How Much Money Should You Budget To Buy a Home?

You have made the decision to buy a home. Have you truly budgeted to actually afford a new home and have the money to move? When you meet with a loan officer, they will determine how much you can afford based on your credit worthiness. Just because you are approved for a certain dollar amount, does not mean you should buy at the top of your price range. The strategy to determine how much you can afford is to work backwards. Start with things you like to do and start tallying up daily expenses you occur and figure out what you can live without. Then work the other direction from your income and determine what you would be comfortable spending on housing. If you rent now, you are probably comfortable with that monthly expense. Usually home ownership will cost $500 more per month because you will have new expenses that you probably don't have now like taxes and additional insurance. Also factor in new purchases like a refrigerator, washer, dryer, and lawn mower.

 

When you think about purchasing a new home, we often forget about expenses it takes to actually purchase the home. Be prepared to get out your checkbook and write out 5 checks once you have an executed contract.

1. The title/escrow company for the earnest deposit

2. The seller for the option money

3. The inspector

4. The appraiser

5. Cashier's check for the remaining balance of down-payment prior to closing

 

When it comes to buying either Denton County real estate or the much sought after Collin County real estate the first 2 checks you will write will be for the earnest money and the option money. The earnest money is the money you deposit into an escrow account with the title company when you have found the home you want to purchase. The amount of the earnest money is usually around 1% of the purchase price. Treat earnest money as showing good faith to the seller that you have the money to purchase their house. The next check you will have to write is to the seller for an option period. It's usually anywhere from $100-$250 depending on the price of the home. That is the money given to the seller for them to take the house off the market while you get the home inspected. During the option period you decide if you want the home based on the inspections and remember, you can walk away if you don't like the house any reason; the seller keeps the option money.

 

As a buyer of Tarrant County Real Estate treat that money like your down-payment. Your loan officer will tell you how much money to bring to closing. The next check will be for the inspector. The inspector will inspect the house inside and out telling you if there are any major defects with the house. The cost of the inspection can vary based on the size of the house and costs around $400. The next check is for the appraiser. The appraiser works for the bank and will determine if the house is worth what you are purchasing the house for and costs about $400. Lastly, once you have determined you are moving forward with the purchase, you loan officer will tell you the amount of money you will need to bring to closing to make the actual purchase of your home.

Buying a house is exciting, but also scary when it's something new. Your real estate agent will guide you through the process, but it's nice to know ahead of time what to expect and how much you will have to pay during the process, so you can budget and be less stressed during the home buying experience.

~ Jennifer Clark VIP Realty Platinum

Ways to Get Found by Home Sellers

The year is more than halfway over, but there’s enough heat left in the market to make this the year that you take your real estate business to the next level. To do so, you will need to provide great client service and a great lead plan. Before you can put either of those into action, you need to make sure you are getting found by the seller clients that mean the most. A serious seller prospect is one of the most sought after commodities there is. Here are some strategies that can help land you your next listing. Even if you are just looking at DFW real estate careers you will find these ideas helpful in any business.

1. Get Vocal:

Potential home sellers aren’t just looking for signs that you are in the business. They want to know you are an expert in the business. Only having a profile, license, or website is not enough. Sellers want to see your expertise in action. Every day prospects are posing real estate questions that signal they’re serious sellers asking real questions like “Who is a Good Realtor?“.” and “How much should we spend renovating?“ That’s why you should study the neighborhoods you want to grow your business in.

2. Get Focused:

Sellers want to work with the agent they know who knows their market and the places where consumers realize they need an agent are many. Many times it’s an offline experience that makes them go online to find an agent. The reality for agents is that you have to live on multiple platforms. But, multiple platforms certainly doesn’t mean you should have multiple personalities. Having a focused presence online can give the same effect as the 25 yard signs and a billboard offline. I am talking about multiple placements, but only one personality. A good would be those We Buy Houses companies. Here are some target areas to make sure stay consistent everywhere you market:

Specialties – We know you can do it all, but show prospects the ones that reflect the business you’re after.

