Ronda Allen

There's no such thing as an easy move. I watch about 50 families do it every year, and I do it myself about every 5-10 years. There are lots of details to manage, many of which your real estate agent takes care of for you. But, the packing, if you don't hire it out, is all on you.

Just as good time management teaches us to touch the papers in our in-box once and only once, you should manage your possessions in the same manner. Take an inventory by room, make a decision on each piece (and the contents inside if dealing with bureau's, filing cabinets, dressers, bookshelves, and the like), and determine which of the following is to be done:

1. Move It!

You love it too much to part with it. It has sentimental value beyond it's replacement value, or it is a family heirloom that just cannot be replaced. You know which items are 'off the table' for discussion. The pieces you'll fight for. This is the easy list. The only decision to make here is whether or not that item is useful for the staging of the home.

2. Store It!

You love it, but it's non-essential to proper staging of the home for sale, and therefore unnecessary at this moment in time. Blanket wrap that piece, or put it into a sturdy bin for storage, and know that you will be one step ahead of the game when your home gets a contract. Be sure to label your bins with masking tape, so they can be re-used for storage in your next home.

3. Shred It!

Old statements, old tax prep documents, old check stubs (remember check stubs? Yeah - you're a pack rat if you still have any of those sitting around), and - in the case of self-employed individuals with client files in their homes - old transaction files. Don't just throw them out. Shred these documents. Identity theft and your reputation could be at stake. Take the time to properly shred important, but dated, documents that you no longer need. The cost of hauling them to your next home can be astronomical.

4. Sell It!

The garage sale (or two) that you hold ahead of a move will help declutter the house and get it ready for staging. It may also pay for your storage and offset other moving expenses. The average household has about $2000 of unnecessary items in their home at any one time. In my experience, some homes have a lot more than that. Make a vow not to move clutter. If it isn't important enough to put in the #1 Move It! category, then maybe you aren't as attached to that item as you might think. Plus, it might not even work. Believe me that there is someone out there who wants that broken lawn mower and weed eater. There is someone who wants that snow-blower you hauled down from Minnesota and won't ever need in Texas. Those jeans from 1985? Yes - somebody wants those, too. Check your town policy and neighborhood policy on garage sales, and invite your friends to take part.

Keep in mind that if you are doing a pre-listing agreement with your agent, your garage sale before your listing goes in the MLS is a great time to invite your agent to be present for an open house. Open houses in DFW may only attract 2-3 people, but a garage sale can bring dozens of people to your house. Trust me that your agent wants to bring over a stack of business cards, some flyers, and be ready to tour the house with anyone who is interested.

5. Give It Away!

It didn't sell at the garage sale? You don't love it enough to store it and move it? Give it to a friend or neighbor. Or, check with the local Goodwill or Community Action store and see about donating that item. The act of charity is far more valuable than the donation slip you get to file away for your taxes next year.

6. Gift it to the Buyer.

Is the buyer moving in over the holidays? Gift them that set of Snowman Coffee Cups from your ex-Mother-In-Law that you've never taken out of the box, and put some cocoa mix and marshmallows with it on the kitchen counter with a note welcoming them to their new home. One thing I've noticed in the last two years is that the little courtesies that used to happen on just about every home sale have almost gone by the wayside. It's sad. Let's bring those niceties back between the buyer and seller.

7. Gift it to your Agent.

Did he/she go above and beyond to make your home sale happen? Did they work tirelessly to follow up for feedback on every showing, negotiate a great deal with solid terms, and see the transaction through from pre-listing through to closing day and beyond? It's okay to show your thanks with a gift. The best gift I have received was a beautiful ladies golf bag from Mr. Jim and Mrs. Fran, my 55-year USAA Member clients, who were on their 17th move. They only moved 3.5 miles across Plano, TX. But, we became friends for life in the weeks we spent together. The occasional food gifts are always appreciated and shared around the office. And, rookie agents always want to know what you do that makes your clients send gifts. Veteran agents know the answer...CARE.

Have a blessed day!

Ronda

What is an old home? It depends on where you're looking. In Boston, Massachusetts, an old home may have been built in the 1880's and be filled with lots of old world charm or have been updated 15 times by 15 different owners and be completed modern on the inside. In California, an old home may be one that was built in Mission Viejo in 1970 - like the one I grew up in. Those homes are now great flips for investors, but they aren't truly old by definition. They are old by comparison to the neighborhoods that sprung up around them in the 1980's, 1990's, and today.

In Dallas/Fort Worth, did you know that a buyer may consider a home built in 1995 to be an old home? Shockingly, it happens. Buyers in Dallas/Fort Worth have no shortage of new contruction homes from which to choose. People have a tendency to buy the newest and biggest home their budget can afford here. The term 'McMansion' got coined by someone in the last couple of years. Big homes with gamerooms and media rooms that contain so much for the family inside that they have no need to be outside getting to know their neighbors.

