Here's a monthly local update in 76234 Decatur TX Homes for sale Texas

 

Here's a monthly local update in 76234.

$429,642 Typical home value $415,834 Typical value 1-year ago  1.2% 1-Year forecasted value increase 286 Homes for sale 31 Homes recently sold PATTI LEE PROPERTIES Results That Move You!

High-speed rail project enters NEPA environmental phase

 

The project that would link Fort Worth and Dallas by high-speed rail has officially entered the federal environmental analysis phase and is on track to be environmentally cleared within a year. In a letter dated March 4, the Federal Transit Administration granted a National Environmental Policy Act (NEPA) Class of Action Determination to the project, enabling the environmental assessment to begin.

Through the Dallas-Fort Worth High-Speed Transportation Connections Study, high-speed rail along IH 30 emerged as the preferred method to connect people seamlessly from throughout the region to the planned Dallas-to-Houston route via a one-seat ride, where passengers between Fort Worth and Houston could board a single train to reach their destination.

NCTCOG has conducted over 200 meetings, giving the public, local governments and other stakeholders the chance to participate along the way. Input from the public and various stakeholders will be counted on throughout the NEPA analysis phase and beyond to implement the right project for North Texas.

Once the corridor is environmentally cleared, it has the potential to attract future private investment. Combined with the planned high-speed rail line from Dallas to Houston, the North Texas project would lay the groundwork for a system of high-speed trains that could connect passengers to other metropolitan areas throughout the state and nation.

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Why Homebuyers Shouldn’t Bank On Saving $10,000 by Not Working with a Buyers’ Agent as President Biden Recently Suggested

 

In a recent speech about lowering housing costs for American families, President Biden said:

“In addition, last week the National Association of Realtors agreed for the first time that Americans can negotiate lower commissions when they buy or sell their home. (Applause.)

On a typical home purchase, that alone could save folks an average of $10,000 on the sale or purchase.

I’m calling on Realtors to follow through on lowering their commissions to protect homebuyers.”

That probably sounds pretty amazing (and official) if you’re a potential homebuyer!

Unfortunately, for both homebuyers and agents, it’s not accurate.

It’s unfortunate for buyers because it’s unlikely that the recent proposed settlement he’s referring to will actually result in $10,000 savings for them, because achieving those savings would depend upon a lot of factors. Yet it sounds like a slam dunk promise.

It’s unfortunate for agents because those remarks make it sound like commissions were never negotiable until now, even though they already were. And it sets unreasonable expectations for homebuyers that agents will potentially be blamed for not helping them achieve.

For starters, $10,000 may be a nice round number, but it’s also a random number. He didn’t provide any basis for that amount, and even if he did, there are too many variables for him to be able to make that claim.

To be fair, he said “up to,” so that could allude to the savings being anywhere below that amount. But the reality is, buyers could easily focus on the $10,000 as an actual amount to expect.

How much you could possibly save depends upon many factors. So, in order to avoid confusion, let’s take a look at 6 variables that make it impossible to claim that a buyer will save an average of $10,000 when purchasing a home:

1. It depends upon the commission amount typically being offered to buyers’ agents. While people outside of the industry often believe that commissions are a “standard 6%,” they’re not. (According to Statista, the average real estate commission hasn’t even reached 6% since 1992, and they vary from year to year.) More importantly, the portion of the commission offered to a buyers’ agent varies from one area of the country to another, and from one house to another in your local market area, and even depends upon the current market conditions. So there’s not even a specific commission amount you can use to begin doing the math accurately.
2. It depends upon the price range you’re buying in. The “average” buyer varies from one area of the country to another, and from one area of a state to another. So, for example, you could be buying in a higher-than-average price range for your area, but if it’s less than the “average” home prices the $10,000 amount was based upon, that amount of potential savings is unlikely.
3. It depends upon you not working with a buyers’ agent, and representing yourself. The President’s statement suggests that the agents’ fees will be cut by $10,000 on average. While commissions may seem “high” to those outside of the industry, many agents don’t even come close to $10,000 commission checks on average. In many cases, based upon the $10,000 number, you’d actually have to get a buyers’ agent to agree to pay you for the pleasure of helping you! Unless you can negotiate with a buyers’ agent to agree to work with you for an extraordinarily low fee, or for free, the suggested savings would have to be achieved by not having to pay a buyers’ agent for their services.
4. It depends upon you negotiating the best possible price for the home. Saving $10,000 by forgoing the help of a buyers’ agent also hinges upon you truly understanding what the market value of the home you’re attempting to purchase is, and successfully negotiating the best possible price for it. You could easily lose as much money as you’re trying to save (or more) by not knowing values well enough, or not negotiating as well as an agent would on your behalf.
5. It depends upon you even successfully buying a house. In order for savings to be achieved, you need to have successfully purchased a home. In many areas of the country competition is fierce between buyers. There are too few houses for sale, and more buyers than there are houses to choose from, which creates bidding wars. It’s often difficult for buyers to have their offer accepted with an amazing agent representing them, so competing on your own against other buyers represented by agents could be even more difficult. (This becomes even more of an issue if a seller and their listing agent have more confidence that the deal will go from acceptance to the closing table without a hitch with a buyer who has an agent representing them, versus one who is unrepresented and doesn’t know the process.)
6. It depends upon you not costing yourself money by making mistakes throughout the transaction. It’s also possible to cost yourself thousands of dollars during the process of buying a home by not knowing what to do, or not to do in certain situations. The most likely aspect that could cost you money is in relation to any home inspection issues. Not recognizing something you should ask the seller to repair or replace, or not successfully negotiating for it, could cost you even more than you might be trying to save by not having a buyers’ agent represent you.

So, keep those things in mind if and when you hear anyone claiming you can save $10,000 (or any other amount) when you buy your next home.

It may sound appealing to avoid working with a buyers’ agent for the promise of that much savings, but the representation of a great buyers’ agent is likely worth more than any amount you could save.

Think about it this way…

You can save money on the cost of a lawyer if you go to court by representing yourself. That might be fine if you’re just going to fight a traffic ticket. But if you’re going to court to sue someone else who’s represented by a lawyer, you’re probably not going to fare so well. You’d want someone who knows the process, and can get you the best results possible.

Same goes for when you’re buying a house…

It’s a large purchase, typically the largest one anyone makes, and not knowing what you’re doing can cost you more than the amount you could possibly save by not hiring a buyers’ agent.
So, rather than focusing on potentially saving money by not hiring one, focus on hiring the best one you can to help you negotiate the best results possible when purchasing your next home.

By Lighter Side StaffMar 27, 2024

The Takeaway:

President Biden recently claimed that homebuyers could save an average of $10,000 due to the terms of a recent commission lawsuit settlement.

Unfortunately, it’s inaccurate and misleading, because there are several factors that make it impossible for that amount of savings to be guaranteed. Variables such as commission rates, property prices, negotiation skills, and market conditions, and the knowledge and skill sets of a particular buyer impact any potential savings.

Hiring a skilled buyers’ agent often outweighs potential savings. So, rather than focusing on potentially saving money by not hiring one, focus on hiring the best one you can to help you negotiate the best results possible when purchasing your next home.

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Need Money for Home Improvements? Be Leary of Offers for “Free Money” That Sound Too Good to Be True

 

Some home improvements are the type you have on a wishlist, and don’t need to be done, like a new kitchen. But there are some, such as a new furnace or roof, that are hard to ignore once they’re failing. Either way, a lot of people just don’t have enough extra cash laying around to devote to a project, whether they want to or not. Unfortunately, this leads to many people putting off maintenance and renovation projects until they can save up enough money, take out a loan, or rack up their credit card bills.

While a home equity loan is often an option, even if you have a lot of equity built up in your home to borrow against, some people have difficulty accessing it because they’ve recently lost a job, have credit issues, or simply can’t handle an additional monthly payment for a home equity loan. Or perhaps you’re well qualified, but want to avoid paying the current interest rates.

