Home Buyers Are Feeling the Pressure

First-time buyers are typically nervous and excited about purchasing their first home.  They have much to consider for example, such as neighborhoods, schools, taxes, maintenance, HOA fees, insurance, and mortgage payments.  The current shortage of homes at affordable prices adds fuel to that fire, but main concerns hear from clients are the competition from cash investors and multiple offers.

Cash Buyers
Cash rich investors are snapping up properties to flip or rent at staggering rates.   The National Association of REALTORS chief economist, Lawrence Yun, states that "home supply is diminishing, but investor demand is not going away."  I see this increasingly in the $200,000 and under price range in the Dallas area.  Investors will make offers on homes in almost any condition.

According to today's Wall Street Journal, many investors are taking advantage of the demand for rentals, which has "boomed."  Rental vacancies nationally were down to near record lows, and median rent was up 11% over the past year.  

Many investors are buying homes sight unseen. In just the past week, I have personally dealt with three out-of-state investors who are willing to pay cash for properties in just about any condition, with  no desire to see the property before making an offer.  

When a buyer (first time or otherwise) finances a purchase, there are contingencies that could delay or stop closing the transaction, which can include appraisals, lender-required repairs, or delays in the lender underwriting process.  When selling to a cash buyer, sellers have no need to worry about such contingencies.  This is why sellers will typically accept a cash offer over a financed offer, even if the cash offer is slightly lower.  Cash transactions are simply quicker and less stress for sellers.

Multiple Offers
Multiple offers and sale prices above list price are the new norm.  Larger earnest money deposits, shorter option periods, and fewer seller concessions are all typical.  Although everything is negotiable, sellers now frequently outline what minimum earnest money and option fees are expected in the multiple listing service data for their property. 

When a new listing becomes available, there is a mad dash of showings within the first few days.  Brokers and their clients are constantly on the look out for new listings so that they can get there before other buyers.  I've shown homes recently where there was a line of agents and clients three deep to tour homes at 10 am Sunday morning.  Buyers simply have to be available in a moment's notice to access to the newest properties for sale.  It's important to work with a broker who knows what homes are "coming soon" and those that are for sale but not on MLS (known as "hip pockets).

Bottom line?  
Now, more than ever, buyers should use an experienced broker who is available on short notice to view new listings and who knows how  to structure a fair offer while looking out for his/her client's best interests, home buying can still be a pleasurable experience, even for first timers.

Just listed - 9138 Emberglow Lane in Dallas

This spacious 3 bedroom/3 bathroom townhome is located in the serene subdivision of Chimney Hill, just off Greenville Avenue and LBJ.  

Monthly HOA dues include 6 tennis courts, olympic-sized pool, parks, dog areas, clubhouse and more!  

This is currently the most reasonably priced 3 bathroom home within RISD.

Brava Realty Encourages Drivers to Slow Down

Dallas REALTOR  Says “Drive Like  Your Kids Live Here”

Safer Streets Mean Better Home Values

Brava Realty is helping residents in the far north Dallas area of Prestonwood encourage drivers to slow down.

Kristine Baugh, Brava Realty’s owner/broker, is busy delivering dozens of free “Drive Like Your Kids Live Here®” signs to Prestonwood neighbors.  Baugh decided to take action after a recent discussion with neighbors about dangerous conditions caused by drivers speeding down streets and alleys. “It’s important to protect what’s precious to us, and that includes our children and pets,” she said.  “Also, home buyers do evaluate traffic conditions around listings.  Quiet streets are a definite advantage when selling your home.”

Neighbors volunteered to post Drive Like Your Kid Lives Here® signs to stop distracted and reckless driving in Prestonwood.  “One of the many wonderful things about Prestonwood is that we truly care about each other and our neighborhood,” Baugh said.  “It was no surprise that so many neighbors volunteered to place these signs on their lawns.”

“I’ve always felt that being a real estate broker involves more than just listing homes for sale,” Baugh added.  “Brava Realty has always focused on giving back to the community.”  In addition to distributing the free signs, she has also pledged to donate a portion of all sales commissions to Richardson ISD elementary school PTAs during the 2015-16 school year.

Slowing down saves lives. Sadly, in 2013, Texas had the nation’s highest number of child traffic fatalities (128), according to the National Center for Statistics and Analysis.  Bicyclists, joggers, and adult pedestrians are also at risk.  Brava Realty and its Prestonwood neighbors think we can do better.

