Dallas/Fort Worth Real Estate Market
When you bought your home, you probably used the services of a real estate agent. You found that agent through a referral from a friend or family member, or through some sort of advertising or marketing. The agent helped you in many ways and eventually you found the house of your dreams, made an offer, closed the deal, and moved in.
For whatever reason, now it is time to sell your home and you need a real estate agent again. Many home sellers, especially those selling their first home, tend to think all agents are similar to the one that helped them buy their home.
Although real estate agents can (and do) work with both buyers and sellers, most tend to concentrate more on one than the other. They specialize. When you bought your home, you probably worked with a "selling agent" – an agent that works mostly with buyers. Because of the nature of real estate advertising and marketing, the public’s main image of the real estate profession is that of the selling agent.
As a result, many homeowners expect their listing agent to do the same things that a selling agent does – find someone to buy their home. After all, they do the things you would expect if they were searching for buyers. A sign goes up in the front yard. Ads are placed in the local newspaper and real estate magazines. Your agent holds an open house on the weekend. Your house is proudly displayed on the Internet.
But this is only "surface" marketing. More important activity occurs behind the scenes. After the "for sale" sign goes up and flyers are printed, your agent’s main job is to market your home to other agents, not to homebuyers.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Saturday, March 27, 2010
Resolution of Disputes
Dallas/Fort Worth Real Estate Market
There are times when you and your agent have a disagreement that you cannot resolve by yourselves. Maybe the agent did a poor job or misrepresented something. Maybe your agent was really doing their job correctly, but you did not understand. Perhaps the agent will have a dispute with you.
The listing contract specifies what methods will be used to settle such disputes. You can choose to accept binding arbitration, which is usually cheaper than hiring a lawyer and going to court. Usually, matters that can be dealt with in a small claims court are excluded from having to go to binding arbitration.
You are not required to sign or initial the binding arbitration clause. This would leave you free to hire an attorney and pursue disputes in civil court instead of binding arbitration. Consult your attorney for advise on this legal matter
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
There are times when you and your agent have a disagreement that you cannot resolve by yourselves. Maybe the agent did a poor job or misrepresented something. Maybe your agent was really doing their job correctly, but you did not understand. Perhaps the agent will have a dispute with you.
The listing contract specifies what methods will be used to settle such disputes. You can choose to accept binding arbitration, which is usually cheaper than hiring a lawyer and going to court. Usually, matters that can be dealt with in a small claims court are excluded from having to go to binding arbitration.
You are not required to sign or initial the binding arbitration clause. This would leave you free to hire an attorney and pursue disputes in civil court instead of binding arbitration. Consult your attorney for advise on this legal matter
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Multiple Listing Service
Dallas/Fort Worth Real Estate Market
Your listing contract should specify whether or not the house will be listed with the local MLS (multiple listing service). It is definitely in your interest to have the house listed. This is because your sales force is automatically multiplied by however many agents are members of the local MLS. If your house is not listed, then you only have one agent working for you instead of many.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Your listing contract should specify whether or not the house will be listed with the local MLS (multiple listing service). It is definitely in your interest to have the house listed. This is because your sales force is automatically multiplied by however many agents are members of the local MLS. If your house is not listed, then you only have one agent working for you instead of many.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Agency Duties of a Listing Agent
Dallas/Fort Worth Real Estate Market
Agency Duties of a Listing Agent
The listing contract will specify that your agent is acting as a "seller’s agent." This means that, in the sale of your house, they are working for you and only you. However, there may be times when your listing agent has a client who wants to buy your home. For that reason, there is a little "wiggle room" in the listing contract. If your agent also represents the buyer, the listing contract should specify that they provide an additional disclosure that details their duties as a dual agent.
The contract also provides permission for your listing agent to act as an agent for others on other transactions. They can continue to list other properties, and represent buyers looking at other homes.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Agency Duties of a Listing Agent
The listing contract will specify that your agent is acting as a "seller’s agent." This means that, in the sale of your house, they are working for you and only you. However, there may be times when your listing agent has a client who wants to buy your home. For that reason, there is a little "wiggle room" in the listing contract. If your agent also represents the buyer, the listing contract should specify that they provide an additional disclosure that details their duties as a dual agent.
The contract also provides permission for your listing agent to act as an agent for others on other transactions. They can continue to list other properties, and represent buyers looking at other homes.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Real Estate Commission
Dallas/Fort Worth Real Estate Market
In some areas of the country there is a certain percentage that real estate agents expect to earn as a commission.This commission amount is a certain percent of the sales price.Or, some companies will charge a set fee for their services.However, just like anything else in real estate, this amount is negotiable.When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
In some areas of the country there is a certain percentage that real estate agents expect to earn as a commission.This commission amount is a certain percent of the sales price.Or, some companies will charge a set fee for their services.However, just like anything else in real estate, this amount is negotiable.When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Lockbox - Yes or No?
Dallas/Fort Worth Real Estate Market
A lockbox is a basically a padlock with a cavity inside where a key to your home can be placed. Only someone with an electronic key or the combination can get into the lockbox and access the key. Having a lockbox available at your house makes it easy for other agents to get access to your house.
Without the lockbox, agents representing buyers would have to set appointments to meet you or your agent at the house so they could gain access and view the home. This would be inconvenient. Since almost every other house does have a lockbox available, if you do not allow one most agents will simply not show your property. You will miss out on lots of potential buyers.
The listing contract specifies whether you allow a lockbox or not. It is locked into place, usually on the front door and cannot be removed. Only other agents can access the key that is located within the lockbox.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
A lockbox is a basically a padlock with a cavity inside where a key to your home can be placed. Only someone with an electronic key or the combination can get into the lockbox and access the key. Having a lockbox available at your house makes it easy for other agents to get access to your house.
Without the lockbox, agents representing buyers would have to set appointments to meet you or your agent at the house so they could gain access and view the home. This would be inconvenient. Since almost every other house does have a lockbox available, if you do not allow one most agents will simply not show your property. You will miss out on lots of potential buyers.
The listing contract specifies whether you allow a lockbox or not. It is locked into place, usually on the front door and cannot be removed. Only other agents can access the key that is located within the lockbox.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Details of a Listing Contract
Dallas/Fort Worth Real Estate Market
Obviously the name of the seller and the property address will be included in the listing contract. There are many other things that are included, too, and you should be aware of them.
Price and Terms of Sale
When setting the terms of sale, the main thing you are concerned with is the price. You should have a basic idea of what your home is worth by keeping track of other sales in the neighborhood. Plus, you have probably interviewed at least two real estate agents and they have given you their own ideas. Exercise great care in determining your asking price, making sure not to set it too high or too low.
In addition to the price, you will disclose what personal property, if any, goes with the house when you sell it. Personal property is anything that is not attached or fixed to the home, such as washers, dryers, refrigerators, and so on.
There may be some item that is considered "real property" that you do not intend to include in the sale. Real property is anything that is attached to the home. For example, you may have a chandelier that has been in your family for generations and you take it from home to home when you move. Since the chandelier is attached to the house, it is considered "real property" and a reasonable buyer would normally expect it to go with the house.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Obviously the name of the seller and the property address will be included in the listing contract. There are many other things that are included, too, and you should be aware of them.
Price and Terms of Sale
When setting the terms of sale, the main thing you are concerned with is the price. You should have a basic idea of what your home is worth by keeping track of other sales in the neighborhood. Plus, you have probably interviewed at least two real estate agents and they have given you their own ideas. Exercise great care in determining your asking price, making sure not to set it too high or too low.
In addition to the price, you will disclose what personal property, if any, goes with the house when you sell it. Personal property is anything that is not attached or fixed to the home, such as washers, dryers, refrigerators, and so on.
