Christmas

I’m sending Christmas greetings your way and wishing you a joyous and blessed holiday with people you love.

I wish you and your family a day overflowing with love, mercy and hope.
Blessings,

Robin Moon

Excite Realty.com

903-880-5351

www.robinmoon.com

Realty Speaking! Multiple Listing Service!

Even before the sign is up and the brochures are ready, your agent should list your property with the local MLS (Multiple Listing Service). The MLS is a database of all the properties listed by the local real estate agents who are members of the service, which is practically all of the local agents.

Important information about your property is listed here, from general data such as square footage and number of rooms, to such details as whether you have central air conditioning or hardwood flooring. There should also be photos, and a short verbal description of what makes your property "special".

Agents search the database for properties that fit the price range and needs of their clients. They pay special attention to properties that have been recently placed on the market, which is one reason you get a lot of attenton when your property is first listed.

The main point about having your property listed in the MLS is that you expand your sales force by the number of local MLS members/ Instead of having just one agent working for you, now you have approximately 185 to help you sell your property. Some offices use the Dallas MLS also to increase the exposure of your property to many more.

One of the listing agent's main priorities is to make sure that the other MLS members know about your property. This is accomplished through listing your property in the Multiple Listing Service, broker previews and advertising targeted toward other agents, not homebuyers.

Realty Speaking! Which Realtor?

If you're like many people, you pick the Realtor that says they can get the most for your house. This is an agent who seems willing to listen to your input and work with you. Thgis is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everybody else does it!

The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing". He bought the listing by suggesting you might be able to get a higher sales price than the other agents quoted. Most likely, he is quite doubtful that your home will actually sell at that price. The intention is to eventually get you to lower the price.

Why do agents buy the listings? There are basically 2 reasons. A well meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his homes worth. On the other hand, there are some agents who engage in this sales practice routinely.

Whichever the case, if you start out too high a price on your home, you may have just added to your stress level. If you and your agent have overpriced, fewer agents will show your home. After all, they are Realtors, and it is their job to know the local market. If your home is too overpriced, why waste their time showing it? Their time is better spent showing homes that re priced realistically. Later, when you drop your price, your house is "old news".

Realty Speaking! Dropping Your Price, Too Late!

If you and your agent have over priced, fewer agents will show your property. After all, the are Realtors, and it is their job to know local market conditions and property values. If your property is dramatically above market, why waste time? Their time is better spent showing properties that are listed realistically. Later, when you drop your price, your property is "old news". You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your property could take longer to sell. Even if you do successfully sell at an above market price, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last 6 months and current market conditions do not support your sales price, the property won't appraise. Your deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen. Your property could go back on the market. Once your property has fallen out of escrow or sits on the market for a while, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your property in the beginning, you could actually end up settling for a lower price than you would have originally been offered.

Realty Speaking! What to Offer?

The first step in determining the price you are willing to offer for your next "Dream Home" is to look at the recent sales of similar homes. These "comparable sales" are recent sales of homes that compare closely to the one you are looking to purchase. You want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, lot size, type of construction and maybe lake frontage or view.

The most accessible source of information on comparable sales is the public record. When someone buys a home, the property is deeded from the seller to the buyer and the deed is recorded at the local county recorder's office. Accessing the data is another matter, at least for the general public. Realtors can generally look up this information through www.TaxNetUSA.com, an online service that most Real Estate offices subscribe to.

The next source is the Multiple Listing Service (MLS). Most of the public is aware that the MLS is a private resource where Realtors list properties available for sale. Once a listed property is sold and closed the selling price is posted to the MLS. Over time, it has become a huge database on past sales, containing much more information on individual homes than can be gleaned from the public record. This information is only available to agents who are members of the local MLS.

Your agent will provide you with this data to help determine your offer price. Although your agent may provide advice and guidance, you are the one who makes the decision. The price you put in the offer is totally up to you.

Realty Speaking! Commissions Earned!

There is a certain percentage that real estate agents expect to earn as a commission for the successful sale of your property. This commission amount is a certain precent of the sales price. Or, some companies will charge a set fee for their services. However, just like anything else in real estate, this amount is sometimes negotiable. When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.

Your listing contract specifies a listing price. Your agent's job is to bring a "ready,willing, and able" buyer to present an offer. If you reach an agreement with the buyer, then the agent has done his job and earned the commission. Once the sale has closed, the real estate broker gets paid from the proceeds of the sale.

If the buyer proves unable or unwilling to conclude the sale, the house is placed back on the market and the agent has to begin earning his or her commission all over again.