Brava Realty is an independent, boutique real estate brokerage founded in 2006.

Home Designs Defined

Have you ever wondered what the difference is between Dutch Colonial and French Provincial architectural design?  Here's a link to describe the differences in residential styles!Guide to Residential Styles

Lowball Offers? Forget About It.

Home buyers who are looking for big discounts on housing nowadays are finding that their lowball offers are no longer sticking with sellers, and that their offers are getting a flat-out “no” when they’re way below the asking price.


"Right off the bat, buyers say, 'I want a steal,' and I tell them they have to wipe that word out of their vocabulary," says Jackie Smith, a real estate agent in Florida’s Broward and Palm Beach counties.


"People come in, and they think the market is 2008 or 2009, when sellers were desperate," says Jennifer Sommers, a real estate agent with Nestler Poletto Sotheby's International Realty in Boca Raton, Fla. "They're not desperate. Not at all."


What qualifies as a lowball offer? Randy Bianchi, co-owner of Paradise Properties of Florida in West Palm Beach, Fla., says that sellers generally consider lowball offers to be less than 90 percent of their asking price.


Buyers, on the other hand, he says tend to say offers of 80 percent to 85 percent of the list price are reasonable.


“The mistake some buyers make is going so low it’s not even reasonable,” says Stephanie Chen, a seller in Weston, Fla., who refused to take an offer $40,000 less than her asking price. “We just walked away from the table.”


Another big mistakes home buyers are making in today’s changing housing market is that they are taking too long to make an offer, real estate professionals say, and because of that they are losing out on getting the house they want. The number of for-sale homes on the market nationwide has shrunk considerably in recent months, bringing out higher competition for properties, particularly for move-in ready homes.


Source: “Mistakes Homebuyers Make as Seller’s Market Looms,” Sun Sentinel (June 14, 2012)

Today's Home Buying Environment

Via Daily Real Estate News | Thursday, May 03, 2012

With signs of a housing turnaround getting stronger, buyers are finding that the rules have changed for submitting an offer on a home purchase. A recent article at U.S. News & World Report highlights some of these changing “rules” for home buyers:


Forget Lowball Offers: Most sellers are savvy and have been advised of market conditions by their real estate agent. Sure, deals are still around, but lowball offers that aren’t in line with comparable sales data are increasingly proving to be a waste of time. Buyers may be better off asking for seller concessions, such as closing cost assistance or making home repairs, rather than making offers way below the asking price. “Keep in mind that a lowball number may turn off the seller and close down any chance at negotiation,” the U.S. News & World Report article cautions potential buyers.   


Get Pre-Approved for Financing Before Shopping: Getting a loan isn’t easy nowadays as lenders have tightened their credit standards in recent years. Serious buyers should check shop for a mortgage and get pre-appoved for a loan to determine how much of a home they can even afford even before they start their home search.  Increasingly, sellers won't even consider an offer unless it's accompanied by proof of funds for a cash offer or a financing qualification letter from a bank.


Be Realistic:   Study the local market.  In the same city, home prices can differ drastically from one neighborhood to another, or even one street to the next.  Ask your real estate agent for data on sales transactions from the last six months and how long properties are staying on the market.  


Expect Multiple Offers. Housing inventories are dropping in many areas and spurring an increase in demand. Home buyers may face increased competition for the home they want, particularly among short sales and foreclosed properties, where buyers may be up against investors who are making all-cash offers. Sellers are looking at more than just price when analyzing multiple offers.  Are you also asking for a contribution toward your closing costs, or to pay for the title policy, home warranty, or survey?  


Do Your Homework Before Closing: Buyers should hire a title company to check for any liens and mineral rights. Housing experts also recommend hiring a home inspector, verifying the accuracy of the property line (by asking seller for the survey or having your own conducted), and make sure all necessary disclosures about the property, required by the state, have been made. 

Source: “Traditional 'Rules' of Home Buying Return,” US News & World Report (May 1, 2012)

Demand for Green Homes Rises Sharply

Just in time for St. Patrick's Day--please enjoy this article on GREEN homes!

http://realestate.yahoo.com/promo/demand-spikes-for-zero-energy-cost-homes.html