When is the Best Time to Buy Plano Real Estate?

When is the best time of the year to buy Plano Real Estate? Every spring, as nature comes back to life real estate signs begin springing up all around town. Soon as the for sale signs hit the front yards of Plano homes for sale, activity starts a bustling in the streets as sellers, buyers and Realtors come out of the cracks. There is nothing like a spring real estate market. Offers pick up as the flowers begin blooming. Everybody would be homeowner wants a great deal, and every seller wants to sell at the highest possible price in the shortest amount of time. At this time of year generally the market is flooded with new inventory. There are more homes on the market in the spring than any other time of the year. There are at least two days of the year that give buyers the best edge. There is one day in the Spring that a buyer will have the edge against all the other buyers. Let’s start with then second best first.


Easter Sunday, Really?

A DFW real estate buyer looking for a fixer upper lucked out last Easter. A home may come on the market at a very attractive price. The buyer immediately viewed the home and wrote a purchase offer. Fortunately, the listing agent was also the seller of the home, so it was very easy to present the offer. The purchase offer was signed and accepted on Easter Sunday because there was no competition. Come the following Monday other offer came in, but it was too late because the seller had already accepted the first offer.


The very best day of the year to buy a home is Christmas Day.

Almost nobody looks at homes on Christmas Day. But buying on Christmas Day can be a smart move. If you scout out the homes on which you'd like to make offers a few days before Christmas, you'll be better positioned. Christmas day can be attractive because you may be the only people looking to buy that day or even the day before or day after. The challenge is many times is getting in to look at the home around or on Christmas. Many people have friends and family over and don’t want to be bothered with a showing. This may not be the case with a Dallas short sale because these folks are often very motivated to get an offer at any time and will do anything to accommodate a showing.

In cases when people are home you can also fare well because:

• Home prices are at a 12-month low in December.
• People are in good moods, celebrating, opening presents, enjoying family.
• People are more inclined to be generous, even if it means coming down on the price.
• Few buyers are out looking at homes during Christmas week, so the chance of multiple offers or any competition is very low.
• If a person has their home on the market on Christmas, they are definitely serious about negotiating and selling that home. You can bet on it. Better yet, why not write an offer?


The key factor is to find a great Plano Realtor who will a) work on Christmas and b) be aggressive enough to work her way into the seller's home without batting an eyelash. Just look. those agents are out there. You never know, a new home could be the best Christmas present you have ever received.

The Drawbacks to Buying Dallas Foreclosures

Dallas Real Estate buyers who are value conscious are lured in by the low listing prices advertised for Dallas foreclosures. They hope to show up at the foreclosure auction and win the lowest bid. Its’ possible, however consider this; many of these houses are not open for inspection prior to purchase. It generally isn’t smart to buy a house that you cannot inspect the interior of. What if there is no interior of the house? If the accepted bid price was low enough to compensate you for the amount of work that might be required to bring the condition of the house back to market standards. Before you rush to buy a Dallas foreclosure, stop to think about the drawbacks and risk if you can't get in the house to inspect it.


Is Someone Still Living at the Property?


If the house is occupied, the successful bidder will typically be responsible for getting the occupants out, who may or may not be the previous owners. They could be relatives or friends of the owners, renters or squatters. You may have to go to court to have them evicted. It may be wise to contact on or the many professional DFW Realtors that have experience in foreclosed properties.

• If you are unfamiliar with eviction processes, you should hire a knowledgeable lawyer to handle it for you.
• Be aware that tenants or previous owners who are sued for eviction sometimes retaliate and damage the property.
• A better solution might be to give the occupants some money to help them relocate and get out of your house.


