Top 10 Questions for Property Buyers
- Q:
Shouldn’t I find the home I want to move to before putting my
current home on the market?
A:
No. If you have to sell your current home in order to buy
another one, your offer, contingent upon the sale of a home that is
not even on the market, will not be a strong one and is not likely
to be accepted. Besides, by the time you get your home listed
and under contract, the home you want to move to will likely be
gone. Inventory remains strong. With the help of a real
estate agent, you will be able to find the right home for you.
- Q: How do
I determine how much home I can comfortably afford?
A:
The best thing for you to do is to talk to a loan officer with a
mortgage company. There are so many programs available, with
conditions and rates changing daily, that you need an expert who can
listen to you, evaluate your financial situation and then custom
design a financial strategy and plan that will best meet your needs.
In concert with your real estate agent, the three of you will
achieve your goal of finding the right home for you.
- Q: Won’t I
get a better deal is if I buy a home from a “For Sale By Owner,”
eliminating the real estate agent’s commission?
A: Not necessarily. About 85% of the homes on the
market are listed with a real estate company. The remaining
15% are “FSBO’s” (Fiz-bo’s, as well call them in real estate).
Which pool would you rather choose from? The FSBO is going it
on his own to increase his net, avoiding paying a commission.
Those looking to buy from FSBO’s are generally looking for a “deal.”
The two are at opposite ends. In representing a buyer, I
derive my commission from the seller. I don’t charge my buyers
anything. Stop driving around wasting your time and let me do
the legwork for you.
- Q: I’m thinking
about building, rather than buying an existing home. What
are the pluses and minuses?
A:
I’ve done both, so here’s my “two bits.” The pluses to
building are you get to pick your location, choose your builder,
select the paint and stain colors, brick, roof, countertops,
flooring, carpet, light fixtures, faucets, sinks, upgrades,
built-ins, etc. Building generally costs more than buying an
existing home of the same size and with comparable features, but you
get everything exactly the way you want it. The downside is
the unexpected surprises during construction if you don’t do your
homework, living with other new construction after you move in if
you’re in a subdivision and the additional cost of putting in a
lawn, landscaping and window coverings. One thing I discovered
is even if you plan carefully in your building, after you’ve lived
in the home for awhile, there will be a few things you would do
differently.
- Q: Why do
I need a real estate agent to represent me? Won’t I get a
better deal if I just talk directly with the listing agent?
A:
You can talk to the listing agent, but how many listing agents do
you want to have to talk to? Wouldn’t it be easier to let one
real estate agent represent you and let him or her talk to all the
listing agents? Some buyers think (erroneously) that they will
get a lower price if they deal directly with the listing agent,
since he or she will be getting both sides of the commission, he or
she will be likely to cut his or her commission. Remember that
the listing agent represents the seller, not you. The listing
agent has the seller’s best interests in mind, not yours. If
you get into a situation where one real estate agent is representing
both the buyer and seller, it presents itself for a conflict of
interest. In this situation, an intermediary should be used.
- Q: With so
many services being offered on the internet, can’t I just do
everything online?
A:
There is a wealth of information on the internet. It’s
fascinating to see what you can discover by surfing the net.
But like most businesses, real estate is still a service industry.
Your wisest choice should be to select a real estate agent, loan
officer, inspector and title company who you can get face to face
with. Why take risks with the most important financial
investment you will make in your life with the hopes of saving a few
bucks?
- Q: I’ve
heard that homes should sell for 20%-30% above the assessed value
shown in the county tax records. Is that true?
A:
That could be true, but in making an offer on a home, that is not
the method I use to determine what would be a fair price to offer.
When you find a home on which you want to make an offer, your real
estate agent should prepare a Comparative Market Analysis, based on
comparable homes that have sold recently in the same area, to
determine what a fair price would be to offer on the home.
This is more recent data than the last time the county assessor
evaluated the property. It is also some of the same kind of
information that an appraiser will use in determining the value of
the home for a lender.
- Q: Do most
of the subdivisions on Parker County have homeowner’s
associations?
A:
Most do not have mandatory homeowner’s associations with enforcement
powers. There may be some where membership is voluntary.
If you are concerned about restrictions, you need to read to the
deed restrictions or subdivision covenants that were filed when the
subdivision was created and check for any amendments. Many
buyers do not want to be saddled with a lot of restrictions.
