Mar 29, 2011

Spring 2011 and Dallas Buyers want ...

... it all!


And of course, I want to give it to them. Surprisingly, the inventory of homes for sale seems to be shrinking for this time of year. It will be interesting to see if folks jump into the selling market in the next few weeks.  [where: 75230]

Mar 27, 2011

The Power of Staging to Sell

Great staging helps sell homes. There really is no doubt about it. Check out these photos of my listing at 6522 Meadow Road that was staged by the talented Brenda Shute.
This was already a lovely home but now it really shines. The biggest difference is actually in person when you walk through the house. Interest has increased, the feedback is positive and we'll be getting an offer any day now.

Formal study or Living room now
formal area before
breakfast area after staging
breakfast room before (which was very nice)

Even though the owners have moved, staging makes this bare kitchen look inviting.
[where: 75230]

Mar 25, 2011

Craziest Dallas Real Estate Story in the past year

Sure 2010 was a bumpy year and we're glad to see it behind us, but this has to be the most bizarre sale I've seen in a while. This 14,280 sq foot home on prestigious Strait Lane was built in 2006 on 2 acres.
It was listed for an are-they-dreaming price of $12.9 million in 2008. The price was lowered as it lingered on the market and it was finally down to $6,9 million by mid-2010.
It sold in December 2010. The price was not publicly disclosed, but it was over $5 million.
The owners custom built this home based on a historic Louisiana plantation.
While it's not to everyone's taste, it was a nice place - pier & beam,  3 stories with an elevator, slate roof, 11 foot ceilings, 6 fireplaces, high-end finishes made of mahogany, marble, onyx, etc.

Here comes the crazy part.
Are you sitting down?

They're tearing it down!

That's right.
14,280 square feet built in 2006 and they're tearing it down.
A neighbor bought it and wants the land. They may keep the tennis courts, pool, spa, cabana, 4 car garage or monitored security gates.

But goodbye exercise room, game room, library, media room, ...

What a sad, sad waste.
[where: 75230]

** April 4 - Real Estate writer Candy Evans tells me they are thinking of keeping the main house and making it a gymnasium.

Mar 23, 2011

Should Young Adults buy a home Today?

There is a debate raging about the financial advantages and disadvantages of owning a home. Several financial 'experts' have done recent interviews about why home ownership is not a good investment. Professor Jack Francis, a former Federal Reserve economist, said in a recent CNBC article:
"For generations, parents and grandparents have been telling us that the way to get ahead was to buy a house and keep making payments with a fixed interest rate and after 20 or 30 years it would be way up in value and that was your nest egg in old age. You could either live in it rent free or sell it and use the proceeds to rent an apartment.”

He goes on to day that it “may become good advice 10 years from now, but right now it’s not.” And he tells his students that this is not the time to buy a home and advises them to rent instead. He bases his conclusions on a study he did looking at real estate from 1978 through 2008. In his study it showed that home prices increased annually by 5.7% and that the S&P 500 increased by 10.8%.

There are several things wrong with this analogy. First, his study covers a 30 year period which does not include the last 3 years. Looking at the same statistics since January 2000, we find that home values went up 42% while the S&P lost 4.7%. It all depends on the data you choose to use.

Most of these comparisons claim that putting your money into a different investment vehicle other than real estate is wiser. What they don't take into consideration is that the investor will still have a housing expense. You still have to spend money on shelter. You can't just take your money for shelter and buy other assets with it. How do you live in your 401k or IRA?

The government has driven mortgage interest rates to all time lows. You can still get a 5% rate and lock it in for 30 years. That may soon disappear as mortgage rates increase when the economy improves. Right now you can still lock in your housing expense for 30 years. Renting is like having an adjustable rate loan that readjusts every year. Which way do you think rents will go in the next 30 years?

Unlike rental payments that are gone as soon as you write the check, your mortgage payment is like money you put into your savings. While I don't think every American needs to be a homeowner, I believe that this is a great time to buy a home. And if someone graduating from college can afford to do it, they should. [where: 75230]

Mar 22, 2011

Remodeling Tips

While I love remodeling ideas and ways to save money, today I'd like to point out a few other important tips when you're taking on a home improvement project.

If you're doing some of the demolition yourself, living in the house during demolition or frequently inside the property while the remodeling is taking place - you should wear a dust mask or respirator when there is any chance of demolition dust. Simple precautions and a good dose of common sense can reduce the health risks during demolition - especially for children.

Hazardous particles can be airborne when carpets are removed, walls are sanded, or other older construction materials are removed. If your property was built prior to 1978, you need to take extra precautions against airborne asbestos from sheetrock and airborne lead particles from paint. A professional can test for asbestos.
Until the debris is removed, you should probably wear a HEPA mask any time you are in the property and wear disposable coveralls, protective gloves and shoes. Shower as soon as possible after construction dust exposure. Keeping the area damp during demo will help keep dust down.

