The Residential Real Estate Selling Process In Austin Texas

Writen by Joe Cline

Decide to Sell
Deciding to sell your home is a big decision. The first step in this process should be to understand your motivations, expectations, financial considerations, goals and what you plan to do upon the sale of your home. Many people begin the sale process with unrealistic expectations or unclear goals. It then becomes difficult to meet their goals because these goals have never been clearly defined. You must begin to view your house, no longer as your home, but as an investment property that you want to market.

Setting the Price
Of course one of your most difficult questions is the listing price of your house. What price should you ask? This is an important part of the sales process. If you set the asking price too high, you may scare away buyers. Agents who feel that your house would not be a good investment may not even show the house. After the house sits on the market for a while, people begin to feel that there is something wrong with it because it hasn’t sold. Even if you could sell your house for an inflated price, many times a lender won’t approve a loan on a house that doesn’t appraise for that amount and the sale might fall through at the last minute. If you under price the home, you won’t realize the maximum potential of your investment.

Many people do a quick comparison of price per square foot, but that does not take several variables into consideration and can sometimes be misleading. Take into account many different factors including other comparable listings, special features of your home, neighborhood and local school information, current market conditions, availability of mortgages and insurance, supply of homes in your area and price range and recent sales.

Marketing Plan
Decide on incentives that to be offered to buyers, determine the best places to advertise, and determine how to show the home. Remember that that goal is to sell the home for the highest price, in the least time, with the fewest hassles.

Prepare the Home for Showing
There are two important ways that you can have an impact in making your house attractive to buyers: property condition and listing price. After deciding on a listing price, setup an appointment with a decorating company. They will give you some suggestions for making your house look its best. This process is called “staging.” The suggestions might be simple such as clearing cluttered counter tops. Or they might be more involved such as painting front doors or repairing obvious defects.

The staging company will look at your house from room to room and will offer advice on how to make each room show great. They will also look at the exterior street appeal, backyard and garage. They have a lot of tips that can make your house shine. After this meeting, you will have a list of what you should do to prepare your house for sale. Following these suggestions in a timely manner will ensure your home shows at its best.

Remember that “staging” addresses the appearance of the house and not necessarily other problems, which might become evident during an inspection. An inspection will uncover most defects that eventually may have to be repaired. In this way you can have the repairs done before a potential buyer’s inspection uncovers a defect that might cause a buyer to either change his mind or to want a substantial repair allowance deducted from the price. It is a signal to buyers that you are a responsible, reputable seller. It also allows you to have plenty of time to schedule any work that might need to be done.

Offer a residential service contract to buyers. This guarantees the major appliances in your home as well as other systems and structures. You can also include coverage for your house while it is on the market so you don’t have to pay for any unexpected repairs.

Marketing the Home
Now the fun begins. Here are some ideas that can be used to promote your home.

• Arrange for a professional evaluation and staging of the home
• Offer a pre inspection
• Offer a Home Warranty
• Do any necessary repairs
• Put up a yard sign
• Put a “lockbox” on your house
• Take digital photos
• Put listing into MLS
• Prepare Color Flyer
• Send out just listed cards
• Prepare virtual tour
• Arrange Realtor tours
• Send flyers to other Realtors
• Place ad in Buyer’s guide
• Place ad in paper
• Consider doing an Open House
• E mail alert sent to potential buyers and other Realtors
• Showcase house on internet sites

It is important for you to keep your house in perfect condition everyday because buyers or agents might come by at any time. Keep the kitchen clean, make your bed every morning and keep clutter out of sight. It is especially important to keep pets and pet odors under control. Some wonderful added touches are fresh flowers and potpourri or freshly baked cookies.

As agents and potential buyers begin visiting your home either virtually on the Internet or in person, try to obtain feedback from the buyers. Make changes to the showing state, condition, and price as feedback deems necessary.

The Offer and Negotiation
You have an offer, now what? Sometimes the buyer will offer you the asking price and have no special requests. In this case, you sign that you accept the offer. Sometimes, the buyer’s offer is a lower price and might have other requests. You should consider what is best for you and make a counter offer. Consider carefully your response because if you counter offer, there is no guarantee that the buyer will respond again. Also remember that, once agreed upon and signed by all parties, an offer becomes a legally binding contract. Never get involved in oral offers and negotiation. If you verbally accept an offer, a buyer has no legal obligation to buy the house and may want to continue to bargain with you to see how low a price you will accept.

