Should I Redecorate my Frisco TX Home Before Putting It on the Market?

What is the answer to one of the most frequently asked questions by home sellers?

Yes, you should redecorate your Frisco TX home for sale. Before you react or get upset, here’s the reason why I am suggesting you redecorate.



I know you are proud of your Frisco home. It is one of your best financial assets and you have worked hard to make it comfortable and dreamy. You have created a lot of memories in that home.


When the time has come for you to sell your Frisco TX home, you might be apprehensive about what potential buyers may say when they come and visit your home. To make your home sell-worthy, you need to redecorate.


You must remember that potential home buyers have different tastes and preferences. No matter how artistic, exotic or unique your home decor may be, it must be toned down to make it more appealing to the potential buyer’s taste.


It must be done if you want to sell your home successfully.

How important is Redecorating?

Redecorating or staging is a must for any home for sale. It ensures that your home is sold successfully and potentially can add value to your home.


This process involves highlighting your home’s strengths and downplaying its weakness. It gives potential home buyers a chance to visualize what the house will look like once it’s theirs.


Consider staging similar to product packaging. You are packaging your Frisco TX home for sale so that it can be more attractive to buyers.


Staging does not need to be expensive. There are many budget-friendly things you can do to stage your home. The best thing is, staging your home properly yields higher return.

What are some basic staging techniques you can apply to your home?

Before your home goes on the market, here are some staging techniques you can do.

1. Deep clean and declutter. Do more than the regular home cleaning you are used to. Even the cleanest home has something to clean or get rid of.


This means getting rid of or putting into storage any knick-knacks or books that have been accumulating in the corner. Take out the excessive display of your children’s accomplishments that hang on all the walls of the living room. Remove 90% of your personal stuff in the home.


You want the home to look clean and tidy and with plenty of space, and decluttering accomplishes that. If your carpet has not been cleaned for a year, now is the perfect time to have it deep cleaned. If you don’t have time, consider getting a professional cleaning job.


2. A fresh coat of paint.  Paint is a miracle worker. It can make dirty walls look new. It gives new life to anything it touches.


A fresh can of paint can make the home look better, brighter and newer. Also, go neutral with the paint. If you wish to make it more lively, add a pop of color and use it as an accent.


3. Repair and maintain. Do not ignore the seemingly small repair issues.


Replace the leaking faucet and cracked tile in the kitchen. Change the bathroom’s broken door knob. Fix the rundown portion of the fence.


A good thing to do to know what to fix and improve is to walk from the street and look at your home with a buyer’s eye. Check out the roof, sidings, windows and walls.


4. Improve your home’s lighting. Buyers love homes that are bright, open and well-lighted.


Replace any busted light fixtures and upgrade to contemporary styled ones. Take out the dark, heavy draperies hanging on the windows to let in natural light. Not only does this trick brighten the home, it also makes the space look bigger.


5. Spruce up your home’s curb appeal. Mow the lawn, prune the shrubs and trees and plant some colorful flowers in the garden. Make sure that your walkway is clean and well-kept.



These staging techniques are inexpensive, simple and can add value to your Frisco TX home for sale. Visit our website www.316RealEstate.com for more helpful tips and techniques on home staging.


Call us, Loreena Yeo and Mike Yeo at (214) 783-2210 and let us help make your real estate journey easier.

In case you can not view this video here, please click the link below to view Should I Redecorate my Frisco TX Home Before Putting It on the Market? on my YouTube channel: https://www.youtube.com/watch?v=YQaux6j4hzs&feature=youtu.be

Buyers, Buyers Everywhere in Frisco TX Real Estate

If you are actively participating in the Frisco TX real estate market - whether if you are taking positions as Buyers or Sellers, I have some exciting news for you.

Last year around this time (June 2007), the Buyers are out there looking at properties. However, the truth is that they are cautiously looking. Many are holding off on actually writing contracts and negotiating while this year (June 2008), buyers are out there actually BUYING!!!

Why is this?

Many inventories in the 4th Quarter of 2007 moved - and at amazingly attractive prices. For illustrative purposes, over 4,000 square foot homes sold for around $200,000. Many of these are foreclosed homes owned and sold by banks after they took possession. These homes took over 6 months to sell because the banks were pricing them around $250,000 6 months prior to selling. Thus, these have motivated buyers to actually placed the offers and successfully purchasing them.

Foreclosure homes continue to sell in the Frisco TX real estate market. However, not all foreclosure deals are good deals. Many foreclosed homes are dirty and nasty with animal and children stains. Some properties have been vandalized - often by the angry homeowners themselves who damage the properties right before they leave. Some removed the appliances while others break walls and windows. If you can see past that, then perhaps may be bought at attractive prices.

