What is Earnest Money?

In buying or selling a home, buyers and sellers might be confused because of all the different new terminology used. Sellers don’t remember the terminologies and need refreshment and a first time buyer might need a dictionary to help them.

What is Earnest Money?

When a buyer offers to purchase a home, the offer usually includes Earnest Money.

Earnest Money is to demonstrates to the seller that you are serious and interested in buying the home.

Many agents would say that “Earnest Money is one percent of the offer price of the home”, I would say that it is negotiable and depends on how interested you are in the house. I had a buyer who offered 25% earnest money to show how interested he is in the property. In Texas, earnest money is usually paid to the title company within 2 days of the executed contract. (Executed contract is when buyer and seller have the contract signed by both parties)

Buyers are always wondering what will happen to the money in case they decided to buy or not to buy.

In case, buyers decided to continue with the contract and buy the house, the earnest money will be used as paid amount towards the price of the house (as it is part of the downpayment) and you will be able to see it on the HUD statement at closing.

In case, buyers decided to terminate the contract, it will depend on the terms of the contract. For example, when you make the offer, you request an option period of 10 days (A negotiable period of time that can be 7 to 10 days of the execution date). If you terminate the contract in day 5, you can get your money back. If you terminate the contract in day 11, you will lose your money.

It is very important to have a Realtor helping you in the process to explain the details in the contract and do the negotiation part for you and make your real estate transaction as smooth as possible.

I am a real estate professional representing buyers and sellers, my job is to do the best of your interest.

For more information, contact Jimmy Jimmy Farag, REALTOR Realm Real Estate Professionals Phone: (832) 303-5000 Cell: (832) 744-7424 Fax: (281) 598-5402 Homes for Sale in Sugarland TX www.SellMyHouseJimmy.com www.HoustonHomesforSale-Here.com www.HoustonForeclosureHomesFree.com

Missouri City Home Prices & Sales in 2011

MISSOURI CITY MARKET ANALYSIS This is the market activity in Missouri City in 2011 as of 6/14/2011 Homes for Sale 667 Foreclosures or Short Sales 102 % of Foreclosure of Homes for Sale 15.29% New Construction Homes 62 List Price $40,000 - $1,800,000 Houses SOLD in 2011 437 Sale Price $32,500 - $1,200,000 Average Days on Market 87 days Average Price per Sq. Ft. $89.45 *     * This information is about all the Homes in Missouri City TX, the analysis can vary from one neighborhood to another. For more information about the market analysis in your neighborhood, please feel free to contact me any time for FREE consultation.   For more information, contact Jimmy   Jimmy Farag, REALTOR Realm Real Estate Professionals Phone: (832) 303-5000 Cell: (832) 744-7424 Fax: (281) 598-5402 Homes for Sale in Sugarland TX www.SellMyHouseJimmy.com www.HoustonHomesforSale-Here.com www.HoustonForeclosureHomesFree.com

Sugar Land Market Analysis

SUGARLAND MARKET ANALYSIS
Homes for Sale	860
List Price	$43,000 - 3,495,000
Houses Sold	306
Sale Price	$45,000 - 2,950,000
Average Days on Market	72 days
Average Price per Sq. Ft.	$81.13
This information is about all the Homes in Sugarland TX, the analysis can vary from one neighborhood to another. For more information about the market analysis in your neighborhood, please feel free to contact me any time for FREE consultation.
You can also see all the Homes for Sale in Sugarland Search by Zip Code: 77478 - 77479 - 77498 Neighborhood: Avalon, Barrington Place, Greatwood, New Territory, Sugar Creek, Sugarmill, Sweetwater, Telfair
For more information, contact Jimmy Jimmy Farag, REALTOR Realm Real Estate Professionals Phone: (832) 303-5000 Cell: (832) 744-7424 Fax: (281) 598-5402 Homes for Sale in Sugarland TX www.SellMyHouseJimmy.com www.HoustonHomesforSale-Here.com www.HoustonForeclosureHomesFree.com

Why My House didn’t sell?

Why My House didn’t sell?

If you are asking this question that means that your house was either listed with a realtor or listed as For Sale By Owner (FSBO) didn’t sell. Getting phone calls from realtors the day the listing of your house expired telling you “we know why your house didn’t sell”? Others calling telling you “A house like this can be sold for $20,000 more”? OR Your asking price is way too high?

