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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

What is a Title Search?

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It’s exciting to buy a home. It can be stressful and overwhelming, because there are many steps to take to reach the closing.

One of these steps is a title search.

You may think that the seller has the right to sell the home when you buy one. It’s not always true. You may find that someone else has a claim on the property.

A property title search can be useful in this situation.

What Happens during a Title Search?

A title search can be used to confirm that the property you are buying is owned by its legal owner. A title search will also reveal if there are any liens or claims against a property which could affect your decision to buy it.

A property title is not the same as a deed or a document.

The title refers to the concept of ownership rights.

A title company or attorney can perform a property search. They want to make sure that there isn’t another entity or person that could claim a stake on the home.

A title search is necessary if you are getting financing. Mortgage lenders will require you to do one before they approve your loan.

Who does a title search?

A title loan company or an attorney may do the search. The location of the home you are buying will determine who does the final search.

As a buyer after a contract has been signed, you can ask your attorney to order a title search. The attorney can complete the work or pass it on to a title company. The completed report is then sent to the seller’s agent. The seller’s agent is responsible for managing and resolving any issues that may arise.

You can find a variety of information sources when you conduct a title search.

County Land Records
* Deeds
* Property plats
* Tax Liens at the State and Federal Level
* Divorce records
* Bankruptcy court documents
* Construction liens
* Judgments

A title search will also reveal details about mortgages that are associated with the property.

How long does it take?

A title search could take anywhere from a few hours to a couple of weeks. The older the house you are looking to buy, the longer it will take for a title search because there may have been several owners and transactions.

What if there are issues?

Some of the issues that may arise during a title research include:

* A broken chain in the title. In this case, the chain may be missing a deed. This is common for older homes.
* Incorrect description on the deed. There could be an incorrect or missing description in a deed. This would require obtaining a correct deed.
* Missing interests. If there is a transfer through an estate, then the heirs of that property must have relinquished any interest. If they haven’t, you will need to obtain deeds to release the property from those who have an interest.
* Liens are a legal claim on a property that is often used to recover a debt. Title searches can reveal if a lien is on a property, and if it’s expired or if payment is required.

A title search is an important part of the home buying process. If you have any questions about the title search process or its results, speak to your Realtor.

It could be costly and stressful to deal later with a lien or judgment. If you buy a house and there is a judgment on it, then it could become your responsibility.

Original Blog: https://realtytimes.com/archives/item/1042638-what-is-a-title-search?rtmpage=

Shopping For Mortgage Rates the Right Way

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You’ll want to shop around for mortgage rates when you are ready to purchase and finance a house or refinance a mortgage. Every day, lenders set their rates. During a volatile, but not unheard of, mortgage market, lenders can set their rates more than once a day. The Fed does not set the typical 30 year fixed-rate mortgage. It is set by the individual lender. The Fed does influence mortgage rates, but only indirectly. Although some adjustable rates may reflect Fed action, your fixed rate loan is still in the hands of the lender.

How do you compare rates? Here are some things that you should do:

Compare rates the same day.

Mortgage rates are affected by market conditions. A rate quote given on Monday may be different from one on Thursday. To be fair to yourself and to the market, you should set aside a day to shop for rates. When you look at rates on a site, be sure to pay attention to the date that they were posted. You need to make some phone calls if it was posted a few days ago.

Shop at the same time every day.

You can help yourself by shopping the same day. The rate quoted in the morning may be different by the afternoon.

Shop for the same program.

Get a quote only for the exact same mortgage program. You cannot compare the rates of a 30-year loan with those for a 15-year loan, for example. You shouldn’t compare fixed rates with adjustable rates.

Points?

If you are shopping in the morning and getting quotes for 30 years, be sure to get the exact program. For example, get a quote on a 30-year loan with a single point. Get a quote for the same “lock” period. Most lenders offer different rate guarantees or locks for different time periods. A lender may offer a 10-day lock, 30-day lock and so on. The longer the lock, the higher the rate.

Compare lender fees. A lender may offer a better rate than others, but they might also charge higher loan fees.

Sometimes it can be difficult to compare apples with apples, but by following these steps you will be able to do just that.

Original Blog: https://realtytimes.com/archives/item/1047958-shopping-for-mortgage-rates-the-right-way?rtmpage=

52-Acre Property Just Listed in Gorman, Tx!

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The 52-acre land is near DFW. This property is surrounded by oaks, elm and pecan trees. It is currently Ag-exempt and features 2 stock tanks. The landscaped areas are breathtaking and offer abundant wildlife. Schedule your visit today!

