Buying Frisco TX Homes for Sale? –Avoid These Mistakes

Buying a home is one of the biggest purchases you will ever make in your life. If you don’t want it to cripple you with stress and rob you of your other financial goals, you have to do it right.  Knowing what mistakes to avoid when buying a home in Frisco TX is important to ensure that you make wise decisions throughout the home-buying process.

In this article, you will discover the common mistakes homebuyers make when buying a home in Frisco TX and how you can avoid them.

Here are 13 most common home-buying mistakes to avoid when buying a home in Frisco TX:

1. Assuming every home has a negotiable price

2. Focusing more on flashy details than the actual quality of the home

3. Making a lowball offer

4. Choosing the wrong mortgage

5. Going beyond your budget

6. Underestimating the full cost of buying a home

7. Holding out for the perfect home

8. Not doing proper research

9. Signing without confirming that your interests are protected

10. Forgoing a professional building inspection

11. Focusing too much on online listings

12. Purchasing a home you are hesitant about

13. Trying to buy a home without the help of a real estate agent.

Keep reading to learn how to avoid making these home-buying mistakes that could leave you with buyer’s remorse later.

Buying a home comes with many huge decisions. It can be as daunting as it is exciting. Since it is exciting, it is so easy to get swept up in the whirlwind of house hunting and make unwise decisions.

Whether or not it is your first time buying a home, knowledge is power. The more informed you are about the issues to avoid during the home buying process, the more successful your home purchase will likely be.

·         Assuming every home has a negotiable price

One of the biggest mistakes homebuyers make is assuming that every home’s price is negotiable, when in fact it is not. Sellers use various strategies when pricing their homes for sale. There are times when they price their homes with room for negotiations, but there are also times when they price them to get multiple offers.

Nowadays, it is not uncommon for homebuyers to lose the first couple of properties they make an offer on because they underbid when the home is already priced to sell.

·         Focusing more on the flashy details than the actual quality of the home

It is also important that you don’t get seduced by the flashy details when buying a home. Always focus on the quality of its construction and level of finish. Since it is very easy to make a home look pretty on the outside, it is best to focus on its substance by paying attention to the less superficial aspects of the home, including its location and proximity to schools.

·         Making a lowball offer

Don’t be the kind of homebuyer who offends the seller with lowball offers. Work with your real estate agent in gauging how much to offer on a home.

·         Choosing the wrong mortgage

If you want to be in the best negotiating position, it’s important to have your loan not just pre-qualified but preapproved before you begin your home search. By doing this, you will know how much house you can afford.

Take note, however, that you can’t just go to a bank’s website or use online calculators to see how much you can loan. In reality, there’s a huge difference between what the banks indicate they can lend you versus how much you can actually loan.

It is also critical to pick your finance package carefully by going to several banks—not just one bank. Talk to your agent to have access to a wide range of lenders and finance products.

·         Going beyond your budget

During your home search, you know you are searching for a home that goes within your budget. However, there are times when you will find more expensive properties much more appealing than those you can afford.

While it is normal to appreciate expensive homes, purchasing a Frisco TX home that is way out of your price range will only derail your finances in the future. You may not see it now, but you will regret it later on.

Yes, it is human nature to want a little more than you can afford, but never be tempted to spend more than you can sensibly afford if you don’t want to be exposed to potential financial shocks in the long run.

·         Underestimating the full cost of buying a home

Before you commit to buying a home, never fail to budget for the full cost associated with purchasing a home. Remember, it’s not just about the acquisition costs but also the stamp duties, rates, valuation costs, loan application fees, and mortgage insurance.

When it’s time to move, there are also several other unexpected expenses apart from the moving costs. If you don’t want these expenses to catch you off-guard, don’t make the mistake of underestimating the ongoing costs of owning your property. Most of the time, owning a home costs much more than renting with expenses like insurance, maintenance, and rates.

·         Holding out for the perfect home

In some states, homebuyers tend to wait too long to move forward on the home that they love. This is a huge mistake. In reality, the perfect home does not exist, so if you find a property that checks at least seven of the 10 boxes you are looking for, you can already take it. If you hold out too long for the perfect home, you may lose out on the home you love and regret delaying later on.

·         Not doing proper research

Doing proper research is necessary before buying a home. If you don’t want your home purchase to go wrong, find out about the quality of schools in the Frisco TX neighborhood, accessibility to public transport, and possibly upcoming zoning issues. By doing research on these details, you will be able to determine if Frisco TX is the ideal community for you.

·         Signing without confirming that your interests are protected

When you don’t have the right protection clauses inserted in the contract of sale, you are depriving yourself of the protection that you need as a homebuyer. Do not sign anything unless you are certain that the contract protects your interests.

While the standard contract to buy a home usually gives you a three-day cooling-off period, you can still choose to be a smart homebuyer by requesting additional clauses to protect your interests.

Don’t be complacent to think that you can always ask for changes or an extension later, because that’s not the way it actually works. The only way you can get changes to a contract once it’s been signed is by ending the existing contract and renegotiating a new one.

