DFW Real Estate Investment for Starters

DFW Real Estate

One of the most common types of investments is through real estate. A properly planned investment in this category can multiply your earnings to millions, making your investment a success, but sometimes getting caught up in the hype of investing could lead to misfortune if no proper research is done. Real estate can be good for starters in the investment world, and here you can find some of the few important things people need to know before buying a property investment will be discussed.

Some of the Common Types of DFW real estate Investment

Before going further with a real estate investment, you must first understand that there are different types of property, and the ways you can earn profits vary from each other.

One of the most common types of investments in the DFW Metroplex is in Dallas foreclosures. These can commonly be acquired from realtors or from a by my house company. Properties in this category can be Houses, Apartments, Condominiums, and Townhouses. Profits from this type of investment can come from rentals from a person or group of people that pays you to earn the right to stay in your property.

Most businesses or shops are paying for their rent of space in a building. This building is considered commercial property, where the investment makes you earn money in the form of lease. A commercial property can usually be found near residential areas where high demand of goods and services is present.

Retail real estate Investment, are retail store fronts that can also include shopping malls and store strips. Mostly are shops that sell goods, whether food or clothing or any other type of service. In some cases, the property owner also receives commissions from tenant store sales to keep the building in top condition.

Why Choose Investing in Real Estate?

Real estate investing offers multiple ways of earning profits. The most common is to earn from rentals and leases from people or business. Your property also has an annual increase in value which you can benefit from; even owners of houses can enjoy the annual appraisal in their properties.

Real estate investment can also be a tax shelter for most investors. Properly structuring your businesses and properties, could mean you could carry on with a lesser tax rate even with a huge amount of investments that earn you money. When a property appreciates its value, it would still be sheltered from tax until you sell it.

Leverage is the greatest advantage in this type of investment. Leverage simply means using borrowed money to acquire an asset or to enhance the earning potential of the acquired property. This allows profit gains by borrowing a fixed amount of money while the value of your asset continues to appreciate.

Investing in real estate definitely has its advantages, but this type of investments also has risks, that’s why, one must be very careful when deciding to this type of investment. Make sure to conduct a research on the property you’re trying to buy, and know the basics in property investment, remember that a successful acquisition of the asset should earn you a good amount of money if not millions.

Simple Guidelines for Acquiring Your Dream House

DFW Real Estate

Owning a house can seem to be difficult; other than saving up, there can be sets of rules or things you need to know before you decide on the right one. Good news is, yes, there are rules, but those are not too many, and also those are not difficult ones. Following these simple guidelines will lead you to owning your most desired dream house with ease.

Think of your reasons for Buying a House

Making the biggest purchase of your life for the first time should come with a good reason. After all, you did not save your money and just spend it impulsively on a property because all you feel that you want it. Making the wrong purchase can lead to future problems and might not satisfy you if it doesn’t meet its purpose.

Take Time to Learn

When you buy a house, there are few important things you need to know, like mortgage fees, property taxes, loans, and mark-up prices. There are organizations, a Buy my house company as an example, which conduct seminars for first time home buyers that will surely help you decide in acquiring a new property. These seminars are structured in such a way that participants don’t get overwhelmed with information, but instead gain more know-how when buying a new house. There are even seminars about buying Dallas foreclosures.

Stick to the Budget

You may decide to go all out when buying DFW real estate, which is perfectly fine as long as you stick to your budget plan. Communicate with your real-estate agent, and he will surely help you acquire the perfect dream house that stays within your budget. If you’re using your salary to pay for monthly mortgage, remember that there are other expenses that your salary has to cover, like basic necessities or debts.

Make an offer

When all conditions are met, and you are ready to make a purchase, then make an offer. Try to base your offer on the current condition of the house, its location, or even its age. A good offer is always one that makes all the conditions easy for you, but is acceptable to the real-estate company. In this matter, well conducted research before choosing the right house can help you make a good offer that the seller will approve.

Discovering problems after the purchase of a newly bought house can be really frustrating. That’s why before deciding to buy a house, hiring a home inspector can be a good strategy. It can take a while, but hiring an inspector ensures you that the house you are buying is under good shape, and you get your money’s worth. It may not be the seller’s responsibility to fix damaged parts, but not getting locked-up with a bad purchase is surely priceless.

