Pending DFW Real Estate Going Back on the Market

When pending DFW real estate sales go back on the market as an active listing, it arouses many people’s suspicions in the area. Everyone wonders what went wrong with the closing? Why did the transaction fall apart? It’s possible it was canceled Because of seller’s remorse, but that's very unlikely. Many DFW home owners keep an eye on the for sale signs in their neighborhoods. It's common to see a pending sign pop up after two or three months on the market if the home is priced properly from the beginning.

Why Pending DFW Home Sales Go Bad
• Buyer's Remorse
Buyers sometimes get cold feet. In many states, standard contracts give buyers 7-10 days to do inspections and their due diligence. During this time, buyers can cancel their contract for any reason, but the most common reason is fear of buying a home. During this period, buyers have a right to get their deposit back for any reason if they decide to cancel. It is the job of the DFW Realtor to manage their buyers fears.
• Home Inspections
To the non-professional home buyer, homes generally look the same: four walls, a floor and a roof. But to a professional home inspector, every crack in the wall and every spot on the ceiling could be the beginning trouble. Damp basements, leaking roofs and malfunctioning HVAC systems are three significant problems that an average buyer can't reasonably inspect without professional assistance. Once a home inspector points out problems in a home, buyers tend to immediately start panicking. All houses have problems, even newly constructed homes. Sometimes buyers demand that sellers replace older appliances or fix pre-existing conditions that make them uncomfortable. Buyers may ask for a credit from the seller as compensation for needed repairs. If the seller refuses to do either of those options, then the pending sale may cancel and the house goes back on the market. If you are buying a DFW foreclosure home it is that much more important that you utilize the service of a professional home inspector.
• Low Appraisals
Most home buyers need to obtain a mortgage to buy a home. To protect the lender's position, the lender will ask a buyer to pay for an appraisal to determine the value of the home. If the appraisal comes in less than the sales price, here are the options:
1. Pay the difference in cash.
2. Order another appraisal from a new appraiser at an additional cost.
3. Supply the underwriter with comparable sales supporting the sales price, hoping to change the appraised value.
4. Ask the seller to reduce the price.
If the parties cannot agree to work out one of these options, the closing will fall apart.
• Mortgage Loan Rejection
Until the public records are searched by a title company or lawyer, buyers might not have knowledge of liens or judgments filed against them. Unless these liens are removed, a lender will not lend, and the buyer's loan can be denied. Buyers who don't know any better sometimes increase their debt ratios by financing large purchases while waiting for their mortgage loan to close. Taking out a loan for a new car or financing the purchase of furniture, taking a vacation can make a buyer ineligible for a mortgage loan. If the loan is rejected because of a buyer's impulse financing, the pending sale will go back to active status.
• Contingent on Buyer's Home Sale
Buyers can lose a home sale if the contract is contingent upon the sale of the buyer's home first and that home has not sold in the time specified. Few buyers can afford to carry two mortgages at the same time. Depending on the contingency agreement clause, sellers might also retain the right to kick out a contingent buyer and cancel the contract if another buyer wants to buy the home without a contingency.

Should You Buy or Rent a Plano Home

Here are some ways to tell if renting or buying may be best for you.
Bad Credit – Good Credit
How does your credit score look? If your FICO score is below 620, you're not going to get the best interest rates for a mortgage, in fact, a low score could put you into the hands of a sub-prime lender with higher rates and fees.
• You can order your free credit report from all three major credit bureaus.
• If you want to buy a home and you have bad credit, you should work on repairing it before applying for a mortgage.
• Four late payments may be enough to disqualify you from obtaining a home mortgage.
High Debt Ratios
Lenders consider two types of ratios: front end and back end ratios. Your front end ratio is your mortgage payment, plus taxes and insurance divided by your monthly salary. Your back end ratios add your monthly debt payments to your PITI payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for a mortgage.
Relocation - Job Instability

Is your job secure, how secure?
• Is Your Job in Jeopardy?
Is your company laying people off? Could you be let go and, if so, how hard would it be for you to get another job, making the same money, quickly?
• Relocation.
Are you likely to be transferred to another area within the next couple of years? If you had to sell your home due to a job transfer will your home appreciate at least 10% to cover the cost of selling; if not, you would lose money on the sale.

Maintenance
Homes require maintenance and upkeep. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers cannot afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home.

When Renting Costs Considerably Less
Does it make sense to buy Plano real estate or rent? If your mortgage payment would be three times the amount than you would pay for rent, it may not make financial sense for you to buy a home right now. Example, if it would cost you $2,500 a month to rent what would cost you $7,500 per month to own, does it make sense to pay than much more each year more to home? If you are in a 35% tax bracket, you might not be able to recouping the difference you pay towards your home. If your deductible expenses are $4,000 a month; 35% of that is only $1,400, which would be your true tax savings per month. Would you spend $4,000 to save $1,400? Retain the services of a professional DFW Realtor to guide you through the process. It may be a good idea to look at some Dallas foreclosure homes to find a great value in a home.

