What is a Buyers and Sellers Market

When buying or selling a home it is important to know the what type of house market is in your area. Determining the current housing market for your area can make a huge difference in your strategy. A large inventory of homes give potential home-buyers a greater number of homes to choose from. As where as a sellers market limits the number of homes available to a larger number of potential buyers.

Determining the Current Housing Market

The market absorption rate will determine the current housing market for an area. To calculate the the absorption rate divide the current number of homes sold in the pasted 30 days by the number of homes for sale. For example

50 Homes Sold in the pasted 30 days divided by 150 homes currently on the market would be 3 months of inventory.

Having said that with the current rate if the current homes stayed on the market, no new homes were added and homes continued to sell as the same rate. In 3 months the current inventory would be sold.

Current Market

A healthy or normal market has 5 to 6 months of inventory. Typically anything over 6 or more months of inventory is considered to be a Buyer market and 5 months of inventory or less is considered to be a Sellers Market. Depending on the type of market the Buyer or Seller may need to adjust their strategy. For more information about the particular strategy contact Allen Deaver of Asset Realty today.

 

 

Jan. 3, 2020

Home Sweet Texas Program

Home Sweet Texas

Stop Renting and Purchase a Home with help from TSAHC

Home Sweet Texas, program of the Texas State Affordable Housing Corporation or TSAHC, offers two types of assistance to help purchase a home. 

Fixed Rate Loans with Down Payment Assistance (DPA)

  • Several Rate, Loan and DPA options available
  • DPA can be up to 5% of the Loan Amount

Mortgage Credit Certificates 

  • A special tax credit that reduces your Federal Income Taxes every year.
  • For First Time Home Buyers (those who haven't owned a home in the pasted 3 years)
  • Can be used with TSACH's DPA 

Texas Affordable Housing Corperation

 

Jan. 3, 2020

Sellers Estemated Net Sheet

Seller Net Sheet

Seller's Estimated Net Sheet

 A Sellers Net Sheet is provided by the Title Company or Real Estate Agent to give the Seller a estimate of their net proceeds. An estimate of the net proceeds after expenses like closing costs, tax perorations, commissions and other costs associated with selling a home. The average cost of selling a home can range between 1 to 7%. Many Real Estate agents will use a mock Sellers Estimated Net Sheet before listing the home to give the seller an idea of what to expect. They can also be generated after receiving an offer for the same reason. 

Sellers Estimated Net Sheet

Posted in Selling a Home
Jan. 2, 2020

Address Confidentiality Request

Request for Confidentiality

Request for Confidentiality 

Under the Texas Property Tax Code qualified people such as Law Enforcement Officers, Judges and victims of family violence can have their personal information removed from the Property Tax Records. 

Download Forms

 

Jan. 2, 2020

Reason's To Hire a Realtor - Seller

Reasons to hire a sellers agent

Reasons To Hire a Seller's Agent

A good real estate agent is a jack of all trades. They will help you prepare your home to sale, set a salable price, determine a strategy to sell your home and negotiate with the buyer. A Seller's Agent is a real estate ageent ho represents their client selling the property.  

What Does a Seller's Agent Do

  • Market Data A real estate agent has access to market data that can help their client make a more informed decision. The can find comparable properties to determine a salable price. 
  • Negotiations One job of your real estate agent it to negotiate with the buyers agent on price and terms.
  • Marketing Real estate agents have access to tools to best market your home. Online through the local MLS, Realtor.com, Zillow,Trulia and other real estate websites. Giving your home the most exposure to potential buyers. 
  • Communication A real estate agent will keep you informed of the status of your home. 
  • Repairs Sometimes in a real estate transaction repairs are required buy the buyer to the home. You agent can help coordinate with contractors to finish them.
  • Referrals Your real estate agent is a great resource for professional services such as contractors, title company's and other services.
  • Paperwork A real estate agent knows and understands the paperwork needed to complete the sell of your home. 
  • Guidance Selling your home can e a hectic process. Your real estate agent can help you stay focused and minimize any issues. 
  • Value Selling your home does not have to be a long drawn-out affair. A good real estate agent can get you through the process in a timely manner. 

More Information About Selling Your Home

 

Posted in Selling a Home
Jan. 1, 2020

Who Pays the Buyer's Agent Commission

Buyers Agent Commission

Who Works for Who

Buying a home can be a long and arduous process from the first time meeting with your Real Estate Agent to getting the keys to your new home. Knowing which Real Estate Agent works for who is important. With few exceptions the Listing Agent a home works for the Seller and represents their best interest. Having said that it is advisable for anyone purchasing a home to seek a someone to represent them or a Buyer's Agent. 

