The internet is the most efficient way to locate a real estate deal in the Dallas market. Or is it? Homebuyers spend hours searching site after site trying to find the perfect home at the best price. And when they do find a great home, they try to contact the agent and never get a response or even worse they find out that the home had been sold a month before.
It is so frustrating. Why does it happen? There are a few different reasons.
First, Realtors upload their information to the local MLS system. This information is then uploaded automatically to different web site. This process can take several days or in some cases over a week. The best deals in the Dallas area are sold before you know about them.
Second, some Realtors are solely listing agents. They don't want to deal with buyers. Most of the agents who list foreclosures fit into this category. You are thinking that they did not return your request for information because they don't care about you and you are right. Or, that home is already sold.
Third, this one I just don't get. I hear complaints all the time about Realtors not returning calls or answering e-mails. They spend time and money advertising for leads and when they get one they drop the ball. Maybe these agents are just lazy.
Forth, some sites sell your information to Realtors. They don’t care if the home is sold or not, they just want your information so that they can sell it. You sign-up for free and then they sell your information to a Realtor for $50. You will know when this happens and you have some Realtor calling and bugging you for the next millennium.
I have developed a program that will e-mail you the homes that meet your criteria the day that they hit the market. I call it my "Finder Program". It is Free, Fast and Easy to use. Just tell us what you are looking for and we will e-mail you those home. Find one you like, contact us and we will show it to you.
Areas that we service: Addison/Far North Dallas, Allen ISD, Anna ISD, Carrollton/Farmers Branch, Dallas North, Farmersville ISD, Frisco/Denton County East, Garland, Lovejoy ISD, Mesquite, McKinney ISD, Melissa ISD, Plano, Princeton ISD, Prosper ISD, Richardson, Sachse/Rowlett and The Colony.
Dream Home Finder
Foreclosure Finder
Lease Finder
Showing posts with label bank foreclosure. Show all posts
Showing posts with label bank foreclosure. Show all posts
Sunday, October 19, 2008
Friday, April 18, 2008
Buy The House Before The Car
Debt to Income Ratio
When qualifying for a loan, the lender will analyze your debt to income ratio. It is the percentage of your gross monthly income (before taxes) that you spend on debt. (monthly housing costs, including principal, interest, taxes, insurance, and homeowner's association fees, credit cards, student loans, installment debt and car payment).
Let's say that you earn $5,000.00 per month and have a car payment of $400.00 per month. Using a rate of 8%, you would qualify for $55,000.00 less house than if you had no car payment.
Understand why not to buy the car first?
Randal Newhouse
Newhousediscounts.com
When qualifying for a loan, the lender will analyze your debt to income ratio. It is the percentage of your gross monthly income (before taxes) that you spend on debt. (monthly housing costs, including principal, interest, taxes, insurance, and homeowner's association fees, credit cards, student loans, installment debt and car payment).
Let's say that you earn $5,000.00 per month and have a car payment of $400.00 per month. Using a rate of 8%, you would qualify for $55,000.00 less house than if you had no car payment.
Understand why not to buy the car first?
Randal Newhouse
Newhousediscounts.com
Thursday, April 17, 2008
Earnest Money
How much should the earnest money deposit be?
There is no set amount. Different areas have different customs. In the Dallas area, 1% of the sales price is common.
As a buyer it is a good idea to contact the title company that you will be making your check to and inquire about their refund policies. Each title company has different rules that they follow. Most title companies will not release earnest money to a buyer without the seller's written permission or to the seller without the buyer's written permission. This causes a lot of problems.
If either party refuses to release the earnest money it requires a judgment from a judge (Small Claims Court) to have the money released.
WARNING: Verbiage in the contract makes any party that wrongly refuses to release the earnest money liable for 3 times the amount of the earnest money. As a buyer or seller if you refuse to release the earnest money make sure that you are correct in doing so.
Randal Newhouse
NewhouseDiscounts.com
There is no set amount. Different areas have different customs. In the Dallas area, 1% of the sales price is common.
As a buyer it is a good idea to contact the title company that you will be making your check to and inquire about their refund policies. Each title company has different rules that they follow. Most title companies will not release earnest money to a buyer without the seller's written permission or to the seller without the buyer's written permission. This causes a lot of problems.
If either party refuses to release the earnest money it requires a judgment from a judge (Small Claims Court) to have the money released.