Great strides have been made in the last ten years in terms of energy efficiency of new homes. Visit any builder model home and they'll have page upon page of energy efficient amenities built into their homes, and try to one-up the next builder on how 'green' they can be. Thus, a ten year old home in Dallas/Fort Worth becomes 'old' in the minds of the buying public.

Don't rule out resale homes in DFW just yet. There are some totally great neighborhoods that built up in Dallas and Fort Worth in the 1980's. The 1980's were a prosperous time in DFW. Builders were doing custom homes for $70,000. These homes had funky amenities in them that would be the signature of the builder. Character is what they call those amenities today. Homes with personality. Unique homes.

The 1990's were a time in Dallas when we had a recession, and suburban offerings became a little more cookie-cutter. Some people like the consistency in 1990's neighborhoods. Other people are turned off by the similarity. Those custom homes went up in price, and the 'add-on' amenities were available to those who would pay for them.

Every buyer has a decade that appeals to them. If you want to live close to downtown Dallas and love tree-lined streets and quaint homes, then 1960's Richardson will probably be an area that will attract you. If you work at the Legacy Business Corridor in Plano and want a 10-minute commute to work, then 1990's Frisco and Plano may be more to your liking. If you want a ranchette on a couple of acres with a barn and a price under $250,000, we're likely going to be taking you out toward Fort Worth, where your budget can stretch a little further than it does in Dallas for acreage properties. If those big 2000-built McMansion types are the homes of your dreams, then you're search is very likely to include McKinney and Prosper.

Come to Dallas/Fort Worth with an open mind, the budget of your choosing, and your wish list in hand. You may just be surprised at how charming an 'old' house can be.

Have a blessed day!

Ronda

The Worker, Homeownership and Business Assistance Act of 2009 has extended the tax credit of up to $8000 for qualified first-time home buyers purchasing a principal residents. It also authorizes a tax credit up to $6500 for qualified repeat home buyers. Are you eligible? Are the qualifications as clear as mud? You can check the full requirements at http://www.federalhousingtaxcredit.com. Your tax advisor is also a great source for getting the scoop in plain speak.

Thanks to Colonial National Mortgage (Russell Dobbs, Sr. Loan Officer 972-989-9811) for putting together this brief synopsis of the differences between the qualifications:

$8,000 First-Time Home Buyer Tax Credit

*First-time buyers only, defined as someone who has NOT owned a primary residence in the last 3 years.

*The tax credit does not have to be repaid unless the home stops being the primary residence within 3 years.

*The tax credit is equal to 10% of the home's purchase price up to a maximum of $8000.

*The tax credit only applies to homes priced at $800,000 or less.

*The sale must occur between January 1, 2009 and April 30, 2010. However, if a binding contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

*For homes purchased before November 6, 2009 under the original program, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

*For homes purchased after November 6, 2009 under the new extended and expanded program, the income limit is $125,000 for single taxpayers and $225,000 for married couples filing jointly.

$6500 Move-Up / Repeat Home Buyer Tax Credit

*To be eligible, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

*The tax credit does not have to be repaid unless the home ceases to become the primary residence within three years.

*The tax credit is equal to 10% of the home's purchase price up to a maximum of $6500.

*The tax credit applies only to homes priced at $800,000 or less.

*The credit is available to homes purchased after November 6, 2009 and before April 30, 2010. However, in cases where the binding contract is in place by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

*Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Have a blessed day!

Ronda

IF I READ IT, IT MUST BE TRUE!

If you read a paper, or check online news sites for housing information, I know you've seen the headlines that it will be 2012 before the housing market bounces back from this recession. There is still a glut of homes in foreclosure that must be sold and then time to distance ourselves from those sales so that our home values return. Okay, there are some parts of the country for which this is true. There are even some parts of Texas for which this might be true. But, Dallas/Fort Worth isn't one of them.

IGNORE THE HYPE!

There is no national housing market. Housing is a regional commodity. In the DFW Region, we have buyers, we have sellers, and we have leasing going on every day in our MLS. We have movement in all price points of homes. And, the outlook for the rest of 2009 and 2010 is good.

LOWER LEVELS OF BUILDER SPEC HOMES!

Builder inventory is lower than it's been in the last two years. Builder's are pushing new home starts, which means that resale has a 5-6 month window of opportunity to compete with new. That's tremendous news for communities like Prosper, Frisco, McKinney, and Allen. Resale offerings tend to be lower at this time of year, due to holiday activities, which means that the homes available right now have a higher chance of successfully selling in the 4th quarter of 2009 or the first quarter of 2010 because they have less competition. The builders will likely be putting through price increases at the new year, which many have a tendency to do. After all, the price of construction materials doesn't seem to be going down. If builders go up on new homes, it's as if resale homes put through a price reduction without having to actually do it. If you're getting a good amount of showing traffic in 4th quarter, your first quarter 2010 showings should get a boost by the higher prices of other homes around you. The key is staying visible. Timing your sale against the availability of a Spring spec home will be key. Taking a 'break' from the MLS over the holidays could be a tragic mistake.

