Tuesday, May 31, 2011

Saturday, May 21, 2011

Wednesday, May 11, 2011

Discount Realty! Selling for 1% 0% ...and even less!!!

7% seems about right to me.  Does it seem too high to you?
What about 6%?  5%?  Is there a standard rate in Murphy or Richardson?  What about 1%?  What if the 1% is really 4% and *YOU* have to do 80%?
Would you believe that the way discount realty is practiced by most licensees is illegal?!

Discount realty agents lure you in telling you they will put your house on the MLS for $500, or they'll sell your house for 1% and then that really means you pay 4% and they give 3% to the buyer's agent.  Trouble is, that every listing agent under contract to sell your house is obligated to a minimum service requirement via the State of Texas who issues their license.  The Texas Real Estate Commission requires licensees to "inform the party of material information related to the transaction, including the receipt of an offer by the broker, and answer the party's questions and present any offer to or from the party. The bill prohibits a broker who represents a party from telling another broker to negotiate directly with the broker's client."

Wow!  I can find you a listing on the MLS any day with the opposite of that in the description.  They often say, "contact the seller for more information" or, "send all offers to 972-555-5555" --which of course is the sellers fax line or an e-fax that the seller checks rather than the listing agent.

So what?

Fair question.  Folks, you get what you pay for.  It is conceivable that your transaction will never get off the ground with limited service.  It is completely reasonable that a licensee fighting violation charges or trying to cover his ASSets might not get your home sold and closed.  You get what you pay for.

JTOden Realty is an independent real estate brokerage so we set our fees ourselves.  Each listing and each buyer is unique therefore, each fee we collect is reflective of that individual buying or selling situation.

What is consistent is our commitment to OUR minimum service standard: We represent our clients like they would work if they had the time, inclination, experience, and passion to be the very best Brokers they could be.

Sunday, May 1, 2011

Is it Cheaper to Rent or to Buy?

I guess that depends on where you live.  
   In Dallas and its suburbs, you should buy.  However, if you move to Fort Worth, maybe you should rent?  New York City?  Definitely rent.  In fact, Inman News reports that It is cheaper to buy a home than to rent one in 39 of the nation’s 50 largest cities.  Inman cites a a quarterly report released today by real estate search and marketing site Trulia.
   The folks at Trulia have produced a rent vs. buy index that compares the median list price with the median rent on two-bedroom apartments, condominiums and town-homes in the 50 most populous cities in the U.S. listed on Trulia.com as of April 1, 2011. 

   Ken Shuman, Trulia’s spokesperson, stated, “With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying.
   “As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home — much more so than in previous years.”
   A price-to-rent ratio of 1 to 15 means that it’s much cheaper to buy than to rent in a particular city. 
Top 10 cities to buy vs. rent:
RankCityStatePrice-to-rent ratio
1Las VegasNev.6
Source: Trulia.com
   Inman reports that this index considers the total cost of homeownership compared to the total cost of renting. Calculations for total rental cost include rent and renters insurance.  The total cost of homeownership was highest, compared to the cost to rent, in New York; Fort Worth, Texas; and Kansas City, Mo.
Top 10 cities to rent vs. buy:
RankCityStatePrice-to-rent Ratio
50New YorkN.Y.39
49Fort WorthTexas30
48Kansas CityMo.22
47Los AngelesCalif.20
43San FranciscoCalif.19
41Oklahoma CityOkla.16
Source: Trulia.com