Reader’s Question:

I am thinking of buying a new house here in Texas. But before I do that, I have to know which upgrades are the best. What should I go for?

Cyrus

Dallas, TX

As with any investment, you should be 100% sure that you would be receiving the fullest satisfaction before putting out money. So, how do you do this?

First, you need to have certain goal in mind, whether you are buying the house there in Texas to be home to your family or whether you are just planning on buying it to be an investment. You might not be aware of it, but these little differences in your goals have a very large influence.

What you have to remember is that, for the most part, upgrades are done by builders for the main purpose of fulfilling the clients’ needs when they buy a house. Upgrades may be highly profitable for builders, but maximizing the value of a house just comes in the peripherals.

But then again, as I have said, it highly depends on your goals.

If your goal is to indeed maximize the value of the house you would be investing on, you should purchase that which is small or medium in square footage and just spend lightly on the upgrades.

Now, on the other hand, if you are buying the house to be your future home, what you should be worrying about is the quality of life you shall be having in this new house. So, your upgrades will depend on this.

To end, the best upgrades depend on which goals you have in mind. In any case, it is highly recommendable to upgrade the carpet and padding whichever your goal may be.

Tags: real estate, Real Estate

Reader’s Question:

I am trying to sell my house. It has been more than six months and it’s still in the market. Do I need to lower my price?

Amy

Dallas, TX

Amy, there is nothing to be really concerned about. There is nothing wrong with your house, the price of your house or with the real estate market of Dallas, TX. Unarguably, things are not the same as before but the real estate situation here in Dallas is doing much better than the other states. A house sitting for a few months in our real estate market is nothing to be alarmed about when you consider that the East and the West Coast are not doing so well. With their market, a one year waiting is not a very unusual. And we’re not talking about posh, high-priced homes here. We’re talking about reasonably priced properties. To compare, a lot of real estate properties (condo buildings) in Florida and Arizona are still unsold after sitting in the real estate market for a very long time. Real estate researchers say that Texas has several positive economic factors that support out real estate market such as affordability, reasonable cost of living and employment opportunities, among other things. It’s a given, the Dallas, TX real estate landscape is not as robust as before considering the events that have been and are happening but considering all these, we are still doing okay.

Tags: dallas real estate

Reader’s Question:

I live in Dallas, TX. I’m planning on selling my house. Do I need an inspection? How do I go about it? Do I need an inspector since I’m not buying one but selling it?

Marcus

Dallas, TX

Most people think that only house buyers need inspectors. If you plan on selling your house in Dallas, TX, a house inspection is a good idea and can definitely benefit you. If you had your house inspected before selling it, then you would know in advance the things that the buyer’s inspector will find. Knowing that, you could do repairs or, at least, know what questions to expect and the answers to give your prospective buyers. Having your own inspection prepares you for what might come your way.

Here are a few things that would help you make the buyers’ inspection go faster and better: Make sure that the essentials like gas water and electricity are on and okay because when the inspectors and buyers arrive, they will definitely look for that. Make sure all your light bulbs/fixtures are working. Check your safety fixtures like smoke detectors, etc. and make sure that they are in good working condition. Check if the places that the inspectors and buyers need to go are unlocked or easily accessible. Remove barriers or locks. Of course, repair the little things that were noticed by your own house inspector like rain gutters, knobs and locks, window screens, faucets and others.

Tags: dallas real estate

Reader’s Question:

I’ve recently relocated to, and am looking into buying some properties in Dallas, Texas, to be refurbished then leasing out these properties mainly for residential use. Is Dallas a good area to invest in residential properties?

Ricci

Dallas, TX

The Dallas- Fort Worth area is still a growing area for business, being the third most popular destination for business trips, this means that there are a lot of companies still looking to invest and setup business in Dallas, Texas. More Business means more jobs and the need for more workers and they would all need somewhere to live or relocate, so being in the forefront of investing in real estate properties while market prices are still relatively low is definitely a good idea.