ALL buyers asked and discussed foreclosures with me as their realtor. Everyone has intentions to purchase foreclosures. However, a foreclosed home who may seem attractive on paper may not be as attractive to you as a buyer. My advice to a buyer is that you find a house that fits your needs and at a good price, it does not have to mean only limiting yourself to a foreclosure.
If you are a seller in the Frisco, TX real estate market, there is hope for you. Price your property well and staged it exceptionally, then let the Buyer's agents do their job. Houses do sell even in a Buyer's market.

Buyers and Sellers Rethink their Suburbia Strategy

The gas prices has gone up very significantly over the past year (now around $4.00 per gallon here in North Texas) and consumers are also a severe hit on grocery costs. The rising costs of living are definitely making consumers change their lifestyles and change their ways of running errands. Let's not even discuss vacation and other non-important luxuries in this picture.

Here in Texas, we stand proud with our gas guzzles. In the past, it is rather more common to see the Ford and Chevy trucks, the Ford Expeditions and other giant SUVs and large cars instead of the tiny Chevy Aveos, Toyota Yaris(es) and Ford Focuses. But our highway landscape has changed in the past year due to the rise of energy costs.

It is very common for residents in the Dallas-Fort Worth metroplex to drive over 30 minutes to get from one place to another. Many homeowners choose to live in one city and drive over many more only to work in the city at the other end of the metroplex. It takes over 1 hour to commute each way and many have chosen to do that. I have many friends and clients that drive from Frisco to their places of work in Irving, Hurst and Fort Worth.

However, buyers (and sellers) are rethinking their suburbia strategy these days. They are choosing to find houses closer to work to save on gas. In the past, buyers choose a house because of the features it offers, but today, location, location and location becomes a very hot topic. Gas and grocery prices will probably hover around the $4-5 per gallon price range for a while and there's not much possibility for it going back down to the levels we are used to.

First Outlook on Frisco TX real estate Spring 2008 market

Based on my constant research and monitoring of the Frisco, Texas real estate market, this is what I am noticing: The starting list prices of properties are hedging higher than they were a couple years ago. The good thing is that well-priced properties and especially updated properties are moving.

These days, more buyers are looking for great houses ie already updated with today's features than those who are looking for fixer-uppers. My guess is that with the lifestyles buyers are living these days - outdoor activities and pursuing hobbies, there are not much time left in the day for major remodeling. Plus, it costs alot more to put in hardwood floors, granite countertops and stainless appliances than to find houses that already have these highly-sought features.

The Frisco, TX real estate market has definitely improved now (April, May 2008) when compared to six months ago. The foreclosed properties now owned by banks are priced attractively and buyers are moving them FAST!


If you would like a more detailed analysis about specific areas of the Frisco TX real estate and/or surrounding cities, please contact me.

Loreena Yeo
Realtor(R)/Broker
loreena@loreenayeo.com
www.316teamREALTY.com

Great value home nestled in small Frisco community

Asking Price: $206,000
MLS: 10985801
Sq. Feet: 2,289
Lot Size: 64 x 110
Bedrooms: 4
Bathrooms: 2.5
# of Floors: 2
HOA/Maintenance Fees: $24/month
Garage Size: 2 (Side entry-front)
Subdivision: Village of Lake Brook Farms
Year Built: 2000

Two-story traditional home offers 4-bedrooms, 2 ½ baths and 2-car “J-Hook” swing side entry garage. Two-story foyer welcomes you as you enter this home. Light colored walls and art niches. Kitchen and breakfast nook opens into family room. Large windows lets light into house throughout. Downstairs master bedroom suite with seating area. Overlooks backyard oasis. Koi pond and hot tub anchor the patio. Great for entertaining. More grassy area to the side of property. Matured trees and landscaping in backyard. Also a 2nd living area/ gameroom upstairs which opens to downstairs entry. Lots of storage throughout the house. 3 bedrooms upstairs with one serving as an office currently. Great schools including Blue Ribbon Curtsinger Elementary. Low HOA Dues.

For more information, please visit:http://www.4705poppyhills.com/

Will You Concur or Protest Your 2008 Tax Appraisals?

As of May 2 2008, the Collin County Tax Appraisal District office will mail out the 2008 Estimated Tax Assessment notices. With the competitive markets that we are experiencing, I am not surprised that the tax protests might be busier than previous years.
Get with your realtor for some SOLD comps of your neighborhood. If your estimated tax assessments are higher, do make a trip out there to have it lowered. Your dateline is May 30th 2008.
If you had purchased your property in 2007 or 2008, you can furnish the tax appraiser with your HUD settlement statement if the amount you paid if lower than what the County assessed it at. Otherwise, do have comps and photos of the properties you are making the comparison with.

