. Make sure that the price you offer is comparable to similar homes in the neighborhood. Also, Make sure you factor in the costs of repairs to the property. Don’t get caught up in a bidding war and pay more than the market value of the property.
Each bank handles the process a little differently, but they all have the same goal. They want to get the best price possible and don’t want to just give away all their real estate holdings. Most banks have a special department set up to manage their REO inventory.
Once you put in an offer to purchase, banks generally don’t accept your original and will present you with a counter-offer. It may be at a higher price than you wanted but they have to demonstrate to their shareholders and auditors that they are attempting to get the highest price possible for their properties. To get at the price point you want to buy at consider making your initial offer about 10% below your target price. Be patient as it can take a couple of weeks or more to respond to your offer.
Banks sell their Tarrant County Real Estate on an as is basis. They will usually, however, allow you to get all the inspections you want (at your expense), but they generally will not agree to make any repairs. To have the right to get an inspection your offer must include an inspection contingency or option period that allows you to terminate the sale if the inspections reveal major damages that the bank will not correct. If major repairs do arise sometimes the banks will re-negotiate the price to save the sale instead of putting the property back on the market. If there are Tarrant County Realtors involved, either representing you or the bank, those agents are required to provide you the proper disclosure statements required by law. Regardless if you are searching for Fort Worth Real Estate or even Keller Real Estate you should always utilize the services or a Professional Tarrant County Realtor to represent your interest.
As a purchaser of an REO property, you will receive a title insurance policy and the opportunity to do your due diligence on the property. All REO’s may not be a great bargain, however. Do all of your homework prior to making an offer on the property. Make sure that the price you offer is comparable to similar homes in the neighborhood. Also, Make sure you factor in the costs of repairs to the property. Don’t get caught up in a bidding war and pay more than the market value of the property.
Each bank handles the process a little differently, but they all have the same goal. They want to get the best price possible and don’t want to just give away all their real estate holdings. Most banks have a special department set up to manage their REO inventory.
Once you put in an offer to purchase, banks generally don’t accept your original and will present you with a counter-offer. It may be at a higher price than you wanted but they have to demonstrate to their shareholders and auditors that they are attempting to get the highest price possible for their properties. To get at the price point you want to buy at consider making your initial offer about 10% below your target price. Be patient as it can take a couple of weeks or more to respond to your offer.
Banks sell their Tarrant County Real Estate on an as is basis. They will usually, however, allow you to get all the inspections you want (at your expense), but they generally will not agree to make any repairs. To have the right to get an inspection your offer must include an inspection contingency or option period that allows you to terminate the sale if the inspections reveal major damages that the bank will not correct. If major repairs do arise sometimes the banks will re-negotiate the price to save the sale instead of putting the property back on the market. If there are Tarrant County Realtors involved, either representing you or the bank, those agents are required to provide you the proper disclosure statements required by law. Regardless if you are searching for Fort Worth Real Estate or even Keller Real Estate you should always utilize the services or a Professional Tarrant County Realtor to represent your interest.
Negotiating the Tarrant County Real Estate Contract
How can you buy Tarrant County real estate at the lowest possible price? You’ve been out house hunting for some time now. You’ve done all your due diligence and now it’s time to put in a written offer to purchase the home that is just right for you. How do you know much to offer the seller? Is it really how much your offer is or is it how you present your offer?
Determining the Market Price
Before writing your offer you need to determine what the market price is for the home you want to buy. Have your professional Tarrant County Realtor run a Comparable Market Analysis for you on similar homes that have sold recently in your target neighborhood. To arrive at a reasonable offer price you and your agent will be comparing the location, condition and amenities of similar homes that have already sold and the current competition of other homes for sale in the area.
