Putting a ‘For Sale’ sign in front of your home or business is only a small part of the process of selling your home or commercial property and for a seller, it’s certainly not the first step. When you sell your property you need to have all your ducks in a row before you hit that market, because as the saying goes,
“you never get a second chance to make a first impression”.
The first step is knowing your financial position as of today. This is calculated by subtracting all the costs of selling your home from your selling price.
How do you know your selling price if you haven’t sold your home? You don’t. You can guess or estimate or even worse, Zestimate (this is the Zillow estimate with a long history of being inaccurate for many homeowners).
This is where getting a Current Market Analysis of your home comes into play and is so very important. A professional in real estate, otherwise known as a Realtor, will come to your home and view your home (see its pro and cons for today’s market), they’ll analyze the home sales market in your area and give you a price range after they’ve studied all the information they’ve gathered.
Below we’ve featured a home seller net calculator so you can see how costs are calculated during a home sale. You can play around with numbers and see what you could possibly make from a home sale.
This calculator is just an estimator and of course, if you haven’t had a professional CMA yet, you don’t know what your home sale price range will actually be yet, but playing with these numbers can help you get a better picture of what to expect.
Our FREE home values estimator will get you started on finding the value of your home, just fill in your address and boom, you’re on your way to finding out your home worth.
We’ll contact you to set up a time to help you find your current home value with a FREE CMA and then sit down with you and really crunch out the numbers, helping you fill in some of the blanks.
Vocabulary of Fees
- Mortgage payoff balance. Deductions from the sale price include your own home loan, second mortgages and home-equity lines of credit.
- Loan payoff fee. Some lenders may charge you an administrative fee to pay off your loan.
- Lien releases. If you owe money to a contractor or for court judgments or property taxes, a lien may have been placed on your property. You must pay those liens before the sale can close.
- Prepayment penalty. Find out from your lender if there’s a penalty for paying off your loan early.
- Recording fees. If you owe money on the property, you need to pay this fee to show that your debts have been fully paid.
- Commissions for listing and selling agents. This is the price you pay to the agents for making the sale of your house. Usually the fee is 6 percent, with half going to your agent’s brokerage and the rest going to the buyer’s agent’s brokerage. The agents get paid by their respective brokerages.
- Notary fees. Fee charged by a notary to verify your identity and to make sure the documents are executed properly.
- Escrow fees. The escrow company is the intermediary between you and the buyer, ensuring that the money is handled properly. Escrow agents receive money from the lender, pay off your mortgage and closing costs, collect deposits and give the proceeds to the lender. You may be able to split these costs with the buyer.
- Title search fees. Title insurance is not insurance per se but says that you have the legal right to sell your home. Title companies search public records to come up with a title insurance commitment. That commitment says you own the home, and it details anything else that may affect the title, such as mortgages, liens, easements, restrictions and home owner association declarations.
- Seller concession. A seller concession helps buyers pay their closing costs. If the buyer asks you for a concession of, for example, 3 percent, that amount will be added to your agreed-upon home price, and you will give back that 3 percent to the buyer to pay for closing costs.
A quick note about appraisals: many sellers come to us and ask if they should obtain an appraisal at the beginning of the process in order to validate the asking price or sales price. You are certainly welcome to obtain an appraisal if it makes you feel more comfortable, but you should be aware that, if the buyer is obtaining a loan, their lender will most likely require that a new appraisal be obtained by the lender…and your appraisal will not be useable by them. For that reason, most sellers do not obtain a separate appraisal. If you have a real estate agent, they will typically help you find an asking price based on their records of comparable sales in the area.
Thanks to Old Republic Title for the Net Sales Calculator
Thanks to Realtor.com for info and statistics
Dallas, Frisco, and Plano Texas are making headlines these days for booming housing markets, new and incredible mixed-use developments rising up and for the major corporations moving their headquarters in and calling these cities home. These headlines are individually fantastic but to look at them as a whole would mean one could only calculate a very strong and prosperous area with no worries on its housing front, but is this true? Are we at our best or headed for a bubble?
When talking about trends and data let’s focus on Plano for a moment. Below is a graph with live data of new listings of single-family homes in the general Plano area (on a circumferenced map). What do you observe about this graph when you look at it? Have you noticed that the four-year trend is nearly the same for new listings every year?
