Dallas Area Real Estate Market Update

Posted by Jackie Lillis on February 18, 2012
Posted in: Home Buyers, Home Sellers, Real Estate Topics for the North Dallas Suburban Area. Tagged: , , , , . Leave a Comment

Collin County Median Home Sale Price

How’s the market?

This is a question I get a lot…especially lately. Real estate is hyper local and here in the North Dallas suburbs we have been more fortunate than in other areas of the Country. Instead of the sharp declines, that other states experienced, home prices in the Dallas area have remained flat since 2007 and dipped slightly in 2011. As indicated in the Collin County sample chart (left), there was some volatility in price ranges over $360,000. (Click graph to enlarge)

No market gains in equity combined with bad loans (remember interest only loans?)  were the culprit in so many homeowners being forced to do a “short sale” or face foreclosure.

The easiest way to test market health is by comparing home inventory for a particular month against data for that same month for one & two years prior. A “months supply” report tells us how many months it would take to sell every active listing in a particular range of criteria (like price, zip code, county) based on current activity. In a balanced market, that number is 6 months. Under six months of inventory then can be considered sellers’ market territory and over 6 months supply–buyers’ market territory.

Here are the current supply reports for Collin, Denton, Dallas, & Tarrant Counties by price range; (click any graph to enlarge)

Collin County Home Inventory Report 2012

Dallas County Home Inventory 2012

Tarrant County Home Inventory 2012

Denton County Home Inventory 2012

As you can see, the picture has changed quite a bit from January 2010 & 2011 to now. Inventories are way down, which of course means supply is in more demand, especially under $300,000. Homes priced over $400k will continue to have longer days on market, but the picture is much brighter than a year or two ago for those sellers as well. (And “the good ones”–great location, layout, lot, and appeal–will sell in almost any market.)

Another wave of foreclosure inventory could set these numbers back in 2012, but I believe the market is in a positive transition away from the buyer’s market domination. I wouldn’t say that’s bad news if you’re a buyer, but it does mean you’ll have more competition. And a good, move-in ready property will likely sell for market value. So if you’ve been sitting on the white picket fence, it’s time to get serious before the spring buying season is in full bloom! And if you have been waiting for the market to favor sellers, this may be a great time to get that property listed.

While these graphs accurately portray the general activity with a county, your specific subdivision could look different. Contact me for information or data for your property.

Buyer or Seller, call me for a no obligation consultation or goal assessment. 

Out with the “Old World”

Posted by Jackie Lillis on January 31, 2012
Posted in: Real Estate Topics for the North Dallas Suburban Area. Tagged: , , . Leave a Comment

old world is getting a little tired...

Here in the Dallas area, the Old World style of interior design & decor has been extremely popular for several years–dark woods, lots of iron , skip troweled walls, ornate accessories, and heavy, rich fabrics in burgundy, gold, & olive. Have you seen HGTV’s “Donna Decorates Dallas”? If so, you know “Bling is Her Thing” and so is everything Old World-traditional. (And the girl really loves her leopard!) Donna is obviously super creative & talented, and I think she is an awesome designer whom I would love to meet someday. But the trend is moving away from that type of styling to something fresh… 

Calming & full of personality

Just in Time for Spring!→

Out with the heavy/dark and in with the lighter, tranquil, reclaimed look that appears to be the trend. Soft blues, greens, calming neutrals, and grays are becoming increasingly popular color choices.  Considering the economic climate, people’s hectic schedules, & an increasing awareness of carbon footprints, it is no wonder that people are becoming drawn to calm spaces, spa-like colors, and earth friendly surroundings. We no longer want or need to be surrounded by over-the-top opulence. The showy, surface stuff just doesn’t feel good anymore. Casual, genuine, personality-reflecting spaces are where it’s at! Darker pieces still have their place and can have an important function– anchoring a room. The trick is to mix it up a bit so that the overall feel is fresh!  

