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 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 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

Reader’s Question:

Our family is originally from New Hampshire which is considered as a tax free state or a state where tax burden is lighter, so to speak. That’s why when I got married and moved to Dallas, everything seemed so new to me. My husband usually travels overseas. I am now obliged to check on domestic affairs and have come across on issues about real estate taxes. What is property tax and who decides how much the property tax will be?

Samantha

Dallas, TX

Property tax is an “ad valorem” (based on the value) tax imposed on persons because of their ownership or possession of property and is measured by the market value of the said property. Let’s classify the types of property, which is divided into two categories:

• Real property- includes land, anything permanently attached to land (e.g. houses), improvements to land, structures, and certain equipment affixed ; immovable manmade objects.
• Personal property -the primary characteristic of personal property is its mobility. Examples of personal property include furnishings, machinery and equipment, fixtures, supplies, tools, cars, boats, livestock, personal effects and household goods.

Perhaps you are also wondering how tax is determined, right? Well, the tax rate for residential property is determined by taking the residential share of the property tax levy (the amount of the total tax dollars to be paid by residential owners) and dividing that amount by the total assessed value of all residential properties. Tax assessors determine the market value of each and every parcel of property in the city and decide how much the property tax will you’re your tax district determines the amount of money needed and makes computations on the tax rate necessary to raise that money. Property tax due on an individual property will be based on the combination of tax rates and the appraised property value.

Tags: dallas real estate, Real Estate

Reader’s Question:

My brother bought a house 3 months ago in Texas but it seems like he was not able to get a good deal, contrary to what he thought he had when the house was offered. Right now he is placed in an unconventional situation and his expenses are way beyond what he expected. I am planning to buy a new house too but I don’t want to make the common mistakes that my brother did and be sorry later on. What do I need to avoid then?

Valerie

Dallas, TX

In every transaction, it is always important to” look before you leap.” This may be a cliché to some but I strongly believe that it should still be a rule of thumb. The biggest investment you’ll ever make is purchasing a new home and because there are the numerous factors to consider it is essential to prepare as best you can. The best preparation therefore is to avoid the common mistakes in buying a house, so …

• Avoid looking for a house without being pre-approved - this is very important because pre-approval gives you an exact price range for your purchase and will also add a great deal of strength to your offer.
• Avoid stretching your house-purchasing ability- is a smart homebuyer. Forcing yourself right up to or beyond your financial limits is unhealthy, so don’t overbuy.
• Avoid shortcutting the inspection process- don’t purchase a home without professional inspections, unless you’re buying a new home with warranties, it is highly advisable to have a thorough home inspection.
• Avoid signing documents without reading and making verbal agreements- whenever possible, review all documents in advance and know the specifics of your transaction as well.
• Avoid choosing the wrong realtor / real estate agents - as a potential buyer , you might be better off having an agent representing you exclusively, don’t use a dual agent. Be cautious when selecting a real estate agent. Don’t hesitate to ask them key questions. Make your purchasing experience the best it can be, so it is crucial that you select the best agent who can help you out with a very good deal.

Again, it’s still best to do your homework be prepared and to be more objective. Try to scout and shop to find the perfect house for you; just remember that if something is questionable, it isn’t perfect. So avoid the common drawbacks.

Tags: dallas real estate, Real Estate

Reader’s Question:

When I mentioned to my friends and co-workers that I wanted to apply for a home loan, I was literally swarmed by phone calls from lenders and it seems like there are just as many lenders as there are loans. It’s very challenging for me to decide. Can you tell what do I need to consider when comparing loans in Dallas?

Arthur

Dallas, TX

Yes, you are absolutely right when you said that there are just as many lenders as there are loans. When you are given hundreds of choices it may seem overwhelming at first. When you compare loans, it can be very tricky because there are so many types available. But it’s good to know that you have different financing options to choose from.

