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Monday, 30 October 2006
BROKERS MAKE YOU BROKE!
 
When I think about all the conversations I have had the last few years on defending Real Estate Commissions not only with clients, customers, agents, other brokers and other people wanting to be REALTORS, I can't help but think nobody really understands commission or the breakdown given to the broker, because it is all different and many models of business for brokers to follow such as:
1. Full Service
2. Flat Fee Service
3. Partial Service
4. No Service
And BTW, there is no ryhme or reason or guarantee, all have variations and you need to shop it to find out what is right for you.
When a consumer makes a deal with an agent to sell their home usually it is a percentage of the list price, but do you know how that is broken down, most agents won't even go there. So here is a brief explanation: the broker on each side of the deal usually gets 30% to 50% of the take, the agent still has taxes and marketing expenses on top of that and many agents ask for nothing up front and incur all the risk up front.
The Realtor is the one doing all the work and the broker is really the middle man taking a huge cut!
It is not unusual for agents to pay their broker $20,000 to $60,000 or more a year, a high volume agent pay much more.
With the whole commission structure being questioned in real estate, that is why the discount models have succeeded, people want a change and options. So, Realtors must be Flexible and creative in new ways to service the future of Real Estate. Make sure your Realtor will accommodate you and ask a lot of questions.
The Real Estate Transaction is a very complicated process and deserves a trusted advisor that will work on your behalf.
The next time you discuss the commission issue with an agent, remember who is doing the work, the broker is the one that needs to take the CUT! He is the Middle Man.
This is a very complicated issue and different brokers do different things so this is not a dig on all brokers, but they need to participate in the adjustments to commissions that agents are making.
This is what makes real estate interesting and the whole commission debate up for grabs.
You will see new creative models on how to sell and buy property with less broker participation, I believe.
We believe in a new and improved fairness for all, and implement some of these new strategies ourselves.
After all, it is a consumer driven business and brokers need to adjust their business models to be fair to their agents that make them a lot of $$$$.
I will be discussing more of this in the future....stay tuned.
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Sunday, 29 October 2006
Your Contract Needs to be Executed & Enforceable!
As Real Estate Agents....
we deal with contracts on a daily basis and when you do it year after year you really learn alot about clients, lawyers and other real estate agents. Contracts are always changing and our state real estate commission writes our promulgated forms (written by Texas and appointed lawyers for the safety of the public). Since these forms are always being rewritten, it is a real estate agents duty to stay informed so we can protect our clients with a fiduciary responsibility.
Some forms are good for buyers and some are good for sellers and not all need to be used for certain things, for example the Mandatory Home Owners Association form does not need to be used, but most agents go ahead and use it for buyers...Guess What! This form is not good for SELLERS, due to recent changes made to the form. There are other ways to request this information from the seller. An experienced and good agent will know how.
The one thing we see when working some contracts between a buyer & seller, is that the parties are in such a hurry to complete the transaction that not everything on the contract is complete, sometime blanks (for timelines) on promulgated forms are not filled in properly, signatures and initials missing. Your Realtor should be checking for full & correct execution of a contract. If everyone agrees to agree and contract goes to escrow you do have an executed contract and the timelime starts, but if initials are not complete on any page of the contract, it is not enforceable, meaning if buyer decides not to buy or your have to go the mediation or asking to get the buyers earnest money for taking you home off the market, you will not have a valid contract that protects you financially.
Yes...something as simple as not having both initials signed off on on a contract means it is not enforceable. Make sure your agent is detailed and protects you from this small but powerful detail.
We stay on top of all contract changes made by our state by attending mandatory continuing education classes and attending contract update classes frequently. We know CONTRACTS!
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Friday, 27 October 2006
Celebrities who Live or have Lived in Plano....
We are native Dallasites and built our custom home in Plano 15 years ago, when there was still vacant land, coyotes and not much traffic.
