All About Plano Real Estate

Buying New Collin County Homes

For folks that have been bitten by the new home bug these buyers don't want a used home when a new one is available. They want a home that has never been lived in and they don't want to move into somebody else's home with worn, dirty carpeting, someone else’s taste in kitchen appliances or look at some kid's initials drawn into once wet cement that they didn't put there. The home must be just built new, fresh and clean without so much as dust on a window ledge or a finger print on the walls. If this describes you, and you have always fantasized about buying newly constructed Collin County homes of your dreams, here are some tips that can help you to protect yourself and make the process a pleasant experience.<?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office" /><o:p></o:p>

Get a Realtor to Represent Your Interest<o:p></o:p>

· If your sales contract contains a home sale contingency to sell your existing home before buying your new home list your current home with one of the many professional Plano Realtors in your area. Buying before selling is generally not in your best interest because strong negotiating goes out the window when you've emotionally moved out of your home.<o:p></o:p>

· The builder has sales agents that are paid to represent them. Many of them use high pressure sales tactics to persuade you to sign the contract. Due to the high volume nature of selling new DFW Real Estate, many builder's agents are paid less than traditional real estate agents; some earn salary plus commission incentives, so turnover is important to their livelihood.<o:p></o:p>

· You will fare much better if you hire a buyer’s agent to represent you. Most of the time, your buyers agent will be paid by the seller. If you pay your agent directly you can probably add that fee to the sales price, and it would be worth it because a good buyer's agent can save you thousands more than the commission.<o:p></o:p>

· Your buyer’s agent will represent your interest only. He or she is required to disclose the positives as well as the negatives about the transaction. Builder's agents won't discuss drawbacks.<o:p></o:p>

Obtain Competent Legal Advice Before Buying a Brand New Home<o:p></o:p>

· Before you sign any sales contract, talk to a real estate lawyer. Standard real estate purchase agreements are designed to keep everybody out of court, but they don't necessarily contain language that protects the buyer.<o:p></o:p>

· Ask questions about removal of contingencies and your cancellation rights, if any. Make sure you understand your liabilities and commitments.<o:p></o:p>

· Check to see if building materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it's probably because it's a valid concern and other buyers have gone to court over it.<o:p></o:p>

Don't Just Automatically Go With the Builder's Lender<o:p></o:p>

· Most builders prefer to have you use their lender because the builder will be kept fully informed of the progress of your financing. But keep in mind that a builder's lender might not offer you the best loan terms and rates. Also, the builder may own the lending company.<o:p></o:p>

· Consider other sources to find a mortgage lender. Your own regional bank or credit union might offer you great rates and terms, based on your banking history with that institution. Your buyers agent may refer you to their private list of preferred lenders.<o:p></o:p>

· Shop around and interview lenders. Find a banker or mortgage broker whom you can trust and with whom you feel comfortable doing business.<o:p></o:p>

· Ask to see a copy of your credit report and credit scores. You can also order your own credit report for free before shopping for a new home.<o:p></o:p>

· Insist that your lender guarantee its good faith estimate numbers. If the lender balks or makes excuses, go elsewhere, because reputable lenders will honor that request, even though it's not required by law.<o:p></o:p>

Choose Options and Upgrades <o:p></o:p>

· Determine which upgrades and options you want. Keep in mind that for many builders, the profit margin is high in the options and upgrades. Many builders can sell a home for the construction cost because they make the bulk of their profit in the upgrades.<o:p></o:p>

· To save money, consider which upgrades you can purchase and install yourself after closing. However, realize that some upgrades such as security wiring inside the walls are easier to do before construction<o:p></o:p>

· Find out whether your lender will lend on all the options and upgrades you have chosen. If your lender will not finance 100% of your selections, you will be required to pay for it in cash.<o:p></o:p>

· Ask about cancellations and whether you will be held liable for items the builder cannot return to a vendor.<o:p></o:p>

· Some contracts give the builder the right to choose your upgrades if you do not submit your request within a certain period of time.<o:p></o:p>

Research the Builder's Reputation<o:p></o:p>

· Find out whether the builder sells their houses to investors. Many builders require all their homes to be owner occupied. Others eagerly sell as much inventory to investors as profit margins will allow. If the market suddenly dips, investors are typically the first to bail and, besides, part of the reason you are buying in a new subdivision is to be surrounded by other buyers just like you, not renters.<o:p></o:p>

· If a buyer has a bad experience with a builder, the word spreads quickly throughout a community. But you won't know if a bad rep is an isolated experience or if the builder repeatedly brings bad publicity to itself without checking and verifying the lawsuits in the public records.<o:p></o:p>

