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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

What is a Real Estate Agent’s Role in Helping Sellers?

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You want to find a realtor that will make the process as easy as possible for you while maximizing your profit when trying to sell your home.

You may be a new agent, and wonder what sellers expect from you. They want you to represent them above all else. They want you to be transparent, to trust you and to minimize any headaches that they may experience.

The following are some of the skills that a great agent for sellers should possess.

Pricing

One of the best things a seller’s agent can do for you is to price your home properly. Many people describe pricing a home as both an art and science.

Agents use recent comparable sales to make their decisions. Knowing the local market and having experience are key to being able to use intuition.

A good agent will find the right price balance to keep sellers competitive while ensuring they get what their house is worth.

A real estate agent will conduct a comparative analysis of nearby homes that are currently on the market, have pending sales, or may have just sold. Your agent may have sold these comps, or at least seen them personally.

You might also wonder how an agent can be better than an online model of valuation. These tools have a high error rate. Zillow’s online calculator, for example, estimates the value of a home at around 20% of its actual value in 87.6% cases. This leaves a large margin of error. These tools cannot account for the nuances or variables that an agent experienced in pricing homes can.

Sellers’ agents should be present at inspections and appraisals in order to prevent any spin from the buyer agent. If an inspector states that a home will require a new air conditioner in five years, then the agent representing the buyer may spin the information by saying that the unit is defective. This can be prevented by a seller’s representative.

Get Your Home Ready

Cleaning a house is not enough to get it ready for the market. Listing agents are experts at maximizing the value of your home.

Listing agents can find out what improvements you should make and recommend who to contact to help.

Your agent will discuss the potential return on investment before you decide to make any improvements.

The agent will also stage the property if necessary. The agent can stage the property by removing clutter, furniture and other items that are not necessary. The agent knows how to help buyers imagine themselves and their belongings in the space.

Your agent can then hire a professional photographer to take photos of your home once it is in picture-perfect condition.

Marketing Expertise

Marketing is a key skill for a seller’s agent. They will know what buyers want and how to make your house appealing.

Your agent will showcase your home in the MLS as well as on social media. They do traditional marketing, such as open houses and flyers.

Buyers screening

It is stressful and time-consuming to try to sell your home. You don’t want to have to deal with unqualified buyers. Your agent will ensure that no one wastes your time. Even a buyer that is truly interested in buying your house might not be able to get financing.

The agents earn money by way of a commission. It is in both your and their best interests to eliminate and screen out unqualified buyers.

Your agent will only work with buyers who are pre-approved and have gone through financial verification.

A good seller’s representative can provide you with a great deal of value. Many of the things that they do, you cannot or may not want to do yourself. 

 

Original Blog: https://realtytimes.com/archives/item/1044820-what-does-a-real-estate-agent-do-for-sellers?rtmpage=

Land Just Listed in Gordon, Tx!

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Property located in the Palo Pinto Hills, just off I-20. This property has a cut stone quarry, primarily sandstone rocks. The 326-acre Palo Pinto Hills property in Texas is just minutes away from Gordon. This property sits among rolling hills with breathtaking views of the countryside. It is mainly wooded with hardwoods, pines and a mixture of both. The property is also home to several small creeks that run through it during wet conditions, which provide excellent habitats for wildlife. The property is ideal for many uses including camping, hunting, fishing and enjoying the quiet country life.

New Listing in Gordon, Tx!

For any real estate questions or information please contact us today!

Using a Cash-Out Refinance for a Second Home

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You can use the equity in your home in a number of ways. You can use it to purchase a second house.

If you are considering a cash-out refinance to purchase a second house, there are a few things to consider.

What is a Cash-Out Refinance?

Cash-out refinances are a way of refinancing your mortgage by converting your equity into cash. You get a mortgage that is higher than your old balance and the difference in cash.

One of the most common reasons for refinancing is to get better terms than what they had with their previous loan. You might refinance, for example, to lower your monthly payment or take advantage a lower rate of interest. Cash-out refinances are a great way to tap into your home’s equity and get cash.

In a cash-out loan, your home is used as collateral. You’ll get a new mortgage that is larger than the amount you currently owe.

How to Buy a Home with a Cash-Out Refinance 

Cash-out refinancing is only possible if your home’s current value is higher than the balance of your mortgage.

A lender will allow you to withdraw up 80% of the value of your house, minus any remaining balance.

You can use the money you receive to put down your next property.

As with a conventional refinance loan, you still need to qualify.

In most cases, lenders will require at least a credit score above 620 and a debt to income ratio of 50%, but preferably lower.