Who Pays Who

So in a Real Estate transaction how does the Listing Agent and Seller's Agent get paid? Before the home even goes on the market the Listing Agent and Seller enter into a Listing Agreement. This Agreement includes the percentage of the sale each Brokerage gets paid when the home is sold. Out of the proceeds both agent's will get their percentage.

With few exceptions such as a For Sale By Owner the Seller will pay all commissions. 

Buyers Agent
Jan. 1, 2020

Texas Property Taxes 101

Property Taxes 101

Property Tax Basics

The taxation of real property in Texas is controlled by the Texas Constitution and Texas Tax Code. Property taxes are based on the assessed value of the property and referred to as "ad valorem taxes". Every year on January 1 a tax lien is automatically attached to the property secures all taxes, penalties and interest due for each property. The ad valorem tax remains in effect until the taxes are paid. 

Property exemptions removes a part of the values of the property from being taxed and lower's the amount being taxed.

Common Exemptions for a Home

Property exemptions removes a part of the values of the property from being taxed and lower's the amount being taxed.

Homestead Exemption

  • To qualify for a homestead exemption the tax payer must own the home January 1st of that tax year.
  • The property must be used as the principle residence for the taxpayer. If the taxpayer temporarily moves they can still receive an exemption as long as they have not established another principle residence.
  • Temporary absence can not be longer than 2 years with special exceptions. For the exception of Military Service or a stay in a medical facility with a special exemption. 
  • A person may not receive a homestead exemption for more than one residence the same year.

Over 65 and/or Disabled Veteran or Survivor

  • A taxpayer eligible for an Over 65 Exemption or Disabled Veteran can pay their taxes in installments without penalties instead of paying them all at once.
  • Taxpayer can also defer or postpone tax payment, this will rewire consent from their lender and filing a Tax Deferral Affidavit. For more information about this contact your County Tax Appraisal Office.
  • These exemptions are transferable to another home. However if the taxpayer claims another homestead during the year, the exemption is no longer allowed on the previous homestead for the remainder of the year. The taxing units will prorate based on the number of day elapsing after the taxpayer ceases to qualify to the end of the year.

For more information about exemptions contact your County Central Appraisal District

Property Exemptions

Dec. 31, 2019

New Construction - Buyers Agent

New Construction

New Construction

When you are hunting or your first or next home sometimes new construction has a special attraction. With the new home comes new appliances, warranty's and no one has ever lived in it. Visiting a model home the Onsite Sales Person or Builders Agent is eager to help you with the process. But make no mistake you are going to need someone representing your side of the deal. 

Why You Need Your Own Agent

Before visiting a new home community it's a good idea to have your Real Estate agent for the first visit. One main reason. The Builder is responsible for paying the Buyer's Agent's (the agent representing you) commission and needs to know you are being represented. Your agent will register you with the builder on the first visit.    

Buyer's Agent Responsibility's 

Your Real Estate Agent's responsibility is to assist in getting the most value for your money and handle details. Just a few items your Agent is responsible for throughout the transaction. 

  • Negotiating Your agent can negotiate with the builder to help get extra perks such as upgraded appliances, amenities and flooring.
  • Financing The Builder will typically have a preferred lender and in most cases will pay some of your closing costs for using them. The lender may try to steer you to a loan that may not be optimal for your particular need. You real estate agent can give you advise on what may be the best loan for your situation. 
  • Overseeing the Process Many real estate agent will tour the home during construction. Also the Buyer's Agent will more than likely not recommend you have a Third Party Home Inspection. This is something your Agent will help you set up. 

Builders Agent

The Builder's Agent can be a valuable resource when purchasing a new home. They are knowledgeable about the community, amenities, construction and will be one of your contacts in the process. 

Request More Information About Buying New Construction

 

More information about new construction

Dec. 30, 2019

VA Appraisal

VA Home Loan Appraisal

Veteran Affairs Home Loan Appraisal 

Having an appraisal come in below the contract price sometimes happens and can be challenging. One part of the appraisal reviews the safety and health standards of the property. This term is refereed to as the Minimum Property Requirements. The other part is the VA Appraiser determining the home's value.  

Let's say for example the agreed contract price for the home is $300,000 but the home only apprises for $250,000. One option is to renegotiate a change in the sales price to $250,000. The other option is to terminate the contract and walk away from the deal. 

Tidewater Initiative 

Another option the VA Buyer has is to appeal the VA appraisal. Before finalizing the appraisal the VA Appraiser can notify the lender that the home's value is below the contract price. This is known as invoking the Tidewater Initiative.  

