Will Home Prices Rise Among Tight Inventory And Strong Sales?

The National Association of Realtors (NAR) said that tight home inventory and strong sales combined with the lowest inventory in six years helped existing prices post annual gains for the eighth month in a row in October, 2012. Existing homes sales were up 2.1% from September to October and 10.9% from a year ago, to a seasonally adjusted annual rate of 4.79 million. At $187,600, the national median price for all housing types was up 11.1% from a year ago. The last time the national median price posted eight consecutive months of annual gains was before the crash in 2005 and 2006.

Rising home prices are beginning to boost home equity and the improvement could be even greater in 2013. Rising home prices have resulted in a $760 billion growth in home equity during the past year. Each percentage point of price appreciation translates into an additional $190b in home equity. In the Collin County real estate market 8,258 homes were sold through July 2012. In the Tarrant County real estate market 10,393 were sold through July 2012. In the Denton Count real estate market 4,495 homes were sold through July 2012.

NAR estimated there were 2.14 million existing homes listed for sale at the end of October, a 5.4-month supply at the current sales pace. That's the tightest inventory since February 2006, when the months' supply of homes stood at 5.2 months. October's home inventory is down from a 5.6-month supply in September and represents a 21.9%t decline from the 7.6-month supply that existed a year ago. Many analysts agree that a six month supply of housing is an even balance between seller and buyer demand.

More Interesting Information: Homes were on the market for a median of 71 days in October which is down a full 26% from a year ago when the time to sell an existing home took a median of 96 days. First time buyers accounted for 31% of all home sales in October, down from last October's 34%. Distressed homes, foreclosures and short sales, accounted for 24% of existing home sales in October which is down from 28% since last October. There was an even split between short sales and foreclosures. These distressed sales sold for 14% and 20% below market value. All cash sales accounted for 29% of October's sales which was the same as last year and a point higher than September’s sales. Investor buyers accounted for 20% of existing home sales in October, 2012.

All US regions saw the sales of existing homes and prices rise in October from a year earlier. The Midwest lead the way with an 18.1% annual increase of 1.11 million units and a median sales price of $145,600, up 10.6% from last October. The Northeast saw home sales increase 13.7% from a year ago to 580,000 units with median sales prices up 4.6%, on an annual basis, to $232,600. The annual pace of sales dropped 1.7% in the Northeast from September.  Existing home sales in the South were up 11% to an annual pace of 1.92 million units from October 2011. Median sale prices were up to $152,200, 8.2% above last October's median price. In the West home sales were up 3.5% from a year ago to an annual rate of 1.18 million units, and median sales prices sprang ahead 21.2% from last October to $242,100.

Everything You Need to Know About Real Estate Agents

The longer I work as a Dallas real estate broker, the more I understand that my profession must do a better job of educating the public about real estate agents and brokers. It seems that few home buyers and sellers really understand how real estate agents work, who pays them and why they do the things that they do. If you ask what the public knows you will hear many myths.

Because Plano real estate agents can make or break your transaction you owe it yourself and to your financial benefit to understand how they work. You should know the difference between Realtors and real estate agents. Should you use an agent or would you be better off doing it yourself? Which type of real estate brokerage firm is best for you? Should you sign up with a buyer broker agreement? Should you go to open houses and call other agents if another agent is e-mailing you home listings? How are real estate agents paid and who pays them? Do you know the different types of available listing agreements? Find out these answers before you start looking for an agent to represent you.

Finding and Hiring Real Estate Agents

I know an agent that was hired to sell a $750k house simply because he was standing in the street, wearing his name badge and talking on his cell. The seller hollered at him from his porch and said, "you look like a real estate agent. I need to sell my house!" This speaks volumes about agents, doesn't it? He was lucky because this agent knew how to price his home but another agent may not have been so knowledgeable. What few agents will acknowledge is the fact that more than half of the transactions they get are because they were in the right place at the right time. Not because they are experienced or competent. A great way to find an experienced agent is to Google Dallas real estate careers.  

Working With Real Estate Agents

Can you call your real estate agent at 9:00pm? How about at 6:00am? Can you work with more than one agent at a time? Can you get into if you sign multiple purchase agreements through different agents? If a listing agent shows you a home, can you call your agent friend to write an offer and represent you? What can you do if you are not happy or your agent doesn't meet your expectations? Can you get fire them? Can you buy a home directly from a we buy homess companies without agent representation? 

Real Estate Commissions - How They Are Paid

How agents get paid and are their commission negotiable are the two most asked questions from home buyers and sellers. It's not that complicated but it sure seems that way on the surface. What makes an agent worth all of that money? What do they do to deserve those six figure incomes? Does the amount of the commission depend on whether it's a buyers or sellers market? Is it possible to get maximum exposure for your home with a limited service agent? You owe it to yourself to get answers to these questions so you can have a successful real estate transaction.

Should a Buyer's Agent Contact a Seller Directly?

It's not that unusual for home buyers to think that the world of real estate would be much easier if the sellers and buyers could just sit down together and discuss an offer. But there are many reasons to utilize the services of real estate agents. It is also possible that you could alienate the seller if you try to bypass their listing agent. While many sellers feel comfortable showing you around their home most of them do not want to discuss terms of an offer directly with a potential buyer. If they wanted to sell for sale by owner they would not have hired an agent.

Not only do sellers tend to feel uncomfortable talking about the terms of an offer, they do not want to bypass Plano Realtors because they know that their agent knows more about real estate than they do. They trust their listing agent. A real estate agent offers a seller experience, knowledge and a fiduciary responsibility. The agent acts as a buffer between both parties because a buyer of DFW homes goal is probably to buy that home for the lowest price possible and, on the other side of that, the seller's goal is to sell their home for the highest price possible.

In your case, you hired a buyer's agent to represent your best interests. Even though, in most cases, the seller is paying your agent to represent you, your agent is responsible only to you and not to the seller. It is your agent's job to present your offer to the listing agent. If you'd like your agent to present your offer directly to the seller, your agent can ask the listing agent for permission to do so. In those situations the listing agent is still present with the seller. This is not possible for Plano foreclosures because the offer must be submitted to the listing agent who will forward it along to the bank.

The Dangers of Going Directly to the Seller

If you feel that your buyer's agent is incapable of representing you to the extent that you feel a need to bypass the agent, you may want to hire a different agent. I'll give you a couple of actual examples, and from them perhaps you can come to your own decision.

A couple of years ago, a buyer wanted to buy a home in Dallas. He thought that the listing agent did not want him to buy the home for some unknown reason. The buyer believed that the listing agent might have wrote a counter offer and asked the seller to sign the counter offer without explaining its terms and ramifications to the seller. The buyer decided to go to the seller's house, knocked on his door and expressed his concerns. The seller was very polite but disinterested. After the buyer left, the seller called his agent and complained. This upset the listing agent. The listing agent was uncooperative from that point forward, and the buyer did not buy that home.

Is It Breaking the Rules to Bypass the Listing Agent?

In a different transaction, a listing agent explained to a buyer's agent what the buyer needed to do to buy their short sale listing. Of course, the buyer did not believe his agent and fired him and then went directly to the seller.  The buyer was a young male and the seller was a mature, single woman. The seller interpreted the buyer's aggression, and she relayed her fears to her listing agent who then contacted the buyer's agent. The buyer asked if he could work directly with the listing agent but by this time his tactics had alienated everyone involved in the transaction, including the listing agent. The buyer ended up sabotaged his own transaction.