There may be some item that is considered "real property" that you do not intend to include in the sale. Real property is anything that is attached to the home. For example, you may have a chandelier that has been in your family for generations and you take it from home to home when you move. Since the chandelier is attached to the house, it is considered "real property" and a reasonable buyer would normally expect it to go with the house.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
The Listing Agent - Marketing Your Home to Other Agents
Dallas/Fort Worth Real Estate Market
The Multiple Listing Service
Even before the sign is up and the brochures are ready, your agent should list your property with the local MLS (Multiple Listing Service). The MLS is a database of all the homes listed by local real estate agents who are members of the service, which is practically all of the local agents.
Important information about your property is listed here, from general data such as square footage and number of rooms, to such details as whether you have central air conditioning or hard wood flooring. There should also be a photo, and a short verbal description of what makes your house "special."
Agents search the database for homes that fit the price range and needs of their clients. They pay special attention to homes that have been recently placed on the market, which is one reason you get a lot of attention when your house is first listed. Many agents will want to preview the home before they show it to their clients.
The main point about having your house listed in the MLS is that you expand your sales force by the number of local MLS members. Instead of having just one agent working for you, now you may have hundreds or more, depending on the size of your community.
The listing agent’s main job to make sure that the other MLS members know about your house. This is accomplished through listing your house in the Multiple Listing Service, broker previews and advertising targeted toward other agents, not homebuyers.
Office Preview
If your listing agent belongs to a fairly sizable office, an "office preview" will introduce your house to other agents working in the same office. In effect, they get a "head start" on selling your property. Once a week, the office’s agents will get together, share vehicles, and "caravan" to all of the new listings. They generally pull up in front of your house at about the same time (some even use a bus) then file quickly through your home like some bizarre "follow the leader" game.
It can be amazing to watch.
They go through very quickly, since most of them are familiar with similar models of your house. They are usually looking for anything memorable or different and to determine if your house is one they would be proud to show their clients. Then they all pile back into their cars and move on to the next house on the tour.
But some of them come back...with Buyers.
Broker Previews and Culinary Delights
Broker preview is very similar to an office preview, except it is open to all the members of the local multiple listing service. It usually occurs within the first week your house is placed on the market, just after the office preview. However, there are lots of new listings to choose from, and not all the agents preview all the new listings each week. You may not get as many agents visiting your home as there were on the office preview.
Unless your agent "entices" them to come. This is where you could provide some help, if you are so inclined.
Though it may seem funny, nothing seems to attract a real estate agent like the offer of free food. So if your agent offers "free eats" at a broker preview, you are likely to get more visitors than if nothing is offered. Realize that many agents have been on this weekly circuit for years, so "boring" food does not really accomplish much. In other words, sandwiches supplied from the local grocery chain are not very enticing.
If you want to help your agent sell your home quickly, try and help them be creative and original in the choice of a culinary treat.
Of course, some agents will actually come to look at your house, too – whether food is offered or not.
Office Flyers
Your agent will undoubtedly prepare flyers about your property so that prospective homebuyers can be informed about the attractive features of your house. These flyers (or similar ones) should also be sent to all the local real estate offices, too. Most areas have a weekly flyer service that delivers advertisements to all of the local offices. Since agents get these flyers every week, they do not always look at them. However, a large percentage of them do. Some agents will keep the flyer and bring buyers to your house.
The flyer should be done professionally and photocopy well. Ask your agent to show you copies of office flyers they have done in the past.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
The Multiple Listing Service
Even before the sign is up and the brochures are ready, your agent should list your property with the local MLS (Multiple Listing Service). The MLS is a database of all the homes listed by local real estate agents who are members of the service, which is practically all of the local agents.
Important information about your property is listed here, from general data such as square footage and number of rooms, to such details as whether you have central air conditioning or hard wood flooring. There should also be a photo, and a short verbal description of what makes your house "special."
Agents search the database for homes that fit the price range and needs of their clients. They pay special attention to homes that have been recently placed on the market, which is one reason you get a lot of attention when your house is first listed. Many agents will want to preview the home before they show it to their clients.
The main point about having your house listed in the MLS is that you expand your sales force by the number of local MLS members. Instead of having just one agent working for you, now you may have hundreds or more, depending on the size of your community.
The listing agent’s main job to make sure that the other MLS members know about your house. This is accomplished through listing your house in the Multiple Listing Service, broker previews and advertising targeted toward other agents, not homebuyers.
Office Preview
If your listing agent belongs to a fairly sizable office, an "office preview" will introduce your house to other agents working in the same office. In effect, they get a "head start" on selling your property. Once a week, the office’s agents will get together, share vehicles, and "caravan" to all of the new listings. They generally pull up in front of your house at about the same time (some even use a bus) then file quickly through your home like some bizarre "follow the leader" game.
It can be amazing to watch.
They go through very quickly, since most of them are familiar with similar models of your house. They are usually looking for anything memorable or different and to determine if your house is one they would be proud to show their clients. Then they all pile back into their cars and move on to the next house on the tour.
But some of them come back...with Buyers.
Broker Previews and Culinary Delights
Broker preview is very similar to an office preview, except it is open to all the members of the local multiple listing service. It usually occurs within the first week your house is placed on the market, just after the office preview. However, there are lots of new listings to choose from, and not all the agents preview all the new listings each week. You may not get as many agents visiting your home as there were on the office preview.
Unless your agent "entices" them to come. This is where you could provide some help, if you are so inclined.
Though it may seem funny, nothing seems to attract a real estate agent like the offer of free food. So if your agent offers "free eats" at a broker preview, you are likely to get more visitors than if nothing is offered. Realize that many agents have been on this weekly circuit for years, so "boring" food does not really accomplish much. In other words, sandwiches supplied from the local grocery chain are not very enticing.
If you want to help your agent sell your home quickly, try and help them be creative and original in the choice of a culinary treat.
Of course, some agents will actually come to look at your house, too – whether food is offered or not.
Office Flyers
Your agent will undoubtedly prepare flyers about your property so that prospective homebuyers can be informed about the attractive features of your house. These flyers (or similar ones) should also be sent to all the local real estate offices, too. Most areas have a weekly flyer service that delivers advertisements to all of the local offices. Since agents get these flyers every week, they do not always look at them. However, a large percentage of them do. Some agents will keep the flyer and bring buyers to your house.
The flyer should be done professionally and photocopy well. Ask your agent to show you copies of office flyers they have done in the past.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Listing Commissions and Related Issues
Dallas/Fort Worth Real Estate Market
Are Commissions Negotiable?
In some areas of the country there is a certain percentage that real estate agents expect to earn as a commission.This commission amount is a certain percent of the sales price.Or, some companies will charge a set fee for their services.However, just like anything else in real estate, this amount is negotiable.When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.
Cut-Rate Listing Commissions
With the advent of the web, a lot of agents are offering "cut-rate" commissions. Most of the time, lower commissions are tied to a lower level of service. If all you want is to be listed with the Multiple Listing Service and a sign in the front yard, then a cut-rate commission may be right for you. If you want an agent who will actively promote your property to other agents and spend money on advertising, then you probably are not going to get that level of service with a reduced commission.
At other times, the lower commissions are offered when you agree to tie in to other services offered by the broker, such as agreeing to use a specific lender, escrow, settlement, or title company. The broker (not the agent) will probably have some type of ownership or profit participation in those businesses. The problem with agreeing to tie in to these other companies is that they do not have to be as competitive in pricing their products or services.
Another common practice when you see an ad for a reduced commission is that the compensation is lowered when you agree to buy your next home through the same agent or broker. Usually, the reduced commission is not really being offered on the sale of your existing home but on the purchase of your next one. The ads are usually unclear on this.
As a result, when you see an offer for a lower commission, you should analyze what you are giving up by accepting such an offer. It probably will not be readily apparent in the advertisement. Be sure to ask lots of questions.