No matter how well you have prepared your house and how fairly you have priced it, there is always the possibility of receiving a low offer. It could be a limit to the buyer’s ability to purchase. Don’t take it personally and react angrily. This is business, it’s not personal. You can either reject the offer or make a counter offer. Try to find out as much as you can as to why the offer was low. Certainly if other offers come in very low or if your home is not being shown or not receiving any offers consider adjusting the pricing.

Once the buyer and seller agree on the terms, the buyer will have the home inspected. If there are any problems that are found during this time period then the buyer can withdraw from the contract. The buyer might request that you complete certain repairs before closing or that you contribute a certain sum of money at closing to cover these repairs. If this happens, try not to let contract fall through. After the limited time period is up, the buyer is legally bound to buy your house unless they are denied financing. In the event of cancellation, the buyer would lose any earnest money. One exception to this is in the case of the buyer not receiving funding from the lenders. In that case then the buyer is not held responsible. For this reason, always ask the buyer’s agent for a letter showing that the potential buyer has been prequalified for a loan and, once a contract is signed, ask the buyer’s agent to keep you informed of the buyer’s loan application progress.

Closing
The exciting day is finally here! Verify in advance that all of the paperwork is in order. Request a copy of the HUD1 statement sheet so that you can read over it before closing. Feel free to ask any questions either before the closing or during the closing itself. Typically this is when you relinquish possession of the house so take the keys to give to the new owner.

Joe Cline is a professional real estate broker, investor, and REALTOR with Coldwell Banker in Austin, Texas. Joe believes in providing world class service to his clients through educating and coaching them through their real estate transactions.

Joe’s committment to education and service is reinforced by his achievement and participation in the Austin Board of Realtors, Council of Residential Specialists, Accredited Buyer’s Representative’s Council, Texas Association of Realtors, and National Association of Realtors.

Joe holds his Broker’s license, the Accredited Buyer’s Representative designation, the Certified Residential Specialist designation, the Certified Home Marketing Specialist designation, Cendant Mobility Marketing Specialist designation and the Cendant Mobility Referral Specialist desgination.

You can find out more about Joe and Austin real estate at Joe Cline’s personal website at http://www.joecline.com

San Diego Real Estate, Million Dollar Homes

Writen by Bob Crain

San Diego county has always been known for its Luxury Homes, yet in 2004 San Diego County luxury home sales (homes over $1,000,000) hit an incredible 2774 total units, an increase of almost 170% over total sales in 2003!

In the entire State of California, A total of 33,107 homes sold for a million dollars or more last year. That was up 73.5 percent from 19,080 in 2003. The total was 13,871 in 2002, according to DataQuick Information Systems.

“A million dollars just isn’t what it used to be when it comes to San Diego real estate. Because of appreciation, low interest rates, and San Diego’s Draw as a retirement community, more homes are in the million dollar category than was the case earlier. In fact, so far in 2005 San Diego County MLS shows that there has already been 2130 homes Sold in San Diego County for over $1,000,000 with an additional 607 that are currently in escrow! Looks like another record year.

Million dollar sales accounted for 5.0 percent of all California home purchases in 2004. In San Diego Count, Million dollar home sales accounted for 6.5% of the total Attached and Detached San Diego County Real Estate Sales.

Statewide, there were 221 sales for more than $5 million last year, 237 sales were in the $4 $5 million range, 690 in the $3 million range, 2,894 sales in the $2 million range, and the rest between $1 million and $2 million.

The numbers include home sales where it could be determined from public records that there was a buyer, a seller, that money changed hands, and that there was a legal transfer of property ownership.

Not included were property swaps, sales of multiple lots, teardowns, and large farm or ranch properties. Home sales to companies were included, as were sales to trusts. Rancho Santa Fe in San Diego County is a community where virtually all home sales were in the million dollar category.

According to DataQuick; Around 15 percent of the buyers paid cash, up from 12 percent in 2003. Of those who financed their purchase, the median down payment was 25 percent of the purchase price. Lending institutions most willing to provide mortgage financing were Washington Mutual, Countrywide Home Loans and Wells Fargo.

