First Day of FALL!

Sep 21, 2017 | Real Estate

It may still be hot outside here in Texas, but today is officially the 1st day of Fall!! Bring on the pumpkins, fallen leaves, and hopefully soon- cooler temps. Fall is a great time of year for real estate. Now is a great time to buy or sell a home, give us a call at 214-620-0411. We would be happy to stop by for a FREE listing consultation and/or help you search for your next home. Happy Fall Y’all!

New Neighborhood Spotlight: Lakewood at Brookhollow

Sep 19, 2017 | New Neighborhood Spotlight, Real Estate

Many have noticed the new neighborhood, Lakewood at Brookhollow, going in around Rogers Middle School in Prosper. This new community features exciting amenities, convenient location, quality builders, and exceptional schools. Located in Prosper ISD, this community is located near the corner of Coit Road and Highway 380 in Prosper.

Currently, Britton Homes, Darling Homes, and David Weekley Homes are building homes in Lakewood at Brookholliow. Offering many great lot size options, there are several great floor plans to choose from with one of these builders. Future amenities in this community include a 5,000 square-foot clubhouse that will feature a fitness room, great room, and kitchen. Other amenities that will be offered include tennis courts, resort-style community pool, park, walking trail, and more! This community will be family-friendly offering something for everyone.

For more info on this community and builders, contact us at 214-620-0411 today. We have complete info and will stay in the know as the list of features for this community continues to grow!

Why Use a Real Estate Agent When Buying New Construction?

Sep 18, 2017 | Real Estate

One of the most common questions that we get is “Why do we need a real estate agent when buying a new construction home?” As with any home purchase, there are too many potential pitfalls, hidden risks, and complications involved in the process to guarantee a good result unless you have experienced help.  It is highly recommended to use an agent for many reasons and here are some of those:

Hiring the Right Builder

Without a doubt, one of the top reasons why you should have a buyer’s agent when purchasing a new home is to be able to get a professional’s advice on the reputation of the builder. One of the best things about working with a good agent is that you benefit from their network of agents, vendors, lenders and other industry professionals. Word definitely gets around when businesses or service providers don’t take care of their customers in the real estate industry.  If there is a builder in your area that isn’t reputable, chances are your agent will know about it. On the flip side, your agent is likely to have heard about the builders that go above and beyond for their customers as well.

Even with a builder with a great reputation, there are many people that are involved in building your home and there are going to be issues throughout the whole process. When these issues arise, a reputable builder will work to make the customer happy. Other things that can also affect the build process include weather, labor shortages, as well as issues with materials. Your agent can help stay on top of the process to look ahead if any problems are foreseen. They can help be your eyes and ears taking on the stress so you don’t have to!

An agent can help you also compare builder offerings based not only on price or price per square foot, but also on standard features, construction options, lot offerings, structural upgrades, as well as understanding what items you see in the model may not be included.  Builders love to upgrade the model and sometimes it can be frustrating throughout the process when a buyer doesn’t understand the various features that are not included and has other expectations.

Remember, to the builder you are one customer, one house; but when you bring an agent along with ties to other customers and industry colleagues, they may have more leverage with the builder over the entire experience since the agent could mean repeat business.

Your Agent Can Help Guide You

When it comes to lot, neighborhood, upgrades, and plan modifications- the best value in real estate is not always clear without extensive experience to help guide you. Picking out the best lot, the right community for your lifestyle, the neighborhood features you want and the upgrades that are worthwhile – your agent can help out with all of these things. During this exciting time you could just go with your gut, but working with your agent can help ensure you make choices about your purchase that will best serve your interests.  You are the final decision maker, but the best leaders in life have capable advisers to help guide their choices, so why not get an agent with multiple experiences in new construction and is familiar with the process.

It starts from choosing the neighborhood and the lot.  The lot you choose can make a big impact on your value now and in the future.  Having an agent that understands what lots and features are best for value and resale is crucial.  What is the school district, what is the location in the neighborhood, are there future phases, what is around the lot, what is the size of the lot, how much is the lot premium? All of these questions can make an impact on the long-term value of your property.

Choosing upgrades is also a fun process, but also one to be entered into carefully. Most likely you will not be able to get everything you want without blowing your budget. An agent can help you determine which are the best options to include now to make the best use of your budget and get the best value and which options you should save for later.  It’s also always beneficial when making these decisions to have someone experienced to “bounce” ideas off of as well as when you aren’t sure what direction to go. An agent may have other things to consider you haven’t thought of.  There are also so many upgrades offered, some not even on any builder list, which not everyone remembers to ask about. Your agent may know of some you haven’t even considered, but would love to have in your new home.

Negotiations and Paperwork

Real estate purchases involve a lot of paperwork, documents that can be confusing and overwhelming…this is where your agent will make sure you understand the paperwork and know what to do if there is an issue.  Your agent will verify that all aspects of the contract are understood by you and are comfortable with them. If there are any issues, the agent will notice them and be capable of explaining them clearly to you and how they impact you.  Typically, a builder’s contract is written in a highly protective manner that favors the builder so you need to understand it fully before signing. This is one of the many reasons it is imperative to use a buyer’s agent when building a home.

