Dallas Appraiser L.L.C. wants your help and commentary on our Real Estate Blog
Texas Real Estate Auction
by Dallas Appraiser L.L.C. on 08/21/14
Title:
Texas Real Estate Auction
Word Count:
535
Summary:
Auctions have been around for a long period of time and they are steadily gaining in popularity as the way to buy and sell property effectively over the Internet. The majority of people attending a Texas Real Estate Auction are the ones building up a property portfolio but there are also many people seeking out their dream house.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Auctions have been around for a long period of time and they are steadily gaining in popularity as the way to buy and sell property effectively over the Internet. The majority of people attending a Texas Real Estate Auction are the ones building up a property portfolio but there are also many people seeking out their dream house.
Texas is one of the most populous states and has more than 478 cities and towns and people here in towns and cities look for the investment options and participate in online or offline auctions.
The online Texas Real Estate Auction provides a new and unique system that allows prospective buyers to view properties and bid online for any property offered. There are lot of advantages to an Texas Real Estate Auction among which are included: feasibility, better prices and quick sales. With online auctions, you can purchase the desired property from the comfort of your own home. Also, you can buy properties below market value and make a fast sale as everybody interacts over the Internet.
The online Texas Real Estate Auction opens up a favorable condition for the buyer and it gives him the opportunity to search for his needs and select the best option. For the seller, it gives a chance for many sales channels and generate interest in his property.
Real estate differs from one state to the next. When buying real estate in Texas you should know the laws and rules that will effect you. Some things, however, are universal and apply to anyone buying real estate anywhere. These things are also important to know before getting into a real estate transaction.
Understanding the rules of a Texas Real Estate Auction is vital to winning the bid and saving some money. Sellers should also play their part and answer any given questions correctly and truthfully. In their answers, it is important to not give long descriptions; on the contrary, they should be short and concise.
In the state of Texas, you will find a number of auctions take place annually and the owners of the property are able to sell their property at much higher price on some of the occasions. Therefore if you think that your property is at the prime location in one of the town or city or even in rural area, you can take help of one of the auctioneers in Texas and offer the property for sale. Most of the time Texas real estate auctions are able to attract large number of bidders and you can expect the best price of real estate in one of the auction.
There are two relationships between buyers and agents in Texas, Buyers Agents and Transactional Brokers. A buyers agent is a representative of the buyer. The buyers agent is required to look for the best interests of the buyer. They must tell the buyers everything about the real estate transaction and follow any direction of the buyer. A transactional buyer does not represent the buyer. They are there to sell real estate. They are not required to tell the buyer everything about the transaction. For specific information regarding a buyers rights in Texas you should contact the Texas Real Estate Commission.
Getting comfortable with hard money investing
by Dallas Appraiser L.L.C. on 08/21/14
Title:
Getting comfortable with hard money investing
Word Count:
343
Summary:
Many real estate investors overlook hard money loans as a strategy for acquiring property. That's because these loans are typically used by desperate property owners looking for a way out of the real estate market, rather than into it. But hard money can work for anyone, and it can be particularly useful if you're a new investor looking to build your portfolio quickly.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Many real estate investors overlook hard money loans as a strategy for acquiring property. That's because these loans are typically used by desperate property owners looking for a way out of the real estate market, rather than into it. But hard money can work for anyone, and it can be particularly useful if you're a new investor looking to build your portfolio quickly.
Hard money loans can generally be described as high interest loans available to borrowers with any credit rating, as long as they can can provide solid collateral - usually equity in real estate, such as a home. These loans are almost never issued by banks or deposit institutions, but rather by private lenders who specialize in short term lending at high interest.
Normally a home owner in need of a big loan would apply for a second mortgage, using real estate equity as collateral, but bad credit can make things difficult here. If a home owner has missed a few mortgage payments, the banks may refuse to provide more financing - hard money might be the only option in this case.
The limit for hard money loans typically hover at about 60 to 70 per cent of a property's quick sale value, defined as the price a lender could reasonably expect to realize if the borrower defaulted on the loan, and the property was liquidated fast. The interest rate for a hard money loan is usually in the 15 to 25 per cent range.
Investors can take out hard money loans to buy a property, as long as they provide acceptable collateral - in this case it could even be the property they're buying. The strategy here is to find a pre-foreclosure property, or any real estate with an owner prepared to sell below below market value as long as the sale is fast. If the investor can re-sell the property at full market value, before too much interest is paid on the hard money loan, he or she can make a significant profit. Hard money loans have helped many successful investors get started in real estate.