•             Service Areas – Make sure these are where you actually want to work. Whether it is selling Tarrant County homes or otherwise, you will end up with leads and prospects that ultimately need another agent, one that has expertise in their area.

•             Your Message – If you truly want to take over a neighborhood or niche, being repetitive is the best way to go about it. Research shows that people only retain about 10 percent of what they read and about 30 percent of what they hear. Say it, say it again, and then say it to the same audience some other way.

3. Real Information:

You should never just send a bunch of numbers out and assume your perspective clients will know how to interpret them. The right formula is to offer important data points and helpful analysis. While sharing, marketing, and creating information to generate new business, remember to add some color for your sellers. Don’t just add market data. Think about the key data points that provide key insights that are really going to motivate your sellers to list with you, like

·         Do your listings sell for more than other listings?

•             Do you sell homes faster than other agents?

•             How many transactions have you closed with similar homes?

4. Provide Proof:

Sellers are searchers of information and what they find will make or break your opportunity to list their house. Dollar figures, awards, and client accolades are great resume builders, but the key indicator that matters most to the one client looking for help with that one transaction is: “Can you close my transaction?” You can answer the question before you have your first client meeting.

5 Power Moves to Attract Your Next Sellers

How do most real estate agents ask what does it takes to win seller clients in real estate? The answer usually involves effective marketing, commitment to being the best you can be and confidence in your abilities. But there’s more. To really succeed, you have to be a self motivated self promoter. If you learn to do it right, there are many opportunities to take your business to the next level in your local market to make sure the pool of home sellers never dries up.

Below are five things that you can do right now to connect with your next seller clients.

 

1. Follow up, Follow up, Follow up:

There are too many agents, clients, title officers loan officers, and other partners who wash their hands of one another once a deal is closed until it’s time for the next closing. A great post closing follow up program for our clients goes a long way toward connecting with new clients and developing repeat business. This is at the top of the list when it comes to Dallas real estate careers. Focus on the following points:

 

1. If you really want to be someone’s real estate agent for life take a few minutes to follow up via phone to see how they are enjoying the new home. While talking with them never fail to remind them that you are happy to help any friends or family they know who are looking to sell their homes.

 

Congratulate them on the internet. Buying or selling Plano real estate is big news. You can give them their own headline on social media or your website. Check your seller’s social media comfort level, and if they are savvy and comfortable sharing, doing so is a great way to expand your network.

 

2. Separate yourself from the rest of the pack:

If you can’t answer why you are in real estate, your prospects won’t be able to either. This is what sets you apart from the rest of the agents in your market. Knowing “why” it is critical for creating your niche and becoming a powerful agent. It also makes marketing much easier. When you answer the “why” question, you can make the call on what your ads, billboards and online marketing should say. Don’t just focus on the clients you want. Figure out who is in the clients you already have. Growing an existing audience is much easier than building a new one.

 

3. Sell your success:

It’s easier to convert a potential seller into your client when they’ve seen the proof that you can sell. Make sure your sold listings are seen online by as many people as possible. If you are an expert in selling Dallas foreclosures let everyone know. If you’re not showing your transaction history online, you’re just giving buyers and sellers a reason to pass you up.

 

4. Be careful what you post on the web:

These days a big portion of business comes from social media. Even direct messages and Facebook chats about doing business, eventually most people will end up on your website.

 

Look at your website and online profiles to find out if you are saying the right things. Make sure that the contact forms and buttons aren’t hidden throughout your site A little bit of time spent improving your presence online can go a long way toward bringing in new business.

 

5. Find the next hot real estate niche and market to it now:

When it comes to attracting clients, it’s not always about what happening now. Thinking and being ready for what’s next is one of the best business investments you can make. What are some trends going forward? Multiple offers today means the market’s making way for previously reluctant sellers to jump in.

 

Ask yourself:

•             Who in my market is “not quite ready” to buy or sell? And, why?

•             What’s the biggest trend in the market right now and what’s the inverse?

Finding needs and marketing to those niches has been a great way for us to generate new business both in the short and long term.