Your Offer Price
Now you must figure out how much to write your offer for and also what is the most you are willing to pay for your Tarrant County home. If you are willing to pay market value or more for this home because you don’t want to risk losing it let your agent know that up front! Most good agents will do their best to negotiate a sales price that is below market for you because they want to make you happy and retain you as a future client. More importantly, they want and need your referrals. Only you can determine how you may feel if you lose this home to another buyer for only a few thousand dollars. If you want a good deal in Tarrant County real estate whether it be Arlington real estate, Southlake real estate or even Colleyville real estate make sure you tell your agent so, but if you must have this home in particular, tell your agent that too! His or her negotiating tactics will depend heavily on your desired outcome.
Determining the Market Price
Before writing your offer you need to determine what the market price is for the home you want to buy. Have your professional Tarrant County Realtor run a Comparable Market Analysis for you on similar homes that have sold recently in your target neighborhood. To arrive at a reasonable offer price you and your agent will be comparing the location, condition and amenities of similar homes that have already sold and the current competition of other homes for sale in the area.
Your Offer Price
Now you must figure out how much to write your offer for and also what is the most you are willing to pay for your Tarrant County home. If you are willing to pay market value or more for this home because you don’t want to risk losing it let your agent know that up front! Most good agents will do their best to negotiate a sales price that is below market for you because they want to make you happy and retain you as a future client. More importantly, they want and need your referrals. Only you can determine how you may feel if you lose this home to another buyer for only a few thousand dollars. If you want a good deal in Tarrant County real estate whether it be Arlington real estate, Southlake real estate or even Colleyville real estate make sure you tell your agent so, but if you must have this home in particular, tell your agent that too! His or her negotiating tactics will depend heavily on your desired outcome.
Monday, August 23, 2010
Some DFW REO Lenders Won't Sell Their Bank Repo to You
Many DFW homebuyers are chasing after bank repos and foreclosures and are discovering that some REO often referred to as REO’s (Real Estate Owned) lenders will not sell a bank repo home to them. These banks can name their own terms and conditions under which they will sell their bank owned homes, and if they don't fit those qualifications, they are out of luck. Don’t these banks want and need to get to get rid of these DFW foreclosure homes? Yes, but it isn’t so straight forward.
Banks Don't Want Buyers Submitting Multiple Offers
Banks have learned that not every DFW foreclosure buyer is fully committed to actually following through with the purchase of these homes. Some buyers make multiple offers with no intention, or ability, to buy all of them. They want to choose the best deal they can get, let the other ones go, and in doing so they could find themselves in court for writing these types of bogus offers. The problem arises when the buyer does not have the financial means to purchase more than one or all the properties they have contractually agreed to purchase. Many state laws might hold the buyer liable for breach of contract upon cancellation because the buyer may have breached an implied contract covenant of good faith. Banks want the buyer to be committed to the purchase and follow through on closing. If the bank has reason to believe the buyer is not serious or have the means, the bank will reject their offer to purchase. There are other reasons banks may not sell their bank repos to you.
Reasons a Bank Might Not Sell That Bank Repo to You
Some Bank-Owned Homes Do Not Qualify for Conventional Financing.
FHA Appraisal Conditions.
Banks Prefer Cash Buyers for Bank Repos.
Why REO Lenders Like All Cash Buyers to Purchase Bank Repos
No Appraisal Contingency.
No Loan Funding Contingency. Faster Closing.
As you can see these REO/Foreclosure Lenders are under no obligation to sell their REO properties or even these DFW foreclosures. With these types of transactions, it is imperative that you use a professional DFW Realtor to protect you and to ensure a smooth closing with your DFW real estate transactions. Trying to navigate through all of this yourself could cost you in the end.
Banks Don't Want Buyers Submitting Multiple Offers
Banks have learned that not every DFW foreclosure buyer is fully committed to actually following through with the purchase of these homes. Some buyers make multiple offers with no intention, or ability, to buy all of them. They want to choose the best deal they can get, let the other ones go, and in doing so they could find themselves in court for writing these types of bogus offers. The problem arises when the buyer does not have the financial means to purchase more than one or all the properties they have contractually agreed to purchase. Many state laws might hold the buyer liable for breach of contract upon cancellation because the buyer may have breached an implied contract covenant of good faith. Banks want the buyer to be committed to the purchase and follow through on closing. If the bank has reason to believe the buyer is not serious or have the means, the bank will reject their offer to purchase. There are other reasons banks may not sell their bank repos to you.