How and When Listing Commissions are Earned
Your listing contract specifies a listing price. Your agent’s job is to bring a "ready, willing and able" buyer to present an offer. If you reach agreement with the buyer, then the agent has done his job and earned the commission. Once the sale has closed, the real estate broker gets paid from the proceeds of the sale.
If the buyer proves unable or unwilling to conclude the sale, the house is placed back on the market and the agent has to begin earning his or her commission all over again.
However, if the seller backs out or does not accept an offer that meets the price and terms of the listing agreement, the listing broker has still earned the commission. They may want to be paid, even though you did not actually sell your home. Therefore, it is very important to carefully consider every detail when completing your listing contract and accepting an offer to buy your property.
"Hot Market" Under-Pricing Sales Technique – Commission Issues
During a "hot market" there is a certain marketing technique which, though very effective, could cause trouble because of the way the contract is written. This is the practice of "under-pricing" the home. In a hot market, a home that is under-priced gets a lot of attention from other Realtors, and they all start showing your home to their clients. Often, you get into a situation where multiple offers are presented and the price starts going up because of the frenzy. You end up selling the house above your asking price and perhaps above what you could have received if you had priced it traditionally.
However, the technique does have the potential to backfire, so you should build safeguards to prevent having to pay a commission "just in case."
You see, the listing contract usually states that if an offer is received that meets the terms presented in the contract (including price), the real estate agent has earned his or her commission – even if you decide not to sell. A reputable agent would never attempt to collect a commission if they were using the "under-pricing" technique and it backfired, even if they are technically entitled to one. For that reason, in the "additional terms" space on the listing contract, you should specify your true target price – when the agent has really earned the commission.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Are Commissions Negotiable?
In some areas of the country there is a certain percentage that real estate agents expect to earn as a commission.This commission amount is a certain percent of the sales price.Or, some companies will charge a set fee for their services.However, just like anything else in real estate, this amount is negotiable.When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.
Cut-Rate Listing Commissions
With the advent of the web, a lot of agents are offering "cut-rate" commissions. Most of the time, lower commissions are tied to a lower level of service. If all you want is to be listed with the Multiple Listing Service and a sign in the front yard, then a cut-rate commission may be right for you. If you want an agent who will actively promote your property to other agents and spend money on advertising, then you probably are not going to get that level of service with a reduced commission.
At other times, the lower commissions are offered when you agree to tie in to other services offered by the broker, such as agreeing to use a specific lender, escrow, settlement, or title company. The broker (not the agent) will probably have some type of ownership or profit participation in those businesses. The problem with agreeing to tie in to these other companies is that they do not have to be as competitive in pricing their products or services.
Another common practice when you see an ad for a reduced commission is that the compensation is lowered when you agree to buy your next home through the same agent or broker. Usually, the reduced commission is not really being offered on the sale of your existing home but on the purchase of your next one. The ads are usually unclear on this.
As a result, when you see an offer for a lower commission, you should analyze what you are giving up by accepting such an offer. It probably will not be readily apparent in the advertisement. Be sure to ask lots of questions.
How and When Listing Commissions are Earned
Your listing contract specifies a listing price. Your agent’s job is to bring a "ready, willing and able" buyer to present an offer. If you reach agreement with the buyer, then the agent has done his job and earned the commission. Once the sale has closed, the real estate broker gets paid from the proceeds of the sale.
If the buyer proves unable or unwilling to conclude the sale, the house is placed back on the market and the agent has to begin earning his or her commission all over again.
However, if the seller backs out or does not accept an offer that meets the price and terms of the listing agreement, the listing broker has still earned the commission. They may want to be paid, even though you did not actually sell your home. Therefore, it is very important to carefully consider every detail when completing your listing contract and accepting an offer to buy your property.
"Hot Market" Under-Pricing Sales Technique – Commission Issues
During a "hot market" there is a certain marketing technique which, though very effective, could cause trouble because of the way the contract is written. This is the practice of "under-pricing" the home. In a hot market, a home that is under-priced gets a lot of attention from other Realtors, and they all start showing your home to their clients. Often, you get into a situation where multiple offers are presented and the price starts going up because of the frenzy. You end up selling the house above your asking price and perhaps above what you could have received if you had priced it traditionally.
However, the technique does have the potential to backfire, so you should build safeguards to prevent having to pay a commission "just in case."
You see, the listing contract usually states that if an offer is received that meets the terms presented in the contract (including price), the real estate agent has earned his or her commission – even if you decide not to sell. A reputable agent would never attempt to collect a commission if they were using the "under-pricing" technique and it backfired, even if they are technically entitled to one. For that reason, in the "additional terms" space on the listing contract, you should specify your true target price – when the agent has really earned the commission.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Marketing Sessions
Dallas/Fort Worth Real Estate Market
Your agent probably belongs to a local association of Realtors and they often have meetings once a month. At these meetings there is often a "marketing session" where some agents stand up and tell about their listings and other agents stand up and tell about their buyers. Your listing agent has an opportunity to "pitch" your house at these marketing sessions.
At the same time, these sessions may not be as effective as they were in the past. One reason is that they are often more social occasions than serious business meetings. Another reason is that, as technology has expanded, local associations have tended to merge and create larger Multiple Listing Services and Associations. Local meetings have become poorly attended gatherings.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Your agent probably belongs to a local association of Realtors and they often have meetings once a month. At these meetings there is often a "marketing session" where some agents stand up and tell about their listings and other agents stand up and tell about their buyers. Your listing agent has an opportunity to "pitch" your house at these marketing sessions.
At the same time, these sessions may not be as effective as they were in the past. One reason is that they are often more social occasions than serious business meetings. Another reason is that, as technology has expanded, local associations have tended to merge and create larger Multiple Listing Services and Associations. Local meetings have become poorly attended gatherings.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
The Listing Agent - Marketing Your Home to Homebuyers
Dallas/Fort Worth Real Estate Market
The Purpose of Advertising in General
Every home seller likes to be assured that their listing agent or the real estate company will run ads featuring their home. Newspaper ads could be large display ads with lots of listings or small classified ads featuring just your property. Ads may also appear in local real estate magazines and your listing will also show up on the Internet.
Of course the agents and companies will run ads featuring your house, but not for the reasons you expect.
You see, the main job of advertising is not to sell your house directly. Advertising creates phone calls and some of those callers become clients of the agents answering the calls. This builds up a pool of homebuyers looking for property in general, all represented by selling agents. Multiply this by all the agents and companies who also advertise homes, and there is a large pool of homebuyers in the market at any given time – all of whom are represented by selling agents.
The agents representing those homebuyers know about your home because it is listed in the Multiple Listing Service, has been on office and broker preview, and because your agent may have also sent flyers to all the local real estate offices.
The agents match up their clients with available homes, one of which may be yours. Then they show the homes to their clients, who eventually make an offer on one. That is how your house gets sold. Ads create a pool of clients, one of which buys your home. Ads do not usually sell your house directly.
Real Estate Office Advertising
As mentioned previously, advertising your home in newspapers and magazines rarely sells your home directly. More likely than not, the buyer who eventually purchases your home will have called on a totally different house. The same thing happens with buyers who call on your house. They will probably buy something else.
You still want to be certain the real estate company selling your house runs ads in the local and major newspapers, whether they feature your house or not. The ads generate phone calls to the real estate office, and if those agents viewed your house on the office preview, they will be familiar with it. This is how your property is sold.
Or you could be one of the lucky ones – someone calling on your house may actually end up buying it.
You should also realize that when a company advertises the homes they have for sale, there is more than one objective. Sure, the real estate office wants to generate phone calls and sell houses, but the advertising also shows home sellers how effectively they market properties. This impresses not only you, but others who may be thinking of selling their home.
The advertising brings in more listings, which generate more ad calls, which produces more buyers….and that is how real estate advertising really works.