Use plastic sheeting over doorways to contain the dust. Don't use exhaust fans because they're designed for vapors, not heavy airborne dust and particles. To prevent more dust from becoming airborne, vacuum it up using a shop vacuum instead of sweeping it. And when the project is near completion, make sure the entire area is cleaned including trim work over doors and windows, insides of cabinets, etc.

In Preston Hollow and the Park Cities, older homes are often torn down to make way for new, larger houses. If an old home near you is being demolished, you may want to take extra steps to protect your family's health from the demolition dust that may be drifting through your yard. [where: 75230]

Mar 18, 2011

Rate Your Agent

The California Association of Realtors is launching a pilot program for measuring real estate agent performance and customer service - a venue for agent ratings and reviews. The MLS in California's Silicon Valley will send clients of participating agents customer satisfaction surveys from a third-party vendor whenever a transaction closes.

Although it will be up to the agents whether the survey results are made public, brokerages will be able to use the client reviews to spot problem areas for agents. No word on whether agents will be allowed to respond to negative ratings.

There are currently some sites that Dallas consumers can go to rate their agents. Zillow.com, Homethinking.com and IncredibleAgents.com are some of them. The big difference in these types of sites and the new California rating is that this new MLS driven system uses an invitation-only, "closed system" to ensure legitimate responses are collected. The other big difference is that an agent can't pay to advertise on the site and increase their rating.

Most of the open, on-line rating systems produce only positive reviews and thus don't hold much credibility with consumers. They tend to make me both skeptical and nervous because public display of consumer reviews can be tricky. While positive reviews can be good for an agent's business, an unfair negative comment or smear can be damaging. Most sites do not have a process for an agent to dispute comments or  publicly respond to reviews. And just because an agent receives a good rating from a client, doesn't mean they have the expertise needed to excel in every market, property type, and price range. They may just have a big advertising budget.

The Houston Association of Realtors offers an agent ratings system that allows past clients to rank their agent using a star rating system. The program has been successful and agents can opt out of the system if they choose. Wouldn't it be nice to have this service in the North Texas area? [where: 75230]

Mar 15, 2011

When is it no longer a 'New Listing'?

One of my pet peeves is the 'new listing' sign or write up on a property that is no longer 'new'. Here is the perfect example -

This 'new listing' is a cute little house in my neighborhood that the agent has had listed for over 3 months. It has been on the market (with other agents) for more than 2 years now. The 'new listing' banner isn't fooling anyone and makes the neighbors wonder about the abilities of the Realtor.

Even worse that stale signs are descriptions in MLS that say "Hurry, this one won't last" or "Priced for a quick sale" on a property that has been on the market more than 150 days. I just read a property description today that starts off "Open Sunday October 3rd". It's March -get with the program.

I guess most sellers just don't look their house up online to see how it is being presented after a couple of months. But the sign in the yard ought to be a sign to the homeowners that something needs attention. Maybe it's just me. [where: 75230]

Mar 12, 2011

Early 2011 Dallas Real Estate Stats

Figures are in for residential sales so far in 2011 from the North Texas Real Estate Information Services. Here is a look at the January and February year-to-date numbers:

North Dallas (south of LBJ, between Midway & Central):
Number of Sales: 46 (down 16% from this time in 2010)
Average Sales Price: $711,532 (down 7% )
Average Days on Market: 169 (up 33% )

Park Cities:
Number of Sales: 74 (up 10% from 2010)
Average Sales Price: $1,070,664 (up 12% )
Average Days on Market: 115 (down 10% )

Northeast Dallas (east of Central):
Number of Sales: 54 (down 10% from this time in 2010)
Average Sales Price: $235,212 (down 8% )
Average Days on Market: 97 (up 31% )

Northwest Dallas (west of Midway):
Number of Sales: 49 ( down 9% from 2010)
Average Sales Price: $197,060 ( up 2% )
Average Days on Market: 96 (up 9% )

Far North Dallas (north of LBJ to Plano, Central to Marsh):
Number of Sales: 93 ( up 9% )
Average Sales Price: $312,153 ( down 7% )
Average Days on Market: 87 ( down 13% )

East Dallas (east of Central, south of Northwest Hwy)
Number of Sales: 166 ( down 19% from this time in 2010)
Average Sales Price: $280,392 (up 25% )
Average Days on Market: 106 (up 43% )

Mar 10, 2011

Time Period for Re-establishing Credit after Foreclosure

With so many foreclosures over the past year (and still to come), you have to wonder how it will affect those former homeowners. How soon with the folks who are being affected, be back in the market to buy a home? The rules can often change, but as of March 2011, here is a rundown:

