Sellers Who Are In The Know Can Compete Against Dallas Foreclosures

Dallas Foreclosures Aren't Usually the Great Bargain Many Buyers Expect:

Unlike what so many home buyers think banks are not giving properties away or selling them for half price. Despite the commercials and advertisements you see about stealing Dallas foreclosure homes for pennies on the dollar. Many banks will price a foreclosure property near the true appraised value, unless the property is in need of substantial repairs. With these Dallas foreclosures properties priced at little or no discount to market value, sellers of non-foreclosure Dallas Homes can make their properties look very enticing by having them in move-in ready condition and at little or no premium to foreclosure properties owned by the banks.

It Can Take a Long Time to Close a Foreclosure Property:

You would think common sense would say that these banks would be in a hurry to get these foreclosed properties off their books, but this rarely the case. These banks can take many weeks instead of days to respond to offers and counter offers. Getting responses from these banks can take almost forever. Many astute home sellers know that their home is going to fare well in competition with these foreclosures because buyers will be able to close and move in on a realistic time schedule. Even with nearby Plano homes getting a foreclosed property to close in a timely manner is a challenge to say the least.

Disclosure of Defects / Not With Foreclosures:

Banks will not disclose anything about the condition of the foreclosure property because they have no knowledge of problems with the property. Most state laws exempt Banks from disclosure requirement. Sellers will fare well much better in competition against theses foreclosed homes with a full disclosure, plus correction of what can be fixed prior to listing. Buyers will be comparing an unknown quantity with a full disclosure and condition report.

Repairs on Foreclosure Property Can be Scary:

The bank will not want to do any pre-closing repairs, offering the property "as-is." The buyer(s) will do an inspection, and it is likely that the list of repairs could be very extensive. The buyer's lender will want some or all of the problems corrected before closing. This causes a huge dilemma for the buyer and which will usually cause them to walk away from the property. A smart Dallas home seller will have done their own pre-listing inspection and corrective repairs. They will be offering the alternative of a move-in ready home, with proof of all repairs they've done to bring it to that condition.

Professional Realtors Need to Educate Their Sellers:

As a professional Dallas Realtor being consulted about listing a home, it is best that you educate your sellers about the pitfalls of Dallas foreclosures. They may be entering the market with the fear of needing to price their home at discount to compete with local foreclosure properties. Let them know all the facts first. Show them the advantages they have over the bank foreclosures. Advise then to make the appropriate improvements and repairs in order to come on the market with all of their competitive advantages in place.

Plano Real Estate and Buyer's Broker Agreements

Plano real estate buyers generally sign a buyer broker agreement with their Plano Realtors before writing an offer on a home. This buyer broker agreement spells out precisely that the Realtor represents the buyer only. This is also known as a “buyer representation agreement”. There are a variety of buyer broker agreements that are used throughout the United States. For example, we will review three most common types of buyer broker agreements, with most weight given to Exclusive Right to Represent because it's the preferred form for many Realtors use when selling Plano real estate and Collin County Real Estate.

Buyer Broker Agreement / Non-Exclusive

This agreement outlines the Realtors duties and obligations to the buyer, agency relationships to all parties, Realtors scope of duty and buyer obligations; it does not provide for Realtor compensation for the sale of any DFW Homes.

· Buyer has the right to single agency

· Buyer may hire more than one Realtor to locate property

· Buyer is not obligated to compensate the Realtor

Buyer Broker Agreement / Non-Exclusive Right to Represent

A non-exclusive agreement outlines the Realtors duties and obligations to the buyer, agency relationships of all parties, Realtors scope of duty and buyer obligations. This type of agreement does provide for Realtor compensation. It also removes the buyer's responsibility to pay a commission if the Realtor is paid by another party such as the seller.