Individual Agent Advertising
Individual agents may advertise your home for the same reasons as companies do. They usually advertise in classified ads or in specialty magazines featuring houses available for sale.
As in other types of advertising, these ads rarely sell your home. Once again, the main goals of advertising are to accumulate homebuyers as clients, and to impress you and future home sellers with how well they market their listings. Some agents actually do sell their own listings, but not that often.
It is much more productive and beneficial if your listing agent directs most of his or her marketing efforts toward other agents. Since this is "behind the scenes" marketing that you don’t actually see, it is often difficult for you to measure how hard the agent is working for you.
It is a mistake to measure your agent’s effectiveness solely by counting the number of newspaper and magazine ads featuring your property.
Neighborhood Announcements
When you first list your home many agents send "announcements" to all of the other houses in your neighborhood. This can be done in the form of postcards, a letter, or flyers left hanging on the front door. These are important because your neighbors might have friends who are looking to buy a house.
The announcements create "word of mouth" advertising, which is the best kind.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
The Purpose of Advertising in General
Every home seller likes to be assured that their listing agent or the real estate company will run ads featuring their home. Newspaper ads could be large display ads with lots of listings or small classified ads featuring just your property. Ads may also appear in local real estate magazines and your listing will also show up on the Internet.
Of course the agents and companies will run ads featuring your house, but not for the reasons you expect.
You see, the main job of advertising is not to sell your house directly. Advertising creates phone calls and some of those callers become clients of the agents answering the calls. This builds up a pool of homebuyers looking for property in general, all represented by selling agents. Multiply this by all the agents and companies who also advertise homes, and there is a large pool of homebuyers in the market at any given time – all of whom are represented by selling agents.
The agents representing those homebuyers know about your home because it is listed in the Multiple Listing Service, has been on office and broker preview, and because your agent may have also sent flyers to all the local real estate offices.
The agents match up their clients with available homes, one of which may be yours. Then they show the homes to their clients, who eventually make an offer on one. That is how your house gets sold. Ads create a pool of clients, one of which buys your home. Ads do not usually sell your house directly.
Real Estate Office Advertising
As mentioned previously, advertising your home in newspapers and magazines rarely sells your home directly. More likely than not, the buyer who eventually purchases your home will have called on a totally different house. The same thing happens with buyers who call on your house. They will probably buy something else.
You still want to be certain the real estate company selling your house runs ads in the local and major newspapers, whether they feature your house or not. The ads generate phone calls to the real estate office, and if those agents viewed your house on the office preview, they will be familiar with it. This is how your property is sold.
Or you could be one of the lucky ones – someone calling on your house may actually end up buying it.
You should also realize that when a company advertises the homes they have for sale, there is more than one objective. Sure, the real estate office wants to generate phone calls and sell houses, but the advertising also shows home sellers how effectively they market properties. This impresses not only you, but others who may be thinking of selling their home.
The advertising brings in more listings, which generate more ad calls, which produces more buyers….and that is how real estate advertising really works.
Individual Agent Advertising
Individual agents may advertise your home for the same reasons as companies do. They usually advertise in classified ads or in specialty magazines featuring houses available for sale.
As in other types of advertising, these ads rarely sell your home. Once again, the main goals of advertising are to accumulate homebuyers as clients, and to impress you and future home sellers with how well they market their listings. Some agents actually do sell their own listings, but not that often.
It is much more productive and beneficial if your listing agent directs most of his or her marketing efforts toward other agents. Since this is "behind the scenes" marketing that you don’t actually see, it is often difficult for you to measure how hard the agent is working for you.
It is a mistake to measure your agent’s effectiveness solely by counting the number of newspaper and magazine ads featuring your property.
Neighborhood Announcements
When you first list your home many agents send "announcements" to all of the other houses in your neighborhood. This can be done in the form of postcards, a letter, or flyers left hanging on the front door. These are important because your neighbors might have friends who are looking to buy a house.
The announcements create "word of mouth" advertising, which is the best kind.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Open Houses
Dallas/Fort Worth Real Estate Market
An open house when your property is first placed on the market can be very important, but not for the reasons most homeowners think. Just like with advertising, most visitors to open houses rarely buy the house they come to look at. They may not even know the price of your home when they stop by to visit – they probably just followed an "Open House" sign to your door.
An open house performs a similar function to the neighborhood announcements – it lets all of your neighbors know that your house is for sale, and it practically invites them to come "take a look." Being generally nosy, a lot of your neighbors will take advantage of the invitation.
And they may tell their friends about your house, creating more "word of mouth" advertising.
Of course, there are other reasons for holding open houses, too. Listing agents who "farm" a particular neighborhood use them as an opportunity to meet with other local homeowners who will someday be selling their home. Your agent may hope to list their homes in the future.
Open houses held after your home has been on the market awhile do not usually serve a useful purpose in selling your home. Most of the neighbors already know your house is for sale and open house visitors rarely buy the homes they visit.
However, if you really want more open houses, your listing agent may allow other agents to hold it open. Open houses attract prospective homebuyers and agents hope to convince some of those homebuyers to become their clients.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
An open house when your property is first placed on the market can be very important, but not for the reasons most homeowners think. Just like with advertising, most visitors to open houses rarely buy the house they come to look at. They may not even know the price of your home when they stop by to visit – they probably just followed an "Open House" sign to your door.
An open house performs a similar function to the neighborhood announcements – it lets all of your neighbors know that your house is for sale, and it practically invites them to come "take a look." Being generally nosy, a lot of your neighbors will take advantage of the invitation.
And they may tell their friends about your house, creating more "word of mouth" advertising.
Of course, there are other reasons for holding open houses, too. Listing agents who "farm" a particular neighborhood use them as an opportunity to meet with other local homeowners who will someday be selling their home. Your agent may hope to list their homes in the future.
Open houses held after your home has been on the market awhile do not usually serve a useful purpose in selling your home. Most of the neighbors already know your house is for sale and open house visitors rarely buy the homes they visit.
However, if you really want more open houses, your listing agent may allow other agents to hold it open. Open houses attract prospective homebuyers and agents hope to convince some of those homebuyers to become their clients.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Showing the House to Potential Home Buyers
Dallas/Fort Worth Real Estate Market
Your house should always be available for show, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box in a convenient place, to make it easy for other agents to show your home to homebuyers. Otherwise, agents will have to schedule appointments, which is an inconvenience. Most will just skip your home to show the house of someone else who is more cooperative.
Most agents will call and give you at least a couple of hours notice before showing your property. If you refuse to let them show it at that time, they will just skip your house. Even if they come back another time, it will probably be with different buyers and you may have just lost a chance to sell your home.
Why You Should Not Be Home
Homebuyers will feel like intruders if you are home when they visit, and they might not be as receptive toward viewing your home. Visit the local coffee house, yogurt shop, or take the kids to the local park. If you absolutely cannot leave, try to remain in an out of the way area of the house and do not move from room to room. Do not volunteer any information, but answer any questions the agent may ask.
Lighting, Fragrances, Pet Control and More
Lighting
When you know someone is coming by to tour your home, turn on all the indoor and outdoor lights – even during the day. At night, a lit house gives a "homey" impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.
Fragrances
Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking.
Pet Control
If you have pets, make sure your listing agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, It is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.
The Kitchen Trash
Especially if your kitchen trash can does not have a lid, make sure you empty it every time someone comes to look at your home – even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every aspect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.
Keeping the House Tidy and Neat
Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home – a home with furniture but nobody really lives there.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Your house should always be available for show, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box in a convenient place, to make it easy for other agents to show your home to homebuyers. Otherwise, agents will have to schedule appointments, which is an inconvenience. Most will just skip your home to show the house of someone else who is more cooperative.
Most agents will call and give you at least a couple of hours notice before showing your property. If you refuse to let them show it at that time, they will just skip your house. Even if they come back another time, it will probably be with different buyers and you may have just lost a chance to sell your home.
