North East Tarrant Real Estate Blog

1. Check your credit before looking for a mortgage lender.  You’d be surprised how many people think they have good credit, only to find out that there are inaccuracies on their credit report that will affect their ability to get the loan they want.   
 
2. Get pre-approved before looking for homes.  This not only helps us know what price range of home to look for, but also makes the process significantly smoother when we go to make an offer.  If needed, I can help you find a loan through my many industry contacts.

3. Don’t become “house poor”. Some people will buy the most expensive house they can afford, but then have no money left for home maintenance, furniture, etc.

4. Set your expectations up front.  I want you to be satisfied in your purchase, but there is no such thing as “the perfect home”.  Buying a home is always a compromise between what you want, what you need, and what you can afford.  To facilitate this, I highly recommend that before we start, we sit down and discuss what features you must have versus what features you’d simply like to have.
 
5. Before we actually start looking at homes, try to decide if you want to look at new homes or existing homes.  Going back and forth between the two usually just makes the home buying process more confusing.  By the way, many people don’t realize that REALTORS can help with the purchase of new homes, but it’s true.  In fact, one of my specialties is new home sales and my fees are generally paid by the home builder.  Also note that regardless of your decision to go with a new or existing home, you’ll get the same quality service from me. 

6. Don’t ask too many people for opinions about what makes a good home, or whether a particular home is a good purchase.  This will drive you crazy if you let it. Keep in mind that everyone has a different idea of what makes a good home so I recommend selecting just one or two individuals to turn to if you feel you need a second opinion. If you wish, I’d be happy to be one of those people.

7. Decide when you’ll be able to move.  If applicable, knowing when your lease is up, whether you can sublet and how tight the rental market is will greatly help in this regard.  If you need to sell your existing home first, we have to coordinate your home sale vs. purchasing your new home.  When and how we market your existing home is highly dependent on the local market where you are buying and selling.

8. Make sure you consider resale value when purchasing.  Many people think they will be in their new home forever so they don’t think about this.  Unfortunately, people average about 7 years in a home before they sell.  Even if you don’t relocate or move up sometime soon, by thinking about resale value beforehand, you’ll insure your investment is sound.  I can help in this regard by using my industry knowledge and area expertise to advise you on the resale value of your home purchase.

9. Don’t be dumb: get a home inspection.  There are too many potential hidden defects.  A home inspection won’t guarantee there are no problems, but it may find something major you would not have known about otherwise.  Also consider getting a home warranty from the seller to cover anything that crops up after the sale. 

10. Get help. Buying a home is likely the largest purchase you will ever make.  Doesn’t it make sense to hire me as your buyer’s representative?  Unlike a listing agent whose first duty is to the seller, I, as your buyer’s representative will work only for you. Plus, my fees are generally paid out of the seller’s commission payment so you probably won’t have to pay me anything for my services.  What a deal!

The neighborhood you choose can have a big impact on your lifestyle.  The convenience, safety, and available amenities in the area all play their part.  Here are some tips to help you choose:

1. Determine the maximum travel time to and from work you’re willing to tolerate.  Traffic in some areas of the DFW Metroplex can be excessive so don’t just use mileage to judge if your commute will be OK. I can guide you in determining which routes would work from any given community to your employer’s place of business.
   
2. Talk to me about other activities your family does routinely – for example, movies, health clubs, churchs, parks, and shopping areas you visit frequently. We can discuss travel time from each neighborhood you’re considering to your most common activities.
 
3. Check out the school district. TEA keeps statistics on school district accountability ratings as a determinant of school quality.  School districts are a BIG deal in North Texas so even if you don’t have children; a home in a good school district will be easier to sell in the future. If you do have kids, consider a visit to the schools your children will be attending to make sure they meet your needs. Even in good districts, individual schools can vary widely. 
 
4. Find out if the neighborhood is safe. While I can provide general crime statistics, it is a good idea to ask the local police department for crime statistics on individual neighborhoods. Consider not only the number of crimes but also the type.  For example, property crimes versus violent crimes. Also, is the trend increasing or decreasing? Obviously this would also be useful to know.
 
5. Determine if the neighborhood is economically stable. Again, I can give you general statistics, but if you are concerned, check with the economic development office for the area to see if income and property values are stable or rising. Consider also: what is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population.
 
6. See if you’ll make money. I can give you information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. I also keep up with planned developments such as new schools, retail growth, or new roads that might affect value.
 
7. See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and look for yourself.  While I can point you to specific areas, only you can choose where you want to live.  What is the character of the neighborhood? Are the homes tidy and well maintained?  Are the streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your kids?

One of the most misunderstood issues in real estate today is the concept of agency and agency laws.  Frankly, many individuals these days buy a home using an agent without understanding what the duties and responsibilities that agent has to them.  Here is a simple explanation of agency within
Texas: 

1.         Buyer’s agent (also known as a buyer’s rep). This is a real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The buyer’s rep works in the buyer’s best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or more typically, the buyer’s rep is paid by a commission split with the listing broker.  It is important to note that buyer agency should only be created by a written agreement to insure the buyer and the agent fully understand the agreement. 

2.         Sub Agency (also known as a subagent). A subagent is an agent working with a buyer in a transaction, but unlike #1 above the agent does not have a representation agreement with the buyer.  In this case the agent’s fiduciary duties are to the seller, NOT the buyer, since the seller is the only one with a signed agency agreement.  It is called subagency, since the agent is essentially working for the agent that represents the seller.  A buyer can expect to be treated honestly by the subagent, but needs to understand that a subagent cannot assist the buyer in any way that would be detrimental to the seller.  This includes negotiations, disclosures, etc.  The bottom line is that because this arrangement protects neither the buyer, nor the agent, many agents these days refuse to work as a subagent.

3.         Intermediary (Also known as dual agency). Intermediary is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Such relationships do not carry with them all of the traditional fiduciary duties to the clients. Instead, intermediary brokers owe limited fiduciary duties. Because of the potential for conflicts of interest in intermediary relationships, it’s vital that all parties give their informed consent. In
Texas, this consent must be in writing.

4.         Designated agent (also called, among other things, appointed agency). This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency only happens in intermediary relationships and is designed to avoid the problems inherent in intermediary relationships. The designated agents are able to give their clients virtually full representation, with most all of the attendant fiduciary duties. Note that the broker still has the responsibility of supervising both groups of licensees. 

5.         Nonagency relationship (called, among other things, a transaction broker or facilitator).
Texas does not allow this form of agency, but I have included it here for the benefit of those relocating to or from other states.  In the states where this is allowed, the real estate licensee is permitted to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.  Again, because there is little or no duty to protect the consumer, I personally would avoid these types of relationships, just as I would avoid subagency.

(Please note that I am not an attorney and the above information should not be construed as legal advice.  If in doubt, please seek assistance from your attorney for further information on agency law and how it effects you.)