Prosper, TX

In Part 1 we discussed how rental price impacts occupancy rate and the impact that can have on annual cash flow. In Part 2, we’re going to explore how rental price impacts the quality of applicants.

Let’s say you have a rental property where the fair market rent is $1500 a month. If you list the property at $1600 a month, not only will you receive fewer applications, we’ll argue that those applications will be of lower quality.

Applicants with good credit and clean backgrounds do not have to overpay for a rental home. Since they can easily qualify, they will spend the time to not only find a well-maintained rental home, they will not pay more “just to get in.”

At $1600 a month, you’ll likely find that your applicants have credit or background issues. They want a decent place to live, understand they have issues, and are willing to pay more. It’s no different than a mortgage applicant who is willing to accept a higher interest rate because they have credit issues.

In some cases the extra cash flow may be worth the risk. That’s a call you have to make based on the total application.

Our recommendation is to price the home at market value to attract the largest number of quality applicants. One bad tenant can eat up lots of time and destroy a property. That little bit of extra cash flow just isn’t worth it in the long run.

Have questions or want to work with an experienced real estate team on purchasing or managing investment properties? Contact us at 214-227-6626.

Photo licensed from iStockPhoto

Originally posted at http://www.thebranchteam.com/wordpress/2012/01/23/investors-do-you-really-want-the-highest-possible-rent-part-2/

Prosper Texas Real Estate Sales were up 63% in December 2011 over the same month last year with 31 homes selling this month! For the year to date, overall home sales were at 372 homes sold, a 21% change from last year. Prosper Texas real estate total dollar volume of homes sold this month was $9,715,059 which is a 48% change from this month last year. For the year to date, the total dollar sales were at $122,312,856, a 18% change.

Register online to have monthly updates on your city and neighborhood automatically emailed to you from Prosper Real Estate. Search Prosper Texas homes, Prosper Texas foreclosures, and Prosper Texas short sales and find Homes in Prosper. Research current Prosper home values at DFW Home Values Report.com. This service is FREE and available without any obligation from DFWTeamRealty.com.

New Prosper Texas real estate listings experienced a -8% change for the same period last year with 37 homes listed this month. For the year to date, overall home listings underwent a 1% change with 607 homes listed this year. Listings pending sales this month underwent a 0% change, with 28 homes contracted. Listings under contract for the year to date experienced a 16% change, with 370 homes under contract for this month.

The average sales price of a home in Prosper was $318,437, a -8% change from this month last year. Overall, for year to date, the average sales price was $329,702, a -2% change. Sellers received 93% of their asking price this month, which is a 1% change from last year. For year to date, sellers received 92% of their asking price, which is a -1% change. This month, homes spent an average of 72 days on the market until sold, which was a -38% change from last year. For the year to date, the average number of days on the market was 102, an overall change of -11%.

The current supply of active listings on the market this month was 182 homes. This is a change of -8% from the same month last year. For the year to date, the supply of active listings on the market was 202, a 4% change. This month there was a 5.9 month supply of homes on the market; this was a -21% change from last year. For the year to date, there was a 3 month supply of homes on the market, which is a -14% change from the same period last year. The average price per square foot was $91 this month; a -4% change from last year. For the year to date, the average price per square foot was $94, a change of -4%. Prosper real estate is known as area 59 in the North Texas Real Estate Information System. Information is believed reliable but is only as accurate as reported by the system in the month of December 2011.

The DFW Metroplex is also known as Dallas Fort Worth Arlington Metropolitan Statistical Area, a title designated by the U.S. Census which encompasses 12 counties within the U.S. state of Texas. The area is divided into two metropolitan divisions: Dallas Plano Irving and Fort Worth Arlington and is comprised of over 70 area cities both incorporated and unincorporated.

The DFW Metroplex is, by population, the largest metropolitan area in Texas, the largest in the South, the fourth-largest in the United States, and the tenth-largest in the Americas. The DFW Metroplex encompasses over 9,000 square miles of total area, making it larger in area than the U.S. states of Rhode Island and Connecticut combined. It is also the sixth largest gross metropolitan product (GMP) in the United States, and is approximately tenth largest by GMP in the world.

