VIP Realty Platinum's blog

Do First-Time DFW Home Buyers Need an Agent?

The National Association of Realtors® (NAR) would like to tell you that all agents are honest, ethical, experienced and care deeply about their clients, but is this necessarily true? In my experience it is true about most of the Realtors in the DFW Homes business, but unfortunately, it's not true about all of them. There are some real estate agents out there whose sole purpose is to make as much commission as they possibly can, as quickly as possible, with little regard for the clients best interest. The challenge is that some of these agents look and act just like professional, ethical agents, so it's hard to tell them apart. This confusion can also make some first-time home buyers overly suspicious of the very Realtors that are supposed to put their client’s interest before their own. These first time buyers may wonder if they would be better off without an agent. Some of them may think they can buy their first DFW home by themselves and fare better.

This is unlikely. Most first time home buyers generally have a job or a business that has nothing to do with real estate, so they tend to know very little about it. Most professional Dallas Realtors are in the business full time, so they acquire more and more knowledge every day. The business of real estate is complicated, filled with legal paperwork; it requires expert negotiations and there are often problems which, if left undetected, can blow up into huge proportions that jeopardize your entire transaction. This also holds true for first time home buyers buying Dallas foreclosures. My advice for first-time home buyers is to retain a buyer’s agent to work for you and represent your interest 100%. In almost every case, the seller pays the fees for your buyer's agent, so it costs you nothing at all.

Hiring the Seller's Agent to Buy a Home

It is little known by most buyers but there is something called a variable commission, which makes some buyers think they will get a better deal by dealing directly with the listing agent. This variable commission only benefits the seller by saving them commission money. It would be naïve to assume that the seller will pass this savings along to the buyer. More importantly, the listing agent represents the Seller, not you, the buyer. The chances of you coming out ahead by dealing directly with the listing agent are slim to none. Hire a buyer’s agent to represent your interest and protect you, this is really the best deal.

Hiring a Buyer's Agent to Buy a Home

As I mentioned before, a buyer's agent represents you and the seller pays for this representation. It’s a no brainer for any buyer. A buyer's agent fiduciary responsibility is to look out for your interests first. A buyer's agent's duties are to:

• Tell you the truth

• Negotiate on your behalf in your best interest

• Fight for the best sales price, terms and conditions that match your criteria

• Anticipate challenges and head them off at the pass

• Disclose defects the agent can see

• Provide you with the seller’s disclosure and all documentation to which you are legally entitled

After you've bought a few homes and are used to the process, you might not need to hire your own agent to buy another home. But for your first home? Absolutely, hire a buyer's agent. Besides, you'll find that agents who specialize in working with first-time home buyers tend to derive a great deal of personal satisfaction in providing superior customer service and making their buyers' dreams come true. Those are good qualities in a buyer's agent.

DFW Real Estate Showing Tips

When showing your DFW home for sale, you want to do your best to engage the buyer emotionally because their decision to buy is based more on emotions, and less on logic. Give the buyer the emotions to say yes by staging and accentuating your home's positive attributes, and minimizing attention to the negative attributes.  This is paramount to selling any DFW real estate and Plano real estate successfully. 

Gracious Welcome

Although buyers are guests in your home, you want them to imagine themselves owning and living in the home. You don't want to make the buyer feel like an outsider.

• Don't pressure or hurry the buyer. Tell them to take all the time they want.
• Don't expect the buyers to remove their shoes, unless you are selling to a buyer for whom religious or cultural reasons dictate it. 
• It is best to leave the house. The buyer won't feel comfortable about talking about the house in front of you.
• Leave a bowl of mints or other treats near the front door with a small note thanking the buyer for coming to see your home.

Check the Temperature

• Now is not the time to worry about your utility bill. If it's cold enough to wear a sweater turn on the heat.
• If it's hot outside, turn on the AC. It's better to heat or cool the house a degree or two warmer or colder than usual and then set the temperature at normal. This prevents the heat or A/C from coming on when the buyer is present, because some HVAC systems are loud. 
• You want the temperature inside to be comfortable and to give the buyer more of a reason to stay longer, especially on hot or cold days!
• This may not be possible with Dallas foreclosures because many times the utilities are not on at the property.

Create a Mood

• Light a fire in the fireplace even if it is summer time.
• Romanticize it by placing two champagne glasses on a nearby table.
• Turn on soft music like jazz or classical.
• If you have water fountains, turn them on.
• Turn on all lighting and ceiling fans.

Play Up the Visual

• If you have seasonal photographs showcasing flower gardens, leaves bursting in color or a snow-covered lawn twinkling from street lights, then display them.
• Take down all the photos of your family.  If your family members are pasted all over the walls it’s hard for them to imagine it being their own home.
• Open all the window coverings to let in light.
• Keep blinds partially closed that otherwise show undesirable outdoor scenery such as a dilapidated fence or a nearby structure that obstructs views.