With San Diego Counties amazing price appreciation, the incredible climate, and the constraints on real estate development… it is this real estate professionals opinion that San Diego County will soon have many zip codes with nothing buy $1,000,000+ home sales.

Bob Crain President
North County Luxury Homes, San Diego Counties Premier Luxury Home Website. North County Luxury Homes is a full service Luxury real estate company and provides both Loans and Real Estate Services for San Diego County Buyers and Sellers. To View the most Expensive Homes Currently listed for Sale in San Diego County go to http://www.NorthCountyLuxuryHomes.com

Pre Construction: How to Make Money in Real Estate Without Doing the Scrunch Work

Writen by Jeanette Joy Fisher

If you don’t have the time to invest working on fixers or if you’re tired of working on fixers to make money investing in real estate, try this method.

Many real estate investors make thousands of dollars on brand new homes with little work. To test this money making system in your area, call new development home sales offices that have most homes sold. Ask about their price for a 3 bedroom, 2 bath. Ask how much this model has gone up since they were first available. If this increase is a substantial amount, then this real estate investing system most likely works in your area.

One caution: your real estate market and employment in the area should be stable.

How to do the “new home” or “pre construction” investing system:

1. Look for a new development with only a sales office trailer and pre construction site.

2. Pick out the model you like and the lot you want. Get a corner lot inside the tract away from noisy streets. Avoid lots that could back up to a major street someday.

3. Secure the purchase of the home with a deposit.

4. After completion of home and purchase, the home should have appreciated.

5. Landscape using Design Psychology. Use colorful flowers that attract buyer’s eye to the front door. Provide a separate walkway to the front door so buyers don’t have to walk around parked cars.

6. Sell with Marketing Psychology. Stage the home with a few props like lamps, plants, and mirrors. Turn on all the lights.

7. Monitor your sales process and keep the sale on track. Be sure your buyer follows through with the steps needed to close on time.

8. Go to the bank and celebrate!

My friend made $50,000 on a $300,000 home with only $2,000 out of pocket. My son’s co worker made $100,000 on an Orange County house, with $20,000 invested for only three months.

Have fun, and make money, without the scrunch work!

Copyright © 2004 Jeanette J. Fisher. All rights reserved.

Jeanette Fisher teaches beginning real estate investors how to find, finance, fix, stage and sell houses. The difference between Jeanette and other real estate investors: interior design secrets. Free ebook “The Truth about Making Money Flipping Houses” at http://www.doghousetodollhousefordollars.com

How To Find An Experienced Monticello Illinois Realtor

Writen by Susan Truett

Finding a professional Monticello Realtor in Illinois is the best way to find the perfect property or home. A licensed realtor can assist you in locating the type of property you want in the price range you desire. Monticello Illinois is located in Piatt County and is in the suburban Champaign Urbana area. Monticello is a community of small neighborhoods and is within easy access of the larger metropolitan area. Citizens in the Monticello area play an active role in their community and enjoy a wonderful standard of living. Realtors in the Monticello area can show you any type of property you desire and will treat you with the utmost courtesy and professionalism.

Property and homes in Monticello and the surrounding areas are reasonably priced and values are expected to rise in the coming years. An experienced realtor can help you find the most home for your money and will help you through every step of the buying process. Monticello Illinois is a great place to purchase a home and the business and employment opportunities are plentiful thanks to the growing economy in the Champaign Urbana metropolitan area. Finding a realtor in Monticello is the best place to start when beginning a search for property. You realtor will show you all properties that meet your criteria and will help you in getting the best price possible.

If you are considering purchasing property in Monticello Illinois or the surrounding areas, contact a professional realtor today. Your realtor will help you find the most home for your money and assist you in obtaining financing if you so desire. Monticello is a community with modern convenience and small town charm. A local realtor will help you with all your real estate needs. Professionalism, courtesy, and a genuine desire to help you find the ideal property are what you will find when you contact a Monticello Illinois realtor now.

Charles & Susan Truett are the website owners of Central Illinois Realtors Online. For a comprehensive listing of Monticello Illinois Realtors, visit:

Monticello Illinois Realtors Online

Why Selling on Lease Options is Glorified Landlording

Writen by Tim Randle

I might upset some folks with this one, but that’s okay as I think it’s important to get some of my experiences into the light of day. If you fully believe the hype that you won’t have any landlording responsibilities by selling on a lease option, go ahead and stop here. Or perhaps you should read on as this article is specifically written for you.