 

6. Connect with the busiest real estate agents you know:

In this business, no agent starts out a power agent. If you’re new and/or find your seller pool is starting to dry up, connect with the busiest agent you know and ask about referrals. When we’re busy and can choose which clients we work with, the ones we don’t have time for still need an agent. If you really want to build more business, don’t be afraid to be an understudy for the movers and shakers in your market.  

Getting Your House Ready To Put On The Market

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

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

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

 

 

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

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

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

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

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

 

 

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

Warning - Don’t Take Every That Come your Way

While you want as many listings as possible, sometimes it is best to turn a listing down. Why? To save yourself a big headache and getting a listing that will not sell because at the end of the day, whether true or not, the sellers will blame your for their home not selling.  Fully explore these below challenges with prospective clients, up front.

1. Does the seller even have the authority to sell the property in the first place?

Before you take the listing, make sure you know who the real, legal seller is. To ascertain this, ask:

•             Who is listed on the deed and has the right to execute the listing and sales contract?

•             If a couple is divorcing ask, who is be the legal decision maker? Or if both parties must sign, is there cooperation?

•             If the owner is deceased, what needs to take place in order for you to have a valid listing and sales contract? Is there an executor or family members who will participate? Are there any liens against the property that will prohibit a title transfer?

A seller contracted with an agent selling Collin County homes to list a property after the agent performed due diligence including running preliminary title and tax records search. The deed was held by James Adams and the agent also met his wife and their young child, James Adams, Jr. The agent successfully sold the property. At closing, it came to light that there were three generations of James Adams, and the true owner was the father of the individual who executed the listing contract and sales contract. The true James Adams attended closing to sign the documents, a big surprise of everyone involved in the transaction.

2. Is the property marketable?

Not all property obstacles can be solved by reducing the asking price. Here are some obstacles that can affect marketability and your decision to take the listing or not. If these obstacles cannot be overcome they sellers may find themselves selling to a we buy houses companies.

If sellers insist on having their property listed right-a-way, make sure to think it all the way through. Delaying the date a property is brought to market can allow time to solve challenges. Increased days on market has an inverse relationship with optimal selling price which hurts the seller.

Location and condition challenges outside your expertise:

Some properties, including Denton County homes have obstacles that need to be overcome in order to bring about a successful transaction. Weigh the selling points against the challenges to determine whether or not you are qualified to handle this particular transaction. When making this assessment consider not only the location, but also any needed repairs, zoning restrictions, and any environmental hazards that might derail the sale. If you do your due diligence upfront and find that the property has special needs outside your area of expertise, it is best to advise the owner to find the appropriate experts.

3. Is the seller motivated?

A good way a seller shows that he is motivated is by accepting and working with market conditions. Not only the most common realistic pricing, there are other factors to help determine a seller’s motivation.

·         Is the seller ready to embrace and take action and listen to your advice?

•             What are the showing instructions and flexibility of the sellers? A seller who restricts the availability and demands a long advance notice is telling you their motivation to sell is low.

•             Is the seller open to your suggestions for staging the home?

Should you ever take an overpriced listing?

This depends on other factors of the property owner’s need and desire to sell. If other factors point to selling motivation the price may become flexible with more information. The question really is: Will the seller commit to evaluation of results of showings and competitive homes movement in the market with a price adjustment as a serious consideration? Any of these circumstances are indicators that you should not take a listing.

Jocks and Frisco Real Estate

Many folks choose to live in the city of Frisco, not because it is a great place to live and not because it is the fastest growing city in the U.S. but because it is home to award winning training and coaching and some of the best sports facilities in the Country. It seems everywhere you go in Frisco, a ball is being passed, kicked, caught, smashed or shot. It is a virtual breeding ground for future professional athletes.

According to DFW Realtors with all the home buyers clamoring to buy Frisco real estate home values have been pushing higher for some time now. Frisco city officials say the key is finding a good business partner. There are at least seven sports facilities that have been paid for by a combination of public and private funds. To accomplish that, we knew we had to build world class facilities. We build it and they came. 11,000 kids participate in at least eight different youth sports organizations. That's roughly ten percent of Frisco's population and according to Men's Journal, it gives them a leg up in the highly competitive world of sports.