TBD Co Road 363 in Gorman, Texas

Durlyn Stokes- Broker

Durlyn Stokes

254-592-6187

Email Durlyn

I am Durlyn Stokes, a real Estate Broker for Preferred Properties of Texas. I have an extensive background in Business and Financial Accounting. I graduated from the Eddie Bauer College of Business at the University of Houston. I have experience in helping clients find the home of their dreams. I specialize Residential, Farm and Ranch, commercial and can assist with 1031 exchanges. I will customize your criteria and exceed your expectations. . I am dedicated to my clients to help them reach their expectations in buying and selling their homes or Ranches.  Connecting people with their dream properties is what I do-and I am passionate about what I do! Contact me today.

How to Buy Your First Real Estate Investment

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Real estate investing may seem like a lofty dream, but you might be closer than you think. Real estate investing does not have to be a huge portfolio.

The first time you buy an investment property, it can be a daunting experience.

There are some general tips that you can use regardless of your budget.

Decide Your Goal

Knowing your goals is the first step to buying your first real estate property.

Are you looking for passive income or capital quickly? Both are valid goals, but only one is right for you. Even the best real estate agent won’t be able help you find the perfect property until you know what you want. 

Rent should cover your mortgage and other expenses.

But are you a good landlord? How handy are YOU? You need to consider the cost of maintenance and repairs if you are not handy.

You should also pay off any personal debts before investing in real estate. You need to pay off student loans, credit card debt, and medical bills before you can be a realistic real estate investor. You need to give yourself some breathing room financially.

It’s important to understand the risks involved in your goals.

You may have to pay bills even if your real estate investment is vacant for longer than expected.

You could also be hit with unexpectedly large maintenance bills. You might have to replace your air conditioner or install a new roof.

Plan for what you will do if your tenant stops paying rent. You may not be able to get back the months of rent that you haven’t received.

In this guide, we’re mainly talking about investing in rental properties. However, buying a property to flip comes with its own challenges. It’s almost never the case that you will have to pay more for the work you do on a flip than you expected. You may also find that the home stays on the market much longer than expected, which will result in higher costs.

Save a Down Payment

If you plan to buy a property as an investment, you will need to put more money down than if you were purchasing a primary residence.

Renting a property means you’ll need to put down at least 20%, and mortgage insurance won’t be an option.

You should also have two other financial goals in mind while you are saving for your down payment. First, you should build up your cash reserves for when things don’t go as planned. You should also work to improve your credit score, as you will need to have a high score to qualify for a mortgage.

The Mortgage Process for an Investment Property

Calculate your monthly payment and rates if you are buying a property to invest in rather than as a primary residence. You can then get preapproved so you know exactly how much you can spend.

It is advantageous to work with a home-loan expert who has experience with investment properties, as the rules are different than those for buying a primary residence.

One of the most common mistakes made by new investors is not securing funding before searching for a property.

Preapproval will allow you to move quickly when you find the property you are looking for. You won’t be disappointed if you discover that you do not qualify for enough funding to purchase it.

If you are buying a rental, you will need to provide two years’ worth of tax returns, your W-2s for the past two years, and two months’ worth of bank statements. They will also verify your assets.

A lender will want to make sure you have six months’ worth of mortgage payments saved up in case you encounter any unexpected problems.

You need to be prepared and do your research. If you are not prepared, investing in property can lead to financial disasters.

Original Blog: https://realtytimes.com/archives/item/1043224-how-to-buy-your-first-real-estate-investment?rtmpage=

Ten Mistakes That Will Keep Your Home From Selling

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You need to get every advantage possible when you are selling your house. There are very few homes that can be magically market-ready without some help. It’s time to focus if your home requires more than just a little assistance. Listing your home in a bad condition will only lead to frustration. In this case, frustration is: Your home being on the market without any offers for months or an offensive, lowball offer.

Avoid listing your home with:

1. Excessive damage

You may have neglected to maintain the property, either because it was rented out and abused by frat boys or you simply didn’t care for it as much as you should. The buyers will not be interested in those holes that make it look like the room was used for a boxing workout, or the wood floors that have been scratched up by dinosaurs. They also won’t want a yard with only weeds that are two feet tall. If you don’t want to sell your home at a price where buyers will only focus on the positives and ignore all the negatives, then it needs some work.

2. Bathroom carpet

It’s gross. Everyone who enters that bathroom thinks one of two thoughts: 1) there’s got to be mold underneath; 2) there’s got to be pee all over the floor. You’ll want this update done before listing your home. If you already have your home listed but it’s not selling, this is something to consider.