· Talk to your future neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building identical or larger homes in the area or is construction lagging and homes getting smaller in size?<o:p></o:p>

Yes - Hire a Home Inspector<o:p></o:p>

· Used or new, always, get a home inspection before you buy a home. Hire a licensed and accredited person to complete the inspection. Don’t use your dad or your buddy contractor, get a real inspector. Make sure you are there for the inspection and ask questions because a new home can contain defects. The HVAC system might be too small or the plumbing could be installed incorrectly. Construction workers, like everyone else, make mistakes. <o:p></o:p>

· If the inspector calls for further inspections by other professionals or contractors, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue.<o:p></o:p>

9 Myths About DFW Real Estate Agents

So you think you have found everything you need to know about how DFW real estate agents work from ton of misinformed and well meaning Web sites? Here's what you need to know about DFW Realtors.<?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office" /><o:p></o:p>

1) The Higher the Price of a House, The More the Agent Makes<o:p></o:p>

Not True. Have you ever heard someone say "Every dollar more you pay for that house makes the Realtor more money, so don't trust a Realtor." That is a misnomer. The difference between $400,000 and $420,000 for Denton County real estate is about $300 to a Realtor. Do you really think the Realtor pays attention to the commission difference of a $20,000 price spread?<o:p></o:p>

2) Real Estate Agents are Always Late for Their Appointments<o:p></o:p>

Not True. There is no excuse for habitual tardiness among any professional. It doesn’t matter if it's your doctor, your plumber or your Realtor. Everyone deserves respect, and respect is earned by providing professional service and being on time. If your Realtor has a self deluded impression of his self’s own importance, find another one. Professional Realtors who list Tarrant County Real Estate are on time for their appointments. Clients who listen to their agents' excuses allow their tardiness to take place. The best Realtors are always prompt for their appointments. Don't let a few bad agents give the entire industry a perception it doesn't deserve.<o:p></o:p>

3) The Less Commission You Pay to Sell, The More Money You Will Make<o:p></o:p>

Not True. Every Discount Real Estate Brokers like to propel this myth. They will claim to save homes seller’s money by charging less commission. The reality is that Realtors who are top producers and succeed in the Fort Worth Real Estate business do not discount their services. Why? Because they don't need too. Less than full service brokers cannot afford all the bells and whistles paid for by full service brokers which many times tend to bring higher offers. It comes down to, you get what you agree to pay for. A 2.5% reduction in commission doesn't amount to much when your price is discounted 5% or more because your agent couldn't afford full market exposure to sell your house.<o:p></o:p>

4) Realtors Must Show You Homes On Demand<o:p></o:p>

Not True. Unless you have a signed buyer representation agreement with an agent or that agent represents the seller 100%. That agent you call doesn't have to show you any homes. You can't call a local real estate office and demand service or demand to be shown houses. Like you, agents don't work for free. If you aren't planning to write an offer with the Realtor you call, be upfront and don't waste the Realtors time. Don't expect the Realtor, who is not likely to earn anything, to be excited about jumping in the car with you. That agent is not obligated to show you any houses. Nor is the listing agent obligated to show you a listing if you are represented by another Realtor without a request from the other Realtor.<o:p></o:p>

5) Realtors Receive Kickbacks from Lenders / Title Companies / Etc.<o:p></o:p>

Not True. Since way back in 1974, Realtors have been prohibited from receiving any type of kickback or favor from real estate vendors. It's against the law. It is also against the Real Estate Settlement Procedures Act (RESPA). Some Realtors are slower than others to realize how the law affects them, but most have heard of RESPA and would not jeopardize their license, regardless of the temptation.<o:p></o:p>

6) A Realtors Home Inspector Will Favor the Realtor <o:p></o:p>

Any smart Realtor wants full disclosure. This is because they want what is best for their client but also because they do not want to be sued. Realtors must disclose all material facts. A buyer is always, without fail, better off knowing the truth about a house. Good Realtors want their buyers to receive full disclosure and are willing to fight for repairs on their buyer's behalf or help them cancel the transaction.<o:p></o:p>

7) Realtors Make Too Much Money <o:p></o:p>

Not True. A typical Realtors annual average income is less than $36,000 a year. You will find that about half the Realtors in any brokerage firm close less than four transactions a year. Also, office fees need to be paid, MLS fees and lockbox fees are deducted, overhead and expenses for the Realtor are deducted, errors and omissions insurance and office supplies are paid.<o:p></o:p>

8) Realtors Should Tell You About Crime, Schools & Ethnic Make-up of Neighborhoods<o:p></o:p>