Was There a Death In The House You Are Selling?

When most folks start out to buy a home, the least likely question on their mind is whether there was a death n the house. Most home buyers are more apt to be thinking about where their furniture will look best and whether they can afford the payments, than has anybody ever died in the house. But to some home buyers, a death in the house is a defect that cannot be overcome.

If the Sellers Died In the House Would You Buy it?

 

Many Dallas real estate buyers generally say it depends on how the seller died in the house. Some types of death carry stronger feelings and are hard to comprehend. An elderly seller vs., a murder for example.

 

• Did the seller trip and fall down the stairs, crack open his head and instantly die?
• Did a burglar break in and surprise the seller by shooting him in the middle of the living room?
• Was the seller ill for a long time and died peacefully in her sleep?
• Was the home the scene of a homicide or a suicide?

Buyers of older Plano homes should realize that in the early 1900s, many people were born and died at the same home. It is more likely than not that a death has occurred in the house over the years. Does it matter if it happened 100 years vs. 10 years ago? You can be certain that many 300+ year old homes in France could have been involved at one point to the French Revolution and its occupants murdered.

 

Must Listing Agents Disclose if Sellers Died in the House?

 

Not all states require such a disclosure. For example, in Colorado, neither the agent nor his sellers are required to disclose if a person died in the house. But in Texas, if a "unnatural" death occurred in the house it's considered a material fact and must be disclosed.

 

Sellers should use common sense. If it's a fact that you would want to know when buying a home, then you should probably disclose it. Some classes are protected, however, such as sellers who die from AIDS or AIDS related illness. Find a real estate agent to ask or check with a real estate lawyer to determine the laws that govern in your state.

 

How Does a Death in the House Affect Its Value?

 

Some of these houses end up being sold to one of those We Buy Houses companies that have a network of buyers. We can all agree that there is nothing about a death in the house that will improve its value or marketability. Most home buyers will move forward with a purchase of a house if they find that an elderly person has passed away in it. On the flip side though, if they find that a violent murder or a suicide took place in the house they will probably not move forward with the purchase and it may take a step cut in the sale price to find a buyer.

Use a One-Size-Fits-All Approach to Marketing Real Estate?

We are about three-quarters the way through 2012 already. It has been an extremely busy and successful year for agents working in the DFW real estate market. Looking back from the beginning of the year I took a look at what three marketing ideas that made this year such a success that can be used through the end 2012. We know that not all clients are created equal so you have to come up with a variety of marketing approaches that may reach each perspective client in a way they are receptive to. Don't use a one size fits all approach to marketing.

Here's a great plan of action:

 

Mailing Newsletters:  This approach is great for the prospects in your database. Theses folks want to know what's going on in the DFW real estate market but they generally don't want me calling or stopping in on them. They prefer email or regular mail. Send them a custom newsletter on a regular basis. It should include market reports for the last three months of real estate activity. Make sure to narrow the reports, meaning, if they live in Plano send them a Plano real estate report. The report should also include the activity for their specific neighborhood. This means each newsletter will have to be customized to that particular client's neighborhood so they not only see what is going on in the Metroplex as a whole, but also what is going on in their own neighborhood. Ask your favorite lender, home inspector stager, etc. to contribute articles for your Dallas real estate newsletter. 

 

Stop By for a Visit: This approach is only for those prospects who don't mind being surprised. They are socialable and love to talk. The plan is to stop-by with an item of some value. Christmas will be here before you know it and everyone loves to have a family photo taken for their Christmas cards. You can partner with a local photographer who will agree to provide you with discount certificates for a family photo. This certificate should include the verbiage: Discount Provided by "your name" of "your brokerage companies name".

 

Client Appreciation Party: This is a great approach is for those clients who have closed or helped you close a transaction with you this year, either through buying, selling or referring a client to you.  Make sure to include the buyers and sellers who are currently have a transaction under contract with you. Some of these buyers may be moving into the area from out of state. This gives them a great opportunity to meet other people who are already living and working in the DFW area.  I would also make sure that your preferred lender, home stager and home inspector are also in attendance. This is a great way of thanking them for their support in your business.  

When prospects in your database think of buying or selling a home you want to be their go to agent.  You don't want them to consider any other person for their real estate transaction. The best way to do that is to remain at the top of their mind. Many times, real estate agents don't use enough creativity when it comes to growing their real estate business. When these agents go on a listing appointment or meet for a buyer for consultation, they should continually be able to share with them how their custom approach is going to be different than any other agent they have met. That should be your goal to accomplish with these strategies. Your goal should be for your prospects and sphere of influence to see that you are doing things that other real estate agents are not and that's the reason you should be their go to DFW real estate agent.

Getting Ready To List Your Home. Start With These Things

No matter if you are selling your home in a traditional manner or via short sale you need to get ready for listing your home. Many listing agents insist that you get your home to be in pristine condition. You can do the obvious things before the listing agent shows up or you can wait until they give you a list of items to complete before the home is marketed. Below I will touch on some of the main items.  

Create Curb Appeal 

Clean up your yard, front, back and sides. You may have some projects that you have been meaning to get around to doing but simply have not had the time. Now you need to make the time. Here are bare basics you should do:  

 

·Weed, rake and mulch.

·Trim trees and bushes in front of your windows.

·Cut dead and low hanging branches from trees.

·Sweep and hose off your sidewalks and driveway.

·Park your extra car in the garage or down the street, not in front of the house.

·Remove trash cans and store them in the side yard or garage.

·Set out a few pots of bright flowers near the front door to add color. 

 

When your agent is listing Tarrant County homes or Denton County homes and they pull up in front of your house, they agent will feel as though you were expecting them and that you are preparing to sell. If you don't do these things a good agent will find a respectful way of telling you what needs to be done to make the home more marketable.  

 

Getting Ready Inside Your Home

DFW Realtors say that you would think it goes without saying that your home should be clean, very clean. But everybody's idea of clean is different, it is subjective. Don't force your agent to put towels over dishes in the sink, pick up pet dishes from the floor or make your beds. At the bare minimum do these things when you are getting ready to list:  

 

·Vacuum and sweep the floors.

·Clean everything off the kitchen counters. Yes, everything including all of your nick knacks.

·Remove the magnets from the refrigerator and your kid's artwork.

·Put away all personal photographs and photos on the walls.

·Make the beds and tuck in sheets.

·Pick up all clothing, toys and other items from the floor and put them away or at least hide them.  

 

If you are packing or have too much stuff try storing all of your extra items in one room to clear up the other rooms for photos. You can also store items in the garage or shed. Almost every home will show better with half of the furniture removed. You may want to consider moving out some of your "extra" furniture, especially if it blocks pathways.  

 

Designate a Spot to Sign the Listing Paperwork

 

Many agents I know are happy to sign a listing agreement with you just about anywhere including the roof of a car. It is much more pleasant and comfortable however, to sit at a dining room or kitchen table. Many agents prefer the dining room over the kitchen or living room. Here are some tips: 

   

·Offer your agent something to drink as they will be doing a lot of answering your questions.

·Keep the cat off the table and from walking on the listing paperwork.

·If you don't understand a particular form, ask your agent to explain it to you completely. If not, this is how mistrust develops and communication breaks down, so don't be afraid to ask questions. If you don't trust your agent enough to answer a question for you, don't hire this particular agent.