When you look at the Dallas and Frisco graphs, they’re very similar, Many analysts who are concerned about the Dallas, Plano, Frisco and surround area housing markets and their stability cite what CoreLogic chief economist Frank Nothaft has referred to as “brisk appreciation” in the market based on a booming population and increasingly tight housing inventory. The key to identifying a potential bubble forming is to determine the source of these factors and others, and then evaluate whether or not the market is actually in any immediate danger. Strictly by the numbers, Dallas and surrounding markets do represent a greater risk than some other regional markets simply because they have gone so high so quickly.
Managing Director for Fitch Ratings (one of the big three credit rating agencies), Grant Bailey warned in a new report:
“The Dallas housing market has shown the most significant overheating in the last two years and is now 15 percent to 19 percent overvalued. Overvalued markets are more likely to experience a slowdown in price growth, or a price correction.”
“Fitch estimates that approximately 17 percent of the country’s home prices are more than 10 percent overvalued,” the report said. “Fast home price growth in some regions — California, Florida, and Texas — appears to be exceeding the supporting economic fundamentals.”
In the event that a sudden economic shift occurs – say, mortgage rates rise dramatically or a main source of employment and population growth dries up – then the Dallas area markets would certainly take a harder hit than one that has been appreciating more slowly and steadily over time. The real question: is that sudden, negative economic shift particularly likely to happen and, if so, when?
Is there a shift coming?
The Dallas-Fort Worth area ranked second in a national forecast of sales and price growth in 2018 by Realtor.com. Sales this year are predicted to growth 6 percent while prices are expected to rise 5.57 percent. Only Las Vegas ranked higher, with sales projected at 4.9 percent and price growth at 6.9 percent.
Growth in price and sales is linked to demand driven by a population boom that has brought about 100,000 newcomers to the Dallas-Fort Worth area during the past few years, according to the U.S. Census Bureau.
The influx, the result of a healthy economy that added 100,400 new jobs to the region in a year, has increased demand for housing at a time when inventory was lagging and builders struggled to deliver quickly.
The result has been home prices that have escalated to record levels. The median sale price for a house in Dallas-Fort Worth rose 6.31 percent from $236,100 in November 2016 to $251,000 in November 2017, according to the latest data from the Texas A&M Real Estate Center.
The median sale price rose 57.8 percent in the past five years, up from $159,000 in November 2012 to $251,000 in November 2017, according to the real estate center.
Sales volume for single-family homes increased 5.51 percent between November 2016 and the same month in 2017. Year-to-date sales through November 2017 reached 93,812 for a value of $28.9 billion.
Despite some fluctuations in the market, demand and sales have continued to climb at a feverish pace for more than two years and show no signs of stopping.
According to Dallas’ own Federal Reserve experts, Texas housing as a whole is powered by a host of advantages over other states, such as a relative
ly low tax burden and, more importantly for investors, a flexible labor market. Flexible labor not only indicates that a market is highly adaptable, which is a positive trait whether a market is flourishing or recovering, but also that the market is characterized by corporations and industries that quickly respond to changes in the economic climate in order to remain profitable and that the labor force is willing and able to freely move between jobs as the economy dictates.
As far as Dallas goes, this flexible characteristic indicates that the threat of a negative economic shift – say, falling oil prices – is mitigated as far as fallout goes because the labor force is highly adaptable and is likely to remain active and engaged despite a downturn in any one given industry. In the case of falling oil prices, that particular example has clearly played out as many economists warned that Texas as a whole and its major metros, in particular, would likely suffer when oil prices fell. While the Dallas Fed predicted this past March that Texas job growth and, by extension, home sales volumes and home prices, would slow over the course of this year in response to falling oil prices, at present, home sales and employment numbers are stronger than they were a year ago when oil prices were hovering around $100 a barrel.
So does this mean that the Dallas housing market is impervious to oil price fluctuations? In an optimistic world, maybe, but successful investors seldom err on the side of optimism. Instead, it would probably be safer to say that falling oil prices have not been felt in the area yet and move on to other indicators that investors and economists are watching. Since population growth depends to a great extent on employment, the jobs market is likely where the first signs of trouble for Dallas will appear, should they do so.
