Is It Better To Buy a Dallas Short Sale or Wait for the Foreclosure?

If you put in an offer to buy a short sales Dallas waiting for an answer from the bank can be long and frustrating. A short sale situation happens when a seller's lender agrees to accept less than what is owed on the mortgage to allow the sale between the seller and buyer to move forward, and banks take a long time to decide. Sometimes short sale buyers wait up to six months or more for a response from the bank. Many times the banks answer is no, and that buyer will have wasted much time.

Short Sale Listing Prices

Buyers often get excited about buying a short sale for two reasons. The list price is very attractive and they believe the seller is desperate and they can get a lowball offer accepted. However, neither of those is necessarily true. Not every short sale is a Dallas foreclosure homes and not every seller is desperate. Many sellers and/or their Professional Dallas Realtors often set the listed price unrealistically low hoping to get an offer on their home quickly.

Is There Such a Thing as Preapproved Short Sales?

Realtors find out how low the bank will go is if an offer has already been accepted and the buyer walks away. Only then is the agent free to market the listing as an accepted short sale because banks almost never disclose their bottom price in advance. With a preapproved short sale, the new buyers' wait is shortened. Generally, about the time the first buyers walk away the sellers' documents have already been submitted to the bank, and the bank may have been close to, or had already, issued a short sale approval letter.

Short Sale Negotiations

The sellers can agree to any purchase offer but it's not binding unless the sellers' bank approves it. It doesn't matter what terms and conditions are in the offer if the bank won't accept them. Your negotiation does not really lie with the seller; it lies with the bank's negotiator. Banks often rely on desktop appraisals or BPOs (broker price opinions) to determine the property’s value. Although banks don't want to follow through on a foreclosure, they also want to get fair market value for the property to lessen their losses. It is up to the listing agent to provide comparable sales and to substantiate the price submitted by the buyer.

Will the Price be Lower After a Foreclosure?

Whether a home buyer should wait for the property to go through foreclosure depends on whether the home has one or more a offers on it. If more than one buyer has submitted an offer, the highest and most qualified offer will most likely get the home. If the buyer is the only buyer to put in an offer and the bank is responding negatively it might be in the buyer's best interest to wait until the home is foreclosed on. There is also no guarantee that a bank won't reject all the offers, particularly if none of them are high enough.

Many times banks aren't reasonable and end up shooting themselves in the foot, so to speak. I've have seen several listings where banks refused to accept short sale offers only to end up with the property through the foreclosure process, which then ultimately sell for tens of thousands less than what they were offered with a short sale offer . Don't get discouraged if the bank rejects or counters your short sale offer. Be calm and be well informed. Eventually the bank will put the home on the open market for sale as an REO (real estate owned). Watch for the property to reappear on the market as a bank owned foreclosure home. If the price is reasonable at this point, buy it from the bank, at the same price you offered with your short sale offer. At least buyers of bank-owned homes are relatively assured their transactions will close within 30-45 days, and most likely at a lower price.

Are You Ready to Make an Offer to Purchase Plano Real Estate?

Making an offer to purchase on Plano real estate and actually closing on that purchase are two different actions, but many times home buyers confuse the two especially when the purchase offer is not the final negotiation due to contract contingencies. In some areas on the East Coast, for example, it is common to write a letter of intent to purchase a home so save a lot of time and frustration. However, many other states contain provisions in their standard sales contracts that let a buyer withdraw their offer and get back their entire earnest money deposit.

Are You Hesitating to Make an Offer?

If the home you are considering buying is likely to sell quickly, and if you have a way to later cancel the contract, you should immediately make the offer. There is no reason for you to wait. Don't sleep on it or try to get every single question answered a head of time or you may lose the home to another buyer. Somebody else could beat you to the draw and steal it out from under your nose while you're busy weighing the pros and cons. This is common place with the sale of popular Highland Park Real Estate. If you really like the home, odds are other home buyers will like it too.

The Reality of Purchase Offers

When a home seller accepts an offer, they are hoping the buyers will complete the transaction at the price agreed upon and believes there is nothing wrong with the condition of their home. The home buyer is hoping the transaction will close because the home is in great condition. It's rare that either of those expectations are the reality. No home is perfect and many conditions can change once a contract is accepted. You should utilize the services of professional DFW Realtors to help avoid issues that could derail the sale or cost you additional money.

· Mortgages can be rejected

· Buyers often submit a repair list.

· Low appraisals can kill the sale.

Types of Homes That Quickly Sell

In a seller’s market, almost every home sells quickly. In a buyers’ market, the sale times will be longer. There are many inherent characteristics and qualities that determine whether homes are likely to sell fast, but these are the top two:

· Cosmetic fixer uppers in good locations and priced below comparable homes.

· Ready to move in homes in great neighborhoods, excellent condition and priced right.

If the home you want to buy falls within those two categories, you should make an offer on it quickly, providing you have cancellation rights. Some Realtors don’t like to waste time writing an offer that a buyer might later cancel and will try to persuade you from making an offer. Some might not even disclose to you that you have a certain number of days to withdraw your offer. Don't hire a Realtor who doesn't have your best interest at heart.

Benefits to Making Immediate Offers

· The obvious reason to make an offer right after you find a home you love is you will prevent anybody else from buying it. When the seller accepts an offer from you, the seller cannot accept another, except a back-up offer, good only if your contract is canceled by you.

· If your offer is first and only offer, you can many times negotiate the price and terms. You can try to make a lowball offer but your negotiation power is minimized if there are other offers.

· Even if other buyers are interested, they will generally back off once the seller accepts an offer, opening the door for your renegotiations.

Cons to Making Immediate Offers to Purchase

· If you're undecided between two homes and go enter into a contract on property 1, property 2 might not be available if you should back out of the first contract.

· Return of an earnest money deposit is not a given. Both parties are required to sign a cancellation agreement. In some States a seller can delay signing for 30 days, without penalty, an authorization to return the good faith deposit.

· Buyers can incur credit report, appraisal and home inspection fees that are non-refundable. Generally, closing cost, escrow and title policy costs are waived upon cancellation.

Given the alternative of losing the home you want it is advantageous to learn from the mistakes of others who have lost opportunities.

Why Sellers Make Full Price Counter Offers

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



Why Sellers Counter Offer at Full Price

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


Buyers' Response to Full-Price Counter Offers

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

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!