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How To Sell Your Home and Earn The Most Money
DeSoto Homes For Sale
The DeSoto housing market is hot. High demand and tight supply is keeping prices up and forcing homeowners that weren’t thinking about selling their home, to reconsider.
Dallas prices were up 25% from a year ago in the just-released S&P CoreLogic Case-Shiller Home Price Index. Dallas’ annual price growth has been at the highest rate ever, for the last three months based on data in the Case-Shiller index.
Additionally, local price hikes outpaced the nationwide increase of almost 19% from November 2020 levels, according to Case-Shiller’s survey of 20 major U.S. markets. Economist don’t see an immediate change to these numbers.
As of today, there are 35 active listings in DeSoto.
In this market- listings are not lasting long. I’ve recently had listings that went active, and then two days later my clients and I were in a multiple offer situation.
Clients are submitting appraisal waivers with their offers, hoping to set themselves apart and get accepted. Homeowners are also waiving their option period to make their offer look more appealing. An option period is an agreed-upon period of time, after the buyer and seller have signed the real estate contracts, during which the buyer can terminate the contract for any reason without risking their earnest money.
Something else I’m seeing, is out of state investors putting in bids on homes, after only seeing the home virtually.
There just isn’t enough inventory right now, and economist don’t think we will have a balanced market until 2023. A balanced market is about 4-6 months worth of inventory.
Although this has had a huge effect on all areas of real estate- including leases and new construction homes, I can navigate this environment seamlessly on your behalf, and get you into the perfect home, or out of your current one.
If you or anyone you know is looking to move to the DFW area or sell their home, contact Aaron Everett at 214.403.0805.
No profit on home flipping for Zillow
A huge surprise by one of the country’s largest residential firms is catching attention from consumers to housing market professionals.
Housing sector giant Zillow Group announced it was closing the doors on its home flipping operations because they lost millions.
The company was selling most of its houses in major metro areas, like Dallas – Fort Worth, at a loss.
Zillow acquired homes from sellers and fixed them up and resold them for a profit. The problem was that these homes were being sold at a loss instead of the intended profit.
In a letter to stockholders. Zillow forecast $240 million to $265 million worth of losses on homes it has lined up to purchase in the fourth quarter.
This makes sense because Zillow is shutting down its home buying operations and laying off workers in the division.
“We expect to acquire close to 9,000 homes and sell approximately 5,000 homes at the midpoint of our fourth-quarter revenue outlook,” the letter to shareholders says.
Zillow is selling over 80% of Dallas – Fort Worth area homes at a loss, according to a report by Business Insider. The company is also losing money on over 60% of the houses it sells in its five largest metro markets, the Business Insider reported.
The downfall of Zillow’s home flipping business comes when housing prices in North Texas are at record levels. Most homes in the D-FW area are selling above list price, and many get multiple offers.
James Gaines, the longtime Texas Real Estate Research Center economist, said he’s not surprised Zillow stubbed its toe in the home flipping business.
“I think it got out of hand with them,” Gaines said. “They started buying properties faster because they had the money.
“In essence, they probably paid too much in the first place, but they had to pay those prices to get the properties.”
Are there foreclosures headed for Dallas-Fort Worth and the nation?
Plenty of homeowners have been kept safe from foreclosures since the start of the COVID-19 pandemic.
Mortgage forbearance and foreclosure moratoriums were put in place due to homeowners losing their jobs due to the pandemic. These programs will eventually come to a halt and everyone wants to know, is a foreclosure spike on the way?
The Economy
When the virus arrived, it was nothing more than a health issue that acted as a domino effect that was triggered around the nation. Vaccinations have alleviated some of the COVID impact, but we still have a good way to go before we all can return to regular activity without wearing mask.
We thought we had the pandemic under control, but then the Delta variant came along, and it was almost like we were starting over again.
The government even pumped major fiscal stimulus packages into the economy, but not as much as we hoped for. According to Economist Dr. James P. Gaines, it will be challenging for the federal government to keep interest rates low during the course of the year. He also mentioned that employment rates are back up, compared to when the pandemic first started.
On a more alarming note, it’s projected that we will see an uptick in inflation for the first two quarters of 2022, and maybe even into the second half. According to economist, there may be another recession, in 2022 or early in 2023.