·         Forgoing a professional building inspection

When buying a home, it is important to get a competent professional to inspect your potential new home. This professional should be trained to find faults and look out for major issues that may trouble you in the future. The building inspector will help you decide whether to proceed in buying the property or not.

·         Focusing too much on online listings

When you become too obsessed with “that one listing” you found on the internet and become adamant about only seeing that one listing, you fail to realize that there are actually several other—often better—options out there.

Most of the time, homebuyers who focus too much on a single online listing end up being disappointed when they finally see their dream listing. Instead of focusing too much on a single home you found online, consider the Frisco TX homes that meet your criteria and pick the one you and your realtor think is best. The more options you have, the better.

·         Purchasing a home you are hesitant about

If you have any doubts or second guesses about a home, then it’s not the right home for you. Spending more time worrying about some aspect of the purchase than being excited about it is a telltale sign that it’s time to walk away from it. Don’t be tempted to buy a home you are not sure about because that will only make things much more difficult for you in the future.

·         Buying a home without a real estate agent

Don’t try to buy a home directly without a real estate agent. No matter how good you think you are at math or how crazy your excel skills are, there will always be too many intangibles in the home buying process that you will not be able to calculate right unless you are a professional.

When you don’t let a real estate agent represent you in the transaction, you are like leaving your money on the table. Most of the time, buyers who come directly tend to overpay. You wouldn’t want to overpay, would you?

To help you make the best decision when buying a home in Frisco TX, call me, Loreena Yeo, at 214-783-2210 today. You can trust that my expertise in real estate will help you find your dream home in Frisco TX.

In case you cannot view this video here, please click the link below to view Buying Frisco TX Homes for Sale? –Avoid These Mistakes on my YouTube channel: https://www.youtube.com/watch?v=1j04wXIKP0U&feature=youtu.be

How to Increase Your Home’s Value Without Breaking the Bank

Why improve your home?

 

 

If you’re looking for ways to boost your home’s value. you’re probably considering some home renovations. Home remodeling projects are a great way of increasing your home’s value and improving its aesthetic appearance.

 

Before you go jumping on any home improvement projects, think again. Not all upgrades are equal. Some projects have better returns over others. Some projects are way too expensive, which could be a problem if you’re working within a limited budget.

 

You don’t need to put too much money into fixing the home up for sale. There are plenty of ways you can improve your home’s value.

 

Take a look at these contents on how you can enhance your Frisco home’s worth without overspending.

 

1. Identify your wants and needs.

 

2. Establish your budget.

 

3. Consult with a real estate agent.

 

4. Know which projects have permits.

 

5. Set a timeline

 

6. Prioritize repairs.

 

7. Identify the cheap fixes

 

8. Start upgrading!

 

9. Budget-friendly home improvements

 

Step 1. Identify your wants and needs.

 

 

A home remodeling project does not happen by chance. Your home is one of your biggest financial investments, so you need to carefully plan before doing any home upgrades, both minor and major.

 

Perhaps you want to have a large kitchen island with granite countertop, or a spacious bathroom with a separate shower and tub. Perhaps your partner is thinking of open shelvings.

 

Write it all down. Create a list of wants and needs. Knowing what should be done now and what can be put off helps in creating a solid plan.

 

Step 2. Establish your budget.

Once you’ve decided which projects to work on first, your next step is to know how much you can spend.

 

Setting a budget range is important because it will help you identify which of your priority projects can be put into action.

 

Home upgrades that are not properly planned and budgeted often go two ways. One, they stay unfinished for months because there’s no more money left to finish it. Two, the homeowners are forced to take a loan to complete the project, an additional mortgage to pay off.

 

To be financially ready for your home upgrade, here are four things you should seriously consider.

 

 

Know how much you have saved up for the project. Look at your savings or any other sources of income and see how much you currently have which can be used for upgrading. Decide how much you want to spend. Are you going to use it all up? Are you going to spend only 50% and leave the rest in savings? Establish a budget range so you have some flexibility, but know exactly just how much you can afford.

 

Budget for the unexpected. When setting your budget, make sure that you plan for the unexpected. Let’s face it, all home improvement projects face snags and complications. All budgets need a buffer, so make sure to save some money for those little surprises.

 

Get a rough estimate. You won’t know exactly how much you’ll spend, but you can get a ballpark figure so you can allot a realistic budget for the project. Getting a rough estimate from contractors can help solidify your budget.

 

Don’t force the budget. You probably have a specific project in mind when you started looking at your finances. It can be disappointing to find out that you don’t have sufficient savings for the upgrade you want. If this is the case, don’t force it. It’s better to save up money for the endeavor you have in mind, than bury yourself in more debt.

 

Here’s a great video which can help you learn when to save and when to splurge.

 

Step 3. Consult with a real estate agent.

You’ve probably heard or seen about the best home improvements which can add value to you home.

 

Fixer Upper, Property Brothers, Extreme Makeover: The Home Edition and many other TV reality shows have made it so tempting to upgrade all your kitchen appliances, replace kitchen counters, and knock down walls to create more space. The Internet is not helping either! It is flooded with a lot of these home renovation tips and ideas, making it difficult to choose the right projects for your home.