Thinking about Selling?
If you have the slightest possibility of selling, leave the values as they are even if your realtor tells you that you are "worth" less. For whatever reason, Buyers who stumble upon the website do feel that this number is "real".

Value Your Time:
Depending on how far off your comps and your assessment values come in at, do consider having to take time off from work to protest your assessment. If the values are off by a few thousand, then you are only potentially saving very little money. Evaluate if your time is worth your effort.

A Year in Review 2007 - Frisco TX real estate market

Frisco sold 3082 single-family homes in 2007. The statistics below do not include townhomes, duplexes and condominium units.

The average home consists of 4 bedrooms, 3 bathrooms and just over 3,000 square feet. The list price is at $304,000 with the selling price of $293,000 (96.5%) at 76 days on the market.

The median home consists of 4 bedrooms, 3 bathrooms and around 2,800 square feet. The list price is at $245,000 with the selling price of $238,500 (97.4%) at 55 days on the market.

The cheapest home in Frisco (2 bedrooms, 1 bathroom, 872 square feet) sold for $49,000 at 1 day on the market while

The most expensive home in Frisco (7 bedrooms, 8 bathrooms, over 8,000 square feet) sold for almost $2.1 million dollars at its full asking price in 763 days on the market.

Current Absorption Rate (based on February 2008 statistics) = 50.9 weeks.

What Does This Mean To You if you were a seller?

With the real estate market going at its present rate, it will take about 1 year to clear all the inventory on the market. If you have special circumstances to sell ie facing foreclosure soon, lose your job, relocating out of town, pricing and marketing your property becomes even more crucial in your success. Whatever your reason to sell is, I do believe that there must be a special marketing plan specifically designed for each property. Thus, working with an agent who possess that skill becomes more vital in today's challenging market.

What Does This Mean To You if you were a buyer?

No doubt that this is a Buyer's market. However, real estate is very local. But that I mean that one neighborhood may vary from another. One price range may sell "hotter" than another. So, are you looking in the right places? In order to find the good deal you are seeking, a good real estate agent may be able to assist you. Remember that it is not only the price that you would negotiate, there are lots of factors that can contribute to a winning successful contract.

Definitions:

Average is the sum of all numbers and divide the total number of houses.

Median is a type of average, found by arranging all the numbers from lowest to highest and selecting its middle number.

Absorption Rate is the rate in which it takes the homes to sell at its present rate.

Are You Ready For The Perfect Storm In The Real Estate Market?

Definition of a perfect storm according to Wikipedia is: The simultaneous occurrence of events which taken individually, would be far less powerful than the result of their chanced combination. I cannot help but to relate this to the
current state of the real estate industry.

How is a time such as this refer to as the PERFECT STORM in REAL
ESTATE?

• Interest rates are at its historical 40-year low and remain there.


• Foreclosures are at a 52-year high.
  
• There are lots of inventory out there. Sellers are more susceptible in accepting offers.
  
• Investors do not trust the stock market and actively seek a safe place to put money.
  
• The mortgage industry is cleaning up their act.
  

It is a good time to be looking for houses. I call it the "Perfect Storm" because
the unusual chains of events have come together to create an optimistic economic climate for buyers that I have never seen before.

I get this question asked very often:

I want to buy but I'm not sure if the market is at its bottom yet?

My answer is this:

"I do not have a crystal ball and I cannot predict what tomorrow or 6 months
will be like in the real estate market, but I do know this. If you are financially and emotionally ready to purchase a home or move-up in house, or down-size in home, the Perfect Storm is happening. If you feel that you need to protect your "investment", then let's offer a price that you feel comfortable with - within reasons and see what the Seller plan to take it from there."

And if you have read the above statement in the heart of its content, you will not that the stress is placed on your buying decision for your family when you are financially and emotionally ready.

The PERFECT STORM is happening. But it is only PERFECT with my statement above: when financially and emotionally ready.

Take The 2008 Home Value Challenge

And find out how 3:16 team REALTY's specials available only online can equal savings in your pocket!

Is the market wearing you down? But you would still like to move up, down size or move on? As a 3:16 team REALTY client, you are eligible for some specials customized just for your situation. Call 214-783-2210 to find out more about our program.

What Does This Mean To You?

All this could very mean that despite this "down" market as projected by the news media, you could still possibly move on in your life without putting your real estate plans on hold. Remember that real estate is local, but that it means that it is not just city or county specific, but it could depend as specific as your neighborhood. Believe it or not, some neighborhoods and small areas in the metroplex are appreciating in values! To find out how your neighborhood fares, contact us today.

Now Factor In the 3:16 Specials

By mentioning this challenge, you are eligible for a further discount when you sign up to list with 3:16 team REALTY when you are ready.

