Dallas Real Estate and Short Sale Blog

There is an alarming trend among many buyers of real estate these days. We're seeing more and more people who want to "place bids" rather than to "make offers" on a home.

Real estate is not eBay. While some real estate is sold in an auction format, the vast majority of sales are not. I realize that in some markets buyers are in full control given the volume of short sales and foreclosures, but in many places the markets are balanced and in some places there are seller's markets.

In the north Dallas suburbs, there is a severe shortage of good properties under $150k. Last weekend I was out with some first time homebuyers who had been looking for weeks. We found a home the first day it was on the market. By day 3 there were multiple offers and my clients actually had to offer more than list price in order to secure the contract. It's a seller's market for good homes under $150k.

I've seen buyers totally upset when their low "bid" was not countered while a more reasonable offer was negotiated and accepted. That's not to say that a lower offer is not appropriate at times such as with an overpriced property. However, throwing in a bid at 70 percent of market value on a hot property is usually a waste time.

Many investors use this approach but don't really care if hundreds are rejected while they look for the one seller who will sell at that price. The average home buyer will quickly become frustrated using this method.

Many of our younger buyers have grown up bidding online and to some extent bidding has become part of America's landscape. While I suspect this trend will continue in consumer goods, I don't think it will last in the housing market and certainly does not apply to seller's markets.

My advice is to know what kind of market you're looking in and use an appropriate strategy rather than always going in with a "bidding" strategy.

Photo licensed from iStockPhoto

Originally posted at http://www.thebranchteam.com/wordpress/2012/01/25/real-estate-is-not-ebay/

I found this question in my site logs. Let's clear up some terms.

Each state is responsible for licensing agents and brokers. Each has its own set of requirements and rules. For example, the Texas Real Estate Commission licenses and regulates salespersons (agents) and brokers within the State of Texas.

REALTORs® are members of the National Association of REALTORs® (NAR). NAR is a membership trade organization rather than a licensing agency.

A number of years ago NAR allowed Designated REALTORs® to establish Limited Function Referral Only (LFRO) Brokerages. LFROs have to be a separate business entity. NAR did not want brokers to commingle their "regular" agents with their LFRO agents. LFROs, like Referral Agents of Texas LLC, are established under NAR rules. Since it is also a licensed broker within the State of Texas, it can sponsor agents. Why is this important? Agents can only receive compensation through their sponsoring broker.

As far as the state is concerned LFRO agents are active agents sponsored by a Texas broker. What limits the agent's activities is the Independent Contractor Agreement between the agent and the broker. This agreement specifically limits the agent's actions to generating referrals.

A few states may have different "classes" of licenses with include referral-only agents. When in doubt check with your state regulatory agency for details.

Originally posted at http://www.referralagentsoftexas.com/2012/01/19/can-a-realtor-license-be-in-referral-only-status/

"Are referral fees legal in Texas?" We seem to get this question all the time. There are two kinds of referrals. One comes from unlicensed people and the other from licensees.

Referrals From Unlicensed People

The Texas Administrative Code (TAC) 535.20 limits payment to non-licensed people to $50. Some people will try to skirt the law by purchasing gift cards or paying directly on behalf of the referral source. The rule clearly states, "the term valuable consideration includes but is not limited to money, gifts of merchandise having a retail value greater than $50, rent bonuses and discounts."

Note that it's not illegal for the consumer to accept the payment but the payment of consideration exceeding the amounts specified in 535.30 is ground for a licensee to have their license suspended or revoked.

Referrals From Licensees

The Texas Occupations Code 1101.651 allows brokers to share fees and commissions with salespersons (agents) they sponsor and other brokers. TAC 535.131 clarifies this to include the sharing of fees and commissions with out of state and foreign brokers.

The bottom line is that referral fees paid to non-licensees cannot exceed $50 in cash, goods, services, rebates, etc. Referral fees paid to other brokers are acceptable and subject to the agreement between the brokers.

Photo licensed from iStockPhoto

Originally posted at http://www.referralagentsoftexas.com/2012/01/16/are-referral-fees-legal-in-texas/

New Year’s Day 2012 was cool and crisp and snow-covered as we wound our way to the top of the mountain 18 miles outside of Santa Fe, New Mexico. Above 12,000 feet the air is very thin and I could feel myself starting to breathe heavy. When you’re used to being near sea level, this increase in altitude has a definite impact.

I was excited to try my hand at skiing again, but since it had been 25 years, ski school was a must. After half a day, I was ready to head downhill, at least a small hill. Most of the skills came back just like riding a bike.