So imagine how appealing it would sound if you got a letter in the mail saying you could get your hands on all the money you need to do your projects, without having to pay back a single cent… at least for now.

Business Insider recently reported that there are companies that offer to give homeowners cash they can use toward home improvements, without having to pay the money back until they sell their house.

What’s the catch? On top of paying back the original amount they loan the homeowner, they’ll also take a percentage of how much the home has appreciated during that time.

Sound a little too good to be true? Well, it kind of depends upon your situation and point of view.

You Get Money Now, They Get a Chunk of Your Equity Later

Companies offering to pay a lump sum of cash in exchange for a share of your home’s future appreciation isn’t actually a new thing. They’re known as home-equity-sharing agreements or home-equity investments — a type of financing that’s been around for decades. But with Wall Street looking more and more at residential real estate as a great place to invest money — and increased backing from some of the largest investors in the world — there’s a good chance this type of offer will become more commonplace for homeowners to hear about.

It’s being posed as a “partnership” with homeowners, as opposed to a traditional loan you might get through a bank or mortgage company. Technically the owner isn’t taking on more debt, or required to make monthly payments to pay the money back, but ultimately they’re giving homeowners money that needs to be paid back with a form of interest tacked on (even if it’s not called that).

For example, in one particular deal they cited in the above mentioned article, a man was given $60,000 to do some home improvements in exchange for just under 65% of any appreciation on his home when he sells it.

Theoretically the financiers are taking the risk that you’ll get some free money if the market value of your home goes down, but it’s a pretty safe bet for them to make. While home values might dip on occasion, they’re banking on a home’s value appreciating in the decades to come, which history has shown tends to happen. These are sophisticated investors, and they wouldn’t be putting their money on the line if it wasn’t a fairly safe investment overall. Will they lose money on a deal or two? Probably. But more often than not they’ll do more than fine on their initial investment.

But just to be on the safe side, they’ll also likely word the contracts in their favor, and increase their odds by making sure that there’s some “appreciation” built in. For instance, in the above noted deal an appraiser valued the owner’s home at $275,000, but the finance company based the value at only $231,000 in their agreement. They applied a 16% discount to protect themselves in case prices fall, but it also gives them a head start on how much appreciation they have stake in by undervaluing the home up front.

Make Sure You (And Your Attorney) Read the Fine Print

Whether these are a good option for you or not is ultimately a personal decision. As with most things, they have their pros and cons.

In an ideal situation, it’s probably best not to give up so much equity in the future. So if you can borrow money in a more traditional manner, or save up the cash you need, you’re probably better off in the long run.

But if you need some cash and are willing to forgo a chunk of your future equity and appreciation, it may be a better alternative than a traditional loan through a bank or mortgage lender.

Just be aware that these companies and products aren’t as highly regulated as the mortgage industry is, and are seen as “options contracts” by federal courts, so you won’t have the same protections you would with more traditional home loans. Make sure you understand the terms and conditions you’re agreeing to, and consider having your attorney and accountant review the contracts as well before signing on the dotted line.

The Takeaway:

When it comes to home improvements — especially big-ticket items like a new kitchen, furnace, or roof — many homeowners find themselves short on cash and options. Which is why home-equity-sharing agreements, where companies provide upfront cash for renovations in exchange for a share of your home’s future appreciation, may sound enticing to a homeowner.

It might sound tempting to get the money now and pay later, but homeowners need to consider how much appreciation and equity they’ll need to share with the financing company in the future; it could be quite a substantial amount. While it could be a lifeline for some, it’s essential to weigh the benefits against the long-term implications and seek legal advice before diving in

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By Lighter Side Staff
 Mar 5, 2024 

The Pros and Cons of Mortgage Rate Locks for Home Buye

 

The stock market was making news one day recently because it was surging upwards due to some rumors that the Fed was going to cut interest rates soon. But almost as quickly as that news broke, the Federal Reserve Chair Jerome Powell issued a statement saying that they were not planning on doing so, at least quite yet. And that made the stock market go back down again…

But it’s not only Wall Street that keeps an eye on interest rates and makes decisions based upon where they’re potentially headed; it’s also something many home buyers do.