Not True. Fair housing laws prevent Realtors from discriminating against several protected classes, which automatically prohibit them from disclosing anything that remotely relates to protected classes. It may come as a shock to potential home buyers that agents cannot disclose crime rates, school stats or ethnic mixes of neighborhoods. If that kind of information is important to you, an agent can tell you where to find it but cannot provide it. <o:p></o:p>

9) Realtors Will Say Anything to Make the Sale<o:p></o:p>

Not True. There are occasions that some Realtors will lie to you, it is not fair to paint all Realtors with such a broad paint brush. Top producing Realtors, who enjoy a solid reputation in the community and practice real estate with high ethical standards, are very careful to uphold a client's trust. Making misrepresentations or false statements is against the law and the ethical code set by the Board of Realtors. Any Realtor who breaks fiduciary relationship or fail to disclose material facts to their clients are subject to legal prosecution and a loss of their real estate license.<o:p></o:p>

How to Use First Right of Refusal on Contingent Offers on Plano Real Estate

<?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office" /><o:p> </o:p>

If you are going to make an offer to buy Plano Real Estate when your current home is not yet sold is a challenge for many of today’s home buyers. Regardless of whether it's a seller’s market or a buyer’s market most sellers aren't eager to accept an offer that has a home sale contingency of the buyer's current home, either.<o:p></o:p>

Types of Home Sale Contingent Offers<o:p></o:p>

Although there are many types of a contingent offers, most adhere to one of two types of formats:<o:p></o:p>

1. Seller take take their property off the market and wait for the buyer to sell their existing property.<o:p></o:p>

2. Seller to keep the property on the market but can accept a non-contingent offer, providing the first buyers with a 72 hour kick out clause to perform in the event seller receives a better non-contingent offer.<o:p></o:p>

Most sellers of DFW homes and Denton County Real Estate will choose option one. The reason a seller may accept option two is if there are not likely to be any other buyers making an offer on the property. Many sellers will not wait very long and will stipulate a date for the transaction to close. If the buyer's property has not sold by this date, the transaction can be canceled.<o:p></o:p>

What is a 72 Hour Kick Out Clause?<o:p></o:p>

A 72 hour kick out clause will state that if another non-contingent offer comes in the first buyer will be notified of such and they will have 72 hours to make their offer non-contingent or the second non-contingent will move into first place and the first buyer will be “kicked out”. If the buyer does not remove the home sale contingency, the seller has the right to cancel the contract and refund the earnest money to the buyer.<o:p></o:p>

Removing Sale Contingency Under First Right of Refusal Options<o:p></o:p>

· Take a home equity loan. Most lenders will not approve a home equity loan once your home is on the market, and a seller is not likely to accept a contingent offer unless your home is on the market and at a salable price. <o:p></o:p>

· Get a bridge loan. It is best to get approved for a bridge loan before receiving a 72 hour notice to perform. This way you won't have to scramble trying to line up financing over an impossible 72 hour period. Bridge loans are an expensive option because you may pay high loan fees.<o:p></o:p>

· Get a higher loan-to-value loan. If you were planning on putting down 20% to buy your new home, put down less, maybe 10% and get a higher loan amount. Then, when your home does sell you can use the proceeds to pay down the mortgage. Note that many higher loan-to-value ratios carry higher interest rates and fees.<o:p></o:p>

· Borrow the down payment from a friend or relative. Some home buyers can access the bank of Mom and Pop. Keep in mind it is not generally wise to do business with family and friends.<o:p></o:p>

· Remove your sale contingency. Really? If you are confident your home will eventually sell, and you can stand the pressure and stress some buyers choose this option. <o:p></o:p>

Risk for Removing Sale Contingency <o:p></o:p>

While considering removing your home sale contingency, review your sales contract with a lawyer and obtain legal advice to determine your rights under the contract. In some States a sales contract, for example, clearly state your earnest money at risk if you default on the contract. If you can live with losing the amount your earnest money by taking a gamble that your property will sell, it may be worth it to you.<o:p></o:p>

Proof of Funds to Close <o:p></o:p>

When a home sale contingency is removed the astute seller will ask for evidence of funds to close. This helps prevent some buyers from arbitrarily removing their contingency without the ability to close. <o:p></o:p>

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Is It Safe to Use a Lockbox When Selling Plano Real Estate?