The All Important Real Estate Document
by Dallas Appraiser L.L.C. on 08/20/14
Title:
The All Important Real Estate Document
Word Count:
507
Summary:
Selling or purchasing a piece of real estate, be it a house, condominium, or an apartment, is probably one of the most important financial transactions a person will conduct in his lifetime. This single purchase is bound to affect the lifestyles of several people for years to come.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Selling or purchasing a piece of real estate, be it a house, condominium, or an apartment, is probably one of the most important financial transactions a person will conduct in his lifetime. This single purchase is bound to affect the lifestyles of several people for years to come.
Due to the long-term effect a single real estate transaction may have on the buyer and the seller, it is important that all the details pertaining to this transaction be formalized. It is not enough that the dimensions of the land, the purchase price and equipment included in the sale are listed down; the individual obligations of both the seller and the buyer should be itemized as well. All these details should be found in just one document, the Real Estate Sales Agreement.
Legally, a real estate sales agreement is a contract between both the buyer and the seller. This document stipulates all the conditions of the sale, from the technical details of the property, to the chattels that will be thrown in. The agreed upon purchase price should be stated (in words and numerical figures), as well the deposit (earnest money) given, down payment and final remittance. Exact details on how and when the monies will change hands should also be indicated in this document. The real estate sales agreement is considered valid once both parties affix their respective signatures and, should there be a need to include any changes, these should be attached to the main document, as an addendum.
Normally, real estate sales agreements are formulated by real estate agents and / or lawyers. However, a lot of home sellers and home buyers nowadays opt to compose the sales agreements on their own. There are various real estate related websites where one can view, download and even customize all kinds of forms, including the immensely important real estate sales agreement, needed to complete and legalize any real estate transaction.
Online real estate forms can be purchased and downloaded by piece (as needed) or by bulk, the option really depends on the user and payment is also done online, as these sites accept most major credit cards. Once the forms have been downloaded, the contents can be modified and edited to suit and conform to the specific requirements of the user.
In terms of content and format, all the forms found on these real estate websites, most especially the real estate sales agreement, are considered legal and are recognized by local, state and federal agencies. However, even though the developers took great pains to verify the accuracy of their forms, it is still recommended that before the final copy is signed, a rough draft be sent to a lawyer or a real estate agent for their review. Since, the real estate sales agreement is probably the most important of all real estate documents; it is of utmost importance that all the technical information stated is accurate, and that all the necessary conditions and clauses, particularly the terms of payment and possible penalties for non-payment are also clearly outlined.
The 10 Costliest Landlord Mistakes
by Dallas Appraiser L.L.C. on 08/20/14
Title:
The 10 Costliest Landlord Mistakes
Word Count:
1407
Summary:
Classic business philosophy teaches that a great part of survival and subsequent success lies in an operation's ability to reduce mistakes. The cost or repairing the mistakes is inversely proportional to the amount of profit potential of the operation. In other words, "Mistakes Kill the Profit Margin" As landlord's, we don't want to do damage to the precious profit margin we fought so hard to nurture. A landlord's profit margin struggles every day to survive, grow and flourish in a sea of predators, competitors and government regulators. Below are the top 10 threats to you thriving profit margin.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Classic business philosophy teaches that a great part of survival and subsequent success lies in an operation's ability to reduce mistakes. The cost or repairing the mistakes is inversely proportional to the amount of profit potential of the operation. In other words..."Mistakes Kill the Profit Margin!!!!!"
As landlord's, we don't want to do damage to the precious profit margin we fought so hard to nurture. A landlord's profit margin struggles every day to survive, grow and flourish in a sea of predators, competitors and government regulators. Below are the top 10 threats to you thriving profit margin.
1-Poor Screening
The costliest mistake is accepting a new tenant without properly screening. An undesirable tenant will often have a poor rental and financial histories. Landlords should review previous landlord relations, credit reports, courthouse records and income. It is probable that if they have not met their obligations with previous landlords, then chances are that they will repeat their behavior with new landlords. Many landlords have faced horrific situations where tenants have stopped paying rent while employing legal maneuvering to avoid eviction. Others have faced tenants who moved in and initiated criminal activity, which adversely affected other tenants and neighbors. Either of these scenarios translates into expensive ordeals where the measures of rectifying the situation can threaten the financial stability of the landlord.