There are important factors to consider when comparing loans such as: interest rates, required down payment, loan-related fees, point (a one-time charge by the lender for originating a loan. A point is 1 percent of the amount of the mortgage), pre-payment penalties (A fee that may be charged to a borrower who pays off a loan before it is due) and conversion options (like converting an adjustable to a fixed-rate mortgage).
You may also investigate the requirements for qualifying for each loan. These requirements usually include: your credit score limits, your cash and credit reserve requirements and loan-to-value ratios (the relationship between the principal balance of the mortgage and the appraised value/ sales price of the property).

To simplify, you need to check of the following when comparing loans: lower interest rates, lower loan fees, minimal features, less flexibility and no additional repayments.

Arthur, you also need to know about the lock-in period. This is the time period during which the lender has guaranteed an interest rate to a borrower .If you’re comparing lenders, be sure you not to compare apples to oranges, meaning the type of lender versus the type of loans. The process however is process quicker and easier if you have a crystal clear picture of your finances. Plan ahead and decide on what kind of monthly payment fits your budget. By then, you can easily eliminate loans and lenders that are not suitable for financial needs in Dallas.

Tags: dallas real estate, mortgage rate, Real Estate

Reader’s Question:

A friend of mine mentioned about refinancing my home in Dallas. As a long time homeowner I can’t remember the details of my current loan, including the exact interest rate. I actually don’t have a broader idea about it. When do you think should I refinance?

Amanda

Dallas, TX

First, we need to know what refinancing means. To “redo” or to “re “finance is to basically redoing your original financing. It also means extending the existing loans or replacing existing funds with alternative borrowings, which may be at different interest rates. It can either be for longer or shorter terms.

There are various reasons one would refinance. One is possibly to switch from an adjustable to a fixed mortgage, to lower you interest rate, to obtain money from the equity in your property, or to consolidate debt through cash out, etc. However, you need to do your homework first before deciding to refinance. An important factor is the difference between current interest rates and the rate of your original loan. You also need to assess the amount of time it will take to recover the costs of refinancing.
These are the common reasons when to refinance:

• To lower monthly mortgage payments
• To convert an adjustable rate mortgage to a fixed-rate mortgage
• To raise funds for family expenses
• To pay off high-interest loans
• For home improvements

Just bear in mind that you should refinance your home in Dallas Texas if interest rates fall more than 2 points below your existing mortgage rate. This is because refinancing usually involves mostly of the same closing costs as the original loan. If it’s less than 2 percent, the savings on your monthly mortgage payment is rather insignificant. When a drop in interest rates is sufficient to repay the costs of a refinance in a reasonable period of time, then you should refinance. It’s a good thing that there interactive calculators in the Internet to help you come up with a decision.

Tags: dallas real estate, mortgage rate, Real Estate

Reader’s Question:

My wife was recently promoted and will be based in New York. We are going through a lot of big decisions right now and that includes selling our house in Salt Lake. But with our busy schedule and our hands full on the move, we really don’t have the time right now to focus at the selling process. I want to learn more about hot or cold market and comp? What are these selling terms?

Calvin

Dallas, Texas

I do agree that the largest business transaction most of us will ever make is selling our own house. The process can be time consuming and very complex. It would also create a lot of anxieties and questions. You may wonder how much your house is really worth - did you set the price too high or too low? It is your main responsibility though to arrive at an accurate estimate of value. So you need to ensure a detailed evaluation and analysis on every part of your home. This is important to get the true value of your home under current market conditions.

A “hot” market is termed where there are more buyers than sellers, so the buyers are competing with each other and driving up prices. A “cold” market on the other hand is one with more sellers than buyers, so the buyers can be choosy and bid low. So, the hotter the market, the more aggressively you can price your house. It’s best to do it in a “seller’s market” if you can choose when to sell - this is when the number of available homes is low in relation to the number of buyers.

A “comp” means comparable sales. It refers to recent sales of similar features of properties in nearby areas and is used to help determine the market value of a property. That is why the best source of pricing information comes from houses directly comparable to your own.
It would be better if you can personally put a figure on how much your house is worth. But if you feel like you really need help, you can seek out assistance from a reliable team of realtors or commission for a real estate agent.

Tags: advice, dallas real estate, Real Estate