Why You Should Not Be Home
Homebuyers will feel like intruders if you are home when they visit, and they might not be as receptive toward viewing your home. Visit the local coffee house, yogurt shop, or take the kids to the local park. If you absolutely cannot leave, try to remain in an out of the way area of the house and do not move from room to room. Do not volunteer any information, but answer any questions the agent may ask.
Lighting, Fragrances, Pet Control and More
Lighting
When you know someone is coming by to tour your home, turn on all the indoor and outdoor lights – even during the day. At night, a lit house gives a "homey" impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.
Fragrances
Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking.
Pet Control
If you have pets, make sure your listing agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, It is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.
The Kitchen Trash
Especially if your kitchen trash can does not have a lid, make sure you empty it every time someone comes to look at your home – even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every aspect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.
Keeping the House Tidy and Neat
Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home – a home with furniture but nobody really lives there.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Benefits of Owning Your Own Home
Dallas/Fort Worth Real Estate Market
The Best Investment
As a fairly general rule, homes appreciate about five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.
Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could earn over six percent with the safest investment of all, treasury bonds.
But take a second look…
Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of $40,000.
At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.
Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.
Your rate of return when buying a home is higher than most any other investment you could make.
If you are moving to a home for the first time, you are going to be very pleased with all the new space you have available. You may have to even buy more "stuff."
Income Tax Savings
Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less – due to the IRS interest rate deduction.
Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.
Stable Monthly Housing Costs
When you rent a place to live, you can certainly expect your rent to increase each year – or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage – and interest rates aren’t as volatile now as they were in the late seventies and early eighties.
Imagine how much rent might be ten, fifteen, or even thirty years from now? Which makes more sense?
Forced Savings
Some people are just lousy at saving money, and a house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.
Second, your home appreciates. Average appreciation on a home is approximately five percent, though it will vary from year to year, and in some years may even depreciate.. Over time, history has shown that owning a home is one of the very best financial investments.
More Space
Both indoors and outdoors, you will probably have more space if you own your own home. Even moving to a condominium from an apartment, you are likely to find you have much more room available – your own laundry and storage area, and bigger rooms. Apartment complexes are more interested in creating the maximum number of income-producing units than they are in creating space for each of the tenants.
If you are moving to a home for the first time, you are going to be very pleased with all the new space you have available. You may have to even buy more "stuff."
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
The Best Investment
As a fairly general rule, homes appreciate about five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.
Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could earn over six percent with the safest investment of all, treasury bonds.
But take a second look…
Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of $40,000.
At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.
Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.
Your rate of return when buying a home is higher than most any other investment you could make.
If you are moving to a home for the first time, you are going to be very pleased with all the new space you have available. You may have to even buy more "stuff."
Income Tax Savings
Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less – due to the IRS interest rate deduction.
Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.
Stable Monthly Housing Costs
When you rent a place to live, you can certainly expect your rent to increase each year – or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage – and interest rates aren’t as volatile now as they were in the late seventies and early eighties.
Imagine how much rent might be ten, fifteen, or even thirty years from now? Which makes more sense?
Forced Savings
Some people are just lousy at saving money, and a house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.
Second, your home appreciates. Average appreciation on a home is approximately five percent, though it will vary from year to year, and in some years may even depreciate.. Over time, history has shown that owning a home is one of the very best financial investments.
More Space
Both indoors and outdoors, you will probably have more space if you own your own home. Even moving to a condominium from an apartment, you are likely to find you have much more room available – your own laundry and storage area, and bigger rooms. Apartment complexes are more interested in creating the maximum number of income-producing units than they are in creating space for each of the tenants.
If you are moving to a home for the first time, you are going to be very pleased with all the new space you have available. You may have to even buy more "stuff."
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Other Things to Avoid Before Purchasing a Home
Dallas/Fort Worth Real Estate Market
Other Things to Avoid Before Purchasing a Home
Don’t Move Money Around
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.
If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.
The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.
Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.
So leave your money where it is until you talk to a loan officer.
Oh…don’t change banks, either.
The Effect of Changing Jobs
For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.
How Changing Jobs Affects Buying a Home
For most people, changing employers will not really affect your ability to qualify for a mortgage loan. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.
Salaried Employees
If you are a salaried employee who does not earn additional income from commissions, bonuses, or over-time, switching employers should not create a problem. Just make sure to remain in the same line of work. Hopefully, you will be earning a higher salary, which will help you better qualify for a mortgage.
Hourly Employees
If your income is based on hourly wages and you work a straight forty hours a week without over-time, changing jobs should not create any problems.
Commissioned Employees
If a substantial portion of your income is derived from commissions, you should not change jobs before buying a home. This has to do with how mortgage lenders calculate your income. They average your commissions over the last two years.
Changing employers creates an uncertainty about your future earnings from commissions. There is no track record from which to produce an average. Even if you are selling the same type of product with essentially the same commission structure, the underwriter cannot be certain that past earnings will accurately reflect future earnings.
Changing jobs would negatively impact your ability to buy a home.
Bonuses
If a substantial portion of your income on the new job will come from bonuses, you may want to consider delaying an employment change. Mortgage lenders will rarely consider future bonuses as income unless you have been on the same job for two years and have a track record of receiving those bonuses. Then they will average your bonuses over the last two years in calculating your income.
Changing employers means that you do not have the two-year track record necessary to count bonuses as income.
Part-Time Employees
If you earn an hourly income but rarely work forty hours a week, you should not change jobs. There would be no way to tell how many hours you will work each week on the new job, so no way to accurately calculate your income. If you remain on the old job, the lender can just average your earnings.
Over-Time
Since all employers award overtime hours differently, your overtime income cannot be determined if you change jobs. If you stay on your present job, your lender will give you credit for overtime income. They will determine your overtime earnings over the last two years, then calculate a monthly average.
Self-Employment
If you are considering a change to self-employment before buying a new home, don’t do it. Buy the home first.
Lenders like to see a two-year track record of self-employment income when approving a loan. Plus, self-employed individuals tend to include a lot of expenses on the Schedule C of their tax returns, especially in the early years of self-employment. While this minimizes your tax obligation to the IRS, it also minimizes your income to qualify for a home loan.
If you are considering changing your business from a sole proprietorship to a partnership or corporation, you should also delay that until you purchase your new home.
No Major Purchase of Any Kind
Review the article title "Don’t Buy a Car," and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings…
…and automobiles, of course.
Don't Buy a Car
When an individual’s income starts growing and they manage to set aside some savings, they commonly experience what may be considered an innate instinct of modern civilized mankind.
The desire to spend money.
Since North Americans have a special love affair with the automobile, this becomes a high priority item on the shopping list. Later, other things will be added and one of those will probably be a house.
However, by the time home ownership has become more than a distant and hopeful dream, you may have already bought the car.
It happens all the time, sometimes just before you contact a lender to get pre-qualified for a mortgage.
As part of the interview, you may tell the loan officer your price target. He will ask about your income, your savings and your debts, then give you his opinion. "If only you didn’t have this car payment," he might begin, "you would certainly qualify for a home loan to buy that house."
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Other Things to Avoid Before Purchasing a Home
Don’t Move Money Around
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.
If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.
The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.
Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.
So leave your money where it is until you talk to a loan officer.
Oh…don’t change banks, either.
The Effect of Changing Jobs
For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.
How Changing Jobs Affects Buying a Home
For most people, changing employers will not really affect your ability to qualify for a mortgage loan. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.
Salaried Employees
If you are a salaried employee who does not earn additional income from commissions, bonuses, or over-time, switching employers should not create a problem. Just make sure to remain in the same line of work. Hopefully, you will be earning a higher salary, which will help you better qualify for a mortgage.