Non-Owner Occupied Homes

Example: A seller, unaware that his deed of trust contained an "assignment of rents" clause, meaning, the lender has the right to collect the rents if the owner does not make his mortgage payments, stopped paying on his mortgage and didn't care who he rented the property to as long as the tenants paid him. The seller, fully intending to keep the rent money and forget about his mortgage, the seller listed the rental property for sale. His agent made an attempt to gain access to the property. The tenant looked through the door and then slammed it in the agent's face. Just as soon as the for sale sign was installed in the yard, the tenants stopped paying rent. Neither the lender nor the seller could collect any rent money from the tenants. The agent could not show the property. This was a very nasty situation. This does not only happen with Dallas foreclosures it can happen with any tenant occupied DFW real estate.


Condition of Foreclosed Properties

Because these foreclosed properties are purchased "as is" from the lender there is no guarantee or expectation of the properties condition. Sometimes it is possible to inspect these properties prior to making an offer but many times, as in the above example, access is not granted and not possible. When sellers realize they are about to lose their homes through foreclosure, it's not uncommon for them to stop caring about the home and burying their heads in the sand.

• If they are angry or desperate enough, it's possible they might destroy the house or take everything they can take out, out like doors, hot water heaters and bath tubs. An effective way for them to damage the property is to flood it by turning on all the water faucets, plug the drains and leave. Others will smash in walls, and then pull out the copper pipes and wiring to sell as scrap metal.
• Owners will also sell the appliances and kitchen cabinets and anything else that they can.
• Some of these people actually leave their animals behind, locked inside without food or water. These people are the worst of them all.

Buying Dallas foreclosures is not for the faint of heart. It's best handled by the pros and is not recommended for first-time home buyers. But if you are determined to get a good value on one of these foreclosure home do your due diligence and talk to everybody you can to lean the ins and outs of buying foreclosed properties.

Single Women Buy Plano Real Estate Homes, Too!

Single Women Buy Plano Real Estate Homes, Too!

There is a record numbers of single women buying Plano real estate for a home of their own. If you're a single woman who wants to a home owner in Plano the good news is the market is on your side because we are still in a buyer’s market. Before we get into the ins and out of why, always, always, always retain one of many professional Plano Realtors to represent your interest and look out for and protect you. The statistics show that:

• Single women make up one-third of the real estate ownership growth since 1994
• More than one in five home buyers is a single woman.
• Twice as many unmarried women are buying homes than their single men counterparts.


Top Three Reasons Single Women Buy Homes

1. Relocate to be closer to jobs, family, or school.
2. Strong desire to own their own home.
3. They need more space or want to downsize.


Women Who Buy Homes

Women home buyers come from all areas, in all shapes, sizes and ages. They are separated, divorced or never married, widowed; some of them have children, both young and grown, others live with friends or partners and many live alone. Below are a few examples of interesting women home buyers. Women Buyer number 1 in her early 30’s, not married and lived in a rural area and wanted to move into the city to be closer to work and everything else she could possibly need. She was not familiar with any urban neighborhoods but she had a list of what features she wanted in a home. She viewed a dozen homes over the weekend and she wanted to "think it over" and make her decision on Monday. She wanted to buy one of the Highland Park homes she had seen but didn't feel ready at the time. When she was finally ready to move forward, on Monday, unfortunately the home was sold.

On Wednesday, she noticed a price reduction in MLS one another Highland Park homes she liked and she made the offer that same afternoon. It had everything she wanted except it was a bit more expensive. Later, she called her mother to tell her the good news, that she bought a home for $344,000. As it turned out her parents had bought their first home on that same street more than 50 years ago! How's that for a coincidence.

Woman number 2 was in her late 20s, was a divorced mom and a career government worker. For almost a year, she had been receiving property e-mails from me that matched her parameters. She wanted:

• A home close to downtown.
• A single family home.
• Priced under $200k

She called on a Saturday and asked to see a new listing on Main Street. It was perfect for her and a great value for the neighborhood. She quickly tracked down the listing agent and found her at the airport in Mexico, coming home from vacation. She presented the offer right after his plane landed. By mid-afternoon, the Realtor had received six full-priced offers. But hers was already accepted at less than list price because she went the extra mile. Two weeks later, Paula called the Realtor to cancel. She had cold feet but she thought about the other offers and then decided she wanted the house after all, it must be a good deal. Four years later, she still lives in that same home.