However, if the seller backs out or does not accept an offer that meets the price and terms of the listing agreement, the listing broker has still earned the commission. They may want to be paid, even though you did not actually sell your home. Therefore, it is very important to carefully consider every detail when completing your listing agreement and accepting an offer to buy your property. After all, this is a legal & binding contract between you and your broker.

Realty Speaking! Inspections

Besides appraisal and the termite inspection, you should also have a professional go through the house and seek out potential problems. Of course, you will have inspected the home, but you are not used to looking at some things that a professional will find. Even if they are not things the seller is expected to repair, at least you will have foreknowledge of any potential problems.
You will want to allow yourself enough time so that once you receive the inspection, you will have sufficient time to review and approve the report. If you do not approve the report, you may negotiate with the sellers on which repairs should be performed and who should pay for those repairs. Otherwise, you can cancel the purchase without losing your “Earnest Money”, provided you have included a “Termination Option”. This gives you the unrestricted right to terminate the contract by giving notice to the seller within a stated number of days.
Before closing, you will want to revisit the property to ensure it is in the condition you have required in your offer, and to inspect that any required repairs have been performed. The contract provides that the seller will deliver possession of the property to you in the same condition as on the date you executed the contract, ordinary wear & tear excepted, and subject to any agreed repairs being completed. You should do this “Final Walk Thru” no sooner than five days before you intend to close.

Realty Speaking! Different Types of Listings

There are different types of listing contracts, but very few of them are used. The "open listing" is mostly used by people trying to sell their home by owner who are also willing to work with real estate agents. If their client buys your home, the agent earns a commission. There is nothing exclusive about an open listing. For that reason, no agent is going to market your home or put it in the MLS.

"An exclusive agency listing" allows an agent to list and market your home, guaranteeing them a commission if the house sells through any real estate agent or company. It also allows sellers to seek out buyers on their own. There is not much incentive for agents to spend money marketing and a good agent would never accept such a listing.

A " One Time Show" is similar to an open listing in many respects, as it is most often used by real estate agents who are showing a FSBO ( for sale by owner) to one of their cients. As with an open listing, agents will not be spending money on marketing your home and it will not be placed in the Multiple Listing System.

Giving a real estate agent the "exclusive right to sell" your property does not mean that there will not be other agents involved. An "exclusive right to sell" is the only type of listing an effective agent will accept. This is because they have a reasonable expectation of earning back any money they spend on promoting and marketing your property.

Realty Speaking! Staging to Sell!

When you know someone is coming by to tour your home, turn on all the indoor and outdoor lights- even during the day. At night, a lit house gives a "homey" impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.
Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural.
If you have pets, make sure your listing agent puts a notice with your lisitng in the multiple listing service. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, it is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property.
Especially if your kitchen trash does not have a lid, make sure you empty it every time someone comes to look at your home- even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every apsect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.

Realty Speaking! Writing the Offer!

Once you find the home you want to buy, the next step is to write an offer-which is not as easy as it sounds, Your offer is the first step toward negotiating a sales contract with the seller. Since this is just the beginning of negotiations, you should put yourself in the seller's shoes and imagine his or her reaction to everything you include. Your goal is to get what you want and imagining the seller's reactions will help you attain that goal.
The offer is much more complicated than simply coming up with a price and saying, "This is what I'll pay." Because of the large dollar amounts involved, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.
In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well.This includes how you intend to finance the home, down payment, who pays what closing costs, inspections, timetables, whether personal property is included, terms of cancellation, any repairs you want performed, which professional services will be used, when you get physical possession of the property, and how to settle disputes should they occur.
Buying a home is a major event for both the buyer and seller. It will affect your finances more than any other previous purchase or investment. However, it is more important than just money. In the half hour it takes to write an offer you are making decisions that affect how you live for the next several years, if not the rest of your life.

Realty Speaking! Don't Buy a Car!

When an individuals income starts growing and they manage to set aside some savings, they commonly experience what may be considered an innate instinct of modern civilized mankind.

The desire to spend money.

Since Americans have a special love affair with the automobile, this becomes a high priority item on the shopping list. Later, other things will be added and one of those will probably be a house.

However, by the time home ownership has become more than a distant and hopeful dream, you may have already bought the car.

It happens all the time, sometimes just before you contact a lender to get pre-qualified for a mortgage.

As part of the interview, you may tell the loan officer your price target. He will ask about your income, your savings and your debts, then give you his opinion. "If only you didn't have this car payment," he might begin, "you would certainly qualify for a home loan to buy that house."

When determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowners association fees if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and ....

car payments.