 

But if you’re thinking of putting your Frisco home up for sale, it’s better to consult with a real estate agent like us, Loreena and Michael Yeo, before any home improvement.

 

 

Here are the advantages of consulting with a real estate agent before proceeding with your home renovation.

 

1. We know what buyers want in a home.

 

2. We know the right upgrades that will make your home more appealing.

 

3. We can provide referrals for the people you’ll need in renovation, be it painters, electricians, carpenters, landscape architects and more. We have a network of trusted professionals who we know will deliver the service and quality you are looking for.

 

Step 4. Know which projects have permits.

 

 

One important step many homeowners don’t know when making upgrades is seeking permit.

 

Yes, some remodeling projects require a permit from the city government because the changes to your home will also be noted by the records. These records come handy during home inspections and when you’re seeking proof that your property complies with building codes.

 

Which renovations require permit? Here are some projects for which you’ll need to procure a permit:

 

Fencing Installation or Repair. Before you install or repair a fence, you should check with city regulations if there’s a height restriction. If you hire a fencing contractor, he should know about the regulations.

 

Window Installations. If you plan to install bigger windows or skylights, you need to seek a permit before cutting the holes.

 

Plumbing and Electrical Work. Major plumbing and electrical installations require a permit. But if you’ll just be doing minor electrical repairs, you should be okay.

 

Structural Changes. Any structural change your contractor will do to the house will require a permit.

 

Heating Maintenance. Replacing the water heater requires the heating contractor to get a permit. Any change to the ventilation system, gas and wood fireplaces, and ducts also need a permit. But if you’re just going to replace the filter or clean the equipment, you don’t need one.

 

Any additions or remodels above $5,000 needs a permit. This includes deck, garage, and sheds that require electrical or plumbing services.

 

What renovations don’t need a permit?

 

Here they are:

 

Painting and wallpapering

 

Bathroom and kitchen fixture replacement without plumbing line modifications

 

Freshening up the exterior with a new siding

 

Installing flooring

 

Minor electrical repairs

 

Installing new countertops

 

Installing or replacing a faucet

 

Landscaping work

 

Step 5. Set a timeline.

 

 

A timeline keeps everyone on the same page.

 

You need to have a projected timeline for the projects, especially if you’re planning to sell your Frisco home.

 

Any upgrades must be completed before you list your home, because as soon as you put your property on the market, you would need to have marketing photos and videos taken. A messy house will not appeal to the buyers.

 

If you’re considering minor updates, two weeks to a month should be enough.

 

Step 6. Prioritize repairs.

 

 

Before you proceed to doing any aesthetic improvements to your home for sale in Frisco, you first need to take care of any repairs or home maintenance issues.

 

Homes which have been lived-in for many years have wear and tear issues. Taking care of these repairs and maintenance issues will ensure that buyers will be willing to pay top dollar for your home.

 

The following are some repairs worth making before you list your home:

 

1. Exterior. First impressions are vital in selling a home, and your home’s exterior is the first thing a buyer will see. The exterior is also the most exposed to harsh weather, so it must be kept in good condition always. Problems like loose shingles, torn gutters, loose sidings, missing fence boards and unkept yards must be take care of. Patch up any hole marks on the walls.

 

2. Kitchen. All buyers visit and inspect the kitchen, so if you are to put some money in repairs, spend it in the kitchen. If your kitchen is old and outdated, it is time to replace the countertops, install new appliances and refinish and paint the cabinets.

 

3. Bathroom. The buyer may love your kitchen but if your bathroom is looking old, with broken and missing tiles, the buyer will walk out and never look back. Most buyers want move-in ready homes, with very minimal repairs as possible, so make sure that you repair the leaking faucet, replace the old toilet seat, install new tiles, clean and re-caulk bathtub and vanities.

 

4. Flooring fixes. Time has a way of wearing down hardwood floors and carpets, so if you’re to fix something, fix the floor. Have the hardwood floor refinished, and the worn out carpet replaced. A newly refinished hardwood floor looks spectacular and easily adds charm and character to a house.

 

5. Appliances. All appliances must be functioning! They don’t have to be new, but they must all be working.

 

6. Doors and windows. Check your windows. If you have windows that are cracked or don’t open or close property, fix or replace them.  Your doors must all be working properly, and there should be no creaky sound when opening.

 

Each house is different. What your house needs may not even be on this list. But don’t worry. Your Realtor® will walk with you and give you a list of the necessary repairs your house needs.

 

Step 7. Identify the cheap fixes.

 

 

You want to save money as much as possible, even when you’re doing home improvements. Is this possible? Yes, it is. You just have to know the budget-friendly projects that will not deplete your wallet.

 

To make things easier for you, I’ve listed down the most affordable projects you can do for each part of the home.

 

Inexpensive ways to boost your home’s curb appeal.

 

Power wash your sidings and walkway.  Washing your sidings and walkway will clear all the accumulated dirt and make your walls look cleaner.