The third woman was in her mid 30’s and single. She called about a condo listing, which she found online. Unfortunately, it was already pending closing. I explained to her that she could tour every available condo in that building, and there were 10 for sale. Her needs were very simple:

• No deferred maintenance.
• 1 bedroom condo.
• Bedroom upstairs.
• Less than $150,000.

Because these women were buying in a buyer’s market, I figured that most sellers would agree to sell for about 5% m or so less than list prices, so she toured all the condos above her price point. They determined that she didn't really need a two-story condo when she could buy a one-story on the second floor. A beautiful end unit had been on the market for 6 months, and that seller was likely motivated.

Plano Homes and Price Reductions

Plano home price reductions, price adjustments, price improvements, it doesn't matter what you call it, sellers don’t wants to hear that they may need to lower their price. In slow markets it's not unusual for sellers to put the blame on the real estate agent for their home not selling. They real culprit is that the seller has unrealistic expectations for the price of their Plano real estate. Many times sellers will say, "Why don't do you do more to sell my house?"

Before Reducing Your Listing Price

• Review Your Marketing and Answer The Following Questions

1. How many ads have been are running for your home in the Collin County real estate section?

2. What kind of direct mail campaign has been launched, if any?

3. How many open houses have there been?

4. Does the house show well online, are there a lots of pictures?

5. Is your for sale signage in a good visible location?

6. Do you have a virtual tour?

7. What kind of feedback have you received from DFW Realtors and prospective buyers?

8. Are you offering enough commission to selling agent to make showing your home worth their while?

9. How many showings have you had so far?

• Are You Selling in a Buyer’s Market?

1. When the market is slow, inventory is high and demand falls. If that's the case, and you don’t have to move, maybe you can take your home off the market.

2. It doesn’t make sense to put an overpriced home on the market that is not going to receive any showings.

3. If you're not motivated to sell, you may be better off renting your house or staying put until the market corrects.

Choose the Right Price from the Start

If you're price is too high, you'll need to continually reduce it until your price hits the magic number, and by then buyers will begin wondering:

1. What is wrong with your house?

2. Are you hard to deal with?

3. Are you in a distress situation?

4. How much lower will you go?

The reality of it is that you will end up with less money than you would have if you priced the home properly from the beginning. Ideally, you want one price reduction. Here are guidelines to consider:

• Realize your agent is not your adversary but is on your side; enlist his help.

• Review the pending sales and examine the market history. How many days on market were the homes 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.

• Compare the sold prices with active listings. Are sold prices higher or lower?

• Compare the history on the active listings to determine how many days on market before they were before the prices were reduced.

• 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're really motivated, price it less than anything else on the market.

Is Your Plano Home Price Too Low?

• Even in distressed markets, as home prices are declining, homes that are priced below the average sold prices will receive multiple offers and sell quickly.

• With multiple offers it's common to have price wars among competing buyers, which will generally result in an accepted offer for more than list price.

The Final Word - Every House Will Sell if the Price is Right!

Mortgage Companies and Dallas Foreclosures

Mortgage Companies and Banks own Dallas real estate because they have acquired these properties through the foreclosure process. Properties on the bank's books are called REOs, which stands for "real estate owned." When banks receive property through a Dallas foreclosure, it's because no one bid the minimum amount of the existing mortgages at the courthouse steps. These foreclosures may not seem like a good value, especially if the bank wants to sell these properties for the amount that was owed to the bank by the previous property owner. With all that said, here are at least two reasons why an REO can be a great Dallas home value for you:

If there were two mortgages on the property the second lender may not want to foreclose on the property. If the second lender does not make up the back payments and cost to the first lender and that first lender goes forward with its own foreclosure, the second lender will get wiped out in the foreclosure, a devastating loss to that lender.

