If you are not careful in real estate, you can find yourself saying "I knew that was a great investment, or I should have bought that place when I had the chance.  Well, here is a FREE heads up.  Richardson, Texas both east and west of Central Expressway is poised for major value growth.  Appreciation is such a voodoo word, that BigD won't use it today.  Value growth is what we look for in properties.  You can grow it yourself like many investors and smart home owners are doing in East Richardson right no by renovating kitchens and bathrooms as well as flooring and installing energy efficient new appliances.  You can also take advantage of trends, market movements and great timing like many home buyers and investors are doing in Wes Richardson right now by purchasing homes on the low end of the area price range and waiting for the inevitable demand for great schools and affordable - near town - homes to return.  Whether you are a re-modeler in the East, or a speculator in the West, Richardson, Texas is on its way.  You can quote me on that.

Good Luck,

BigDBlog

Know what you don't Know.

At first glance, that might sound impossible.  I don't know advanced calculus, so how could I know it? 

Don't worry, you won't need advanced calculus to sell your home by yourself.  You will however need to understand that you are not an expert in contract, negotiations, title work, insurance, inspections, building codes, mortgage lending, legal surveys, property appraisal, marketing and advertising.  You might be an expert in one or two, but you need a team of professionals to get a home sold legally and safely where all parties can sleep at night. 

Remember that when you spend money on the services of a true professional, you usually get more value than you pay out.  For instance, if you are a fairly savvy advertiser and negotiator, you could probably find a buyer and settle on a fair price in a good real estate market if your home is in a good location.  Then what?  What do you do about the rest of the hundreds of details necessary to complete a residential transaction. 

Option 1:  Assume someone else will do it.

                  Someone usually will, but they rarely will have your best interest in mind and look out for your bottom line.

Option 2:  Ask someone to do it for free.

                  Someone might, but they certainly won't have the motivation to work hard for you that they would if they were being paid.

Option 3:  Hire a PRO.  A professional will give you confidence that the job will be done right and that you will be protected from losing the thousands of dollars that are at risk in any given transaction. There are companies out there that provide this "contract to close" type of service for under $2,000.  Compared to the full commission of a traditional listing agent, this would save you over $10,000 on the average US house.  You would do what you are comfortable doing, and you would get a PRO to do the tough stuff.

BigDBlog wants you to save money where you can, and be smart where you must.  Option three makes sense for almost all FSBOs (For Sale By Owners.)

Most cities have Full Service Real Estate offices that will offer a paperwork or file service for a decent price, and most cities have Fee for Service offices that do this all day long.

Feel free to send questions as usual,

BigDBlog

Visit http://www.dallashomerealty.com/bin/web/real_estate/AR186789/TESTIMONALS/Dallas/1205872417.html for more info about getting affordable professional help when you have found a buyer.

Many Dallas home owners consider the pros and cons of listing and selling homes with traditional real estate agents and cringe at the prospect of paying a 6% or 7% commission.  This usually leads to the the book store or the Internet where home owners can find decent resources on how to sell a home on your own.  Decent means that among the blast of advertising from websites and so called marketing services you should be able to find a handful of good tips on selling a home yourself. 

Here is a cheat sheet with most of what you should know.  As this is just Part I of a multi-part series on For Sale By Owner issues in Dallas Texas, there will be more to come.  Feel free to comment and ask questions anyway.

• Plan Your Attack First
• Prepare your home for sale (clean, de-clutter, landscape, remove negatives)
• Find help to handle the "details of the transaction" once you have a buyer 
• Research advertising options (too many options to try it all, but you must advertise the home for sale)
• Commit to consistently advertising in a minimum of 4 places for a period of at least 60 days
• Make your home available for prospective buyers to view as often as possible (keep it clean)
• Smell can Sell - (keep your home smelling good)
• Remember, Price is important, but it is not the only term to negotiate (closing date, title insurance, inspections, repairs, attachments etc.)
• TAKE EXCELLENT PICTURES - LOTS OF THEM
• Use the Internet as much as possible - 84%+ of all home buyers start their search on-line.
• Research SELLING prices in your area.  Your neighbor may have asked $299,900 and he may have told you that he got it, but he most likely took less.  As a For Sale By Owner, you must price competitively.
• Be prepared for lower offers.  Buyers assume FSBO means that it will be a better deal.
• Know your Square Footage, Year Built, Age of major systems like Heating and Air conditioning, Hot Water Heaters, Roof etc.
• Have your own inspection done before you put your house up for sale.  You'll know what to expect when the buyer has his inspection.

More to come in Part II,

BigDBlog

Post your FSBO for free at www.4DallasHomes.com

Dallas, TX has been one of the fastest growing major metropolitan areas in the United States over the last few years.  The United States Census reported that between 2006 and 2007 more than 160,000 people moved to DFW where job growth and the local real estate market have both been relatively strong. 