Reasons a Bank Might Not Sell That Bank Repo to You
Some Bank-Owned Homes Do Not Qualify for Conventional Financing.
FHA Appraisal Conditions.
Banks Prefer Cash Buyers for Bank Repos.
Why REO Lenders Like All Cash Buyers to Purchase Bank Repos
No Appraisal Contingency.
No Loan Funding Contingency. Faster Closing.
As you can see these REO/Foreclosure Lenders are under no obligation to sell their REO properties or even these DFW foreclosures. With these types of transactions, it is imperative that you use a professional DFW Realtor to protect you and to ensure a smooth closing with your DFW real estate transactions. Trying to navigate through all of this yourself could cost you in the end.
Earnest Money Deposits on DFW Bank-Owned Homes
The last thing a DFW home buyers wants to do is lose their earnest money deposit when buying a foreclosure or bank owned home. Bank owned home selling transactions, called REO’s (Real Estate Owned), are typically handled differently than most regular DFW real estate transactions. To make things even more interesting, there is very little conformity among these banks as to how each sale is handled. There is a common thread among these REO and foreclosure sales. It is a tightening of how earnest money deposits are handled for these types of REO/Foreclosure transactions.
Most regular real estate transactions in the DFW Metroplex are handled in a similar manner. A buyer makes the earnest money deposit check payable to escrow or title company. This deposit is refundable to the buyer pursuant to the terms and conditions of the sales contract. That is not to say, that the earnest money deposit is automatically returned to the buyer because a term or condition of the contract of sale has not been met. The escrow deposits cannot, in most cases, be released until a release is signed by both parties. Sometimes disputes arise, and that can delay the release of the escrow funds. Banks don't want to get halfway through the escrow process only to discover that the buyer wasn't serious about buying the home. Therefore, banks want to limit the cancellations and will make demands during the negotiation stages of the contract.
Here are tips for dealing with DFW REO lenders:
Make the Earnest Money Deposit Payable to Title Company.
Funds Must Be in the Buyer's Account to Cover the Check.
Prepare to Replace the Earnest Money Deposit with a Cashier's Check Upon Offer Acceptance.
Be Ready to Immediately Overnight the Earnest Money Deposit to the Bank's Designated Title or Escrow Company.
Negotiate Earnest Money Deposits Below the Maximum for Small Claims Court.
Time Your Negotiations for Non-Refundable Earnest Money Deposits.
Because some of these DFW REO banks will make your earnest money deposit non-refundable, especially on these DFW foreclosures, you may want to schedule your home inspection upon verbal acceptance of your offer. You may have less than 24 hours to get these important inspections completed. Line up your inspections ahead of time and be ready to go the minute your DFW Realtor tells you the offer will be accepted. This way, you will have your inspections completed before you deliver that earnest money deposit. It will save you a lot of grief and worry if you know that you definitely want to proceed with the transaction before handing over your money. You can find great home values with these types of DFW real estate transactions.
Who Pays The DFW Real Estate Commission
To understand who pays the DFW real estate commissions let's look at how real estate agents are paid and how and why they share their commissions with other cooperating agents. It can be a bit confusing so don't be embarrassed if you don't know how the commissions structures work.
How Real Estate Commissions Work
All real estate agents work under a real estate broker. All fees generated from a real estate transaction are paid to the broker and then the agent receives their portion of the commission through their broker. Only the real estate broker can collect a real estate commission.
How Do Real Estate Agents Get Compensated by the Broker?
The split agents receive vary from transaction to transaction. New agents can receive as little as 30% to 40% of the total commission received by the broker. A more seasoned agent can receive form 50-70% of the total commission. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses. Top producing agents might receive 100% and pay the broke a flat desk fee.
