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.