Don’t End Up Temporally Homeless

Unfortunately, real estate transactions fall apart every day for a variety of reasons. Many times deal killer scenarios could have been avoided if the real estate agent had just educated their buyer clients as to the process before the first purchase contract was ever written. Don't be afraid of giving your buyer clients an early education on challenges that might be encountered, how they generally get resolved and your role in that process. Negative surprises in the emotionally charged, time sensitive home purchase process can be avoided in many cases by going through a checklist of instructions to buyers.

1. Don't End Up Temporarily Homeless

There are so many inter-dependent activities involved in a Collin County real estate closing, so it's not that unusual for there to be last minute delays that move a closing a few days back. Often this is due to mortgage documents, as the lender wants to see the appraisal, survey, title and other documents first. If any of these are things are delayed, then the closing may be later than expected. Though it can't always be avoided, make sure that your client doesn't arrive at closing with all their furniture with no place to live or the money to pay the movers for van storage because they can't move in for three or four days.

 

2. A Really Low First Offer Can Backfire

In the Denton County real estate market and Tarrant County real estate market with a rising inventory many times encourages buyers to make low ball offers just to test the sellers motivation. In some markets it's not very unusual and sellers come back with a high counter offer to draw the buyer higher to an acceptable price. Your buyers could pay up if they are not careful about this aggressive offer approach. With first-time sellers who've cared for and loved their home for many years, a very low offer can offend them.

 

3. If You Beat the Sellers up on Price, Don't Expect Concessions

Everybody wants a great deal and working a motivated seller into a low ball price is the goal of many buyers. Make sure to talk to your buyers about how this will influence the process in almost every aspect through to closing. Tell them that getting a seller to their rock bottom price will usually insure that they will not agree to any concessions for repairs to correct inspection problems. As long as you have educated your buyers to this, you will hopefully avoid the transaction falling apart because of sellers' remorse or inspection correction negotiations.

 

4. Do a Comparative Market Analysis for You to Prove Your Offer

When the question of "What price should I offer for this home?" comes, tossing out with a number is not the best approach. You should advise your buyers' through a comprehensive market analysis of similar recently sold properties in that area. This should give a range and your buyer can then choose an offering price based on accurate market statistics. If there are other factors that you can give to your client about seller motivation or recent market changes, definitely do that and help them to feel comfortable with the price they choose to offer.

 

4. I'm Not an Expert but I Will Help You to Locate One

Too many real estate agents get into a jam by trying to be helpful to their clients in areas that they shouldn't be. If you're not a home inspector, lawyer, appraiser or an contractor. Don't try to take on their jobs and responsibilities erroneously believing that you're providing service to your clients. Saying "I don't know" is a valid response, especially when it is followed with "but I'll help you to find out." You can actually enhance your value to your buyer by being up front and honest about your knowledge and helping them to locate the appropriate competent professional to answer their questions.

 

5. Don't Buy That New Furniture Before Closing

These days, with many of today's buyers purchasing homes at the top end of what they can afford, there isn't any room left in their debt ratio score. Deals have been lost days before closing because the lender did a final credit check and found a few thousand dollars of new furniture had just been purchased on a credit card. Advise your buyers to make no significant credit changes or purchases in this critical pre-closing phase.

Get Set, Get Ready - Go in Dallas Real Estate!

Summary: Thanks to technology, we can do things bigger, faster, and more efficiently in 2013

Is your real estate bag packed, is your laptop working right, are all your documents updated and ready to go? Are you prepared for business in 2013? Utilize the slow time to get focused and prepared for the Dallas real Estate market.

 

First, set your goals for the year and quantify them. Whatever your goal is, set reminders and due dates in your calendar. Are your goals realistic? An example would be, "I am going to sell 36 homes in the Collin County real estate or Denton County real estate market in 2013".

 

Secondly, post your goals in plain sight and track your progress. Is it on your bathroom mirror? Do you have a white board or vision board? Make daily, weekly, and monthly goals that will help you achieve your ultimate goal. Example would be, "I am going to talk to 11 prospects a day" or "I am going to call 10 of my past clients and ask for referrals".

 

Lastly make yourself accountable. Have you shared your goals with friends and family? Ask one of them to be your accountability partner. This will help you stay focused and motivated. If you don't hit a goal, don't worry just re-evaluate what you are doing and modify your daily/weekly goal.

 

Thanks to technology, we can do things bigger, faster, and more efficiently in 2013. At the same time, our clients have come to expect they can buy or sell a home as quickly as they can do a search in Google. A quick search for Tarrant County real estate will bring up a host of information in just seconds. By being ready and prepared for the unexpected, you will amaze yourself at how easy it is to do more business in 2013.

 

Here are a few simple rules I follow every day to stay focused, so I can achieve my goals.

 

1. Set a timer and stick to it

2. Schedule and put events in your calendar with reminders

3. Prioritize what is important daily

4. Tackle your most important task first

5. Setup a routine for reoccurring events

~ Jennifer Clark VIP Realty Platinum

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.

