The Waiting Game

There is so much activity and rushing around the first 10 days you have a contract on a house that after the option period, you are left saying "What next?"
After the option period you are now "pending". That basically means that all that's left is the appraisal. And when I saw all that's left, that's a really big step. We've seen trends recently because of the mortgage fraud and subprime fallout that homes are getting scrutinzed more. What does this mean for you? Let's say you contracted your future abode for $250,000 but the appraisal only comes in at $245,000. The lender is not going to approve this loan because the home isn't worth what the lender is going to give the borrower. What ends up happening is you have to renegotiate the contract or probably lose the deal all together. There have been instances where the seller believe that his or her is worth more than the silly appraiser thinks and absolutely will not negotiate.
Many times, recently, most of the appraisers are just appraising the house at what the contract is. I find this interesting for two reasons. The first is that it seems to me that most appraisers are just taking the contract price because that's what the buyer is willing to pay for it. It is a personal value to that buyer. The second is they may be just covering their rear-ends since the buyer is putting that value on it so why question it!? I had a listing where the appraisal was scheduled and then cancelled. We questioned why this happened. It was a desktop appraisal so he never even came out to the house. It appraised for the contract price.

The Next Step

Yippee! You found the house you love, wrote an offer, negotiated and you are now in the "option period". During that 7-10 day period, the most important thing to do is get a third party inspection. I like to get my inspections completed the second or third day of the option period. I will elaborate on that later. Some people have an inspector they know through past experience or I can recommend the person for the job. Not only do you want a property inspection from a very anal and precise inspector, but you also want a wood destroying insect report. This is usually called a termite inspection, but there are also other types of nasty bugs that can ruin a residence like carpenter ants. Inspections will usually run from $250-500 and up, especially if there is a pool involved.
Once the inspection is completed, the hardest part comes: the repair request. From my experience, there are two types of buyers: ones that nit-pick the little stuff and those that focus on the big stuff. I understand buyers want perfection. Unfortunately, perfection isn't real in real estate. Even brand new homes have doors that stick or a crooked face plate. Unless it's electrical, heating, air conditioning, foundation, roof or major plumbing, it can be handled for a few hundred dollars and a call to a local handyman. Is a loose hinge and a couple of GFCI plugs REALLY worth losing the house you love? Oh, and the reason I like having the inspections done ASAP is because if the AC isn't cooling properly, there needs to be some extra time built in to get a professional out to the house to clearly make a diagnosis. I don't like to be rushed and with this is a major financial purchase, I am sure you don't want to be rushed either!
What happens next? Tune in next time!

What Does It Mean?

For most people, buying or selling a house isn't something you do every year. OK, so there are investors, those that relocate, or just flat out like to move. Like to move? I hate to move. I haven't been able to find my portable round cake pan and cover since we moved into our home four years ago. I think it's still packed in a box in the garage.
The average American family moves every FIVE years, which is two years sooner than the national average of seven years not too long ago. With that being said, many of you may not remember the process that buying or selling actually is. Being a legal transaction, there are many steps that must take place. Forget to order this or enter that, and your closing is suddenly delayed.
Over the next few days, I plan to discuss things that occur once we (listing and buyer's agent) have an executed contract. Oh, the executed contract is when both parties come to agree on all terms in that said contract and have signed off on it.
Once the contract has been agreed to, we enter into the option period. First time homebuyers and out-of-state buyers don't usually know what this is. For a nominal fee of usually $50-100, you, the buyer have the unrestricted right to back out during a set number of days, for any reason at all. Some reasons to back out are inspection items, financing terms, or you just flat out changed your mind. As the buyer, you lose that money for the right to back out for no reason, but better $100 than a large loan on a home that you realize you hate.
With that being said, here is my Tip of the Day: If you first see the home of your dreams at 10 am on a Monday, make sure that you drive back at 5 pm on a Wednesday to see what kind of traffic, public transportation, neighbors and parking is going on at the property. Knowing that no one parks in their garage after work could be a huge pet peeve of yours. Find that out during the option period!
Next time, I will discuss some other aspects of the contract period. Have a good one!

Back in the Saddle

I am sorry to say it's been too long. Life gets in the way, work gets hectic and I think that sometimes I just don't have anything to say. Is that really possible? Me, nothing to say? I think that I have been hanging around my three-year old too much and the last thing I want to do after 10 hours of straight talking, is continue "talking".
So, what's been going on with me? David and I recently closed on our second investment home. I have represented the buyer on five foreclosures and each time, it's been a different bank and transaction. It's hard to ever give good, professional advice when dealing with banks and mortgage companies. Some will allow to negotiate repairs, others won't. Some will pay for a home warranty. Others won't. We dealt with a seller who would pay for a warranty but not any repairs after the five day option period.
I hope all is well with you...those of you who still actually visit and read my blog!

Investment Property

We are going down the road of purchasing another investment property. It's one of those "great deals" you just can't pass up!
I have to say, it's such a different position to be in. I am now on the side of being a buyer, not just representing one. Every bank is different in the handling of a foreclosure so it's hard to say what will happen in negotiations. I will keep you posted!

Innocent Victims of Foreclosure

I have a soft heart for dogs. It saddens me when I see a lost dog on the street and if I have the time, I try to help find the owner. I recently did that with "Twinkle" who was wandering the streets of my neighborhood. Luckily, Twinkle hadn't wandered too far from home and she was reunited after an hour or so.

I recently read an article in the Dallas Morning News that made me want to jump in the car and rescue more than one dog. As families can't afford to stay in their homes, many are forced to give up their companions. Operation Kindness is a no-kill shelter in Carrollton that has seen a large increase in animals being dropped off and a quarter of them are due to foreclosure and eviction.

Many North Texas shelters are also seeing a decrease in animal adoptions, partially due to rising costs of everything and maybe pets are considered a luxury. Overcrowding at shelters, in general, is nothing new. There was a feature on Oprah several months ago about the Fort Worth Animal Shelter and it mentioned that anywhere between 20-40 animals were euthanized A DAY!

I remember feeling so sad about all of the pets that were lost, abandoned or found dead after Hurricane Katrina. Animals are almost defenseless and can't do much in these types of situations. We can help ourselves,but what about our pets?

My husband and I rescued our lab-mutt, Peanut, from the SPCA five years ago. She's an absolute sweetheart and when we decide to get another dog, it will be from a shelter. If you are looking for a pet to love, check out your local animal shelter before anything else! We may not be able to help all families save their home, but maybe we can save Fido!

Great one story home with pool!

Maybe you have a friend or family member looking for a home that is quaint, "homey" and has a wonderful pool! This is it!
Charming, one story in the heart of Lewisville with quick and easy access to the airport, shopping and highways is the one you've been waiting for! If you are looking for a pristine heated pool with attached spa, private backyard with mature landscaping to go along with a great home, call me at 972-740-4108. This three bedroom, two bathroom home has a large open living room with fireplace and pleasant dining room. The large kitchen overlooks the pool and has an abundance of countertop and cabinet space. Natural light graces this workspace as does a nice size breakfast nook with built in window seats. The master bathroom has dual vanities, large shower and huge closet with seasonal storage. The back patio is cool and covered on the back and the side offering a sanctuary with an eight foot fence and lush trees and plants.