Theory vs Reality

In theory, there is no difference

between theory and practice;

In practice, there is.

Chuck Reid

[where: 75230]

Six Weeks and counting

Remember that big snow storm almost six weeks ago? Many of us lost big branches, a few trees, electric power, etc.

My neighborhood in Preston Hollow is still waiting for the city to pick up the debris from the fallen trees. I think we've all been pretty understanding and patient with the city about removing the bulk trash at the curb. But six weeks seems like enough time to get this mess cleaned up.

My tulip blooms have come and gone while the wall of dead limbs remains between my home and the street. I hope this mountain of lumber disappears before it kills the spring grass. UPDATE: I just read that the city has hired extra crews to pick up the debris. And it only took a month ... or so. Lets just hope a really big disaster doesn't hit Dallas any time soon. We could all be living in FEMA trailers for a decade.

[where: 75230]

How and When to Change Realtors

A lot of folks don't realize when they can and should change agents. Typically when you list your home for sale with a brokerage you agree to a 6 to 9 month period in which the agent will market your property and (hopefully) sell it. And you usually need to give a good agent the time it takes to get your property sold.

However, sometimes things don't go like you thought they would and you need to change agents. When cancelling the listing agreement (and there is a standard Texas real estate form for this), the sellers may or may not have to pay the agent for expenses incurred so far. These can include fees for MLS input, photography, printing, advertising, etc. Sure, sometimes breaking up can be hard to do. But in real estate, it is actually pretty easy. Its a simple form.

Before changing agents, its important to look at why your property hasn't sold yet. Often the problem is not the agent. Thankfully my clients are as loyal to me as I am to them, so this hasn't been an issue. But it is for a lot of sellers in Dallas. This DMN story features some tips and good reasons for changing agents. And it also explains why I love to be the 2nd or 3rd Realtor to list a home for sale.

[where: 75230]

Would you rather live in Las Vegas or Dallas?

I love Vegas. But I wouldn't want to live there. If for no other reason than their turf laws. That's right ... turf.

On one hand, I admire their water conservation efforts. We all need to help conserve water and some cities offer financial incentives to combat water shortages. But in the Vegas area, building codes also stipulate that new homes can not have any lawn in the front yard and only 50% lawn in the back. Rock seems to be a favorite choice of ground cover. After all, it IS the desert.

Personally, I think I'd have to go with artificial grass. Some how, I can't picture kids and dogs frolicking around a gravel yard. Mowing would be obsolete and raking might be easier. But I wonder how it would effect rain run off and street flooding? We get hot in Dallas and need to watch our water use, but we get our share of rain.

Vegas is great, but I prefer the grass under my feet ... right here in Dallas.

[where: 75230]

Is Real Estate still a good Investment?

Now more than ever! If you follow the investor's motto of "buy low, sell high", this is the time to really invest in real estate.

But don't take my word for it. Check out these figures from Case Shiller that show the performance of investments over the past decade.

[where: 75230]

Who do you hang with?

"You are the average of the five people

you spend the most time with."

... other than relatives. Think about those 5 people and if they aren't who you want to be, change who you hang with.

[where: 75230]

Feedback - What EVERY home seller needs to know

Knowledge is power. And every seller needs the knowledge of what buyers think of their home.

I ask for honest feedback every time a potential buyer visits a property that I have for sale. And when I'm showing my clients homes for potential purchase, I provide feedback to the listing agent (if they ask for it).

Feedback is important. Its designed to help you sell your property. If you're a seller and 5 out of 10 feedback responses say that the carpet needs to be replaced, then guess what is keeping your property from selling? The ugly carpet.

Keep in mind that everyone has an opinion and while one family hates the kitchen, another loves it. But look for trends in the responses of potential buyers and agents who view your home. It should guide you as to how you compare to other homes in the same area and price range. Almost every buyer compares homes before buying and you need to know how you stack up against the competition. If you need to sell a house in this tough market, you need the feedback from buyers who are comparing your property with the competition.

Keep in mind that most people are polite and don't want hurt anyone's feelings. If the owner is present for the showing (or the property is for sale without an agent) don't expect honest feedback. Folks are just too reluctant to criticize the owner's personal taste. Instead of saying 'yuck, this carpet is hideous' they'll say 'it is not our style'. Fortunately, when agents know each other well, they'll give pretty honest feedback to each other.

If your property is for sale, get that honest feedback. Not everyone will give it, but you should insist that your agent gets responses from most showings. And don't be offended by it. If your late mother decorated or you spent hours choosing the cabinets that everyone hates - please realize that the comments are a reflection of what most buyers do and don't want. Take it with a grain of salt. Change what should be changed and do what it takes to get your property sold.

If your property has been on the market more than six weeks and you don't want to hear negative comments, then price it low enough that the condition won't matter. Find out what homes in your neighborhood are selling for per square foot and price it 15% less.

Honest feedback is your friend. And listening and acting on that feedback is crucial to making a sale.

[where: 75230]

Closing delays slow home sales

Its happening to me and dozens of agents selling higher priced homes. And its creating havoc with buyers and sellers. Delays in closings caused by mortgage companies are happening in the majority of our transactions right now.

In the past, when a contract was written to purchase a home the typical time to schedule closing in Texas was 30 days. Texas real estate contracts stipulate an exact date to complete the transaction. Buyers and sellers alike start planning their lives, hire movers, schedule utility transfers, contract to move in and out of their new and previous residences, etc.

However, recently closings are going beyond the contracted date due to delays in funding. The mortgage companies are taking so long to approve jumbo loans that closing dates are being moved back 7 to 14 days. Sellers have their things on a moving van and the utilities off at their home waiting for the underwriters to give approval. They can't close on the next house they are buying because they don't have the current one completed. They are likely incurring additional costs for carrying the current home and delaying purchasing the next home. And no amount of begging, bribing or threatening will speed up the buyer's lender. Meanwhile, the buyer can't take possession of the property and also can't do anything to speed up the lender.

I don't know how to fix this nightmare, but something needs to be done. Our government has such control over the mortgage industry right now that layers of red tape have made things worse. We've gone from too lax lending to unreasonably difficult lending. Banks have been forced to delay foreclosures and collections of default mortgages to help 'keep people in their homes'. As a result they are a bit gun shy about making mortgage loans. And who could blame them?

However, when you've got a ready, willing and able seller paired with a ready, willing and able buyer - who is well qualified for the loan - it shouldn't be this hard. The entire issue is long and complicated. I only hope that, like the short sale process, they get it together and figure out how to make it more manageable. Meanwhile, Realtors and Title Companies have upset sellers, upset buyers and need a prescription for Valium.

[where: 75230]

quote on the economy

For all the doomsdayers:

If the world economy really collapses -

don't buy gold.

Buy guns and whiskey.

They might be more useful.