Prosper Texas Real Estate Sales were down 7% in November 2011 over the same month last year with 25 homes selling this month! For the year to date, overall home sales were at 338 homes sold, a 17% change from last year. Prosper Texas Real Estate total dollar volume of homes sold this month was $9,183,105 which is a -4% change from this month last year. For the 2011 year to date, the total dollar sales were at $112,414,540, which is a 16% change.

Register online for monthly updates in your city and your neighborhood automatically emailed to you at Prosper Home Values. Search Prosper Texas homes, Prosper Texas foreclosures, and Prosper Texas short sales at Homes in Prosper. This service is FREE and without any obligation from DFW Team Realty.

New Prosper Texas Real Estate listings experienced a -23% change for the same period last year with 32 homes listed this month. For the year to date, overall home listings underwent a 2% change with 570 homes listed this year. Listings pending sales this month underwent a -24% change, with 16 homes contracted. Listings under contract for the year to date experienced a 16% change, with 337 homes under contract for this month.

The median sales price of Prosper Texas Real Estate was $339,228 a -4% change from this month last year. Overall, for the year, the median sales price was $331.045 a -2% change. Sellers received 97% of their asking price this month, which is a 2% change from last year. For the year to date, sellers received 96% of their asking price, which is a -1% change. This month, homes spent an average of 79 days on the market until sold, which was a -12% change from last year. For the year to date, the average number of days on the market was 92, an overall change of -1%.

The current supply of active listings on the market this month was 206 homes. This is a change of 2% from the same month last year. For the year to date, the supply of active listings on the market was 203, which is a 5% change. This month there was a 6.9 months’ supply of homes on the market; this was a -9% change from last year. For the year to date, there was a 6.8 months’ supply of homes on the market, which is a -6% change from the same period last year. The average price per square foot was $95 this month; a -8% change from last year. For the year to date, the average price per square foot was $94, a change of -3%

Prosper Real Estate sales is known as Multiple Listing Service (MLS) area 59 in the North Texas Real Estate Information System. Information is believed reliable but is only as accurate as reported by the system in the month of November 2011. DFW Team Realty provides month reports on Prosper Real Estate Sales as well as Prosper Foreclosures, Prosper Short Sales, and Homes in Prosper. Please visit our website at DFWTeamRealty.com for the latest information on Prosper homes by price range and community. Search Prosper Real Estate at Homes in DFW

Prosper, Texas Home Values were DOWN 18% in October over the same month last year with 18 homes selling this month compared to 22 sold this month last year! For the 2011, year to date, overall home sales were UP 19 % with 312 homes sold compared to 261 homes sold last year.

Register online for monthly updates in your city and your neighborhood automatically emailed to you at Prosper Home Values. Search Prosper homes, Prosper foreclosures, and Prosper short sales at Homes in Prosper. This service is FREE and without any obligation from DFW Team Realty.

New listings were UP 65%% for the same period last year with 66 homes listed as compared to 40 listed this month last year. For the year 2011, overall home listings were UP 4% with 538 homes listed as compared to 518 homes listed last year. Listings under contract were DOWN 36% with 16 homes listed compared to 25 homes listed this month last year. Listings under contract for all 2011 were UP 16% with 313 homes listed as compared to 270 listed for all last year.

The average sales price of homes was UP 10% to $320,904 as compared to $290,423 for this month last year. The overall year of 2011 average sales prices were DOWN 1.5% to $330,319 as compared to $335,424 last year. Sellers received 93.2% of their asking price this month as compared to 91.4% this month last year. The average days on the market until sold in was 107 days compared to 82 days for this month last year UP 30%.

The current supply of homes on the market was 209 homes DOWN 2% as compared to 214 homes from the same period last year. This is 6.9 month supply of homes on the market DOWN 16% as compared to 8.3 month supply from this month last year.

It's that time again for a Wonderful Thanksgiving Meal with the kiddos!

On Friday, November 18, 2011 is Grandparents and Special Friends' Day at Folsom Elementary. All special guest are invited to have lunch with the students. Roasted Turkey with cornbread stuffing and several other sides will be served for lunch. Make sure you complete the meal form that will be coming home with your child to reserve a plate for you.

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