Here's how it works: When you call, we will schedule a time for an in-depth consultation to assess your specific situation. We will devise a plan specific for your situation. We believe each client has his/ her own specific needs, hence it is only fair that a plan to works in your situation best benefit you. Based on our two-way discussion, there may be threee outcomes. STEP One: You will not put your home for sale in the market. STEP Two: You might hold off your plans until further notice. STEP Three: You will list your home with 3:16 team REALTY while enjoying this home selling process. Let our company handle this transaction/ process for you. We understand the stress homeowners feel.

Did You Know That Real Estate is Local?

Find out how your home stake up in your neighborhood by calling 214-783-2210 or schedule an appointment for an in-depth consultation today.

With 3:16 team REALTY's online specials, you could see additional equity savings even in this market!

Call 214-783-2210 now for more information about your online special or click here to schedule your no-pressure, no-obligation home market evaluation.

Make your move.

If selling is the right decision for you (now or later), find out today. You would not know until you take the first step of finding out if it is for you. By contacting us today, you are allowing yourself that oppurtunity but most of all, giving us the opportunity to serve you and by that, we take it very seriously.

And we mean it.

Get alerted when the home of your dreams come on the market

Sign up for
Property Watch
right to your inbox
without you having to search for them

A robust real estate web application has been developed for you to ensure that your real estate home buying experience is a pleasant and exciting one. When you sign up for the Property Watch on this website, this process saves you time. As soon as new properties come on the market and it fits your search criteria, you will be alerted via email. You can change the criterias during your home search. No pressure and no obligation.

Benefits include:

• Automated Property Watch for those that match your criteria


• Saves time


• Custom Profile, userID and password


• Change criterias at any time


• Saves searches and properties


• Compare properties feature


• Request viewings at your convenience
  
  

Get started today!

Note: If you have a real estate agent representing you in your home search and have signed an Exclusive Buyer's Agency, please do not use this system. It would be a violation of the National Association of Realtors(R) Code of Ethics to assist you under these circumstances.

How Is The Market Doing - really ???

A close friend asked me the Million Dollar question earlier this morning,

"How Is The Market Doing? Really?" With a spark in his eye, he added, "I know the news is talking about how bad the market is doing, but how is it, really?"

I smiled and answered,

"Really.... if you really wanted to know, this is what I will tell you ......

There's really two kinds of houses here in Frisco, or the Dallas metroplex for that matter. There are those who sell within 30-60days and then, there are those who will be in it for the long haul."

How Does This Relate To You If You Are Buying?
A great home priced correctly moves FAST. It also does not mean that you would have alot of negotiation power if it just came on the market a few days (this is merely a generalization statement. Each listing/ seller has its own reason to sell). Making a low-ball offer may not get you the house and perhaps other buyers would recognize the same potential and could offer the Seller a reasonable offer.

How Does This Relate To You If You Were Selling?
It really depends on which category you want to be in. There are some steps you need to take in order to ensure you are on the first category (not the latter):

1. Work with an agent who knows what he/she is doing - as far as pricing and marketing the home.

2. Per an experienced agent's recommendation, follow the advice he/she gives you in order to sell the home.

3. Trust the person you hire. (If you dont, it is difficult to build a successful relationship that will get you where you want to be: move on to your next plan).

More importantly, this is a question you need to ask yourself:

Do you really want to move? Or are you just testing the market to see what it would take?
-----------------------------------------------------------------------
For no fluff real estate market advice, please contact Loreena Yeo - broker/ principal of 3:16 team REALTY. Proudly serving Frisco, Plano, Dallas, Richardson, Allen, McKinney, Celina, Prosper, Little Elm real estate markets.

Time Value of Money in closing costs

You can now actually apply the principle you have learnt in the Finance class 101. Here it the gist of what Time Value of Money means to a buyer in a real estate transaction.

In a real estate transaction, everything is NEGOTIABLE. We do not just negotiate on the price but the terms such as closing date, closing costs, option fee, earnest money and who pays for what in the transaction.

Let's understand this Time Value of Money concept in terms of the closing costs.
As a buyer, you can negotiate the closing costs ie Seller having to contribute to your closing cost in a real estate transaction instead of taking that amount (say $500 for example) towards the price reduction.

Why is that?

The answer is the Time Value of Money recognized today is not the same as if it was taken over a long period (30 years, in terms of a mortgage note for example). The $500 seller contribution towards closing cost will net what you need to bring ($500 less) to the closing table. If you have asked for a price reduction, $500 you are paying $2 less a month in your monthly payment. A rather small amount that will not make or break your monthly household budget.