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.

 

Increasing Buyer and Agent Calls

Denton County Real Estate

The real estate market; In a buyer’s market it is twice as important to increase buyer and agent traffic over other types of market conditions. If you aren't getting enough showings because your curb appeal is in the gutter, so to speak, it might not be the list price that is the problem. It might be because there is an abundance of inventory on the market and buyers have plenty of homes with great curb appeal to choose from.

Here are Some Great Ways to Increase Your Traffic

1) Offer a Competitive Commission to Buyers Agents

Review your listing agreement to determine how your agent is splitting the commission you are paying.  At least 50% should be going to the buyer's agent. It's your money so you can direct how much of that fee goes to the buyer's agent and how much goes to the listing agent. Maybe consider increasing the commission to pay the buyer's agent more than what other buyer's agents are receiving in your area.  Example, in the Denton County real estate market  last year a hard to sell property that was on the market for 90 days, in an area where the traditional listing fees were 6%, with 2.5% going to the selling agent, the commission was raised to 7% and the buyer's agent was offered 4%. It sold within a few days after the increase.

2) Make Your Home Easy to Show

In the Collin County real estate market, at a bare minimum, your MLS listing should read "call showing service, lockbox”. The first call is to let you know that a buyer’s agent is coming to show your property. If you request "by appointment only" or ask that agents only tour your property during certain hours or if you require that your own agent be present to show because your agent cannot possibly be available 24 hours a day agents will likely show another listing that isn't so restrictive and scratch yours off the list.  If you don’t let potential buyers into the house how will they ever make an offer on it?

3) Use an Electronic Lockbox

Using electronic lockboxes in the Tarrant County real estate market allow agents to show your property if you are not home. If you do not answer your phone, the agent should leave a message and go directly to show your property. If you live in a gated community you will have to provide access information for the buyer’s agent.

4) Increase Traffic Through Massive Market Exposure

·         Think about your target home buying audience. Send direct mail postcards to all surrounding homes and to areas that attract buyers to your neighborhood.

·         Advertise in local weekly newspapers.

·         Advertise in different sections of your areas daily newspaper on the weekends. It's not enough to just to advertise under the areas classification section.

·         Advertise online on BackPage, Craig’s List, Google Homes and Truila and other free online subscriptions.

·         Consider advertising in home magazines.

·         Make a home video and upload it to popular video sites.

5) Offer Lunch for Broker's Tours

In many markets it is common for listing agents to pick up the cost of a catered lunch. Instead of zipping through a home on tour, agents will generally linger in the home, noticing details a fast tour would miss. Offer a drawing for a free gift certificate or game tickets.

6) Host an Open House

Organize other home sellers in your neighborhood to join forces on advertising a neighborhood open house event. Publicize the event everywhere you can think of.

·         Buy brightly colored helium balloons and streamers.

·         Hire somebody to stand on a busy street corner with an open house sign arrow and spin it, waive it toward your home. It may cost you $15 an hour, but it gets attention.

·         Serve burgers, hot dogs and soft drinks.

·         Hire a face painter or clown to entertain children.

7) Send Out Fliers and E-Flyers

It's relatively easy and inexpensive to create flyers and e-flyers.  E-mail this flyer to every person in your e-mail address book. Ask your agent to send e-flyers to every agent who works in your area.  Also, print some fliers for neighbors and local real estate offices.

8) Make a Short Time Offer

Advertise a short, limited time offer that buyers can get if they act quickly enough. Everybody wants a good deal, and buyers are more motivated if that offer is going to soon vanish. For example you can offer to:

·         Prepay the property taxes or insurance for a year.

·         Pay down the buyer's mortgage interest rate for a couple of years.

·         Credit a percentage of the sales price toward the buyers closing cost.

Your imagination, focus and hard work will all help you to get your property sold!

Why Sellers Make Full Price Counter Offers

In a seller’s market many times a seller of Denton County Real Estate will write their counter offer at the full list price. That's because the seller knows if one buyer won't come up to their asking price another one probably will agree to pay full price. But many times a seller may also issue a counter offer at full price in a buyer’s market even though surrounding homes may sell at less than asking price, some of these homes are worth full price if the home is priced properly in the first place based upon comparable sales.