If you plan to use the cash-out refinance proceeds to purchase an investment property, expect to put down anywhere between 15 and 25%.

If you are buying a primary home, a lower down payment is accepted.

Lenders do not have any guidelines that prohibit you from using the proceeds of a cash-out refinance to pay for the down payment on another property.

Considerations to Keep in Mind

You can choose between a fixed rate or variable rate loan when applying for a refinance cash-out. If you receive a variable-rate mortgage, your payments may increase depending on the interest rates.

If you refinance with cash out, the interest rate of your new loan could be higher than that of your original loan. This means you may end up paying more over the life of your loan.

You need to decide if you can afford the extra interest you would pay if you bought another property. This can also extend the repayment period of your current debt, so it’s not always a good choice.

Closing costs can range from 2 to 5% of your new refinance loan. These will be deducted from your cash payout. You can’t add them to the mortgage.

A home equity loan is another option. Home equity loans do not have closing costs. This is a major advantage. This could be cheaper than a cash out refinance, if you have a mortgage with a lower rate than what is required.

The biggest disadvantage of a cash-out refinance, is that you will have to use your primary residence as collateral, even if it’s to purchase another home. Your lender can prevent foreclosure on your primary residence if you default.

 

Original Blog: https://realtytimes.com/archives/item/1045164-using-a-cash-out-refinance-for-a-second-home?rtmpage=

What’s the Contrast Between a Listing Agent and a Selling Agent?

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When buying or selling property, we always recommend that you have an experienced real estate agent by your side. If you decide to use a real estate agent, you might be wondering what the difference is between listing agents and selling agents. And which one would work best for you.

Listing agents and selling agent are different in that they represent different parties. While selling agents assist buyers in finding properties that suit their needs, listing agents promote properties on behalf of sellers. Both agents are essential to a smooth transaction and each has their own strengths and abilities.

What can you expect if you hire one? We’ll look at what selling and listing agents do and how they can assist you in closing your land deal.

Listing Agents: What are their responsibilities and what is the purpose of them?

You want to have someone who has experience on your side when you are ready to sell land. Listing agents help sellers in all aspects of marketing, listing and selling their properties.

A listing agent‘s main tasks include:

  • Price guidance and comparative research
  • Optimizing Land Listings, including coordination of videos, photos, and text
  • Overseeing marketing efforts
  • Coordination of showings
  • Networking in the real estate community
  • Receive offers and streamline buyer-seller communication
  • Organizing closing documents

Ask about the experience of the listing agent in selling land. Some agents may be skilled at selling residential homes but less confident (or less connected) in the land market. You need a listing agent that knows the market well and will guide you at every stage of the sale.

Selling Agents: Their Purpose and Responsibilities

Selling agents are also known as buyer’s agent. They work with land purchasers to help them find and buy their ideal properties. If you’re on the land hunt, a strong selling agent will be able to provide you with careful guidance backed by market insight. A good agent will also help you with all the tasks you need to complete before closing.

Selling agents may have specific responsibilities, such as:

  • Helping buyers to define their property needs in terms of location, price and land use
  • Looking into zoning laws and restrictions
  • Sorting listings and providing buyers a curated list of properties that match their preferences
  • Helping with pre-approvals and financing questions
  • Arranging showings 
  • Composing offers and communicate with listing agents
  • Helping to arrange inspections, surveys and other steps of the closing process

You should do the same thing as you would with a listing representative and make sure that a selling agent is familiar with land before you hire them. Selling agents who work primarily in the housing industry may not be familiar with the intricacies of buying land. As a result they won’t be as helpful in coordinating the various intricacies involved.

Preferred Properties of Texas  is here to help you find the right property to fit your needs. Gives us a call today!

Original Blog: https://www.landhub.com/land-news/whats-the-difference-between-a-listing-agent-and-a-selling-agent/?inf_contact_key=2e36e998235305cbb9d82c06cb3d63b2680f8914173f9191b1c0223e68310bb1

When is the best time to lower your home’s listing price?

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Some buyers are relieved that the housing market in the United States is finally cooling. Home sellers rush into the market to try and take advantage of any remaining price boom.

The median asking price for homes is up 17.8% year-over-year. But sellers are starting to realize the writing on the wall, as buyers become more cost conscious with the rising interest rates. The price drop is the result.

How do you know when it’s the right time to reduce the price of a house you have on the market?

The price is usually the reason your home is still on the market

It can be frustrating if your house has been on sale for some time and you are not receiving the offers you expect or if you do not receive the attention that you believe it should. According to real estate experts, it’s usually the price that is at fault.

