Bottom of the Real Estate market has Passed

"Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."

--Warren Buffett, American business magnate

The buy low, sell high mentality of successful investors is the key to real estate success as well. With home prices on the rise, the "buy low" opportunities are slipping away. Most savvy buyers seem to be finally realizing there are some very nice homes out there at some very nice prices.

The latest evidence came when home sales shot up in June and July while inventory continues to fall. Anyone contemplating a purchase should not dally. Median prices of homes are on the rise.

Mortgage rates are also rising. Rates have gone up about 1/2% in the past 10 days. Keep in mind that a 1% difference in your 30 year mortgage interest rate equals about a 10% difference in price. As rates go up, you'll be able to afford less home.
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Update your home before selling?

Whether you should update your home before selling depends on several factors - but the general answer is yes. Of homes that have sold, 88% of them are updated and in good or excellent condition according to the 2012 KW Market study. Most people want a move-in-ready house.

The most common updates are painting, flooring and lighting. But remember there is a difference between updating and repairing. Updates improve the aesthetics and make the house feel fresh. Repairs improve the overall condition of the property. While buyers like updates, buyers expect repairs. If a home has not been properly maintained and needs repairs, expect low offers ( if any).

Present buyers with an updated house in excellent condition at the right price and they will buy it. [where: 75230]

Fast but Fun Friday in Real Estate

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Average Days on Market for a home to sell

Home sellers typically like to know how long it usually takes to sell a property in their area. The easy answer depends on the price. Today in North Dallas the average Days On Market for a single family home is 113 days.

However, if you take a closer look at the statistics it can give you a better picture.

The average days it takes a property priced under $400,000 is 102. Higher priced homes take longer to sell because there is a smaller market for them. Also, the more unique the home, the longer it takes to sell. Buyers often say they want a 'unique' home but they actually buy a property that is more consistent with other homes in the neighborhood and in a style they are accustomed to.

The BIGGEST impact on a property's Days on Market is if the property is priced realistic to begin with. Homes that start out over priced almost always linger on the market for a long time. Price a home below market value, and it will sell quickly. Price a home in the range ( price per square foot) that other homes sell for in neighborhood and it should take the average time to sell. [where: 75230]

Favorite Dallas Air Conditioning Company

There are hundreds of heating and air conditioning companies in the Dallas area and many of them are very good. After remodeling several personal properties and selling many homes, I've found a few that are consistently reliable and reasonable.

My favorite company for installing, servicing and repair of HVAC systems is Sherrell Air. They've taken care of my own home with excellent service and my clients love them as well. They've grown a lot from the 15 years ago when I first called Steve Sherrell to work on old ailing ac unit. But their customer service and technicians remain top notch.

As with all my favorite home repair companies, they don't pay me to recommend them. I endorse them because they do a good job for my clients.  [where: 75230]

The Truth about the new Real Estate Tax

There are some wild claims going around about the new real estate tax that takes effect in 2013. The rumors are a combination true and false information.

Under the new health care bill, there will be a 3.8% sales tax on profits over the capital gains threshold ( not on all home sales).

The stories circulating online are: "If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, - who often downsize their homes."

In reality: The tax EXCLUDES the first $250,000 in profit from the sale of a personal residence, or the first $500,000 in the case of a married couple.

So if a couple paid $400,000 for their home and they sell it for $900,000 – they don’t pay this tax. It is only on the profits and only on profits over $250,000 or $500,000. Plus – you must have an annual income of more than $200,000 ( or $250,000 for a married couple).

Sure, none of us likes more taxes, even for health care. But at least you have the real story. 

State of the North Dallas Real Estate Market

Complete statistics are in for July 2012 and the market in North Dallas remains strong. Sales should start tapering off in the next 60 days as is typical for this time of year. But the year-to-year comparison reflects our strong recovery. Click on the chart to view it larger. [where: 75230]

Funny Real Estate Photos

Yes these photos are in MLS to help highlight and sell these homes. No, I didn't take them.