The view from the chair lift was beautiful. Many of the snow covered trees were still green and the fresh snow glistened in the sunshine. There wasn’t a cloud in the sky and the journey to the bottom was invigorating. I can’t think of a better way to ring in the New Year than pointing the skis downhill and feeling the cold breeze on your face. The Ski Santa Fe facility was near perfect with short lift lines, reasonable prices, a nice cafeteria, a great ski and snowboarding school, and breathtaking scenery.

The best part was sharing the experience with my husband and close friends.

I can’t wait to visit again!

Photos annd Video Copyright 2012 - Tom Branch

Oriignally posted at http://www.thebranchteam.com/wordpress/2012/01/13/ringing-in-the-new-year-in-santa-fes-majestic-mountains/

Lately, there have been a few online postings that referral fees should be illegal because they add cost to the consumer. I’ve read all the arguments, yet I’m not sure how they arrive at that conclusion.

I could see the argument, if I were to raise my cost to the consumer on transactions where I have agreed to pay a referral fee. While this may happen from time to time, I believe the vast majority of brokers see it as the cost of doing business. I either pay to advertise, farm, or some other means of acquiring new clients or I pay a referral fee to an out of area broker who has a client needing to buy or sell a property in my area.

While I don’t work relocation business, relocation companies collect referral fees from brokers who accept their relocation clients. Why is a broker-to-broker referral any different?

The bottom line is that unless brokers raise prices on transactions involving a referral fee, there is no additional cost to the consumer.

Photo: Licensed from iStockPhoto

Originally posted at http://www.referralagentsoftexas.com/2012/01/09/do-referral-fees-add-cost-to-the-consumer/

Want to know what mobile users see when they visit your site? Pick up your smart phone, open your browser, and type in your URL. If you do not have a mobile-ready site you're in for a huge surprise!

With a large percentage of the market moving onto mobile devices, you simply must have a mobile version of your website these days. Mobile website design is completely different from full-size browsers. There are severe limitations in screen size and bandwidth capabilities of these devices that must be considered.

My suggestion is to keep it simple! Mobile users want easy access to information. For real estate agents, that means easy access to MLS searches and contact information. We also include a link to a mobile version of our blog.

If your site is running on Wordpress, there are a number of plugins available that will detect mobile devices and send users to the mobile verison of the site. One of our Wordpress-based sites uses Plugin Buddy Mobile to create a mobile version of the site. Other than creating and uploading a mobile banner, this was a 10 minute set up. The limitation for real estate agents is access to a mobile-ready IDX solution.

We chose to develop a stand-alone mobile website using a simple PHP script to detect mobile users and send them to the mobile website. This choice was driven by our access to the RE/MAX of Texas mobile-ready property search. While we could have purchased another mobile IDX solution, the cost is prohibitive since not only do we have to pay the IDX provider, we also have to pay our MLS another monthly fee to feed the data to the provider.

You may also want to register a .mobi domain name and set up an m. subdomain for your websites. Mobile users will often try using the .mobi top level domain (www.thebranchteam.mobi) or m. subdomain (m.thebranchteam.com) when they're looking for a mobile version of your website.

Mobile computing is not only here to stay, it's going to become an even larger percentage of your web traffic. Is your website mobile friendly?

Originally posted at http://www.thebranchteam.com/wordpress/2012/01/07/is-your-website-mobile-friendly/

Trust. There’s a word we hear almost all the time in today’s business environment. But it’s more than a word. It’s the basis for long-term personal and business relationships.

One of my favorite movie quotes on the subject is when Erin Brockovich is talking to Ed Masry about her bonus at the end of the movie. Erin says, “Trust? You want me to trust you? Don't use big words you don't understand.”

Trust in never inherent although a certain level may be associated with a profession or brand. Many people will give a certain level of trust to their doctor or lawyer based upon their years of education, training, and experience. Larger brands are often more trusted than smaller operations. But in the end, trust has to be earned.

I remember originating mortgages several years ago. I worked for a small brokerage firm. As I would initially meet with people, they would be standoffish and apprehensive. As we worked on their loan application and processing, we would get to know each other better. There was always a definite point in time where I knew I had earned their trust. How did I know? They would stop reading the various forms and would simply sign them.

At that point I could have had them sign over their house and they would have done it. I never violated the trust I earned. Why? Because trust is a fragile thing though. Violate that trust once and you’ll never get it back again.

Mary Alice from Desperate Housewives said, “Trust is a fragile thing. Once earned, it affords us tremendous freedom. But once trust is lost, it can be impossible to recover. Of course the truth is, we never know who we can trust. Those we’re closest to can betray us, and total strangers can come to our rescue…”

Trust means doing the right thing even when it’s not profitable. Trust means admitting mistakes. “I’m sorry” and “Let’s see if we can fix this” are what great businesses are all about. We’re all human and we make mistakes. Show me someone who has never failed and I’ll show you someone who has not yet reached their full potential.