·Ask for a copy of everything you sign.

    

When I leave listing appointments I give the sellers a few of my business cards and ask them this trick question. I advise them that when the for sale sign in the yard, passersby might stop and knock on the door. If they do, what should the sellers do? Almost every time the seller will say they would invite them in. Wrong! Don't let these strangers in your home. An agent that comes to show your home will produce a business card for you. If a passerby rings your doorbell, give that person your agent's business card and ask them to call your agent to scheduling a showing.

Ways Not Lose Money When Selling Your House

Even in this recovering real estate market there are tons of homeowners who think they don’t have enough equity in their home to be able to sell it. I remember when a seller asked me to come by her home one day after she got home from work. She asked if I would list her home as a short sale. I could feel her stress, which was understandable, but her reason for wanting to sell as a short sale confused me. I asked her why she thought she had to do a short sale. She answered, because I don’t have any equity. But the reality of it was that she had plenty of equity, and the house was sold as a regular sale. Many sellers don't know how much their home is worth or even how much they owe. If they don't know these two basic pieces of information, they might not know how to save money when selling. Here are a few ways to not lose money when selling your home.

Higher A Good Listing Agent

This is the single most important factor in selling Collin County real estate or Tarrant County real estate because they will help you to get them most equity out of your home that is possible. Many times sellers want to hire a discount agent to save commission dollars, and that is very often the wrong approach. Say the difference between two agents is 1% of the final sales price. If an seasoned agent who offers you more marketing and better service charges 1% more than a competitor but brings you, say, 9% more in profit, you are further ahead. You may, in fact, lose money if you hire a discount agent who offers you less.

 

Pricing Your Home Right At The Start Can Save You Money

The longer your home sits on the market, the less it is worth in most buyer's eyes. Don't make the mistake of testing the Plano real estate market or you may very well end up losing money. If you list your home in line with the comparable sales, you will get buyers interested to see it. If you don't get them to your home, they can never buy it. Here are few things that will help you to not lose money:

 

·         Tour open houses in your neighborhood and look for trends. Note what makes one home more appealing than another. If you can drive desire in a buyer, a buyer will make an emotional decision, not necessarily a practical or affordable decision. And that may result in more money for you.

 

·         Compare the prices of sold homes within the past 3 months with homes currently on the market. Are prices holding steady, going up or down? If you were a buyer, which home would you buy? Consider prices potential buyers will see and price your home accordingly.

 

Preparing Your Home For Sale

It may cost a little bit of money to get your home ready for market, but your return should far outweigh the expense.

 

·         Set aside an amount of money you can afford for repairs and for cleaning up the home. Ask your agent to help you determine which items are the most important to handle.

·         Keep the bath rooms extremely clean and fresh. Spend $25 on some hand towels and tie ribbons around them. If the room is a dark color, paint it a lighter color.

·         Read books and articles on staging a home and study them for valuable ideas. Your real estate agent can help you with home staging ideas as well.

 

Carefully Review Closing Fees During Negotiations

Buried in the contract documents will be a list of fees that the buyers and sellers will pay. Also, the buyers may ask for additional inspections or seller concessions toward their closing costs. All of these fees are negotiable. If the buyer asks for 2% toward closing costs, consider increasing the sales price to compensate.

 

·         When it is time to respond to an offer always try to negotiate these fees. Even if it is normal and customary for the seller to pay certain fees in your area, you can always the ask buyer to pay them in your counter offer.

·         If you can get away without paying it, don't automatically agree to pay for a buyer's home warranty. If a buyer asks for certain reports such as a pest report or a roof or foundation inspection, put a cap on the repair costs because these reports may obligate you to pay a considerable amount.

To wrap things up, if you can't afford to sell your home, don't, if you don’t absolutely have to. Wait for the market appreciation kicks in and/or when your mortgage pays down

Searching For Real Estate in the County

You have decided that you want to buy real estate out in the county. Of course there are a lot of houses for sale so how hard can it be to find the right one for you and your family? For anyone who has hunted for a home before, you know what the answer is. Home hunting can be a very time consuming and a difficult process if you don't know where to begin. To get going in the right direction, it is paramount that you know what you are looking for. Make your wish list that includes everything you want from your choice of neighborhoods, number of bedrooms and bathrooms, budget and amenities.

There are buyers out there looking for Collin County real estate that aren't sure if they're in the market for a townhome, condo or a single family home. They don't know if they want to live near the center of the County or on its outskirts.  If this sounds like you, then your Realtor can be a big help to you. Your Realtor can show you different options and explaining the pros and cons of each of them. This preview session will help you make a firm decision on the direction you are headed.  Then, learn how to navigate MLS on almost any local Realtors website.  With today's technology, it's all about previewing a home online before you take the time to physically go take a look at it. Just because a home meets the criteria you've set forth for your agent doesn't mean it's a home you should go see in person.  Don’t burn up gas, time and money that you don’t have to.

 

Even if you are looking for Tarrant County real estate or Denton County real estate  Realtor.com is a great place to get started on your search. They display all the listings in the County you want to live in, searchable by square foot, bedrooms, bathrooms, price range, amenities and more.  Has your Realtor sent you listing which contain MLS numbers?  If so, you should be able to input that number on the MLS website to take you directly to that particular home listing. Even better yet, have your Realtor set you up for daily or weekly email listing updates. They will send you links to newly listed homes that fit within your search criteria. And finally, keep an open mind. Some homes look great online and they can appear to be your dream home but once you see them in person they simply don't measure up.  I assure you the home you are searching for is out there.

 

Keep in mind that the opposite can be true for homes as well. A home may look a bit ugly, smallish and run down online, maybe because of bad photos or bad decor, but in person you realize the neighborhood is just what you we looking for and the house meets all or most of your needs. All it may need is some cosmetic updates. Don't keep second guessing yourself. If you have a solid plan on what you want, you'll be more likely to make a decisive move when the time comes in a key moment. Waiting too long to take action could mean losing out on a home you really want. Being realistic about your wants, needs and budget is a great way to make the home hunting process a whole lot smoother. Keep in mind that for most folks there may not be a "perfect" home but their surely will be a home that is right for you.

 

Does Your Type of Mortgage Give You an Advantage When Buying a Home?

Home buyers in today’s market where homes in good areas, in great condition and are priced properly are drawing in multiple offers. They want to know if they have a better chance in getting the home if they pay with cash, or if, if they are using financing what kind of financing is best, where can they get an advantage.  What makes any one purchaser better than another when compared against each other by type of financing. These buyers would be astonished if they knew how unfairly some purchase offers are ranked due to their choice of financing. 

You would be wise to consider how your offer may be perceived by the sellers. Since most of us can’t pay all cash for a home the type of mortgage you intend to use may greatly affect that perception. If you are in a seller’s market like in the Plano real estate market you would also likely to be competing against multiple offers from various types of buyers. If this is the case your offer will be even more closely judged and scrutinized. 

 

There are Fair Housing Laws that prohibit discrimination based on protective classes but other types of discrimination are not restricted like “source of funds”.  Most sellers and their Realtors don't make it a practice of telling buyers why their offer was rejected. They are not required to explain why. It is common practice to judge a purchase offer by the type of financing the buyer chooses to obtain to complete the purchase. Purchase offers for DFW homes are often ranked as follows. The best type of offer is listed first, with the least attractive offer ranked in last place:

Cash: This is cash on hand that the buyer has in a savings account for example. A cash offer is typically accompanied by proof of fund. Because cash is so highly rated, sometimes cash buyers are able to negotiate a discount, a price less than that of a buyer who is going to obtain a mortgage. But don't count on that being the case every time. Remember that all offers, except owner financing, result in cash to the seller at closing. The main benefit to a cash offer is that there are no underwriting restrictions to deal with.