Foreclosure - 5 year time period from completion date of the foreclosure (can apply up to 7 years)
  • To purchase another residence requires minimum 10% down payment with a minimum credit score.
  • No purchase of a second home or investment property permitted.
  • Limited refinancing is permitted depending on eligibility requirements at the time.
  • No refinancing permitted that allows cash-out.
Deed-in-Lieu of Foreclosure (voluntarily giving the keys back) - 4 year time period from date of deed-in-lieu executed (can apply up to 7 years).
  • May purchase another property with minimum 10% down payment or greater sometimes.
  • Limited refinancing permitted depending on eligibility requirements at the time.
Preforeclosure Sale (short sale, ...) - 2 year time period from completion.
  • Requirements vary from lender to lender.
Keep in mind that there can be other credit issues outside of foreclosure or short sale that can affect someones ability to qualify for a loan. And each lender makes their own call on their lending policies and to whom they want to extend a mortgage.

Bankruptcy - 4 year time period from discharge date or dismissal date of bankruptcy action

Chapter 13 Bankruptcy - 2 years from discharge date or 4 years from dismissal date

Multiple Bankruptcy Filings - 5 year time period from most recent discharge or dismissal date.

As always, the interest rate for a mortgage you may be seeking is a reflection of your credit scores and financial statements. Typically, the better your financial health, the better your interest rate.  [where: 75230]

Mar 9, 2011

Today is the last date for Appliance Rebate

If you're looking to take advantage of the Texas Appliance Rebate program, TODAY is the postmark deadline to apply for the rebate.

So if you've purchased a qualifying appliance and haven't sent in the paperwork, get it done today. [where: 75230]

Mar 8, 2011

Flooring to make your House look Larger

Choosing the right flooring can improve the apparent size of a home. If you're preparing your home for the market, keep these tips in mind:

1. Use lighter colors. Lighter makes the space look larger. The same goes for walls.

2. Use wider planks. Wider makes the space look larger. The same goes for tile; larger tiles make the space look larger. Conversely, parquet and small tiles make the space look smaller.

3. De-clutter. The more open space readily visible, the larger, cleaner, and neater the space will look. Remove some of the knickknacks and maybe even a piece of furniture that's not necessary.

4. Use the same flooring material and color across rooms. Whenever possible, continue that same surface from room to room. By continuing the same surface, you connect the space and it just looks larger. Be consistent and make the rooms appear seamless.

5. Lay your floor on a diagonal. Whether you have tile or hardwood, this will make you space look larger as it carries your eye along the longest length. It will also make your space look more visually interesting. Note that occasionally when the space is very rectangular, a straight lay across the longest length is a better option, but most often, a diagonal is the better choice. [where: 75230]

Mar 6, 2011

Real Estate Photo Hall of Shame - March

Does this photo make my butt house look big?

Actual photos from homes listed for sale in our MLS (not mine).

Mar 3, 2011

Are Your Neighbors Helping or Hurting Your House Sale?

You can change a lot of things about your property in order to sell it in the shortest amount of time for the highest dollar possible. Unfortunately you can't change the neighbors like you can paint colors. Love 'em or hate 'em - you're stuck with 'em. And they definitely affect the value of your property.

Whether you like them or not is not important. What matters is how they affect your ability to sell your property.  Ideally you want quiet folks with an immaculate house and a team of lawn professionals who keep up the perfectly manicured grounds. It doesn't matter if Gladys Kravitz lives next door - if she brings in every one's newspapers and keeps junk cars at bay - we love her. Tidy, considerate, house-loving neighbors can help you sell your home.

It's the messy, uncaring, wacky, or -dare I say- poorer neighbors that should concern you. While they may be wonderful people, they may also be hurting the sale of your house. From the curb, the neighboring homes should look as nice as yours. No weedy, overgrown lawns or gardens. No old, junky cars in sight. And the thing that will really hurt your sale - no barking dogs.

When prospective buyers are considering your house, they're going to visit the back yard. If a neighbor dog starts barking at them, it might as well be yelling "leave, leave, leave". And they will do just that.

If the neighbors are devaluing your home, there isn't much you can do about it, but you can try. The first step is to communicate. Visit with them or write them a note and explain that you are trying to sell your home and you hope to get the most money possible from it and which would keep everyones property values up. They may not be aware that what they are doing could hinder your sale. Explain it in a nice, reasonable and tactful way. I've done this for clients. Usually there is some improvement to the situation. It doesn't hurt to try and it can make the difference in a smooth sale or a long wait. [where: 75230]

Mar 1, 2011

Do you have recalled products in your home?

Find out at the Consumer Product Safety Commission website http://www.cpsc.gov/. It lists recalled products ranging from an Energizer nightlight, to a Kidde brand smoke alarm, to a Crane whirlpool bathtub. The site also contains contact information for the manufacturers for a repair, replacement, or refund.