Play Down the Scent

• Many people are allergic to certain scents and deodorizers, so don't spray the air or plug-in air fresheners.
• Don't burn candles or spray perfume in the bedroom for the same reason.
• If you're going to bake cookies or brownies or simmer spices such as cinnamon in water on the stove, put out munchies so buyers aren't disappointed. More than one buyer has said, "Oh, shucks, I thought there were cookies here".

Brighten up the House

• Turn on every light in the house, including appliance lights and closet lights.
• Brighten dark rooms with few windows by placing spot lights on the floor behind furniture.
• Turn on all ceiling fans and even the fireplace.

Provide Thoughtful Notes

Attach printed notes to items and in rooms that provide further information the buyer might miss or might not know. This will go a long way with the buyers.

• If you have an expensive chandelier in your dining room, put a card on it that discloses its age and other important details.
• If you have removed the washer and dryer from the laundry room, attach a card to the wall describing the room.
• If a room is empty place a note giving the buyers an idea what this area can be used for.

Top It Off With Food

The best way to entice buyers to linger in your home and notice more details about your home is to offer them food and drink. You don't need to cater a lunch, but finger sandwiches, cookies, soft drinks, water, coffee, and desserts are all a good idea.

Encourage Buyer Feedback

• Near the food and drinks, leave pens and a stack of questionnaire cards for the buyers.
• Buyers will feel obligated to respond to your request after being given food and drink.
• The showing feedback you receive will be invaluable to your selling goals.
• Allow buyer anonymity by not requesting their name or contact information.

Is Now a Good Time to Start a Dallas Real Estate Career?

http://webcastcity.com/News/YN-VIPRealty-Careers

 

 

It seems like every day we hear about more and more DFW real estate agents going out of business, sometimes, whole offices. It must be a terrible time to think about becoming a real estate agent, or is it? It may be a great time to become an agent. These tough times are squeezing out all of the so-so agents and so-so brokerage companies. This opens the doors for new, aggressive agents that embrace technology and are willing to learn the best strategies of selling real estate in this market environment. This crop of new agents will understand that it is no longer about transactions, it is about helping people, many of them with limited resources and serious personal and financial challenges.

These upcoming agents will have to specialize in Dallas foreclosures, short sales, ever changing financing programs and even a little bit of psychology. If you are considering a career in real estate, get the proper education, the proper tools and the proper guidance. With the right mindset, drive, determination, and a genuine desire to help people you can become a huge success when many of the others will tell you that you will fail. Step up and prove them wrong.

Is Using a Discount Dallas Real Estate Broker a Good Idea?

http://webcastcity.com/News/YN-VIPRealty-ZeroCommission

In this real estate market there are many Dallas homeowners who have very little equity in their homes. If they find themselves in a position where they have to sell their home every dollar counts especially when it come to sales commissions. But can you really save sales commission dollars and get the market exposure that your property needs and the proper representation you need to ensure that you aren't being taken advantage of? Is someone watching out for you to make sure all the local, state and federal laws are being complied with? Is selling Plano real estate the same as selling a Dallas foreclosure property? Do the rewards outweigh the risk of using a discount Dallas Real Estate Company?

The answer, in most cases, is yes but only if you are careful and do your due diligence. Google Dallas FSBO (For Sale by Owner) real estate companies or Dallas Flat Fee real estate companies. Study several of their websites and compare them. Cost should not be the only determining factor as many of the "cheap" programs do nothing more than stick your property in the MLS and on some websites. Look for a comprehensive program where your property gets full market exposure and you have full representation through closing. Many of these programs cost between $1,500 and $2,500 but do the math. You will find that using one of these discount Dallas real estate companies will save you thousands of dollars.

Dallas Short Sales and the Effect on Your Credit Score

  Dallas short-sale vs. foreclosure:  Many sellers wonder if a short sale will affect their credit less a foreclosure will and what the other advantages and disadvantages between the two. A homeowner in foreclosure, depending on state laws, could possibly stay in their property, rent free, for three to four months and sometimes up to a year before they are forced forced to vacate. But this fact alone does not mean a Dallas foreclosure is better for them than a short-sale.   A short-sale involves offering the property for sale, generally listed through the Dallas MLS. Potential home buyers will take a look at the property, some of them will make lowball offers.   

Basics of a Short Sale

A Dallas short sale  happen when a bank agrees to accept less than the amount owed on the mortgage because there is not enough equity to sell and pay the costs of sale. Not all lenders will agree to a short sale, and that is why a Dallas Realtor can be a tremendous help by contacting the lender's loss mitigation department to find out.  You can't just unilaterally decide that you are going to sell your home at a loss and list it as a short sale. It used to be that lenders wouldn't even consider a short sale if your payments are not behind on your payments, but that has changed. However, lenders will be more agreeable to negotiating if your payments are in arrears.