·         Conventional Mortgages: A buyer’s FICO score requirements for a conventional mortgage are higher than those for an FHA mortgage. You can still get a conventional mortgage buy Collin County homes if your FICO score is the same as the minimum required for FHA but you will pay a little bit higher interest rate. Preferred interest rates are available to borrowers who put down 20% or more in cash, resulting in an 80% loan to value ratio or less. The lower the ratio, the lower the risk is to the lender. If the appraisal comes in lower, often the lender will let a borrower pay the difference in cash but on if the loan to value is less than 80%. Another advantage to using a conventional mortgage is that lender funding requirements are much less stringent.

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·         FHA Mortgages: Many first time home buyers go for an FHA mortgage because the initial down payment is generally less than the amount required for a conventional mortgage. Also, the FICO score requirement is much more lenient. The minimum down payment for an FHA loan is 3.5% of the purchase price. FHA repair guidelines are not as strict as some sellers and Realtors believe. But some older homes tend to need more repairs. Peeling paint is a huge issue if the home was built prior to 1979 due to lead based paint concerns. The home can have a concrete floor without carpeting, but it better not have peeling paint. FHA loans are sometimes held up from closing due to funding conditions. A termite report and clearance may be required by the FHA appraiser.

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·         VA Mortgages: Unfortunately, military veterans get the short end of the stick when it comes to competing for a home. VA borrowers are generally a better credit risk than an FHA buyer because the requirements to buy without a down payment are much more stringent. A mortgage borrower retains the option to put a down payment into the home or buy without a down payment. Most VA borrowers choose the zero down payment option. The downside to a VA mortgage is that termite reports are required. Due to the mortgage hierarchy and misconceptions, VA buyers many times fall to the bottom of the offers even when they might be the most qualified. Realtors who handle a lot of short sale transaction usually to prefer VA buyers because they know these buyers will get turned down elsewhere, which makes them a committed candidate for a short sale home.

Home Sellers Talking to Buyers - Not a Good Idea

Many times a home seller will tell their Realtor that they do not want to have a lockbox on their home. No lockbox means much fewer showings and it is a red flag that trouble may lie ahead with these sellers.

 

When a seller talks to buyer’s agent and the buyers, trouble is usually the end result. Sellers many times will say the wrong thing. Buyer's agents are there to gather information and use it against the seller when it comes to negotiation time. Buyers agents who are Realtors are not supposed to talk to the seller in an esthetical manner or a manner that would be deemed unethical. It is important to note that not every agent is a Realtor. Even an smilingly simple question could turn into a complicated answer, which could affect the seller in a bad way.

Questions a Seller Should Not Talk About With a Buyer’s Agent.

Regardless if you are selling Collin County homes or Denton County homes sellers never think that they are saying something that could come back and bite them. They want to be informative and helpful. They can be told to keep their mouths shut but it doesn't do any good. Instead, I would suggest they say something like, “Please discuss that with my agent," as a way to deflect and defuse questions. They can also let the buyer and their buyer's agent know that they are not being impolite but that their listing agent has advised them to not answer any questions. When it comes to Tarrant County homes here are questions that can cause problems in a transaction if the seller talks to the buyer about them:

·         How many offers have you received on the home?

If you have received more than one offer and your home is not sold, buyers will be wonder if there is something wrong with you or the home. If you haven't received any offers, they will also think that something may be wrong.

·         How long have you lived in this home?

If you've lived in the home for only a couple of years or so, the buyers might think you're selling because the home isn't what you thought it would be when you bought it. If you've lived in the home for a long time, buyers may think you have a lot of equity that you don't know what to do with it.

·         How much was the highest offer?

That's the thinking behind this question. Sometimes, it is slipped in so quickly that a seller will respond without realizing it. You don't ever want to show your hand.

·         How fast do you need to move?

If you tell the buyer that your husband’s job has been transferred out of state and you wished you had sold last month, you are telling the buyers that you are desperate for an offer. Usually, desperate sellers often get hit with lowball offers.

·         Where are you moving to?

If you're moving into a less expensive area, there are buyers that will think they don't have to pay the list price because they might decide you don't need the money. If you're moving to a higher priced community, buyers could be afraid to make an offer on your home because they worry it won't meet your monetary requirements.

·         Why are you selling your home?

To avoid a lowball offer don’t even think about answering this question. Even joking about it can backfire. Agents and buyers will judge you on this question and try to use the information against you. Don't answer it.

·         What are your neighbors like?

People can be very judgmental. Don't give a prospective buyer a reason to eliminate your home from their list. If they want to know about the neighbors, let them go talk to them without your input. Unless there’s something about your neighbors that may be construed as a material fact just don’t talk about them.

What repairs have you made to the house?

When selling your home most jurisdictions require you to fill out and sign a seller’s disclosure that you must make available to prospective buyers. This disclosure will list the repairs you have made to the home so there is no reason to discuss them prior to an offer. Sellers often remember repairs as costing more than the repairs really cost. In many cases, the cost of a repair does not add much to the value of the home. You don't want a buyer to wonder if your home is falling apart at its seams. This is why sellers should not be home when a buyer comes through to view it. Not only does a seller's absence allow the buyer privacy and time to consider the home as their own, which they can't do if a seller is present during the showing, but it also prevents the buyer from talking to the seller and it stops the buyers' agent from talking to the seller. Let your agent talk to the buyer's agent. That's why you have hired the agent to represent you in your transaction. Let your agent do their job.

Mortgage Companies and Dallas Foreclosures

Mortgage Companies and Banks own Dallas real estate because they have acquired these properties through the foreclosure process. Properties on the bank's books are called REOs, which stands for "real estate owned." When banks receive property through a Dallas foreclosure, it's because no one bid the minimum amount of the existing mortgages at the courthouse steps. These foreclosures may not seem like a good value, especially if the bank wants to sell these properties for the amount that was owed to the bank by the previous property owner. With all that said, here are at least two reasons why an REO can be a great Dallas home value for you:

If there were two mortgages on the property the second lender may not want to foreclose on the property. If the second lender does not make up the back payments and cost to the first lender and that first lender goes forward with its own foreclosure, the second lender will get wiped out in the foreclosure, a devastating loss to that lender.

The bank does not, and cannot sit on its foreclosed property. Since the bank did not receive its minimum bid from a buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO property for less than what is owed to them just to get that property of its books.

Negotiating for REO Properties

If the DFW home listing is new to the market, it is very likely that the bank will not come off much from its listed price. You will have better negotiating power if you go after properties that have been on the market for more than 30 days. Here are a few more tips:

Many banks will not paying typical closing cost for the property buyers. Some fees such as title policies, county and state fees, are paid by the buyers and not the bank. Banks generally will not pay for termite inspections, repairs or home warranties.

Banks often negotiate bulk-rate discounts with title and escrow companies. If you choose to use the bank's title/escrow company, check the fees of those companies. Typically, fees not paid by the bank but paid by the buyers will be higher because title and escrow companies often make up those discounts by charging the buyers more.