 Here are a few colors from the Pottery Barn/Benjamin Moore collection below…use a soft hue on your walls to give a fresh, new look. Or try painting an old piece of furniture, reclaimed wood, frames, or candleholders to add some charm to a room.  And the great thing about this look is  it is not supposed to be perfect! Weathered finishes, dent and dings all add to the personality, history, & interest (like the headboard below & the green shutters above).   Notice how  each piece looks “found” and not bought as a set  at a big box furniture store. Cottage-chic, vintage style, French modern…whatever you want to call it–make it yours!

Frisco’s Newman Village

Posted by Jackie Lillis on January 15, 2012
Posted in: Home Buyers, Real Estate Topics for the North Dallas Suburban Area. Tagged: , , . Leave a Comment

For months now, I’ve wanted to start a weekly video & article featuring a Frisco neighborhood. Armed with my iPhone, I knew I could get some quick clips of areas while I was on the go. I kept putting off actually posting anything because, being a newbie to the world of video editing,  I couldn’t figure out an easy way to string these clips together before uploading to YouTube. Then I discovered the iPhone app “iMovie”. (It’s really fun to use!) So, this my first “on the fly” neighborhood spotlight video. I know it’s not stellar, but I’m learning!  

Newman Village

“…is a one-of-a kind residential development committed to a focus on integrating works of art and the designs & traditions of old world classical architecture throughout the community.”

~263 acres conveniently located off the Dallas North Tollway in Frisco

~Gated village with upscale single family & patio homes

~Central Plaza for formal & informal events and parks and trails woven throughout the community

~Swim & Tennis Center (Future Phase)

~Custom builders include Darling, Belclaire, Bob Bobbitt, Peckham, and more

~Prices start in the high $400′s

Contact Jackie for your personalized informational packet & access to incentives!

How to Negotiate Repairs Post Home Inspection

Posted by Jackie Lillis on January 12, 2012
Posted in: Home Buyers, Home Sellers, Real Estate Topics for the North Dallas Suburban Area. Tagged: , , , . 1 comment

I am re-posting this blog entry as it was the TOP POST in 2011…

Buyer and seller have agreed to the terms of sale after a day or two of negotiations. Great! But don’t open the champagne just yet…Next comes the home inspection. Sellers anxiously await the results of the report hoping nothing major is discovered. Buyers hope the same, but they’ve got their magnifying glass out to make sure they are not inheriting someone else’s oversight.

A thorough home inspection is a critical step in the home buying process. And I promise the inspector will find something to report, even if it’s very minor. After all, a buyer is paying them to find faults. Deficiencies are noted on the report and the buyer must decide which items they want repaired.

Once a repair list amendment is submitted to the sellers, the deal opens back up for negotiation.

Before preparing the list, the buyer must decide which items they want the seller to do, which ones they want to handle & pay for themselves, and which ones they want the seller to pay for but want to oversee post-closing themselves. Your Dallas area Realtor will be your best guide to help you determine how to proceed.

Here are some simple, basic, common sense ways to approach this part of the transaction as the BUYER. These apply to most pre-owned home purchases in the North Dallas suburbs including Frisco, McKinney, Allen, Plano, and Prosper, TX regardless of price point;

  • If you are paying market value or higher for the home, you should expect all systems to be in good working order and maintenance items should be completed as part of the deal. You should ask for repair items and expected maintenance items to be completed by the seller or for “closing costs” in lieu of repairs. This shows up as a credit on the closing statement, as seller closing cost concessions, and can be used to decrease your cash-out-of-pocket at closing. This way, you have more cash to use to complete the repairs post-close. (Sellers generally like this method because it frees them from having to hire out the work and absolves them from future hassles if the job isn’t done right.)

**A word of caution when taking a credit at closing in lieu of repairs–do so within reason. A lender and appraiser will raise an eyebrow if the total is too high (ask your Realtor for suggested limit).**

  • If you are paying below market value for the home, you can’t be as picky. Ask for major repair and safety items to be completed only. You may need to hire a handy man or do the other repairs yourself after closing. Understand that you are probably getting the home for below market because it’s not in perfect condition. So, you can’t then expect the seller to make it perfect for you.