A thorough screening also involves verifying that the person who is applying is the same person that submits credit/criminal info for screening. A picture I.D. should be cross-referenced with the application. Landlords must make sure that there are no omissions, inaccuracies or inconsistency in the actual application. Due diligence will certainly save landlords much money and stress.
2-Lease Preparation
Having a poorly prepared lease is very costly because it is the document that legally binds the landlord to the tenant. It is the rules of the relationship that dictate conflict resolution, financial responsibility and terms of execution. With out a professionally prepared lease the landlord stands to forfeit many of the rights afforded to the owners of the property. Landlords need to employ leases that are designed to protect them and their property and not the other way around. Many generic leases do not take into account the values of the landlord. Therefore, a custom lease would assure the landlord that their interests are protected.
Many times landlords receive requests for agreements after the lease has been signed. Landlords will use their best judgment when deciding to agree to a proposal but must never neglect to put the agreement on paper. A verbal agreement is always vulnerable to a false interpretation by the tenant.
3-Rent Collections
Landlords must always enforce the terms of rent payment as it is written in the lease including late payments and fees. If not enforced, the landlord runs the risk of creating a dangerous precedent that will certainly cost the landlord dearly. If a tenant fails to pay rent for two weeks, then legal notices and actions must be initiated as soon as the law allows. Landlords should not accept partial payments. The courts interpret receiving partial payments from tenants as an acceptance of terms by the landlord. The eviction process is subsequently terminated for that rental period while landlord's costs increase.
If a tenant has had a poor history of paying rent on time, a landlord should consider not renewing the lease. Being late consistently is a sign of financial trouble and future uncertainty for the landlord. Poor payment habits can be a precursor to bankruptcy or evictions.
4-Law and Regulation Ignorance
Many landlords get into rental business with out learning the rules of the game. To get a perspective of the folly of not knowing the rule, Imagine trying to play basketball with out knowledge of the rules. You would become paralyzed from the constant rule infractions. It would be impossible to win. Translated to the rental business: Knowledge of the Laws and regulations can make the difference between a profitable venture and a loser.
Landlords must familiarize themselves with the states' Landlord/Tenant Act. Every state has different laws, therefore due diligence must be taken by landlords to educate themselves. Landlords must also take the initiative to draw upon with the experiences of other landlords. Many landlord advocacy groups exist in most communities and the Internet.
Finally, it encouraged for landlords to develop a relationship with a real estate attorney that specializes in the rental industry. Having a knowledgeable supporter on your side can relieve a lot of uncertainty. A landlord must never wait to the last minute to develop a relationship with an attorney because the requirement of immediate response will prove to be costly.
5-Poor Response to Service Requests-
The number one reason that tenants do not renew their leases is poor response and execution for service requests from the landlord. Tenants expect a constant inspection, repair, and preservation of the general conditions of their rental home. This also includes a timely repair or replacement of parts for appliances. Everything has to be in working order and problems must be addressed quickly and courteously. Everything has to be in working order and problems must be addressed quickly and courteously. To facilitate an efficient delivery of maintenance requests, the property manager's best method of receiving these requests is actually answering the telephone. When the manager is too busy to actually answer the phone or the request comes at an odd hour, many properties utilize apartment call centers. This resource allows properties to always have a human responding to the needs of their tenants. The apartment call centers are industry specific and have a direct, open communication with the maintenance and property management. Maintenance requests should be supported by a shared calendar that documents the request cycle: creation, delivery, execution, completion and follow-up. Maintenance requests, if implemented properly, should be a team effort that will lessen and distribute workload through the property staff.
6-Not Employing Good Customer Service
Running a rental business is just like any other business in the sense with respect to employing good customer service. Many landlords forget that they would not be in business if it weren't for the customer. Practicing good customer service not only reduces tenant turnover, it also is one of the primary forms of marketing. Word of mouth advertising is the time tested, most effective way to promote any business. In the long run, a positive approach to communicating with your tenants will reflect in the profitability and value of a property. On the other hand, poor customer service will take a toll on the general conditions of the property. Tenants will not respect the property by not cleaning up after themselves or not following the property's rules and regulations. Therefore, poor customer service may result in high turnover, high vacancies, higher operational costs and lower profits.
7-Not paying taxes
Many landlords do not have their rental income as their primary source of income and neglect to report their income to the government. Others fail to pay property taxes because they don't reside in the property. Failing to declare income and ignoring property taxes can cause very expensive recovery efforts. The government will assess taxes, add fees, add penalties and assign interest. Other costs will come from attorney fees, added accountant charges and personal time. In extreme cases, landlords may get their property confiscated.