A strong negotiator understands the true value of all aspects of the deal. Your agent understands what you want and need. Your agent also understands what the builder values most. Because your agent sees both sides clearly, they are the one most capable of negotiating a deal that will be to your benefit, getting you what you want for the best deal.  Many times a builder sales rep will shoot straight with a real estate agent who knows what questions to ask and provide them the information to best structure a deal to make things work. That same sales rep is not the one to make the final decision and may steer an unrepresented buyer to not push as much on negotiations that an experienced agent knows can be made.  Remember as nice as the builder’s sales rep is, they work for the builder and are not there to represent your interests.

Keep in mind, however, that every market is different. If the builder is selling all their homes at full price and not having to give upgrades, don’t expect your agent to perform miracles. In some areas, builders can’t build the homes fast enough to keep up with buyer demand. Don’t expect a builder to discount when they don’t need to in order to make the sale.

The Entire Process

Anyone with the financial means to buy a new home can go find a builder and purchase new construction. Unfortunately, doing things this way puts the buyer at a considerable disadvantage. The builder and the employees of the builder are there to make as much money as possible and focused on the best interest and bottom line of the builder.

Having someone by your side the entire process that knows what is “typical”, what’s to be expected, when you should push back on an answer or how things should go is important when you run into any issues.  Having another person in your corner makes a difference so you aren’t going it alone.

Also make sure you have an agent that actually will be with you throughout the process from contract signing, to drywall walk-through, final walk-through with the builder and closing to make sure you aren’t missing anything and remembering to ask the right questions. There are agents that come with you to sign the contract and get their name on the paper and only expect to come in at the closing table again – ask your real estate agent when to expect to see them in the process.

With a reputable buyer’s agent, you get to step back and make the key decisions that will get you what you want – while the agent filters all the marketing, salesmanship and other noise into the facts that will help you make the best choice.

Last but not least….all of this is FREE to you!

Many people do not know that when using a real estate agent with your new home construction you get all of the benefits above for FREE! Definitely a win-win!

The cost of your new construction home is not any more if you choose to use a real estate agent. If anything, having an agent many times actually lessens your overall cost and certainly the stress!  The builder will pay your agent their commission at no added cost to you.

Real estate agents are paid out of builder marketing funds, not construction so you do not get any better deal by not bringing an agent along.  If you ever have a builder’s sales agent tell you they can give you a better deal without an agent, you should consider why they are saying that and immediately get your own representation. A reputable builder’s rep will encourage representation as they understand it makes the process smoother many times to have an experienced agent to help guide the buyer through the process.

We hope this list shows you what you can gain by having a buyer’s agent when purchasing new construction and someone representing you is paramount to your success. Give the Marr Team a call today; we would love to help you find your dream home because experience and knowledge is not expensive, it’s priceless!

Real Estate Terms to Know!

Sep 12, 2017 | Real Estate

Whether you are buying or selling a home during a real estate transaction you are going to run into a few terms you are unfamiliar with. Below is  a list of common real estate terms – and not so common terms – that you can reference as you move forward with your purchase or sale.

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Backup Offer

In a hot real estate market it is not uncommon for you to find the perfect home right as another buyer is signing a contract with the seller. While this can be frustrating, not all hope is lost. Real estate deals fall through all the time, for a myriad of reasons. You may not have control over whether the deal goes through, but you can make a backup offer that will put you first in line should the seller need another buyer.

A backup offer may not guarantee that you get the home you want, but it is a useful tool to keep you in the running in the unpredictable world of real estate transactions. See how a backup offer works in real estate sales. Understanding a backup offer well could be the key to getting the home you want!

Closing Cost Credit

Closing cost credits are a common request you will get from buyers when selling a home. They are also often referred to as seller’s concessions when a credit is given for something other than closing costs.

While at first, it can seem strange to be asked to help a buyer purchase your home, closing cost credits can be quite useful. They give the buyer more breathing room to take care of all the little things that need taking care of after purchasing a home, and they help you close a sale.

For instance, as a seller, you may be able to get a buyer to agree to purchase your home with existing problems by offering closing cost credits. The buyer can use the money saved to make the improvements after purchase.

Dual Agency

It is always important to clarify with a real estate agent who he or she represents – because it may not be you, or just you. In the case of dual agency, an agent will take over the role of buyer’s and seller’s agent, serving both the buyer and seller in a real estate transaction.Some states have made dual agency illegal, while others have strict rules that must be adhered to during dual agency. Whatever your state’s laws concerning dual agency, the fact is that it is an arrangement that does not serve your best interests.