We used to see Deion Sanders jog up and down Park Blvd during his Dallas Hey Day with the Dallas Cowboys! He lived in Willow Bend Country in a huge sprawling estate and was very visible. I was not surprised to see his name of the notable resident list from Wikipedia, however I found a few others that were interesting. Plano has their share of media darlings that chose to live here for the luxury lifestyle and close proximity to Dallas. Deion now lives in Prosper in a 9000 sq ft. Mediterranean Masterpiece.
Here are a few others:
Wednesday, 25 October 2006
5 Myth Understandings about the Way You Think About Investing...
There has been an extraordinary amount of investment activity of late and all over the country. We work with many investors at all levels, beginning with one house or duplex to buying apt./condo buildings to raw land development. Each investment is different from one another and there are many different strategies to consider. We have built a large network of related industries that help you and us with each deal, so you make an excellent investment.
When someone calls us or is referred to us for investment purchases, we qualify what exactly your long and short term goals are in the process. These are 5 Myths that we come across frequently to why people do not take the next step to financial wealth. Here they are:
1. Investing is Complicated - The truth is, investing is only as complicated as you make it. There is a process and a method to the madness, if you follow the right order it is painless. Let an experienced investment Realtor help you and you will be amazed at the ease.
2. The Best Investments Require Knowledge Most People don't have - The truth is the best investments will always be in areas you can or already understand. What you set up is certain criteria for investing and you stay within those written guidelines. It is easy to qualify properties this way, either they fit the mold or don't. Use a Realtor that can give you a selection of criteria goals for investment and area expertise.
3. Investing is Risky- I'll lose my Money - The truth is by definition, investing, is not risky. Investing is to commit money or capital to gain financial return. If you follow sound business principles and models you will not go wrong, it takes the risk out. Always, if you buy and hold a property, real estate is forgiving, you have appreciation.
4. Successful Investors are Able to Time the Market - The truth is in successful investing the timing finds you. There are good deals in any market, know what cycle you are in a specific market,
have your criteria goals and let a good Realtor find you the properties and crunch the numbers, you will see if it right for you in any market. Prices have come down here, interest rates are still low, now is a great time to invest in Dallas!
5. All Good Investments are Taken - The truth is every market, in every time, has its share of good investments. Opportunities are always created, if a market is going through transitions, price adjustments are being made, personal situations change. Opportunities are always there, a Realtor that knows their market will be well aware of buying opportunities that are a GREAT deal. Use them!
Don't let these 5 Myths stop you, investing is a business just like any other business and careful consideration needs to be taken with who you do business with. An experienced investment Realtor can help you with every facet and give you some excellent resources for funding your ventures, start now and you will be that much closer to financial wealth and freedom.
There are many goods books out there and one I would recommend is The Millionaire Real Estate Investor, by Gary Keller of Keller Williams Realty.
Also, find a Realtor that has a NETWORK in place and understands the process and numbers. We have an excellent investment network and system set up for you to make a profitable and intelligent decision.
Monday, 23 October 2006
 "What to do if you HOME is NOT selling?"
This market has brought a slow down to real estate activity; compounded by the holiday season growing near, inventories are higher and there is more to choose from for the BUYER. One thing that is already happening is some sellers are taking their properties off the market because of the holidays coming and they do not want to be inconvenienced, so if you leave your home on the market you should have less competition and most company relocations occur in January which could be an excellent time to get your home SOLD! Take advantage of this time.
Are you a person that currently has their home for sale? Are you are worried about not getting any offers?
Then, you must take some kind of action. Did you know the longer your house sits on the market the more difficult it will be to negotiate an acceptable selling price.
Your Selling price is dependent upon 3 things:
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the asking price
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homes condition
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location
You need to look at each factor...
ASKING PRICE:
How did you decide on this? Was it based on what you want or need out of the sale?
Many feel their house is better then others and should not compare to other home comps, this is very unrealistic, your home is only worth what a buyer is willing to pay, regardless of your emotional or financial or personal needs may be.
