Dallas-Fort Worth has some of the most undervalued homes in the country,

according to a new report.

It is easy to loose sight of the forest when you are looking to closely at a single tree.  Looking at the big picture is simple if you know how and the message it is sending it clear.

This is the good news: The residential real estate market in Dallas hit bottom in the first quarter of 2009 and a reasonably strong recovery is now under way.

Here is the bad news: not all markets were created equal and prices may take a considerable amount of time to return to their peak.

As you can see in the above graph, Coppell has done rather well.  They have actually seen price appreciation since 2007 while Mesquite has seen material depreciation over the same time period.  The "richer" parts of town North Dallas and Highland Park have been yo-yos but their current prices are near where they were back in 2007 meaning their prices should feel relatively flat.

So what does it all mean?  : That all real estate is local and that you cannot treat one market the same as another.  I believe almost everyone reading this is probably thinking, "well, that's obvious".  And, it is.  Here is what is not obvious, "how do you define 'each market'... and when should you buy, when should you sell, and when should you hold 'em?  This is the real trick.

So what is the answer? : experience.  A good realtor can make the difference between buying at the top of the market and selling at the bottom.  We can help you find a good realtor.  As you search for homes on HomeProdigy, we display the top realtors for the type of home you want in the part of town you want.  We use the local real estate association's home sales records (the MLS) to determine which agents are buying and selling the most.  Get started by clicking here.

Over the coming months.  We will be releasning a series of articles that talks about each section of town in more detail, so keep tuned in....

Happy House Hunting.

When you are buying a home there is a whole world of terms, concepts, procedures, and values that can help you or hurt you.  As one reatlor phrased it, "it is not an intellignce issue... it's an experience issue".

Here were his examples of issues that can commonly get overlooked when people think about selling their home:

1. Which title companies close on time regularly or more importantly which don't.
2. Which lenders typically close on time.
3. Do you know the management at the lenders to call on if the going gets tough.
4. How can you tell if a lender is moving the loan along in a timely manner?
5. What do you know about mineral rights?
6. How do you best insure your safety during showings?
7. How easy is it to show your home.....ie can you show while at work? Can you show while you are out of town? Will the buyers or realtors wait for you to call them back?
8. Are you an expert at the contract forms.
9. What happens if the buyer can't close on time.....what tools do you have get the buyer to close quicker or even figure out if they really can close.
10. What happens if they can't close and they want to dispute the earnest money?
11. What are the required disclosures?

My best advice.  When you are ready to buy or sell.  Find a top realtor that knows your market and has experience buying and selling your type of home.  Do you want help find a top realtor?  We can help.  Click here to learn more.

Want to find a top realtor.... start here.

Happy House Hunting.

Answers to Frequently Asked Questions

Buying a house is a big investment and there is a whole language that your realtor speaks to get the job done.  Below is a crash course in the concepts that all first time home buyers need to know and a refresher for those who have bought and sold before.

What is a buyer's representation agreement:

A buyer's representation agreement is signed by the buyer(s) and the buyer's real estate agent.  The agreement establishes the fact that the agent will work on behalf of the buyer, and will represent the buyer in the purchase of property.  The agreement specifies the agent's role and duties, and the agent's fiduciary responsibility to the buyer.

What is the difference between "pre-qualified" and "pre-approved"?

If you are "pre-qualified" you have determined, with a loan officer, how much you can afford to spend based on the down payment, your debts, and the amount the Mortgage Company will approve for your mortgage.  Being "pre-qualified" is only a determination of your probable credit.  If you are "pre-approved", your credit, employment and funds have been verified and approved by the lender.  You will need to get pre-qualified with your lender before you begin to actively work with your Realtor.  You should get pre-approved for your financing prior to starting your new home search.

What are closing costs?

Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate.  For buyers, they are usually about 3-5% of the total sales price of a property.  Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, origination fees, tax registration and title insurance premium.

What is a point?

One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. 

What is earnest money?

When you execute a contract to purchase a home, you will have to provide an earnest money deposit.  You will give the check for your earnest money to your Realtor, and the Realtor will give it to the title company.  The title company will cash the check, and your earnest money will be held by the title company until the day that the sale closes.  Typically, earnest money is about 1% of the sales price.  You are given credit for your earnest money at closing,which reduces your total amount due at closing.

What is title insurance?

Title insurance protects the named insured person(s) against loss because of defects, liens, encumbrances, adverse claims or other matters relating to the property that were not shown or disclosed to the new owner at the time of purchase.  Title insurance assures that buyers are obtaining a "clear" title.


What is the termination option and what is the option fee?

The termination option is agreed to in the purchase contract.  Both parties agree to a dollar amount (the termination fee) that the buyer will pay to the seller upon execution of the   purchase contract.  The fee buys the right for the buyer to terminate the contract for any reason during the termination option period.  If the buyer terminates the purchase contract during the option period, the seller retains the termination fee.  If the buyer goes through with the purchase, then the termination fee is credited to the buyer at closing.   The buyer should have a general property inspection, a wood-destroying insect inspection, and, if needed, a structural engineer inspection of the property performed during the option period.

What is the difference between a home inspection and a home appraisal?

Your lender will require that an appraisal be done on the home you are purchasing.  The appraisal is done by a licensed appraiser who provides a written report stating his/her opinion of the market value of the home.  In most cases, the lender will set up the appraisal with an appraiser that frequently does work for that lender.  Residential appraisals cost about $350.  Your lender will either require you to pay for the appraisal up front, or the cost of the appraisal will be added in to your closing costs.
A home inspection must be performed on a home before it is sold.  Once an executed contract is in place, the home inspection is done during the option/termination period.  Master Realtors will provide you with a list of inspectors, and you can choose one of them or any other licensed inspector.  The inspector checks over the home thoroughly, and provides a written report that identifies any needed repairs and states the condition of the main physical components and systems of the home (such as plumbing, electrical, heating and cooling systems, roof, etc.).   The inspector will issue a second report concerning wood-destroying insects and whether there are signs of past or previous infestations or treatments, or any conditions that are conducive to termites. The buyer pays for the inspection at the time it is performed.  The cost is about $200 to $400 and varies  depending on the size of the home and systems to be checked.

For more detailed questions, This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will help you.