Some banks will not sign a counter offer until all the terms are mutually agreed upon between all the parties verbally.

Expect that the bank will require you to sign its own addendum to your standard purchase contract. Read it thoroughly and ask a real estate attorney for advice if you do not understand everything in it. You can bet the bank's lawyers drew up that addendum, and it's not in your favor.

If the bank won't budge on its price and you receive a rejection, wait 30 days and then resubmit your original offer.

You might wait 10 days, or more, for a response to your offer from the bank: be patient.

The bank may ask for you to submit a loan application to them so they can prequalify you so they will be sure you can close on the property. You will not be obligated to obtain your mortgage from that bank.

If you cannot close by the closing date listed in the contract, the bank may charge you a penalty for each day you don't close pass that date. Make sure you have get a mortgage pre-approval from your own lender before submitting an offer to the bank so you will have assurance that you will receive the financing from your lender without running into unexpected delays.

There are some drawbacks to buying a foreclosure property. In almost every case you will likely be required to buy the property in "as is" condition. You still have the right to make your offer subject to a home inspection though.

It is in your best interest to retain the services of a professional Dallas Realtor to guide you through the ins and outs of the Dallas foreclosure market. The best thing is that you get 100% representation and it cost you nothing because the bank pays the Realtors commission. You Win!

Safety and Privacy During a Plano Home Showing

Is your private information safe? Before a Plano home goes on the market and home buyers begin to come through the door, smart sellers will put away confidential and sensitive information. You might be astonished to learn what “home buyers” can learn about you as they are looking at your home.
Your Private Documents
• Some potential home buyers will open your drawers and cabinets.
Buyers can innocently, or on purpose, pull open a drawer or cabinet to inspect its construction, or size and come across important personal documents that you might not intend for anyone to see.
• Don't leave mail sitting out where a potential buyer can find it.
Many sellers leave piles of opened mail stacked on their kitchen counter. A potential buyer could find out how much you owe on your mortgage or how much money you have in the bank and other information you may not want them to know. These sellers must believe that buyers, and their agent, will not read their personal mail, even when that mail is taped to the front of the refrigerator door.
Remove Photos and Diplomas from your Walls Notwithstanding that all personal items should be removed before the home is shown in the first place, sometimes sellers leave diplomas on the wall. People may form biases and can carry a bias a little too far. As an example, the seller might be a lawyer, and there are buyers who might not feel comfortable buying a home from a lawyer. For whatever reason. Wedding photos may give away the seller's religion or the fact that it is a mixed race marriage, as will certain religious artifacts left in the home. Sometime buyers can be prejudiced. Don't give buyers a way to form any opinion about you at all. It serves no purpose to let buyers form ideas, opinions and prejudice about you from the type of music you like or the type of books that you read.
The Contents of your Closets
Many time sellers who are separating or getting divorced feel pressure to sell their home quickly, especially if the partner who remains in the home cannot afford to stay in it. But that is not information sellers will want to share with potential buyers. Yet they do so by making simple mistakes like these. They may as well toss their wallet out the car window going down the highway for just anyone to find. Don't leave any telltale clues around that could give away your motivation to sell. Before you put your Plano homes for sale on the market, get the home ready to show making it safe and secure by empting out your drawers, cabinets and closets and pack up all of your personal items away. If your house speaks to a buyer about you, it's probably saying the wrong thing. I have seen Dallas foreclosures properties for sale that had many embarrassing items in the property that had once belonged to the owner. So before your home shows as a DFW MLS Listing make sure your safety and privacy are protected.

Has The DFW Real Estate Market Returned To Normalcy?

As the DFW real estate market continues to recover, developments throughout the area point to new trends within the DFW Metroplex and throughout the nation. Specifically, the economic crisis of the great recession and all the developments related to the rise and fall of real estate prices in the last several years are now showing a return to normalcy. Meaning, the push by real estate investors to buy foreclosed homes and distressed properties which are resulting in purchases at the expected listing price, now has home owners in a holding pattern. This is not necessarily a bad thing for the market as a whole.

This market condition which unveils a more conservative buy and hold strategy among many investors, is good for just about everyone, Dallas Realtors have qualified buyers who want to own real estate and prices had a chance to stabilize. The market as a whole, the criteria we use measure real estate appreciation are reverting to more predictable standards. These events offer all DFW real estate agents a good example of how to respond to increased demand in the market.

To the extent that investors view the housing market as an inviting opportunity they believe that we are in a new era in the real estate industry, a more attractive environment, where investment speculation is much less common and the focus on growth is back. Realtors welcome this news because it gives them a strong argument with their clients about buying real estate, that a home is an investment, something that can appreciate, provide income (rental properties) and remain whether or not the economy is in expansion or contraction mode. Realtors should work more enthusiastically with their investors, their We Buy Houses clients, their assets, knowledge and analysis about long term investment performance for real estate within a certain areas and neighborhoods. Are these areas and neighborhoods the key to transforming a house from a commodity into a tangible source of investing success?

Real estate agents and investors can and should work together, so that the outcome is a positive one. Both parties can identify potential investment properties where, despite the aggressive competitive bidding by other investors, the price for a property and its relative value among similar houses in the same area can foster a sense of partnership. The one thing that the real estate market does not need is an agent responsible for distorting the values of property and created wild speculation. This, fueled with easy credit, and accelerated by inexperienced investors who buy with unrealistic expectations, these factors are a recipe for financial disaster. This highlights the importance for Realtors and seasoned investors to collaborate with each other and creating a climate of economic vitality and responsibility.

If all of these principles are followed then the great DFW Metroplex can go from a city with excess housing inventory and foreclosures to a place where the real estate market is strong and sales are brisk. Realtors in other cities across the Nation can replicate the success of the DFW real estate market, and bring all of its communities back to life. This period may in fact, become a new era, a golden age of sustained recovery, stability and ultimate success. This duty rests on the shoulders of real estate investors and Realtors to create a plan that distances its self away from speculation and towards stability. Both of these groups are already close to that point. They just need to continue working with each other, for their own mutual benefit and the good of the community in which they live and work.

Don't Lose Your Home to a Fire

Thousands of homeowners experience devastation due to fires every year according to the US Fire Administration, more than 3,500 Americans die and another 18,000 are injured in fires every year. Some of these fires originate in the home itself while others are in the form of wildfires, which run rampant when conditions are dry and windy. Many of these fires could have been avoided if the proper safeguards were in place. Let's take a look at some of the main causes of a fire in homes and what can be done to safeguard both your home and your family.

A surprise? The leading cause of fire related deaths is from smoking. Cigarette fires kill more than 1,000 Americans each year and injure another 4,000. Moreover, cigarettes, or more accurately smokers. start a quarter of all fires each year. USA Today has reported that "cigarette fires have been the top cause of U.S. fire fatalities for decades, killing tens of thousands of people in the past 30 years, according to the National Fire Protection Association (NFPA), a research group that provides data for state and federal fire codes."  These national averages apply to DFW homes and Plano homes as well.

Smoker; keep your cigarette butts in one spot and not littered them around your yard and your neighborhood.. Never throw them along roadways, or in dumpsters, trash cans or next to buildings. Another leading cause of fires is children playing with matches and lighters.  Make sure you have a serious talk with your children, no matter their age, about the dangers of fires. More than 100,000 fires are started by children each year and over 30% of those fires end up killing the same children that started them. It can take less than 30 seconds for a small flame to turn into a major fire. Make sure you carry the proper insurance in case your home is the victim of a fire. If not you may end up selling your home to one of those "We Buy Homes" companies.

