Understanding the origins of this change is crucial. The Department of Justice initiated this settlement to protect home buyers and sellers from potentially unethical practices by real estate agents and firms. The concern was that some agents might limit the properties they show to clients based on the BAC offered, refusing to show homes with lower commission rates. This practice could prevent clients from seeing all available options. It’s important to remember that agent commissions are negotiable, determined through discussions between the real estate agent or broker and the client. There are no legally mandated commission rates.

For sellers and their agents, these new rules mean that buyer agents will likely contact you in advance to inquire about the BAC you’re offering. Many may request a signed Broker’s Agreement before proceeding with a showing as a precaution to ensure the commission rate is confirmed in writing.

For buyers, the key question is what happens if the seller isn’t offering a sufficient commission to your agent? Again, this is negotiable between you and your agent. Traditionally, it has been a selling point that buyers did not incur agent costs, as sellers typically covered commissions. With BAC information no longer publicly available, the decision to hire an agent may increasingly depend on trust and the agent’s expertise rather than commission incentives. Remember that an agent’s expertise and experience can save you more money in the long run.

It’s wise to carefully review the Buyer Agreement provided by your agent, which outlines the proposed payment arrangements. The updated standardized TREC forms for both buyer and seller agreements now include a clearer breakdown of agent fees for both parties.

While this change may seem minor, staying informed about the rules and regulations governing real estate transactions is essential.

The post What you need to know about the new NAR rules first appeared on Skyline Realty Dallas.

Similarly, as prices continue to rise the best time to buy a house is NOW! Prices will only continue to rise on homes, the best opportunity to get a deal is to get it sooner rather than later. DFW is quickly becoming the hottest metroplex in the nation. Job opportunities are booming in North Texas. Secure your opportunity to get in on the Texas buzz by contacting our office where one of our knowledgeable and experienced agents can assist you.

The post Now is the time to sell your home! first appeared on Skyline Realty Dallas.

Most people in today’s market take out a loan for around $250,000-$350,000.

The monthly loan payment is composed of principal and interest. The first chart illustrates a $300,000 loan for 30 years with a $1,185 monthly payment at a 2.5% rate. The 2.5% loan’s amortization schedule shows the interest $625 and the principal $560.36 In contrast, the same $300,000 loan amount but with a 5% rate will shoot up your payments to $1,610 a month, $425 higher than the 2.5% rate. The bulk of the monthly payment is $1250 in just interest and only $360.46 principal.

The interest rates are at record lows and we do not know how fast and when they will go up. Based on the economics of supply and demand, when interest rates go down prices go up because more people are able to qualify and housing demand goes up which makes prices go up.

The second chart illustrates how two completely different loan amounts have the equivalent monthly payments based on their interest rate alone; (The illustration does not include taxes and insurance) This shows that you can buy a house worth $100,000 more and still pay the same amount with your interest rate 2.5% and not 5%.

If you are one of those people that do not want to purchase now because of the increase in house prices the past year, you are not looking at the big picture. It is important to consider the cost of the house, but it is even more important to consider the cost of the money you are borrowing. Data does not lie and you have to look at the big picture when analyzing, when is the best time to buy a house? In today’s case in the DFW market, THE BEST TIME TO BUY A HOUSE WAS YESTERDAY!

*Illustration purposes only. Not an offer to lend money. Please consult a mortgage professional.

The post When is the best time to buy a house? first appeared on Skyline Realty Dallas.

Great realtors play Pokémon Go. Not to say that every great realtor has stumbled upon this incredible tool for gathering useful data, but a a select few of us have found a great way to quickly get to know a neighborhood. This level 34 trainer knows.

For those that are unfamiliar, Pokémon Go is a game that uses gps navigation to create a world within our world, so to speak. So the user is able to “catch” Pokémon characters within their immediate navigational environment. Furthermore, points of interest are shown on the map as either Pokestops or as Gyms These points of interest can include chruches, parks, art work, attractions, and historical monuments. And even companies like Sprint and Starbucks have caught on and made their stores appear as Pokestops as well.

This very entertaining and free to download game can provide critical data for a realtor! Sure, knowing where a local Starbucks can be handy, but this data can also be used to quickly educate yourself of your local surroundings. In turn you are able to provide more knowledge and value pass to your clients. Furhermore, these points of interest are all things that add value to a property. I find that it always benefits a client’s listing when you design the public driving directions so that the prospective buyer will experience the most pleasant perspective when arriving to the property. Having them passing Pokestops on the way will make that happen.

