The Worst DFW Real Estate Selling Mistakes You Can Make

There are a hand full of serious DFW home selling mistakes that I see time and time again.
We Want to List it High, They Can Always Offer Less
When many DFW home sellers interview Realtors it is easy for them to get caught up in the excitement of choosing a listing price. The higher their sell their DFW homes for the more money they make the more financial opportunities they will have. With all this maybe the seller can afford to buy a more expensive home, pay for a child’s college education or take that much overdue vacation. Unfortunately, many uninformed sellers often choose the listing agent who suggests the highest list price, which is the absolute worst mistake a seller can make. If they do this they will ultimately pay for it in money, time and frustration.
Establishing a Homes Value
The cold hard truth is that it doesn't matter how much you think your home is worth. For that matter, it doesn’t matter what your Realtor “thinks” it worth (assuming your home is in Plano). The person whose opinion matters is the buyer who makes an offer. Determining the value of a DFW home is part art and part science. It involves comparing similar properties in the Plano MLS, making adjustments for the differences between them, tracking market changes and accounting for the stock of present inventory. This will help to determine a range of value. This is the same method an appraiser evaluates a home. And no two appraisals ever exactly the same. In most cases however, they are generally close to each other. There is no hard and fast price tag to put on your home. It's only an educated guess; the market will dictate the price.
Is There a Price That is to Low?
All homes sell at the price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to fair market value. Because of this there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your Realtor solely on opinion of value.
How Things Start To Go Wrong
The seller of a DFW Home didn't even interview her Realtors. She picked the first one off the Internet because, "She looked smart." She priced her home at $275,000. This Realtor never heard the local Realtors laughing behind his back because he worked in a different area of the city. After 90 days, the listing expired.
Continues To Go Wrong
The next Realtor, also from another part of the city, listed the home at $265,000. A few more months passed. Eventually the price dropped to just under $250,000. Still no sale. Remember this Realtor was chosen by the seller on a whim.
More Than a Year Later
By the time the last Realtor was hired to list the home, the seller had grown frustrated and exhausted. Together, the seller and her agent priced the home at $225,000. It immediately sold. The sad part is the comparable sales in the neighborhood fully justified a price of $250,000, but the home had been on the market for too long at the wrong price, and now her listing was stale.
Agents Specialize in Expired Listings
I know a Realtors whose real estate business is totally based on contacting sellers of expired listings and relisting them at the correct. Don’t end up in a position where these specialist are contacting you. Worse yet, take action quickly so that you do not become one of those many Dallas foreclosures.
How much money does an expired listings cost a seller? The financial loss often exceeds the extra mortgage payments paid and goes beyond the uncompensated hassle factor of trying to keep a home spotless during showings. It affects the value that a buyer ultimately chooses to pay because it's a stale, dated, a market-worn home that was overpriced for too long. Don't let this happen to you. Higher the right Realtor and list at the right price from the beginning and your house will sell.