DFW Home Selling Mistakes

Sellers have a strong relationship with their DFW homes. Homes hold precious memories for families and it's common for sellers to be very emotional about selling their homes. Some DFW home sellers are emotional for a different reason; they are upset because they can't sell their home. Here are some of the top selling mistakes.

Asking is Priced Too High
• The single worst home selling mistake that a seller can make is asking too much for the home. If the home is priced too high, buyers won't look at it. You won’t “get lucky” and sell your home for an over inflated price.
• “I can list the price of my home high now. I can always lower it later”. This strategy will surely backfire as well. Your house can only be a new listing once. There is an energy, an excitement and there is interest in a new listing. This cannot be re-created by lowering the price later. Your competitive edge will be lost. The bottom line is sellers who "test the market" will “pay the price”.

Home is in Bad Condition
• Any professional DFW Realtor will tell you that getting your DFW house ready for market is more than tidying up the place. The house must not only be spotless and fresh, the home must be in good repair and have good curb appeal.
• Cleaning and repairing the house can boost chances of quickly selling and at a higher price. If items are broken or buyers see deferred maintenance, they wonder what else is wrong. It will cost you more, via lower sales price, to fix and prepare the house.
• If your house is vacant you may want to consider hiring a professional home stager to make the house look and feel like a home.
Home is Marketed Wrong
• When there is a bad photograph in the DFW MLS or only one photo a critical marketing mistake has been made. The photos are the most important marketing tool. If a potential buyer is scanning the internet for DFW Real Estate it is initially the photo that will grab their attention and get them to via your house information.
• Talking about the internet; almost everyone starting their DFW Home search start their search on the internet. Your house must have a good internet presence to have any chance of selling. Seek real estate firms that have high rankings on search engines so that more people will see your house for sale.

Hiring an Inexperienced Agent
• Hiring a good mediocre listing agent certainly will not help sell your home but it will cost about the same as hiring an excellent agent. Hire an agent that has experience in your area. They know more about and have more contacts in your area.
• If you want full-service, then hire a full service agent. If you are fairly confident your home will sell without a full-service agent, then talk to a discount or flat fee broker.

• Carefully read your listing agreement and make sure the agent who brings a buyer is compensated fairly because one surefire way to make sure an agent won't show your home is to offer a low commission percentage.

DFW Real Estate Bubble?

As we know now there actually was a national real estate bubble but was there a bubble in the DFW Real Estate Market? There is no indication that there ever was a DFW Real Estate bubble. That’s why we are not experiencing a “bust” in the DFW Real Estate Market. Why? Because of a number of factual, economic-based realities about the DFW Real Estate market keeps the Metroplex as one of the strongest and most sought after metropolitan areas to live in the country. Take a look at any web site that gives you access to the DFW MLS. In the DFW MLS you can see that there are now more houses on the market and these houses are staying on the market a little longer but the reality is that the prices of DFW homes has held relatively steady and have actually increased in some areas. If these DFW homes are in good condition and price correctly they will still sell in a relatively short amount of time.

The DFW Metroplex consistently ranks high among the best places to live in the Western United States. DFW Real Estate has maintained its value over the past several years, while many other markets around the country have struggled. Ask any DFW Realtor and they will describe the DFW Real Estate market as Calm and Steady, “Steady as She Goes”. Calmer heads have always prevailed in the DFW area and we should expect the same in the future.

DFW Foreclosures and DFW Foreclosed Homes

Mortgage companies and banks own houses because they have acquired them through the foreclosures process. These homes are called REOs, short for Real Estate Owned. When banks obtain homes through the foreclosure process, in most cases, it is because no one at the foreclosure auction bided the minimum amount, usually the amount of the existing mortgage(s), unpaid interest, penalties and legal fees.

At first look, it may not seem as though foreclosures are a good deal. After all, if it was a good deal someone would have bought it at the foreclosure auction, right? Also, if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor maybe they are trying to sell it for more than it is worth? With all that said, here are two reasons why an REO can be a great deal “value” to you.

• If two loans were obtained to buy the property (which is very common these days), the second mortgage holder sometimes does not foreclose. If the second mortgage holder does not make up the back payments to the first mortgage holed, including and back interest, penalties and legal fees and file its own foreclosure proceedings, the second mortgage holder will get wiped out in the foreclosure proceedings of the first mortgage holder. Many second mortgages comprise 20% or more of original market value

• Not being in the real estate business the bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale the bank is likely to price that REO home for less, just to get rid of it and to get if off their books.

About REO Listing Agents
There are many web sites available to find DFW Real Estate and DFW Foreclosures, your DFW Realtor can also find them in the DFW MLS. If you ask your buyers agent to search MLS for "REOs," you will probably find that a very small handful of real estate agents specialize in listing REOs for sale in your neighborhood. Don’t take a chance on a Realtor that tells you “sure I specialize in REO property”.

