There's no doubt you've heard about the housing bubble that started pushing the DFW Metroplex away from the affordable monicker that made the area so attractive for anyone looking to buy real estate. Believe it or not, there was once a time when investors could build a solid portfolio, corporations could relocate here and provide a good standard of living for their employees, and regular home buyers on the hunt for a home to call their own could find the home they want without the agony of competing against multiple offers on every. single. house.
However, as the saying goes, all good things must come to an end. Reports began to surface about the local market that were less than positive. Prices were rising faster than normal (52% from their low during the latest bust). The prices of homes dipped below their affordable index. Dallas-Ft. Worth was listed as unhealthy because the market was too hot. There came a point where the numbers showed it was cheaper to rent than buy a home in DFW. Based on what we were reading, it was nothing short of housing armageddon.
Of course we began to wonder. How high will it go? When will it burst? What will the fallout look like?
Fortunately, it looks like the deflating of the bubble is less apocalyptic and more like a slight correction to the trend line, bringing market back to a direction that's more sustainable. No bursting, no popping, just a little softening of the tension.
This sigh of relief comes from the latest Case-Shiller Home Price Index report from October 31, 2017. While prices were 7.1% higher in August than they were for the same period the year prior, it's actually the lowest increase in prices since 2013. That's four full years of year-over-year increases greater than 7.1%. In even better news, according to this Dallas Morning News article, growth in prices will continue, but at a less drastic rate.
In the Texas One to Four Family Residential contract for a resale, there is a section that is commonly referred to as 'The Option Period.' This section of the contract gives the Buyer a negotiated period of time to cancel the contract for any reason whatsoever. The Buyer must give a negotiated dollar amount as consideration for the option period. The Buyer and Seller can also negotiate whether or not to apply the option fee to closing if the Buyer follows through with the contract and goes to closing. This option period is generally used by the Buyer to get an inspection and perform any due diligence that must be done before entering into the phase of the contract that is very specific on conditions that would allow a Buyer to cancel a contract.
What's a typical option fee?
This number varies greatly depending on the value of the home and how negotiations go. For homes less than $500,000, we generally see this number to be $100 to $500. Homes above $500,000 but less than $1,000,000 generally see option fees from $500 to $1,000.
How long is the option period?
The timeline for the option period hinges on the dollar amount the Buyer is willing to pay for the option fee. The less you're willing to give as an option fee, the less time Sellers will be willing to take the property off the market. Most option periods we see are from 10-14 days. In the markets with higher demand, option periods are for less time and we've seen them tend to be seven days or less.
Can the Seller cancel under the option period?
No. The option period is for the Buyer to have the unrestricted right to terminate.
If the option period expires but the Buyer still cancels the contract later on for another allowed reason, will the Buyer get the option money back?
No. The seller is not obligated to pay this money back to the buyer if the contract does not close.
Termination Option from the Texas Real Estate Commission One to Four Family Residential Contract (Resale)
This contract can be downloaded here: CLICK HERE
Fun fact: This form was updated in 2015 to provide a deadline of 5:00 p.m. (local time where the Property is located), giving an end to 11:59pm contract cancellations and negotiations into the night to squeeze in before midnight.
This content is for informational purposes only and is not intended to be specific advice for your real estate transaction.
One of the first things most sellers think about when deciding to list their home for sale is the price at which they can list their home. The best way to come up with this price is to take a look at recent sales data, but the problem with most resources available to the public is their limited access to actual MLS sales data.
Even companies as notable as Zillow hint that their system is flawed. They just released a prize of $1 million to any person or team who can improve their algorithm to make their price estimates more accurate.
Many MLS systems keep their sales data private, especially those that are in non disclosure states like Texas. Non disclosure states do not require transaction sales prices to be made available to the public. Other non disclosure states are Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri (some counties), Montana, New Mexico, North Dakota, Utah, and Wyoming.
The solution to this problem is to get a broker price opinion. As a broker we have access to actual sales data and can get extremely targeted down to homes that are similar in size, features, and close to yours. At CrestEdge Real Estate, we take it a step farther and provide not only a price opinion but also:
If you're thinking of selling your home and would like a Broker Price Opinion, please fill out the form here and we'll get you a Broker Price Opinion and Market Report within 5 business days.
Broker price opinions are currently only available for the Dallas Fort Worth Metroplex.
Broker Price Opinion Disclaimer:WE WILL PROVIDE A BORKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL OR OPINION OF VALUE. In making any decision that relies upon our work, you should know that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.
CrestEdge Real Estate LLC provides the full services of a real estate brokerage while only charging a flat fee of $2,950 for the listing broker side* of the transaction. If your house sells for $250,000 and you paid an average listing broker commission of 3%, the listing broker fee to sell your home would be $7,500. At our flat fee of $2,950, you'll save $4,550 on the sale of your home. That's more money in your pocket for your next home.
The services you get with a full service listing include:
Want to save even more money and don't want a full service listing?
We don't believe in a one-size-fits all real estate listing option. If you want to handle more of the transaction on your own, we also offer flat fee limited service listings in addition to our Full Service Listing. With limited service listing packages ranging from $75 to $1,750, you can have your home listed on the MLS within as little as 2 business days. You pick the level of marketing and representation and only pay for what you need.
See all of our listing packages HERE.
*The Buyer's Broker/Agent fee is an additional 3% and is only paid at closing. We explain why it's critical to include that HERE.
The phrase, 'motivated seller' is a bit redundant. To some degree, all sellers are motivated to sell, otherwise they wouldn't have their house on the market.