Investing for Your Future – DFW Real Estate

Over the past few decades, investing in DFW real estate and Dallas foreclosures has gained popularity and became a common investment vehicle for most people. Although the market has lots of opportunities to generate huge gains, acquiring and purchasing real estate is more complicated compared to investing in the stock market. Investing in real estate involves ownership, management, rental, or sale of property to gain profit.

When making your investment decision, you should take into consideration these characteristics:

 

• Transaction cost – this is significant in real estate market compared to other investments. Realtors would agree that it is ideal to buy larger assets because you can divide the transaction costs to a larger base. It is costly to operate DFW real estate because it requires regular maintenance.
• Weather you buy property through the MLS or a We Buy Houses company, most real estate requires ongoing management. You should acquire someone who will be responsible in dealing with the day-to-day operation. You may also need a strategic management that will focus on your property’s long term market position. Management services are also costly and require resources and time.
• Investing in rental houses property demands amount of time and work so you could maintain this investment. It comes along with many responsibilities you have as the landlord of the house.

Like any other investment, may it be real estate like homes, there is so much potential an individual can see. However, this doesn’t mean you will have a sure gain, so it’s better to make intelligent choices and weigh the pros and cons before actually having your first investment. If you are searching for a property, you will need the help of a professional DFW real estate agent to browse listings on the neighborhood. They may also have information not included in the listings that will benefit you.

 

Why Invest in DFW Real Estate

 

This kind of investment can overwhelm most people. There are various areas to consider as well; finding a good property and acquiring trustworthy renters seem challenging. However, one’s small efforts can gain big rewards as there are countless benefits of having an investment property.

 

1. You can fully decide whether to have commercial or residential, offices, or small establishments to invest with. There are many options possible for you. It is better to decide on the property you are familiar with.
2. The value of your property grows together with the increasing community. Prices of real estate are steadily increasing over the years.
3. Real estate is a good option for long term investments. Most of us like the idea of acquiring an investment that will fund us in our retirement. Thus, this kind if investment increases in value compared to savings in banks.
4. This investment also offers positive monthly cash flow. It will increase in time and will give you source of secure retirement income.
5. Deductions can be claimed upon filing your tax return. This may include loan interests, maintenance and repair costs, agent’s fees, insurance, and building depreciation. This will help a person save more money.

There are plenty of benefits a person can have upon investing in real estate. You might be hesitant to invest at first but with proper knowledge and research, you may want to pull the trigger and start investing.

Determine How Much Mortgage You Can Afford – Tips

By knowing how much mortgage you can afford, you can ensure that home ownership will fit in your budget and meet your long term goals.

1. Factor in Your Down Payment

How much cash do you have for a down payment on DFW real estate? The higher the down payment you can come up with the lower your monthly payments will be. If you put down at least 20% of the home's cost, you may not be required to get private mortgage insurance which costs hundreds each month. This leaves more money for you to put towards your mortgage payment. The lower your down payment, the higher the interest rate, loan amount you will need to qualify for and the higher your monthly mortgage payment will be.

 

2. Consider Your Total Debt

When it comes to buying Plano real estate most mortgage lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn't total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like auto loans and credit cards, shouldn't exceed 41% of your gross annual income. Here's how that works. If your gross annual income is $50,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $1,167 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don't go above 41%, or $1,708 in our example.

 

3. Use Your Rent Amount as a Guide

The tax benefits of homeownership usually help you to afford a mortgage payment of about one third more than your current rent payment. You can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment. Here's an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership. If you're struggling to keep up with your rent however, consider what amount would be comfortable and use that for the calculation instead. Also consider whether or not you will itemize your tax deductions. If you take the standard tax deduction, you cannot deduct mortgage interest payments. Find a Dallas real estate blog that has tools on them to help you calculate these numbers.

 

4. The general rule of mortgage affordability

A good rule of thumb; you can typically afford a home priced about two to three times your gross income. If you earn $50,000, you can typically afford a home between $150,000 and $200,000. To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs. This takes a little bit of brain power and effort but it is paramount before you go start looking for that perfect home.

Getting Your House Ready To Put On The Market

Today's buyers are very savvy and want to see homes in near perfect condition. Thanks to many shows on HGTV, buyers have come to recognize and appreciate homes that are move-in ready. With inventory on the low side, sellers think they can put their home on the market without doing anything to it. Although, if priced right their home will sell, but if it's properly staged it could sell for more than what it was listed for.