Any hint of interest rates falling will always get the attention of people considering buying a house, but especially now with rates being higher than they were a year or two ago, and many buyers hoping they’ll take a decent dip downward.

But while fixed-rate mortgages are certainly indirectly impacted by what the Fed decides to do, it’s the 10-year Treasury yield that more directly impacts what rates are being made available to home buyers, which causes them to rise or fall ahead of what the Fed actually does, but based upon what people expect them to do.

To put it simply, mortgage rates could (and often do) decrease even before the Fed actually decides to cut the rates.

Then again, they could go up, depending upon who the market feels things are going to pan out in the near future. There’s literally no predicting.

Which is why a mortgage rate lock can be a good decision, if you’re in the market to buy a house.

What Is a Rate Lock?

A mortgage rate lock is an agreement between a borrower and a lender to lock in a specific interest rate on a mortgage loan for a certain amount of time. This locks in the interest rate and prevents them from fluctuating during the lock period, which is typically between 30 and 60 days, although longer lock periods are sometimes available.

The purpose of a rate lock is to protect the borrower from potential increases in interest rates while the loan application is being processed, as mortgage rates can fluctuate daily based on market conditions. Once the rate lock is in place, even if interest rates rise, the borrower is still entitled to the lower rate agreed upon during the lock period.

When Can You Lock In?

There are some exceptions, but rate locks are typically used when a borrower has found a suitable property and wants to secure financing at a specific interest rate before completing the purchase.

However, while most rate locks are only good for 30-60 days once a buyer has a house under contract, according to Bankrate, there are some lenders and programs that will allow you to lock a rate anywhere from 30-120 days, and even before the buyer has actually found a home to purchase.

So, the short answer to when you can lock in is: It depends upon the lender and the programs they offer.

Depending upon your situation and needs, you may have to shop around for a lender who can accommodate the length of time you want to lock a rate. But it’s never going to be a situation where you can lock in a sweetheart deal for the next year or two if rates go down. There’s a limit to the amount of time they’ll give you, which typically amounts to a couple of months.

The Pros and Cons of Rate Locks

As with many things in life, there are some pluses and minuses to rate locks. Before deciding if it’s the right decision for you and your situation, here are some of the pros and the cons you should consider:

PROS

It protects against rates going up between now and when you purchase your house.

A lower interest rate will not only save you monthly in the short-term, but also a lot more money over the life of the loan.

It can make the hectic and often stressful process of buying a home less stressful by eliminating one of the major sources of stress when rates are volatile and potentially going up.

It can protect you from losing the house you want to buy if you’re cutting it close in terms of how much you can afford for a monthly payment, and a rise in interest rates would knock you out of being able to afford the house you want.

CONS

• While some lenders will give you a rate lock before finding a house to buy, many will require you to have a specific property lined up.
• There could be some stress and pressure created due to the amount of time you have to close on the property before the rate lock expires, which could lead to making rash or rushed decisions during the process. For example, you may not be able to be as cool, calm, and collected when negotiating home inspection issues if you’re worried about losing a rate lock.
• It could lock you out of getting an even lower rate. If interest rates decrease during the lock period, the borrower is typically not able to take advantage of the lower rates unless the lender offers a “float down” option, which allows you to adjust to the lower rate within certain parameters. So make sure this is an option your lender will extend to you if that happens.
• It’ll cost you some money. Most of the time you’re going to have to pay a fee to lock the rate. It should make sense given the amount of savings a lower rate will create for you, but make sure to do the math before agreeing to the fees the lender requires, and be fairly certain you’re going to be able to close on the property before the rate lock you paid for expires, otherwise it’s wasted money.
• You’re not just locking into the rate, but also the lender. So make sure you’re choosing one you trust and feel is giving you the best terms and rate before you lock in a rate with them.

The Takeaway:

Lately it seems as if mortgage interest rates could as easily go up as they could go down at any given moment. So if you’re in the process of buying a home, you may want to “lock in” your mortgage rate just in case rates go up before you get to the closing table.