According to the U.S. Bureau of Labor Statistics, Dallas employment has risen 3.7 percent this year so far, well above the national increase of 2.1 percent. In fact, the city ranked first in the country for job growth and third in the number of jobs added (more than 3.3. million in the past 12 months). We haven’t spoken much about oil in our posts, but we have focused a lot on the how the job market affects the housing market. The two really live hand in hand. While investors have to err on the side of caution, one cannot but help and be amazed at how the Dallas area, especially Plano has consistently ranked highest and best on many different national levels.
Interestingly, although oil-sector jobs did decline during that time period as many economists expected, other professions added enough jobs that they counter-balanced the losses. It is noteworthy that manufacturing and information jobs both are on the decline in the area. This could represent a potential problem in coming months since information jobs tend to create many other jobs and the loss of this type of job could affect job growth over time, but the decline likely simply represents a heightened environment of competition rather than a seriously problematic trend since most major metro areas are presently competing for these individuals and Texas, in particular, is a hotbed of competition for these professionals. Over time, however, if the information sector’s population continues to decline in Dallas, the market could certainly soften.
The final thing real estate investors should watch in the Dallas area is the new-construction trend. Compared to the national housing boom in the early 2000’s, builders are keeping their cool in Dallas. However, with would-be homeowners camping out, literally, in hopes of bidding high and early on the new homes of their choice, things could spiral out of control quickly. Adding to the potential for overbuilding, apartment renters are getting slammed with record rent increases, which is driving more renters toward homeownership. That is definitely good news for builders and investors today, but keep a close watch on this trend.
The second quarter of 2015 saw new home starts in the Dallas area up nearly 10 percent year-over-year, many of those homes are priced above the present median home price (around $200,000), an issue which is creating an inventory crunch at the bottom tier of the market and setting up a scenario in which the upper tiers are overstocked and home values could fall.
This is a tricky price point for people who may be selling their home for the first time. Pricing their home right in order to move up to next-level property is imperative in order to take advantage of the lower mortgage rates before they rise.
The Mortgage Rate Factor
Interest rates have been on the rise and there is no sign of them stopping. Even a recent respite from rising interest rates turned out to be short-lived as mortgage rates edged up again in Bankrate’s latest weekly survey of national mortgage lenders.
The benchmark 30-year, fixed rate rose to 4.71 percent, up 1 basis point from the previous week, according to Bankrate’s weekly survey of large mortgage lenders for the week ending June 27. A year ago, the rate was 4.07 percent.
Meanwhile, mortgage applications fell 4.9 percent for the week after rallying the previous week. Refinance applications reversed course from a week earlier, falling 4 percent, the MBA reported. Purchase applications decreased 6 percent.
Mortgage Rates This Week
The benchmark 30-year fixed-rate mortgage rose this week to 4.71 percent from 4.70 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.07 percent. Four weeks ago, the rate was 4.64 percent. The 30-year fixed-rate average for this week is 0.09 percentage points below the 52-week high of 4.80 percent and is 0.76 percentage points greater than the 52-week low of 3.95 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.31 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.31 percent. This week’s rate is 0.40 percentage points higher than the 52-week average.
- The 15-year fixed-rate mortgage fell to 4.13 percent from 4.15 percent.
- The 5/1 adjustable-rate mortgage was flat at 4.12 percent.
- The 30-year fixed-rate jumbo mortgage fell to 4.62 percent from 4.63 percent.
At the current 30-year fixed rate, you’ll pay $519.24 each month for every $100,000 you borrow, up from $518.64 last week.
At the current 15-year fixed rate, you’ll pay $746.22 each month for every $100,000 you borrow, down from $747.23 last week.
At the current 5/1 ARM rate, you’ll pay $484.36 each month for every $100,000 you borrow, unchanged from last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted and the effect on monthly payments for a $165,000 loan:
|Breakdown||30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||4.71%||4.13%||4.12%|
|Change from last week:||+0.01||-0.02||N/C|
|Change from last week:||+$0.99||-$1.66||N/C|
The Dallas Fort-Worth Area housing market is in a pretty healthy condition, so far. We’re on the right course to stay that way as long as certain factors adjust slightly in our favor. There are some of these factors that are under our control and some that aren’t.