· Buyer has the right to single agency

· Buyer may purchase a property through another Realtor, as long as the property is not a home the first Realtor brought to the buyer

· The Realtor can receive a higher commission than the negotiable fee stated in the agreement if the seller elects to pay more and as long as it is disclosed

Buyer Broker Agreement / Exclusive Right to Represent

This is a standard form that many Realtors prefer to use with their buyer clients. It is similar in scope to the non-exclusive form except for one major difference; the buyer has agreed to work exclusively with this particular Realtor.

· The commission is negotiable

· The buyer cannot hire more than one Realtor to represent them

· Buyer has the right to single agency

· The buyer is not responsible for the commission if another party pays it, such as the seller

· The Realtor can receive a higher commission than the negotiable fee stated in the agreement if the seller elects to pay more and it is disclosed to all parties.

A non-exclusive agreement may run for a month or two, exclusive agreement terms generally run anywhere from three months to a year. If the buyer elects to purchase any property introduced to her by the Realtor, they will owe the Realtor a commission. Exclusive representation gives the Realtor the ability to negotiate with unrepresented sellers (for sale by owners as an example) on the buyer's behalf. In these cases, the commission is typically added to the sale price and then paid by the buyer to the Realtor as part of the financing. If the buyer is able to purchase the property at a discount through the Realtors negotiating ability, the Realtor will have earned their commission. Exclusive representation means the Realtor is retained by the buyer and will work diligently on their behalf and have a fiduciary duty to that buyer client.

Termination of Buyer Broker Agreement

Ask the Realtor if they will release you from the buyer broker contract if you find that the relationship is not a good fit for you or and/or them. While Realtors are not bound to release you, if they won't agree to a termination upfront, don't sign the agreement with them find a Realtor that will agree to it. Professional Plano Realtors will give personal guarantees that the customer will be satisfied.

Is It Better To Buy a Dallas Short Sale or Wait for the Foreclosure?

If you put in an offer to buy a short sales Dallas waiting for an answer from the bank can be long and frustrating. A short sale situation happens when a seller's lender agrees to accept less than what is owed on the mortgage to allow the sale between the seller and buyer to move forward, and banks take a long time to decide. Sometimes short sale buyers wait up to six months or more for a response from the bank. Many times the banks answer is no, and that buyer will have wasted much time.

Short Sale Listing Prices

Buyers often get excited about buying a short sale for two reasons. The list price is very attractive and they believe the seller is desperate and they can get a lowball offer accepted. However, neither of those is necessarily true. Not every short sale is a Dallas foreclosure homes and not every seller is desperate. Many sellers and/or their Professional Dallas Realtors often set the listed price unrealistically low hoping to get an offer on their home quickly.

Is There Such a Thing as Preapproved Short Sales?

Realtors find out how low the bank will go is if an offer has already been accepted and the buyer walks away. Only then is the agent free to market the listing as an accepted short sale because banks almost never disclose their bottom price in advance. With a preapproved short sale, the new buyers' wait is shortened. Generally, about the time the first buyers walk away the sellers' documents have already been submitted to the bank, and the bank may have been close to, or had already, issued a short sale approval letter.

Short Sale Negotiations

The sellers can agree to any purchase offer but it's not binding unless the sellers' bank approves it. It doesn't matter what terms and conditions are in the offer if the bank won't accept them. Your negotiation does not really lie with the seller; it lies with the bank's negotiator. Banks often rely on desktop appraisals or BPOs (broker price opinions) to determine the property’s value. Although banks don't want to follow through on a foreclosure, they also want to get fair market value for the property to lessen their losses. It is up to the listing agent to provide comparable sales and to substantiate the price submitted by the buyer.

Will the Price be Lower After a Foreclosure?

Whether a home buyer should wait for the property to go through foreclosure depends on whether the home has one or more a offers on it. If more than one buyer has submitted an offer, the highest and most qualified offer will most likely get the home. If the buyer is the only buyer to put in an offer and the bank is responding negatively it might be in the buyer's best interest to wait until the home is foreclosed on. There is also no guarantee that a bank won't reject all the offers, particularly if none of them are high enough.

