High School Grads

Congratulations to the Ursuline Academy class of 2010.
Yeah! One more across the finish line!

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Price vs Cost of buying a home

In a market where values are down, a buyer might believe it would be prudent to wait before purchasing. However, as many people have been discussing this past week - it is important to remember that the cost of a house is not determined by price alone. The cost of any large ticket item is determined by price AND financing.

Though interest rates for mortgages are at historic lows, there are no experts predicting that they will stay there. In fact, almost all experts have been saying that interest rates will rise significantly this year. However, several unexpected events (including everything from recent fluctuations with the Euro to the Gulf oil spill,...) have held the rates down. 

Every potential homebuyer needs to know that the cost of their new home could dramatically increase when rates raise - even if prices decline! Remember, a one percent increase in rates right now would wipe out a ten percent fall in prices.

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Bad Photos of Homes for Sale

I can't show you terrible photos of homes for sale in our local Multiple Listing Service. Apparently, those awful pictures are copyrighted and could really upset a few people who don't want their professional shortfalls made public.

So in an effort to poke fun at educate those folks selling their homes without an agent, I bring you:

Bad Photos of Homes for Sale that are not in our MLS 

The garage can be a handy place to store junk so that your home shows better. Just don't highlight the junky garage (or the scruffy dog and stolen drink machine).

Nice home office. Now if I could just find a place to sit .... that isn't made of porcelain.

Then there is this home. Not only plenty of seating, but a door too!

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The state of the Dallas Real Estate Market

The best indicator of the real estate rebound in North Texas are these statistics from the North Texas Real Estate Information Services.

This chart is compiled by the brilliant David Fair, who is a top authority on our housing market. As you can see from the past six years, if you're thinking about selling, this is the time to do it. Properties put under contract in mid-May will typically close in late June or early July - the peak time for closings.

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Too much staging

Staging a home is so important when selling. But here is where it goes too far.

If you want to make the potential buyers linger in a fabulous bathroom a little longer, try this Toilet Paper Origami. It's sure make them stop in their tracks.

Those fancy hotels will have nothing on your swanky bathroom.

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The return of bad real estate photos

That's right folks. I'm bringing back the awful photos of homes for sale in Dallas. I quit for a while but there are so many out there that the temptation to make fun of point them out is just too great. I'll have a few every Friday.

Here are previous bad photos for your review (and no, I did not take any of them): (just click on the name)

bad photos

more bad photos

terrible photos

really bad photos

horrible photos

more horrible photos

incredibly bad photos

awful photos

ugly photos

pitiful photos

the pits

bad keeps coming

bad to worse

they keep coming

and coming, every week

more awful photos

dreadful photos

horrid photos

bad photos of expensive homes

bad, bad, bad

lame photos

more terrible photos

worst photos

and they keep coming

August bad

really bad

better than nun

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At the worst, a house unkept

cannot be so distressing

as a life unlived.

Dame Rose Macaulay (1881 - 1958)


Of course, that's unless you are trying to sell your house.
Then, a house unkept is very distressing ... and stressing.

Least & Most Expensive Potential Sales

To follow up the previous year extremes, here is what you can currently purchase at each end of the sales spectrum in North Dallas.

Least expensive is this neat little cottage at 4306 Sexton Lane (just east of Midway and across from ESD) that can be had for $155,000. It's only been on the market 2 months but looks pretty cute.

You already missed this bargain at 6625 Walnut Hill (between Preston and Hillcrest). It finally went under contract after 2 years on the market. Originally listed for $250,000 and offering a discounted commission to  agents , it changed Realtors a couple of times with the price inching down before going under contract and then back on the market. Now it's under contract again with an "as is" price of $158,350 and a plea to "bring all offers". And no, I didn't misspell Walnut Hill. The address is actually on the MLS photo.

The most expensive properties on the market are a revisit from last year. The estate at 10660 Strait Lane is back on the market now for $14,995,000. Listed for a painfully long 709 days and reduced from $17,500, this property will eventually find it's dream buyer. It does have new photos and has been neutralized a bit from the original but too unique colors.

