Negotiate Your Best Buy On DFW Home

Below are six great tips for negotiating the best prices for homes. Bonus tip: Keep your emotions in check and your eyes on your end goal and you can pay less when purchasing your next home.

1. Ask a lot of questions:

Ask your Realtor for information concerning the seller's financial and selling motivations. Are they facing a divorce, foreclosure or a short sale? Have they already purchased another home or relocated to another area making them open to accept a lower sales price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just newly listed on the market? Have there been other offers? If so, why did they not close? The more signs there are that sellers are eager to sell, the lower your offer can reasonably be.

 

2. Get prequalified for a mortgage

Getting prequalified for mortgage financing helps prove to sellers that you are serious about buying and qualified to buy their home. Even in the hot Plano real estate market it will push you to the head of the pack when sellers are choosing among many offers. They will go with buyers who are a sure financial bet, not with those whose financing may flop.

 

3. Work back from your final price to determine your offer

Know in advance the most you are willing to pay for the home and work back from that number to determine your offer. This can set the tone for the entire negotiation. A bid that is to low may offend sellers emotionally invested in their DFW homes sales price. A bid that is to high may lead you to spend more than is necessary to close the sale. Work with your agent to evaluate the sellers' motivation and comparable home sales to arrive at an initial offer that engages the sellers yet saves money in your wallet. When dealing with DFW foreclosures you won't have to worry about the banks emotions, however.

 

4. Avoid contract contingencies

Usually, sellers will favor offers that leave little to chance or risk. Keep your bid as free of complicated contingencies as possible, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval and home inspections typical in your area, like radon if they house has a basement.

 

5. Don't get emotional

The reality is, buying a home is a business transaction, and treating it that way helps save you money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating. Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won't budge, make it clear you're willing to walk away, they could get nervous and accept your offer.

 

6. Don't let competition change your plan

Great homes and those competitively priced can draw multiple offers in any market. Don't let competition entice you to go beyond your means or agree to concessions, such as waiving an important inspection, that isn't in your best interest.

 

More Positive News on The Real Estate Market for 2013

There are many positive terms being attached with the 2013 housing climate. Terms like growth, increase, etc. There are many conversations about the good signals in the housing market which are great and more meaningful as the housing chugs along. There is much chatter about how to capitalize on this opportunity and turn the upward trends into a real profit.

Here are five trends you can profit on in 2013

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1. New Homes

According to a late December Census Bureau report, new home sales are growing at their fastest pace in two years. This report showed that new home sales are up 15% from 2011. As the market recovers, more consumers are using this opportunity to buy the new home of dreams.

 

To make the most of the surge in new homes and generate buyer leads make sure that you are sharing new home listings to catch the attention of these buyers. 2013 could be your best year ever but that won't happen unless you have a plan that includes capitalizing on the market's hottest trends. The surge in new Denton County homes and Tarrant County homes has exceeded the national average.

 

2. Mortgage Approval Rates

The main worry of most buyers is the daunting mortgage qualification process. This has many qualified potential buyers deciding to delaying purchasing Plano homes due to lending anxiety. One trend you can communicate to your buyers that will help encourage your buyers is that mortgage approval rates are up a full 11%. According to a mortgage expert "New mortgage programs with looser and simpler qualification rules have been introduced and in many cases the steps required for a home mortgage approval are more simple for today's mortgage applicants as compared to just a couple of years ago."

Not only are approval rates up but the government has taken some major steps to clear up the ambiguity surrounding the mortgage process. If you're an agent who is targeting and counseling buyer you will need to learn the new mortgage guidelines recently released and connect with a local lender who can help you qualify your leads quickly.

 

3. More Jobs

The sharpest real estate agents are always looking for the next stream of revenue and potential clients. With that said, one trend these agents should not ignore is the growing class of 25 to 34 year olds that are quickly approaching their goal of homeownership. Recent employment numbers showed that increasingly, more 25 to 34 year-olds are working. This group saw an employment rise of almost 2% according to a recent jobs report.

 

There are two things every agent should know about this group. This age bracket is one demographic that should not ever drop off our radar screens, as they are the prime age for making housing purchases. Marketing to this demographic should be continuous. The second fact is that this generation's preferences means that marketing effectively to this group will be by using online recommendations and real time information. As an agent, that means you should make getting and adding recommendations a part of your marketing strategy.