In the DFW real estate market we are seeing multiple offers and bidding wars on good homes that are well maintained. If that is any indication to potential sellers, it's worth the extra time to really get your house ready prior to putting your house on the market.

Here are the first 5 things you should do first before putting your Collin County home or Denton County home on the market.

 

 

1.Clean and de-clutter the house. Start 3 piles. 1. Keep, 2. Donate 3. Throw away. The garage is the best place to start. Have a garage sale.

2.Are there things that are seasonal or things that you are not going to use? Pack them up and start staging the garage with all your boxes. The potential buyer knows a garage is a garage without needing to see the open space unlike a cluttered living room that you are hiding the fireplace with your big furniture and clutter.

3.Complete unfinished projects. Did you finish painting the room you started 2 years ago? Are all the cracked tiles replaced that you had planned on replacing? How are your carpets? A good steam cleaning will make a huge difference. Hire a handy man if you aren't good with home improvement projects.

4.Take down or put away all your valuables and things you plan on keeping. If a buyer sees it, they will want it. Swap out those more expensive appliances with something else if you don't want there to be any confusion about what is staying or going.

5.Focus on the outside curb appeal. Are the weeds pulled, are the trees trimmed, is your garden planted, and is your walkway clear from debris? Also, clean all your exterior windows. That makes a huge difference especially right before getting photos of your house to start marketing it.

 

 

Once you have completed those 5 steps, then you can have a professional stager and real estate agent help you with getting your home on the market. Don't get too eager to put your home on the market when it's not ready. Homes sell fast when they are polished and shiny. Get top dollar for your home and create demand among buyers.

Are We Living in a Renters Nation?

In a recent survey reveals optimism about homeownership rebounding as the housing market recovers. This includes young adults who were often pegged as home renters during the great recession. In the meantime, rising prices may encourage some homeowners to sell in 2013. The survey shows that today's consumers are more optimistic about the housing market and more ready to buy a home. The housing bubble burst has shaped the near term expectations about the market in general. Also, nearly all young renters want to buy a home in the long run. These consumers expect inventory to grow, and it looks like it may happen starting this year as long as prices stay on the rise. As price gains begin pushing more homeowners into a positive equity position, more will be ready to sell.

As 2012 came to a close, the DFW real estate market was looking up on all fronts. It was the very first year since 2006 in which home prices have increased. Both new construction and sales were both up significantly from their lowest point during the housing crisis. Vacancies, delinquencies, and foreclosures have come down. Job growth has strengthened, and unemployment has fallen. These trends give home buyers more buying power and confidence in the economy as a whole. At the same time both DFW short sales and Dallas foreclosures have declined.

 

Consumers are becoming increasingly bullish on buying homes. More than 27% of them are more positive about homeownership than they were six months ago. This translates into more renters being eager and willing to buy a home within the next two years:

The housing crisis looms especially for younger adults who are between the ages of 18 & 34 who have only been thinking seriously about home ownership in the recent years of boom and bust. They have no memory of the decades when home prices rose modestly but steadily, or when mortgage rates were 7%. These younger adults had a challenging time in the great recession. Their unemployment rate was very high and many of them put off their decision to buy or rent their own home. Instead doubled up with roommates or lived with parents.

 

Consumers, regardless of age, expect that both rents and housing prices will rise in 2013; they also expect more home inventory, both homes for rent and for sale along with higher mortgage rates. Younger adults have a harder time imagining price increases and higher mortgage rates than older adults who have lived through more years of rising prices and high rates. Many have higher hopes than older adults that homeownership will remain relatively affordable. Today's young renters may be overestimating what they'll be able to afford to buy when their time comes.

 

Rising Home Prices Will Encourage Sales in 2013. Nearly one third of renters want to buy in the next two years but will they find many homes for sale? The survey shows that rising prices in 2013 could trigger more sales-and therefore bring more inventory onto the market. Among current homeowners, 22% said they are somewhat likely, fairly likely, or extremely likely to sell their home in the next year. Who's going to sell in 2013? Based on the survey and local market conditions, the homeowners more likely to sell next year are those who:

• Can sell at a profit. Based on when respondents told us they bought their current home, and the sales-price trend in their metro area (according to FHFA), we estimated whether each respondent's home is worth more or less today than when they bought it. Among those whose homes are worth more today than at purchase, 28% say they're at least somewhat likely to sell in the next year, compared with 21% of those whose homes are worth less today than at purchase (among those who bought a home in the last ten years). The chance to make a profit will encourage some homeowners to sell.