What do banks do with all these foreclosures?
Banks are in the business of lending money and not holding onto assets. Unfortunately, when a homeowner has defaulted on their loans, that home needs be sold.
An Asset Manager is tasked with getting a REO (real estate owned) agent to list the asset and get it sold. The agent is tasked with offering cash for keys – if the property is still vacated, rekeying the property, making sure the property is checked weekly, insuring the grass is well kept, maintaining trash on the property, and recommending necessary contract work. This is all before the property is listed on the market.
Reopening the economy will take all of 2021, but we’re moving in the right direction with job recovery, and consumer spending picking up. Regardless of what happens the Dallas-Fort Worth market has been resilient, and this is still a great time to begin your home buying or selling process.
Do you really need a Realtor to sell your home?
I speak with a lot of homeowners that want to weigh all of their options before they sell their home, whether by listing with a Realtor or attempting to sell it themselves.
Who doesn’t like saving a few dollars wherever they can? I still use coupons for my purchases and feel great about the bargains I get, but this same approach shouldn’t be used when trying to sell your most prized possession.
I firmly believe you should always consult with a Real Estate professional to make sure you maximize your earning potential.
For Sale by Owner
A For Sale by Owner (FSBO) is a homeowner that is trying to sell their home without the services of a Realtor. Many homes have sold without a Realtor, but at what price? When you attempt to sell your home by yourself, you may actually make less than if you hired a Realtor.
According to the National Association of Realtors, FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a Real Estate agent. Yes, you read that correctly. There may be a lot of reasons why a FSBO doesn’t want to hire an agent – a previous bad experience, not wanting to pay the agent’s commission, and the list goes on. I’ve seen homeowners that work with agents who they then get to cut their typical 3% agents’ commission down to 1%. The homeowner doesn’t take into consideration that the agent has to pay his or her brokerage commission, a photographer to take pictures of the home, as well as other fees. A lot goes on during a real estate transaction that homeowners may not see, and it’s always in the homeowners best interest to have one on their side.
You have to ask yourself, can I really afford to lose out on almost $60,000 while trying to sell my home by myself?
Sellers Disclosure
This legal document is important since it provides the details of the property to the buyer. A lot of FSBOs may not understand the importance of filling out this document correctly, since it’s the basis of many lawsuits when we’re talking about selling homes.
If a seller lies or with holds information in this document, the buyer legally has every right to go after the seller.
There are a number of legal ramifications if this disclosure isn’t filled out correctly, so it’s always recommended to solicit the services of a Real Estate professional for all your real estate needs.
Time is the one thing we can’t get back
Unfortunately, for homeowners most of the time buying their next home is dependent on selling their current home.
I’ve seen FSBOs keep their home on the market well over a year just to save the money that they would usually pay in agent commissions.
When this happens, FSBOs miss out on homes on the market that they would usually transition to with the help of a Real Estate agent.
They are stuck with other tasks like coordinating open houses, putting for sale signs in the yard, and fielding numerous offers.
Unfortunately, some FSBOs may not price their home based on the comparisons in the area, but based on the upgrades they may have put in the property. This is a major major mistake because if the home isn’t priced correctly it will not garner the interest the homeowner is looking for, which results in the home sitting on the market a lot longer than expected.
Now ask yourself, how much time do you have to waste?
Consult with a Realtor
Hiring a Real Estate agent allows homeowners to steer clear of a lot of pitfalls related to selling their home by themselves.
Being able to field multiple offers and relay that information to the homeowner in a timely fashion is a task that should be left to the professionals, as there are a lot of errors that could be made along the way.
After an offer has been accepted on a home, the homeowner can choose to agree to an option period. An option period is an agreed upon time between a buyer and a seller to get the home inspected. This is vital because the buyers’ agent must coordinate with their client to get an inspector out to the home in the agreed upon time.
Fielding multiple offers and coordinating with the lender, buyers agent, the title company, and inspectors can be a real headache if you’re not well versed in this area.
These reasons, and many more, are why you as a homeowner won’t regret hiring an agent to sell your home.
Give me the opportunity to show you all the benefits of hiring a Real Estate agent.
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