Blue Moon mortgage rates?

The 2015 mortgage rates to buy a Dallas home are still so low, I have to wonder how often we get to see great deals on home financing.

Less often than a blue moon.

While current rates are still well below the past 40 year averages, they are expected to increase a full percentage point in the next 6-9 months. Why do we care so much about a single percentage or less? Because it makes a huge difference in your monthly payments and in what you can ultimately afford to buy. When I bought my first home in the 80s, the average mortgage rate was 12.7% and I paid more than that. Ugh.

A $200,000 house payment ( on a 30 year note) costs you:

• $877 a month if you got the low 3.31% rate in 2012. 
• $3,177 a month if you paid the high 18.63% rate back in 1981. 

That's for the exact same house!

By the way, tonight is a Blue Moon so I couldn't resist making the reference. The definition of a Blue Moon is a full moon that occurs twice in one month. Take advantage of today's low rates to make your home purchase more affordable.
[where: 75230]

2015 Dallas housing market is tough for sellers too

The hot Dallas housing market is certainly a challenge for home buyers right now. But sellers are facing a few challenges as well.

The Dallas Morning News reports that demand and prices for homes are continuing to soar. Plenty of homes are receiving multiple offers the day they hit the market. Great news for sellers.

But also reason for a seller to be cautious about which offer they accept. The highest price is not always the best deal. The terms of the contract are crucial. And just how ready, willing and able is your potential buyer?

Standard Texas real estate contracts contain a negotiable option period that usually ranges from 5-15 days. During that time, a potential buyer may have the home inspected, perform their due diligence, ... and may opt out of the contract for any reason or for no reason.

In years past, a buyer typically didn't opt out of a contract unless there were issues that came up during the inspection that were unacceptable and not negotiable. Most properties that went under contract, ended up with a sale.

That's not necessarily the case in today's hot market. Agents are seeing more and more contracts being terminated by anxious buyers who are competing for Dallas homes. In order to win a contract on a property, they need to make a strong, quick offer.

But too many of them are putting a home under contract (and taking it off the active market) and THEN taking a step back to decide if they want it. When they opt to walk away and terminate the contract, the property then goes back on the market but has missed out on some potential buyers and lost the momentum of becoming a 'new' listing.

To reduce this risk, many agents (myself included) are encouraging their sellers to reduce the option period and increase the option fee. If a potential buyer puts up a non-refundable option fee of $1,000 instead of $200, they're less likely to walk away from a transaction. We are tightening up (or eliminating) the financing contingencies and other opportunities for a buyer to withdraw.

I hope this becomes the norm for Texas real estate transactions. In some states a buyer may terminate a contract only because of needed repairs, financing issues or some other legitimate reason. Right now, a Texas contract doesn't call for the buyer to beware but for the seller to beware.

Check out the news story about the Dallas July 2015 market here:
http://www.dallasnews.com/business/residential-real-estate/20150723-scorching-dallas-area-home-prices-mean-tough-summer-market-for-buyers.ece
[where: 75230]

Dallas Real Estate Update - July 2015

No summer vacation for active Realtors this year. Because the Dallas housing market doesn't show signs of slowing like it usually does this time.

Demand is up. Prices are up. There aren't enough available homes to purchase and that isn't changing any time soon.
Why you ask?

The incredibly robust north Texas economy is bringing more than 120,000 jobs a year to our area. Meanwhile, we're building about 25,000 new homes and about 30-35,000 new apartments a year. Right now there are 14 new high rise apartments being built in Dallas. Home builders haven't come back strong enough since the recession because the of lending requirements amongst other things. So our housing shortage may be very long term.

Dallas leads the country in home price increases this year. We expect to see that eventually slow as interest rates increase and because incomes simply aren't increasing that fast.

While soaring prices are not a sustainable pattern, experts don't expect another bubble/burst scenario. Homebuyers are not over-extended like they were 10 years ago and there is no excess of available housing in Dallas.
[where: 75230]

I only sell homes made in the USA

... specifically in Texas. 

Hope your Independence weekend is a safe and happy one. 

5 Dallas Home Buying Tips - July 2015

It's a sizzling seller's market in Dallas!

If you're looking to buy a property anywhere in the Dallas area in 2015, I've got a few important tips to help you succeed.

• Get a good agent. In our hot seller's market, it doesn't take a great seller's agent to put a house in MLS and get offers on it. But not every agent is an experienced negotiator who knows how to effectively get the deal done. You need a realtor who can act quickly, efficiently and knowledgeably - and who has a good working relationship with other agents to get the job done. 
• Get pre-approved for your mortgage or pay cash. The seller wants to know that you've got the money (or access to money) to buy the house. A pre-approval letter should accompany your offer. It tells the seller that your lender has looked at your credit information, verified employment and other information to actually start the mortgage process. 
• Be ready to act quickly. When you find a property that you like, make an offer. Those who hesitate will likely miss out or find themselves in a multiple offer situation. Agents in the know are finding out about properties before they hit the market. And we're watching several times a day for those that go immediately into MLS. Seems like I'm checking MLS more than a bored teenager checks Candy Crush. 
• Understand the seller's motivation. Your agent should ask the sellers agent what their needs are so your offer can be structured in a way that is most appealing to a seller. Do they want to close quickly? Do they need some time to give you possession of the house? These are all things that can be important when a seller considers offers.
• Make your offer as appealing as possible. You may find yourself in a multiple-offer situation so make yours more desirable from the start. Can you make a large down payment? Reduce the number of contingencies? While a sweet letter to the seller might help - money talks louder. Forget about low balling in today's market. Expecting to win in a multiple offer situation with a bargain priced offer is unrealistic. [where: 75230]