 

Check out this amazing video on how to pressure wash like a boss!

 

 

Clean the windows. This will not cost you anything, yet it can make your home look so much brighter and newer.

 

This great video provides some amazing tips on cleaning the windows without spending anything!

 

 

Trim trees, front lawn and bushes. Buyers love a well-maintained home. Overgrown trees, out-sized bushes and dry lawn scream unkempt and ignored.

 

Paint the front door, trim, shutters and garage door. You want your front door to pop, so painting it and adding trim can make it stand out.

Install new porch lights. Porch lights improve a home’s aesthetics, and it also enhances security and safety.

 

Install new house numbers. When you want your home number to stand out, installing a new house number will help. It also looks very attractive.

 

Add planters. Give your home a cozy and inviting feel by adding planters.

 

Do a mailbox makeover. Don’t keep your sad mailbox. Make your mailbox attractive by repainting it or getting a new one.

 

Add flower boxes. Give your home a pop of color by adding flower boxes.

 

Dress your entryways with potted plants. Place some potted plants on your walkway and porch.

 

Want more tips? This video has some great suggestions.

 

 

Cost-effective ways to boost home’s value on a budget.

Declutter. A home filled with belongings look smaller than its actual size. Clear your home of any items you don’t need or you don’t use. If necessary, rent a storage space so you have a place to store your items. This will clear up the space, making your home look bigger.

 

Clean. Buyers are impressed when a home is clean and well-kept. Everything from the ceiling to under the sink and baseboards should be clean. Cleaning the windows will let the light in.

 

Paint, paint, paint. This is one of the cheapest ways to increase a home’s value. Painting your home will improve its look, and can make it look more spacious and bright. Choose a neutral color tone that’s easy on the eyes.

 

Replacing light fixtures. If you’ve lived in your home for several years, you’ll surely have to replace some of the lightbulbs. Switching to energy efficient light fixtures is also a good idea.

 

Step 8. Start upgrading!

Now that you have a clear idea of what to upgrade, it’s time to start the project.

Make sure to stick to your budget and deadline, and know when to stop.

 

Budget-friendly home improvements

It’s always good to learn from the experts, so that’s what we will be doing.

 

If you’re planning to upgrade your kitchen, here’s how you can do it under $100.

 

 

How about a bathroom upgrade under $500? Yes, it’s possible!

 

 

We cannot forget curb appeal! Find out what words of wisdom Property Brothers share with us.

 

 

No matter what you’re budget is, you can make a home improvement. This video shows how.

 

 

In home improvements, it is better to invest in minor upgrades than in expensive upscale ones.  This ensures you don’t overspend, you don’t go over budget, and that the money you spent will get a good return.

 

Are you planning to sell your Frisco home this year?

 

Call us, Loreena and Michael Yeo, at (214) 783-2210. We would love to help you sell your home efficiently. We’ve always worked hard for our clients because we know they deserve the best. That’s what you’ll get from us – consistency, professionalism, integrity. We look forward to hearing from you.

 

Find out what our clients said in our client testimonial page https://www.316realestate.com/About-Frisco-TX-Homes-Real-Estate-Testimonials/.

 

 

In case you cannot view this video here, please click the link below to view How to Increase your Home’s Value without Breaking the Bank on my YouTube channel: https://www.youtube.com/watch?v=m8xOEmT0FAE&feature=youtu.be

 

🏠How to Know the Right Price for My Central Frisco TX Home

As a seller, you should be able to identify the approximate value of your property in Central Frisco, TX

Setting a price is the most important sales tool in real estate.  If your house is priced right from the start, you’re on the right path to attract the most number of buyers who can afford to pay the price your home is worth and within your own timetable.

What will happen if you price your property in Central Frisco, TX more than 5% over the market value?

• Your buyers may be intimidated and they may resist inspecting your home since they can find better values somewhere else.
• Buyers won’t even bother to look because they can’t afford it.
• The longer your house sits on the market, people in the marketplace may think something’s wrong. This is when your home can become “stale”.
• Tendency is you will be inclined to lower the price later down the road, just to be able to move the sale.

On the other hand, underpricing it would also be a substandard choice. You will lose money if you set your price below the market value but when time is of the essence, then setting a bargain price may attract more prospects.

How do you set the right price?

A licensed REALTORⓇ like myself has access to the Multiple Listing Service (MLS) where I can see all the information that we need to compare your home to similar properties in your area.

• Examine the features of your home that stand out among the listings on the market.

• Enhance the marketability of your house in order to reach the highest possible value. This is where curb appeal comes in, including making all the necessary repairs and improvements before listing it on the market.
• I can present to you a Comparative Market Analysis (CMA) when we start working where we can compare the recently sold properties in your area that are similar to yours. This will help you determine the listing price.

Your home’s market value and your personal situation should go hand in hand. Your situation will have a strong influence on how you will put a price on your home.

You also need to put mortgage into serious consideration. If you can see, through the analysis that we’ll do, that the market value won’t cover the mortgage balance, you may want to wait until the market conditions improve.