Be responsible and create a no fire plan for your home.

1. Have smoke detectors on each and every level of your home
2. Never leave a fire, candle, cigarette or cigar unattended.
3. Make sure you have a fire extinguisher, as well as a garden hose at your home.
4. Never build fires or burn brush near your home or during dry and windy conditions
5. Remove dead leaves from gutters and your roof and around the base of your home.
6. If you live on top of a hill, beware that fires spread quickly as they spread uphill. Patios and stone walls can help deflect the flames.
7. Avoid the use of bark chips or mulch around your home, which are highly flammable.

FEMA gives homeowners tips that are valuable about creating a 30 foot safe zone around their DFW homes to help safeguard their property during wildfires. First, fire feeds on vegetation both live and dead. Keep your shrubs at a minimum, remove vines from the walls of your home, and consider pruning branches so that none are within 15 feet of the ground. Also, always keep your firewood stacked at least 100 feet from any building structure.

1. Use fire-resistant building materials when possible.
2. Cover your homes vents with wire mesh to keep embers from entering the home.
3. Prepare to store water and have an external water supply, such as a small pond, well, or pool.
4. Avoid flammable roofing materials and instead choose single ply membranes, slate, fiberglass shingles, metal, clay or concrete tile.

Sometimes there's no matter what you do there are times when nothing that can be done to prevent a fire.  A thoughtful and responsible homeowner takes all possible precautions to safeguard their home and loved ones in the event that a fire does occur.

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DFW Home Marketing Bloopers

When real estate markets slow down, usually the inventory of DFW homes increases and the number of home buyers decrease. These market conditions make it more difficult to sell homes, yet some homes still continue to sell. Why do some homes sell and others seemingly sit on the market forever? The answer has little to do with the home itself, although many agents will claim such. More than likely the problem lies within poor marketing. Below are some mistakes I see sellers and their agents make time and time again.

Bad Marketing

Uploading Poor Quality Photographs Online

The old cliché is true and pictures speak volumes and are noticed before the written word. Since it's the first thing a potential buyer will see, why leave a bad first impression when it comes to selling Dallas homes or Plano Homes? The job of a photo is to entice the buyer to want to see more of the home in person. It should not give the buyer a reason to cross the home off her list. Don't publish photos like these:

• Uncropped photos
• Pictures too dark with blinds closed
• Photos turned sideways
• Photos zoomed in on one item, like the kitchen sink.
• Photos of cluttered rooms
• Not submitting enough photos or uploading only one photo of the front of the house
• High resolution photos without adjusting pixels for Internet use

Withholding Important Descriptive Comments

When there are tons of homes on the market, just giving out a property address while noting the numbers of bedrooms and baths is insufficient information for today's home buyer. It doesn't tell a buyer why she should schedule a time to see the home. Good marketing tells a buyer why this particular home is better than the dozens of other homes on the market. Sellers should focus on:

Restricting Access for Showings

If an agent can't easily show your home, he is going to show another listing instead. Don't give an agent a reason to pass up your home. Any of these can hamper showings:

• By appointment only
• No lockbox on the property
• Restricted hours to show
• 24-hour notice

How can you expect to sell the home if perspective buyers can't see it?

BAD MARKETING: Offering Less Commission Than Other Listings

It's not that agents are greedy creatures who show only high-fee listings--which is against the law, although some are highly motivated solely by income--but agents tend to view lower-commissioned listings as those in which the seller isn't very motivated to sell.

• If the seller isn't motivated, it could mean the seller isn't willing to negotiate on price.
• In slow moving markets, buyers expect to negotiate.
• Agents whose buyers want to negotiate will show only listings where negotiation is possible.

Not Offering Buyer Incentives

On some million dollar listings sellers offer a car as a home buyer incentive, but it doesn't have to be anything that expensive. An incentive doesn't even need to cost the seller if the home price is structured to account for the discount. Here are some typical incentives:

• How can a negative factor be addressed that will accentuate its positive attributes?
• What makes this home unique?
• What was the motivating factor that made the seller buy this home in the first place?

BAD MARKETING: Underestimating the Importance of Broker / Agent Previews

Just like buyers, agents don't have the time to look at every home on the market. So, what can you do to entice them to come see yours? Because agents are more likely to sell a house they have toured, sellers need to attract selling agents.

Not Having a Virtual Tour

Almost all buyers today begin their home searches online. There is no better way to initially view a home than in the comfort of one's own pajamas at home in front of the computer, looking at a 360-degree tour. Some buyers won't even consider a property listing if it doesn't include a virtual tour.

GOOD MARKETING

• Catered lunches. Go beyond the ordinary sandwiches and bottled water. Food motivates, and don't let anybody kid you about this. Be creative with culinary selections.
• Offer drawings for small gifts or gift certificates.
• Give online certificatesthat can be immediately e-mailed.

• Call first, lock box
• $$ credit toward the buyer's closing costs
• Home protection plan
• Pre-paid homeowner association fees for a year
• Buy-down mortgage interest rate
• Weekend getaway for two

• Sunday classifieds in daily newspaper
• Picture classifieds, if offered during the week
• Local weekly or bi-weekly newspaper

• High resolution photos that buyers can print themselves.
• Ability to download photos so buyers can e-mail the pictures to friends and family.

Dallas Real Estate and Title Insurance Policies

What is Title Insurance and why do I need it when buying Dallas real estate? To understand title insurance, let's look at what is known as "chain of title" and how title companies search public records. Title searches begin with when the US government claimed the land using a U. S. patent and moving forward from that point. Because people are involved in recording deed transfers and plotting land parcels, a lot of mistakes can happen. You want title insurance because it will protect you against these defects and "people errors".

Public Records and Property Searches

• County records are often maintained at local courthouses or the Clerk of Registrars.
• Property transfers were first recorded alphabetically in separate Grantee and Grantor books.
• Today, most records are stored in computer files.
• Dallas foreclosures will also be shown in the public records.

Land Division

• Early deeds involved large chunks of land known as Townships.
• Townships contain 36 sections and are six miles by six miles.
• Sections measure one mile by one mile and contain 640 acres.
• Half of a section is 320 acres.
• 1/4 of a section is 160 acres.
• 1/4 section of 1/4 section is 40 acres.
• An acre is 43,560 square feet

Basic Title Search

• Title searches start with the most recent deed, searching the grantee's name backwards in time, until the deed when the grantee acquired the property is located.
• That grantor's name is then searched backwards in time in the grantee's book to find when the grantor acquired title as a grantee.
• This process continues and the property description involves larger and larger parcels of land.
• Eventually, the searcher gets to the U. S. Patent.
• You can learn more about Title Searches by visiting popular Dallas real estate blogs.

Factors That Affect Title

As we discussed deeds establish a chain of title, but sometimes these chains get broken. Title searchers also look for reconveyances, easements, rights-of-way and other elements affecting title to the property. Here are more records that are searched to piece title together:

• Tax sales
• Death certificates
• Marriage records

Title Insurance Coverage

Depending on the title company, consumers can choose among a variety of options, but the top three choices are Owners, Lender's and Extended Coverage.