WARNING: Verbiage in the contract makes any party that wrongly refuses to release the earnest money liable for 3 times the amount of the earnest money. As a buyer or seller if you refuse to release the earnest money make sure that you are correct in doing so.
Randal Newhouse
NewhouseDiscounts.com
Option Period Danger
The Texas promulgated contract assumes that the buyer is buying the house in As-Is condition with no repairs. This is rarely the case. Most transactions involve repairs to the property.
In Texas, the contract provides for an option period (10 days is the standard). The buyer pays the seller for this right ($100.00 is standard). During the option period the buyer may back out of the contract for any reason.
The buyer has the property inspected during the option period and then negotiates repairs with the seller.The buyer is essentially saying, "Either fix these item or I will cancel the contract." A lot of buyer's agents mistakenly feel that if the negotiations are continuing that the option period magically extends. It is the obligation of the buyer to either come to agreement or terminate before the end of the option period.
If the option period expires without all parties in written agreement, the buyer has to buy the property As-IS with no repairs.
In Texas, the contract provides for an option period (10 days is the standard). The buyer pays the seller for this right ($100.00 is standard). During the option period the buyer may back out of the contract for any reason.
The buyer has the property inspected during the option period and then negotiates repairs with the seller.The buyer is essentially saying, "Either fix these item or I will cancel the contract." A lot of buyer's agents mistakenly feel that if the negotiations are continuing that the option period magically extends. It is the obligation of the buyer to either come to agreement or terminate before the end of the option period.
If the option period expires without all parties in written agreement, the buyer has to buy the property As-IS with no repairs.
Don't Overpay
If a 1978 Ford Pinto was for sale for $100,000.00 and you bought it for $90,000.00 would you brag about the great deal you made because you bought it for $10,000.0 under the asking price? Doubtfully.
I have made great deals paying more than asking price. Some houses are listed for far more than they are worth; some are listed for less than they are worth. Value cannot be determined by list price.Before making an offer, always have your agent prepare a market analysis showing the value of the property.
Do not depend on tax values either. An owner who disputes value each year will most likely have the lowest tax value. Tax values and web sites that utilize tax values to value properties are not accurate.
Don't fall in love with a house until you close on the property. If you want a great deal be prepared to walk away.
I have made great deals paying more than asking price. Some houses are listed for far more than they are worth; some are listed for less than they are worth. Value cannot be determined by list price.Before making an offer, always have your agent prepare a market analysis showing the value of the property.
Do not depend on tax values either. An owner who disputes value each year will most likely have the lowest tax value. Tax values and web sites that utilize tax values to value properties are not accurate.
Don't fall in love with a house until you close on the property. If you want a great deal be prepared to walk away.
Why Buy Dallas Now?
If you are a home-buyer, you are also a real estate investor. The purchase of your home may very well be the biggest investment that your family will make. Although many more factors are involved in the home buying decision than investment opportunity, the long term appreciation should be factored into your decision.
The following is the criteria that I look for in any real estate market.
Look for a bubble proof environment.
The Dallas area as a whole has had a steady 4% to 5% annual appreciation for the last decade, however, some areas have far surpassed that performance. Last year Park Cities increased 14%, Princeton jumped 23% and Farmersville increased 35%. Knowing where to invest in the Dallas area is crucial.
Dallas sat out the housing boom of 2001-2006. In fact, Dallas homes appreciated below the national median for over 16 years, until this year. Recovering from the oil embargo of the 70s, the Savings and Loan crisis of the 80s and technology meltdown of the aughts, Dallas never got up off its knees.
Realty Times 10-13-2007
Look for a market with huge snap-back potential.
Before the bubble burst, Dallas was 11% undervalued while many California cities were 40% to 50% overvalued. Most economists agree that the national market is adjusting back to value. This is why as California is going down, Dallas will be coming up.
NAR expects the national median price of homes to drop to $218,200 in 2007. In Dallas, where it's warm, wide-open, and there are lots of jobs, the median home price is going up. One of the few bright spots of the retreating housing market, Dallas is beating national numbers in jobs, culture, and inflation in terms of housing appreciation. And with a median-priced home only two-thirds the price of the national median at $156,000, the city is a screaming, stomping bargain.
Realty Times 10-13-2007
Look for an area of strong demographic growth.
Supply and Demand...The higher the population growth is the higher the demand for housing. Not surprisingly, population growth accompanies job growth.