Listing Agents' Fees
The most typical type of listing agreement between a seller and an agent gives that agent's broker the right to exclusively market the property. In return for finding a willing and able buyer, the seller agrees to pay a commission to the broker. Typically, this fee is represented as a percentage of the sales price and is shared between the listing broker and the selling broker.
Co-Broker Splits
The split of commissions between brokers is not always fair or equal. For example, a seller could sign a listing agreement for 6% that states that the listing broker will receive 4% and will pay 2% to the selling broker. It is not always a 50/50 arrangement. In a buyer's market, a seller may want to ask the broker to give a larger percent of the commission to the buyer's broker. On the other hand, in a seller's market, the buyer's broker might receive less. There is no standard arrangement.
Buyer's Brokers
Seller Pays the Buyer's Commission
Under a Buyer's Broker agreement the named broker and agent represent the buyer's interest. The commission paid to the broker is usually paid by the seller. Some buyer broker agreements will contain a clause that will compensate the broker for their commission due less the amount paid by the seller. For an example, a cooperating listing agreement may offer to pay a broker only 2% of the sales price, whereas the brokerage generally charges a commission of 3%. The difference of could be paid by the buyer if the broker chooses not to waive that amount or the commission.
Buyer Pays the Commission
The seller is then not obligated, under most listing agreements, to pay the listing broker for more than the listing side of the commission. Many time sales prices will be reduced to reflect the amount the buyer is actually paying. Sellers can also give a credit to the buyer for the commission and the buyer will then credit the broker.
Who Really Pays the Commission?
It can be argued that the buyer pays the commission. Why? Because it is generally included in the sales price. If the seller did not sign an agreement to pay a commission to a DFW Realtor, the sales price may have been lower. On the other side of that thinking, it be argued that the seller pays the commission from the sale of DFW Real Estate because it is deduced from the sellers money at closing. The reality of it is that both the buyer and seller are paying the commission. The only way to avoid a commission is to sell your home as a Dallas FSBO (For Sale By Owner). There is much undue risk in buying or selling a home in this manner. It is always better to retain the services of a professional DFW Realtor.
Can a Tree help you sell your Plano Home?
Can a Tree help you sell your Plano home? Believe it or not, yes. The American Nursery & Landscape Association says that improved landscape quality and tree coverage has a positive impact on the price of single-family homes. They say that approximately 30 percent of the increase in sale value was accounted for by added tree coverage. They go on to say that for each $1.00 invested in upgrading an average landscape returns $1.35 in added property value. While most homeowners know that landscape is a big draw for buyers, they usually don't know how much and what kinds of landscaping that have the biggest positive impact their property value.
General tree cover adds between 2 percent and 9% to the value of existing homes and 7% for new homes. Just a single good size tree can add up to 2% to the home's value. Hedges, dense vegetation, retaining walls and landscaped curbs can each add 2 to 4% percent to the value of a home. If your home has more trees than the nearby homes, the value rises by approximately 7%. The perceived value of a home may increase by 5 to 11% with sophisticated landscaping which incorporates large plants, evergreens, annual color, deciduous plants and colored hardscapes. Improvement in landscaping from average quality to excellent quality increases the value of a home by 10.8%, with approximately 30 percent of the increase in value appropriated to the addition of trees.
There are additional actual and perceived benefits to upgraded landscaping. Improved landscaping provides a positive and relaxing quality for the homeowner and the people in the community. Upgraded landscaping can help with lower utility costs. Tree cover is important to because they provide shade from the summer sun and shelter from the cold winter wind, reducing heating and cooling costs. It is clear that the Plano real estate owner can benefit in a multitude of ways by improving, upgrading and adding to their existing landscaping. You can purchase a Plano foreclosure home and make it more valuable just working with the landscaping alone. Talk with a professional Plano Realtor to find out what types of landscape upgrades are best in your area.