Please note; certain loan types can change the rules here. FHA loans, for example, have different home condition standards than conventional loan types. Safety items are especially scrutinized by an FHA loan appraiser. So, some repairs then must be completed before a sale can close. Also, if you are buying a foreclosure property you are negotiating with the bank, which many times is selling the property strictly as-is. In a short-sale purchase there is usually no allowance for repairs.

In general, both parties want the deal to close and will be reasonable when it comes to repairs. Negotiations are done within the “option period” in the contract so that if terms are not agreed upon or items are discovered that are unfavorable, the buyer can cancel the contract and receive their earnest money back.

**If a seller is given a copy of an inspection report, they are deemed to have received notification of condition and legally must now disclose any items in need of repair on a revised Seller’s Disclosure form. If the seller corrects these items that they can skip this, unless it is a major item like roof or foundation repairs.**

It is critical that both buyer and seller are represented by an experienced, knowledgeable Dallas area Realtor to protect their interests and to guide.

Do you have any questions about this topic? Please comment below, email, call, or chat via right sidebar, and I’d be happy to help! “And now for something completely different…” (just gotta love the Monty Python gang.)

Home Search via North Texas MLS

Posted by Jackie Lillis on December 6, 2011
Posted in: Home Buyers. Tagged: , , , , , . Leave a Comment

Need a powerful, highly specific, easy-to-use online home search tool? Check out my North Texas MLS Home Search site.

Use the “POWER SEARCH“ link for targeted filters to laser-focus your search! You can even search by subdivision, a specific school name, or lake view for example. Or try filtering in or out foreclosures & short sales to get only the results you want.

Dallas – Ft Worth Real Estate :: Fathom Realty

 

Are you Sabotaging Your Own Intention?

Posted by Jackie Lillis on December 5, 2011
Posted in: Real Estate Topics for the North Dallas Suburban Area. Tagged: , , , . Leave a Comment

Scenario #1; The home is clean, perfectly staged, all repairs complete, and properly priced. The seller is ready for market…Yes? Well, maybe not.

Scenario #2; The buyer has been shown dreamy homes that are a perfect match to her wish list, is pre-approved for financing, and has the down-payment & closing costs ready to go. Time to write a contract? Not necessarily.

There is one additional factor to consider, otherwise an unseen snag can stop these transactions dead in their tracks–INTENTION.

When one’s true intentions do not match one’s actions, the result is self-sabotage.

For a seller, I’ve seen self-sabotage take the form of not showing the property in its best light, refusing to make needed changes, blocking showings, or refusing reasonable offers. And most times they are not even consciously aware they are doing this!

But why would someone go through the hassle of having their home on the market if they aren’t willing to do everything in their power to actually sell? Usually a seller has not made the mental shift from “home” to “house” and is either emotionally attached to the property or is feeling some insecurity revolving around moving on to the next chapter.

It is vital for a homeowner to be certain in their decision to sell and this is best accomplished by understanding the INTENTION behind selling. Questions one should ask themselves would be; “What will I gain by selling?”, “Does it makes sense financially?”, ”Will it help me to accomplish a goal, dream, desire?”, and “Am I holding on to any attachments or emotions that are keeping me from moving forward?” If the answer to this last question is yes, and all the other factors for selling are positive, then a seller must let go of subconscious resistance.

Many times, people will have to “see something worth moving for” before that sign goes in the yard. This can actually be helpful. If a seller gets familiar with samples of what they can expect to find when it comes time to look for a new place, it can create excitement and that little push to help a seller release resistance.

For a buyer, the self-sabotage comes in the form of uninspired action. Afterall, if after looking at 37 homes that fit a buyer’s criteria has resulted in no offer, something is off. The buyer will find ways to poke holes in every property. This almost always signal to me that fear is steering the ship. A fear of financial committment or the fear of making the wrong choice are likely culprits. Or in dealing with couples, one could be sabotaging the other’s intention. (But that is a tricky topic for another day…)

If finances are in order and the purchase will result in an improved lifestyle, then understanding the tremendous benefits of home ownership and trusting one’s own intuition/guidance system will leave fears in the dust.

Being true to one’s own intention can dramatically change perspective which in turn can transform one’s belief.