• Expect prices to rise. Among people who expect home prices to rise in the next year. Homeowners who expect prices to rise are more likely to take advantage of those gains by selling.

• Bought very recently. People who bought a home in 2010, 2011, or 2012 are the most likely to sell next year. Therefore, 2013 might see a lot of new homeowners flipping their recent purchases.

If prices rise as expected in 2013, more home owners will be willing to sell. But prices and market trends aren't the only factors that determine who will sell. Many times personal reasons go into the decision whether to stay or move. Family is the top reason why homeowners might sell next year. But economics will still matter. A stronger economy could give more people reason to sell since they might find a new job worth moving for. During the recession, Americans became less mobile than in past times, but as the economy recovers, more might move for job opportunities.

 

Many consumers are more optimistic about the housing market going forward. More renters plan to buy, and more homeowners will sell. The housing crisis still hangs over the market in many regions of the country where consumers are more doubtful than others that home prices or mortgage rates will rise. But if consumers actually do what they say they will do in the next year, 2013 will be another year of housing market recovery.

Your Real Estate Business – Set Your Own Hours

Summary: This is your business. You set your own hours. Always answer your phone when possible.

Dallas Real Estate is a 24/7 job, however you don't need to run yourself ragged. This is your business! You define what hours you are going to work and set your schedule accordingly. Also, who are you targeting as your client base? Are you going to target Dallas foreclosures or high end DFW real estate, for instance? If you like working non-traditional hours then target those professions where clients will have odd hours like the food & beverage industry, airline industry, casino workers, hospital workers, firefighters, police officers, military, etc. If you like working a traditional schedule, then determine that and perhaps make alternate accommodations for clients that fall out of those traditional hours. Just because you can market to all, does not mean you should. The old saying is true, "If you aim for everyone then usually you will hit no one". If your target market is Collin County homes will you try to work a lead in Fort Worth?

 

 

The biggest complaints from clients are, "my real estate agent never answers my phone calls". Is your voicemail greeting set? Some agents update their greeting daily to reflect their schedule. Example, "Thanks for calling, it's Jan 1^st and I am out of the office today, however your call is important to me and I will return all calls tomorrow, Jan 2^nd at 10am". Don't be a secret agent, tell people you sell real estate and tell them your hours of operation.

 

 

Do your clients know that you can receive text and emails on your phone? Are you setting their expectations? Not all clients will email and text. There are still handfuls of clients that want an actual phone call. When you first meet with a client, the number one question should be is how they want to be contacted and how often.

 

 

If you always answer your phone when possible and make appointments for the times you want to work, you can actually appear to work 24 hours a day and 7 days a week when in reality you don't.

~ Jennifer Clark VIP Realty Platinum~

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.

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.

Before You Sell Your DFW Home

When it comes time to sell your DFW home you may decide to sell it for sale by owner (FSBO), but you may find great benefit in listing it with one of the many professional DFW Realtors.  if you decided to use a Realtor, pay attention as you research the market place for the one that is the best fit for you.

Research Real Estate Agents and Firms

DFW Real Estate

Which brokerage firms rank at the top of major search engines for common search terms in your area? Like DFW Real Estate for example?

Which firm’s websites are the most appealing?

Which firms consistently feature virtual tours on their Listings?

Does the firm provide multiple photos of homes and in good quality?

Which firms advertise in multiple internet venues?  Which firms have a Dallas Real Estate Blog?

Ask your co-workers and friends for Realtor referrals. Maybe they have worked with an agent who did a great job?

Whether you are selling Dallas real estate or Plano real estate, once you have compiled a list of Realtors, set an appointment with each of them to learn more about their experience and services. Find out if these Realtors are willing to do a free comparative market analysis (CMA), a process that compares your home to similar homes that have recently sold. Realtors use this tool to help sellers set their listing prices.

Interviewing Realtors

Ask each Realtor that you interview to explain how they will market your house, including print, internet and other types of marketing.