The Appraiser is not allowed to discuss the details of the appraisal report for the exception of the comparable home's being used to support the sales price. At this point the lender has two days to provide to the VA Appraiser additional home's to use as comparable home to support the purchase price.  

The VA Appraiser will look at the comparable properties and issue a final appraisal report. 

 

The appraiser will take those additional comps and issue the final appraisal report. If the Tidewater process doesn’t lead to a sufficient increase in value, the appraiser is required to provide a written explanation as to why.

Reconsideration of Value

The Department of Veteran Affairs (DAV) understands that mistakes can happen in an appraisal. Perhaps a value-adding features was overlooked or usable comparative properties were not used. On occasion the square footage of the home may have been miscalculated. 

For this reason the DAV has an appeal process known as a Reconsideration of Value. There is no guarantee the results will be favorable. But it does give the Buyer another chance at a higher appraisal. 

What if the Reconsideration of Value Fails

No two real estate transactions are the same and sometimes appraisal values can be difficult to predict. A few options the VA Home Buyer has if the Reconsideration of Value Fails.

  • Ask the seller to renegotiate the sales price to reflect the home appraised value.
  • The Buyer can make up the difference in cash.
  • Walk away from the deal

More Information About Buying A Home Using a VA Home Loan

Posted in Veterans
Dec. 30, 2019

Renting Your Home

For RentRenting Your Home

As a homeowner sometimes its necessary to rent your home. Be it a move to another area or moving to a different home. Doing so can provide you the opportunity to create another stream of income. Sometimes doing so could be a better option than selling. But before becoming a landlord there may be a few details you need to be made aware of.

Professional Advice

Before renting you home it's advisable to get advice from professionals like a CPA, Insurance Broker, Real Estate Attorney and Real Estate Agent. These professionals can provide information needed to be prepared financially and legally. This is especially true if you plan to manage the property yourself.   

Three Options to Renting Your Home

Renting It Yourself

Renting the property yourself without the help of a Real Estate Agent or Property Management Company is the least costly choice. However there are many things to consider. 

  • Making sure the property meets local laws and safety for rental properties.  
  • Is the home presentable to potential tenants.
  • How much rent should be charged.
  • Marketing and showing the property to potential tenants. 
  • Screening tenants (employment history, rental history, checking references, credit check)
  • Collecting fees and rent
  • Property maintenance 

Hiring a Real Estate Agent to Lease It

The second option to renting a home to a tenant would be to hire a Real Estate Agent to market, screen tenants and handle the needed paperwork. Typically the Agent would charge a one time fee due after the tenant has leased the property. Sometime there may be an additional fee if the tenant renews their lease. Be sure to ask your Agent what fees are involved and get it in writing. 

Once the tenant is in place the Real Estate Agent will not manage the property. The Landlord would be responsible for any collection of payments, repairs or legal issues.   

Hire a Property Management Company 

The third option would be to hire a professional Property Management Company. The Property Management company would be responsible for marketing, finding and screening perspective tenants and the day to day managing of the property. Dealing with maintenance requests, handling tenant move outs and evictions if necessary. For more information about what services a property management company offers it's best to interview a few and also ask for referrals from people who currently have rental property. 

Summary  

Renting a home can be a lucrative venture but can also have some pitfalls. Be sure do your research before jumping into being a landlord. Seek counsel from licensed professionals such as a Real Estate Attorney, CPA, Insurance brokers and such 

Renting your home

Dec. 29, 2019

Home Value

 

Home Value

Home Value Definition 

Property value is what a Buyer is willing to pay for a property and the amount a Seller is willing to accept. Factors such as motivation, condition of the property, how much similar properties in the area selling for, location and other factors determine the homes value. According to economic theory, defines Value as the point where supply and demand meet or what the current market will bear.

One-Line Automated Values

There are many automated systems on-line that incorporates public data that takes in account home facts, location and market condition. However it is just an estimate and not a Professional Appraisal or a comparative market analysis or CMA from a Real Estate Agent and does not take many considerations. 

Comparative Market Analysis

A Comparative Market Analysis or CMA is performed by a Licensed Real Estate Agent and locates similar homes to the subject property that have recently sold. It is not an appraisal however gives a rough idea of the value of the home. In the perfect world the agent would find 3 similar homes in the same neighborhood, same construction, approximate square footage and has sold in the pasted 3 months. Sometimes the Real Estate Agent will have to stretch their search if there has not been recent activity.  

Request a Free Comparative Marketing Analysis

Comparative Market Analysis

Posted in Selling a Home