WASHINGTON (U.S. Census Bureau) - Dallas-Fort Worth-Arlington had the largest numeric gain of any metro area in the United States between 2006 and 2007, according to estimates released yesterday by the U.S. Census Bureau. Three other Texas cities also made the top ten.

The population in the DFW metro area increased by 162,250. Number two was Atlanta-Sandy Springs-Marietta, Ga. (151,063), followed by Phoenix-Mesa-Scottsdale, Ariz. (132,513).

This is great news to home buyers and home owners in the Dallas, Texas area.  As jobs and population rise, the demand for existing homes increases directly.  With all of the delayed demand expected to surge back in to the local Dallas real estate market soon, the local economy in Dallas should see big benefits. 

Buy Now says BigDBlog.   www.4DallasHomes.com

Since January 01, 2008 the North East Dallas / Lake Highlands area has seen 92 single family residential homes sold with prices ranging from $68,000 to $503,000.  The vast majority of those homes were three bedroom homes with two bathrooms and two care garages.  There were as you would expect a reasonable number of four and five bedroom homes that sold as well.

During this same time frame in 2007, 135 homes were sold ranging from $45,507 to $480,000.  This documents the suspicions of many that even the Lake Highlands real estate market has slowed.  As you have read on BigDBlog before, this is mostly due to the public reaction to intimidating national media reports that the entire United States housing market is in crisis. 

Understanding that the factors affecting this supposed crisis are local and not uniform across the country, BigDBlog will quickly recap the reasons that Dallas, Texas and specifically Lake Highlands are in a great position for an immediate rebound to a stable and even appreciating local housing market with a few bullet points.

• Dallas area job growth is strong - Large companies are relocating to Dallas due to the relatively low cost of living and access to necessary resources in the financial and technical industries
• Dallas area homes never experienced the double digit appreciation that many other housing markets did.  -  If there is no inflated "real estate bubble," there will be no bust!
• Interest rates on mortgages are still very very low.  Many home owners can remember the 1980's when mortgage interest rates hit 15.8%.  Today's rates are under 6% and near all time lows. 
• This is the best opportunity to buy a home in a long long time.  Low rates + high number of homes on the market = lower overall home prices with lower overall payments.  This allows Dallas home owners to build equity and real wealth even faster.  That is the American Dream

Additional Data for your local real estate curiosity:

• Overall average price per square foot for North East Dallas and Lake Highlands is $104.53 so far in 2008
• Overall average days on the market for Homes in North East Dallas and Lake Highlands is 84
• Overall average percentage of original listing price received on home sales in North East Dallas and Lake Highlands is 98%
• Overall average original listing price for homes in Lake Highlands and North East Dallas was $231,335
• Overall average square footage for homes in Lake Highlands and North East Dallas was 2,156
• Overall average year of construction for homes sold so far in 2008 in Lake Highlands and North east Dallas was 1968

As usual, BigDBlog is happy to answer any of your Dallas, TX real estate related or random questions.

 Thanks for reading,

www.4DallasHomes.com

If you have ever lived in or around Lake Highlands in Dallas, Texas, then you know about the Lake Highlands Exchange Club.  They are well known in the community due to there tireless service to the people and schools in Lake Highlands.  The Lake Highlands Exchange Club sponsors scholarship programs for students at Lake Highlands High School, awards for students who display character and integrity in addition to supporting women's shelters and local law enforcement. 

In the works for the upcoming year are events ranging from a job fair for high school students to learn about employment opportunities to social outings to enjoy the fellowship of neighbors and friends. 

Saturday March 29, 2008 at Royal Oaks Country Club on Greenville Avenue, the Lake Highlands Exchange Club will be hosting a Casino Night and Auction in order to raise funds for its many local initiatives.  There will be many great prizes including all expense paid vacations, spa treatments and even a FREE residential real estate listing. 

For those men and women interested in learning more about the Lake Highlands Exchange Club and how their efforts affect real estate and home values in the Lake Highlands area, contact www.4DallasHomes.com.

BigDBlog

Spring is upon us here in Dallas, TX and while the weather is still catching up, the calendar never stops.  Many schools are out this week or next for Spring Break.  This is usually the beginning of the buying season for Dallas home shoppers.  While this week will most likely remain slow in the home buying department, the folks who are considering buying and selling will start to think about what might be in the next few months. 

Many families are out of town on vacation of entertaining children who are usually in school.  While this seems like a great time to look at houses, it usually doesn't translate into many homes getting sold.  As early as next week though, we should see a pic, up in the amount of showing activity that sellers are getting.  If you are thinking about selling your Dallas home, now is the time to think seriously about who you will hire to be your consultant during this process. Who will be your adviser.  You'll want to have your home on the market by April in order to take advantage of the Spring and early Summer buying markets.

Start fertilizing the yard, plant some colorful flowers near the front door and begin to declutter your home.  Spring cleaning is worth every penny and every second. 