In most transactions, the buyer wants to buy for as little money as possible, while the seller wants to sell for as much money as possible. Those two goals are at odds with one another, which means that a dual agent cannot effectively serve both parties. You are much better off with an agent beholden only to you, whether you are a buyer or a seller.

What many real estate agents do not understand about dual agency is you CANNOT by law give either the buyer or seller any pricing advice. The agent essentially must become a neutral party. In dual agency, both the buyer and the seller give up someone in their corner fighting for their best interests.

It is an awful arrangement. The only real winner in dual agency is the real estate agent. This is one of the benefits of having the Marr Team on your side, we have a sellers and buyers agent so that one never represents both sides.

Escalation Clause

An escalation clause is legal jargon a buyer can put in an offer that states that the buyer will outbid other offers on a home up to a certain price point. Escalation clauses are more common in seller’s markets. Escalators are designed to help a buyer win a bidding war which becomes quite common in hot real estate markets. While an escalation clause can be useful for the buyer, some sellers may find the addition of such a clause confusing. The seller may wonder why the buyer did not offer more if he or she was willing to pay the ceiling amount for a home. With an escalation clause, it becomes important that the listing agent understand them – many do not.

MUD (Municipal Utility District) Tax

A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage and other utility-related services within the MUD boundaries. Municipal Utility Districts are funded through bonds. Homeowners then pay off those bonds through MUD tax. As the debt decreases, MUD taxes may also decrease over time. Some neighborhoods, such as Light Farms, is in a MUD.

PID (Public Improvement District) Tax

A public improvement district (PID) is a taxing entity which can finance, construct and maintain public improvements. A PID may be formed to address any type of public improvement or service. It has authority to issue debt and to impose a mill levy against real and personal property within the district. Some neighborhoods, such as Mustang Lakes, is in a PID.

Pre-Qualification Vs Pre-Approval

Sellers need to know the difference between pre-qualification and pre-approval letters from a lender. A pre-qualification letter is relatively easy to get and simply states what the estimated borrowing ability of a buyer. A pre-approval letter is much more involved, requiring most of the documents and verification necessary to get a mortgage loan. When you are selling, you want a pre-approval letter to prove that a buyer is really in a position to purchase your home.

A pre-qualification letter is most useful for buyers who want to get an idea of what price range they can shop in. It is not adequate for a seller considering offers from buyers. If you are selling, do not settle for anything less than a pre-approval letter.

With a pre-approval the lender will mention that they have run the borrowers credit, as well as verifying their income and employment.

Private Mortgage Insurance

Private mortgage insurance, also referred to as PMI, is insurance that a lender will force you to take out as a buyer if you put down less than 20% on your home. PMI is there to protect the lender, who considers you a greater risk based on your lack of down payment.

Unfortunately, private mortgage insurance can boost your monthly mortgage payment noticeably, so most home owners are eager to get rid of it. The most straightforward way to eliminate PMI is to reach 80% of your mortgage. You can also try creative options like refinancing, appraisal, and remodeling.

Many home buyers will, in fact, go out of their way to avoid paying private mortgage insurance. Often seeking other means of getting a loan that doesn’t require putting down twenty percent. Private mortgage insurance is a good thing. Without it, many buyers would not be able to get into a home.

Right of First Refusal

A right of first refusal clause is a valuable tool for sellers who find themselves dealing with a home sale contingency. A home sale contingency is a clause that some buyers will put into offers that state they will buy a home – but only if their home sells first.While the home sale contingency is quite convenient for the buyer, it puts the seller in a weak position. But a right of first refusal clause provides an alternative for the seller.

The right of first refusal clause allows you to keep your home on the market. If you get an offer on the home, you inform the first buyer and give him or her a specified amount of time to eliminate the home sale contingency and purchase the home – typically 24 to 72 hours.

Title Insurance

Real estate title insurance is a type of insurance that covers financial loss from defects in title to real property and the invalidity of mortgage liens. If a lawsuit attacks the title of your home due to defects in the title, the insurance protects you financially. Lenders will offer the option of purchasing title insurance when you take out your mortgage. It is a one time fee for the insurance, which can be a substantial extra cost when added to all the other costs of buying your home. While it is a significant one time fee to a buyer, it’s worth it!

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These are a just a few of the critical real estate terms buyers and sellers should understand. When buying or selling a home, it is important to be well educated with the help of a great agent helping along the way. Give us a call today, we would love to help you with your real estate needs.

Mortgages are for the Dogs!

Sep 5, 2017 | Real Estate

Of recent home buyers ages 18 to 36 asked, a third of them said their decision to purchase was based on the desire for a larger property with a yard for their dog, according to a survey conducted by Harris Poll on behalf of SunTrust Mortgage.*  As seen in this image, only two factors that they ranked higher than dogs are the desire for more overall living space (66%) and the opportunity to build equity (36%).

Millennials have strong bonds with their dogs, so they want to include them in their decision making when searching for a home. Call us to help you find that yard for your entire family, including your dogs!

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