Why Sellers Counter Offer at Full Price

• Sellers Can Be Irrational, Hardhead and/or Greedy
Many Tarrant County Real Estate sellers think their home is worth much more than it is actually worth. As further evidence, try counting the number of listings in MLS system that sell at their original listed price. You'll find a high percentage of homes that will have had at least one price reduction.
• Sometimes Buyers Will Actually Accept a Full Price Counter Offer
Plano real estate listing Agents know that a buyer who puts down a good size earnest money deposit and takes the time to write an offer probably wants to buy the house. Buyers have a way of letting their emotions take over and fall in love with the home. The buyers may initially offer less so the buyer can later say to themselves that they tried to get the home for less.
• Sellers Generally Expect Buyers to Counter Their Counter Offers
Most sellers know that it is considered risky to issue a full price counter offer to the buyer. They know they are taking the chance the buyer may walk away from the home. But like buyers who will offer less than they expect to pay, sellers will also try to get more than the price they are actually willing to accept.
• Sometimes Sellers Have a Change Their Minds
Buyer’s remorse doesn't always set in upon signing a listing agreement to out their home on the market. It’s not until an offer is received, do some sellers start to consider the fact that they are actually moving. When the purchase offer is presented it is often when reality sets in for the sellers. They may feel reluctant to let their home go any price, much less at the offer price, so many times they issue a counter offer in hopes the buyer will walk away. Rather than tell friends they had cold feet, sellers can say, “the buyer wouldn't pay our price."
• The Home Wasn't On the Market Long Enough
It's not unreasonable for sellers to reject purchase offer by writing a counter offer for full price when the home has been listed for less than 30 days. Generally, the first offer received is typically the best offer they will receive, but sometimes sellers feel if they hold out for a few more weeks, somebody else will offer full price. In reality this is rarely the case.
• Was The Home Priced Right
If the home is priced right at the beginning of the listing it will sell. Sellers won't have to later ask “why isn’t my home selling” because they will get a lot of buyer showings. When the interest level is high, generally the home is priced according to market comparables. If it's the lowest-price home among the competition in the neighborhood, sometimes buyers will fight over it.
• Bad Listing Advice
Some listing agents act as though the home is theirs and not their sellers. These agents may feel it's a personal insult to them if a buyer offers less, so they will encourage the seller to make a full-price counter offer which may not be in the best interest of their clients. The agent might also have a buyer on the side, waiting for the seller to reduce their sales price. This type of offer would give the agent both sides of the commission. So, the agent may do whatever it takes to make the first buyer disappear. It's not ethical, and it's not legal, but it sometimes happens in the real world.


Buyers' Response to Full-Price Counter Offers

Consider all of the above reasons first and try to figure out which kind of circumstance applies to your situation. But always make a counter offer. You have nothing to lose and everything to gain. Continue negotiating until one side gives up. Even if the seller does not respond to your counter offer, you are always free to write another offer or resubmit your counter offer. In one circumstance the buyers made a lowball offer then the sellers wrote a full price counter offer. The buyers could not afford to pay full price for the home and felt the seller did not want to really sell. However, their buyer's agent suspected the seller really wanted to sell the home. The result, the buyers came up in price by a few thousand on the second counter offer. The sellers accepted the offer, still below list, the transaction closed and everyone got what they wanted.

DFW Real Estate – Counter Offers

What Does Counter Offer mean?
Counter offers on Collin County real estate come into play by a home seller after a buyer has submitted an offer to purchase their home. Generally, a counter offer will state that the seller is interested in the buyers offer subject to the following changes. Some examples:

•• Price (generally a higher price)

•• Increasing the amount of the earnest money deposit

•• Changing service providers

•• Refusals to pay for certain fees

•• Altering closing or possession date

•• Excluding personal property from the contract

•• Modifying contingency time frames

How many Counters Should You Expect?
Just the same as a seller submitting a counter Tarrant County real estate offer to a buyer, a buyer can counter the seller's counter, which will then become counter offer #2. There is no limit to the number of counter offers that can be submitted back and forth. The offer and all subsequent counter offers are handled through you're your DFW Realtors office.

How are Counter Offers Rejected and Should you Reject it?
The seller is not required to respond to any offer. That may come to a surprise to you? Here are some of the most common ways to reject an offer:

•• Most Denton County real estate contracts provide at the bottom of the page for the seller to initial that the offer has been rejected.

•• Most offers specify a date of expiration, a "deadline clause" in the event the seller elects not to respond.

•• Sellers can also write "rejected" across the face of the contract, initial and date it.

Can There Be Multiple Counter Offers?
Depending on your specific state laws, sellers may or may not be able to issue multiple counter offers at one time. In many states sellers can counter more than one offer and each counter can be different. Even if one of the buyers accepts the seller's counter under these circumstances, the seller does not have to accept the buyer's acceptance. When Dallas foreclosures are involved many banks and mortgage companies will use this method in order to get then highest offer for one of their properties.

How are Counter Offers Accepted?
If the counter offer is issued by the seller, the buyer can simply accept the counter and deliver it back to the party designated to receive it. Time is always of the essence, meaning, counter offers contain expirations just like purchase offers, which means the seller can accept another offer while the buyer is deciding whether to sign the counter offer. When I've called Realtors to find out the availability of a home and whether any offers have been received, it's very common to hear, "We have a counter out." Some Realtors become discouraged at this news. But this is a great time to get your clients offer in. You may be pleasantly surprised when the offer is accepted by the sellers. What commonly happens in these situations is the seller accepts the second buyer's offer and then simply withdraws her counter offer from consideration, kicking out the first buyer.