This story on NBC from 2017 touts that Realtors were already using the game for listings just a week after it came out:

https://www.cnbc.com/video/2016/07/14/pokemon-go-selling-homes.html

Will playing Pokémon Go make you a better realtor? Likely not as realtors tend to have enough distractions with trying to drive around the universe while using gps, emails, texts, Spotify, and phone calls. But a seasoned and resourceful realtor thinks outside of the box and finds creative ways to put themselves above the rest.

Jonathan Purgason
Skyline Realty

The post Why great realtors play Pokémon Go first appeared on Skyline Realty Dallas.

A huge factor to consider when buying or selling a home is the seasonality of your market. The seasons of the year influence the market no matter where you live, even though some locations are more drastic than others. While the demand of housing matters, it has a direct correlation to the seasons. When you see “seasonality” you think the weather which is different in every market. However, what the majority of people forget is the holiday season and school year also needs to also be taken into account when planning to buy or sell a home.

How seasonality works

Most people avoid doing business in the winter because that is “ the holiday season”, which means people have to deal with family obligations, end-of-year deadlines, and unpredictable weather conditions. No one wants to deal with buying or selling a house when everything is hectic. This makes it easier for people to do business in the spring and summer. Additionally most houses sold are during June and July because families don’t want to move when their kids are still in school. This makes it a smooth transition for both the parents who during this time don’t have a lot on their plate and the kids who have to transfer schools.

When to buy or sell

With that being said, buying in the winter will most likely get you a better price with there being a lesser chance of getting into a multiple offer situation. As for homeowners selling, you will get the most for your house by selling in the summer when the market is hot.

The post How to buy when it’s cold first appeared on Skyline Realty Dallas.

Let’s not sugar coat it, home renovations are a horrible, tedious process, and nobody likes them. Now that that’s off our back, it can also be an exciting and creative process especially when you’re finished and can enjoy a nice glass of wine in the 2.0 version of your house. The most important thing you have to do when starting the process is to figure out if you will be doing the renovation for the purpose of selling and maximizing your bottom dollar or if you are doing this for your own personal enjoyment. Your approach should differ depending on that answer. Set the time to do it right from the beginning in order to save yourself unfortunate setbacks down the road.

You must use the principal of increasing and decreasing returns. Each dollar invested needs to return a dollar or more of increased value and stop when each dollar invested returns less than a dollar in value. Do not over improve a property! Let’s say our subject property is currently worth $200,000. It would not be wise to put in $25,000 in renovations if the most you can get is around $225,000. However, it would be wise to put in $25,000 if you can justify a sales price of $250,000.  It is also very important for you to know your neighborhood. If your neighborhood does not support a certain price range, and you are the only one with state of the art updates, it will be difficult justifying the monetary value of the investment.

If you are planning on doing this for your own personal enjoyment then you must ask yourself how long you intend to live in this house. If your future holds calling this house home then go crazy and have fun building your castle. If you are on the fence and might sell in a few years then the cost you put in must rationalize the income generated when you sell.

How to create the perfect budget

Don’t try to cut corners by hiring cheap labor and picking cheap materials. In most cases you’ll have to pay more than you would have originally paid to fix the mistakes. Make sure there is a buffer in your budget because anything can happen when doing a big renovation.

Choosing the contractor for you

Before picking out a contractor you must do some preliminary work for two reasons. First, you want to know what questions to ask so you don’t get used and abused by the contractor. Second, you want to be able to keep a close eye on what they are doing in case things get out of hand. An easy way to decide if you found a good contractor for you is to see how fast they return your calls. A contractor that always picks up or returns them right away will help keep your anxiety levels down and will most likely keep you in the loop throughout the process.

Common tips that homeowners tend to forget

• Choose the correct lighting that will go with the colors to your home
• Bigger is always better when it comes to hallways, stairs, and doors. You don’t want narrow pathways that people will have to squeeze through or can’t fit multiple people
• Going green will save money, the environment and put you ahead of the market down the line
• Windows are extremely expensive so don’t try to save money on them. This is also what people will see from outside the house, so you want to get good quality
• Make sure to get a permit because if something were to happen your homeowner’s insurance won’t cover it without permits pulled.
• Place a high importance on kitchen and bathrooms

The post Planning a home renovation first appeared on Skyline Realty Dallas.