A rate lock can shield you from rates going up, and if you have a “float down” option, it will allow you to get the lower rate if they go down instead of rising. Just make sure to consider the pros and cons of locking your rate before committing to one, because it will come with some limitations and time constraints, and cost some money to secure the lower rate.

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By Lighter Side Staff

An Open Letter to the Media: A 6% Commission Isn’t “Standard,” But Here Are 6 Things That ARE Standard for Agents

 

Many folks in the media have recently been writing sensational headlines declaring an end to buyers’ agents and the “standard 6% commission.” The minute you say that, everything else you write has to be questioned, because it’s inaccurate and misleading to the public. Let’s get into it…

For starters, the vast majority of real estate agents probably think twice about using the word “standard” to describe anything in life, let alone real estate commissions, just to be on the safe side. Agents aren’t allowed to even say words that suggest there’s a standard commission, let alone conspire with each other and agree there’s a “going rate” of some sort.

More importantly, it’s not factual. According to Statista, the average real estate commission hasn’t even reached 6% since 1992, and they vary from year to year. So, no, 6% is not the “standard” commission. In fact, while those are nationally based statistics, they vary from one area of the country to another, and from one agent to another, and often from one transaction any particular agent is involved with to another.

Now that we have that cleared up, there are few things that are standard for real estate agents you might want to keep in mind as you write headlines and report on the industry — especially in relation to commissions or the current settlement:

A repost from: By Lighter Side StaffMar 25, 2024

1. It’s standard for agents to take on the risk of showing someone houses for weeks, months, or even years, and never end up making a dime for the time and advice we freely gave to the client.

2. It’s standard for agents to disregard how much money we’ll make working with one client versus another — and work with a buyer regardless of their price range — often helping first-time and low-income buyers to become homeowners with no money out of pocket. (Unfortunately, depending on how things play out, these buyers could find themselves having to buy a house without their own representation because they can’t afford to hire an agent, while wealthier clients will have the ability to pay for a professional to be on their side.)

3. It’s standard for agents to help their buyers remain calm while trying to buy one of the few houses available for sale, amidst tremendous competition with other buyers due to decisions (or a lack thereof) that the government has made which impact the housing sector. The government has certainly had more to do with the lack of inventory than agents have, by not doing more to promote new houses being built, and having mortgage rates climb from all-time lows for many years, to where they are currently.

4. Yet it’s standard for agents to be the whipping posts when the market isn’t great, and our usefulness is diminished when the market seems to be thriving. On that note, it’s also standard for agents to ignore the hate as much as possible, and focus on doing the best job we can for their clients, despite how we’re often portrayed as the villain…

5. …because it’s also standard for agents to have clients who truly appreciate our help, and end up forming lifelong relationships with them on both a personal and professional level. Considering that “90% of buyers would use their agent again or recommend their agent to others,” according to research from the National Association of REALTORS®, is there really that much hate for agents? Or is it something the media amplifies without merit?

6. It’s standard for agents to continue giving our time, advice, and skills to clients pro bono during the years a client is living in their home and not in the market to buy another home… possibly ever again. Whether it’s helping them decide on some updates or renovations they’re considering, the market value of their house, or helping them figure out how to keep their home during a financial crisis, agents are often happy to help our past, present — and potential future clients — without being compensated for it.

And that’s just six “standard” things we do, to keep with the theme of that magic number… but rest assured, there’s more we do that goes unlisted and often unnoticed.

Oh, and by the way, the average agent earns between $44,951 and $58,528 per year, working more than 40 hours per week with rarely a day off, let alone a vacation. So please keep that in mind if you’re thinking of portraying us as money-hungry vultures who deserve a massive pay cut.

So, rather than villainizing agents, perhaps take another look at what has transpired due to the recent class-action lawsuit, and question whether this is actually a good thing for homebuyers or not.

