Booming Real Estate Market In North Texas - 05/02/21 - Segment 3
MOLESTINA: So you've made the decision to sell your. Home now the question is, do you get an agent or do you try and sell this by yourself. I look at the pros and the cons of each side. Truth is you could save a lot of money selling your own home in this market, but only if you know what you're doing. Tammy Redmond recently took that challenge on selling her house in Fort Worth.
REDMON: Just kind of thought about it and looked at the numbers and decided I could do it.
MOLESTINA: For her like many owners who sell their own home it's about hanging on to as much money as possible.
REDMON: I just thought to myself, if my house sells in three days and I pay somebody $15,000 of my hard earned equity. I'm going to be very unhappy with myself.
MOLESTINA: Thankfully it worked for her with her first offer within a few days, a second offer, which she accepted came later. But experts say if you aren't aware of the process and don't do your research, there are many opportunities for you to misstep.
JACKSON: We've got inspections, repairers, insurance, and something that's come up in our area is a property standard federally declared disaster area. What does that mean? What kind of inspections do we need to do to get that across the finish line. And I just think that the buyer and seller are going to be prepared to answer those questions.
MOLESTINA: Scott Jackson is a Dallas realtor who warns Texas real estate documents change all the time.
JACKSON: These for sale by owners, these buyers are unrepresented don't know the features and why these changes have been made in the contracts. And so it would be like going to represent yourself in court and you don't want to have an attorney, you want to represent yourself.
MOLESTINA: So if you still want to go at this buy yourself, there are a couple of tips you can take according to experts. Number one, consult with an attorney in case you need some help with the paperwork. Secondly, vet your buyer and make sure that they can perform on their end and if you have any questions about their finances, you can simply pick up the phone and speak to their lender directly. The blunders of a novice or something title company say can ruin a deal or even worse get you sued.
THERIOT: Not filing out the contract correctly. You know they don't know how to do the earnest money and what amount should be in the honest money or there should be option money, what amount that should be, and then it comes up later down the road. And something is not filled out correctly in the contract. Surveys are a huge issue, people don't know how to fill out the contract correctly to say who pays for the survey.
MOLESTINA: And those are just some examples Redmond says she did some research did her own marketing and she did pay an attorney to go over the paperwork.
REDMON: It just gave me a sense of comfort and it only cost about $300. So it was well worth that investment.
MOLESTINA: Meanwhile Jackson reminds sellers.
JACKSON: One of the most expensive investments that someone is going to handle and you know do they really want to go it alone in this kind of competitive market.
MOLESTINA: Bring in our friend and colleague Jason Allen once again to talk a little bit more about the big discussion happening right now this time of year with homeowners. Everywhere you go they're going to be talking about their taxes, right now those notices are going out.
JASON: Yeah, you're getting those envelopes in the mail and you're opening it up and you're seeing what the appraisal district values your home at and it's immediately causing eyebrows to go up. And jaws to drop and people are thinking there is no possible way that my home could be worth that much and that I could sell it for that much. But as we talked about earlier, with prices of new homes rising over the past year, building hasn't stopped, buying hasn't stopped. And as those prices have gone up it has dragged the price of existing homes up with it. So I know a lot of people will be shocked by that, but those prices are what we're seeing on the market.
MOLESTINA: People talk about this every year when it happens, but this seems really extreme this time around when you see just how far up some of these bills are going up. What are folks being told to do, if they want to contest this. And I bet a lot of them think they have a case but maybe they go before the appraisal board and maybe they don't have one at all.
JASON: Yeah, as we were talking about that's the surprise for a lot of them.
JASON: They think, my house can't possibly be worth that much and it can't possibly be worth what my neighbors are, but then you start looking at the comps in a lot of times it is. Protester the first thing, you know you don't even have to go that to that point. You can go talk to an appraiser at your appraisal district and just see if you can come to some sort of an agreement. And if you can't come to an agreement on that price, then there are different routes to go through.
A lot of counties have online protesting now where you can just offer them a number, you can input your evidence, the pictures of your home, the condition of your home. And a lot of times too it's very important to not just put your home but compare it to the other ones that the appraisal districts are using to come up with those numbers. You want to show that your home is not as well off as that home that they're comparing it to and try to get it dropdown that way.
MOLESTINA: I wonder if you get a sense that people are actually being successful with these appeals.
JASON: They are and we've seen some evidence of that. I mean, we've seen a lot of homes this year that didn't go up one of the reasons for that is people who have protested in the past and they've been successful did either holding their value or even bringing it down just a notch. Appraisers have to show very clear and convincing evidence. The next year after you've won a protest, they have to show clear and convincing evidence the next year that it should go up again. So when you're successful, that's another reason to go ahead and lodge a protest because it not only helps you this year, it'll help you next year and that compounds down the line.
MOLESTINA: What sort of reaction are you getting from my county officials who have to field all of this. I mean do they agree that this has sort of been extreme. I mean something's got to give right?
JASON: They're aware of it. Yeah, they're aware of it and a lot of those decisions come out here later in the summer and in the fall and that's when cities and counties and all those other taxing entities are going to look at those values and decide. Do we stick with the same text rates, can we drop things down a notch, so that it doesn't end up being an additional tax burden on homeowners. And we've seen some entities do that. However, when you look at the overall economy right now and you look at the way things have dropped off over the past year because of the pandemic, it may be difficult for some of those entities to do. You may very well see a lot of people with higher tax bills at the end of the year.
MOLESTINA: I've even heard people even half jokingly or maybe not joking at all Jason. Say, well you know if our kids were home where we're at home for so long during the past, year maybe I don't need to pay that tax to the school district in full. You know I've heard people kind of laughed that off and then kind of get a serious face and say no, no, but really. Yeah, people just want to break anywhere that they can, they're growing up so much.
JASON: Yeah, you will even hear people talk about not being able to afford to stay in their own home. Now that's happening probably in the homes that are lower valued, people who are on fixed incomes who can't afford that increase in taxes and valuation, but that's a real consideration for people. And it also keeps some people from being able to jump into the market and buy new homes as well. And I'm sure everybody's aware of seeing all of the multifamily and more dense housing developments that are around here that's in part that comes out of people not being able to necessarily jump into the market and afford their own single family home.
MOLESTINA: We're definitely seeing a lot of do things for the first time around here and on the extreme side of things. So we'll keep watching. We'll keep reporting and we'll see where all of this goes Jason, thanks for your time.
JASON: Goodbye, I appreciate it.
MOLESTINA: We'll be right back.