 

4. Relocaters

In a recent article in the Wall Street Journal showed that one of the major fallouts of the housing recovery has been a surge in relocating buyers around the country. While still at a low, for the fourth year in a row the number of folks moving is up, according to the most recent Census data. You need to figure out where your city or region falls on the relocation spectrum.

 

Start positioning yourself as the local area expert online. That includes not only targeted real estate online classified ads but also answering real estate questions that are asked in your area on online forums.

5. Real Estate - Never Boring

 

This next 2013 trend isn't seasonal, but it's of paramount importance. People, in general, are intrigued by real estate and will be asking you a ton of questions when they find out you are a real estate agent.

 

Getting an online visitor and getting them to become your client isn't easy. That's why, this year you should capitalize on the real estate trends and headlines to Grow your exposure in front of potential real estate leads. Share the headlines in your blogs, tweets, and newsletters with your own local twist. This is a great way to show that you are the area expert.

Everything You Need to Know About Real Estate Agents

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

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

Finding and Hiring Real Estate Agents

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

Working With Real Estate Agents

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

Real Estate Commissions - How They Are Paid

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

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.

Ways Not Lose Money When Selling Your House

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

Higher A Good Listing Agent

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

 

Pricing Your Home Right At The Start Can Save You Money

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

 

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

 

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

 

Preparing Your Home For Sale

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

 

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

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

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

 

Carefully Review Closing Fees During Negotiations

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

 

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

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

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

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

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

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

 

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

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

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

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

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

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.

Do You Need a Deed of Trust With your Plano Real Estate Purchase?

The amount of paperwork a Plano real estate buyer signs at closing is overwhelming to say the very least. Almost all of these documents will be generated by the buyer's mortgage company. Without ever reading them and just signing off on them, it generally takes buyers an hour to complete them. Every blue moon, I attend a closing with buyers who actually take time to read through the closing documents.

Unless you are paying cash or you are in a mortgage state you will be required to sign a Deed of Trust. It doesn’t matter if you are buying a Highland Park Home or Dallas Foreclosure properties the Deed of Trust works exactly the same.

What is a Deed of Trust?

A Deed of Trust is the security instrument for your loan. It is the document that is recorded in the public records and secures a lien for the lender against your property.

A deed of trust contains three parties:

· Trustee, which is an entity that holds "bare or legal" title

· Trustor, which is you, the borrower

· Beneficiary, which is the lender

The deed of trust is a security instrument that identifies the following information:

· Original loan amount

· Legal description of the property being used as security for the mortgage

· The parties to the transaction

· Inception and maturity date of the loan

· Provisions of the mortgage and requirements

· Legal procedures, including acceleration and alienation clauses

· Riders, such as clauses for prepayment penalties

Who or What is a Trustee?

Deeds of trust contain a trustee who is an independent third party that does not represent the borrower, the lender, or the owner.

· The trustee can be a person or an entity that holds the "Power of Sale" in the event of a loan default.

· The trustee also reconveys the property once the deed of trust is paid in full.

· In the event of a default, the trustee files a Notice of Default; however, in most instances, the trustee will substitute another trustee to handle the foreclosure process under a Substitute Trustee.

· After the required period of time in the public records, and the required period of time in the publication period in the newspaper, the trustee then has the power to sell the property without a court procedure or lawsuit.

· In many jurisdictions following recordation of the Notice of Default, the borrower can redeem the property by making up the back payments and paying the trustee's fees.

· Once the trustee sells the property at a Trustee's sale, it is final.

What is a Promissory Note?

Whereas the deed of trust is security of the loan, secured by the property, the promissory note is the evidence of the debt and the promise to pay.

· The promissory note is a promise to pay, signed by the borrower.

· It contains the terms of the loan such as the interest rate and payment terms.

· The promissory note is generally not recorded in the public records.

· When the loan is paid, the promissory note is marked "paid in full" and returned to the borrower.

Before Signing a Promissory Note and Deed of Trust

Read both of these documents thoroughly, including the small printed sections. You should consider asking the closer to send you a copy of the preliminary deed of trust and promissory note beforehand. Because closers are human and make mistakes, here are the important items to review:

· Address of property

· Spelling of trustors' names

· Principal balance of the loan

· Interest rate

· Payment amount

· Prepayment penalties, if applicable