Also, $500 is worth $500 today rather than the $500 spreaded over the life of the loan.
So, when you negotiate a real estate contract, do consider asking for some closing costs even after the price has been agreed upon. It probably be worth more today than many years from now.

Advocate for a 100% loan?

Are you an advocate for a 100% loan to purchase a home?

I'm sorry, not me. I've done that and I would never do it again. Back in the days when I was hyped out about using other people's money (OPM), I felt that having my money in my own pocket is much better than in yours. So, we got a 100% loan while we just have the money sitting in the bank. Looking back, that was not a very good idea simply because we ended up using the money to furnish number of things in the house and these are things we can live without. Looking at the interest that we make on the entire life of the note simply makes my head spin. So, eventually, we paid the 2nd loan off after servicing several thousand dollars in interest. How wasteful!

While some smart financial advisor may advise us to "invest" the money, since I'm only paying a 6% interest and when I make a 12% gain in the stock market, I would still gain 6%. After taxes, maybe a 3.5 - 4% profit. Not bad. But this whole equation sits on a "what-if" scenerio that I would pick the right stocks to purchase. I'm never that lucky so, thinking back, starting off in the right foot probably will get me started in paying off my home sooner (several thousand dollars at least).

So in my case, I had the money but just did not choose to use it wisely in the first place.
However, the truth out there is that there are many more who has not much savings to speak off, should they be purchasing?

In the past, my answer would be a strong NO. Today, my answer would be a MAYBE. Why? Find out more soon.

How Losing Weight Is So Similar To Saving For A Down Payment

As I was exercising this morning, I remembered how hard it was to remain motivated. It's so easy to just step off the treadmill and say, I've had enough for the day. Then I told myself, every step I take will get me closer to my goal of looking slim again. Ahhhhh........

Little did I realize (as I talk to myself, and dream a little, it helps to get my mind off the monotonous walk on the treadmill) trying to lose weight is very similar to save money for a home.

• Have a vision: My goal is to loose 28 lbs. I have lost 2 lbs in the first week. Saving for a downpayment must also begin with a vision and a focus. The vision must be quantitative. X amount of dollar. If you know that you are purchasing a $200,000 home, 20% would make it $40,000. Having a vision gives you a starting point.

• Have a plan of action: My plan of action during my weight-loss challenge is to exercise an hour a day, 5 days a week, to eat smaller portions of everything and to stay of sweets and carbs (only allow myself 1 carb meal per week). So, with the home savings program, have a plan of action: create a budget, live within the budget, eat at home instead of out, think twice before purchasing and never purchase on impulse. Do not deviate from the plan.

• Lifestyle change: Like loosing weight and resisting delicious food temptations, saving for a home also requires a lifestyle change. It requires a complete change of mindset in order to success. It takes long-term lifestyle change to get rewarding results.

• No quick-fix: There are no quick-fixes and easy solutions to anything worth achieving. Namely, weight-loss or savings for a home. Changing your mindset requires time, commitment and patience.

• Determination and will power: It's not easy getting up extra early just to get on the treadmill while I could definitely use an extra hour of sleep. However, with a vision, and knowing that I must have determination and will power, I need and must complete the task I lay out for myself. Savings is also a daunting task. Put it in bite sizes and see it mounting from a small hill to something pretty significant. It is a skill and discipline that will take you to your goal.
  

Thus, losing weight is just very much like saving for a home. It requires alot of sacrifices and saying No to many temptations. If you can loose weight (very challenging for me), you can save for a home.

Furnish Your Home With Great Treasure Finds

So, you are moved into your new home with your boxes all over the house. As you unpack, you find that you need a sofa table here, a mirror there and a larger piece of entertainment unit would fit that space just a little better. If you are like me (against swiping that credit card and having to pay for the $50 buffet lamp for the next few years in credit card balance), you would find alternative and creative solutions to furnish your new home.
Look into:

• Garage/ Estate Sales:
  I am a garage-sale junkie. I find alot of joy and excitement in turning someone else's trash into my treasure. If I ever invited you into my home, pick any one item in the house and chances are it's another great garage-sale find. I haul it back home, perfectly fit it into the corner, and (wa-la), you would never know I paid $500 for a $3000 French Antique 8-feet tall entertainment center - now proudly sitting in my family room. How about $3 for a Victorian Stained Glass lamp that easily cost the original buyer at least $80? I paid $900 for a set of (now get ready for this) solid rustic Old-World dining table that sits 8 and a buffet table that the owner had only used twice. She would have spent easily over $2000. Granted, I feel I had paid a little more for this set, but then again, once it sits in my dining area and had my friends over, no one could tell it was used. The great story was to tell them I paid only half of what it would cost. I am picky in choosing my pieces so sometimes I may have to pay a little more for the specific things I am looking for. Also, patience in virtue in this case. I waited over a year for this rustic dining table. I vowed I would not drive to the store to haul it back in my car!
  Searching and spotting for garage sale signs is a skill in itself. I have been doing this for the past 10 years and I am so good at driving, making U-turns and spotting for these signs. They are the signs of your treasures!