Here are tips that will help you when searching for DFW REO listing agents:
• Most REO listing agents list only REOs, not other type of property.
• REO listing agents often give commission discounts to the banks and mortgage companies in return for their business, because these REO agents deal in volume.
• REO listing agents make money by either selling a lot of REOs or operating as a dual agent, both listing the home and assisting the buyer in buying the same home. In Texas this is known as an “Intermediary”.
• REO listing agents generally represent the seller, not the buyer but can operate as a dual agent.
• REO listing agents are typically top-producing agents because of the volume of business they conduct.
• Some REO listing agents are so busy that they hire assistants to handle calls.

About Hiring a Buyer's Agent
Unless you have direct experience negotiating with mortgage companies and banks, it will do you well to obtain representation by hiring your own buyer’s agent. Be sure you interview three buyer’s agents before you select one. Choose one that has a lot of experience with foreclosures and REO homes and one that is professional and you feel comfortable with.
• Buyer's agents have a fiduciary (legal) responsibility to protect your interests.
• Buyer's agents are usually paid by the seller.
• Buyer's agents represent you, not represent the seller.
• Buyer's agents may ask you to sign a buyer’s broker agreement, which will lay out the agent’s duties to you and it will also specify who pays the commission.
• Hire a buyer's agent who has experience working with REOs.

About Negotiating with REOs
If the listing is relatively new to the market the bank usually will not come down much from its asking price. You will have more negotiating power if you make offers on homes that have been on the market for longer than 30 days. Here are more tips:
• Banks negotiate bulk discounts with title and escrow companies. If you choose to use the bank's title & escrow company, check the fees that these companies are going to charge you. In general, fees not paid by the bank but paid by, you the buyer, will be higher because title & escrow often make up those discounts by charging buyers more.
• You will likely be asked to buy the home "as is." Make your offer subject to a home inspection. Generally, the bank will not make repairs but if a serious problem comes up during the inspection you will have the right to back out.
• Many banks are moving away from paying typical closing cost for the buyer. Some fees such as transfer taxes, county and state fees, are borne by the buyer and not the bank. Banks rarely will pay for pest inspections, repairs or home warranties.
• Expect the bank have you sign their purchase contract and/or addendum to your standard purchase contract. Read it thoroughly and ask a real estate lawyer for advice if you do not understand it.
• If the bank won't budge on your offer and you receive an offer rejection, wait another 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. Maybe this time the home will be yours.
• It may take 10 days, or more, to receive a response to your offer from the bank.
• The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank.
• If you cannot close by the predetermined closing date, in many cases, the bank will charge you a penalty for each day you pass the closing date. Make sure you have a loan preapproval letter from your own lender before submitting an offer. Without one the bank may not take your offer seriously.

Preparing to Buy DFW Real Estate

When it comes to buying DFW Real Estate, proper preparation is a necessity to your success. You don't want to find yourself in a neighborhood that isn’t as nice or as safe as you had thought. You also don't want to be house poor, making high mortgage payments on a house and not being able to enjoy it. On the flip side, you don't want to fall in love with a home you can't afford? So what do you do? Do your due diligence and Prepare!

You can start the DFW home buying process by preparing a plan for your purchase and referring to it throughout the process. This will help to prevent you from missing an important item or being uninformed on an essential part of the process. Your plan will not only be an aid in buying your home, it will help you to take advantage of all of the home buying information that is available. One of the most important DFW home buying tasks is to determine your wants and needs. It can help you to avoid disappointment or the pain of buying more house than you can afford. Separating your wants from your needs will help you prevent costly mistakes in the home buying process. Establishing basic parameters and sticking to them will be invaluable to the process. When home hunting, it is easy to let your emotions take over, in the moment and you could end up with more home than you can comfortably afford. Review your mortgage options early in the process. Don't wait until after you have found the right home to begin exploring your financing options. Having your mortgage options clear before looking for a home will strengthen your negotiations powers when it is time to write an offer for the home you choose. If you are in a situation where another buyer is interested in the same home as you are, you will have the advantage if you are the one who has been prequalified for a mortgage.

Chances are that you will be working with a DFW Realtor when you start looking for DFW homes for sale. Before you go on a house search, have your Realtor provide you with the listing information from the DFW MLS and familiarize yourself with the facts of each home. Also before starting your DFW Real Estate search make sure you know how agents work and most importantly, who they represent. Many DFW home buyers have made the mistake of assuming that the Agent they were working represented them in the transaction, when, they actually represented the seller.

DFW Home Buying Trends

Home Buyers Spend More to Live in and near the City
Generally, urban infill developments command higher sales prices than homes located in the suburbs. Many home buyers are willing to pay a premium to be located near work, restaurants and nightlife. This partly due to high gas prices and people tire of long commutes and the related expenses. Some newer developments are selling for even higher prices. But these developments are located near shopping, businesses, art galleries, bars and gourmet cafés, which satisfy the wants and needs of those buyers. Some buyers do not own a car and depend on walking and public transit to get around the city.