Let's first turn the tables and put you, the seller, in the position of the buyer. You've been looking at homes and you find one that works for you. The seller or the seller's agent tells you they're 'motivated'. Now ask yourself, do you offer the full amount they're asking, or do you offer a little less since they're a little more desperate to sell? If you're like most people, you'll believe that you can come in and offer a lower amount and the seller will accept.
Revealing this information can also be a detriment to your positioning when it comes to negotiations after the contract is in place. During the option period, most buyers will do an inspection on the house and you'll enter another round of negotiations. They'll know they already have you on the hook with the contract and be more aggressive when it comes to repair requests on the house.
Now you're probably saying, "But I am a motivated seller and I desperately want to sell quickly! What do I do?"
The best way to get offers and not have to sacrifice much during negotiations is to prepare your house for showings and price it right for the market.
Stage your home to sell.
Our Home Selling Guide: Getting Ready to List offers great advice on staging your home in preparation for selling. Some quick tips are to start packing and declutter your home. Move furniture around so that each room has a purpose and that spaces are as open and as bright as they can be.
Price your home correctly.
Take a look at the market around you and be honest about the condition of your home and its upgrades compared to others. If you are truly motivated to sell, price your home slightly under the closest comparable listing and let the market demand work in your favor. Keep an eye on the market for any changes once your house is listed.
In conclusion, the phrase, 'motivated seller' is a bit redundant. To some degree, all sellers are motivated to sell, otherwise they wouldn't have their house on the market. There are ways to get your house the market attention it deserves without sacrificing your negotiating position. CrestEdge Real Estate offers sellers home staging consultations and market reports so that your home is set up to show well and is priced right for the market. We offer different listing packages depending on what kind of marketing and Realtor representation you want. Our Marketing Pro and Full Representation packages provide home staging and market updates at a fraction of the average Listing Agent fees.
If only there were a crystal ball to answer this question. As a real estate broker this probably the question I get asked the most. The general rule of thumb most people hear about and talk about is to sell in the spring when most people are buying. This means that you'd want to list your home sometime in March through May. However, what's surprising for most people to hear is the spring is actually NOT the most popular time people are buying. The best time to put your home on the market is late spring and early summer.
As you can see, the top months for sales are June, July, and August. May and September are close runners up. It's safe to assume that the majority of these properties went under contract 30-45 days before selling. Therefore, these properties most likely went under contract in the months of May through July. So if your goal is to get on the market when most people are putting homes under contract, we'd recommend getting on the market in May or June at the latest.
If you're interested in starting preparations to get your home on the market, just fill out your name and email below to get a link to download our Home Selling Guide: Getting Ready to List
We know that sometimes you're in a situation where you need to get your home listed on the market quickly. That's why we offer you different listing options that have a different speed associated with each. We can have your home on the market in as few as two days once we get your listing input sheet and any photos you want to have attached to your listing. See the listing options here:
This content is for informational purposes only and is not intended to be specific advice for your real estate transaction. If you would like the guidance of a Realtor who can give you specific advice for your particular real estate transaction, CONTACT US and let us know you'd like to upgrade your listing package to Full Representation. If you have already paid for a listing package, that money will be reimbursed to you upon the closing of your home with CrestEdge Real Estate LLC.
Home Staging Tips
by Jennifer Shannon, Real Estate Broker
Painting your home will accomplish a few things. First, when you pick a neutral color to go throughout your home, you'll make the space flow better and give it a feel of being larger and more open. I like these from Sherwin Williams that incorporate earthy hues with a touch of grey.
Buyers will add up everything as they're walking through your home and after they get the inspection report. You'll want to make as many repairs as possible before listing so you can avoid having buyers walk away feeling overwhelmed at any work that might involved with buying your home.
You can even do a pre-listing inspection to get started on your list of things to fix. That inspection report will need to be provided to any buyers, though they will still be encouraged by their Realtor to have their own inspection done. I once showed a house that had the pre-listing inspection report printed out on the dining table and a list of all of the repairs made, showing they'd fixed everything that was an issue in the inspection report. The buyers I represented were incredibly impressed by their meticulousness that they felt that home was well kept and a sound purchase.
You're going to be moving anyway, so you might as well get started on packing up to help give your closets and cabinets the appearance of having more space. One of the things I recommend home sellers do is go walk through a new construction model home. These homes are designed in a way that anyone could see themselves living there. Furniture is not crowded, bookshelves have minimal books, every room is clean and welcoming.
SCENTS THAT MAKE SENSE
You could go with the old-fashioned advice of baking cookies in the oven before showings so the house smells good. Surprisingly though, citrus smells are most welcoming because they're clean and bright without being overwhelming. Steer clear of any strong scents like florals or overly fruity scents or anything that overpowers a room. The point of a scent is that it is light and barely noticeable.
Houzz wrote a great article that covers more things to keep in mind when getting your home ready to list: READ MORE HERE.
Realtor.com released the Top Suburban Zip Codes based on listing price growth and market hotness metrics.
According to the study, the zip code of 75098, which is made up primarily of the cities of Wylie and St Paul, ranked #2 behind a suburb of Denver. Zip code 75098 has seen a household growth of 19.8% since 2010, the median days on market is 41 days and the annual price growth since 2013 is 18.7%.
As of February 14,2017, there are 134 active properties. The averages of the active properties are:
3 1/2 Bathrooms
2 Car Garage
Built in 2010
3,053 Square Feet
List Price $392,867
109 Days on Market
To see what's currently on the market in this zip code, CLICK HERE.