• Lender's Title Policy Coverage:

1. Unrecorded easements and access rights
2. Mechanic's liens and unrecorded liens
3. Defects and other unrecorded documents

• Owner's Title Policy Coverage:

1. Defective recordation
2. Clear title to the property
3. Incorrect signatures on documents
4. Forgery, fraud
5. Restrictive covenants
6. Encumbrances or judgments

• Owner's Coverage - Extended

1. Structure damage from mineral extractions
2. Building permit violations from previous owners
3. Subdivision maps
4. Covenant violations from previous owners
5. Variety of encroachments and forgeries after title insurance is issued

Who Pays For the Title Policy Insurance Policy?

• This can differ from county to county, but it is negotiable in the offer to purchase.
• Sellers and buyers split the fee for the owner's policy.
• Generally, the buyer pays for the lender's coverage.

How Long Are Title Insurance Policies Good For?

The simple answer is, forever. If you are planning to resell the property within a few years, ask your title company about what is known as "binder" coverage. Most title companies will sell you a binder policy for an additional 10% premium. Binder coverage is good for two years, often can be extended beyond that time, and the fee charged for the new buyer's policy will be the difference between what you bought the property for and the price at which it sold. You will get a credit for the amount of coverage you purchased under your own Owner's Title policy.

 

How Often Are Title Policy Insurance Premiums Paid?

This is a onetime premium due when you buy. You will never have to pay an additional premium on this policy. Title policy insurance is the best insurance policy a Dallas real estate owner can ever buy.

County Real Estate Markets - Hot, Cold, Neutral

When most people decide to sell or buy a home in the County, very few stop to look at the marketplace to see if the market is conducive to their home selling goals. This is probably because most people tend to think of their home as a place to live and not as an asset, an investment.

Neutral Real Estate Markets

These neutral markets are balanced. Generally, interest rates for Tarrant County Homes are low and affordable and the number of buyers and sellers in the marketplace are about equal. The scales don't move quickly in either direction, meaning the market is normal without experiencing volatile swings.

 

Signs of a Neutral Market

• Three to six months of inventory is on the market.
• Inventory is normal as compared to previous normal months.
• Comparable sale prices are close to active listing prices.
• Sales numbers are stabilized.
• Median sales prices are even.
• For Sale signs are replaced with pending or sold signs within 30 to 45 days.

Real Estate Markets - Buyers

If you are a looking to a purchase Collin County Homes or Denton County Homes in a buyer's market this is the best financial market in which to buy. This is because there are more homes available for sale than buyers to purchase all of the homes. Buyers have many more homes to choose from, which increases the odds a buyer will find their perfect home. In slow real estate markets, serious sellers are often ready and willing to negotiate. This means you can probably buy a home for less than the list price, and the seller might be willing to pay some or all of your closing costs.

Signs of a Buyer's Market

• Comparable sale prices are higher than active listing prices.
• Inventory is high as compared to previous months.
• More than six months of inventory is currently on the market.
• Fewer buyers are purchasing, resulting in lower closed sale numbers.
• Median sales prices are declining.
• For Sale signs are staying up longer, resulting in longer "Days on Market".

How to Determine the Months of Inventory

1. Find the total number of sold or closed transactions for last month.
2. Find the total number of active listings on the market last month.
3. Divide the number of total listings by the number of total sales, which results in the number of months of inventory remaining.

As an example, in a buyer's market, there were 3,563 listings available over a given 30 day period. During that time period, 2,134 sales closed. That leaves 7.5 months of inventory remaining on the market, making that marketplace a buyer's market.

 

Seller's Real Estate Markets

If you are a home owner who wants or has to sell a house in a seller's real estate market, this is the best financial market in which to sell. This is because there are more home buyers than available homes. In a strong real estate market often times serious buyers are often willing to pay more than list price. This means you should be able to sell your home quickly and possibly for more than you ask for it.

 

Signs of a Seller's Market

• Comparable sale prices are lower than active listing prices.
• Median sales prices are increasing.
• Inventory is very low as compared to previous months.
• Less than six months of inventory is on the market.
• More buyers are purchasing, resulting in higher closed sale numbers.
• For Sale signs are up for a few days before a pending or sold sign is attached.

Walking Away From a DFW Real Estate Closing

Buyers walking away from DFW home closing happens more often in buyers markets. This is because in buyer's markets, when prices are soft, some buyers get scared when they should be excited. Many of them are afraid of further declining home values in the market. Generally, the fear begins to creep in right after the purchase offer is accepted and then it begins to build. By the time full blown panic sets in, it's usually a day or two before closing.

 

Home Sellers Who Walk Away From Closing

It's rare that a DFW real estate or Plano real estate seller walks away from closing. In most cases if sellers are going to get sellers remorse it will typically happen upon offer presentation, when the reality of actually selling sets in. Although, I know of a seller who bought another home and shortly thereafter changed her mind. He had moved out of his existing home and into his new home before his first home closed. Within a couple of days of settling into his new place, he decided to terminate the sale of his first home and move back home. Of course, by then she ended up owning two homes.

 

 

Home Buyers Who Walk Away From Closing

Well written purchase offers typically contain one or more contract contingencies that must be removed within a certain period of time. The time to walk away from closing or cancel a contract for most home buyers is in this contingency period. Buyers who walk away at the last minute often do so for one or more of the below reasons. When a buyer walks away some of these sellers will utilize the services of a We Buy Houses company to get their house sold.

 

 

· Mortgage Financing.
Even though mortgage lenders may have issued a pre-approval letter, it doesn't mean the lender will actually give the buyers a mortgage. After the loan contingencies are removed, buyers may face underwriter stipulations that they cannot perform or overcome. An experienced loan officer can foresee many conditions for loan approval and fix them in advance, but alas, some loan officers are inept.

· They Get Cold feet.
Sometimes, buyers who feel remorseful toward the end of the transaction probably should not buy the home because the pressures of homeownership may be to great for them to handle. These types of buyers might be better off renting a home.

· They Found another home.
The grass seems to always be greener on the other side. Once a buyer has committed to buying a home, he or she may keep looking at other homes and before you know it, another home turns into that dream home. Which means goodbye to the first dream home and hello to the second one.

· Change in Their Lifestyle.
Unexpected job transfers, a sudden pay cut, divorce. Any of these circumstances can cause buyers to change their minds about closing the purchase. Sometimes medical emergencies can also cause buyers to cancel the transaction.

· Natural Disasters.
Mother Nature is unpredictable. The house itself could be destroyed in a tornado, hurricane, earthquake or flood; any number of natural disasters can cause havoc, rendering a home inhabitable. Even a hard rain storm could cause trees to uproot themselves and crash into a home. Most buyers under these types of circumstances simply would walk away. But they will also walk away if their repair request are not completed or something else goes wrong with the house, which they might uncover during their final walk through inspection.

 

 

After Walking Away From Closing - Repercussions

Unfortunately, once buyers have are past their contingencies in the contract, their earnest money is at risk. Many contracts call for liquidated damages in the event of a default. Without a liquidated damages clause, a seller may be free to sue for actual damages, which could exceed the deposit. Earnest money deposits are negotiable. It is not that unusual for a seller to accept $2,500 as a deposit on a $450,000 home, however, the higher the deposit, the more money the buyer has at risk under a liquidated damages clause. Buyers who don't care about closing and want to walk away will often forfeit their earnest money deposit. If it's only a $2,500, in the overall scheme of things, that amount may not be substantial enough to a buyer to force the buyer to follow through and close. If both parties have previously agreed to liquidated damages, the money the seller receives for the buyer's default could be limited to the actual deposit on hand. For more advice, please consult a competent real estate attorney.