Let’s review one of the common misconceptions that is thrown around by folks touting the wonders of selling properties on a lease option:

You won’t have any repairs or maintenance.

True, you can certainly have your documents state that the tenant/buyer (TBer) is responsible for repairs. In fact, I’ve seen numerous variations of this ranging from the TBer is responsible for all repairs to only those repairs falling within a certain price range. Some investors ask the seller to be responsible for repairs up to a certain amount and ask the TBer to be responsible for those over that amount. Insurance will theoretically cover major damages so that’s not an issue. And I know from several experiences that insurance will and does cover many repair expenses less than $10,000. So far, knock on wood, I haven’t had to test going above that amount.

So, what happens when your TBer moves in, sends you back your move in condition form and two days later the A/C, heater, or whatever goes out? You’re either ponying up some money or you have one upset TBer. Yes, I know it’s wise to have them sign off on an inspection or an inspection waiver prior to move in, and if you’re not doing that, I recommend it. However, do you think that’s going to matter if the TBer just gave you the majority of their life savings and they’re looking at a large repair bill?

Yes, you can use some of their funds to purchase a home warranty and I also frequently do that. If the expense happens to be one that is actually covered under the policy on such a short time frame and not classified as a pre existing condition, then you’re fine and the TBer can just pay the deductible. Wait a minute, didn’t you shell out a few hundred for the warranty? True, it came from the TBer’s funds, but that option consideration was supposed to be yours to keep, right?

Other recommendations on addressing the issue include asking the seller to be responsible for repairs for a certain time period and then passing that “guarantee” on to the TBer. Again, it may be one of those “sounds good in theory” type arguments. The few times I’ve gone that route I’ve not had to test it, but I wouldn’t be surprised if the seller is a bit upset if I had to call to ask for money after the fact. And what happens if your repair period from the seller is only 30 or 60 days and it takes you longer than that to find a decent TBer. Oops.

What I’ve found is that typicallly the TBer will agree, sometimes reluctantly, to cover half the expense. I present that solution in such a way that it does appear as if I’m breaking “company policy”, but since “I want them to be happy in their new home”, I’m willing to bend the rules some. It is definitely smart to push the TBer to get an inspection done prior to move in as this not only comforts them, it protects you. Make sure you get a copy of it and have the TBer sign off on it. To be clear, I only make this offer for repairs that occur in the first 30 days. After that, they’re on their own or insurance will take care of it.

Let’s not forget the TBer who doesn’t call to let you know that something needs repair. You may have done such a convincing job explaining that it was their responsibility that the TBer chooses not to call. Since they don’t have the money to fix the water leak in the upstairs tub, they just let it continue. Now, we’ve got some mold issues and much more serious repair numbers. It’s critical in my opinion that the TBer call you if they have a significant repair, even if they’re able to pick up the tab. I want to know what’s going on in my properties.

So, to summarize, I think there are some important steps to take when you sell your properties on a lease option. Take what you feel is important and incorporate it into your business if you haven’t already done so.

1. Push the TBer to get an inspection done. If they don’t have the $200 or so to do this, ensure they sign off on an inspection waiver. It’s more difficult for them to come back to you demanding their option consideration and rent back due to needed repairs if they made this choice on paper and signed it.

2. Consider using part of the TBer’s funds to purchase a home warranty. Not only does it comfort their concern of potential repairs, it increases the likelihood that needed repairs will get done. It’s cheap insurance in my opinion.

3. Set up your standard operating procedure regarding repairs. Like all issues regarding properties with which you stay involved, it’s important to promote and maintain consistent, documented procedures. In other words, don’t have different repair policies for different properties or TBers. Choose the repair responsibility method or methods you think will work best and stick with them.

4. Another item not mentioned that is also company policy is that the TBer must have and maintain renter’s insurance. Policies can be purchased for very little funds and it protects their personal property. Typically, these policies will also have a liability component that provides an initial layer of protection before they get to your policy. This way, if some accident happens, like the tub leak above, that damages their property, they won’t be coming to you first for replacement.