The bank does not, and cannot sit on its foreclosed property. Since the bank did not receive its minimum bid from a buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO property for less than what is owed to them just to get that property of its books.

Negotiating for REO Properties

If the DFW home listing is new to the market, it is very likely that the bank will not come off much from its listed price. You will have better negotiating power if you go after properties that have been on the market for more than 30 days. Here are a few more tips:

Many banks will not paying typical closing cost for the property buyers. Some fees such as title policies, county and state fees, are paid by the buyers and not the bank. Banks generally will not pay for termite inspections, repairs or home warranties.

Banks often negotiate bulk-rate discounts with title and escrow companies. If you choose to use the bank's title/escrow company, check the fees of those companies. Typically, fees not paid by the bank but paid by the buyers will be higher because title and escrow companies often make up those discounts by charging the buyers more.

Some banks will not sign a counter offer until all the terms are mutually agreed upon between all the parties verbally.

Expect that the bank will require you to sign its own addendum to your standard purchase contract. Read it thoroughly and ask a real estate attorney for advice if you do not understand everything in it. You can bet the bank's lawyers drew up that addendum, and it's not in your favor.

If the bank won't budge on its price and you receive a rejection, wait 30 days and then resubmit your original offer.

You might wait 10 days, or more, for a response to your offer from the bank: be patient.

The bank may ask for you to submit a loan application to them so they can prequalify you so they will be sure you can close on the property. You will not be obligated to obtain your mortgage from that bank.

If you cannot close by the closing date listed in the contract, the bank may charge you a penalty for each day you don't close pass that date. Make sure you have get a mortgage pre-approval from your own lender before submitting an offer to the bank so you will have assurance that you will receive the financing from your lender without running into unexpected delays.

There are some drawbacks to buying a foreclosure property. In almost every case you will likely be required to buy the property in "as is" condition. You still have the right to make your offer subject to a home inspection though.

It is in your best interest to retain the services of a professional Dallas Realtor to guide you through the ins and outs of the Dallas foreclosure market. The best thing is that you get 100% representation and it cost you nothing because the bank pays the Realtors commission. You Win!

Tips for Buying Your First Plano Home

There are only 5 basic steps to buying your first Plano home.

Hire a Buyer's Agent

It is best to hire a buyer's agent first but if you prefer start looking for Plano homes online or visit open houses first. If you retain a Plano Realtor first it will save you a lot of time and frustration. Your buyer's agent will know and do the following:

•• Agents many times know of new listings coming up that are not yet in the MLS.

•• An agent can send you listings directly from the Realtors MLS that meet all of your search criteria, and you won't waste time looking at listings that are already under contract.

•• You can save your gas and go to view home in your Realtors car and not your own.

•• Some agents will preview homes for you to ensure the homes that they show you meet all of your needs.

•• An agent can usually spot over priced listings and advise you accordingly.

Find the Right Home to Buy

Buying a home can be an overwhelming process and emotionally draining. Finding the right home is not an easy or fast task. Buyers are advised to look at a maximum of 7 homes at a time because any more than that will make your head spin and all of the homes will start blending together. Most buyers do a lot of online research before ever stepping foot in a home. According to the National Association of REALTORS, buyers spend an average of 6 to 8 weeks, trying to figure out where they want to live. But once the community is chosen, most buyers end up buying a home after 2 or 3 home tours.

Get a Mortgage

It's not always necessary to have a approved loan in your back pocket before looking at homes, but it is paramount to get a mortgage pre-approval letter in advance. This way you know for certain how much home to you can afford and it shows the seller that you are a serious, qualified buyer. Many sellers won't look at an offer if the seller doesn't have assurance that the buyer can get a mortgage to buy their home.

FHA financing is becoming more and more prevalent because the minimum down payment requirement is much less than a conventional loan. However, if you are thinking about buying a Plano foreclosures home, for example, buyers with cash or conventional mortgage tend to get priority with REO banks. You can ask your agent for a referral to a mortgage broker or check with your own bank/credit union.