8-Not waiting for the funds to clear
In a rush to fill the occupancy, many landlords make the mistake of allowing the tenants to move in before the funds are cleared. The scenario of tenants moving into a property too soon has caused numerous headaches for landlords having to initiate eviction procedures without ever collecting any rent or deposit. Always ask for money orders and certified checks or simply wait for the funds to clear the bank.
9-Not conducting a detailed premove-in inspection
Neglecting to have the tenants complete a premove-in inspection can result in damages to a property that cannot be documented by the landlord. Payment for rent must not be accepted until this inspection is completed.
10-Not keeping a professional landlord/tenant relationship
Landlords must always uphold a professional relationship with tenants to avoid the pitfalls of not employing the codes of conduct that are based on the stipulations outlined in the lease. The professional relationship is based on the landlord realizing profits from the rental business. Changing the nature of the business relationship threatens the ability for the landlord to collect rent.
The "REAL" Real Estate Roller Coaster
by Dallas Appraiser L.L.C. on 08/20/14
Title:
The "REAL" Real Estate Roller Coaster
Word Count:
957
Summary:
Buying a home is a process fraught with emotional ups and downs. For most people, it'll will be the most expensive and involved purchase they ever make. On top of the indisputable importance of this purchase, is the indisputable lack of time one has to make a decision before purchasing a home.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Buying a home is a process fraught with emotional ups and downs. For most people, it'll will be the most expensive and involved purchase they ever make. On top of the indisputable importance of this purchase, is the indisputable lack of time one has to make a decision before purchasing a home. The average amount of time a potential homebuyer spends looking at a prospective home is 96 minutes! For a home that you may spend the next ten to twenty years living in, well, an hour and a half seems like an un-justly short amount of time to make such a drastic decision. This "hot" decision making environment, where the pressure is on, is one of the key aspects of buyer's emotional stress. But, the fact is, good homes sell fast, and buyers have to be ready to commit to a purchase in a short time. This being said, the "sure fire" way to make a good decision in a such a short period of time, is to learn to become a smart, analytical shopper. Not that emotions need to go entirely by the way side- but you must know when emotions are playing into your decision making process, what is at the core of those emotions and whether or not they are helpful to your process. Be your psychologist, and the sooner you'll get off the doctor's couch and into a new home!
One approach to help mitigate the emotional roller coaster of the buying process is to truly set out your specific priorities in terms of what you want and need in your new home. Ask yourself, " In order of importance, what are the most important elements for my/.our new home?" Proximity to schools, the location of the neighborhood, commuting distance, property taxes, energy efficiency, shopping accessibility, and recreational facilities are just a few of the considerations a buyer should prioritize beforehand. If purchasing with a spouse or partner, you may discover your priorities are slightly or even greatly different. It is very important that you spend the time to make concessions and get on the same page as best you can.
Other aspects of your priority list may include the type of home you are looking for. These parameters could involve the size of the home or a particular style of home. If you're set on a particular style of home, this may effect the neighborhood parameter of your search, as not all houses of certain types are in every neighborhood. So, as you see, one way to help curb emotional reactions, is to make sure you know what you're looking for, and in doing so narrow your search. This way, what you'll be looking at will be within the list of parameters you set out in your priorities. You can then rank homes based on how well they fit into your priority system. Of course, there will be concession to be made here, as it may not be that a home fits your every single priority in exact order- but at least you've done some good analytical homework in advance and have a system for ranking your prospects.
Another tip for dealing with emotions, is to catch yourself when you are honing in on one particular feature of a home, as the "dream feature" of the home. A "dream home", should be so, because it satisfies those myriad components (priorities) that create "your dream of your home". You may want to check in and ask yourself if your being clouded by one enticing feature and have lost touch with your list of priorities.
Another dangerous aspect of buying a home based on your "gut" feeling, is that your guttural instinct may be good for you, but not so great for re-sale. It is, in almost all cases, very important that you consider the potential re-sale value of your home as one of your top priorities. You don't want to be stuck with a "dream home" that turns out to be everybody else's nightmare. The investment aspect of purchasing a home, lies in it's re-sale value. Now, this doesn't mean you have to buy in a well-established, totally investment-proof neighborhood. You may have done your homework and feel confident in buying in a neighborhood that has great potential for five to ten years down the line. Likewise, the home you are investing in may need improvements that you have the funds and/or the expertise to accomplish. But, you must at least consider the re-sale value of your potential home. Otherwise, you could be investing in a money pit, that you'll never be able to get off your hands.