If you are looking into investing in real estate to be rented out then you may want to look at choosing an area either near or easily accessible to the commercial area, or you can choose to invest in properties for college students who prefer to live in single-family or multi-family dwellings while attending the many colleges and universities located around Dallas. There are a lot of websites dedicated to real estate and economic growth sectors in Dallas and other cities in Texas. Determine which sector in Dallas is experiencing or is foreseen to experience rapid growth then look for affordable properties near these sectors you can acquire. You can either leverage an attractive but easily accessible location for a higher rent price or choose to offer affordable housing to attract renters and grow your business.

Tags: Dallas Real Estate, mortgage rate, real estate

Reader’s Question:

What risks am I facing in buying a foreclosure at an auction here in Dallas, Texas?

Michael

Dallas, TX

Buying a foreclosure property at an auction there in Dallas, Texas would be the riskiest way to purchase a property. At any auction, you almost have no safeguards or protection. This is most especially true in case you do not have escrow, estate agent or a title report. Furthermore, you will not be allowed to inspect the property and therefore, you have no idea or warranty on its condition. Also, the auction might be an all cash transaction that you have to complete in a week to a month.

In case the property is occupied, it could take months to evict the tenants. Tenants could also steal from the property or vandalize before eviction. Also, the former owner could sue you to overturn the sale, particularly if you flipped the property for a nice profit. Buying a foreclosure property could be rife with risk but it could also have great rewards. You could minimize risk by fully understanding the foreclosure process.

Tags: Dallas Real Estate, foreclosures, real estate

Reader’s Question:

I am looking for an investment opportunity in real estate here in Dallas, Texas and I plan to buy a pre-foreclosure property. Do you think it would be risky if I buy a pre-foreclosure?

Jenna

Dallas, TX

Buying a pre-foreclosure property in Dallas, Texas is kind of riskier than buying a real estate owned. An example of the risk you might take is that the desperate sellers could lie to you about the condition or the presence of liens on the property. The thing that you would really have to pay close attention to is if the seller has entered bankruptcy. If the seller has already been in bankruptcy, the deed might not be valid unless it has gone through bankruptcy court. Furthermore, even if the seller files bankruptcy after the sale, you might have to deed the property back to the seller up to three years after the sale.

Investors certainly do hope to purchase foreclosed properties well below market value. If the seller is already under bankruptcy, the bankruptcy trustee could claim that the sale was a “fraudulent transfer” that was not fully valued to pay off creditors, and this will force the deed back into the bankruptcy estate. To lessen these risks, you can get an inspection, use a knowledgeable escrow agent and look at the property yourself.

Tags: Dallas Real Estate, foreclosures, real estate

Reader’s Question:

I’ve recently put my Dallas TX town home up in the market. A friend suggested a good real estate agent to help me sell the house but he wants me to sign an exclusive contract with him for 6 months. Question is, do you think that this is gonna be a good idea?

Jonas

Dallas, TX

Unless you have had a good working relationship with this real estate agent before, I suggest that you do not go into any long-term exclusive contracts with any real estate agents. This is basically just an assurance for the agent that he/she will get a sale but that does not necessarily guarantee that you will benefit from it. A good real estate agent does not need to rely on a long term commitment with a seller since they have proven themselves able to close deals without it.

The biggest downfall of going into a long-term, exclusive contract is that if the agent doesn’t go through with what was promised or agreed upon initially or loses the initial enthusiasm they had to sell your property, then you are stuck with the same agent, not to mention a house you’re probably still paying mortgage on, waiting and wondering when you will get the house sold, when another agent there in Dallas, Texas, could have closed on a deal already. If you have to, you should only agree for a contract for up to 60 days, if they’re as good as they say they are then it shouldn’t take that long for them to sell the property for you. Make sure you read the fine print and understand and ask as needed, before signing anything. Do not pay anything in advance as well, real estate agents already get commissions so the only way they should get paid is if they actually do the work and sell your property.