Selling on lease options can be a profitable technique if done wisely. Just don’t go into it believing it doesn’t take any work and that the landlording headaches are completely removed. They aren’t.

Thanks for reading.

(c) Copyright 2003, All Rights Reserved.

About The Author

Tim Randle can be contacted through his web site at www.TexasRealEstateClub.com; info@texasrealestateclub.com

Danger: Interest Rates and Housing Prices

Writen by James Christensen

While the National Association of Realtors anticipates a near record year in real estate sales for 2006, following five years of record breaking sales, rising interest rates may have an effect, but are higher rates really so bad?

Mortgage banker, author and humorist David Reed, is steamed about so called experts trying to scare people by making them think rising interest rates are going to keep them from buying homes, or put them out of the homes they’re in.

During a radio interview with a Los Angeles station, Reed was paired with another guest, a financial planner. The host of the show asked, “So, rates are at some of the highest levels we’ve seen for a couple of years what will that do to the housing market?”

“Now, me being a Texan,” drawls Reed. “I minded my manners and let the other gentleman speak first. ‘Well,’ he began. ‘It doesn’t look good at all. Rates are up nearly .5 percent since earlier this year and that means thousands of additional dollars the homebuyer will have to pay. On a typical $500,000 loan (this is California, remember) an extra .5 percent means another $160 more each month in payments. Over 30 years, that means another $57,000 over the life of the loan. Home prices are high enough without this.’”

Hmmm guess there’s reason to be worried if homes don’t increase any in value for the next 30 years, which nearly 100 years of 3 percent averages say are unlikely. Plus, the borrower has to keep the home for the life of the loan which is extremely unlikely in the day trading 21st century. And does the financial planner think interest rates are going to improve any time soon?

“What a nerd,” laughs Reed. “Yeah, rates have gone up, but gone up from what? From record lows, that’s what. Let’s not get too spoiled here. Thirty year fixed rates used to be in the high sevens and low eights way, way back in what September 2000? Give me a break! Just take any historical mortgage rate chart and you’ll see that compared to rates going all the way back to the Paleolithic period, we’re still in pretty good shape. And I think it’s irresponsible for so called “pundits” to tell people how screwed they’ll be if they buy a house right now.”

He warns, “The “housing bubble” we’ve been reading about could also be a self fulfilling prophecy if we’re not careful. An interest rate goes from 6.00 to 6.50 percent and the sky is falling? Yeah, yeah I know. “But David, that knocks a lot of people out of homeownership.” Fair enough, but buy a smaller house, I say. Instead of a $300,000 loan, get a $285,000 one. That’s the typical qualifying difference between 6.00 and 6.50 percent.”

“Well, David, much of the market now is for investment homes we can’t kill that.” Okay. But nobody’s killing anything, the market’s simply adjusting. If people want to buy investment properties they’re going to have to buy fewer or smaller ones or negotiate a better deal. Heck, any good Realtor can do that one for you.”

He says he gets steamed when an “expert” predicts disaster and encourages people not to buy something because of an interest rate move and a small one at that. Will there be fewer homes sold in 2006? Probably. But fewer than what? 2005? 2004? 2003?”

(Each of those years were record breaking years for both new and existing home sales.)

“I suggest we all kick back a little bit and understand that often when consumers read an article or listen to a radio show that just sometimes they might actually be paying attention. “Gosh honey, maybe we shouldn’t buy that home after all. That guy just said we’d lose $57,000.”

Fair debate and honest discussions are one thing. Scaring consumers is quite another, he fumes. Yet, the bubbleistas are out in force predicting that “the piper is about to be paid.”

“In the past few years, nearly a third of all mortgage loans have been in the form of adjustable rate mortgages (ARMs),” blared CNN in November 2005.

And they are about to adjust, which means those who borrowed hybrid versions of ARMs, are about to see their low fixed rate period end, and the loan will reset to an adjustable rate that can fluctuate for the term of the loan.

The Mortgage Bankers Association estimates that some $330 billion worth of ARMs will adjust in 2006 and $1 trillion worth will reset by the end of 2007. This could impact as many as three million homeowners (average ARM loan is about $300,000) who will pay larger mortgage payments for the duration of their loan’s term.