Dallas Real Estate – Low Ball Offers

Dallas real estate buyers who are in a position to invest in a home in this buyers market are in the advantageous position of being more likely to get there low ball offer accepted. But whether the market is a buyer’s market, a seller market or some in between, lowball offers can result in big savings to a buyer if they are presented and negotiated properly. Let's take look at what NOT do when making a lowball offer:
Common Mistakes Made by Lowball Buyers
• Unqualified to Pay More. Don't tell the seller your price is fair because that's how much the lender has qualified you to buy. Sellers don't care what you can or cannot afford to buy. If you can't afford to buy the house, that's not the seller's problem; it's yours.
• I’m Paying Cash so my Offer is Better. It's all cash to the seller in the end. Most buyers don't seem to realize that. If a property will appraise at selling price and the buyer's credit is acceptable, a conventional loan transaction will close just the same as a cash deal. Consider it a wash. One of the main advantage to offering cash for a home though, is that it removes the financing contingency, the right for a buyer to walk away if a loan isn't approved. But most loan contingencies follow the same number of days as other contingencies. It's not really a big selling point.
• Walking Away. Some buyers get all bent out of shape and walk away from their Dallas real estate transaction when the seller counters their offer at more than the buyer was prepared to pay. Maybe the counter was the list price. Maybe less. It really doesn't matter that much. The point is the doors of negotiations have opened up.
Strategies for Getting the Lowball Offer Submitted
• Find out the Seller's Motivation. If you don't know why the property is being sold, you will need to find out what the seller’s needs are or won’t close the deal.
• Write a Straight Forward Offer. Dot T's and cross I's. Shorten inspection and option periods, waive reduce or some contingencies and submit proof of funds of a pre-approval letter from a lender. Don't give the listing agent a reason to question your ability to close. Appear decisive, qualified and ready to close.
• Always Counter the Counter Offer. It goes without saying that the first counter is only an invitation for the buyer to offer a second counter offer.
• Take Attention Away From Price. There are many other considerations than the sales price. It's a good move to change tactics and ask for other concessions such as seller paid closing cost, repair credits, longer escrow periods, etc.
• Give a Logical Reason Why Your Lowball Offer is Fair. Don't insult the Realtor by handing over a list of comparable sales from the DFW MLS. Show them that you have done your due diligence. Make notes on each sale that compares it to the property that you are making an offer on. Maybe the higher priced homes had remodeled kitchens or bathrooms. If the home you want to buy is not updated, then knock off a reasonable figure reflecting the remodeling work from the seller's list price.
When Your Lowball Offer is Rejected
Don't pack up and go home with your tail between your legs. Just be patient and wait. Sellers have their reasons for rejecting offers. Maybe you made an offer on a new listing, when the seller thinks that a really great offer is just around the corner. Let them sit out on the market for awhile. After a month or two has gone by, resubmit your same offer. Just cross off the date, but leave enough of it so the seller can see how long it's been since you last made an offer. Then write in the new date and resubmit. Will a low ball tactic work for you? In most cases no but if you have the time and patience you can find a great value in a Dallas home that meets all your needs.

Pending DFW Real Estate Going Back on the Market

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

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

11 Steps Away From Owning a DFW Home (Part 1)

A Step By Step Guide at buying a DFW Home
Progressing through a DFW home buying transaction can be a challenge but there are many home buying steps that once understood will get you to meeting your goal of owning a DFW home. You'll feel more confident about your home buying journey when you understand what is required of you and everyone else who is involved in your home buying transaction. This guide will take you through the steps and show you that you are only 11 steps away from buying the home that is just right for you.

Step 1, Get Your Finances in Order
Your credit report is a mirror as to how you manage your finances. You need to know exactly what is on your credit report and what it says about your financial history. Do this before you apply for a mortgage because your credit report will play an important role in your mortgage approval process and will determine the interest rate and terms that a lender offers you. If you haven't looked at your credit report recently, or at all, you may be surprised at what’s in it and because mistakes are common.

Step 2, Learn About the Mortgage Industry
Finding the right mortgage and mortgage company is paramount to your home buying success. It's up to you to determine which lender is best suited for your needs, and it's always a good idea to have some background information about the loan process before you talk to a lender.

Step 3, Get Pre-Approved for a Mortgage
If you haven’t talked to a lender you probably don’t know how much home you can afford. A mortgage pre-approval helps you in other ways. In this day and age most sellers won’t take your offer to buy their home seriously if you don’t provide them with a mortgage pre-approval letter showing them that you are actually qualified to buy their home.

Step 4, Determine Your Wants and Needs
Before going out to look at homes take a little time to determine your needs, wants and even your dream items. If having the master bedroom on the first level is a need or want, or, if you want to be is a certain school district there is no sense in wasting time looking at homes that don’t meet these criteria. Take some time to learn the DFW real estate market to save you time and frustration.

Step 5, Work with a DFW Realtor
DFW Realtors represent buyers, sellers and sometimes both. It's imperative to understand Realtors duties and loyalties before you make that first phone call. Having a professional Realtor on your side who has experience, knowledge of your local market and access to the MLS is imperative to your goal of buying a home.

Step 6-11 to follow:
It’s always a great time to buy DFW real estate. This is true in most all cases when you know you will be staying in your DFW home for three years or more. It is generally better to buy less home in a nicer area than the other way around. Homes in the nicer areas tend to hole their value and appreciate more. Stay away from areas that have a lot of Dallas foreclosure homes. This will surely have a negative impact on the value of your home. Use a professorial DFW Realtor who has access to the powerful DFW MLS to find you the best values in your chose area.