How is a Seller's Credit Affected?

• Dallas Foreclosures  or Deed-in-Lieu of Foreclosure:  Both of these choices affect credit ratings poorly.   A foreclosure can lower your credit score by 200 points and take up to seven years to recover.
• Short Sale:  A short sale can lower your credit score by as little as 50 points and only take two years to recover from.

Waiting Period Before Buying Another Home

• Foreclosure or Deed-in-Lieu of Foreclosure
  A seller who wants to buy another home after foreclosure will need to wait about up to 72 months before they can qualify for another mortgage.
• Short Sale
  The good news is a short sale will allow you to obtain a mortgage in about two years.  Unlike with a foreclosure, always negotiate with your lender a release of liability when doing a short sale.  This means that the lender will take the money it receives from the short sale as payment in full.  This means they won’t be able to come after you for a deficiency judgment and lien you bank accounts and salary.   

FHA adopted guidelines in 2010 that say a seller who is current and does a short sale may qualify to immediately buy another home. Lenders aren't so quick to follow those guidelines. Fannie Mae guidelines allow a seller to immediately apply for a new loan to buy another home if that seller kept the payments current, had no delinquencies exceeding 30 days and did not agree to repay the debt relief. Moreover, it's the late payments that dramatically affect your credit report, not the short sale.

Foreclosure or Short Sale – The Decision

If you are trying to decide whether to let your home go through foreclosure or selling it via short sale due your due diligence, speak with a professional Realtor how specializes and seek legal and account advice.  There are other advantages to a Dallas short sale over a foreclosure.

Top Reasons to Higher a Realtor to Find Your DFW Home

With more and more information bring readily available online, clients sometimes ask "Why should I hire a real estate agent?  We can look for a home ourselves online" They wonder if they could buy or sell a DFW real estate on the internet or through regular, old school, marketing and advertising means without using a DFW Realtor. It’s possible, a very few do okay but most don’t.  If you've wondered the same thing, here are good reasons why you should want to consider hiring a professional real estate agent.

1. Experience & Education

You don't need to know everything there is to know about buying and selling a DFW home if you hire a professional Dallas Realtor who does. The trick is to find the right Realtor. In most cases, the seller pays your Realtor for you.  Why not hire a Realtor with more education and experience than you, than most other Realtors?

2. Agents are Your Defense

Realtors take much of the stress out of your property showings and visits. If you're buying a new home, your Realtor will keep the builder's agents at bay, preventing them from over aggressive sales tactics.  If you're a seller, your Realtor will filter all the phone calls that lead to nowhere and try to induce serious buyers to write an offer.  If you are buying Dallas foreclosures your Realtor will act as you liaison between you and the bank.

3. Community Knowledge

Realtors possess intimate knowledge about your community. They can identify comparable sales and provide this information to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. You may know that a home down the street was on the market for $235,000, but an agent will know it had upgrades and sold at $217,500 after 57 days on the market.

4. Value Guidance

Contrary to what many people believe, Realtors do not set the listing prices for sellers or buyers. A Realtor, however, will help to advise clients to make wise decisions. If a listing is at 6%, for example, a Realtor has 6% vested in the sale, but the client has a 94% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose the listing price. Then based on market supply and demand and the conditions and upgrades, the agent will devise a negotiation strategy.

5. Market Conditions

Realtors can determine market conditions, which will dictate your selling or buying process. There are many factors that determine how you should proceed. Data such as the average price per square foot of similar homes, median and average sales prices, average days on market (DOM) and ratios of list-to-sold prices, among other criteria.  These things will have a huge impact on how you ultimately decide to proceed.

 

6. Professional Networking

Realtors network with other real estate professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many Realtors will not directly recommend a certain individual or company, but they do know which service companies have a good reputation for efficiency, competency and competitive pricing. Realtors many times, however, provide you a list of vendors with whom they have confidence in.

7. Negotiation Skills

High producing Realtors negotiate effectively because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction.  Because they are skilled it's part of their job. They are professionals who are trained to represent their client's as best as possible and hold client information confidential.

8. Handling Paperwork

Today's contract packages run 20 pages or more. Most real estate files average thicknesses of one to three inches of paper. One little error or omission could land you in court or in or cost you thousands of dollars.