HOME'S CONDITION:
Is your home as clean as it should be? How about the physical condition of walls, floors, appliances? Too cluttered or over crowed with furniture? This could be holding your sale up.
LOCATION:
You can't do anything about this but adjust your price to reflect the location. Schools will impact buyer demand as well as adjacent homes can either add or detract to your sell. Maybe you are asking too much compared to other homes around you.
ADVICE: Your neighborhood Realtor knows what it takes to sell your home and get the highest possible offer they can, also you should consider all terms of contract as money, not just the sales price. Ask your Realtor to run a NET Sheet so you will know what you are going to walk away with at the table.
Saturday, 21 October 2006
Why are there a B-Zillion For Sale by Owner and Home Listing Sites?
 I have read several blog articles on FSBO and Home Listing sites of late. Being REALTORS® we are also a constant source of leads to these lead generating sites, because we are sold your leads, usually $25 to $30 for information you submitted to the site, most people on the Internet are gathering information for several months before they are even ready to start shopping for a home.
This marketing model is very successful for the shell site that wants your contact info and makes you think
you are actually dealing with a professional. NOT! This is not only for Real Estate Listings, but for the Lending industry and For Sale by Owner.
The For Sale by Owner Sites generally work this way, you get a package to be listed on their site, NO MLS, fees range from $129. to over $3000. A mortgage broker who most likely owns the site will try to qualify leads so he can get them a loan and not necessarily for your home. This is simple lead generation
and definitely puts the buyer is a weird sales scenario. The buyer thinks he is contacting a person about the home but it is really a mortgage company.
Same with listing sites, fill out the form and you don't know who you are going to get. There is more detail to these situations on Transparent RE.com. Thank goodness, there are tech people out there looking for ways to protect us.
The other thing that happens with your contact info is it is probably passed on to affiliations of these main sites for services you do not want or need, then comes the SPAM, you know what I mean...
That is why we use security codes on our site to protect the innocent and if you do do fill out a form it comes directly to us, the REALTORS® and only accommodates your wishes and is totally private and not passed on or sold to anyone.
As far as what listing sites are the best, none of the big boys have every listing, too many different MLS entities to deal with, but it is going to happen, your best best is to use local searches on IDX agent websites like search properties to get an unbiased view of all brokers listings in the metroplex, without the dominant broker showing their listings first.
As Always - Buyer Beware!
Tuesday, 17 October 2006
Another Dell dilemma....
This post is not about real estate in West Plano, this one is a rant on Dell.
Let me preface by saying I have been a good Dell customer for 10 years, desktops, laptops, printers, monitors etc. I have not had any problems until I purchased a 9300 Inspirion in April 05.
Yes...I was part of the battery recall, which I got and replaced, and soon after the replacement my A/C charger, which is the same age as the lap top (NEW), started to beep and get very HOT and the light would turn red.
I have never had an A/C charger go bad and I have alot of electronics, (I even liked DOS way back then)
So....I tried to contact Dell that they might have a another problem with a blow up potential.
Was the new battery not compatible with the charger? That was one question.
Do you think I was able to speak with anyone?
No, because my service tag had expired and I had to pay $50.00 to tell Dell they might have another problem, I was hung up on twice, contacted the battery replacement center, everyone passed me on to another person, finally I got on online chat and was disconnected once because I was getting someone else's chat. Anyway, I finally got in writing that I could have a problem, the solution was to try another A/C charger, but that would cost me about $90. since I don't have one that would fit.
My A/C charger works sometimes, then could go hot and beep so I unplug when away, I think I might be in the connection some place, but not on New equipment!
It made me think how many times people must have tried to warn Dell about their batteries when laptops were exploding across the country. I think I spent about 2 hours trying to talk to Dell, what happened to customer service???? If anyone has experienced a similar thing, let me know. It could save some fires!