Keep in mind, smart sellers are bound to know the realm of buyers emotions, and will appeal to your weaknesses. Keep critical eye sharp, especially when a home seems to smell of professional home staging. It's not that home staging is trickery, or dishonest, but you might need to work extra hard to look beyond the beautiful and well-appointed furniture and the incredible artwork and the enticing smell of apple pie- as none of the above are included in your purchase. Just make sure you look at the house itself and not it's decor, set-up- and, DON'T EAT THE PIE!
If all these steps have been taken, you've approached the searching process having analyzed and prioritized your wants and needs, and you've considered the re-sale potential of the properties, then you can allow your emotions to guide you somewhat. Perhaps you've been lucky enough and smart enough to mine out two potential properties that both fit your priorities and parameters, at this point, a bit of the old gut instinct can refine your process and actually help, and not hinder the decision making process.
Urgent: Updated Fannie Mae Guidelines Announcement - August 15, 2014
by Dallas Appraiser L.L.C. on 08/19/14
Urgent: Updated Fannie Mae Guidelines Announcement
Fannie Mae conducted a comprehensive review of the Property Eligibility (B2-3) and Appraisal Requirements
(B4-1) chapters of the Selling Guide. As a result of that review, new policies have been developed, current
policies have been clarified, and additional guidance has been incorporated. Further, significant changes to the
organization of both chapters have been made. In some cases, topics and paragraphs have been re-titled and
content has been reorganized with the expectation that searching for specific information will be much easier.
The clarifications are a result of internal reviews, frequently asked questions, and the analysis of Uniform
Appraisal Dataset (UAD) data. Additional guidance has been incorporated into the Selling Guide to help
lenders in their underwriting of appraisals.
The new and updated policies are described in the table below. In addition, there is an Attachment to this
Announcement that summarizes the clarifications and additional guidance that have been incorporated into the
Selling Guide. Lenders should carefully review the language in the Selling Guide for the specific changes that
are being made to ensure a full understanding of the requirements.
Selling Guide Topics New or Updated Policies
Chapter B2-3, Property Eligibility
B2-3-01, General Property
Eligibility
- The list of properties that are not eligible for acquisition by
Fannie Mae has been updated to include boarding houses
and bed and breakfast properties.
B2-3-02, Special Property
Eligibility and Underwriting
Considerations: Factory-Built
Housing
- Added the requirement that a manufactured housing unit
must not have been previously installed (or occupied at any
other site or location), except from the manufacturer or the
dealer’s lot as a new unit.© 2014 Fannie Mae. Trademarks of Fannie Mae. SEL-2014-03 Page 2
Selling Guide Topics New or Updated Policies
Chapter B2-3, Property Eligibility
- Provided an alternative to the requirement for an original
HUD Certification Label/Data Plate for a manufactured
home.
- Added that manufactured homes that have an addition or
have had a structural modification are eligible under certain
conditions.
B2-3-03, Special Property
Eligibility and Underwriting
Considerations: Leasehold
Estates
- Revised the policy that required the lender to contact Fannie
Mae before approving a lease. The expectation is that the
lender has confirmed the lease meets the requirements
outlined in the Selling Guide.
B2-3-04, Special Property
Eligibility Considerations
- Added an exception to the requirement that properties with
multiple parcels must be adjoined in order for the loan to be
eligible for delivery.
- The multiple parcels policy has been revised to provide
flexibility. Each parcel is no longer required to have
residential zoning - rather each parcel must have the same
basic zoning (e.g., residential, agricultural).
Selling Guide Topics New or Updated Policies
Chapter B4-1, Appraisal Requirements
B4-1.2-01, Appraisal Report
Forms and Exhibits
- Added the requirement that a front photograph of the subject
must be taken when completing the Appraisal Update portion
of the Appraisal Update and/or Completion Report (Form
1004D) to validate that the appraiser has inspected at least
the exterior of the property when he or she performed the
appraisal update.
B4-1.2-02, Appraisal Age and
Use Requirements
- When an appraisal update is required, it must be reported on
the Appraisal Update and/or Completion Report (Form
1004D).
- Fannie Mae will allow the use of an origination appraisal for a
subsequent transaction if certain requirements relating to the
transaction type, age of the appraisal, and continuity of
ownership and the lender are met, and there is no change to
the property condition impacting the market value of the
property.