But the really most expensive home for sale is 6812 Hunters Glen Road. Again.  After 349 days on the market, the asking price is still $18 million. Its nice, but obviously not that nice since it hasn't found a buyer. The Park Cities location is fantastic, however the design is pretty taste specific - which makes for a harder sell.



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Least & Most Expensive Sales

Here is a snapshot view of the most expensive and least expensive sales in North Dallas this past year.

Sales in the area south of LBJ between Midway and Central Expressway featured a lovely Highland Park home at 3601 Lexington Avenue. The builder sold it in August for a nice $8,500,000 - just down from the asking price of $8,750,000 (which was down from the original asking price of $9.5 million when it was being built 2 years ago). Located on a prime half acre, this stunner is over 11,000 square feet of top quality construction.

And at the other end of the spectrum was 10407 Shadow Bend Drive (just northeast of Hillcrest High School and east of Preston Hollow). It sold in April this year for just somewhere around $159,000. The sales price was undisclosed but likely a little below $159k for this zero lot home. It was on the market just 2 days before an investor scooped it up and is making huge improvements to the existing skeleton of this property.


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Home descriptions translated

Don't you just love those oh-so-creative property descriptions?

There are many common phrases in real estate to describe a property and exaggerate highlight the positives. The Dallas area MLS limits descriptions to about 400 characters. A listing agent's job is to get the house sold and sometimes it can be difficult to fully describe the property in just a few words.

So we often see the same code words that most Realtors understand and many buyers should recognize too. Here's a little education in translating those home descriptions: 

Backs to Open Space = Future WalMart location

Motivated Seller = Desperate

Unusual = Weird

Priced to sell = Seller isn't budging on price

Cozy dollhouse = Tiny, cramped

Back on the market = Priced too high the first time around

No maintenance yard = Gravel or concrete

Priced below tax appraisal = Should have protested our appraisal

As is, where is = If you want it, you fix it

Price Reduced = Listed to high to begin with

Character = Older or strange or both

Classic = Traditional
Located in .... area = Located NEAR but not IN the better area

Easy access to major roads = Backs to highway

Close to shopping = next to the parking lot

Original condition = Home is covered in 70s wallpaper

Needs TLC, needs updating, needs work =  Needs a LOT of work

Lots of Potential = It's falling down

Diamond in the rough = Nothing nice to say about the house

On great lot = Bull doze it

No front photo of the house = Ugly

and my personal favorite ...

A Honey for the Money = I can't think of anything to say

Good Quote

Too many people are thinking of security

instead of opportunity.

They seem more afraid of life than death.

US Justice & Statesman James F. Byrnes

Year to Date Home Sales in Dallas

Residential home sales stats are in for April 2010 and the steady increase in sales continues. Meanwhile, prices are inching up from the tumble we saw this past fall and winter. Spring is springing!

April 2010 Statistics

(single family homes)

compared to one year ago

North Dallas (south of LBJ, between Midway & Central):
Number of Sales: 176 ( up 68% from 2009)
Average Sales Price: $747,401 (down 15% )

Park Cities:
Number of Sales: 209 ( up 94% from 2009)
Average Sales Price: $1,018,007 (down 5% )

Northeast Dallas (east of Central, south of LBJ):
Number of Sales: 160 (up 19% from 2009)
Average Sales Price: $250,022 (up 1%)

Northwest Dallas (west of Midway):
Number of Sales: 154 (up 35% from 2009)
Average Sales Price: $214,744 (up 3% )

Far North Dallas (LBJ to Plano from Central to Marsh):
Number of Sales: 250 (same as 2009)
Average Sales Price: $299,347 (down 3% )

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My property value went up?

Property tax appraisals are hitting mailboxes all over north Dallas this week with a great big thunk followed by horrifying gasps. I'm not the only one to open an envelope to an ugly surprise. The requests are already coming in to help friends and clients with their protests. Someone forgot to tell our local taxing authorities that we're in a housing recession and that property values haven't risen over the past two years.