Honestly, I can’t tell you why your house didn’t sell without seeing it. There are many conditions that can be the reason for not selling. It can be the location, the condition of the house, the age, the upgrades, the floorplan, size of the yard, even a pole in the backyard can affect the price.

Location: Most of the buyers prefer houses that are in a cul-de-sac or a quiet neighborhood that is safe for the kids. If you are on a busy street or a busy street passing behind your house, that a negative point that has to be considered in the price.

Condition: When we are talking about condition, we are talking about the outside and the inside. Most homeowners maintain the inside and forget about the outside. The outside appearance is the first impression about the house. Many buyers drive around to see the area and how it looks from the outside before calling their agent for showing. Do you do regular treatment for termites and insects? Do you check the condition of the roof and foundation?

Upgrades: There is a difference between upgrades and maintenance. If your water heater is old and you change it, that a maintenance and is not a reason for a higher house price. Let’s think about it the other way, if you don’t replace the water heater, you will have to drop the price or give the buyer credit for it, but if you replace it, that will keep your house at the market price. Upgrade is changing the carpet with hardwood floors or laminate countertops with granite.

Foreclosures: Is there any foreclosed homes for sale or sold in the last 6 months in your neighborhood? Sold foreclosures can affect the market value of your house even if your house is in a better condition. Current foreclosures are your competitors in the market because banks price them to sell fast and noticed that many of them now drop their price every month, it can be an aggressive drop, $10,000 for couple of month and then starting dropping it by $5000.

These are just some reasons, it can be different from one house to another. So before you ask yourself why your house didn’t sell, check the competition, the condition, the location and if the price is matching accordingly. The price has to be the market price not just the price you want to get.

I hope that this blog is an eye opener for you and has some AHAs for you.

Please feel free to contact me any time.

Thanks,

Jimmy Farag, REALTOR Realm Real Estate Professionals Phone: (832) 303-5000 Cell: (832) 744-7424 Fax: (281) 598-5402 Homes for Sale in Sugarland TX www.SellMyHouseJimmy.com www.HoustonHomesforSale-Here.com www.HoustonForeclosureHomesFree.com

Short Sale: The way to avoid foreclosures and save credit

As we started to feel the downturn in the economy, the increase in unemployment across the nation and in turn the increase in the risk of losing one of the big dreams from each one, the dream home.

With the increase in unemployment, some terms come up more than others like bankruptcy, foreclosures, debts, etc.. and the ways to avoid them.

Today, we are going to talk about short sales, how to avoid foreclosure using short sales and why would a lender accept short sales.

What is a Short Sale?

When the house value falls below the outstanding loan, the short sale should be considered. For example, if your house value is $100,000 but your loan amount is $115,000.

This situation is assuming that you are facing foreclosure or behind on your payments but if you don’t want to sell your house, you don’t have to worry and you can wait until the market values appreciate again.

If you have to sell your house, short sales is the most recommended option. If you don’t go for the short sale, the remaining options are to try to sell your house for more than the loan amount, which will have slim chance to be sold in that price. (This still might depend on different aspects)

To qualify for a "Short Sale", homeowners must demonstrate a hardship and be financially insolvent. The homeowner should be able to demonstrate inability to make the loan payment. Most importantly, homeowners must prove a willingness to cooperate with the process.

Why would a lender accept short sale?

Short sale saves the lender from the costs of foreclosure and all the other problems that come with taking back the property. The costs of foreclosure can include not only legal fees, but also taxes, insurance and the expense of maintaining the home until the property is sold and repairing any property damage.

What is the advantage of Short Sale vs. Foreclosure?

Any option is better than foreclosure. Foreclosure is painful and embarrassing. Foreclosure effect on the credit is the worst, you can lose around 300 points. Foreclosure appears on your credit for 7-10 years and will make it harder to buy another house during that period.

With short sales, you retain some dignity in knowing that you sold your home. You don’t have to make mortgage payments during the short sale process unless you choose to. You might be eligible to buy another house in 2 years. If you act fast and start short sale before your credit report reflects late pay, you can save valuable credit points from running away.

So save your credit now and stop foreclosure, the faster you act before the delinquency is report to the credit bureau, the better.

For more information about short sales or other available options to sell your house in the Houston area and the surroundings, go to www.webuyhouseshouston.net

Jimmy Farag, Realtor with RE/MAX Southwest specialized in short sales and distressed properties.