Modern Designs
Newer homes are designed with simple, clean lines, offset by decorative lighting fixtures such as drop pendants, hand-crafted balls or hidden light sources. Some designers use creative built-ins that double to house large flat-screen televisions, which swivel between two rooms, or double-sided fireplaces that add character to the home. Granite counters are still popular but are beginning to lose appeal, perhaps because so many homes have them they are not special anymore. Buyer’s preferences are leaning toward sinks that are larger, flatter and built-in to the vanity. Rain shower heads are installed in ceilings instead of walls. Soft, cooler earth-tone colors are on the comeback. The colors are more relaxing. There is a lot of blue, gray, tan and green and less of the warmer colors such as yellow, red or orange.
Green homes are becoming more and more popular, featuring solar energy, natural fiber or eco-friendly wood flooring, compact fluorescent lighting and energy-efficient high-end appliances. Some homes even have a place in their garages to plug in an electric car.

Lofts Gaining Popularity
In many downtown areas, lofts are the design of choice. They offer work-live spaces, which are generally multi-level. The first floor is often an open space that can be used as an office, warehouse or commercial place of business. The upper floors feature floor-to-ceiling glass windows -- views are highly desirable -- exposed ventilation and duct work, with fewer walls separating living spaces such as bedrooms, living rooms or kitchens. Loft designs make the kitchen work area more compact and efficient. Appliances are smaller in dimensions. Many appliances blend with sleek European cabinets. A professional DFW Realtor will help you find a downtown loft that meets your needs.

Professional Singles are Teaming Up
Single professionals are teaming up to buy downtown DFW Real Estate together, especially those that offer two master suites. Higher prices make qualifying on a single income more difficult. Some single people find that it's easier to pay half of a mortgage than the whole mortgage on their own and it makes financial sense, particularly if half the mortgage is equivalent or close to the amount of a monthly rental. Singles are attracted to downtown areas that offer walking distance to work, shopping and nightlife attractions.

Home Buyers Desire Smaller Homes
Many baby boomers who live outside the city often decide to move back after their children grow up and leave home. They find that they have to much living space, too much upkeep and too far away from downtown attractions and easy of getting around. Many of these buyers would like to downsize and make do with a smaller space that is newer and offers more conveniences, than live in a larger suburban home not convenient to the city. The DFW MLS system is paramount in locating the home of your choice.

Your DFW Real Estate Escrow

What is Escrow? The simple explanation of Escrow is a deposit of money, a deed or other written document by one party of a transaction, for the delivery to another party, in the same transaction upon completion of a particular event or condition. The Texas Escrow Law provides the legal definition.
Do you need an Escrow when buying DFW Real Estate? No matter if you are the seller, buyer, or lender you will want the assurance that no property or funds will change hands until All of the instructions in the transaction have been followed and completed. The escrow company has the obligation, to all the parties, to safeguard the funds and/or documents while they are in their possession and to disburse funds and/or convey title to Dallas Real Estate only when all provisions of the escrow have been complied with.
The way Escrow works: The principals to the escrow transaction, the buyer, seller, and lender create the escrow instructions, usually in writing, to be created, executed and delivered to the escrow officer. If a Professional DFW Realtor is involved, he or she will normally provide the escrow officer with the information necessary for the preparation of the escrow instructions and documents. The escrow officer will process the escrow, in accordance with the instructions and when all of the conditions required in the escrow are met the escrow will be "closed." Each escrow, although similar in many ways, will be different in some respects, as it deals with your DFW property and the specific transaction. If you are purchasing a DFW Foreclosure Home it is especially important to have the title work securitized by a seasoned escrow agent. It is the right of the principals to use an escrow company who is experienced and competent in handling the type of escrow transaction in which you are involved.
In this ever changing real estate environment you can rest assured, be confident and move forward with a DFW home purchase if you study the market in your area, understand your financing options and get sound advice from real estate professionals.

Before Reducing The Price of Your DFW Home

Thinking about price reductions, price improvements, price adjustments? It doesn't matter what it’s called, no one wants to hear about lowering the sales price except buyers. In slow, buyer's markets it is common for DFW Home sellers to point their fingers at their DFW Real Estate agents and say "Why didn’t you do more to sell my house?" It seems like a good question but if the seller has their home overpriced there was probably nothing they could have done to get the home sold. With that said Sellers should ask agents this question.

Before Reducing Your Price Review Your Marketing Plan and Answer These Questions
1. Do your ads contain too much or too little information?
2. How many ads have been published?
3. What kind of direct mail campaign has been imitated?
4. How many open houses have been held?
5. How does the house show online, many good quality pictures?
6. Is your sign in a good location, contain a phone number and a Web site?
7. Do you have a virtual tour online?
8. What kind of feedback have you received from agents and buyers?
9. Are you offering enough compensation to selling agents?
10. Have you had any showings?

• Are you truly serious about selling your home?

1. Maybe you don't have to sell. When the market is slow and inventory is high, demand falls. If that's the case, maybe you should take your home off the market.
2. It makes no sense to put an overpriced home in MLS that is not receiving any showings because it skews the numbers for market performance.
3. If you don’t need to move right now, you might be better off renting your house or staying put until the market rebounds.
Choosing the Right Price

If your list price is to high, you'll need to continually reduce the price until you hit the right number, and by then buyers will begin wondering:
1. What is wrong with your house?
2. How much lower will you go?