 

The coach of Wakeland High School should know. His team won the state championship last year. It's no wonder the phone calls come so early."A parent of a 4-year-old kid called to find out if it was too early to start him in competitive soccer. I never really thought about that question because when I was four these types of programs and facilities weren't available.

 

The magazine Men's Journal has had an eye on this City of Collin County. In 2011 the magazine named Frisco one of the Best Places to Live. The City was also named "Best Place To Raise An Athlete." The magazine cited the city's numerous youth programs and its top notch sports facilities. From the Frisco Athletic Center and its adjacent soccer fields to Pizza Hut Park the city owned and operated athletic center, there's no shortage of places to work step up your game.

Trees and DFW Real Estate

A mature tree on your property can account for as much as 10% of its assessed value. With that much at stake you want to sure your trees remain healthy.

Annual Inspecting Your Trees

No one knows your trees better than you do. Just after they leaf out in the early spring walk around and look at your trees from top to bottom and see if you notice any changes in foliage, branches, roots, or the bark. Inspect all sides of the tree and check for peeling bark.

Leaning Trees

Trees growing around DFW homes usually don't grow straight as an arrow and a little bit of a lean is normal. When your tree starts leaning more and more it is dues to poor weight distribution or root damage. This would be a good time to call an arborist. Lookout for these danger signs:

• Exposed roots around the base of the tree.
• Cracked soil, especially on the side opposite the lean.

Cures:

• Prune branches on the leaning side to distribute weight better.
• Brace the tree trunk with cables attached to stakes on the opposite side of the lean. Make sure you pad the tree before placing cables around the bark.

Trees With Multiple Trunks

A tree with multiple trunks, or with splits in one trunk, can be tough to stabilize. Danger signs:

• U-shaped or V-shaped multiple trunks are weak the points for mature trees. The connective wood where the trunks come together may lose strength and be more likely to split.
• Cracks that extend deeply into or through the trunk.

Cures:

If you plan on selling your Plano real estate before you list it you may want to hire a professional arborist can stabilize split trunks by attaching cables between trunks and branches high in the tree. Cables won't repair existing damage, but they will increase its strength and extend the life of your tree. This is dangerous work best left to experts. Arborist generally charge between $500 and $1,800 for this service.

Tress Damage - Construction Destruction

Building construction is tough on trees. Renovating foreclosures by installing a driveway or building on an addition, digging up utility lines puts trees under a lot of stress. Construction can damage shallow feeder roots which can starve and destabilizing trees. Construction equipment can damage tree bark, which can set a tree for disease and infestation.

Danger signs of construction stress:

• Damaged bark
• Reduced, smaller, or no foliage
• Premature fall color

Cures:

Prevention is always your best option. Before beginning construction make sure to set up a barricade around your trees. A good rule of thumb is for each inch in diameter of the tree's trunk, add a foot of protection. If the tree is damaged by construction:

• Prune to reduce weight and remove damaged limbs.
• Install cables or bracing rods.
• Water and aerate compacted soil around the roots.

An Arborist to the Rescue?

If you think your trees are sick they are likely to fall and destroy what's near them including your house. This is a good time to call an arborist. An arborist can help save your tree, or let you know if it's beyond their help. If bacteria or bugs are harming your tree an arborist's inspection can diagnose which disease, trauma, or fungus is the cause. Also, an arborist can determine if your tree is decaying internally, something that may not yet be obvious. Arborists can either fix the problem, or calculate the risk of the tree falling and the likely objects it could damage. Such a calculation will help you decide if it's worth spending money to keep the tree alive and upright, remove the tree, or just let nature take its course let the tree fall on its own.

What About Lightning Risks to Your Trees?

If you live on high ground in your community it will increases your chances of a lightning strike to your trees. If lightning strikes one side of a tree, your tree might close the wound on its own. But if a bolt travels through the trunk, exploding wood and bark and damaging roots, it might be the end of your trees life. To protect you trees from lightning, an arborist can ground a tree with a copper cable system that extends from near the top of major trunks down to copper ground rods.