B4-1.3-05, Improvements Section
of the Appraisal Report
- Information related to Fannie Mae’s acceptance of unique
property types has been provided.
- The definition/characteristics and the eligibility of an
accessory dwelling unit have been provided.
- If the appraiser identifies an addition(s) that does not have
the required permit, the appraiser must comment on the
quality and appearance of the work and its impact, if any, on
the market value of the subject property. © 2014 Fannie Mae. Trademarks of Fannie Mae. SEL-2014-03 Page 3
Selling Guide Topics New or Updated Policies
B4-1.3-08, Comparable Sales ? Revised the policy by removing the requirement that an
explanation is required when using a comparable sale that is
older than six months.
- Provided an example to illustrate that in some instances it
may be appropriate to use older sales with proper time
adjustments rather than a dissimilar more recent sale. An
older sale may be more appropriate in situations when
market conditions have impacted the availability of recent
sales as long as the appraisal reflects the changing market
conditions.
Is Your Real Estate Agent A Spy?
by Dallas Appraiser L.L.C. on 08/18/14
Title:
Is Your Real Estate Agent A Spy?
Word Count:
580
Summary:
If you are looking for a house, your real estate agent isn't yours unless he or she is a buyer's agent. This means you better watch what you say.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
The real estate agent, unless specifically contracted as a buyer's agent, is working for the seller. Buyers usually know this, but they don't think it matters, as long as the agent is helpful. While true to an extent, buyers don't realize that an agent has a real legal responsibility to, and loyalty to the best interests of the seller. It is referred to as a fiduciary responsibility, but what does this mean?
A Real Estate Agent Is A Spy
Let's suppose you make an offer on a home, and mention that if the seller says no, you'll probably offer $5,000 more. The sales agent now has an obligation to tell the seller what you said. That's an expensive comment, isn't it? An agent may spend all his time with you, showing you houses and helping you write offers, but his allegiance is legally with the seller, unless he is hired by you.
An agent, even if she is a seller's agent, can be a great help when you are buying, but remember that she is a sales-person, and you're not the boss. Be careful what you say, and be careful with anything she says. You may want to work with a buyer's agent. In that case the agent can work for YOUR best interests, but even here remember that she will usually get paid only when you buy something, so her objectivity is suspect.
Some real estate agents work under "dual-agency" rules, meaning they're supposed to work for both the buyer's and seller's interests. Of course, they only get paid when a property is sold, so they may be more helpful to the sellers. In any case, how can someone really be on both sides of a negotiation? It is probable they'll work harder for whoever they like more. Do you want a popularity contest that can cost you thousands of dollars?
Things Real Estate Agents Won't Tell You
An agent will often let you assume things, to get the sale closed. They'll tell you that the seller and buyer always split the closing fee, for example, or let you assume it. They'll say they can't change the commission after it has been set. They'll say you have to write a big check for a "good faith" deposit when you make an offer.
I've seen realtors take $4,000 off a commission to get a sale closed at a lower price. I've seen the buyer or the seller pay the entire closing fee. Buyers sometimes put less than $1000 down as a deposit with an offer, and sometimes nothing - agreeing to deposit something when the offer is accepted. Little is set in stone when it comes to real estate.
Don't think real estate agents are all experts. My first time making an offer on a house, the agent didn't understand when I told him that I wanted to get a 90% first mortgage and have the seller carry a second for 5%, so I could get in with only 5% down. Many years into his career, he still had only dealt with conventional deals.
What do you look for in an agent when you are a buyer? Agents will often be knowledgeable about a certain type of real estate, or a certain neighborhood, but know little else. Just like other professionals, they specialize, so when you want to find a particular type of property, look through listings online until you find a real estate agent that already has several of that type listed.
Is Selling your House Without a Real Estate Agent a Good Idea?
by Dallas Appraiser L.L.C. on 08/18/14
Title:
Is Selling your House Without a Real Estate Agent a Good Idea?
Word Count:
538
Summary:
This article explains why it is not always a good idea to sell your real estate without an agent for the purpose of saving some money.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Those of you who are thinking about selling your home might be considering the possibility of doing it yourself, without the help of a real estate agent. You're thinking you can save some money by doing it this way. You will save money, but is it worth it?
First, you put up the sign on your front lawn. At this point you are only advertising to those that drive through your street or by word of mouth. Your property will not get the needed exposure to the wide variety of prospective buyers that are out there. You might be thinking, "I'll just put my house on one of those websites that allow people to sell their property without an agent." This brings me to my second point.