Good Luck,

BigDBlog

Now is a great time to buy or sell a home in Dallas, TX.  People who used to mock Big D for our cattle, big hats and slower talk are now envying our steady real estate market, pockets of appreciating home prices and growing job market. 

Now with that said (written?) let's get to the point of how we can win in this real estate market.  It is all about value.  It is all about value.  Value is what it is all about in real estate.  You've heard it said that real estate is about location location location, but BigDBlog likes what Todd Dotson says.  "Price cures all."  Price is a quantified expression of perceived value.

 Dictionary.com Unabridged (v 1.1)

val·ue      /ˈvælyu/ [val-yoo] noun, verb, -ued, -u·ing. -noun

Remember that value is "relative."  Would you buy a 3,000 square foot home that has been totally renovated for 50% of market value even if it was twenty minutes out of the way?  Many people would.  Price can cure some location problems.  If you like a property and then quantify that into a price you are willing to pay for it, you know value of the property for you.  It might not be the same for everyone.  As a buyer, if you are borrowing money to purchase a home, your bank or lender will help you define value whether you like it or not.

As a home seller, you must remember that value is defined by the buyer.  Wait, let that soke in... And we're back.  Each prospective buyer will view your home through their own eyes with lenses shaped by his or her own needs, wants and understanding.  When selling your home, you are trying to find the buyer whose value determinants match up with yours.  This is not easy, and is a major reason that BigDBlog always advises that you find a knowledgeable and affordably priced real estate professional to consult with you and represent you in any transaction as a buyer or seller.

 Sellers, do not let a buyer's opinion of the value of your home offend you.  Either have your consultant clearly communicate the value of your home as you and he perceive it or move in and be deliberate about finding and attracting a buyer who shares your opinion on value.  There is no magic formula, and comparables are only indicators of value.  Appraisals are a raw guesstimate at best.

What is real estate all about again?

BigDBlog

The issue is out there and it needs to be addressed.  In many communities around the country, consumers have been pounding their fists against the table and some even their heads against the wall in frustration that they must pay six or seven percent to get their home sold.  Home sellers in Dallas, TX regularly comment that this percentage based commission is way too much to pay for the services that they need. 

In recent years, home sellers have even confronted agents with the issue that they can't afford to pay the commission based on lost equity in the home.  Other sellers still simply refuse to pay an agent $12,000 or more on the sale of their $200,000 home.  This is becoming more the rule than the exception that it has been for the last 20 years. 

In communities like Lake Highlands, the discount idea is really taking hold.  Home owners are taking notice of more signs and more SOLD signs from companies that charge less to sell your home, but still do everything that you need.  The use of discount or Flat Fee real estate agents and brokers has grown 300% in Lake Highlands for the past two years (since BigDBlog has been tracking.)  One glaring example of the success of the Flat Fee companies is a home that was listed and sold on Church Street just east of Audelia Road in February of 2008.  The home was listed and under contract within hours and closed within 30 days for a net full price offer to the seller.  Due to the broker charging a flat fee and not a traditional six or seven percent, the seller saved a substantial chunk  of money on the listing agent side.  In addition, the listing company (flat fee company,) also brought the buyer.  Since their model doesn't charge any buyer's agent commissions, the selle then saved the entire buyer's agent fee.  In the end, the seller saved over $8,000 dollars in real estate commissions and the buyers got a better than normal deal as well.  This is a true example of a win - win situation. 

While the traditional real estate community has not embraced limited service companies, they have accepted the flat fee companies fairly well.  Again in Lake Highlands, many listings are sold each year where flat fee companies cooperate with traditional offices to bring a buyer to their listings or to sell a listing to their buyers. 

In our wonderfully capitalist economy in the United States, this is a prime example of markets being efficient and consumers demanding a more affordable option.  As almost every other industry in America has been competitive based on price for generations, home sellers and buyers are finally seeing real estate companies supply a service to meet their reasonable demands.

Feel free to send questions as usual and of course comment at will.

BigDBlog

Big D Blog has written about the false panic coming from the media in regards to our local market here in Dallas Texas.  Well Dallas home buyers and sellers, here is some raw data to ease the pain even further:

30% of all homes in America are totally paid for with Free and Clear Title.

20% of all homes in America are owned by real estate investors and leased out to renters as income generators.

48% of all homes are owner occupied and those owners are current with their mortgage payments just like they promised their lender they would be.

2% of the homes in America are either behind on payments, involved in a "Short Sale," or have been Foreclosed on.  JUST TWO PERCENT

What are the reporters reporting about and the writers writing about....?  The measly two percent. 

While the issue of predatory lending and the personal irresponsibility of home buyers is a legitimate issue, most of us are right on track and shouldn't have to be beaten over the head with the depression stick every morning and night.  Most home buyers, especially in Dallas Texas, simply want a nice home in a safe area at an affordable price.  They want to buy that home with as little debt as possible and pay as little interest as possible on their mortgage.  In addition, thoughtful service and respect from service providers would be nice.

 Short and sweet news from Big D Blog