DFW Real Estate – Counter Offers

  What Does Counter Offer mean?
Counter offers on Collin County real estate come into play by a home seller after a buyer has submitted an offer to purchase their home. Generally, a counter offer will state that the seller is interested in the buyers offer subject to the following changes. Some examples:

• Price (generally a higher price)
• Increasing the amount of the earnest money deposit
• Changing service providers
• Refusals to pay for certain fees
• Altering closing or possession date
• Excluding personal property from the contract
• Modifying contingency time frames

How many Counters Should You Expect?
Just the same as a seller submitting a counter Tarrant County real estate offer to a buyer, a buyer can counter the seller's counter, which will then become counter offer #2. There is no limit to the number of counter offers that can be submitted back and forth.  The offer and all subsequent counter offers are handled through you’re your DFW Realtors office.

How are Counter Offers Rejected and Should you Reject it?
The seller is not required to respond to any offer. That may come to a surprise to you? Here are some of the most common ways to reject an offer:

• Most Denton County real estate contracts provide at the bottom of the page for the seller to initial that the offer has been rejected.
• Most offers specify a date of expiration, a “deadline clause” in the event the seller elects not to respond.
• Sellers can also write "rejected" across the face of the contract, initial and date it.

Can There Be Multiple Counter Offers?
Depending on your specific state laws, sellers may or may not be able to issue multiple counter offers at one time. In many states sellers can counter more than one offer and each counter can be different. Even if one of the buyers accepts the seller's counter under these circumstances, the seller does not have to accept the buyer's acceptance. When Dallas foreclosures are involved many banks and mortgage companies will use this method in order to get then highest offer for one of their properties.  

How are Counter Offers Accepted?
If the counter offer is issued by the seller, the buyer can simply accept the counter and deliver it back to the party designated to receive it. Time is always of the essence, meaning, counter offers contain expirations just like purchase offers, which means the seller can accept another offer while the buyer is deciding whether to sign the counter offer.  When I've called Realtors to find out the availability of a home and whether any offers have been received, it's very common to hear, "We have a counter out." Some Realtors become discouraged at this news. But this is a great time to get your clients offer in.  You may be pleasantly surprised when the offer is accepted by the sellers. What commonly happens in these situations is the seller accepts the second buyer's offer and then simply withdraws her counter offer from consideration, kicking out the first buyer.

Dallas Short Sales and the Effect on Your Credit Score

  Dallas short-sale vs. foreclosure:  Many sellers wonder if a short sale will affect their credit less a foreclosure will and what the other advantages and disadvantages between the two. A homeowner in foreclosure, depending on state laws, could possibly stay in their property, rent free, for three to four months and sometimes up to a year before they are forced forced to vacate. But this fact alone does not mean a Dallas foreclosure is better for them than a short-sale.   A short-sale involves offering the property for sale, generally listed through the Dallas MLS. Potential home buyers will take a look at the property, some of them will make lowball offers.   

Basics of a Short Sale

A Dallas short sale  happen when a bank agrees to accept less than the amount owed on the mortgage because there is not enough equity to sell and pay the costs of sale. Not all lenders will agree to a short sale, and that is why a Dallas Realtor can be a tremendous help by contacting the lender's loss mitigation department to find out.  You can't just unilaterally decide that you are going to sell your home at a loss and list it as a short sale. It used to be that lenders wouldn't even consider a short sale if your payments are not behind on your payments, but that has changed. However, lenders will be more agreeable to negotiating if your payments are in arrears.

How is a Seller's Credit Affected?

• Dallas Foreclosures  or Deed-in-Lieu of Foreclosure:  Both of these choices affect credit ratings poorly.   A foreclosure can lower your credit score by 200 points and take up to seven years to recover.
• Short Sale:  A short sale can lower your credit score by as little as 50 points and only take two years to recover from.

Waiting Period Before Buying Another Home

• Foreclosure or Deed-in-Lieu of Foreclosure
  A seller who wants to buy another home after foreclosure will need to wait about up to 72 months before they can qualify for another mortgage.
• Short Sale
  The good news is a short sale will allow you to obtain a mortgage in about two years.  Unlike with a foreclosure, always negotiate with your lender a release of liability when doing a short sale.  This means that the lender will take the money it receives from the short sale as payment in full.  This means they won’t be able to come after you for a deficiency judgment and lien you bank accounts and salary.   

FHA adopted guidelines in 2010 that say a seller who is current and does a short sale may qualify to immediately buy another home. Lenders aren't so quick to follow those guidelines. Fannie Mae guidelines allow a seller to immediately apply for a new loan to buy another home if that seller kept the payments current, had no delinquencies exceeding 30 days and did not agree to repay the debt relief. Moreover, it's the late payments that dramatically affect your credit report, not the short sale.

Foreclosure or Short Sale – The Decision

If you are trying to decide whether to let your home go through foreclosure or selling it via short sale due your due diligence, speak with a professional Realtor how specializes and seek legal and account advice.  There are other advantages to a Dallas short sale over a foreclosure.

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.

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.