• Freecycle:
  If you have not heard about this network, today is your lucky day. Freecycle is a network of people who joins to recycle what they do not want and in return, get to exchange it with something they want. The best part is that it's FREE. Now, how cool is that. The purpose of this group is to keep good items out of landfills. If it's a chair that you want, ask for it. If it's a radiator of a car that you need, get on the network. To participate, find the area where you are located.

• Craigslist:
  Most people are familiar with the Craigslist network. You can purchase so many things on there. It's a great place to sell your items too. Note: Garage-sale finds are typically cheaper than Craigslists. However, it still beats having to pay full price in the retail store when compared to Craigslists.

• Clearance Racks at Retail Stores:
  If you saw me at a retail store, chances are you would find me at the clearance racks...... Learn to shop at the ends of racks instead of picking your items from the regular shelves. These are tremendous markdowns and it will save you alot of money furnishing your new home.

• Habitat Humanity Resale Stores:
  Most cities have their own Habitat Humanity Restores. If you considering remodeling your home, you will find the items at this store at a fraction of what you would pay at a regular home improvement store. The items sold by the Restores are typically donated by building supply stores, contractors and demolition crews. The proceeds from the sale help fund the construction of Habitat houses throughout your communities. If you have not visit this gem, you'd be in awe by what you find (here in the Plano, Texas store at least!).

The most important thing is not to spend it on credit. Now, they dont call me El-Chepo for no reason!

The Freecycle and Habitat for Humanity logos belong to their respective owners.

Setting Showing Limitations: Setting Up For Failure

As a kind word of advice for Sellers in this Buyer's real estate market:

For buyers to view your home (with your hopes of a pending sale) can really be tainted if you set too many parameters for viewing your home. With the amount of properties on the market at the moment, should you have hindered your showing activities can impede the sale of your home.

Some of the common constraints:

• Appointment required only: Some agents and their clients might be viewing your neighbor's property. Then, they noticed your property was for sale too. (You had great curb appeal and they had to come in to take a look). But when the buyer's agent make the call to view the property, it says Appointment Required. So happened, you were in the movies and you didn't pick up that call. Guess what? The buyer's agent and buyers move on (not remembering about your home).
• xx hour notice: Some showings may require 1 hour notice. I have seen some that needs a 24 hour notice. If you set yourself such parameters for viewing, again, drive-by agents and their clients do not have time to wait for 1-hour before viewing your property. While we understand that you might need a few minutes to grab your child and stuff, as long as a courtesy call is made, your potential buyers should be able to walk into your house after given notice (again, in this market).
• No showings before xx a.m. or after xx p.m.: Buyer's agents would typically make appointments as early as 9:00 a.m. or ends their showings at 8:00 p.m. So, do not restraint them to come in during this time-frame. We can understand not to show the house at 7:00 a.m. or 10:00 p.m. I am not saying make your house a revolving door, but if you limit yourself, you might not catch those "early birds" or the "late night owls". In my personal experience, I have seen a showing instruction to not show the house after 6:00 p.m. That makes showings very difficult for the sale of your home. Guess what? Most buyers view houses after work, while you are trying to get home to prepare dinner. It will be inconvenient - and the home-selling process is never convenient. I take it that if you are bothered so often, those are good signs that your home has great showing activities. High showing activities lead to a contract eventually.
• No showings between 12:00 - 3:00 p.m. (seller's child takes naps): This is really a big question. Should you restrain showings like this? Could your child take naps at an alternative location when a showing is pending?

Think about your showing parameters. In a market such as this, you would only hope many, many showings are made for your property until you could barely stay in. That, will be a good sign for a sale is near. If you set too many showing parameters, you are only setting yourself up for failure.

When Foreclosure Hurts

Several years ago when the real estate investment hype was going strong, Collin County (Texas) realtors cashed in on selling real estate as investment properties. Some went to California, bought large billboard signs and phone calls/ "investors" came in by the hundreds, if not thousands. They conducted seminars about the real estate investment opportunities in this area. Many of them cashed in on their Californian home equities to purchase these properties. Business was hustling and bustling. Life was good.

Fast forward 2-3 years later, these properties continue to sit on the market VACANT. Ouch (not a pretty word for the investors).

Why????