If necessary, you want only one price reduction. Consider these guidelines:
• Realize your DFW Realtor is on your side; enlist their help.
• Pull up pending sales and examine their history. How many days on market before the price was reduced and how much of a price reduction was made? You won't know the sold price, but you can determine average price reduction percentages. Your Realtor can provide you this information through the DFW MLS.
• Compare sold prices with active listings. Are sold prices higher or lower?
• Run a side-by-side comparison with active listings near the price point you are considering. Price yours so it falls in the bottom two to five listings or, if you are really committed to selling your home, price it less than anything else on the market.
• Although the DFW MLS contains much valuable information in many cases it does not contain For Sale By Owner DFW information.
Is Your Price Too Low?
• Even in distressed markets properties that are priced below what buyers are readily willing and without prodding to pay will receive multiple offers.
• It is common to have price wars among buyers who are competing for these low priced homes, which will then result in an accepted offer for more than list price.

Every House Will Sell!
It is a fact. Every DFW Home will sell if it is priced properly and every home will sell for it’s true value. The old adage is true “everything is worth what someone is willing to pay for it”

Before You Buy - Concerns About DFW Property

Property Disclosures
You have already toured the home, looked at the ceiling, walls and floors, turned on the faucets and flipped the light switches but you have never lived there. The seller may have lived there for many years and have a ton of knowledge about the home. For this reason, in most areas, the law requires the seller to provide potential buyers certain disclosures about the home and sometimes even the area around the home. Since you don’t want to be blindsided down the road with a big expensive repair you want the seller to disclose any adverse conditions in the home. This would also include any problems with the foundation of the house, whether the property is in a flood zone, a noise zone, near a landfill or any other kind of hazardous area. If you have a professional DFW Realtor representing you, in the course of their daily business they will get the necessary forms for you. Take note that banks selling DFW foreclosures are exempt from the disclosures. It is true “Buyers Beware”.

Property Condition
The last thing you want when you move into your new home is to find it a total mess. Make it clear in your offer that you require certain minimum standards. Some of the requirements you should include in your offer are that the appliances work, the roof does not leak, the plumbing does not leak, there are no broken or cracked windows, the yard has been kept up, and any trash has been cleared away. There are many DFW homes for sale so find one that is in good condition and meets all your needs.

Home Inspections
Along with the required appraisal and the pest inspection always get a professional home inspector to go through the house to find any potential problems. Even if they are not things the seller is usually expected to repair, at least you will have knowledge of any potential problems. The seller will want this inspection performed quickly, so that you can move forward with the purchase. Once you receive the home inspection report, you will want to allow yourself a few days to review the report. If you are concerned about any items on the report you can negotiate with the sellers on which repairs will be performed and who will pay for those repairs. If no agreement is made, you can cancel the purchase without penalty, assuming you have included a home inspection contingency in your offer. Always get a Home Inspection!

Walk-Through Inspection
Right before closing on your DFW Real Estate, you should revisit the property to make sure it is in the condition you have set in your offer. Be sure to inspect that any required seller repairs have been performed made and are made in a professional manner. If you were smart enough to use a DFW Realtor in your transaction make sure they accompany you on this final walk through inspection.

Some DFW REO Lenders Won't Sell Their Bank Repo to You

Many DFW homebuyers are chasing after bank repos and foreclosures and are discovering that some REO often referred to as REO’s (Real Estate Owned) lenders will not sell a bank repo home to them. These banks can name their own terms and conditions under which they will sell their bank owned homes, and if they don't fit those qualifications, they are out of luck. Don’t these banks want and need to get to get rid of these DFW foreclosure homes? Yes, but it isn’t so straight forward.
Banks Don't Want Buyers Submitting Multiple Offers
Banks have learned that not every DFW foreclosure buyer is fully committed to actually following through with the purchase of these homes. Some buyers make multiple offers with no intention, or ability, to buy all of them. They want to choose the best deal they can get, let the other ones go, and in doing so they could find themselves in court for writing these types of bogus offers. The problem arises when the buyer does not have the financial means to purchase more than one or all the properties they have contractually agreed to purchase. Many state laws might hold the buyer liable for breach of contract upon cancellation because the buyer may have breached an implied contract covenant of good faith. Banks want the buyer to be committed to the purchase and follow through on closing. If the bank has reason to believe the buyer is not serious or have the means, the bank will reject their offer to purchase. There are other reasons banks may not sell their bank repos to you.
Reasons a Bank Might Not Sell That Bank Repo to You
Some Bank-Owned Homes Do Not Qualify for Conventional Financing.
FHA Appraisal Conditions.
Banks Prefer Cash Buyers for Bank Repos.
Why REO Lenders Like All Cash Buyers to Purchase Bank Repos
No Appraisal Contingency.
No Loan Funding Contingency. Faster Closing.
As you can see these REO/Foreclosure Lenders are under no obligation to sell their REO properties or even these DFW foreclosures. With these types of transactions, it is imperative that you use a professional DFW Realtor to protect you and to ensure a smooth closing with your DFW real estate transactions. Trying to navigate through all of this yourself could cost you in the end.