Many times banks aren't reasonable and end up shooting themselves in the foot, so to speak. I've have seen several listings where banks refused to accept short sale offers only to end up with the property through the foreclosure process, which then ultimately sell for tens of thousands less than what they were offered with a short sale offer . Don't get discouraged if the bank rejects or counters your short sale offer. Be calm and be well informed. Eventually the bank will put the home on the open market for sale as an REO (real estate owned). Watch for the property to reappear on the market as a bank owned foreclosure home. If the price is reasonable at this point, buy it from the bank, at the same price you offered with your short sale offer. At least buyers of bank-owned homes are relatively assured their transactions will close within 30-45 days, and most likely at a lower price.

Are You Ready to Make an Offer to Purchase Plano Real Estate?

Making an offer to purchase on Plano real estate and actually closing on that purchase are two different actions, but many times home buyers confuse the two especially when the purchase offer is not the final negotiation due to contract contingencies. In some areas on the East Coast, for example, it is common to write a letter of intent to purchase a home so save a lot of time and frustration. However, many other states contain provisions in their standard sales contracts that let a buyer withdraw their offer and get back their entire earnest money deposit.

Are You Hesitating to Make an Offer?

If the home you are considering buying is likely to sell quickly, and if you have a way to later cancel the contract, you should immediately make the offer. There is no reason for you to wait. Don't sleep on it or try to get every single question answered a head of time or you may lose the home to another buyer. Somebody else could beat you to the draw and steal it out from under your nose while you're busy weighing the pros and cons. This is common place with the sale of popular Highland Park Real Estate. If you really like the home, odds are other home buyers will like it too.

The Reality of Purchase Offers

When a home seller accepts an offer, they are hoping the buyers will complete the transaction at the price agreed upon and believes there is nothing wrong with the condition of their home. The home buyer is hoping the transaction will close because the home is in great condition. It's rare that either of those expectations are the reality. No home is perfect and many conditions can change once a contract is accepted. You should utilize the services of professional DFW Realtors to help avoid issues that could derail the sale or cost you additional money.

· Mortgages can be rejected

· Buyers often submit a repair list.

· Low appraisals can kill the sale.

Types of Homes That Quickly Sell

In a seller’s market, almost every home sells quickly. In a buyers’ market, the sale times will be longer. There are many inherent characteristics and qualities that determine whether homes are likely to sell fast, but these are the top two:

· Cosmetic fixer uppers in good locations and priced below comparable homes.

· Ready to move in homes in great neighborhoods, excellent condition and priced right.

If the home you want to buy falls within those two categories, you should make an offer on it quickly, providing you have cancellation rights. Some Realtors don’t like to waste time writing an offer that a buyer might later cancel and will try to persuade you from making an offer. Some might not even disclose to you that you have a certain number of days to withdraw your offer. Don't hire a Realtor who doesn't have your best interest at heart.

Benefits to Making Immediate Offers

· The obvious reason to make an offer right after you find a home you love is you will prevent anybody else from buying it. When the seller accepts an offer from you, the seller cannot accept another, except a back-up offer, good only if your contract is canceled by you.

· If your offer is first and only offer, you can many times negotiate the price and terms. You can try to make a lowball offer but your negotiation power is minimized if there are other offers.

· Even if other buyers are interested, they will generally back off once the seller accepts an offer, opening the door for your renegotiations.

Cons to Making Immediate Offers to Purchase

· If you're undecided between two homes and go enter into a contract on property 1, property 2 might not be available if you should back out of the first contract.

· Return of an earnest money deposit is not a given. Both parties are required to sign a cancellation agreement. In some States a seller can delay signing for 30 days, without penalty, an authorization to return the good faith deposit.

· Buyers can incur credit report, appraisal and home inspection fees that are non-refundable. Generally, closing cost, escrow and title policy costs are waived upon cancellation.

Given the alternative of losing the home you want it is advantageous to learn from the mistakes of others who have lost opportunities.