Dallas Real Estate Blog

Most Expensive Homes In North Texas

2012-01-25T11:52:00.003-06:00

Here is the list of the most expensive home sales for 2011 in North Texas. Not surprisingly, the Park Cities (as Highland Park and University Park are collectively known) delivered 4 of the 10 most expensive sales, with the Preston Hollow area only accounting for two.

#10 - 1745 Turbeville Rd. (Hickory Creek)

List Price - $5.6M.

Sold Price - Not Disclosed

#9 - 4636 Chapel Hill (White Rock Lake)

List Price - $5.995M

Sold Price - Not Disclosed

#8 - 10340 Gaywood Rd. (Preston Hollow)

List Price - $6.495M

Sold Price - Not Disclosed

Only 26 days on the market!

#7 - 6900 Baltimore Dr. (Uber Swank Volk Estates in University Park)

List Price - $6.99M

Sold Price - $6.5M

Only last 14 days on the market!

#6 - 9338 Meadowbrook (Preston Hollow)

List Price - $6.795M

Sold Price - Not Disclosed

#5 - 6815 Baltimore Dr. (Volk Estates Lot in University Park)

List Price - 6.99M

Sold Price - $6.5M

Only 27 days on the market!

#4 - 3816 Turtle Creek Dr. (Private street that overlooks Turtle Creek)

List Price - $7.9M

Sold Price - Not Disclosed

#3 - 3711 Lexington Ave. (Highland Park)

List Price - $8.5M

Sold Price - Not Disclosed

Only 27 days on the market!

#2 - 3851 Windsor Ln. (Two Adjacent Lots in University Park)

List Price - $9.6M

Sold Price - Not Disclosed

#1 - 1850 Turbeville Rd. (Hickory Creek)

List Price - $15M

Sold Price - Not Disclosed

Buyer Incentives Are Pointless

2011-09-14T12:10:00.005-05:00

But perhaps one of the most ridiculous incentives I've seen recently is a $1,000 buyer's agent bonus for this home listed at $800,000...wow. $1,000 extra bucks. Great idea Ms. Listing Agent.

P.S. You're an idiot.

Best Use Of For Sale Sign. Ever.

2011-08-09T12:33:00.004-05:00

This is absolutely one of my all-time favorite real estate pictures. According to my friend Sean, who sent me this picture via Facebook, this picture was taken in the Park Cities this week. So, is the house for sale or the car? I'm confused.

Proof That Pictures Can Make All The Difference

2011-08-03T17:35:00.008-05:00

I recently listed this property at 1600 Abrams Rd. in Dallas. The "Before" pictures were taken by the Realtor that previously listed the property. The "After" photos were taken by yours truly. As you can see, great photos can turn a property from "blah" to "Wow!". Some agents simply don't take the time to snap good photos. Something I've never really understood.

It's also important to note that this home was vacant so I had the property staged. Staging is an absolute MUST in today's real estate market. However, I'm not so sure about staging a property with pets....but furniture is a definite must have. Props to Kira Sauer of Bliss by Kira for doing a great job staging this wonderful home!

Bad Real Estate Photos: Not Just For "Cheap Homes"

2011-08-03T16:25:00.008-05:00

Lately I've been working with a large number of buyers. This translates into hours upon hours of looking through hundreds of homes - and their photos. Now, we all know there are tons of bad real estate photos out there. But what I don't understand is why sellers put up with them? Surely the owners of these homes realize the photos their agent took are terrible. One would also think bad photos simply won't be acceptable for high-end homes, right? (See the two listings below for the answer.)

I spend several hours taking professional photos of every single one of my listings, regardless of the list price. I even have special computer software that I use to process the photos and touch them up as needed. I do this because I understand the power photos have when attracting potential buyers. Yet for some reason there are still agents out there - and their sellers - who don't seem to get this. Here are some examples. Enjoy!

7225 Turtle Creek Blvd. - $2,295,000

Loving the Casa Magnetica angle.

Kitchen is "light and bright."

More beautiful side yard. Comes complete with water hose.

We're uncertain what this photo is supposed to show us.

BAD REAL ESTATE PHOTOS BONUS: 4223 Bordeaux - $7,450,000

You would think a $7,450,000 home would have a little more, I don't know, pizazz! in the photos. Someone PLEASE help me understand how this is acceptable.