Earnest Money Deposits on DFW Bank-Owned Homes

The last thing a DFW home buyers wants to do is lose their earnest money deposit when buying a foreclosure or bank owned home. Bank owned home selling transactions, called REO’s (Real Estate Owned), are typically handled differently than most regular DFW real estate transactions. To make things even more interesting, there is very little conformity among these banks as to how each sale is handled. There is a common thread among these REO and foreclosure sales. It is a tightening of how earnest money deposits are handled for these types of REO/Foreclosure transactions.
Most regular real estate transactions in the DFW Metroplex are handled in a similar manner. A buyer makes the earnest money deposit check payable to escrow or title company. This deposit is refundable to the buyer pursuant to the terms and conditions of the sales contract. That is not to say, that the earnest money deposit is automatically returned to the buyer because a term or condition of the contract of sale has not been met. The escrow deposits cannot, in most cases, be released until a release is signed by both parties. Sometimes disputes arise, and that can delay the release of the escrow funds. Banks don't want to get halfway through the escrow process only to discover that the buyer wasn't serious about buying the home. Therefore, banks want to limit the cancellations and will make demands during the negotiation stages of the contract.

Here are tips for dealing with DFW REO lenders:
Make the Earnest Money Deposit Payable to Title Company.
Funds Must Be in the Buyer's Account to Cover the Check.

Prepare to Replace the Earnest Money Deposit with a Cashier's Check Upon Offer Acceptance.

Be Ready to Immediately Overnight the Earnest Money Deposit to the Bank's Designated Title or Escrow Company.
Negotiate Earnest Money Deposits Below the Maximum for Small Claims Court.

Time Your Negotiations for Non-Refundable Earnest Money Deposits.

Because some of these DFW REO banks will make your earnest money deposit non-refundable, especially on these DFW foreclosures, you may want to schedule your home inspection upon verbal acceptance of your offer. You may have less than 24 hours to get these important inspections completed. Line up your inspections ahead of time and be ready to go the minute your DFW Realtor tells you the offer will be accepted. This way, you will have your inspections completed before you deliver that earnest money deposit. It will save you a lot of grief and worry if you know that you definitely want to proceed with the transaction before handing over your money. You can find great home values with these types of DFW real estate transactions.

Who Pays The DFW Real Estate Commission

To understand who pays the DFW real estate commissions let's look at how real estate agents are paid and how and why they share their commissions with other cooperating agents. It can be a bit confusing so don't be embarrassed if you don't know how the commissions structures work.

How Real Estate Commissions Work

All real estate agents work under a real estate broker. All fees generated from a real estate transaction are paid to the broker and then the agent receives their portion of the commission through their broker. Only the real estate broker can collect a real estate commission.

How Do Real Estate Agents Get Compensated by the Broker?

The split agents receive vary from transaction to transaction. New agents can receive as little as 30% to 40% of the total commission received by the broker. A more seasoned agent can receive form 50-70% of the total commission. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses. Top producing agents might receive 100% and pay the broke a flat desk fee.

Listing Agents' Fees

The most typical type of listing agreement between a seller and an agent gives that agent's broker the right to exclusively market the property. In return for finding a willing and able buyer, the seller agrees to pay a commission to the broker. Typically, this fee is represented as a percentage of the sales price and is shared between the listing broker and the selling broker.

Co-Broker Splits

The split of commissions between brokers is not always fair or equal. For example, a seller could sign a listing agreement for 6% that states that the listing broker will receive 4% and will pay 2% to the selling broker. It is not always a 50/50 arrangement. In a buyer's market, a seller may want to ask the broker to give a larger percent of the commission to the buyer's broker. On the other hand, in a seller's market, the buyer's broker might receive less. There is no standard arrangement.

Buyer's Brokers

Seller Pays the Buyer's Commission

Under a Buyer's Broker agreement the named broker and agent represent the buyer's interest. The commission paid to the broker is usually paid by the seller. Some buyer broker agreements will contain a clause that will compensate the broker for their commission due less the amount paid by the seller. For an example, a cooperating listing agreement may offer to pay a broker only 2% of the sales price, whereas the brokerage generally charges a commission of 3%. The difference of could be paid by the buyer if the broker chooses not to waive that amount or the commission.

Buyer Pays the Commission

The seller is then not obligated, under most listing agreements, to pay the listing broker for more than the listing side of the commission. Many time sales prices will be reduced to reflect the amount the buyer is actually paying. Sellers can also give a credit to the buyer for the commission and the buyer will then credit the broker.

Who Really Pays the Commission?

It can be argued that the buyer pays the commission. Why? Because it is generally included in the sales price. If the seller did not sign an agreement to pay a commission to a DFW Realtor, the sales price may have been lower. On the other side of that thinking, it be argued that the seller pays the commission from the sale of DFW Real Estate because it is deduced from the sellers money at closing. The reality of it is that both the buyer and seller are paying the commission. The only way to avoid a commission is to sell your home as a Dallas FSBO (For Sale By Owner). There is much undue risk in buying or selling a home in this manner. It is always better to retain the services of a professional DFW Realtor.