As you can see from this piece of my tax statement, my property value has increased 22% in two years - according to our government appraisers. Seeing how I know a little something about property values in my neighborhood, I'm quiet certain this is incorrect.

Now comes the hassle of protesting my new valuation. Since I'm a Realtor in a slow housing market, I'll probably have the time. Double ouch.


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Ten Important Questions to Ask Your Home Inspector

1. What does your inspection cover?

The inspector should ensure that their inspection and inspection report will meet all requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed?
The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.

3. Are you specifically experienced in residential inspection?
Related experience in construction or engineering is no substitute for training and experience in the unique discipline of home inspection.

4. Do you offer to do repairs or improvements based on the inspection?
Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

5. How long will the inspection take?
The average on-site inspection time for a single inspector is at least two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.

6. How much will it cost?
Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $300-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. Home inspection fees are not regulated.

7. What type of inspection report do you provide and how long will it take to receive the report?
Most inspectors provide their full report within 24 hours of the inspection. I prefer inspectors who will verbally review their report on site immediately after the inspection and they follow up with the written report.

8. Will I be able to attend the inspection?
This is a valuable educational opportunity, and an inspector's refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert. Just remember to stay out of their way and don't slow or hinder the inspection.

9. Do you maintain membership in a professional home inspector association?
There are many state and national associations for home inspectors. Look them up and perform whatever due diligence you deem appropriate.

10. Do you participate in continuing education programs to keep your expertise up to date?
One can never know it all, and the inspector's commitment to continuing education is a good measure of his or her professionalism and service to the consumer. This is especially important in cases where the home is much older or includes unique elements requiring additional or updated training. The requirements for home inspectors today are much more stringent than they were 10 years ago. Hopefully, they make for better inspections.



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Inspection Day Tips

When buying a home, always, always, always get a professional inspection in the first 7 days after the contract date. And be prepared for a number of possibly unpleasant discoveries.

Here are some of my favorite tips to buyers taking that all important hard look:

1. Review the Seller's Disclosure. How old is the roof? Who installed the new air conditioning unit? When was that plumbing leak repaired? Ask for an explanation of anything that you don't understand.

2. Hire the best inspector possible. I've been through a lot of home inspections - as a buyer's agent, as a seller's agent, and quite a few as a personal buyer and as a seller. I seen a lot of home inspectors; some I would recommend and others I would not. An informed and active agent can recommend certified inspectors and their fees are all in close range of one and other. Never use an inspector whose company is also involved with making repairs.

3. Look closely at the big ticket items. Wall or ceiling cracks could be a result of normal settling or they could indicate major structural failures. Look to the professionals for guidance on issues like these. Often inspectors will suggest having qualified professionals evaluate some components in the house. However, they should be able to tell you which suggestions are merely standard (or state required) and which areas truly need an expert to take a look.

4. Don't panic. No home is flawless. Even a brand new home will often have issues that a good inspector will point out. In a verbal report, the inspector can give you a good idea of the overall condition of the property where any red flags appear. I like to ask, "If this were your home, would you be concerned about ....?"

If you are a seller, you may be sweating it out on inspection day. There isn't anything you can do about the inspection process, but here are some tips for sellers to avoid inspection nightmares:

1. Disclose, disclose, disclose. And when in doubt, disclose. Do yourself a favor and stay out the courtroom by disclosing all known defects or repairs to any potential buyers. If you don't disclose problems, the inspector will likely find them and then you may be faced with making the repairs or renegotiating the contract. And you'd be surprised how often the neighbors will let the new buyers know about the regular visits from the plumbing company or the previous flood.

2. Avoid renegotiating the contract if possible. It hard enough in this market to get a good contract. And now you've got the buyer’s home inspection to get past. Keep in mind that often buyers imagine repair costs to be higher than they really are. If you've disclosed repairs in advance, they shouldn't be an issue now. Make sure your agent knows what repairs may be lender required and when the buyers may be looking for you to fund an upgrade, not a repair.

On inspection day, the sellers should not be present, however the buyers should be there for the last 15 minutes of the inspection and go over the report with the inspector at the house that day.