3. Big, nasty stains

Buyers shouldn’t be able to tell where your dog marks or where you kids spilled a bowl of holiday punch. Potential buyers won’t even enter your home if the carpet stains are so bad. Nobody wants to purchase a pigsty. Invest in a new carpet. You won’t need to lower your price, so you’ll get the money back.

4. Pet smells

They smell. Since you are surrounded by them every day, you may not notice, but potential buyers might. Spend money on air fresheners and deep clean your carpets and upholstery. Remove cat boxes before showings. You don’t want a buyer to refer to your home as “the smelly one.”

5. Loud dogs that bark every time anyone approaches the house

Last word about pets. Barking is inevitable, whether your dog barks or the neighbor’s. You don’t want that to happen on the day of an open house. Offer to pay for the doggie daycare of a neighbor’s pet. This can help eliminate the problem and create the peaceful setting that buyers desire.

6. Your dead lawn

A lack of curb appeal will not necessarily ruin a deal. You may not even be able to convince potential buyers to leave their car. Buyers will assume that if the yard in front is messy, the same mess is inside.

7. The bad agent

Face it. Some of them will be winners. Get a new agent if your current one is rude, uninformed or uncommunicative. A client who doesn’t receive the attention they deserve is unlikely to be satisfied.

8. You’re sloppiness

The drawers and cabinets that you stuffed everything in when you cleaned out your kitchen and bath cabinets may be a deal-breaker for buyers who are picky. Buyers are known to open things. Buyers open drawers, cabinets and closets. They may think that there is not enough space if these areas are cluttered and overcrowded.

9. Unreasonable Sellers

If you’re reasonable, big problems can kill a deal, but can also seal it if they aren’t too serious. Your inspection may reveal plumbing, roofing, or electrical problems (or even all three!) If you refuse to negotiate and the seller is unwilling to make a deal, that sale will be lost.

10. Bad Taste

When it comes time to sell, your poor decorating choices or failure to stay up to date with the latest trends could haunt you. You can see this on House Hunters, where buyers get hung up over paint colors. Simple updates will make it look new and fresh, giving buyers something to fall for.

Original Blog: https://realtytimes.com/archives/item/1017958-20180614-ten-mistakes-that-will-keep-your-home-from-selling?rtmpage=

How is a Home’s Fair Market Value Determined?

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Fair market value is a real estate term that both buyers and sellers should be familiar with. The fair market value is the amount a house would sell for if logic were to be the only factor. The fair market value is what a seller could get if he or she waited to receive the best offer.

Both buyers and sellers will negotiate until they reach a price that they both agree upon.

While negotiation is a big part of buying a home, understanding fair market value is also relevant.

Fair market value is not everything. Fair market value is not just what the appraised price is or what the parties think the value is. Tax value is not included in the fair market value. Fair market value can include these factors.

Calculating fair market value

Home values are affected by the fluctuations of the market. There is no specific formula for determining fair market value. The value of a house is primarily determined by supply and demand.

When calculating the fair market value, some elements can be taken into consideration.

* Current market trends
* Comparative market analysis of similar properties in the same area
* Having an appraiser determine the value
* Calculating fair market value using price per square foot

You can use any of these factors in combination to arrive at a fair value.

Real estate agents excel at determining the fair market value, and this is why people hire them instead of trying to sell their home independently. You should know the facts about the property, but also the market in your area and the overall economy.

What is fair market value?

The fair market value will be used to determine a home’s sale price. However, there are caveats. If the fair market value of a home is $250,000, but the house is in a popular area, then the asking price could be as high as $300,000.

Fair market value can be applied in other contexts besides real estate, as well as other real estate-related applications.

The property tax you owe your municipality will likely be based on your home’s fair market value. The longer you own your home, the higher your FMV will be. This means that your property tax will also increase.

Your home’s value can also impact your tax credits, gift tax and estate tax.

If you give your home as a gift or include it in an inheritance, the recipient may be required to pay tax based on its fair market value.

If the person sells their home for more than it was appraised at when they received it, then they will have to pay capital gain tax on the difference.

The term fair market value can also be used in the insurance industry. Fair market value can be used to determine the amount of money you will receive for repairing your damaged property.

If your home is affected by a natural disaster and it’s evaluated below FMV, you might not get as much compensation.

Fair market value is not a formula that can be applied in all cases. The formula is often based on a combination of key metrics to determine the value of a house at any time.

Original Blog: How is a Home’s Fair Market Value Determined? – Realty Times

Preferred Properties of Texas

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