Making a Lowball Offer on a DFW Home

Many potential DFW homebuyers thing a good strategy for making their home offer is to make a lowball offer thinking and assuming that they make get lucky and get their offer accepted. They figure the worst case is that the seller will counter their lowball offer, maybe half way, and they will still save a ton of money. This is possible but the chances are slim to none, closer to none. Many times a seller will be offend by the lowball offer and simply reject it. Even if that buyer submits a higher offer, the seller won’t even look at it.

Here are 5 common lowball offer mistakes buyers and their agents routinely make:
Submitting a Lowball Offer Before Calling the Listing Agent First
The listing agent can, in most instances, provide valuable information about the seller and their circumstances that will help you to write the offer in such a manner that the seller will be likely to accept. If your DFW Realtor doesn't call the listing agent first, for all you know, that home might already have a contract pending on it. Also, always call to find out how many offers the agent has received, if any.
Submitting a Lowball Offer With a Low Earnest Deposit
Earnest money deposits generally vary anywhere from 1% to 5% of the sales price. If a buyer submits an offer way below list price and then sends a small earnest money deposit it makes the buyer appears as though they are not serious or committed to buying the property.
Submitting a Lowball Offer With A Letter of their Situation
Most sellers don't want to read a hardship letter from a buyer and don't usually care if a buyer has fallen in love with their home that they can’t afford. Banks are even less forgiving in these types of situations. Explaining to a seller that the buyer doesn't qualify to pay list price sends a signal that the buyer shouldn’t be making an offer on other home in the first place. It makes the buyer appear financially weak and uninformed.
Submitting a Lowball Offer With Non Accurate Comparable Sales
Unless the home is substantially overpriced, the listing agent has already given the seller a comparative market analysis to support the sales price before putting the home on the market. Sending the listing agent a list of sales from another area insults the agent's intelligence and put them on guard that you are unethical. This also shows that the buyer's agent does not know the values in the neighborhood or the surrounding properties The best way to handle this to get your professional DFW Realtor to run recent comparable using the local DFW MLS that could possibly show that prices have in that area. If your Realtor can find a few DFW listings will much lower prices this could help support your lowball offer.
Submitting a Lowball Offer Asking For Concessions
If it's not bad enough to anger the seller with a lowball offer but it makes the situation even worse if the buyer also ask for concessions like help with closing cost on top of an already low offer price. Some sellers are willing to give a cash credit to buyers, but generally they will refuse to do so on a lowball offer. There are better ways to get a low-ball offer accepted than with making these 5 mistakes.

All About DFW Real Estate Listing Agreements

Most home sellers don’t know it but there is more than one choice when it comes to DFW real estate listing agreements. The best listing choice for you depends on your willingness and ability to handle some of the home selling duties and the real estate market conditions in your community.
Types of Listings
Open Listing
An open listing allows a home owner to sell their home themselves. It is a non-exclusive agreement. The owner may have an open listing with more than one real estate agent and only pay the agent who brings a willing and able buyer whose offer the owner(s) accepts. The difference is that an owner will probably pay only a selling agents commission, which is about half the amount of typical real estate fees. This is because the owner is not represented by a listing agent. In this case, the owner does not pay a agent to represent them, but they do pay the agent to represent the buyer. If the owner is able to find the buyer themselves then the owner will not owe a commission to anyone. Open listings are not popular with many DFW real estate agents as they are not guaranteed to be compensated for their efforts and expenses.
Exclusive Agency Listing
An exclusive agency listing has many similarities to an open listing arrangement. The most important difference is that the agent represents the owner. The owner still has the right to sell the property themselves and not pay a commission. The agent is free to cooperate with another agent, meaning the second agent could bring an able buyer whose offer the owner accepts. Typically, this agent will be paid a listing commission that is shared with the selling agent. In this case the owner pays both fees.
Exclusive Right-to-Sell Listing
An exclusive right-to-sell listing is the most common of the listing agreements. It gives the agent an exclusive right to earn a commission by representing the owner and finding a buyer, either directly or through another agent. The owner pays both the listing and selling agents’ commissions. The owner cannot sell the property themselves without paying a commission, unless an exception is noted in the listing agreement when it is executed.
Exception to the contract: Say, your next-door neighbor has expressed an interest in buying your house. Often a listing broker will give the seller a certain number of days to execute a contract with the neighbor without them owing a commission.
Other Things to Consider
• Length of Listing
The term of the listing agreement is negotiable. Common listing agreement are 90 days, six months to one year or more.
• Selling Commission
How much will you have pay in commissions to your DFW Realtor? When there is a lot of inventory on the DFW real estate market and few buyers, to generate traffic, you may want to consider paying the selling agent more than you would in a market where inventory is tight and a lot of buyers are going after fewer listings. For example, if the total commission is 6%, and the listing agentn wants to offer 2.5% to the selling office, you could insist on paying 3% instead. Make sure your Realtor put the commissions in the DFW MLS correctly.
• Cancellation of the Listing Agreement
Will your agent let you cancel your listing agreement? If the agent will agree to let you cancel at any time, then that agent is giving you a guarantee. In that instance, the duration of the listing agreement doesn't matter.
• Expiration of the Listing Agreement
If the listing agreement expires without an automatic renewal or if the parties decide to cancel the listing agreement, the listing agent may supply the owner with the list of names of prospective buyers the agent collected. If any of those buyers contact the owner within the time frame specified in the listing contract and they purchase the property, the owner would still owe a selling commission.