Sunday, 15 October 2006
Excellent Entertainment
Last night I had dinner with my sister and after we ate we strolled down to the free concert on Bishop at the Shops at Legacy. Texas evenings this time of year are perfect, clear sky's, comfortable temperatures and very active social activity at Legacy Town Center. This urban center in West Plano (some call it a fake downtown) but this concept is some of the best nightlife Dallas has to offer.
Legacy Town Center is built around major corporations that reside in West Plano like: EDS, Frito Lay, J.C.Penneys, Dr. Pepper and this list goes on....
The concept is to work, live, dine, shop at this bustling hub of new and unique restaurants and shops, hotel etc. This summer they started a free outdoor concert series on Thursday, Friday and Saturday evenings and is continuing in the fall. It is sponsored by EDS. Thank you!
Legacy live features local and regional performers who play music from salsa to lounge, Latin jazz to Caribbean steel drum sounds. Great entertainment on pedestrian friendly sidewalks with beautiful fountains, landscaping and an excellent sound system piped in down the street.
You walk down the Bishop, grab a bite at an outdoor cafe, stop in for a cigar, sit on the steps and listen to some great music. All ages congregate here and it is a good time had by all. Legacy live is something for everyone to enjoy and look forward to the entertainment on a weekly basis.
Saturday, 14 October 2006
Wise advice for selling on your own...
 REAL ESTATE involves a lot of law and legal talk and the dotting of i's and crossing of t's and whether REALTORS® want to practice law they indirectly do it quite a bit. Of all the states Texas is the hardest to get and keep your RE license in and your ongoing mandatory schooling is continuous to keep up with all the changes regarding contracts and amendments. Contracts are written in conjunction with a panel of lawyers and the Texas Real Estate Commission (TREC) and almost all contracts are promulugated forms by TREC. Only licensed Realtors may use these forms for a Real Estate transaction. I point this out for those home sellers that we know as FSBO's or For Sale By Owner.
As a FSBO if you have chosen not to utilize the services of a licensed Realtor, you should at least consult with an attorney, but make sure that the attorney has a full understanding of Real Estate law also. While you may assume that a standardized RE contract will protect you, most contracts are very Buyer oriented. Also if you are allowing RE agents to bring Buyers you should not rely on that agent to protect your interest since the agent is representing the Buyer. The key point that you need a lawyer to review your contract as a FSBO SELLER is to ensure that you do not loose the earnest money deposit that the Buyer is putting down.
Thursday, 12 October 2006
Your News - Your Stories - Your Photos
I am always looking for information to help clients who are relocating to the Dallas area or already live here. These neighbors blogs are information about communities that people actually live in.
This is a new blog series by the Dallas Morning News that they are just rolling out. Citizens submit events, stories, photos plus breaking news, weather update, traffic and forums etc. Its a good start to finding community updates in place.
As much as I do not like the morning paper, the DMN website is chalk full of info, unfortunately, Dallas only has one paper so the point of view is biased, but the website is fun once you get past the pop ups. We will keep an eye on these blogs and post useful information in a feed when available.
Wednesday, 11 October 2006
 Finally, the North Texas Information System (NTREIS) posted Sept 06 Sales closed by MLS area for the Dallas-Ft Worth Metroplex, (single family homes) it was reported yesterday; then it magically disappeared until today, did they make a mistake? Anyway, here is a brief summary of areas that we watch closely:
- Plano - sales down 33%, pending down 16%, 4.0 months inventory up 5% from year ago.
- N. Dallas - sales down 13%, pending down 11%, 5.5 months inventory up 12% from a year ago.
- Park Cities - sales down 17%, pending down 31%, 5.9 months inventory up 31% from a year ago.
- Uptown - sales down 46%, pending up 33%, 6.2 months inventory is flat from last year. (condo sales were up 1% from last year with a 9.5 months inventory from last year.)