I wouldn't exactly call this a bathroom with a view. But nice try.

But here's the dining area - from the dog's viewpoint.

The Purple Haze house.

And this photo is all washed up.

Were the gold vessel sinks and the nice new tile work the first things you noticed in this photo?

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Dallas Real Estate Rebound Continues

The Dallas Housing Market isn't just recovering. It's back in full swing. The dollar volume of sales is holding strong - especially given that our inventory is low which is holding down the actual number of sales. As prices start to climb back up, we should see a healthy dollar volume maintain. 

But as soon as the Olympics are over, news headlines will shift back to the economic crisis in Europe and the US election. Both of those negative features will likely create uncertainty in the minds of consumers this fall and could impact housing. But we're doing everything we can here in Dallas to help grow the market and our economy.

This chart of sales was created by Hexter Fair Title Company from statistics collected from the North Texas Real Estate Information System. [where: 75230]

Ursuline Academy seeks athletic fields again

Ursuline Academy, the all-girl catholic school at Walnut Hill and Inwood is seeking to create athletic fields again. About 10 or 11 years ago their request was turned down when neighbors objected to the fields and the lights that go with them.

The new zoning request is asking for a soccer and lacrosse field at the corner of Walnut Hill and Inwood. However this request reduces the height of the lights with a time limit of 9:00 p.m. for their use. There will be no concession stand, restroom facilities or loud speakers and the bleacher space will be minuscule.

As a mom of an Ursuline graduate, I can attest that the school needs the athletic space. The boy schools in the area certainly have plenty of athletic facilities. As a Realtor, I don't see this improvement having any negative effect on property values. Hopefully a friendly agreement can be reached this time between the school and its neighbors. [where: 75230]

North Dallas Home Sales Statistics - year to date

The inventory of homes for sale in North Dallas continues to fall. We haven't had this low of inventory since September 2008 - and that includes the slower winter months. It's because folks are still moving to Dallas from all over the place. If you've got a home to sell, now is the time to have it on the market.

Meanwhile, pending sales are up. These are homes that are under contract but haven't actually sold yet. Our pending sales haven't been this high since February 2008.

But the really important factor is getting to the closing table. The number of homes that have actually sold is up as well. We'd have to go back to April 2008 to see this many sales. And remember, there is less to choose from right now due to low inventory.

And the numbers that everyone really cares about are prices. The average sales price is up. Based on the current inventory, pending sales and closed sales. That trend should continue. [where: 75230]

Appreciation

ap·pre·ci·a·tion :

(uh-pree-shee-ey-shuhn) noun

an increase or rise in the value of property, goods, etc.

gratitude; thankful recognition.

I'm usually all about real estate appreciation and property values. However, my favorite kind of appreciation is the recognition of the accomplishments of people I admire.

"Appreciation is a wonderful thing.

It makes what is excellent in others belong to us as well."

  - Voltaire

Top 3 Reasons People aren't Buying Homes

Right now is one of the best times to buy a home in more than 20 years. Home affordability is at record highs and mortgage rates are at all time lows. And more buyers are interested in buying right now that in the past few years. So why aren't more buyers scrambling to actually complete a purchase?

The top 3 obstacles preventing home buyers from completing a home purchase in 2012 were recently determined in a survey by REBAC ( the Real Estate Buyers Agent Council of the National Association of Realtors). They are:

1. Economic insecurity
2. Difficulties in obtaining financing
3. Problems selling current home

For the past 2 years, home buyers cited difficulties obtaining financing as the biggest hurdle to purchasing and now economic insecurity has taken over as the biggest effect on stalling home sales. Folks typically feel a little less secure about major financial purchases during a national election year. But there are many other factors that play in to insecurity mix.

Last year, the top issues for buyers were difficulties obtaining financing, problems selling a current home, and holding out for lower prices, according to the survey.