Worst DFW Real Estate Selling Mistakes

There is a right way and a wrong way to sell a DFW Home. Here are some of the wrong ways.

I Want to List it High Because I Know Someone Will Offer LessWhen a DFW home seller interviews a real estate agent it's easy for them to get caught up in the excitement of choosing a sales price. If they can get more money for the home, it means more financial opportunities for the homeowner. Maybe it means they can afford to buy a larger, more expensive home, pay off some bills or take a vacation. Unfortunately, uninformed sellers often choose the listing agent who tells them they will list it at the highest list price. This is, by far, the worst mistake a seller can make.

Establishing Value The reality is that it doesn't matter how much money you think your home is worth. The only person whose opinion really matters is the buyer who is going to make an offer, and of course, the appraiser. Pricing a house is part science and part art. It involves comparing similar houses in similar communities, making the necessary adjustments for the differences between them, charting market movements and measuring the amount of housing inventory, all of this in an attempt to help determine a range of value. This is the same method appraisers use to evaluates a house. No two appraisals are exactly the same; they are however, generally close to one another.

There is no hard and fast way to just stick a price on your home. Is the Price Too Low?Houses sell at a price a buyer is willing to pay and a seller is willing to take. If a house is priced too low the seller should expect to receive multiple offers and drive up the price up to the market value. There is not much danger in pricing a home under its actual value and your competition. The danger is in pricing it too high and haveing the house sit on the market for months.How It Starts To Go WrongThe seller of a home didn't interview her real estate agents. She pick the first agent off the Internet because, "He looked like a nice guy." The agent priced her house at $250k. After 90 days of sitting on the market, the listing expired.It Continues To Go WrongThe next agent she hired listed the house at $235k. Months passed and eventually she dropped the price to just under $220k, still no offers. A few people looked at the house, but no serious buyers came forward.More Than a Year LaterBy the time she hired the last agent list her house, the seller had grown exhausted and weary. It was now more than 12 months later. The seller and her agent then priced the home at $195k and it sold very quickly.

The sad part is that the comparable sales in the neighborhood fully justified a price of $220k, but the home had been on the market for too long at the wrong price, and now the market had slowed.Protect YourselfThe question is how much money expired listings cost the DFW real estate owner? The financial losses often exceeds the extra mortgage payments paid and goes beyond the cost or the hassle factor of trying to keep a home spotless during the listing period. It affects the value that a buyer ultimately chooses to pay because it is no longer a "fresh" listing. It's now stale, dated, a home that was overpriced for too long. Don't let it happen to you. Don't be that seller of an expired listing. Be sure to hire a professional DFW Realtor to price your house correctly from the beginning. Your Realtor has access to the powerful DFW MLS and can help you determine the best list price for your house.

Why do I need a DFW Realtor when Buying New?

Myth 1: A new home buyer will get a better deal if they go in without a Realtor.

Having your own Realtor doesn't cost you anything but offers you many advantages and protection. The builder already accounts for, and adds in, an agent's commission to the price of the home. HHaving your own Realtor to represent you could save you thousands of dollars. Take advantage of your Realtors service, have representation and get a great deal.

Myth 2: The builder's representative will deal with me fairly.

The builder's representative works only for the builder and is only looking out for the Builders best interest. If you take your own Realtor you will have someone looking out for your best interest. Having an experienced DFW Realtor with you will give you more negotiating power and your Realtor will find ways to get the sales price lowered and see if any special incentives can be included in your purchase. Your Realtor can help you research the builder to make sure they are financially sound, and not headed for bankruptcy, prior to signing a contract.

Your Realtor can review the builder's contract for you and make sure all the correct terms and conditions are included. A builder's contract is much different than a standard Texas Real Estate Commission contract. Make sure you understand each and every paragraph or the contract before you sign. Your Realtor will walk you through the contract and building process to help make it smooth and predictable.

Builders rely on their reputation to keep their bustling DFW real estate business and their reputation with the Realtor community is paramount to their success. When a builder see that you have a Realtor, they go out of their way to make sure things are done correctly and efficiently.

VERY IMPOTRTANT: Your Realtor must accompany you when you walk through the builder's door or you will find yourself with no representation. It is in your best interest to retain a Realtor with experience with builders to give you an edge and get the best deal possible on your new home. Now, more than ever, an experienced DFW Realtor is needed to help find you the best builder. Not all builders and new home communities are listed in the popular DFW MLS and some effort is need to uncover the best builders in the best communities.