Last week, CoreLogic analysts warned that over the next few years the housing market in Dallas could become unsustainable thanks to rising home prices and the increasingly-large amounts of monthly income that homeowners in the area must dedicate to their mortgage payments. However, the same analysts noted that the CoreLogic Home Price Index indicates that on average, Dallas homes will be “fairly valued” through the end of 2017. T
Therefore, as long as a Dallas investor watches the market closely for signs of softening and is careful to prepare multiple exit strategies for each deal, that individual should be able to turn a nice real estate investing profit in the Dallas market for some time to come. It would be a shame to forego thriving in such a dynamic and diverse housing market out of fear of a bubble that is likely to materialize slowly or perhaps not at all.
The biggest factor that will work against you personally, however, isn’t the market, it’s stalling. Stalling can cause you to lose the equity you thought you had in your home or get your priced out of the neighborhood you thought you get into when mortgage rates rise. Knowing your target time-frame is key to your success as a home buyer, seller or investor.
That’s a personal conversation, however, and one we’d be happy to have with you. Contact us to set up a time and learn how timing could save you tens of thousands of dollars.
Search Homes in DFW Area
Referral Info and Special Thanks to: The “Bankrate.com National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison. http://reiwealthmag.com/the- dallas-housing-bubble-fact-fiction-and-reality/ https://www.google.com/search?rlz=1C1CHBF_enUS799US799&q=dallas+housing+market+forecast+2018&sa=X&ved=0ahUKEwj1zd3zjvTbAhUZ24MKHXwhCfEQ1QIItwEoBA https://gordcollins.com/real-estate/us-housi ng-market-crash/
The Dallas Fort-Worth commercial real estate market is hotter than ever.
Investors and business owners are scrambling to get a piece of these much-desired properties, but sometimes even getting information on one can be a hassle. We McCoys know first-hand how that can be and we can help you with your business goals.
You may have a property you’re interested in or maybe you’re looking in a particular area and need help taking your business ideas from paper to reality.
Contact us and let us help you reach your dreams!
Plano real estate is hot hot hot! There’s no doubt about it and if you’re a buyer you need every weapon in your home buying arsenal at your advantage if you’re going to beat the real estate game and win the home of your dreams.
You never know when that perfect house will hit the market so it’s smart to have your home search on the one piece of technology you probably always have with you, your smartphone.
It’s easy to download, easy to use and will keep you on top of the inventory. It will also keep you connected right to us so you don’t have to go scrambling to find our info when you have a question.
Our search feature is easy-to-use app and view beautiful photos that are larger than most apps allow. With a flick of your finger, you can swipe to find the home of your dreams!
The ability to search for homes by drawing on an interactive map.
Location-based display of homes in a given area that matches the consumer’s price range.
Find Area Open Houses
No need to spend all day Friday preparing to search for your open house shopping – you can view LIVE updates on your phone while you’re out looking at neighborhoods. You’ll never miss an open house and there’s no need to try and find a wifi hotspot because the KW app uses your cell phone data, making it easy to find immediate search results on the go!
It’s like having us in your pocket as you search! We’re on the go with you and you can contact us with the click of a button!
Here are some of the national reviews of the app:
“Best app in real estate. I can search for properties all over U.S. and Canada. Awesome! Love that it immediately shows the nearest property without having to click one button.” -KW App Reviewer
“I love how the app brings up properties closest immediately. When I’m using a mobile search it’s because I’m looking for more information about a home I see as I drive by.” -KW App Reviewer
There are municipalities all across the US whose town logos are ‘The City of Champions”. Brockton, Massachusetts and Tampa, Florida are two of them. Other towns are simply named “Champion” such as Champion, Pennsylvania. Plano doesn’t use the word champion in its logo, we are knowns as the ‘City of Excellence”. In 2018 however, Plano has a reason to start rethinking its slogan. There is an argument that the word ‘champion’ could be added to it. We might end up with something like: “The Champion City of Excellence” or even the “City of Champion Excellence”.
It’s a work in progress.
Why would we even think of changing our slogan to something so braggy or bring on the suggestion of this grand name change? How about the fact that Plano has made so many “Top City” lists (in good ways, mind you) that we’re not even sure we have found them all for this post. The more research we do, the more accolades we come across!