Find out if the firm belongs to more than one MLS service. In some areas there's an overlap of regions, making multiple MLS memberships important.

Will the firm place your house in the MLS immediately making your home available to every possible Realtor greatly increasing your market exposure?

How much commission do they charge? How does it compare to that of other local firms that offer the same services?

What's the average length of time it takes to sell a house in your area?  Sometimes known as DOM for Days on Market. What is their company's average DOM?

Find out how long they want you to list with them.

How long has the listing Realtor been selling real estate?

What percentage of the firms listings sell during the initial listing contract period?

Buyer feedback is a very important tool. If every potential buyer makes the same negative comment, you should consider taking action to resolve the issue. How often can you expect to receive this feedback?

Will the agent hold an open house for other real estate agents? For potential buyers?

How are house showings handled? Will you receive advance notification that an agent is coming to show your house?  You can put restrictions on showings like certain days or times are off limits?  Keep in mind doing this may cut down on the number of times your house is shown.

If your new home will be in the same area, ask the agent any questions you may have as a buyer. You may choose to use the same Realtor to buy and sell.

If you have pets, make sure the Realtor is committed to a plan that ensures their safety. If it's a dog that bites, you will need a plan for buyer safety as well.

Does the firm use electronic security lockboxes? Many firms place a key inside a box that is secured to your home. Ask the Realtor to explain how it works.

Estimating Some Home Selling Costs

Ask the Realtors you are interviewing to give you an estimate of typical seller closing costs.

Ask how your share of property taxes for the year is calculated and prorated.

Ask about the amount of Attorney or other professional fees.

What will your share of property owner association fees (HOA) be?

What will be the total amount of the real estate commission?

Get a list of any other expenses that sellers are typically expected to pay, ie. inspections, surveys, certifications, pest inspections, etc.

Make sure to ask these Realtors any other questions that are important to you.  Your decision to hire a particular Realtor should be based in part on your gut feeling that the two of you can work together.  You don't need the biggest agency in town, the busiest agent, or the agent with the most experience. You need an agent who will market your home aggressively, to both buyers and other agents.

Must Tell Things to Tell Your Home Buyer from the Start

Real estate transactions fall apart every day for a variety of different reasons. Many times these deal killer situations could have been completely avoided if the real estate agent had simply educated their buyer clients a bit about the process before the first purchase contract was ever written.  Don't be afraid of giving your buyer clients an early education about potential problems that may come up during the progression of the transaction and how they are generally resolved and even your role in the process. Negative surprises in an emotionally charged and time sensitive home purchase process can be avoided in many cases by going through a checklist of instructions with the buyers in advance. 

Plano Real Estate

1.    Great Price and Seller Concessions?

Everybody wants to make a good deal on Plano real estate, and working a motivated seller into a great purchase price is the goal of most buyers. Be sure to talk to your buyers about how this will influence the process in almost every aspect through the entire closing process.  Let them know that getting a seller to accept their low ball price will generally insure that they will not agree to further concessions for repairs, etc. As long as you have educated your buyers to this fact, you will hopefully avoid the deal falling through due to seller remorse or inspection correction issues. 

2. A Really Low Ball Offer May Backfire on You

A slow DFW real estate market with high inventory may encourage buyers to make low ball offers to check the sellers motivation level. Sometimes this is not that unusual, and sellers simply come back with a high counter offer to draw the buyer up to a reasonable price.  However, with first time sellers who've cared for and loved their home for many years, a very low offer can offend them and they will outright reject the offer and refuse to negotiate with these buyers. 

3. Do a Comparative Market Analysis for Validate Your Offer

When Dallas Realtors get the question "What price should I offer for this home?". You should advise your client via a comprehensive market analysis (CMA) 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 legally divulge to your client about seller motivation or recent market changes, definitely do that and help them to feel comfortable with the price they decide on. 

4. I'm Not an Expert, But I'll Help You to Find One

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

5. Real Estate Sales is How I Make My Living

This will lead to the assumption that you want to get paid. I see too many agents, particularly newer ones, get burned out early in the game showing a great numbers of homes to a buyer who calls one day to say they called on a sign and purchased a home with another agent.  You want to help them to find the home of their dreams, and to devote the time necessary to turn over every rock to find it, you would like to execute a buyer representation agreement. Explaining and getting this agreement in writing will help to assure you a commission if they do buy a home. 