You are pretty much on your own when it comes to who enters your home wanting to see the property. Putting your house on some website basically tells all the psychos out there: "hey, my house is open to whoever wants to come in. All you have to do is tell me that you want to see the house. I'll probably be home with my kids and maybe my spouse. Welcome!" Do you see my point? You don't know the kind of people that you will attract. A real estate agent will take care of showing your property for you and finding people who really are interested in the property and not dangerous individuals who are interested in doing harm to you and your family. The real estate agent can schedule open houses and individual appointments to show your property when you are not available.
So let's say you decided to sell your house on your own and you did find someone who is interested and is now ready to buy. You are probably not aware of all of your rights when it comes to negotiating and closing the deal. A real estate agent knows all the required documents that you will need to ensure your sale goes smoothly. For example, all the disclosures that need to be signed and all the legally binding contracts that enter parties into an agreement.
Would not you rather have someone that can take care of this whole process for you and make it as stress-free as possible? Someone that can let you just focus on your move, which is an ordeal in itself? Remember, a real estate agent works for you and it is in their best interest to make the process of selling your property as smooth as possible. They are very familiar with all the problems that may arise, something that can make your life a lot easier. Your real estate agent will work hard to make sure your deal does not fall through, because if it does he or she will not get paid.
Some would rather take the whole task upon themselves just to save a few extra bucks. Take my advice, hire a realtor unless you have all the time in the world and you don't care how long it takes to sell your house, and you don't care whether your deal falls through or not or if something goes wrong due to lack of knowledge on your part.
Is Now the Time to Buy? Taking Advantage of the Housing Slump in Certain Markets
by Dallas Appraiser L.L.C. on 08/18/14
Title:
Is Now the Time to Buy? Taking Advantage of the Housing Slump
Word Count:
572
Summary:
Despite the current downward trend of housing in a few North Texas markets and the tightening of credit standards by mortgage lenders, many in the industry agree that now may be the perfect time to buy for those who have been waiting for bargains in the housing industry. Record numbers of unsold houses sitting on the market, plus a record number of foreclosures, mean that there are a number of properties that just a few short years ago may have been outside of your price range that you can now comfortably afford. Here in DFW many areas have recovered to the 2007-2008 levels, however there are still great deals to be had here and in other US cities.
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Here in DFW many areas have recovered to the 2007-2008 levels, however there are still great deals to be had here and in other US cities. Despite the current downward trend of housing in few North Texas markets and the tightening of credit standards by mortgage lenders, many in the industry agree that now may be the perfect time to buy for those who have been waiting for bargains in the housing industry. Record numbers of unsold houses sitting on the market, plus a record number of foreclosures, mean that there are a number of properties that just a few short years ago may have been outside of your price range that you can now comfortably afford. How can you as a smart home buyer take advantage of the current housing market and get the home of your dreams without worrying about losing your shirt?
What goes up must come down. We are seeing this age old piece of wisdom come true in the housing sector as years of rising housing prices have finally come crashing down to more affordable levels. Thanks in part to an oversupply of housing on the market and strengthened by the sheer number of foreclosed houses showing back up on the market - the time is right if you can afford it to consider making the jump and buying a house.
Not only does the current soft market appeal to bargain hunters, but also to the aging baby boomer population.
There are millions of Americans who are approaching retirement and they are looking to sell their house in markets where real estate prices are still packing a punch and moving to areas that are more affordable for their golden years. It is these two groups who are poised to take the most advantage from the current situation - and you can too.
Have you had your eye on a house that has been on the market for awhile but thought it was too expensive? Now is the perfect time to put your haggling skills to work. As houses sit on the open market for longer periods of time the owners become more desperate to sell and usually are willing to entertain reasonable offers. You may find that it is possible to knock tens of thousands off an asking price by just working with the realtor and "naming your price".
Got good credit? Use it to your advantage! The mortgage industry is tightening the reins on lending, but for those with good credit they can still get incredible deals on home loans.
Shop around - as the pool of those who are eligible for a mortgage becomes smaller, mortgage companies become more competitive for your business.
Many mortgage companies are eager to take on home buyers with good credit and stable finances to help offset some of their weaker credit customers on their portfolio.
If it isn't fixed rate - forget it! No matter whether you are buying now, or considering it for the future, remember that fixed rate mortgages are your best friend no matter what you might hear otherwise.