Why do you need a REALTORⓇ to sell your home?

Selling your homes means you will need time, negotiating skills and knowledge of neighborhood trends. These are some of the things I can do for you aggressively. It’s my job to keep abreast of the market changes that happen everyday.

When you’re ready to sell your home in Central Frisco, TX, please take advantage of my expertise to help you see the clearer picture of the current market conditions and price your home to sell.

I’m Loreena Yeo and you can reach me at 214-783-2210!

In case you can not view this video here, please click the link below to view 🏠How to Know the Right Price for My Central Frisco TX Home on my YouTube channel: https://youtu.be/50pOuPTMjBE

Are You Speculating Home Prices?

First of all, this is not a “Paint pretty roses on my canvas” type of post to encourage on-the-fence homebuyers to act. It is my personal view first as a person and a homeowner, not so much coming from a Realtor(R) perspective.

I have worked with a few on-the-fence buyers for a while. A few that just wants to see how much lower it would go. A few that just wants to buy at the absolute bottom. There is nothing wrong with that. In fact, I wished I could do that myself too.

However, you have heard me say this far too often. Real estate is local. Local to communities, local to cities. It is also local to price points too. The “first time” home buyer, smaller homes perhaps less than $150-$160K here in the Frisco TX real estate market did not get “hurt” as much. Some clients that I work with actually gained equity even though they purchased 4 years ago. Looking back at historical data, we could almost say that 2004-2006 was perhaps the peak of the market prices here in Frisco.

All of these foreclosure talks are somewhat relative. Many people are foreclosed on today because they perhaps have put very little down, gained no equity in 4 years and now are suffering financial difficulty on top of a bad market condition.

Home prices may not go up very much but they don’t go down very much either, at least not for our Frisco TX real estate market. We are not California or East Coast where we had the roller coaster rides of the real estate market. Our Frisco TX homes were never bought for $200K yesterday, then worth $300K 6 months later, then $140K with no takers another 6 months down the road.

I cannot promise you that if you bought your house today, that it may not go down more. Though $5-$10K seems alot, again we are talking about time value of money and especially with the favorable interest rates less than 5% for a 30-year and 4.25% for a 15-year note today. It is not less than $50 more per month that we are discussing about? How about the pride of homeownership? Something you can call your own? A wall color you can paint just because you can?

If we ever keep holding out for market conditions to turn, we are speculating. Yes, gamblers of the real estate market. Taking a chance on the real estate roulette wheel. Personally, a home for your family should never be viewed that way. And I’m saying all this not as a realtor(R) who’s trying to paint a positive picture. I am first a person and a homeowner who wants my home to be a blessing to my family. Though a house is an investment, it is first a refuge for my family. A roof over our head. Sure, I wouldn’t ever want to see the values fall. But who can tell me that this is how low it would go, or how high we can see?

Back to how I always answer if Now is the time to purchase? Buy it when you are financially and emotionally ready. I’m not saying Let’s not care about the market conditions but sometimes in life, we can’t win it all. We got to give a little to take a little.

Are You Having Spending Fever?

Every once a while, I get into a spending fever. I’d feel that I’ve “deprived” myself because my family have learnt to deny ourselves of today’s luxuries.

In 2004, we felt it was time to buy something…. anything nice for us. So, we looked into a Chevy Tahoe – something I love very much (at that time)….. The payments were going to cost us $500-$600 per month. Yikes!!! Like all consumers think, we could afford it (those famous words)!

So, what did we ended up with?

For $500 – $600/month, we ended up moving up in house (yes, Frisco real estate!) . No doubt that we make to make this extra payments for 30 years, instead of the car for 5 years, I still think it is worth it.

Stephen Wolfe’s (the real estate expert in Birmingham, Alabama) blog about Dont Buy That Car! brought back memories of this specific experience…. I had to investigate if my purchase was still justifiable.

That same Tahoe I would be driving today would be worth $20,000 at BEST CASE scenerio. I would have paid $38,000. A depreciation of $18,000. Ouch!

In comparison, my house appreciated at least $20,000 – yes in this slow depressing market so Jim Cramer said. I also assumed that my house has maintained a zero appreciation value for the past 18 months. My family turned our first home in 2004 into our rental property. That property probably appreciated $20,000 – a very low ballpark estimate.

Per Dave Ramsey famous words, “Dropping like a ROCK!”…. and he is right. At this point in our financial life, we cannot afford to purchase a brand new car with the depreciation rate like it is. And guess what?

I’m driving a RX 330 today. I bought it 3 years used (and yes, it still depreciates but not like I would if it is brand new). I “feel” it is a much better car for me too.

My houses continue to appreciate and someday my car will be worth $500. A huge divide!!!

Sharing A Different Buying Message

More media splashes this week about the looming sales of the housing market. Well, you have seen it in just about every major news publication. Should buyers stop buying now and wait till the prices drop “even further”?

When investing in the stock market or even the housing market, most buyers use the common emotional reactions: buy when everyone is buying (or the market is HOT). In a Buyer’s market (where there is more Buyers than Sellers), and especially with the stories we constantly here that prices will continue to drop for at least xx months, most buyers hold off their plans in hope that prices do continue to drop further.