6. Don't Buy Anything Until After Closing

With many of today's buyers purchasing homes at the higher end of what they can afford, there isn't much room left in their loan qualifying ratios. Closings have fallen apart days before closing because the lender did an updated credit check and charges for new furniture or appliances on the purchasers on a credit card.  Always advise your buyers to make no significant credit changes or purchases in this critical pre-closing phase. 

7. Sometimes Stuff Just Happens

There are so many different aspects involved in a real estate transaction and closing, so it's not unusual for there to be last minute changes and delays that move a closing a few days farther back. Many times this is due to loan documents, as the lender wants to see the appraisal, survey, title and other documents first. If any of these are delayed, then the closing might be later than expected. Though it can't always be avoided, try to be sure that your client doesn't arrive with their furniture on a moving truck on closing day with no place to live or money to pay the movers for van storage because they can't move in for three days.

Why Isn't My Plano Home Selling?

Many Sellers with Plano homes for sale have had their property
on the market for months with very few or no showings. Some of these sellers have had dozens of showings but not one offer to purchase. In a buyer’s market, it is especially important to pull out all the stops and make sure your home stands out among the other entire competing inventory on the market. Ask yourself why a buyer would choose your home over all the other homes for sale find the things that don’t
stand out and get to work on them.

Condition of Your Home: Be sure to study your competition. If 85% of the homes in your market are not selling, then yours needs to shine above the top 15%. Also, study the homes that are pending sales because that's your current indicator of market activity. You want to know what is happening right now, and pending sale data will tell you which homes are selling. Unfortunately, in the DFW Real Estate area MLS the Pending sales do not show how much the house is under contract for. Separate from preparing your house for sale, consider its condition. Maybe you should consider adding upgrades and doing updates and repairs before putting your house on the market. If the top 5% on houses on the market have new flooring and your flooring is worn and dated, your house is not going to sell and could become one of the many Plano foreclosures. Replace the flooring. Paint the walls a neutral color and spruce up the curb appeal.

Not Enough Photographs / Poor Photographs

Houses in the DFW MLS that have only one photo are quickly passed by. Houses with dozens of photographs get noticed. Take quality photos or hire a professional photographer. Shoot wide angles with plenty of light showcasing your home's best features. If the photos are blurry or otherwise look bad don’t use them!
·
Take many photos of the kitchen area. The kitchen is one of the most important areas to photograph.
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Unless your bedrooms differ from one another greatly, just take photos of the master bedroom or largest bedroom.
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Don't get yourself in the photo of the bathroom by shooting the mirror's reflection.
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If the hallway is narrow, don't take a picture of it. Take photos of the fireplace or other nice
feature instead.
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Living room photos should show space so take photos of it from many different angles.
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Don’t forget to include the back yard and gardens.
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Add descriptive text to each photo.

You Didn’t Pay For Extensive Marketing and Advertising

No single aspect of a marketing plan will sell your sell your home. It takes a comprehensive combination of marketing efforts. Print color postcards and mail them to surrounding homes in the neighborhood and to out of area buyers.
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Get a virtual tour of your house to use in your marketing.
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Keep marketing aggressively until your house sells.
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Create color fliers containing several photos to distribute to potential buyers and those who view your home.
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Hold Open Houses on the weekends that coincide with other neighborhood open houses.
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Very important; Get feedback from buyers that have viewed your home. See what they liked and disliked about your home, and make adjustments to overcome this issues.

You May Have Hired the Wrong Listing Agent

You want to work with a professional DFW Realtor who is competent, experienced and rustworthy. There are a many ways to find Realtors but the easiest way is through referrals from friends and family. If you desire full service and want an agent to spend money marketing your house hire a full service brokerage company and interview at least three agents. To find the best listing agent don't base your decision solely on the suggested listing price or how much the agent charges for commission because there are other considerations. Discuss the listing price and commission amount last. First, find out the agent's marketing plan and experience.