Tags: Dallas Real Estate, mortgage rate, real estate

Reader’s Question:

I’m planning to sell my Dallas TX Condominium and this is the first time I’ll be dealing with a real estate agent, how do I know I’m getting the right agent?

Cornell

Dallas, TX

Before agreeing on anything or signing any long term commitments or exclusive contracts, it is a good idea to get some background information about the real estate agent you’re planning to hire there in Dallas, Texas. Of course, make sure to check if they’re license is still up to date, you’d be surprised how many people tend to forget doing this. Know if they work part time or full-time, if they’re working part time then good chance your house will be marketed part-time as well. Also get an idea as to what type of training they take to stay current, especially for marketing properties on the web.

Determine if they can agree on a lower commission since this could mean thousands of dollars worth of savings for you. Ask for a list of properties they’ve sold, as well as details on original prices, how much they’ve sold and details on the house since this will also give you a good idea how well the real estate agent does in selling properties. Most importantly, ask the agent to tell you specifically how they plan to market and sell your property and specifically which channels, thought the web or through publications, they can market your property. You want as much buyers as possible to know that you’re selling. Finally, although try not to bring it up, but ask if they will agree on a contract 60-90 days or less, some will force you to sign an exclusive contract for 6 months to a year but if they’re really as good as they say, it shouldn’t take them that long to sell your house wouldn’t it?

Tags: Dallas Real Estate, real estate

Reader’s Question:

I need to sell my house here in Dallas, Texas since I got a job in a different city, I already got a broker to do this for me but any tips to make sure I get the best deal?

Samantha

Dallas, TX

Good idea in getting a broker or real estate agent for selling your property, you would want as much buyers in Dallas, Texas as possible to know that you’re house is on the market. The success of you sale and how your satisfied with the deal you got is still largely depended on how well your real estate agent sold the property for you. My first advice is to never let your real estate agent know that you are desperate or in a hurry to sell your property. You will not get the most out of the value of your premise since you might be quoted a lower selling price for your property just so the agent can make a quick sale.

It is also a big mistake to sign an exclusive contract with an agent. The only deals you will get are whatever the agent can get for you which might not be the best out there. Make sure you get a real estate agent whose personality you like since you will be partnering with this person and you want an ally, not a bully, in helping you sell your house. A good real estate agent will guide you and give you advice on how fast you can sell your home & give you references where the quoted selling price was based from. They can even help point out things in your house, dead bugs, broken AC etc. that might break the sale on an interested buyer. If your broker is from a reputable firm in Texas then you shouldn’t have too many difficulties selling, otherwise try to get one that isn’t doing this for part time work only or relying too much on commissions, you want a professional not a sales agent.

Tags: Dallas Real Estate, real estate

Reader’s Question:

Is it a good idea to try to find and buy a house on my own here in Dallas, Texas? I’ve dealt with real estate agents before and the results have been, to say the least, less than spectacular.

Lorraine

Dallas, TX

I agree, there are as much benefits, as there are pitfalls in deciding to hire a real estate agent when you are purchasing a house. For people looking to buy a house instead of selling one, such as in your case, would not have to rely on real estate agents as much. Based on your previous experiences, I’m sure you already understand that not all real estate agents have your best interest at heart. These people have affiliations and work on commissions so expect that they already have a line up of properties for you that may or may not be the best out there for you.

My advice is, choose a good real estate attorney and I advise you against letting a real estate agent choose one for you. For experienced buyers, the only real reason to get a real estate agent is to help you get into those lovely gated communities or to unlock the key on that empty house you’re interested in. Everything else can be handled by your real estate attorney. There are benefits in hiring a real estate agent however, as long as you are able to get a good and honest one. Bottom line is, it is not necessary for you to get a real estate agent if you are buying and you know where to look for houses to buy, otherwise you’re better of getting a real estate agent from one of the bigger, more reputable real estate companies there in Dallas, Texas, since they will likely have more professional agents that can actually make it easier for you to buy a house of your liking and also facilitate the closing process better.

Tags: Dallas Real Estate, real estate