Hourly Employees
If your income is based on hourly wages and you work a straight forty hours a week without over-time, changing jobs should not create any problems.
Commissioned Employees
If a substantial portion of your income is derived from commissions, you should not change jobs before buying a home. This has to do with how mortgage lenders calculate your income. They average your commissions over the last two years.
Changing employers creates an uncertainty about your future earnings from commissions. There is no track record from which to produce an average. Even if you are selling the same type of product with essentially the same commission structure, the underwriter cannot be certain that past earnings will accurately reflect future earnings.
Changing jobs would negatively impact your ability to buy a home.
Bonuses
If a substantial portion of your income on the new job will come from bonuses, you may want to consider delaying an employment change. Mortgage lenders will rarely consider future bonuses as income unless you have been on the same job for two years and have a track record of receiving those bonuses. Then they will average your bonuses over the last two years in calculating your income.
Changing employers means that you do not have the two-year track record necessary to count bonuses as income.
Part-Time Employees
If you earn an hourly income but rarely work forty hours a week, you should not change jobs. There would be no way to tell how many hours you will work each week on the new job, so no way to accurately calculate your income. If you remain on the old job, the lender can just average your earnings.
Over-Time
Since all employers award overtime hours differently, your overtime income cannot be determined if you change jobs. If you stay on your present job, your lender will give you credit for overtime income. They will determine your overtime earnings over the last two years, then calculate a monthly average.
Self-Employment
If you are considering a change to self-employment before buying a new home, don’t do it. Buy the home first.
Lenders like to see a two-year track record of self-employment income when approving a loan. Plus, self-employed individuals tend to include a lot of expenses on the Schedule C of their tax returns, especially in the early years of self-employment. While this minimizes your tax obligation to the IRS, it also minimizes your income to qualify for a home loan.
If you are considering changing your business from a sole proprietorship to a partnership or corporation, you should also delay that until you purchase your new home.
No Major Purchase of Any Kind
Review the article title "Don’t Buy a Car," and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings…
…and automobiles, of course.
Don't Buy a Car
When an individual’s income starts growing and they manage to set aside some savings, they commonly experience what may be considered an innate instinct of modern civilized mankind.
The desire to spend money.
Since North Americans have a special love affair with the automobile, this becomes a high priority item on the shopping list. Later, other things will be added and one of those will probably be a house.
However, by the time home ownership has become more than a distant and hopeful dream, you may have already bought the car.
It happens all the time, sometimes just before you contact a lender to get pre-qualified for a mortgage.
As part of the interview, you may tell the loan officer your price target. He will ask about your income, your savings and your debts, then give you his opinion. "If only you didn’t have this car payment," he might begin, "you would certainly qualify for a home loan to buy that house."
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Debt-to-Income Ratios and Car Payments
Dallas/Fort Worth Real Estate Market
When determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and….
…car payments.
How a New Car Payment Reduces Your Purchase Price
Suppose you earn $5000 a month and you have a car payment of $400. At current interest rates (approximately 8% on a thirty-year fixed rate loan), you would qualify for approximately $55,000 less than if you did not have the car payment.
Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender.
However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
When determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and….
…car payments.
How a New Car Payment Reduces Your Purchase Price
Suppose you earn $5000 a month and you have a car payment of $400. At current interest rates (approximately 8% on a thirty-year fixed rate loan), you would qualify for approximately $55,000 less than if you did not have the car payment.
Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender.
However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
The Business Cycle and Buying a Home
Dallas/Fort Worth Real Estate Market
Recession and Expansion
There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend money. People eat out more, buy new cars, and….
…they buy new homes.
Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession.
During such a time, fewer people are buying homes. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.
Supply and Demand
When the supply of available houses is greater than the supply of buyers, appreciation may slow and prices may even fall, as happened in the early eighties and the early to mid-nineties.
If you are lucky enough to purchase a home during a slow period, you can be reasonably certain the economy will begin to show strength again. At times, real estate values may even surge drastically. In many regions of the country, this is precisely what occurred in the late eighties and nineties.
Should You Try to "Time the Market"?
One problem with attempting to time your purchase to the business cycle is that no one can accurately predict the future. Another challenge is that interest rates are generally higher during a depressed market and income may not be keeping up. For that reason, fewer people can qualify for a home purchase than in more prosperous times.
Why You Should Not Wait
Plus, this strategy generally works best for first-time buyers. People who already have a home usually need to sell it in order to buy their next one. If a "move-up" buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slow market, too. If a seller wants to sell his home to take advantage of a "hot" market when prices are fairly high, they generally have to buy their next home during that same hot market.
It tends to equal out.
Finally, the business cycle can change over time. Since 1983, we have had two fairly long expansions with only a slight recession in between each. You would not want to wait nine years to buy a home, would you? You could miss out on a substantial amount of appreciation by waiting, and end up paying much higher prices.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Recession and Expansion
There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend money. People eat out more, buy new cars, and….
…they buy new homes.
Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession.
During such a time, fewer people are buying homes. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.
Supply and Demand
When the supply of available houses is greater than the supply of buyers, appreciation may slow and prices may even fall, as happened in the early eighties and the early to mid-nineties.
If you are lucky enough to purchase a home during a slow period, you can be reasonably certain the economy will begin to show strength again. At times, real estate values may even surge drastically. In many regions of the country, this is precisely what occurred in the late eighties and nineties.
Should You Try to "Time the Market"?
One problem with attempting to time your purchase to the business cycle is that no one can accurately predict the future. Another challenge is that interest rates are generally higher during a depressed market and income may not be keeping up. For that reason, fewer people can qualify for a home purchase than in more prosperous times.
Why You Should Not Wait
Plus, this strategy generally works best for first-time buyers. People who already have a home usually need to sell it in order to buy their next one. If a "move-up" buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slow market, too. If a seller wants to sell his home to take advantage of a "hot" market when prices are fairly high, they generally have to buy their next home during that same hot market.
It tends to equal out.
Finally, the business cycle can change over time. Since 1983, we have had two fairly long expansions with only a slight recession in between each. You would not want to wait nine years to buy a home, would you? You could miss out on a substantial amount of appreciation by waiting, and end up paying much higher prices.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Determining Your Offer Price
Dallas/Fort Worth Real Estate Market
Determining Your Offer Price
When you prepare an offer to purchase a home, you already know the seller’s asking price. But what price are you going to offer and how do you come up with that figure?
Determining your offer price is a three-step process. First, you look at recent sales of similar properties to come up with a price range. Then, you analyze additional data, such as the condition of the home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home. Finally, depending on your negotiating style, you adjust your "fair" price and come up with what you want to put in your offer.
Comparable Sales
The first step in determining the price you are willing to offer is to look at the recent sales of similar homes. These are called "comparable sales." Comparable sales are recent sales of homes that compare closely to the one you are looking to purchase. Specifically, you want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, garage space, lot size, and type of construction.
If the home you are interested in is part of a tract of homes, then you will most likely find some exact model matches to compare against one another.
There are three main sources of information on comparable sales, all of which are easily accessed by a real estate agent. It is somewhat more difficult for the general public to access this data, and in some cases impossible. Two of the most obvious information sources are the public record and the Multiple Listing Service.
Comparable Sales in the Public Record
The most accessible source of information on comparable sales is the public record. When someone buys a home the property is deeded from the seller to the buyer. In most circumstances, this deed is recorded at the local county recorder’s office. They combine sales data with information already known about the property so they can assess property taxes correctly.
Provided there have been no additions to the property, the information available from the public record is usually correct regarding sales price, square footage, and numbers of rooms. This makes it easy to use the public record as a source of data for comparable sale information.
Accessing the data is another matter, at least for the general public. Realtors can generally look up this information through title insurance companies. The title companies either compile the data directly from the county recorder’s office or purchase it from other companies.