If the buyer feels that the price is good, they can ignore many other factors.

You may be charging too much if you get little traffic or no offers. It’s possible that you get a lot of traffic but your offers are lowball. Thirdly, if you have good traffic and negative reactions from buyers, it may be time to pay attention to what they’re saying. It’s important to listen to buyers who consistently comment on the price.

When to Lower the Price

You should act quickly if you believe you need to reduce the price of a home. It is best to lower the price of your home on the market within two weeks, especially when inventory remains low. You’ll usually see the most activity in the first 21-days after your house is listed, so take advantage of this.

You may also want to consider some indicators of the local housing market, such as the average number of days that a home is on the market.

Some real estate professionals recommend a price reduction after a home has been on the market for 10 days.

Before reducing the price, your agent should undertake marketing measures. Perhaps they will need to review your photos again and make sure they are good. You should also list the home in several places and address any feedback from buyers.

Learn about price cuts

It is not easy to reduce the price, and you may have to do so more than once. Your potential for needing to adjust prices increases as your time on the market increases.

You should not make more than three price cuts. You will raise a red-flag to potential buyers if you reduce your price more than three times.

It is also important to reduce the price in a strategic and calculated way. If you started with a high price, you might reduce it by 4% or no more than 9%. You might need to make a small cut if your price is comparable to the market value.

Some real estate agents believe it is better to reduce the price of your home in one go, to avoid having to do it again. You should discuss this with your agent. It’s possible that making multiple small cuts will just slow down the sale of your home. This is not what you want.

 

Original Blog: https://realtytimes.com/archives/item/1045118-when-should-you-lower-your-home-s-listing-price?rtmpage=

 

Loan-to-Value Ratio Break Down

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You’re going to hear many terms when you buy a house, and some may be unfamiliar. The loan-to value ratio, or LTV, is one of them.

LTV is the comparison of the amount you want to borrow versus the appraised value of the home you are trying to purchase. This comparison is used by lenders to decide whether to approve a loan or not. LTV can also be used to determine whether you need mortgage insurance.

The higher your LTV, the greater risk you may pose to a lender.

The loan-to value ratio tells you how much you own in relation to the amount you owe for your mortgage. LTV is used most often for mortgages but can also be used for refinancing and car loans.

Lenders will not only look at the LTV. Lenders will also look at your credit score, how much you can afford to pay each month and the condition of what you are trying to purchase.

You’ll be in a much better position to obtain higher LTV loans if you have a good credit rating. You may be denied approval if you have a large LTV ratio. Or, you could have to pay a higher rate of interest. Mortgage insurance may be required, which reduces the risk of the lender.

How is the loan-to-value ratio calculated?

You can calculate the LTV ratio yourself. Divide the mortgage amount by the appraised value and then express it as a percentage.

If you bought a house with an appraised value of $100,000, and put down only $10,000. You would borrow $90,000. This leaves you with a LTV of 90%. If you made a downpayment of $20,000, your LTV would be 80%.

The more money you get from a lender, the higher your LTV and the greater the risk that they are taking.

Collateral and LTV

When the LTV calculation is used to determine a loan’s terms, it’s likely that the loan involves collateral. A loan is secured by a lien. This lien remains in place as you pay your mortgage. If you fail to make payments, your lender may take possession of the home and sell it. The goal of a lender is not to seize your property. Instead, collateral allows them to get some money back in the event you default on a loan.

The idea is that if a lender gives you only 80% of your property’s value, they will still be able to sell it at a discount and still make their money back.

Negative equity is when you get a loan for more than what you paid for the asset. A negative equity is a LTV ratio greater than 100%. It’s an underwater mortgage in that situation.

What should the LTV ratio be?

LTV is usually around 80%. You’ll need private mortgage insurance if you borrow over 80% of a house’s value. This will give your lender protection. Your lender will often let you cancel your insurance once you reach 80% LTV.

You may be able to get an FHA mortgage with only a 3% deposit, which would make your LTV at 97%. Mortgage insurance would be required, possibly for the entire term of your loan.

You can increase the LTV by getting a home equity line of credit. If the value of your house increases, then your LTV will decrease.

There is no definitive answer to the question of what LTV you should have in your mortgage loan. The closer it is to an acceptable percentage the better. However, there are many other factors which affect the decision.

For any real estate questions or information please contact us today!

Original Blog: https://realtytimes.com/archives/item/1043363-loan-to-value-ratio-explained?rtmpage=

Preferred Properties of Texas

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