Some deed restrictions may be in place on paper but there is no
enforcement authority in place to enforce them. The bottom
line is to be a good neighbor. Talk with some of the residents
of a particular subdivision to find out what it’s like.
- Q: With
all the Barnett Shale drilling activity in the area, how important
is it that I purchase property with the mineral rights included?
A:
There can be many answers to this question. With a small
parcel, say 2-5 acres, even if you own 100% of the mineral estate,
the royalty you receive may not be significant. Your greater
concern could be control of the use of the surface by the oil and
gas companies. In housing subdivisions, the seller may not own
any mineral rights. Those may have been severed and reserved
in a previous transaction. You will want to check the
subdivision covenants and restrictions to see if drilling within the
subdivision is prohibited. If so, you are protected from
disturbance of your surface, even if you don’t own any mineral
rights. The title commitment you receive from the title
company will not specify whether the property you are buying has any
mineral rights. If you want to be certain you should contract
with a landman or an attorney to do a title search, specifically for
mineral rights.
- Q: What
are the benefits of the “Ag Exemption” and what do I have to do to
qualify for it?
A:
Landowners want to have their land classified for “agricultural use”
because it lowers the value of the land and thus lowers their taxes.
There is no minimum amount of acreage required in order to obtain
this classification. The key is the use of the
property. The land must be devoted principally to agricultural
use. Examples include production of crops, livestock, poultry,
fish, cover crops, exotic animals and wildlife. If you own
land that’s been classified “agricultural” and you change its use,
you will owe a rollback tax. You can learn about all of this
in greater detail by going to the Parker County Appraisal District’s
website at
www.pakercad.org. Click on “Tax Payer Rights” in the left
hand margin, then click on “Saving on Agricultural Land Taxes” in
the box on the right. This is a very helpful website dealing
with all kinds of tax matters in Parker County. You can also
call the appraisal district and talk with someone who will explain
this and any other tax related matter to you. The phone number
there is 817-596-0077.
Top 10 Questions for Property Sellers
- Q: Aren’t the
winter holidays a bad time to have your home on the market?
A:
In North Texas, the peak months for closings are May through
October, so there is more activity during some months than others,
but that doesn’t mean you shouldn’t have your home on the market
during the holidays. Holiday decorations make the home show well.
Some buyers aren’t controlled by the seasons. People get
transferred year-round, the move may involve a change in schools and
it’s more convenient to move at the end of the calendar year, people
get divorced year-round which forces sales and purchases of homes,
and if there are fewer homes on the market during the holidays, then
you won’t have as much competition. Usually those looking at this
time of year are the more serious buyers. The only thing I can
guarantee you is that you won’t sell your home if it’s not on the
market. Besides, top producers like me continue to work hard during
the holidays rather than giving up and taking the rest of the year
off.
- Q: Should I
redecorate before I put my home on the market?
A:
That depends on how much you plan on doing. Talk with a real estate
agent and get an idea of what your home might sell for through a
Comparative Market Analysis. Spend money to maximize your net, but
not so much that you can’t recover the investment. If your décor is
dated but in good condition, the home will show okay and buyers will
recognize that it has been well cared for. Some buyers may not care
if the décor is dated. It’s tough to guess what a buyer might or
might not like. If you do redecorate, go with light, neutral
colors, which will make the home feel larger. With flooring,
ceramic tile is always safe, even if it costs more than vinyl. Many
buyers expect ceramic tile over vinyl. Price the home accordingly
and let the buyer make an offer accordingly, but pay attention to
the feedback you receive from showings. You may need to redecorate
if you continually get comments that the home is dated and you
haven’t received any offers. If the home shows wear, whether the
décor is dated or not, it may be wise to paint and replace carpet,
especially if you are in competition with new construction.
- Q: If I can’t
get the price I want for my home, shouldn’t I wait a while to put
it on the market and let it appreciate?
A:
Not necessarily. Interest rates could go up, driving potential
buyers out of the market and costing you more in interest for the
loan on the new home you want to buy. Home prices could go up, so
the home you want to move to may cost you more. Then the ultimate
question becomes “how long are you willing to wait?” You need to
know at what rate homes on your area have been appreciating over the
past few years as well as what the projected economic conditions are
for the near future. Waiting also might cause you to lose some tax
advantages and you could end up making two house payments.