One problem with the public record is that it tends to run at least six to eight weeks behind. Add another four to six weeks for the typical escrow period and you can see the data is not current. The most current information is the most valuable.
Comparable Sales in the Multiple Listing Service
Most of the public is aware that the Multiple Listing Service is a private resource where Realtors list properties available for sale. Recently, the public has been able to access some of that information on such sites as Realtor.com, MSN HomeAdvisor, and others.
Once a property is sold and the transaction has closed, the selling price is posted to the listing in the Multiple Listing Service. Over time, it has become a huge database on past sales, containing much more information on individual homes than can be gleaned from the public record. This information is only available to real estate agents who are members of the local Multiple Listing Service.
Your agent will provide you with this data to help determine your offer price.
Comparable Sales – Pending Transactions
The most valuable information would be the most current, of course. A sale last week has more validity in helping you determine a purchase price than a sale from six months ago. The problem is that there is no actual record of the sales price until the transaction is completed. The information is not available in the public record because no deed has yet been recorded.
Neither is the information available in the Multiple Listing Service. Once a property is sold, it becomes a "pending sale" and all pricing information is removed from the listing. Prices are not posted until it becomes a "closed sale." This protects the seller in case the transaction falls apart and the property is placed back on the market. It would give an unfair advantage to future potential buyers if they already knew what price the seller had been willing to accept in the past.
However, if a Realtor has a reason to know the sales price, they can usually find out through professional courtesy. Also, some real estate brokerages post sales information on a transaction board in their office.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Determining Your Offer Price
When you prepare an offer to purchase a home, you already know the seller’s asking price. But what price are you going to offer and how do you come up with that figure?
Determining your offer price is a three-step process. First, you look at recent sales of similar properties to come up with a price range. Then, you analyze additional data, such as the condition of the home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home. Finally, depending on your negotiating style, you adjust your "fair" price and come up with what you want to put in your offer.
Comparable Sales
The first step in determining the price you are willing to offer is to look at the recent sales of similar homes. These are called "comparable sales." Comparable sales are recent sales of homes that compare closely to the one you are looking to purchase. Specifically, you want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, garage space, lot size, and type of construction.
If the home you are interested in is part of a tract of homes, then you will most likely find some exact model matches to compare against one another.
There are three main sources of information on comparable sales, all of which are easily accessed by a real estate agent. It is somewhat more difficult for the general public to access this data, and in some cases impossible. Two of the most obvious information sources are the public record and the Multiple Listing Service.
Comparable Sales in the Public Record
The most accessible source of information on comparable sales is the public record. When someone buys a home the property is deeded from the seller to the buyer. In most circumstances, this deed is recorded at the local county recorder’s office. They combine sales data with information already known about the property so they can assess property taxes correctly.
Provided there have been no additions to the property, the information available from the public record is usually correct regarding sales price, square footage, and numbers of rooms. This makes it easy to use the public record as a source of data for comparable sale information.
Accessing the data is another matter, at least for the general public. Realtors can generally look up this information through title insurance companies. The title companies either compile the data directly from the county recorder’s office or purchase it from other companies.
One problem with the public record is that it tends to run at least six to eight weeks behind. Add another four to six weeks for the typical escrow period and you can see the data is not current. The most current information is the most valuable.
Comparable Sales in the Multiple Listing Service
Most of the public is aware that the Multiple Listing Service is a private resource where Realtors list properties available for sale. Recently, the public has been able to access some of that information on such sites as Realtor.com, MSN HomeAdvisor, and others.
Once a property is sold and the transaction has closed, the selling price is posted to the listing in the Multiple Listing Service. Over time, it has become a huge database on past sales, containing much more information on individual homes than can be gleaned from the public record. This information is only available to real estate agents who are members of the local Multiple Listing Service.
Your agent will provide you with this data to help determine your offer price.
Comparable Sales – Pending Transactions
The most valuable information would be the most current, of course. A sale last week has more validity in helping you determine a purchase price than a sale from six months ago. The problem is that there is no actual record of the sales price until the transaction is completed. The information is not available in the public record because no deed has yet been recorded.
Neither is the information available in the Multiple Listing Service. Once a property is sold, it becomes a "pending sale" and all pricing information is removed from the listing. Prices are not posted until it becomes a "closed sale." This protects the seller in case the transaction falls apart and the property is placed back on the market. It would give an unfair advantage to future potential buyers if they already knew what price the seller had been willing to accept in the past.
However, if a Realtor has a reason to know the sales price, they can usually find out through professional courtesy. Also, some real estate brokerages post sales information on a transaction board in their office.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Frequently Asked Questions About Mold
Frequently Asked Questions About Mold
By Dr. Nathan Yost, MD., Building Sciences Corporation
What causes mold to develop?
Mold requires nutrients, water, oxygen and favorable temperatures to grow. Nutrients for mold are present in dead organic material such as wood, paper or fabrics; mold can also derive nutrients from some synthetic products such as paints and adhesives. Mold requires moisture, although some mold species can obtain that moisture from moist air when the relative humidity is above 70 per cent. Many molds thrive at normal indoor temperatures; few if any molds are able to grow below 40 F or above 100 F. Outside this range molds may remain dormant or inactive; they may begin to grow again when the temperature is more favorable. Temperatures well above 100 F will kill mold and mold spores, but the exact temperature required to kill specific species is not well established.
How does mold get into a building?
Molds are decomposers of organic material such as wood, plants and animals. Mold and mold spores are found in high concentrations wherever there is dead matter such as a pile of leaves, manure or compost. Mold spores enter buildings through the air or on people, animals and objects that are brought into the building. Spores are small bundles of genetic material and chemicals (similar to seeds) that molds make under certain conditions.
Are there harmful and non-harmful molds?
There are only a few molds that can cause infection in healthy humans. Some molds cause infections only in people with compromised immune systems. The biggest health problem from exposure to mold is allergy and asthma in susceptible people. There are more than 100,000 types of mold. Good information has been developed for only a small number of these molds – at least in terms of their effects on human health. Most people tolerate exposure to moderate levels of many different molds without any apparent adverse health effects.
Some molds produce powerful chemicals called "mycotoxins" that can produce illness in animals and people. Scientific knowledge about the health effects of these toxins on humans is quite limited.
Does mold affect everyone the same way?
No. Some individuals have a genetic makeup that puts them at risk for developing allergies to mold. People who have an allergy to mold, especially if they also have asthma, can become ill from exposure to a small amount of mold. Individuals also seem to be quite different in their response to exposure to the toxic chemicals that some molds release. These differences between individuals contribute to the difficult question of determining safe exposure limits for mold.
How much mold exposure is harmful?
No one knows the answer to this question for several reasons. Individuals are very different with respect to the amount of mold exposure they can tolerate. Children under the age of one year may be more susceptible to the effects of some molds than older individuals. Measuring or estimating "exposure" levels is very difficult. "Exposure" means the amount of mold (microscopic spores and mold fragments) that gets into a person usually by breathing, but also by eating or absorption through the skin. For example, a building may have a lot of mold in the walls but very little of that mold is getting into the air stream. In that case the people working or living in that building would have little mold exposure.
Can mold exposure cause brain damage or death?
Although some "experts" claim that individuals have brain damage or have died because of exposure to mold and especially mold toxins, there is no good science at this time to support these claims. Consequently it is prudent to minimize one's exposure to really moldy environments. By "really moldy" we mean where there are large visible areas of mold (more than a few square feet) or the building has a "musty" odor because of hidden mold growth. There are many epidemiological studies showing that people who live in houses with dampness have many more health problems, especially respiratory, than do people who live in dry houses. This association does not "prove" that it is the mold that is responsible for the increase in illness. However, it does support the assertion that it is not wise to live in damp, moldy buildings.
Does tighter building construction promote mold development?