The Dallas-Fort Worth area gained 842,449 residents from April 1, 2000, to July 1, 2006, the second-largest numerical gain of the nation's 361 metro areas, bringing the total population to about six million.
U.S. Census April 2007
Look for a strong, growing, and diverse economy.
Unlike Houston which is an oil city or Austin which is a tech city, Dallas is the most business diversified city in the state. This cushions the city from major industry specific economic fluctuations.
The Dallas-Fort Worth area added 91,500 jobs between March 2006 and March 2007, the largest numerical increase among the 12 largest U.S. metropolitan areas. The local job growth rate during that period was 3.2 percent, more than double the national increase of 1.5 percent, and total non-farm employment for the area stood at 2,915,000 in March 2007.
Bureau of Labor Statistics.
Look for an area of growing retirement population.
Retirees provide an area disposable income without taking a job. We consider retirees as bonus population. They buy or rent, infuse the economy with money but do not take jobs or populate the schools.
In 2005, Texas gained 27,000 new residents over the age of 65, bringing a total of $732 million in added income to the state. While that's less than half of Florida's gain at 68,000 new older population and $1.9 billion, what's significant is a large number of workers and retirees are not "following a job" to the state, but choosing to live there on Texas' merits. The retired population will more than double in the next ten years. Affluent retirees have disposable income. They also foster the creation of new businesses tailored to retiree specific needs.
Realty Times 10-13-2007
Look for new and substantial infrastructure changes.
Highways and other infrastructure changes almost always affect property value positively. Projects of these magnitudes don't happen overnight so get informed early and buy in these areas.
Click on http://www.keepitmovingdallas.com/ to see the newest Texas Department of Transportation projects for Dallas.
Only move into undervalued markets.
When incomes rise faster than home prices, the market becomes undervalued. Undervalued markets are the only place in which to invest. You help protect your investment from any real estate bubble and you help guarantee your long-term valuation.
Some Realtors say the smart housing investment money is starting to move out of the hot markets and is beginning to heat up cities no one has been talking about in a long time, like Dallas, Little Rock and Raleigh-Durham, all boom towns of yesteryear. Dallas is under priced by 11 percent and Austin by 5 percent.
Realty Times 10-25-2007
Always acquire a property with strong potential for appreciation.
Fortunes are made through appreciation. Positive cash flow aids in the ability to hold the property while it appreciates. Many investors purchased properties that had negative cash flows in the bubble areas, counting solely on appreciation, and are now in trouble. If it does not cash flow...Do not buy it. Dallas continues to be one of the cheapest big-city housing markets in the country, according to a new comparison of U.S. housing costs.
The snapshot comparison is based on the purchase of a 2,200-square-foot, single-family home with four bedrooms, 2 ½ baths, a family room and a two-car garage in a neighborhood that would appeal to relocating families. That house costs $302,198 in the Dallas area, compared with an average of $422,343 in the 317 U.S. markets surveyed.
Dallas Morning News 10-27-2007
Look for tightening vacancy trends.
Do not invest in a market saturated with income properties and no renters. Pay close attention to the new construction and vacancy trend cycles. Overbuilding increases vacancy rate but overbuilding is almost always followed by under building, to the great benefit of rental properties.
Renters filled almost 7,000 apartments since the end of June, according to statistics released Tuesday by apartment analysts at M/PF YieldStar Inc. The increase in net leasing pushed overall apartment occupancy in the D-FW area above 94 percent - the highest level in six years.
Dallas Morning News 10-26-2007
For more information about why Dallas is a great area to purchase, I highly recommend that you visit DFWHousingFacts.Org.
The following is the criteria that I look for in any real estate market.
Look for a bubble proof environment.
The Dallas area as a whole has had a steady 4% to 5% annual appreciation for the last decade, however, some areas have far surpassed that performance. Last year Park Cities increased 14%, Princeton jumped 23% and Farmersville increased 35%. Knowing where to invest in the Dallas area is crucial.
Dallas sat out the housing boom of 2001-2006. In fact, Dallas homes appreciated below the national median for over 16 years, until this year. Recovering from the oil embargo of the 70s, the Savings and Loan crisis of the 80s and technology meltdown of the aughts, Dallas never got up off its knees.
Realty Times 10-13-2007
Look for a market with huge snap-back potential.