Negotiate Your Home Offer

Plano real estate buyers sometimes make the mistake of comparing the sales price of a home they are interested in to other homes they have seen, active listings. It's a mistake to compare sales prices among homes for sale that have not sold yet. That's because sellers can ask any price they want but it doesn't mean the home will ever sell at that price. An agent can provide comparable sale information and look at pending sales. Comparable sales are similar type homes in the same condition and location that have sold within the past 3 months. Pending sales will become the comparable sales by the time your home closes. In some markets you may have to pay over list price especially if many buyers are going after the same homes. Your agent can give you a price range and help to manage your expectations. A good buyer's agent knows there is always more to an offer than its price, but price is the main factor.

Do a Home Inspection

A home inspection is a contingency in the sales contract. A contingency means that a buyer has the right to cancel the contract for different reason like a low appraisal, financing falling through, etc. You might not want to be locked in to buying a home that has a faulty foundation or other structural problems, for example. When repair items turn up it opens up the door for more negotiations. Maybe you can get the seller to pay for, or give you a credit for, certain repairs. If a home inspection uncovers a major defect you will have the right to back out of the sales contract.

DFW Real Estate – Buying Foreclosures, Short Sales and REO’s

Dallas foreclosures, short sales and REOs are all dangerous animals but they are different from each other. However, they are also similar because without knowledge about how each of them work you could find yourself in dangerous territory and in trouble. As an example, while most short sales are foreclosures, not all foreclosures are short sales. To further complicate things, REOs are not short sales either, but some intended DFW Real Estate short sales can end up as an REO property. Retain the services of a professional Dallas Realtors with experience in these areas to advise you.

What is a Foreclosure Home?

A foreclosure home is when a notice of default has been filed in the public records by the mortgage company. It means the owner has stopped making their mortgage payments and the lender has given notice that unless the payments are brought up to date, it will sell the home at auction to the highest bidder. Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is two or more payments in arrears. If the home owner does not bring the mortgage current, the lender will file to take the property away from them.

Not all homes that fall into foreclosure go to public auction because owners have the right to make up back payments up to a certain point; this time varies from state to state. Real estate investors and home buyers see profit in buying foreclosed homes because they can often buy the property for the amount owed on the mortgage, picking up the home owner's equity for free. Even high end areas like Highland Park homes are not exempt from foreclosures, short sales and REO’s.

What is a Dallas Short Sale Property?

A short sale generally occurs when a home owner is in foreclosure but before the property goes to public auction. With a short sale, a lender must agree to accept less than the amount that is owed on the mortgage balance. Unlike with a foreclosure, investors generally buy the home for even less because investors are not paying off the existing mortgage and they aren’t making up the back payments. Investors attempting to make a deal with the existing mortgage company to take less than what the lender was originally due in order to avoid dealing with the time and expense of a foreclosure.

It's a myth that mortgage companies are not going to accept an offer from an investor unless the seller has fallen behind on their obligation to make timely mortgage payments. Sellers don't need to be in default for a short sale to occur. For a buyer who wants to live in the home, buying a short sale makes financial sense but the short sale time line may pose a challenge for some.

What are REO Propertied - Real Estate Owned?

• Buying an REO is similar to buying a short sale except the property is already owned by the mortgage company.

• The property was acquired by the lender through a foreclosure action where no one bid higher than the amount owed on the mortgage.

• Many time lenders will sell repossessed homes for less than the past mortgage balance to get them off their books.

• Bank-owned properties are called REOs, meaning “real estate owned” by the lender.

Mortgage companies end up owning the property when no one at the foreclosure auction bid high enough to cover the amount owed against the property. REO homes are often considered one of the best ways to buy a distressed property. This is because the seller is already out of the home and of the picture. It's just the investor or person wanting to live in the home, the real estate agent, the bank and the bank's asset manager who are negotiating the transaction.