- Q: Won’t I save
money by selling my home myself, rather than paying a commission
to a real estate agent?
A:
Not necessarily. For Sale By Owners (“FSBO’s”) tend to overprice
their home, taking longer to sell. Most buyers use a real estate
agent and don’t want to hassle with a FSBO. The result is that the
FSBO makes unnecessary additional house payments, pays more taxes,
and is inconvenienced by more showings. Rather than his or her home
being a “shiny penny,” it can become “stale bread.” Remember that
as your real estate agent, I am a trained negotiator, I am not
emotionally involved in the transaction, I know the market values
and I understand the needs of both the buyer and the seller.
- Q: Is it better
to list with a large company that provides many services or with a
small company that may provide more personal service?
A:
Well, as you can see, the key word in this question is “service.”
What is most important is that you choose the right real estate
agent, regardless of the size of his or her office. You want a real
estate agent who will listen to you, who will communicate with you,
who will work hard for you, and who is in this business full-time.
Selling your home should not be a gamble. You need a real estate
agent who has a system. Together, we will price your home, using a
Comparative Market Analysis as a tool. I call every agent who shows
your home, requesting feedback, and I communicate it to you; the
good and the bad. I will make recommendations to you throughout the
listing period in order to expeditiously sell your home. Once you
have chosen the right real estate agent, the advantage of him or her
being associated with a large office is the muscle behind the
organization. The advantage of listing with a large company like
CENTURY 21 Judge Fite Company is that we are a “one stop shop” for
buyers. That means we have more services to offer our buyers and
sellers in facilitating the purchase or sale of a home. With over
thirty agents in our Weatherford office who are constantly
communicating with each other about their listings and the buyers
they are working with, you have many agents working to sell your
home, not just one.
- Q: Isn’t it
best to list my home at the high end of the market range or above
so I’ll have room to bargain with buyers?
A:
No. If you price the home too high, it may sit and be ignored by
prospective buyers, who will favor more reasonably priced homes.
It’s better to price the home to sell so you will attract more
offers. Stick at or close to your list price. If you’re fortunate
enough to receive multiple offers at the same time (it happens more
often than you might think), the competition between buyers could
result in a higher sale price.
- Q: Should we
use an info tube attached to the yard sign?
A:
I don’t use one unless my seller insists. People are usually
looking for reasons to eliminate homes from their list. If they
find a negative on the info tube flyer, they may eliminate your home
without ever seeing it. I place my rider on the sign with my cell
phone number on it. I want to talk with people about your home,
emphasizing its highlights and trying to convince them that they
should to see it.
- Q: Is it a good
idea to offer a homeowner’s warranty to any buyer purchasing our
home?
A:
Generally, yes. Most buyers are going to ask for one anyway. You
can use it as a marketing tool in an effort to give your home a leg
up on the competition, letting the buyer know you are offering
something of value to the buyer. Many sellers don’t know that they
can take out a sellers warranty for a small fee, to be paid at
closing, which can cover many items during the listing period. If
the inspection turns up an item in need of repair that’s covered by
the warranty, the seller pays only a service fee and the item will
be fixed or replaced, saving the seller some money.
- Q: Will you be
the only agent showing my home or will there be others?
A:
I will be placing your home on the Multiple Listing Service
(“MLS”). The MLS in North Texas covers 29 counties and there are
over 19,000 real estate agents who are members. In being on the
MLS, you in effect have thousands of agents working to sell your
home as they search for compatible listings for their buyers. When
you consider those numbers, it’s unlikely that I will actually bring
the buyer on your home. However, there are many things I will do in
marketing your home. (See the answer to FAQ #10.)
- Q: Will you
advertise my property beyond just sticking a sign in the yard and
placing it on the MLS?
A: Yes. With CENTURY 21 Judge Fite Company, your home will be
listed on 19 websites and will appear in our CENTURY 21 Judge Fite
Company Home Guide, which has 18,000 copies distributed all over the
Dallas/Fort Worth Metroplex every other month. In addition, we
advertise in the Weatherford Democrat, The Shopper and the Fort
Worth Star-Telegram. I preview your property at our weekly office
meeting, telling the agents in my office about your property. We go
on property tours at least once a month, where our agents view and
comment upon homes on the tour schedule. In some cases I publicize
a home to area real estate agents through Brokers Open Houses and to
the general public through Public Open Houses.
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