“If you took out an 3/1 ARM for $300,000 back in late 2002, your initial interest rate was probably around 5 percent and your monthly payment has been about $1,610,” supposes journalist Les Christie. The new payment, at a rate of about 7.1 percent will adjust more than two percentage points to $1,995 per month, a difference of more than $385 monthly or $4,600 annually.

“One year ARM holders, whose initial rates last year were just over 4 percent, will also see their payment increase a lot, but because of caps, they still won’t be paying as much as 3/1 ARM holders, at least until they reset again,” he explains. “Holders of 5/1 ARMs coming due later in 2006 and in early 2007, should not have to undergo increases as big. Their rates were higher to begin with, about 6.6 percent in early 2002; going to 7.1 percent would only add about $100 to their monthly payments.”

ARM holders have the option of refinancing into a fixed rate providing they have enough equity in the home and can qualify for the new rate.

“A 30 year fixed rate at 6.43 percent will still add about $260 a month to the borrower who had a 3/1 ARM. And the borrower will either have to pay about $3,000 to $5,000 in closing costs out of pocket or add that sum to the mortgage principle, sending monthly bills higher,” warns Christie.
However, the rest of the country doesn’t need to shake in their boots just yet. According to a joint study by the Housing and Urban Development and U.S. Census Bureau, nearly 40 percent of all residential properties in the U.S., both owner occupied and rental units, are owned free and clear with no mortgage.

Borrowers should watch how the Fed continues to handicap lending rates, particularly if the critical yield curve gets close to inverting or does invert. When there is an unusually small difference between short term rates and long term bond market rates, there is a risk that the yield curve will invert, which means that “interest rates on the Treasury’s two year note will go above the rates available on the benchmark 10 year issue,” wrote Dr. Irwin Kellner, Marketwatch, November, 2005, when only six basis points separated the two from the ten. “That’s the narrowest spread since early 2001, just before the U.S. economy tumbled into its 10th postwar recession.” The curve inverted Christmas week 2005.

Dr. Kellner points out that every time the yield curve inverts, the economy goes into recession. Banks simply won’t loan money when they pay more for deposits (which key off short term rates) than they can make lending these funds, he says.

This dries up liquidity and shrinks money for lending. The good news is that inflation would be kept at bay, which could keep interest rates comfortable for homebuyers for some time to come. If they can hang on to their jobs.

Written for http://www.e realestatelicense.com By James Christensen Real Estate Expert and educator. Our training site http://www.e realestatelicense.com offers a valuable service to individuals looking to get into the Real Estate industry.

7 Tips On Choosing Your Estate Agent

Writen by Susy Copus

1. Ask a number of estate agents to view your house and do not immediately take the estate agent who gives you the highest valuation. They may simply be doing this to secure your custom. If no buyers make an offer you will need to lower your price and be stuck on the market for longer.

2. Ask what exposure the estate agent has. You must have your property advertised widely on the internet and not just their own website. Ideally your property also needs to be advertised on a national property site as well.

3. Negotiate on their commission percentage. Even 0.25% discount can mount to hundreds if not thousands of pounds. Estate agents want your business and you lose nothing by haggling.

4. Are you allowed to take your own photos for the brochure? First impressions on house details matter. If you are not happy with the estate agent’s photo ask if you can take your own. This should not be a problem especially if you have a digital camera and can email them your photo.

5. Does the estate agent like your property? A good salesman needs to believe in what they are selling and their positive speak can persuade a buyer in your favour. Can they suggest ways of making your property more marketable?

6. Call the estate agent pretending to be a buyer. Are they helpful? Do they send you the details you request? Did they make a positive impression on you? If not, then be wary of using them.

7. Does the estate agent accompany viewers on visits or do you need to show people around. When viewers look at houses it is preferable that an estate agent shows them around. Viewers are then more freely to speak their mind and the estate agent is a practised salesman. Homeowners are not and can sometimes talk too much and even talk down their house.

Remember you are not selling your property to make friends with your estate agent. It is of course beneficial to have a good working relationship with your estate agent but be sure that they are working for you and that they work to earn their commission.

Susy Copus is a property commentator writing about all aspects of home moving, properties for sale, estate agent directories and house prices for the UK Property Search Engine, http://www.WheresMyProperty.com. Susy also writes for http://www.renovatealerts.com who specialise in finding houses to renovate.