However, do realize that real estate is a local concept. By that I mean, the effects and results of them are totally dependent in the areas you are interested in purchasing. Even in a slow market, there tend to be pockets of areas within your city that are “hot” or “hotter” than others. Some neighborhoods continue to thrive and increase in price. Hence, working with a local area expert would be essential in guiding you through the right process. Respectfully, it does not quite work with just what the news are saying.

In general, buyers love SALES….. Know that the “higher” the discount, the “more” we as consumers feel that it is time to buy. If you enjoy sales, you should enjoy the “SALES” that is going on in the housing market right now. We do not necessarily say this house is ON SALE or have stickers or banners all over the house (I will admit that would be a little over the top and cheesy), but you can most generally assume that the Sellers do understand that it is harder to sell in this market now and will seriously evaluate the offers that come in. They do know that they are not sure they will get another offer on the table tomorrow. Just like the stock market where the price per share has dropped, as a good investor, you would want to buy then instead of on the “high” time. Why?

This leads to my next point. When you invest (especially when you buy a home), you are investing in your family and your home. You are not buying to speculate the market. While real estate professional do not guarantee that the price you pay for your home will be higher when you are ready to sell it, you should not use this concept to make your purchase. You buy with the long-term mindset. It may be unfortunate that you might need to sell the next six months for whatever reason, but do understand that when you make the buying decision, you are buying for long-term reasons.

At the time of this publication, we are in early September. Sellers are continuing to cut prices – in the Dallas metroplex/ Frisco and surrounding city real estate markets. Buyers can expect to still have a good selection of inventory to choose from whereas in the Winter months, there tend to be less inventory for your selection even though prices may/ could be lower then. It is a chance you take and back to the buying for long-term philosophy, is it worth $2000 or $5000 wait? Who knows how much lower it may be.

Interest rates is still considered historically low. While I have never seen the 15-18% interest rates back in the 80s, long-term fixed rates today remain low. Good mortgage companies with good loan programs continue to stay in business. If you fear the fall of subprime mortgages and you were on the borderline: qualify versus non-qualify status (understand where I am coming from with my next statement, I am not here to burst your American Dream – I am in building people’s American Dream of homeownership), you do need to consider your purchase or the amount of your purchase. Can you really afford it?

The difference between 1% rate difference in mortgage for $200,000 (a very common and realistic number for the Dallas metroplex) is approximately $125 per month. If this amount would make or break your monthly home budget, you should not consider this loan amount in the first place. Remember that over time, your salary tend to increase – unfortunately with the rest of the consumer products you need to purchase also.

Buying with the long-term mindset is also a form of FORCED SAVINGS. Understand that your buying psychology, you will continue buy – from clothes, to restaurant food, a boat, a car or an RV. When you purchase real estate, you set a fixed amount of funds aside to make your payment on a house – typically an appreciated asset in the LONG RUN.

There are also lots of financial and emotional benefits to homeownership now, rather than later. Tax benefits can be another topic in itself to discuss…… The physcological, pride and a sense of belonging that are priceless.

So, what should you as buyers now? You decide for yourself. Waiting is an option. It could be a right option for you. But think through it. If it is to save more for a rainy season, great. If it is to speculate that prices may fall even further, know that you as a buyer can control the price you want to pay – regardless of what the news tell you.

Related Articles:
Frisco Real Estate Home Report – Summer 2007
What Do You Get For Your Money In Frisco
Subprime Mortgage Dampen Your American Dream

Is Buying always better than Renting?

Is homeownership on your horizon? Are you excited about your possibilities? Wow… you can finally paint the wall black, green or purple just because you can!!! How cool would that be?
So, you pay $1,000 in rent now. For $1,000* in mortgage payment a month, you could buy a $150,000 home at 7% interest for 30 years. In the Dallas/ Fort Worth market, $150,000 buys you a pretty good starter home.

Hold on….. before you go on further, let’s ponder on some important issues of homeownership first.The $1,000 in mortgage payments have not even included the property taxes and insurance. Okay, so let’s back up to a little less house then. Let’s assume that the property taxes and insurance is approximately $250 per month. That makes the mortgage payment (principle and interest) to about $750. At that amount, you are probably looking at a house valued between $110,000 – $120,000. Still not bad.

So, here you are. You put your signature on the dotted line. Your real estate agent called you to tell you that your loan closed and funded. You received the keys. You now own your American Dream. You move in and you are happy.

New homeowners start to think differently. The mix and match furniture from the college days suddenly do not fit the taste of their new home. They did not like the wallpaper the previous owner left behind. The yard needs to be mowed, edged and trimmed. The garage needs some organization. So, what would a “regular” new homeowner do in this situation? They go out to make Home Depot and Lowes their second home. They could also qualify for a reserved parking spot just because of their frequent visits. These are the unseen foreseen expenses that homeownership incurs. How much is ever enough? So, out they go to get a Home Depot or Lowes store credit. Zero percent interest for 18 months? Sounds like a no-brainer. Have pure intentions of paying this way before the zero percent deal ends? But life got in the way? Before you know it, you are looking at more debt.