Don't get caught up in the adjustable rate trap and find you have payments you can't afford down the road. Most mortgage companies now are pushing fixed rate loans - but if they aren't, demand it or take your business elsewhere.
The market for housing may be soft in areas, but like all things it will come around again. Now is the perfect time for those who have held off buying a new home or moving to consider taking the plunge to take advantage of low housing prices and a competitive mortgage marketplace.
Is FSBO safe?
by Dallas Appraiser L.L.C. on 08/17/14
Title:
Is FSBO safe?
Word Count:
774
Summary:
Safety is often raised as an issue by real estate agents when homeowners consider selling their own home. But is FSBO any less safe than selling through a traditional real estate agent?
keywords: #DFW, #Tarrant, #Johnson, #Dallas, #home_appraiser, #home_appraisal, #Property_appraiser, #home_value, #real_estate_appraisal, #Appraisal, #Appraiser, #Home_size, #equity, #REO, #foreclosure, #property, #Home, #House, #Real_Estate, #Measure, #house_size, #House_square, #square_footage #hard_money, #Loan, #Mortgage, #Refinance, #subdivide, #For_sale_By_Owner
Article Body:
Safety is often raised as an issue in FSBO (For Sale By Owner) real estate sales. Some real estate agents try to scare homeowners into listing with them by claiming that is unsafe. Some homeowners are unsure how to show their property safely.
By taking a few sensible precautions there is no reason why selling your home FSBO (also known as private sale) should be any less safe than selling through a real estate agent. In fact selling FSBO should be safer. There is nothing that a real estate agent does to vet buyers that FSBO homeowners cannot do for themselves.
What does a real estate agent do?
Real estate agents claim that they vet prospective buyers before they visit your property but what does this mean? Does the real estate agent check whether the buyer has a criminal record for violent crimes or theft? Of course they donít. At best, the agent may get a name, address and contact number of the buyer before they visit.
Getting a contact number for buyers is easy, just ask when the buyer calls to enquire about viewing your property. Before the buyer visits call them back to confirm that they are still coming. This lets you confirm that the contact number is genuine and also reduces the likelihood of no-shows.
FSBO advert contact details
It is advisable to limit the amount of information that you make available through online FSBO advertising. Some homeowners include their full name, telephone numbers, e-mail address, street address of the property for sale and times when they are at home. Whilst including this information is not enough to forge documents such as a passport it is enough to gain unwanted attention from confidence tricksters.
A potential buyer only needs to know your first name to make polite initial contact. There is no need to include your surname and titles in your FSBO advert.
Choose an online advert that protects your email address. There are programs that trawl the web looking for published email addresses. If you post your email address in your FSBO advert you are asking to receive spam.
The better FSBO sites such as www.smartvendor.com.au have online messaging systems that allow buyers and sellers to communicate online while keeping email addresses private
When selling your own home a mobile (cell) phone is invaluable. Not only are homeowners less likely to miss a call from a potential buyer but also a potential thief cannot cold call the property to check whether anybody is home.
Open house inspections
We don not recommend holding an open house viewing when selling your property. Open house inspections are hard to supervise and many buyers find viewing a property with lots of other buyers unproductive and frustrating.
Real estate agents use open houses as a way of getting leads about other properties that are for sale. Often the real estate agent will stand at the front of a house to make sure buyers receive details of their agency. But once inside the property buyers are allowed to roam around unsupervised.
Potential thieves can use open house inspections to check out security systems and case the properties if left to roam unsupervised. Do not provide too much detail relating to your home’s security system to a buyer on their initial visit.
Common sense rules
When you are holding viewings of your property follow these common sense rules:
Remove all valuables from the property. Take them off site preferably in a safe deposit box. Do not just put them in a drawer.
Make sure there are two people in the property at all times. Ask a friend or family member to accompany you. Only one of you need conduct the viewing.
Keep blinds and curtains open during viewings this allows people outside to see in to the property and will potentially deter somebody thinking of getting up to no good.
Showing your property after dark
Allowing buyers to drop in for viewings without a prior appointment is not recommend and especially not if the buyer is requesting an impromptu viewing after dark. Politely explain that you are happy to show your home during daylight hours, when the buyer can fully appreciate your home’s wonderful features. Offer a flyer or information sheet to take away.
FSBO may not be for you
FSBO is not for everybody. In order to sell your own home you must be prepared to show potential buyers around the property. If you are uncomfortable doing this or feel that your circumstances would make you especially vulnerable it would be wise to consider using a traditional real estate agent.