Here’s a quick list of the national rankings:
-Forbes Magazine 3rd in job growth
-Milken Institute 3rd in Best places to live in overal
-Wallet Hub – 6th in the Best cities to find work
-Wallet Hub – 4th Most Affordable Housing
-Wallet Hub – 3rd Highest Median Income
-Niche reviews 3rd Best Cities to Raise a Family in America
-Niche reviews 9th Cities with the Best Public Schools in America
Those are the national ranks, Plano has some pretty impressive ranks in Texas as well citing that Plano is growing up to be a powerhouse of a city. It’s no surprise though, with the influx of major headquarters moving to Plano, such as Toyota, FedEx and Sprinkles Cupcakes.
The developments of Legacy West and the Frisco Star are major players in the emergence of what is bringing the future to Plano at a very fast pace. These companies and many, many more have created an incredible amount of jobs and promise to bring even more jobs in the future to the area. The new Legacy Central, a mixed-use development where Samsung Electronics America Inc. has signed a lease for 216,000 square feet at 6625 Declaration Avenue in Plano. The firm will relocate its Richardson headquarters to fully occupy Building 4 at the Legacy Central campus, with a planned move-in date of February 2019. As development continues at Legacy Central, plans for new high rise apartments are also in the works.
Plano is experiencing a boom that is not seen across the country, except in select areas. We’re in a unique position right now. We’re not only experiencing the influx of businesses but the people that come with along them. The population growth that comes with this influx of corporate workers and increases in job positions breeds a growth in new cultures and experiences to an already strong and well-held-together foundation. It helps to create a melting pot that puts Plano on the map as a global force.
The role of real estate
One major area that has to be watched is housing. We need enough homes, condominiums, and apartments to handle the population growth, as well as the coordinating infrastructure i.e. hospitals, police, schools, etc.
Here is an example of homes built in 2018 and currently on the market. New builds are important because they speak to how a city handles the consumption of open spaces to build homes. Is it being done in a way a way that allows Plano to retain it’s beautiful green spaces while serving its residents need for housing? It seems so far so good. When you look at these homes, there is still plenty of yard space, space between homes and park area surrounding many of the lots. Plano residents aren’t being sold the postage stamp sized lots that big cities often see.
When it comes to land for sale – the market isn’t as flush but there are still some listings. Here’s a sampling of land for sale in Plano:
Lots and Land:
Housing will definitely need to keep up and up may be the direction it will go as condos and apartments answer the millennial call for a space of their own. There’s a combination of both in nearly all the new mixed-use developments that are happening. It makes sense as well. There is a beauty in having everything available where you live – your job, the stores you use, the restaurants where you eat, your gym, and even where you go to enjoy entertainment. Living within the borders of Legacy West, for instance, promises a lifestyle that mixes a sought-after address and convenient living. Below are some of the properties available at the Legacy West development. We’re happy to note here, as many of our dedicated readers know, we sold our home and built from concept at Legacy West. You can begin to read ‘Our Journey” here.
Available near Legacy West
Taking a tall chunk of the airspace, a building that really hasn’t been seen in this form has made its way into Plano – is the luxury high-rise. These beautiful apartments afford their residents all the convenience of owning a home, with less maintenance and at places like the Windrose Apartments and the state of the art high rise LVL-29 at Legacy West, the residents here will also have the most incredible view of the area as well!
Mayor LaRosiliere calls Plano the ‘center of the universe’ and foresees the trend we’re on continuing as long as we remain steady in our commitment to its future as citizens. It seems Plano is set to become Dallas’ brilliant sister as a global force with a home-town feel and as long as our city is responsive, flexible and grows with it, our city will continue to dominate many of the ‘best of’ categories for years to come.
More Plano Homes for Sale/Residential:
Commercial Real Estate for Sale:
Thanks to: https://www.forbes.com/sites/samanthasharf/2018/02/28/full-list-americas-fastest-growing-cities-2018/ https://www.milkeninstitute.org/publications/view/897 https://www.niche.com/places-to-live/search/safest-cities/ https://www.niche.com/places-to-live/search/best-cities-for-families/