Even if you are disciplined enough not to do home improvement projects and do not mind using the couch Aunt Janet gave you, homeownership could have maintenance costs to consider. Remember in your apartment days, when the air conditioning unit is not cooling enough, you pick up the phone to call the apartment manager? Gone are the days. When your heater goes out, you pay for the repair. When your toilet gets clogged, you sign the invoice.

It is not my intentions to dampen your spirits. But if I was your realtor – the one who watch for your best interest, if I did not discuss these scenerios about your possibilities and just share with you about homeownership as a bed of blissful, sweet smelling roses, I feel I did not paint the whole canvas.

A well-prepared new homeowner is a smart planner. Remember that your home should be a blessing for you. It should serve you and your family well for many, many years, not the other way around. So, if you feel that homeownership is on your horizon, pick up the phone and call. I’d love to share tips and strategies with you to make your American Dream a pleasant experience.

House Rule: Is Buying ALWAYS better than RENTING?
The answer: In the long-run, yes. In the short-run, no. It can leave a bad taste in your mouth for a while.

Suprime Mortgage Dampen Your American Dreams?

Has the Subprime Mortgage got you a little down on your American Dream? The dream of owning your own home? What has the media done recently? The stock market is like a roller coaster – One day it is up and another day, the sky seems like it is falling. News splashes everywhere talking about foreclosures at an all time high, more houses on the market now than ever before…..

What is Subprime Mortgage?
A sub-prime lender is one who lends to borrowers who do not qualify for loans from mainstream lenders. Some are independent, but many big-time mortgage companies have set up sub-prime departments to take part in this lucurative market.

What is a Subprime Borrower?
A subprime borrower is one who cannot qualify for prime financing terms but can qualify for subprime financing terms. The primary disqualification for mainstream loans is primarily due to weak credit scores.

What could be the Subprime Lending Terms?
With the higher risks of borrowers defaulting, subprime terms are normally at a higher interest rate, some with early pre-payment penalties, etc.

So, what does this really mean to you – if you have not achieve your American Dream?

The fall of the Subprime Mortgage is a good thing. What???? What do I mean? No doubt, I am in the business of assisting people achieve their American Dream. Let me get this straight – I AM ALL FOR THE AMERICAN DREAM. After all, I came to this country in search of the American Dream. But before I go further, let me describe to you what “my version” of the American Dream is about.

My American Dream goes far beyond owning a piece of real estate. Coming from a third-world country and a minority in my very own country where minorities fight to be the fittest to survive, I call America – the greatest Land of Opportunity. In this place, regardless of my race, color, nationality or sex, if I put my mind into anything I want, the great blue sky is my limit. If I can dream it, I can achieve it!!!

So again, what does this mean to you? The Fall of the Subprime Mortgage? You might have just fall onto the “disqualified” category and did I say it is a good thing? There is always a reason why you were disqualified. It is most likely your weak credit history. Evaluate to see where you stand financially in the past three years. Have you ever been late on payments? Are you close to maximizing the credit cards you have? Do you have debts? Are you not saving money each month?

These are some painful questions to ponder on. If your answer could be Yes to one of these questions, reflect to see if you really are ready for homeownership. Your home should be a blessing to you. It should not be something you work, work and work just to make the payments. Worry one day, if you would be foreclosed on because you barely made the cut into qualifying for the loan.

Build your financial strength prior to achieving the American Dream. That means no debts of any kind and a good stash of savings to sit on (3-6 months of monthly expenses). Then your American Dream is a blessing for you and your family.

With the covers of news media splashing foreclosures every day, how sweet is the American Dream now to those who are going through this stress? I am not looking down on those who are in foreclosures today. There could be many, many unforeseen reasons. But if you could build your foundation on solid rock (no debts and savings), should you give yourself and your family that advantage of building the American Dream?

What To Do In This Declining Market?

We are hearing the Chicken Little cry all over again. This time is it with real estate. “The sky is falling, the sky is falling”…..

Media headlines are splashing with screaming reports, “Sales of new homes fell in June – largest amount in 5 months and WORST DOWNTURN in 16 years”…. quoted MSNBC. Foreclosure rates are at its highest, it is more difficult to qualify for loans. The National Association of Realtors (NAR) reported recently that the sales of existing homes dropped to its slowest pace since November 2002 and the decline was twice worse than expected. Some economists say that the weakness in housing could linger well into 2008. The rise and fall of the US Stock Market is clearly not helping either. We recently hit the highest point at the Dow Jones at 14,000 points (July 19 2007) but it did not last long. Before we know it, we were riding the roller coaster downhill plunging over 500 points over 2-days by the following week (July 26 and 27). People at Wall Street is calling this a Meltdown.

So, as buyers and sellers in the current real estate market, what should you do in the mean time? Sellers: Should you retract your house on the market, make plans to continue stay where you are at? Is that possible for your plan(s)? Buyers: Is holding off your plans a possibility because interest rates are heading higher? Or would now be a great time because Sellers are more open to offers?