Trust is not a tagline or a marketing strategy. Trust should be a core value of any successful business.

This post is a submission to the ActiveRain / Adobe EchoSign Trust Contest. I could possibly win a prize. You can find out about the contest by clicking here.

Originally posted at http://www.thebranchteam.com/wordpress/2012/01/06/its-all-about-trust/

Fairview TX is a small bedroom community located east of US 75 at Stacy Road. According to the Fairview Texas Website:

Fairview offers the warmth of a small town and the convenience of a big city. Located north of Dallas at U.S. Highway 75 and Stacy Road, Fairview is an alternative to the North Texas communities that are known for their cookie-cutter sub- divisions. The majority of Fairview is zoned for residential lots that are one acre or larger, with a few areas reserved for smaller home sites.

The housing market is Fairview is very stable. This month we'll present median sales price, days on market, and months supply of housing charts. Click on any chart for a larger view.

Median Sales Price

The median sales price in Fairview has recovered nicely from the low in the summer of 2009. Zoned to Lovejoy ISD and boasting estate sized lots, Fairview continues to attract buyers. The opening of the Shops at Fairview brought upscale shopping, dining, and entertainment to Fairview. In November 201 the median sales price was $279,995 and it has risen to $307,900--a gain of 10 percent.

Days on Market

The Days on Market in Fairview remain stable at about 118 days. While this is slightly over the average in the local area, 118 days on market is still very good considering the higher price points in Fairview.

Months Supply of Housing

The months supply of housing is slightly over 7.9 months. The National Association of REALTORs states that a 6 month supply of housing is a stable market, supplies under 6 months are a seller's market, and supplies over 6 months is a buyers market. While Fairview is slightly over 6 months, I still believe the market is balanced given the higher price points in the area. Fairview had an 8.3 month supply of housing in November 2010. It sits at 7.9 months now--a decrease of 4.2 percent.

See Recent Sales in Fairview TX | Fairview TX Homes for Sale

Feel free to contact us if you have questions or need any additonal information.

Photo: Copyright 2011 - Tom Branch | Source: NTREIS on December 30, 2011

Originally posted at http://www.thebranchteam.com/wordpress/2011/12/31/fairview-tx-market-report-november-2011/

Located in the shadow of the Baylor Medical Center at Lake Forest and US 380, this never-lived-in DR Horton home is ready for tenants. There are 4 bedrooms, 2.1 baths, and 2168 square feet of living space per the builder's plan. Click on any photo for a larger view.

The open kitchen has plenty of storage space, dark cabinets, black appliances and decorative lighting.

The large living has soaring ceilings and a wall of windows overlooking the fenced backyard and patio. The home is wired for a flat-panel television above the wood-burning fire place. The staircase has oak handrails and cast iron balusters.

The master suite sits at the rear of the house. The master bath has a jetted tub, separate shower, dual vanities, and a walk-in closet.

Imagine yourself sitting on the balcony in the morning enjoying a hot cup of coffee enjoying the view of the greenbelt.

The home is within walking distance to the new McKinney Baylor Medical Center.

Current status, pricing, details, photos and a virtual tour

Please contact us at 214-227-6626 for more information or to schedule a private showing of this home.

Photos and Video: Copyright 2011 Imaged2Sell

Originally posted at http://www.thebranchteam.com/wordpress/2011/12/30/mckinney-tx-home-for-lease-2232-canyon-point/

Allen Texas, located just north of Dallas, is a great little city and a wonderful place to live. The city continues to grow with plenty of developement--both residential and commercial.

The Allen housing market has been relatively stable. This month we'll take a look at Median Sales Price, Days on Market, and Months Supply of Housing.

Median Sales Price

The Median Sales Price, which had been on the rise for almost a year, retreated some over the past few months. It appears to have stabilkized over the past month. Allen started the year at $196,475 and is now at $201,000. While .5 percent is not a huge increase, it is stable.

Days on Market

Days on Market has been on the rise for the past year yet remains below 90 days and below 2009 and 2010 levels. Allen started at 77 days on market and has risen to 82 days on market.

Months Supply of Housing

The Months Supply of Housing is very good at 4.4 months of inventory currently on the market. The National Association of REALTORS® suggests that a 6-month supply of housing is a balanced market. Supplies over 6 months indicate a buyer's market and supplies less than 6 months indicate a seller market. Our experience is that homes that show well and are priced right continue to sell.

Recent Sales in Allen Texas | Homes for Sale in Allen Texas

Please contact us at 214-227-6626 if you have any questions or want more information.

Source: NTREIS on December 29, 2011 | Photo: Copyright 2011 Tom Branch

Originally posted at http://www.thebranchteam.com/wordpress/2011/12/30/allen-tx-market-report-november-2011/