HOORAY FOR HOLIDAYS!

This is a great time of year for listing your home for sale. The weather in our region is fantastic at this time of year. People love to grab a cup of coffee and drive around looking at the holiday decorations in the neighborhoods. It's a very hopeful time of year, when people are looking at their own lives and making plans for the new year.

PRICING STRATEGIES BASED ON FACT!

The biggest mistake we see in January listings is sellers trying to sell their home too high above the area comparative sales. Traditionally, our highest internet searches in DFW happen in January on the major housing sites. Homes are compared to each other, and the homes' marketing strategy has to make sense to more than just the agent and homeowner. The buyer looking at the home online has to have enough buy-in on the strategy that the house seems like enough of a value that it becomes 'worth a look'. We hear that statement a lot from buyers: "That house seems like it's worth a look".

WILL IT APPRAISE?

Added to the proper positioning of the home to attract the buyer, we have the added pressure of making sure the house appraises. This is especially important right now. If a sale is too far above the 30-60 day sale comps, the house is less likely to appraise for the contract sales price. This causes unnecessary drama, in the least, and possibly an 'out' for the buyer in the last days before closing. Nobody wants to get 80% through a home purchase contract and have it fall apart. Price the house with the market for the best chance of success from start to finish.

Have a blessed day!

Ronda

I work as a Realtor in Collin County, Texas. When the recession began, I heard horror stories of contractors, builder reps, agents, and loan officers who had no business for several months during Fall/Winter 2008. I also said to myself, "there, but for the grace of God, go I". Then, the recession hit my own business in early Spring, 2009. In the words of Harry Caray, for those die-hard Cubs fans, "HOLY COW!". I went 9 weeks between closings for the first time since my rookie year in real estate. Ouch. I continued to work 10-12 hours a day, which is what I do as a freelance contractor in DFW. I work my business and I do it every day. I had a couple more homes close and a couple of leases, and then WHAM, another big gap between closings. We scrimped and budgeted and ran through some savings. Good Realtors always set something aside for taxes and tough times. But, would it be enough? It became a question in the back of my mind on a daily basis. Summer came. Summer in Texas always brings a large number of buyers out, and this first-time home buyer tax incentive would surely help bring new buyers and new business, right? Yes. It got busy. It got very busy. But, as I would find out, much of my effort was wasted. Buyers came out to try to take advantage of the tax credit and loan officers tried to make loans work, but the rules of lending kept tightening and changing. The big banks were not our friends. More and more of those first-time home buyers were shut out of the market. What started out as a green light to put the buyers in my car and begin the home search became a screeching red light and a failed attempt at a home sale. Maybe in 2010. The buyers just could not qualify. The impact on my business? A few early Summer closings followed by another gap. Keep in mind, I'm a veteran agent. I do major corporate moves for Fortune 500 companies, military family moves, personal marketing online and offline to meet buyers and sellers, and I work 10-12 hours a day. This is not the 2009 from my business plan. I started hearing stories on the news about real estate agents going to the food banks, which for the food banks was startling news and a reflection of just how bad the recession had gotten. We actually got within one week of having to visit the food bank in our own family this year. One very humbling week. Then, I had a closing. We paid the bills and hit the grocery store. And, we took food to the food bank. After all, we almost needed it ourselves. Like giving blood, you have to put something in if you want it to be there for you if/when you might need it.

I'm a 6-figure real estate agent in the Dallas/Fort Worth Metroplex. But, expenses rose in 2008 and the recession hit. I lost 38% of my business between Fall 2008 and Summer 2009. And, I consider myself one of the lucky ones! I'm still in business, and in a region of the country that is doing better than most. I had a closing this morning. But, the agent on the other side of this deal did not. She couldn't hold on. She left the business in the middle of the transaction and turned this home sale over to her broker. She couldn't afford to renew her license. And, she was good. Her luck ran out because she had not socked away enough in savings to ride out the distance between closings until her business picked up. Again, "there, but for the grace of God, go I".

There are two purposes for my blog today.

1. I am not alone in this personal story. Call your real estate agent and ask them how their business is really doing. I bet it's down. It may be down further than they'll even admit. Ask around and see if there is someone you know who might be considering a move, and send your agent a personal referral. If you don't, they may not be able to bridge the gap, and then another good agent won't be there the next time you need them.

2. There is a homeless shelter in Collin County. Yes, just one. It's called the Samaritan Inn. http://thesamaritaninn.org . They are having to turn people away, because they only have 130 beds. So, I am going to ask that you take a long, hard look at your own family. There are some families who aren't feeling the impact of the recession as much as others. If your family lives in Collin County and is doing pretty well, I simply ask that you consider making a donation to the homeless shelter so they can help more people.

To my fellow agents who survived last year, I wish you blessings this season beyond your wildest imagination. You go to great efforts to make your jobs seamless to the client, so there is the assumption that it's easy to be a real estate agent. But, we know how truly hard this job can be and all the extra obstacles we encounter today.

Ronda