When purchasing a property to house your family, even though there are investment and appreciation factors to consider, what really goes on with the “market” should not be the MAIN deciding factor on whether you want to buy (for buyers) or sell (for sellers). No doubt that it can be much more challenging than ever for Sellers, hence partnering with a local market area expect is key in bringing you the success you are looking for. At the same time, when you purchase a house and plan to make it a home – haven for your family, chances are these relatively “short” term commotions should not affect your major purchase decision.

Be in the Buying or Selling market now to fit your schedule and circumstances now. And not how the market is doing. Since you are making this decision on as long-term decision for your family needs, the short term swings of the real estate and stock markets should not hinder your plans. If you try to make your long-term buying/ selling decision based on short term affects, what you are trying to do is to “time” the market.

Just like participating in buying and selling stocks (even though we know real estate is not as liquid as stocks), market timing known as the attempt to predict the future price of houses, can be a dangerous strategy. It becomes more of a gamble. Is the happiness of your family worth the risks? Hence, sticking to the safer path is like walking on solid grounds.

Purchase or sell a house when you are ready. It is the BEST time to do it. Not when other factors affect you. Worst still, factors beyond your control such as higher interest rates, rising and falling of the stock markets and whether your neighbor is in foreclosure or not.

If you are considering a real estate purchase or sale in the North Texas real estate market, I will be delighted to speak to you. I work in the Frisco, McKinney, Allen, Prosper, Celina, Little Elm, Richardson, Dallas, etc. (Denton, Collin and Dallas counties).

Down To Earth Home Buying Tips

I’m a huge advocate of encouraging friends and family to make our homes a true blessing. Hence, my thoughts and my blogs will reflect that. More than anything, my family do our best to live by it.
There are some very simple guidelines to follow when purchasing a house to call HOME. However, be prepared that these are not easy to achieve because we live in a society that feeds on “I want it NOW” attitude.

1. Be debt-free. This plan includes becoming debt-free of all store accounts, credit card debts, school loans, car loans, medical bills and any kinds of consumer debts. Only when we become debt-free, it relieves us from the vicious cycle of “minimum payments” and continuous fear of never-ending “emergencies”. Credit cards are not our source of “emergency savior” – get out of that rutt, please! I’m sad to say, for some people, lunch may be an emergency.

2. 3-6 months of living expenses saved.Having a good stash of savings prepare us for the “RAINy days”. To start, have a minimum amount of cash stocked away for “emergency preparedness”. That “special” number may differ person to person. For those of us who are more “emergency” prone, maybe begin with $2000. For those of us whose jobs are “more secure”, life has less risks, then perhaps $1000 may be sufficient to tide small emergencies. Beyond that, attack the consumer debts with a vengence. Be willing to change our lifestyles. Most of all, be prepared to make alot of UNHAPPY sacrifices. A quote that I continuously remind myself when I wonder why I do what I do:
Live like no one else, so that later you can live like no one else (Dave Ramsey).
After having all the consumer debts paid off, continue to save 3-6 months worth of living expenses ie the expenses that is needed for survival. Since we are getting ready to purchase a house, be sure to save a sizeable down payment on top of that. Remember, a house should be a blessing. The difference between a blessing and a curse (after Murphy moves in) is the savings.

3. 15-year, fixed mortgage. Get 15-year, fixed mortgage. Be sure that the payment is no more than 1/4 of our take-home pay. Would other numbers work? Sure it would (or maybe)…. Remember that we are discussing Down To Earth Home Buying strategy for the blessed home? We can work all our lives to buy more or “house” more, but do we really want to live in the Merry-Go-Around Chase the House Payment rutt?

4. Furnish room by room. Dont go out to furnish the ENTIRE house all in one go. When we purchase a house, HomeDepot and Lowes are our second home. It’s not a matter of “if” it would happen, it’s more about “how bad” it will be. Do not begin the whole cycle (Step 1) that we have worked so hard to get out only to fall back in. Shop cheaper alternatives: estate sales, goodwill (blog).

5. Not in the 1st Year.For first time buyers, please dont shop for a house until the 1st Year has pass. Why? The first year of marriage is one of the most crucial years of a married couple’s life. Get to know each other first. Learn to live on one-income (even if both husband and wife works). Learn to live less than we make. Learn to live below our means. It’s already stressful, dont add house-shopping to the list.

Will other steps work? Most definitely. But I could almost assure you that a person who had not had a car payment will tell you the wonderful feeling of not having one. A family who wished they had waited to save enough will tell you that they wished their home is a blessing. I know I may be stepping on a few toes about this. But these are just my humble opinions on How to Make our House a blessing. There’s no big secrets to home buying.

Blessed are those who lives in their house filled with happy days.

I proudly serve the North Texas real estate. I work in the Frisco, Plano, Dallas, Little Elm, Prosper, Celina, McKinney, Denton, Anna, etc. markets. Please give me a call for all your real-estate related needs. I’ll be looking forward to hearing from you.