11 Steps Away From Owning a DFW Home (Part 2)

Step 6, Searching for your Home
Your DFW Realtor will give you a MLS printout of home listings to review. You will probably also find yourself picking up home sales magazines and reading classified ads in your local newspapers. And you know you will be spending a lot of time surfing the Internet for homes. You might even find yourself driving around preview neighborhoods. Those are all excellent ways to see what's available for you to choose from. Here are some great tools to help you narrow your home buying search.

Step 7, Take Care of Pre-Offer Tasks
Deciding whether or not you want to buy a home involves looking at its floor plan and features, but there are many other items that are every bit as important to your home purchase. Here are a few topics you should explore before you make your offer.

Step 8, Make the Offer
There's no one set of instructions or rules that can cover all the differences in real estate laws and customs that exist throughout the country, so they depend greatly on your market place. However, there are some home buying tips that can help you make a clean, straight forward offer.

Step 9, Inspections
In some states, home inspections are completed before the final purchase contract is executed. In other states, inspections don’t take place until after an offer is finalized. No matter when you do them, make sure you do them. This will ensure you are purchasing a sound, safe home.

Step 10, Handling the Last Minute Problems
As your closing date approaches, make sure your Realtor checks with everyone involved in your real estate transaction to check its progress, because staying on top of things means you'll know immediately if there's a challenge that needs to be handled.

Step 11, Closing
With most of your home buying problems behind you you're on your way to the closing table. At closing ownership or the property will transfers from the old owners to you. Congratulations!
The DFW real estate buying steps outlined in this article are general home buying tips. You will encounter issues specific to your Dallas Real Estate transaction. These issues can best be explained by your local real estate agent, your lender, your attorney, and your closing agent. If you are buying a Dallas foreclosure home the steps to closing are substantially the same. Don’t hesitate to ask a lot of questions. Ask as many questions as necessary to help you understand the entire home buying process.

Should You Buy or Rent a Plano Home

Here are some ways to tell if renting or buying may be best for you.

Bad Credit – Good Credit
How does your credit score look? If your FICO score is below 620, you're not going to get the best interest rates for a mortgage, in fact, a low score could put you into the hands of a sub-prime lender with higher rates and fees.
• You can order your free credit report from all three major credit bureaus.
• If you want to buy a home and you have bad credit, you should work on repairing it before applying for a mortgage.
• Four late payments may be enough to disqualify you from obtaining a home mortgage.

High Debt Ratios
Lenders consider two types of ratios: front end and back end ratios. Your front end ratio is your mortgage payment, plus taxes and insurance divided by your monthly salary. Your back end ratios add your monthly debt payments to your PITI payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for a mortgage.
Relocation - Job Instability
Is your job secure, how secure?
• Is Your Job in Jeopardy?
Is your company laying people off? Could you be let go and, if so, how hard would it be for you to get another job, making the same money, quickly?
• Relocation.
Are you likely to be transferred to another area within the next couple of years? If you had to sell your home due to a job transfer will your home appreciate at least 10% to cover the cost of selling; if not, you would lose money on the sale.

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

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

New Housing Survey and Dallas Real Estate

Fannie Mae has posted results of its second survey this year on people’s attitudes and views towards housing. The wide-ranging survey polled renters and homeowners between June 2010 and July 2010 to evaluate their assurance in homeownership as an investment, views on the U.S. housing finance system, overall confidence in the economy, and the current state of their household finances.

The results are compared to a similar survey conducted by Fannie Mae from December 2009 to January 2010 and posted in April 2010, and a similar survey conducted in 2003.

The survey found that Americans have a mixed outlook for housing; they believe that the housing market is declining, but they are more wary about owning a home.

• Nearly half (47 percent) think that home prices will remain steady over the next year while nearly one-third (31 percent) think prices will go up.

• 70 percent think this is a good time to buy a house, compared with 64 percent in a similar survey that Fannie Mae conducted last January. But 33 percent said they would be more likely to rent their next home if they were to move -- up from 30 percent in the January survey.

• A great part of those surveyed (67 percent) continue to believe that housing is a safe investment. That number, however, is down by 16 percentage points from a similar survey that Fannie Mae conducted seven years ago. The current survey finds that more than 70 percent believe it will be harder for their children to buy a home, up three points since January.

These findings indicate the return of a more balanced and realistic approach to housing. This approach may weigh on the housing recovery in the near-term, but over time, it should help to build a stronger and healthier market focused on sustainable homeownership.

With this survey, I do want to point out that the DFW real estate market has remained strong even when you factor in the Dallas Foreclosure rates.