You see, these California investors purchased properties by the dozens. Many of them bought existing homes and many more bought new properties. When you purchase 3-5 properties at one time, you betcha the Home Builders would cut you a pretty good deal on the houses. These are very large houses too (by that I mean 3,000-4,000 square foot homes). Corresponding to that, large homes tend to come with large rents. If you knew the Texas (or specifically Dallas) real estate market, you would know that generally, most renters do not rent huge McMansions and pay over $2500 - $3500 homes no matter how new they are. So, these homes become very difficult to lease and obviously sat on the market for over a year EMPTY. Ouch. So, these investors have to resort to selling them (at a very huge lost) or many of them have been foreclosed upon.

Just to quote a specific example: Panther Creek Estates in North Frisco has too many houses such as this. Back in 2004-2005, you could purchase a home for something close to $200,000 (and by that I mean, single-story starter homes). Fast forward 3 years later, you can now buy 4,000 square-feet homes for around $200,000. And these are available by the dozens. Quite a few for you to pick from.

Foreclosure hurts everyone. Not just these investors. It hurts the Sellers who are NOT in foreclosures, trying to sell their homes for whatever their reason. Granted, these non-foreclosure houses are alot better quality and have many finishing touches in them, these Sellers cannot justify a $50-$100K more in price no matter what you have in the house! Sellers who are not realistic with their expectations continue to sit on the market, awaiting this One-Special Buyer who thinks that their house is worth that much more.

This scenerio continues to grow all over the Dallas area real estate market. When investors are foreclosing by the hundreds, it hurts everyone. Buyers will seize the opportunity to purchase.

Lesson learnt?

Think twice when some salesperson sells you something. Do your due diligence in anything concerning money. And if you are interested in investing in real estate (which I still absolutely believe in), invest in your backyard to begin with. I personally do not advocate investing in unfamiliar territories and more so, some where you cannot get to easily.

For realtors, please take on a better job in discussing the pros and cons about investing in real estate. Do not just get these Investor buyers and leave them fending for themselves (I know several realtors in town that have done so). At the same time, I understand that it takes two to tango. So, investors, again do your due diligence.

Betting/ Gambling in real estate is NOT the way.

A Friday Real Estate Rambling

Written by Loreena Yeo Copyright 2007.

Sometimes after all you have done and you know you did your best, the people who loves and cares for you will tell you that That's All You Can Do. But it never fails to dampen my spirits about this listing I didnt get. Or should I say, I wished I was able to give my best to.

I am not sad because I didnt have the opportunity to list. I am truly disappointed to know that the Seller whom I went out to try to assist (in her horrible need-to-sell basis) while I was given orders from my doctor to stay on bed rest (a risk I took from my precious baby). I had to go out there to at least see if I could be of help. I took the risk and it didnt turn out the way I wanted - at least for the Seller.

Long story short, this Seller needs to sell Yesterday. She openly told me she's interviewing other agents (and I only think it's fair. I wouldnt want it otherwise). But I lost this listing to an agent who listed $60,000 more than I think it should sell for (given her situation). And with the condition that it is (it truly looks dated with wallpaper and throughout the house) with no pool while her entire neighborhood has a swimming pool. Even with a pool, she would have been $40K overpriced at the price this listing agent took.

I truly wish I could go out to shake this agent or at least share this with the Seller but since there is an agency relationship, I think it's best I keep quiet.

I am sad because I didnt push hard enough.

I followed up with her a few days later and she told me she decided to go with another agent despite telling me that she thought I was very thorough in my presentation and expectation of what she MUST do in order to sell her property.But am I (thorough enough)??? I still failed to make it crystal clear to her about how listing it at any higher price that I suggested will not help her sale any faster.

Agents and my family will tell me that she would eventually find out but I hate for her to realize this 3 months into the wrong listing price.

I politely asked her, "What she thought I didnt do to earn this listing?"

She answered, that "The other agent's marketing was more aggresive......"

In my heart I asked, "Aggressive such as ??????. " Instantly, I knew I had lost because the other agent had promised her a higher listing price while mine really, really sucked in reality. The truth: The reality of this market sucks and for me to give my best was to price it realistically. I never doubt that I wouldnt work as hard as any other agent -if I knew what I had to do. If I could deliver the Moon, I darn would.

Guess, this is just another one of my stories to tell in my book. I do place this guilt and failure on me: not my potential client. I feel I have failed not to be aggresive to convince her that the listing (for the assistance I think I could give her, not for the paycheck at the end) needed to be where it needs. But I cannot tell her that now.

Are You Landlord-Material?

Written and copyright © of Loreena Yeo 2007

(1) How much money have you set aside for your rental property(ies)?

See, the question is if you have any money ready to be set aside for this business (after all, landlording is a business). I did not quite mean if you have any money set aside. Unfortunately, if you have to dip into credit cards to make the mortgage payment when your tenant cannot pay you, or if you have a plumbing issue, this is a good red flag to say that it may not work out for you. If you can put at least 3 months worth of payments aside (better at 6 months), you at least have a sound financial plan.