There was an article today in the Dallas Morning News about new home builders singing the blues, housing starts down 12%.
Quick Take on the Dallas market: Sales have slowed, prices are coming down and inventory is growing, there will be some incredible buys to be had, home builders will be cutting deals to get rid of inventory by years end and use a REALTOR®, because they can get you more incentives than you can on your own, the builders pay commission out of a marketing budget not the building budget! Happy House Shopping!
Sunday, 08 October 2006
These MLS stats are for Sept sales of single family sales of homes for zipcodes 75093 & 75024, the graph shows properties that are: active, expired, sold, pending (waiting to close) and option (under contract in inspection period) avg sq ft., bedrms, list price, $ per sq ft and days on market.
It is a buyers market! pls call or email for a free market anaylsis or buyer info.
| ACT - 456 Properties Found |
|
Square Feet
|
Bedrooms |
Full Baths |
Half Baths |
List Price |
Price per Square Foot |
Days on Market |
| Min |
1244
|
2
|
0
|
0
|
$124,900
|
$64
|
1
|
| Avg |
3910
|
4
|
3
|
0
|
$657,699
|
$168
|
76
|
| Max |
14066
|
6
|
7
|
5
|
$7,900,000
|
$2,086
|
963
|
| EXP - 32 Properties Found |
|
Square Feet
|
Bedrooms |
Full Baths |
Half Baths |
List Price |
Price per Square Foot |
Days on Market |
| Min |
1550
|
3
|
2
|
0
|
$153,000
|
$67
|
54
|
| Avg |
3900
|
4
|
3
|
0
|
$584,143
|
$149
|
158
|
| Max |
6827
|
6
|
5
|
2
|
$2,275,000
|
$333
|
548
|
| SLD - 77 Properties Found |
|
Square Feet
|
Bedrooms |
Full Baths |
Half Baths |
List Price |
Sale Price |
Price per Square Foot |
Days on Market |
| Min |
1513
|
2
|
2
|
0
|
$144,450
|
$149,545
|
$62
|
0
|
| Avg |
2984
|
3
|
2
|
0
|
$360,254
|
$350,839
|
$117
|
43
|
| Max |
6731
|
5
|
5
|
3
|
$2,490,000
|
$2,475,000
|
$367
|
319
|
| PND - 51 Properties Found |
|
Square Feet
|
Bedrooms |
Full Baths |
Half Baths |
List Price |
Price per Square Foot |
Days on Market |
| Min |
1520
|
3
|
2
|
0
|
$159,900
|
$63
|
2
|
| Avg |
3272
|
3
|
2
|
0
|
$429,359
|
$131
|
68
|
| Max |
6237
|
5
|
5
|
3
|
$1,999,900
|
$320
|
353
|
| OPT - 27 Properties Found |
|
Square Feet
|
Bedrooms |
Full Baths |
Half Baths |
List Price |
Price per Square Foot |
Days on Market |
| Min |
1758
|
3
|
2
|
0
|
$159,900
|
$79
|
11
|
| Avg |
3141
|
3
|
2
|
0
|
$364,870
|
$116
|
73
|
| Max |
6263
|
5
|
4
|
2
|
$889,900
|
$178
|
346
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Wednesday, 04 October 2006
Credit Card Fraud
BEWARE OF THESE NEW TACTICS!
SCENE 1.
This is a new one. People sure stay busy trying to cheat us, don't they?
A friend went to the local gym and placed his belongings in the locker.
After the workout and a shower, he came out, saw the locker open, and thought to himself,
"Funny, I thought I locked the locker. Hmmm." He dressed and just flipped the wallet to make sure all was in order.
Everything looked okay - all cards were in place.
A few weeks later his credit card bill came - a whooping bill of $14,000! He called the credit card company and started yelling at them, saying that he did not make the transactions.
Customer care personnel verified that there was no Mistake in the system and asked if his card had been stolen. "No," he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made. An expired similar credit card from the same bank was in the wallet.