Contact me if you need practical advice, counseling, or a kick in the pants! :)

Updated Property Tax Rates for 2011-2012

Posted by Jackie Lillis on November 9, 2011
Posted in: General Real Estate Advice & Information, Home Buyers, Home Sellers, Real Estate Topics for the North Dallas Suburban Area. Tagged: , , . Leave a Comment
The updated tax rates for 2012 are now available. Simply take your taxable property value (after any exemptions) and multiply by the rate found in the chart below for your County, City, and School ISD… Contact me if you would like a PDF version emailed to you!
 

Simply take your property's taxable value & multiply by the rate for your county/city/school.

How to determine your home’s market value with a CMA

Posted by Jackie Lillis on November 9, 2011
Posted in: General Real Estate Advice & Information, Home Buyers, Home Sellers, Real Estate Topics for the North Dallas Suburban Area. Tagged: , , , , , . Leave a Comment

What’s in a CMA? A Comparative Market Analysis is the gold standard in determining your North Texas home’s market value. The CMA  contains the SOLD data that Realtors use to suggest a list price and set client expectations for a sale price. Appraisers use this same data to create their valuation reports. Please note; Texas is a non-disclosure state when it comes to SOLD data, so a consumer must go through a licensed Realtor or Appraiser to obtain this information. So let’s break it down…

 

The most effective CMA contains SOLD data;

  • 6 months back (1 year is acceptable if more data needs to be pulled for proper comparison)
  • Homes in the same subdivision whenever possible
  • If there is a pool, the best comps will be other homes with pools (and vice versa)
  • Homes within about 500 square feet of the subject property
  • Homes built within about 3 years of subject property
  • The same story (one story homes sell for more per square foot because it is more expensive to build out than up)
  • If this is not a distressed sale, then distressed properties should not be included

The results will provide;

  • Individual property sales data with address, # of bedrooms, # of baths, # of garage spaces, square feet, acres, year built, pool or no pool, days on market, list price, sale price to list price percentage, sold date, sale price per square foot, and sales price.
  • Minimum and maximum results for each item above as well as the Averages.

Working off of averages, adjustments are made for;

  • Level/quality of finishes, features, updates, upgrades
  • Any notable differences in lot/land
  • Amount of competition, scarcity
  • General condition
  • Any negative lot factors (ie: power lines, major street behind, etc…)
  • Seller paid allowances **Note-this is NOT included in a CMA, but should be factored in. This can represent either buyer closing costs or funds paid in lieu of repairs. Ask to see these figures.**

So what does NOT determine market value?

  • “Active” or “Pending” property List Price data
  • County Tax Records; many buyers will use county records to look up the taxable value of a home they are interested in and think that figure represents MARKET value. It does not. The majority of these records are out-dated and inaccurate and should not be factored in whatsoever. As a matter of fact, a buyer should hope to see a lower-than-market-value figure so that when they become the owner, they are paying property taxes on the lower valuation without having to submit an appeal for an adjustment with the county.
  • Sites like Zillow that claim to have valuation data. Again, Texas is a non-disclosure state, so Zillow simply does not have access to sold data and should not be considered.
  • What a seller needs or what a seller paid (in a sense, a seller doesn’t own their equity–the market does.)

Would you like to know the true market value of your North Texas home? Contact me for a no-obligation CMA.

“Faithfully working in my community to achieve synergistic relationships, real results, and blissful clients!”-Jackie

How to Stage a Home for Sale in 10 Steps

Posted by Jackie Lillis on October 26, 2011
Posted in: General Real Estate Advice & Information, Home Sellers, Real Estate Topics for the North Dallas Suburban Area. Tagged: , , , , , , , , , , . 5 comments

Effectively staging a home for sale involves not only an eye for design, balance, scale, & color, but also an understanding of Buyer psychology.

Some sellers believe a simple clean up, making repairs, and removing family photos is all there is to it. It’s a great start, but usually requires much more. Some sellers have a case of stage-fright; they don’t have any “design DNA” so they just hope nobody notices. Or the worst case is sellers who think, “If a buyer doesn’t like it, they can (repaint, remove, remodel).” Wrong! Because they can’t see past the deer heads, orange bedroom, and ancient appliances! So unless this type of seller wants to take way less than market value, it’s time to get real.