You Haven't Priced Your Home Properly to Sell

Many sellers say that they don’t want to “give their house away”. To sell your house, the listing price must be right. Don't test the market at a high value because if you do, your house will probably just sit on the market and the days on market (DOM) will continue to increase. Dated listings don't usually sell for list price. To avoid overpricing your house, study the sold comparable sales. Adjust for square footage, upgrades and condition, if necessary. If your home has a bad floor plan or is located in bad location such as next to power lines, on or near a busy street, you're not going to get the same price as homes with a good layout and in a good location.
Example: if the last three homes sold at $300,000 but you feel they are not comparable to yours because they aren’t updates, but they were located on a quiet street and your street is busy your house is probably worth about the same. A plus of$25,000 adjustment for the updates could wash
out the minus $25,000 for the noisy street.

In a buyer's market, price your home a minimum of 3% less than the comparable sales. If you can't live with this amount then don't put your house on the market and set yourself up for
disappointment. Overpricing your house is the worst selling mistake a home seller can make.

DFW Real Estate Showing Tips

When showing your DFW home for sale, you want to do your best to engage the buyer emotionally because their decision to buy is based more on emotions, and less on logic. Give the buyer the emotions to say yes by staging and accentuating your home's positive attributes, and minimizing attention to the negative attributes. This is paramount to selling any DFW real estate and Plano real estate successfully.

Gracious Welcome

Although buyers are guests in your home, you want them to imagine themselves owning and living in the home. You don't want to make the buyer feel like an outsider.

· Don't pressure or hurry the buyer. Tell them to take all the time they want.

· Don't expect the buyers to remove their shoes, unless you are selling to a buyer for whom religious or cultural reasons dictate it.

· It is best to leave the house. The buyer won't feel comfortable about talking about the house in front of you.

· Leave a bowl of mints or other treats near the front door with a small note thanking the buyer for coming to see your home.

Check the Temperature

· Now is not the time to worry about your utility bill. If it's cold enough to wear a sweater turn on the heat.

· If it's hot outside, turn on the AC. It's better to heat or cool the house a degree or two warmer or colder than usual and then set the temperature at normal. This prevents the heat or A/C from coming on when the buyer is present, because some HVAC systems are loud.

· You want the temperature inside to be comfortable and to give the buyer more of a reason to stay longer, especially on hot or cold days!

· This may not be possible with Dallas foreclosures because many times the utilities are not on at the property.

Create a Mood

· Light a fire in the fireplace even if it is summer time.

· Romanticize it by placing two champagne glasses on a nearby table.

· Turn on soft music like jazz or classical.

· If you have water fountains, turn them on.

· Turn on all lighting and ceiling fans.

Play Up the Visual

· If you have seasonal photographs showcasing flower gardens, leaves bursting in color or a snow-covered lawn twinkling from street lights, then display them.

· Take down all the photos of your family. If your family members are pasted all over the walls it’s hard for them to imagine it being their own home.

· Open all the window coverings to let in light.

· Keep blinds partially closed that otherwise show undesirable outdoor scenery such as a dilapidated fence or a nearby structure that obstructs views.

Play Down the Scent

· Many people are allergic to certain scents and deodorizers, so don't spray the air or plug-in air fresheners.

· Don't burn candles or spray perfume in the bedroom for the same reason.

· If you're going to bake cookies or brownies or simmer spices such as cinnamon in water on the stove, put out munchies so buyers aren't disappointed. More than one buyer has said, "Oh, shucks, I thought there were cookies here".

Brighten up the House

· Turn on every light in the house, including appliance lights and closet lights.

· Brighten dark rooms with few windows by placing spot lights on the floor behind furniture.

· Turn on all ceiling fans and even the fireplace.

Provide Thoughtful Notes

Attach printed notes to items and in rooms that provide further information the buyer might miss or might not know. This will go a long way with the buyers.

· If you have an expensive chandelier in your dining room, put a card on it that discloses its age and other important details.

· If you have removed the washer and dryer from the laundry room, attach a card to the wall describing the room.

· If a room is empty place a note giving the buyers an idea what this area can be used for.

Top It Off With Food

The best way to entice buyers to linger in your home and notice more details about your home is to offer them food and drink. You don't need to cater a lunch, but finger sandwiches, cookies, soft drinks, water, coffee, and desserts are all a good idea.

Encourage Buyer Feedback

· Near the food and drinks, leave pens and a stack of questionnaire cards for the buyers.

· Buyers will feel obligated to respond to your request after being given food and drink.

· The showing feedback you receive will be invaluable to your selling goals.

· Allow buyer anonymity by not requesting their name or contact information.