The thief broke into his locker at the gym and switched cards.
Verdict:
The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them.
How much did he have to pay for items he did not buy?
$9,000! Why were there no calls made to verify the amount swiped? Small amounts rarely trigger a "warning bell" with some credit card companies.
It just so happens that all the small amounts added up to big one!
SCENE 2.
A man at a local restaurant paid for his meal with his credit card. The bill for the meal came, he signed it, and the waitress folded the receipt and passed the credit card along.
Usually, he would just take it and place it in his wallet or pocket.
Funny enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person.
He called the waitress and she looked perplexed.
She took it back, apologized, and hurried back to the counter under the watchful eye of the man.
All the waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card.
No exchange of words --- nothing! She took it and came back to the man with an apology.
Verdict:
Make sure the credit cards in your wallet are yours. Check the name on the card every time you sign for something and/or the card is taken away for even a short period of time.
Many people just take back the credit card without even looking at it, "assuming" that it has to be theirs.
FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A TRANSACTION!
SCENE 3:
Yesterday I went into a pizza restaurant to pick up an order that I had called in.
I paid by using my Visa Check Card which, of course, is linked directly to my checking account.
The young man behind the counter took my card, swiped it, then laid it on the counter as he waited for the approval, which is pretty standard procedure. While he waited, he picked up his cell phone and started dialing.
I noticed the phone because it is the same model I have, but nothing seemed out of the ordinary.
Then I heard a click that sounded like my phone sounds when I take a picture..
He then gave me back my card but kept the phone in his hand as
if he was still pressing buttons.
Meanwhile, I'm thinking: I wonder what he is taking a picture of, oblivious to what was really going on. It then dawned on me: the only thing there was my credit card, so now I'm paying close attention to what he is doing.
He set his phone on the counter, leaving it open.
About five seconds later, I heard the chime that tells you that the picture has been saved.
Now I'm standing there struggling with the fact that this boy just took a picture of my credit card.
Yes, he played it off well, because had we not had the same kind of phone, I probably would never have known what happened.
Needless to say, I immediately
canceled that card as I was walking out of the pizza parlor.
All I am saying is, be aware of your surroundings at all times.
Whenever you are using your credit cards, take caution and don't be careless. Notice who is standing near you and what they are doing when you use your card.
Be aware of phones
because many have a camera phone these days.
When you are in a restaurant and the waiter/waitress brings your card and receipt for you to sign, make sure you scratch the number off.
Some restaurants are using only the last four digits, but a lot of them are still putting the whole thing on there.
I have already been a victim of credit card fraud and, believe me, it is not fun. The truth is that they can get you even when you are careful, but don't make it easy for them.
FORWARD THIS TO AS MANY PEOPLE AS YOU CAN THINK OF. LET'S GET THE WORD OUT! JUST BE AWARE
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Housing Information Overload?
I Hear You!
Take a look at the monthly housing breakdown for Feb. 2013 for insight into the current real estate market. Every month new information will be posted as a trusted souce for excellent advice. Any questions about local real estate in Plano? Just ask us for expert advice.
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J.W. & Terry Smith
Common name, Uncommon service
Licensed Broker - Owner, TX Realtors®
Smith & Smith Realty
info(at)planohomesandland.com
| Real Estate Forms and Consumer Info | |
Property Tax Rates 2013
Plano 2.17%
Dallas 2.66%
Frisco 2.18%
Sales Tax 8.25%
Property Website
Just Listed! 3225 Oak Hollow, Plano, 75093 -MLS 11927773 - Hills at Prestonwood, Plano Schools, Hard to find 5 bdrm,4.1 bath, 4589 sq ft, .45 acre lot, pool & spa-Updated, Lux Spa Master Bath & Outdoor Livng Area--$629K, See more info on this property. Call or text for private showing, 214.415.9829
Should Texas Home Sale Prices be Disclosed?
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