Before the bubble burst, Dallas was 11% undervalued while many California cities were 40% to 50% overvalued. Most economists agree that the national market is adjusting back to value. This is why as California is going down, Dallas will be coming up.
NAR expects the national median price of homes to drop to $218,200 in 2007. In Dallas, where it's warm, wide-open, and there are lots of jobs, the median home price is going up. One of the few bright spots of the retreating housing market, Dallas is beating national numbers in jobs, culture, and inflation in terms of housing appreciation. And with a median-priced home only two-thirds the price of the national median at $156,000, the city is a screaming, stomping bargain.
Realty Times 10-13-2007
Look for an area of strong demographic growth.
Supply and Demand...The higher the population growth is the higher the demand for housing. Not surprisingly, population growth accompanies job growth.
The Dallas-Fort Worth area gained 842,449 residents from April 1, 2000, to July 1, 2006, the second-largest numerical gain of the nation's 361 metro areas, bringing the total population to about six million.
U.S. Census April 2007
Look for a strong, growing, and diverse economy.
Unlike Houston which is an oil city or Austin which is a tech city, Dallas is the most business diversified city in the state. This cushions the city from major industry specific economic fluctuations.
The Dallas-Fort Worth area added 91,500 jobs between March 2006 and March 2007, the largest numerical increase among the 12 largest U.S. metropolitan areas. The local job growth rate during that period was 3.2 percent, more than double the national increase of 1.5 percent, and total non-farm employment for the area stood at 2,915,000 in March 2007.
Bureau of Labor Statistics.
Look for an area of growing retirement population.
Retirees provide an area disposable income without taking a job. We consider retirees as bonus population. They buy or rent, infuse the economy with money but do not take jobs or populate the schools.
In 2005, Texas gained 27,000 new residents over the age of 65, bringing a total of $732 million in added income to the state. While that's less than half of Florida's gain at 68,000 new older population and $1.9 billion, what's significant is a large number of workers and retirees are not "following a job" to the state, but choosing to live there on Texas' merits. The retired population will more than double in the next ten years. Affluent retirees have disposable income. They also foster the creation of new businesses tailored to retiree specific needs.
Realty Times 10-13-2007
Look for new and substantial infrastructure changes.
Highways and other infrastructure changes almost always affect property value positively. Projects of these magnitudes don't happen overnight so get informed early and buy in these areas.
Click on http://www.keepitmovingdallas.com/ to see the newest Texas Department of Transportation projects for Dallas.
Only move into undervalued markets.
When incomes rise faster than home prices, the market becomes undervalued. Undervalued markets are the only place in which to invest. You help protect your investment from any real estate bubble and you help guarantee your long-term valuation.
Some Realtors say the smart housing investment money is starting to move out of the hot markets and is beginning to heat up cities no one has been talking about in a long time, like Dallas, Little Rock and Raleigh-Durham, all boom towns of yesteryear. Dallas is under priced by 11 percent and Austin by 5 percent.
Realty Times 10-25-2007
Always acquire a property with strong potential for appreciation.
Fortunes are made through appreciation. Positive cash flow aids in the ability to hold the property while it appreciates. Many investors purchased properties that had negative cash flows in the bubble areas, counting solely on appreciation, and are now in trouble. If it does not cash flow...Do not buy it. Dallas continues to be one of the cheapest big-city housing markets in the country, according to a new comparison of U.S. housing costs.
The snapshot comparison is based on the purchase of a 2,200-square-foot, single-family home with four bedrooms, 2 ½ baths, a family room and a two-car garage in a neighborhood that would appeal to relocating families. That house costs $302,198 in the Dallas area, compared with an average of $422,343 in the 317 U.S. markets surveyed.
Dallas Morning News 10-27-2007
Look for tightening vacancy trends.
Do not invest in a market saturated with income properties and no renters. Pay close attention to the new construction and vacancy trend cycles. Overbuilding increases vacancy rate but overbuilding is almost always followed by under building, to the great benefit of rental properties.
Renters filled almost 7,000 apartments since the end of June, according to statistics released Tuesday by apartment analysts at M/PF YieldStar Inc. The increase in net leasing pushed overall apartment occupancy in the D-FW area above 94 percent - the highest level in six years.
Dallas Morning News 10-26-2007
For more information about why Dallas is a great area to purchase, I highly recommend that you visit DFWHousingFacts.Org.
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