Buying a DFW Home? Consider Resale Value
Homes with a nice view, like a gold course, cityscape, water view, often sell at a premium above similar homes without a view. If a view is important to you be prepared to pay the price for it. You will need to place a considerable dollar value on the view. When it comes time to sell the home you will likely recover the “view premium”. If you are buying a home with a view be careful not to over pay otherwise you might not get all of your investment back when you sell.
Most real estate value is due to its location but the building and the lot are important to. Generally, it should be as level and as open as possible. Assuming the property is in a typical neighborhood, the lot should be rectangular. Try to avoid odd shaped lots or oddly situated lots. Yard sizes are smaller in more modern homes than with the older counter parts, but there should still be a decently sized yard, especially in the rear of the house. You will get your best value if the house is moderately landscaped for the area. You can always jazz up the landscaping during your ownership but don’t over improve and spend too much.
In each community the houses will vary in size and amount of rooms, but they should not too much. If resale value is an important consideration of home ownership, you should not buy the largest house in the community. When determining your market value, the homes that are nearest to yours have the most importance. If many of the houses in your community are smaller than your house, this can lower the appreciation of your house. On the other hand, if you buy a small or medium house for the community, the larger homes can help raise the appreciation of your house.
Three and four bedroom houses are by far the most popular among home buyers. There should always be a minimum of at least two bathrooms in a house, preferably two and a half. Walk-in closets are extremely desirable in any master bedroom. For the rest of the house, be sure there is plenty of closet and storage space.
Garages add to the resale value and you should always make sure to get at least a two-car garage. More and more three car garages have become desirable in many areas. The laundry facilities should be located somewhere convenient on the main floor of the house. These days some homeowners prefer to have the laundry facilities located near the bedrooms no matter what floor they are located on.
Families seem to congregate activity around the kitchen making this the most important room of the house. Larger kitchens are better, and they should have updated modern appliances. The dining room and breakfast area should be located adjacent to the kitchen. It is best if the family room is viewable from the kitchen. A fireplace in the living room may be nice, but you pay extra for it and will probably rarely use it and it does not usually add much in real value.
Swimming pools do not provide as much added value unless you are located in an area where most people have one. Having a pool in a cooler climate area may actually reduce your number of potential homebuyers when you try to resell the home. With DFW property listings you will find about 40% of the houses have pools. Only buy a home with a pool for your own enjoyment, not as an investment.
Pay special attention to determining your "wants" versus your "needs" because it is extremely important. Buying what you need in a more prestigious neighborhood may prove to be more financial rewarding than getting what you want in a less desirable neighborhood. You don’t want to over extend yourself and have your house turn out to be another Dallas foreclosure home. It is always best to get advice from a professional Realtor. If you decided to purchases a Dallas FSBO home, be prepared to make many of the mistakes most rooky home buyers make.
Most real estate value is due to its location but the building and the lot are important to. Generally, it should be as level and as open as possible. Assuming the property is in a typical neighborhood, the lot should be rectangular. Try to avoid odd shaped lots or oddly situated lots. Yard sizes are smaller in more modern homes than with the older counter parts, but there should still be a decently sized yard, especially in the rear of the house. You will get your best value if the house is moderately landscaped for the area. You can always jazz up the landscaping during your ownership but don’t over improve and spend too much.
In each community the houses will vary in size and amount of rooms, but they should not too much. If resale value is an important consideration of home ownership, you should not buy the largest house in the community. When determining your market value, the homes that are nearest to yours have the most importance. If many of the houses in your community are smaller than your house, this can lower the appreciation of your house. On the other hand, if you buy a small or medium house for the community, the larger homes can help raise the appreciation of your house.
Three and four bedroom houses are by far the most popular among home buyers. There should always be a minimum of at least two bathrooms in a house, preferably two and a half. Walk-in closets are extremely desirable in any master bedroom. For the rest of the house, be sure there is plenty of closet and storage space.