(2) Can you cashflow? Or are you going to feed some money into the property each month?

Work out the math. Factor in vacancy rates and estimate repair costs. Not just mortgage payments with property taxes and insurance. There is a real math behind this. What if the numbers do not work? Does it mean this landlording business is out? Not necessarily. Again, it depends on your individual situation. If you need help in figuring this out, contact me. I'd be more than happy to share with you what I know. No pressure and obligation. I feel the more information you have in your hands, the better the decision you make for yourself.

(3) Oppps.......... let me back up. Do you work off a monthly budget and abide by it?

How is your financial situation at home? Are you living from paycheck to paycheck? (Red flag alert)... The truth is that I have heard many people saying that "They are doing okay" or "I got that covered....". What does that really mean? Please let me tell you what it should mean before you really think you have that covered.It means you are on-time with all your personal bills. You are sitting on at least 3-months of cash savings (living expenses) and now that you are getting into the rental business, you should have at least 3-months of additional mortgage payments plus property taxes and insurance. This is the least you must have in order to sit on a strong foundation to begin considering landlording.

Why so stringent you might ask? The more savings you have, the more you can pad away your problems. Then you wont operate in a crisis mode. Having that $500 plumbing problem then because just a mere inconveninece for you.

Should you seek credit cards to fund your emergencies? Absolutely not. The rental business is purely a numbers game. If you have to seek a credit card for help at 18-20% interest rate, dont you think your entire ROI (return on investment) go out the window? Well, how about those 0% credit cards? Well, think again. It already says you are not financially ready for landlording, in my humble opinion.

(4) Do you plan to manage it yourself or hire a property manager?

Either way, property management can be successful if you have the right personality and tools to do it.
The benefits of handling your own rentals is that you save money. Typically, property management fees start around 10%. That means you will also need to factor this fee as part of your cashflow equation. The property manager takes the tenant calls for you, however, you still will need to play a somewhat active role in keeping on top of your property manager. So, instead of dealing with tenants, you deal with your property manager. Late fees are collected for you and typically split between the property manager and you. But we never wish that to happen.

You do not need to listen about Why Rent cannot be paid on time this month. Some real tenant answers are, "I need to buy new clothes for my kids or school items before the kids go back to school" or "It's Christmas and I really dont want my kids to be without this season. After all, 'tis the season to love and give, right?"........ Going back to school in August and Christmas occuring every December suddenly catch them by surprise. Be prepared that people make decisions with their money and it is beyond your control. I am not here to judge if it is right or wrong. It happens. (I do not say that ALL tenants are this way. But you need to assume the worst to make your most conservative decision).

The advice I provided may sound difficult or somewhat harsh, but as a realtor and a trusted advisor in your new endevours, I'd rather be upfront with you than to get you scrambling when you are already in the situation. Call me if you have considerations in becoming a landlord - whether it is here in the area or anywhere else. I'd love to share with you.

PS: I am a landlord and I have some experience in this field. I am not here to say whether this is for you because ultimately you do what you think is best for you. But you should hear all the goods and bads before you get your feet wet. After that, you will still have your own lessons to learn.

Related Article:
Is Landlording A Better Alternative to Selling in this market?

Is Landlording A Better Alternative to Selling?

Written and copyright © of Loreena Yeo 2007


No doubt that the real estate market has recently suffered some downturns. Many Sellers who plan to move on with their lives cannot or do not want to wait for the market to turn around are looking at different alternatives to selling.

Landlording comes to mind.

Is Landlording A Better Alternative To Selling In This Market For You?

Well, it depends on your situation.

(1) First of all, not everyone can qualify for having 2 mortgages in their name. Well, someone else has just made the decision for you.
(2) Even if you can qualify for it, should you?

Here are some points to ponder:

(1) Are you landlord-material? Read more on this.
(2) After the landlord material consideration, are you just making an emotional or financially-sound decision?
(3) If the market was not in this condition, would you get into the landlording business in the first place?

When Sellers make this at-first-glance consideration, they assume that:
(1) You will always have a renter in the house (no vacancy ie someone is always there to pay this part of your mortgage)
(2) There will be no turn-over.
(3) There is no repair.
(4) Rent will always be on time.
(5) It is just a simple clean and vacuum, then the For Rent sign goes up again in the yard.

The questions that I have raised are truly significant. They are real and they can make or break you. As much as I believe in real estate, landlording is not for everyone. Landlording is a business and should not be used as an alternative until something turns around. So, make your EMOTIONAL as well as FINANCIAL considerations diligently.

Find out what it takes to become a landlord.