Will a Virtual Tour Sell DFW Real Estate?

A virtual tour itself will not sell DFW real estate but then why would you want to include a virtual tour in your real estate marketing efforts? According to Dallas Realtors prospective home buyers are looking online for both photos and virtual tours.

 

How Does a Virtual Tour Work?

Without actually visiting the home virtual tours take you inside the home and give you a 360-degree view. Some of them are interactive, meaning you click the mouse and it takes you to the ceiling, the floor, the walls, leaving no inch of the room unviewed. Others virtual tours are flat-screen views put together to give you a moving image that you watch but do not control. Whether you are selling Plano real estate of any DFW real estate the virtual tours will work and cost about the same.

You can order virtual tours a number of ways:

• Hire professionals to take the photos, upload and create the virtual tour.
• Take your own photographs and hire a professional to simply upload and assemble them for you.
• Buy your own software and do it yourself.

What Does a Virtual Tour Cost?

• Larger numbers of spins are usually reserved for the homes listed at more than a million dollars. Buyers want to see the entire property including the guest house, the libraries, the wine cellars, the indoor pool & spa facilities, media rooms, gyms, studios and garages. Cost: Fees vary from $250 on the lower end and up to $3,000 for professional Web sites dedicated to the property.
• Every virtual tour should consist of a minimum of two spins. Even a small 1000-square foot home can be shot on a two-spin tour: the living room and the clubhouse / pool area, for example. Cost: Less than $150.
• These are suitable for larger homes of approximately 2,500 sq. ft. or more and priced at less than a million. The number of rooms or areas that you select to feature will depend on the layout, number of stories and curb appeal. Cost: $250 or less. Interactive virtual tours will cost a little more.

Staging for the Virtual Tour

• Consider the level of the camera. If you raised the camera a foot or so, would it eliminate glare from windows?
• Determine the viewpoints. Take your own digital photo and upload them to your computer and study each room for its appeal and photogenic qualities. Print out the photos you like and show the virtual tour professional the angles that you want.
• Begin the tour focused on the most interesting element in the space and end with that same element. Think about what the viewer will see first to determine your starting point for the tour. You don't want to begin filming a doorway, for example, because most doorways are boring.
• You want the space clean, open, clutter free and to appear much larger than it is. Move excess furniture out of the room you are shooting
• Choose the best spot in the room to stage the camera. While you might capture a wider range of view from a location closer to a hall or door, think about the entire circle of view and how interested your viewer will be staring at a close up of a nearby wall.

Added Features Available for Virtual Tours

• Use Descriptive Text: Most virtual tours provide plenty of space for the marketing description.
• Scrolling Text: Describe that moving video with text that rolls across the screen. Don't rely on the viewer to know enough to scroll down the page to your verbiage. Add a line of verbiage directly to the video.
• Add Audio: Some virtual tours give you the option of adding your voice to the tour. Be enthusiastic, speak clearly, and remember to smile, like you were talking to a friend, because a smile resonates in the voice.

Multiple Offers – The Best Strategies

In many of the stronger real estate markets in the country we are seeing an influx of multiple offer transactions. This is how it usually goes. You have been house hunting for weeks and you notice one home has been for sale for five months without any offers. You figure that the home must be overpriced but you go look at it anyway. You fall in love with the home. It's the perfect home for you, and you figure you can get a great price because the seller is must be desperate for an offer by now. You write an offer on it and then your Realtor delivers the offer to the seller's agent. That night all you do is dream about the home thinking about how you will arrange your furniture and which colors you will paint the rooms. The very next morning your agent calls to say the house has been sold to somebody else.

 

How is this possible? You're surprised, angry and depressed. You wonder if the seller had a buyer in his back pocket all along. Did you get deceived? You were not. What generally happens, and no one can seem to explain why, is the minute you want to buy a home, so do three other people. It's common for the seller of an overpriced, dated and neglected listing to suddenly receive two, three offers, all on the same day.

A great tip from Collin County Realtors and Denton County Realtors: When you the right home to buy, write your offer immediately. Ask your agent to call the seller's agent to find out if whether or not anybody else might be writing an offer.

 

 

Handling Multiple Offers in Seller's Markets

Many times home buyers wonder if it's worth trying to compete against other buyers when sellers market conditions exist. When there is very little inventory on the market, it's not unusual for a seller to receive a half dozen offers. It's always a good idea to write an offer anyway. Here are tips from Tarrant County Realtors to make your purchase offer outshine the rest:

• Write Your Very Best Offer.

Don't put yourself in a negotiation situation from the start. Offer your highest price and make it attractive, maybe a bit above list price. Ask your Realtor for a CMA on the home to determine its value. Sometimes sellers deliberately set a price below comparable sales in an effort to generate multiple offers, so paying a little extra doesn't necessarily mean you are paying over the home's value.

• Attach a Large Earnest Money Deposit.

Pending home sales can fall apart. Many sellers are worried that once they commit to an offer, the buyers may back out of the transaction after all the other buyers have disappeared. The earnest money deposit is part of your down payment. By increasing the deposit above the norm, you are showing the seller you are serious about closing this transacting. You're only offering the seller a little more money a little sooner but it speaks volumes.

• Prove to the Sellers You Are Qualified.

Almost every offer in a multiple offer situation will be accompanied by a lender letter. To stand out, ask your lender for a mortgage pre-approval letter, which is different than a prequalified letter. Being preapproved makes you a stronger buyer.

• Give the Sellers Enough Time to Move.

Possession is often a point of contention. It's hard juggle dual closings if you are selling and buying a home at the same time, and even more difficult if the sellers are doing the same. Give the sellers some slack by giving them two to three days to move out after closing, without expecting any compensation.

• Shorten or Waive Some Contingencies.

Always get a home inspection, but tighten up on the time period. If your loan is solid, waive the loan approval contingency. Talk to your agent about comparable sales to decide if you want to waive the appraisal contingency.

 

Multiple Offers in Buyer's Markets

In a buyer's market, the winning offer in a multiple offer situation is many times less than listing price. The number of multiple offers are generally considerably fewer, meaning you might be competing against one or two buyers not 10-15. Below are suggestions for competing:

• Find Out What Things Are Important to the Seller.

These could be seller requests or listing agent expectations. Ask what will seal the deal and then give it to them. Maybe it's a fast closing. Maybe it's a longer than usual escrow period.

• Sell Your Existing Home First.

If you have a home to sell, don't buy your next home without selling your existing room first. If you're a first time buyer, you may already have the advantage over a buyer who needs to sell before buying. If one offer contains a home sale contingency, the seller will be attracted to the offer without a contingency to sell.

• Be Nice.

Don't ask the seller to give you personal their items. Don't expect the seller to pay all your closing cost. Find out which charges are usually paid for by the seller and offer to pay a few such as escrow fees, title insurance policies, transfer fees, etc. Most sellers have an emotional attachment to their home and want to see it fall into the hands of an acceptable buyer. Be that acceptable buyer. Write the seller a brief letter explaining why you love the home and why you deserve to be chosen as the winning offer. .

• Prepare for a Counter Offer.

You can write your highest and best offer, and a competent listing agent is likely to still advise the seller to counter all the multiple offers, even in a buyer's market. The seller retains the right to choose or reject accepted multiple counter offers.