Tighter building construction does not by itself promote mold growth, but tight construction combined with some poor choices in design, building materials or operations can increase the probability of mold growth. What do we mean? The tighter the building construction the less air exchange there is between the inside air and the outside air. Whatever gets into the inside air stays there longer than it would in a house with loose construction. Moisture that gets into the air from activities such as cooking, bathing and even breathing will remain in a tight house longer than it would in a loose house. That's why exhaust fans should be installed in bathrooms and kitchens and vented to the outside. Clothes dryers should also be vented to the outside. Tight construction permits control of the air exchange between the inside and the outside and can prevent the deposition of moisture in walls and roofs. Controlling moisture, including indoor relative humidity is the key to preventing mold growth. Tight building construction when combined with source control of moisture (exhaust fans) and controlled ventilation (intentional introduction of outside air) reduces the probability of mold growth in a building. Controlled ventilation can be provided by a duct that brings outside air to the return side of the air handler of a forced air system. A timing device or fan cycler can be programmed to have the air handler turn on for a specified number of minutes each hour even when there is no call for heating or cooling. In cold climates controlled ventilation is frequently provided by a heat recovery ventilator (HRV).
Do new building materials (e.g. drywall or paper faced gypsum board) promote mold growth?
Mold needs water, a nutrient source, oxygen and favorable temperature to grow. Many species of mold love paper faced gypsum board. Why? Making paper involves the mechanical and chemical processing of wood. Paper is largely pre-digested so it is easy for mold to get nutrients from the paper. But unless there is enough moisture present mold can't grow on the paper. If paper faced gypsum board is kept dry, it can be used and still not have mold. This material is kept dry by controlling the interior relative humidity, keeping rain from entering roofs and walls, and NOT using paper faced gypsum in areas that are likely to get wet. This means no paper faced gypsum board in shower and tub areas. Cement board, mortar or non-paper faced gypsum can safely be used in these damp areas because these products do not contain nutrients to support mold growth.
Are there reliable tests to indicate the presence of mold?
Almost all of us already have two effective mold detectors: our eyes and our noses. If black or green discoloration is noticed that is fuzzy in appearance and is in a location that is damp or had been damp, it is almost certainly mold. If a building smells musty, there probably is mold somewhere; the mold may be on boxes stored in a basement or in walls or in the crawl space. If you want to find mold, look for the presence of water or a location where water was likely to have been. If there is still any question about whether the black stuff is mold, have a reliable laboratory examine the material. All you need to know is whether mold is seen when the material is examined under the microscope.
An increasing number of companies are offering "air testing for mold." On the surface this seems like a reasonable thing to do. The problem, however, is that the results of most air sampling for mold are meaningless for two reasons. Air sampling for mold was not developed to determine if an environment was safe or had a dangerous level of mold in the air. Air sampling was developed to help identify the location of a hidden reservoir of mold. If the source of mold is already identified, air sampling does not provide additional meaningful information. Furthermore, safe or toxic levels of air borne mold have not been established. An individual air sample for mold provides a "snapshot" of what was in the air during the few minutes of sampling. The results may not be indicative of the amount of mold that is in the air during most of the day.
Air sampling for mold should be done either to obtain an answer to a question that cannot be answered without the air sampling or to obtain data as part of a research project. The Center for Disease Control (CDC), the U.S. Environmental Protection Agency (EPA) and the American Conference of Governmental Industrial Hygienists do not recommend routine air testing for mold.
If mold is present, what's the best way to get rid of it?
The answer depends on how much mold is present and where it is located. If the mold is on furnishings or boxes simply discard the materials. Moldy materials are not considered hazardous waste; they can be sent to a regular landfill. However, it is smart to seal the mold material in heavy plastic to protect the people who handle it in transit and prevent spreading large amounts of the mold into the building as you carry the material out of it.
If the mold is on a hard surface but occupies less than 10 square feet wash the area with soapy water (scrubbing with a brush may be necessary), rinse and allow the area to dry before repainting. If you have asthma, severe allergies and a weaken immune system get someone else to do the clean up.
Larger areas (greater than 10 square feet in area) should be cleaned by someone with experience in doing this type of work. Remember, determine what caused the moisture problem and correct that problem. Otherwise, mold is likely to recur.
Is it possible to completely eliminate mold from the inside of a home or office building?
The answer depends upon what is meant by "completely eliminate mold." To keep a building completely free of mold spores requires very efficient air filtration and is only accomplished in special situations such as hospital operating rooms and manufacturing "clean rooms." Remember, mold spores are in the outside air virtually all the time and some of them will get inside buildings.
However, it is possible to keep mold from growing inside a building. Moisture control is the key to controlling mold in interior spaces. Air filtration can contribute to lowering mold spores in the air but is secondary to moisture control.
Should I use bleach to get rid of mold?
No. Although bleach will kill and decolorize mold, it does not remove mold. Dead mold can still cause allergic reactions. It is not necessary to kill mold to remove mold. Soap and water and scrubbing can remove mold from hard surfaces. The Environmental Protection Agency (EPA), the Center for Disease Control (CDC) and the New York City Health Department agree that bleach or other biocides should not routinely be used to clean up mold.
How do I know when the mold clean up is finished?
The mold cleanup is finished when there is no visible mold remaining and there is no dust or dirt remaining that could contain large amounts of mold and mold spores. Routine clearance testing for mold is not necessary. Leaving a few mold spores behind is not a problem if the underlying moisture problem has been corrected. Remember that mold spores are virtually everywhere. Even if all mold and mold spores are removed as part of the cleanup, spores from outside will re-enter that space. The spores won't be able to grow unless water is also present.
Where can I get more information about mold?
Environmental Protection Agency
Information on Mold/Moisture/Mildew. Available in HTML and PDF.
Center for Disease Control
Information on Mold. Various topics on mold including information about strains.
New York City Department of Health
"Guidelines on Assessment and Remediation of Fungi in Indoor Environments". A variety of informational resources regarding mold.
About the Author
Dr. Nathan Yost, MD is a Principal with the Building Science Corporation, a building and construction consulting firm. Over the last twenty years, Dr. Yost has been a home builder, and a medical doctor specializing in respiratory illness. NAR has hired Dr. Yost on a contractual basis to provide its members with information and analysis on the scientific aspects of mold and moisture issues. The information contained in this FAQ is strictly the opinion of Dr. Yost, does not reflect NAR policy, and should not be construed as medical advice.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
Transfer of Possession
Dallas/Fort Worth Real Estate Market
A transaction is considered "closed" once the deeds have been recorded. Then you own the home. However, it is not always possible for you to occupy it immediately. This can happen for several reasons, but the most common is that the seller may be purchasing a home, too. Usually, it is scheduled to close simultaneously with your purchase of their home.
It is sort of like being at a red light when it turns green. Although all the cars see the light change at the same time, the guy at the back of the line doesn?t begin moving until all the cars ahead of him have started.
As a result, it has become customary to allow the seller up to a maximum of three days to turn over actual possession and keys to the home. When transfer of possession actually occurs should be clearly laid out in your offer to prevent confusion later.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
A transaction is considered "closed" once the deeds have been recorded. Then you own the home. However, it is not always possible for you to occupy it immediately. This can happen for several reasons, but the most common is that the seller may be purchasing a home, too. Usually, it is scheduled to close simultaneously with your purchase of their home.
It is sort of like being at a red light when it turns green. Although all the cars see the light change at the same time, the guy at the back of the line doesn?t begin moving until all the cars ahead of him have started.
As a result, it has become customary to allow the seller up to a maximum of three days to turn over actual possession and keys to the home. When transfer of possession actually occurs should be clearly laid out in your offer to prevent confusion later.
So if you would like help buying and/or selling a home, give me a call at 817.328.2390 or E-Mail Bill@C21-Inman.com and visit my web sites: www.C21-Inman.com or www.C21DFWTX.com
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