When listing DFW real estate for sale, home sellers eagerly hand over their house keys to their DFW Realtor. Then your Realtor puts your door keys in a lockbox so that your home can be shown to potential buyers. Lockboxes that hold house keys and attach to a door handle, gas meter or gate, much like a bicycle lock.<?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office" /><o:p></o:p>

A Bit About Lockboxes <o:p></o:p>

Most agents in the DFW real estate market area, including the Ft Worth real estate and Highland Park real estate markets use electronic, blue Supra box (called an iBox), manufactured by General Electric. These lockboxes operate on an infraRed system. The iBox release mechanism is triggered by pointing an electronic display key or, in some cases, a synchronized cell phone, at the sensor which are only available to licensed real estate agents. These sensors record the user's information and releases the bottom of the lockbox, which contains the keys. Houses with a lockbox get more showings because they are easy to access.<o:p></o:p>

How Much Do These Supra Lockboxes Cost?<o:p></o:p>

Local Realtor associations charge varying fees for lockboxes, but they range around $100 each. That does not include the rental for a display key or right to use an eKey. Full service DFW real estate and Plano real estate agents will provide a lockbox for sellers free of charge. Agents who discount services often charge sellers for using a lockbox.<o:p></o:p>

Is it Safe to Use One of These Lockboxes? <o:p></o:p>

· Outdoor Placement: Some Realtors think it is better to put a lockbox on the side of the house, maybe on a gas meter, or on the back-door handle or on the garage door or a gate. The reasoning is that most people won’t see it. If you have a real estate for sale sign in your yard, however, even dumb crooks will figure out that there is probably a lockbox on the side of the house or in the back of the house.<o:p></o:p>

· Restricted Hours: Keep in mind that many lockboxes only operate during certain hours. For example, lockboxes do not open after 9pm or before 8am. This lessens the chance that an unscrupulous agent will just walk in on an unexpecting family or host a party in an empty house at night time. There is almost no reason for someone to have to gain access to a property outside of regular hours.<o:p></o:p>

· Periodic Placement: Some sellers feel more secure if the lockbox is not attached to their house. These sellers put the lockbox in an agreed upon spot after leaving the house or upon a scheduled showing appointment time. <o:p></o:p>

Many sellers feel more comfortable with the lockbox in plain sight and on the front door. A good reason to hang a lockbox in another location other than the front door is if the lockbox interferes with opening and closing the door. If a crook wants to break into your house, they don’t want to call attention to themselves at the front door. Use common sense and make sure the location of the lockbox is easily accessible by a Realtor. Do your best to not make female agents walk through grass in high heels or have agents duck under low hanging trees or fight through a mess of overgrown bushes or rose thorns to find the lockbox. <o:p></o:p>

How to Use First Right of Refusal on Contingent Offers on Plano Real Estate

Types of Home Sale Contingent Offers<o:p></o:p>

Although there are many types of a contingent offers, most adhere to one of two types of formats:<o:p></o:p>

1. Seller take take their property off the market and wait for the buyer to sell their existing property.<o:p></o:p>

What is a 72 Hour Kick Out Clause?<o:p></o:p>

Removing Sale Contingency Under First Right of Refusal Options<o:p></o:p>

· Borrow the down payment from a friend or relative. Some home buyers can access the bank of Mom and Pop. Keep in mind it is not generally wise to do business with family and friends.<o:p></o:p>

· Remove your sale contingency. Really? If you are confident your home will eventually sell, and you can stand the pressure and stress some buyers choose this option. <o:p></o:p>

Risk for Removing Sale Contingency<o:p></o:p>

Proof of Funds to Close<o:p></o:p>

Buying New Collin County Homes

Get a Realtor to Represent Your Interest<o:p></o:p>

· The builder has sales agents that are paid to represent them. Many of them use high pressure sales tactics to persuade you to sign the contract. Due to the high volume nature of selling new DFW homes, many builder's agents are paid less than traditional real estate agents; some earn salary plus commission incentives, so turnover is important to their livelihood.<o:p></o:p>

Obtain Competent Legal Advice Before Buying a Brand New Home<o:p></o:p>

· Ask questions about removal of contingencies and your cancellation rights, if any. Make sure you understand your liabilities and commitments.<o:p></o:p>

Don't Just Automatically Go With the Builder's Lender<o:p></o:p>

· Shop around and interview lenders. Find a banker or mortgage broker whom you can trust and with whom you feel comfortable doing business.<o:p></o:p>

· Ask to see a copy of your credit report and credit scores. You can also order your own credit report for free before shopping for a new home.<o:p></o:p>

Choose Options and Upgrades<o:p></o:p>

· Ask about cancellations and whether you will be held liable for items the builder cannot return to a vendor.<o:p></o:p>

· Some contracts give the builder the right to choose your upgrades if you do not submit your request within a certain period of time.<o:p></o:p>

Research the Builder's Reputation<o:p></o:p>

Yes - Hire a Home Inspector<o:p></o:p>