And, if you wouldn’t mind, could you also take a closer look at the lawyers who are filing all of the class-action suits? Please find out how much they’re making off of their clients, versus how much their clients are actually benefiting financially from the settlement while you’re at it. Rumor has it they often charge all of their clients the same “standard” percentages for their services, which would be ironic. So, it’d be super cool if you could do some digging and shed some light on that…

Sincerely,

All REALTORS® and real estate agents

all reposted from another source

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Avoiding Commissions to Real Estate Agents Could Cost You Much More Than It Could Save You

 

A lot of people think that the Internet has made it so much easier to sell a house, and have a difficult time understanding why they should still hire a real estate agent and pay them commissions.

It’s understandable when you only consider the aspects of selling a house that boil down to buyers and sellers finding each other. The internet has certainly made that part simpler.

There are plenty of ways for sellers to use the internet to make it known that their house is for sale to potential buyers, without having to rely on real estate agents and their access to the multiple listing services.

In fact, there are even buyers who use the internet to make it known that they’re in the market to purchase houses, and offer to buy from sellers directly in order to make it a quick, easy, and less costly process by cutting out the need for agents.

So, with the internet creating such an efficient marketplace, why should a seller bother hiring an agent?

Well, because it could end up costing you more than you think you’ll be saving…

55,000 Examples of Sellers Who Lost Money

The Federal Trade Commission (FTC) recently came to the rescue of 55,000 home sellers who were misled by an online home buying company called Opendoor Technologies. The company promised sellers that their cutting-edge technology would save them money, by offering to directly pay them “market value” for their home, and cutting out the costs (such as commissions) involved with the traditional home sales process involving agents.

“Rescue” might be a strong word, though. Because, according to this MSN article, the FTC will only refund about $1,000 to sellers who are even eligible to receive a portion of the $62 million dollars the company was fined. That’s likely a drop in the bucket compared to how much most of those sellers actually cost themselves by selling to Opendoor. The FTC said, “In reality, most people who sold to Opendoor made thousands of dollars less than they would have by selling their homes using the traditional process.”

According to the FTC findings, here are two ways selling to Opendoor either cost, or lost sellers money:

• Sellers were misled about the true market value of their homes and convinced to sell for less than they could have sold their house for on the open market.
• Sellers ended up paying more in costs to Opendoor than sellers typically pay to work with real estate agents.

In order for companies like Opendoor to make money, they have to offer below market value for a home. According to Tomasz Piskorski, a professor at Columbia Business School who has done research on this type of business model, on average they buy homes at a 3.6% discount compared to what sellers would get by selling their home through the traditional process.

It’s difficult to say how much each seller paid in fees in the past, but Opendoor is still in business, and here are some of the costs and fees they publish on their website:

• A “service fee” of 5% on every home they buy, which they literally say is “similar to how commission works for real estate agents.” This is Interesting, considering they positioned themselves as a way to avoid the cost of real estate agents…
• They also may deduct “repair costs” for anticipated repairs, so sellers don’t have to pay cash up front to sell their home. This is a slippery slope, because they are “anticipating” what could be wrong with the house, not necessarily basing it upon an in-person inspection by a licensed inspector.

Considering how much homes are typically worth, $1,000 probably isn’t going to help most of those sellers recoup anywhere near the amount of money they lost. It doesn’t even come close to making up for the loss of wealth those sellers should have after selling an asset that often accounts for much of a person’s net worth. Sadly, in most cases, the decision was likely made in hopes of walking away with more net worth by eliminating the cost of real estate agent commissions.

No matter how easy it may seem to sell and buy houses due to technological advances, there’s a lot more to getting the best results possible. So, if you find yourself questioning whether it makes sense to hire a real estate agent and pay a commission, just think about the 55,000 home sellers affected by this one company. While they probably all felt like they were going to come out ahead by avoiding agents, now they’d probably all gladly turn back time, hire an agent, and willingly pay a commission.

The Takeaway:

It may seem appealing to avoid paying real estate commissions, especially since technology has seemingly made it easier to sell your home directly to a buyer. However, without the help of an agent who knows market values, and has the skills to get you the most for your house, it’s easy to lose more money than their representation would’ve cost you.

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By Lighter Side Staff