Garages add to the resale value and you should always make sure to get at least a two-car garage. More and more three car garages have become desirable in many areas. The laundry facilities should be located somewhere convenient on the main floor of the house. These days some homeowners prefer to have the laundry facilities located near the bedrooms no matter what floor they are located on.
Families seem to congregate activity around the kitchen making this the most important room of the house. Larger kitchens are better, and they should have updated modern appliances. The dining room and breakfast area should be located adjacent to the kitchen. It is best if the family room is viewable from the kitchen. A fireplace in the living room may be nice, but you pay extra for it and will probably rarely use it and it does not usually add much in real value.
Swimming pools do not provide as much added value unless you are located in an area where most people have one. Having a pool in a cooler climate area may actually reduce your number of potential homebuyers when you try to resell the home. With DFW property listings you will find about 40% of the houses have pools. Only buy a home with a pool for your own enjoyment, not as an investment.
Pay special attention to determining your "wants" versus your "needs" because it is extremely important. Buying what you need in a more prestigious neighborhood may prove to be more financial rewarding than getting what you want in a less desirable neighborhood. You don’t want to over extend yourself and have your house turn out to be another Dallas foreclosure home. It is always best to get advice from a professional Realtor. If you decided to purchases a Dallas FSBO home, be prepared to make many of the mistakes most rooky home buyers make.
Friday, August 20, 2010
Making a Lowball Offer on a DFW Home
Many potential DFW homebuyers thing a good strategy for making their home offer is to make a lowball offer thinking and assuming that they make get lucky and get their offer accepted. They figure the worst case is that the seller will counter their lowball offer, maybe half way, and they will still save a ton of money. This is possible but the chances are slim to none, closer to none. Many times a seller will be offend by the lowball offer and simply reject it. Even if that buyer submits a higher offer, the seller won’t even look at it.
Here are 5 common lowball offer mistakes buyers and their agents routinely make:
Submitting a Lowball Offer Before Calling the Listing Agent First
The listing agent can, in most instances, provide valuable information about the seller and their circumstances that will help you to write the offer in such a manner that the seller will be likely to accept. If your DFW Realtor doesn't call the listing agent first, for all you know, that home might already have a contract pending on it. Also, always call to find out how many offers the agent has received, if any.
Submitting a Lowball Offer With a Low Earnest Deposit
Earnest money deposits generally vary anywhere from 1% to 5% of the sales price. If a buyer submits an offer way below list price and then sends a small earnest money deposit it makes the buyer appears as though they are not serious or committed to buying the property.
Submitting a Lowball Offer With A Letter of their Situation
Most sellers don't want to read a hardship letter from a buyer and don't usually care if a buyer has fallen in love with their home that they can’t afford. Banks are even less forgiving in these types of situations. Explaining to a seller that the buyer doesn't qualify to pay list price sends a signal that the buyer shouldn’t be making an offer on other home in the first place. It makes the buyer appear financially weak and uninformed.
Submitting a Lowball Offer With Non Accurate Comparable Sales
Unless the home is substantially overpriced, the listing agent has already given the seller a comparative market analysis to support the sales price before putting the home on the market. Sending the listing agent a list of sales from another area insults the agent's intelligence and put them on guard that you are unethical. This also shows that the buyer's agent does not know the values in the neighborhood or the surrounding properties The best way to handle this to get your professional DFW Realtor to run recent comparable using the local DFW MLS that could possibly show that prices have in that area. If your Realtor can find a few DFW listings will much lower prices this could help support your lowball offer.
Submitting a Lowball Offer Asking For Concessions
If it's not bad enough to anger the seller with a lowball offer but it makes the situation even worse if the buyer also ask for concessions like help with closing cost on top of an already low offer price. Some sellers are willing to give a cash credit to buyers, but generally they will refuse to do so on a lowball offer. There are better ways to get a low-ball offer accepted than with making these 5 mistakes.
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