**Staging is one crucial aspect to getting to the closing table. Correct pricing and strategic marketing are the other two.** So assuming you have done any needed repairs, have cleaned the heck out of the place, and plan on teaming up with a good agent here is how to…

CONVERT A SHOPPER INTO YOUR BUYER;

 1) Prepare your property first by using a “fresh eye” to do an assessment. In other words, erase any emotional or monetary attachment you have your “stuff”. (I know, easier said than done, but try!)

2) Pre-pack all, yes all, personal mementos, collections, photos, extra books, toys, clothing, etc…) Create 4 boxes marked STORE, SELL, DONATE, TRASH

3) Third, ensure your wall colors are pleasing to the eye–nothing jarring or too taste specific. In most cases, wallpaper or wallpaper borders should be removed.

4) Fourth, take a good look at furniture placement and condition. Any items that have seen better days should be donated or sold. Proper placement of furniture should create conversation areas, traffic flow, and a homey feel. Here is where scale &  balance come in. If it feels “off” it probably is. Make sure each room feels anchored too. Sometimes a room filled with only light colors and nothing to weigh it down, feels uncomfortable. A contrasting rug is a great fix.

5) Assess the accessories you have decided to keep. Use them to help create texture, balance, color, and proper scale. Do not overdo it…less it more. If you need to purchase new items, a few great places for home accessories in the Frisco area include Hobby Lobby &  Kirklands.

6) Open every closet, pantry, cabinet and storage area. They should all be neatly pared down to the essentials. An overflowing pantry or food items in another part of the house signals to the buyer that there is not enough kitchen storage. Pantry items should have can labels facing forward and neatly arranged, opened bags tightly secured, boxes placed book style along shelves. Bins to hold the essentials should be used wherever possible. If you have open shelving that cannot be kept perfectly neat-like in a child’s room-consider buying a few yards of inexpensive fabric and Velcro to create a “curtain”.

7) Bathrooms should be completed edited to the point where there are no visible personal items, shampoo bottles, razors, etc. Pretty soap dispensers, candles, nice towels, and a few other carefully selected items are the only things that should make an appearance. Use a simple shower caddy to transport your items from shower to under a cabinet during showings. Nothing tuns off a buyer like seeing personal toiletries. It reminds them that someone lives there. And remember we are trying to create the illusion that nobody does! Or that the person that does, actually cares about his/her presentation to a potential buyer. I cannot emphasis enough how important this point is. When you have gone out of your way to impress a buyer with the showing condition of your home, the buyer most definitely sits up and takes notice. 

If you were buying a pre-owned car, would you purchase from an owner that presented it with candy bar wrappers and dog hair on the seats? You wouldn’t? Why? Afterall, the wrappers can be thrown away and the dog hairs vacuumed up, right? Nope, you aren’t going to buy it because not only are you insulted, but if this car owner didn’t care enough to clean & detail the car for you, he probably didn’t take perform scheduled maintenance either!

 8) Bedrooms must project tranquility. Often times, this is  a space that needs the most depersonalization. Bedding should be very neat & clean. Again, think “tranquility” when editing bedrooms.

9) Remove pet beds, bowls, etc… during showings. If you must leave out bowls, make sure they are clean & out-of-the-way. Cat boxes should never, never, never be visable…a  major buyer turnoff.

10) It almost goes without saying since it is a no-brainer, but patios/yards should convey a pleasant, inviting space to entertain and relax. (No pet deposits please!) Porches should be welcoming and clean. Landscaping must be well maintained. Remember, engagement begins curbside!

If you prefer to have a professional staging service handle the details for you, we can provide a 2-hour consultation for $125. This will include a personalized assessment & custom, written report with specific suggestions for your property. If you decide to hire us for the actual staging, this fee will be credited to the final cost. Call (972) 898-4832 for details! The combination of our staging & real estate expertise create an effective solution to get your property sold in the least amount of time for the most amount of money!