Sales Statistics For January thru May: A year-over-year comparison

2011-06-28T15:49:00.005-05:00

I wanted to see how the YTD (Jan. - May) sales numbers for 2011 compared with last year's sales numbers. And since we all know there was that little "Buyer's Tax Credit" thing that falsely inflated our sales numbers for 2010, I went back to 2009, as well. So take a look and let me know what you think.

The first thing that sticks out to me is the 9% drop in the number of sales for Area 12 from '09 to '11, yet during the same time Area 12 has seen roughly a 25% increase in average sales price. This is intriguingly coincided with an almost 20% increase in DOM. I'm at a loss as to how to explain this. So perhaps some of you stats geeks out there can help out.

Area 12 (East Dallas/Lakewood/White Rock Lake)

Year # Sales Sales $ $/sf DOM

'09 707 $221,465 $118 98

'10 751 $229,455 $124 93

'11 648 $276,756 $134 117

***********************************************

Area 11 sales have increased over 50% during this same time period in 2009, yet from '09 to '10 the sales prices dropped 14%, only to increase slightly in 2011. Maybe this means North Dallas and Preston Hollow hit the bottom? If so, aren't you mad you missed out on some great deals?

Area 11 (North Dallas/Preston Hollow)

Year # Sales Sales $ $/sf DOM

'09 152 $842,824 $217 137

'10 217 $728,165 $187 162

'11 232 $761,022 $192 146

***********************************************

Sales in the Park Cities have increased a stunning 80% since '09, with a modest 8% increase in average sales price. This seems like a solid upward trend. This seems much easier to interpret than the other two areas.

Area 25 (Park Cities)

Year # Sales Sales $ $/sf DOM

'09 161 $1.049M $292 136

'10 275 $1.072M $298 143

'11 291 $1.133M $309 127

Let's Take A Look At The Tribute Lakeside Golf and Resort in The Colony, TX, shall we?

2011-05-12T13:25:00.000-05:00

I recently received an email about The Tribute Lakeside Golf and Resort Community (you can read the press release below) and thought I'd look into it. You know, since real estate is kinda my thing. It's located in The Colony, which is considered far far far away from us lazy Dallasites, and is located on 1,150-acres on Lake Lewisville. That's quite the spread. According to the website, there are two premier 18-hole golf courses, parks, pools, gardens and playgrounds. Apparently there are also plans to build an elementary school in the future.

The developer is Matthews Southwest which is responsible for turning the historic 1913 Sears and Roebuck building into the very successful and very hip Southside on Lamar; a thriving residential, arts and entertainment area. Matthews Southwest is also the developer for the highly anticipated and Omni operated Dallas Convention Center Hotel. You certainly can't argue with their resume. Plus, they're based here in Dallas, and we like that.

There looks to be seven home builders building homes in the Tribute from the $240's all the way to over $1M. That's quite ambitious given the location, however, the Lake Lewisville location will certainly attract a lot of interest simply due to the lack of waterfront property in North Texas. Sure, there is Highland Village and Little Elm, but they don't have The Colony's decent toll road and 121 access - and IKEA and Stonebriar Mall are nearby, as well.

I'll be keeping an eye on The Tribute to see how it fairs over the coming years. On the surface, it reminds me a lot of the much larger, 2,500-acre Castle Hills community and the much smaller and Croatian inspired, 45-acre Adriatica in McKinney. Both of these communities were developed with a particular theme in mind; unlike the somewhat generic Stonebridge Ranch community in McKinney. The Tribute is clearly going for the Old World theme. Now the question is, will people buy into it?

Golf Course Real Estate still has a Pulse in the Heart of Texas

For many, it’s the American Dream: Life, Liberty and the Pursuit of… Golf Course Living. In 2011, the first Baby Boomers turn 65 and the demand for golf course real estate in Sunbelt states will likely skyrocket as Boomers look for homes in a climate conducive to their hobby.

But those who have long dreamed of living adjacent to fairways and greens could be disappointed. Development of a golf course community is exceedingly rare in this slumping economy. After almost two decades during which new golf course communities spread like wildfire across the Sunbelt, both the real estate and golf industries have suffered major setbacks.

In 2010, builders started on 15,000 homes in the Dallas-Fort Worth area, according to Ted Wilson of Residential Strategies, Inc. That’s down nearly 70% from the 51,000 housing starts in 2006.

New golf course construction has also taken a major hit. The overbuilding of courses in the 90’s and early 00’s oversaturated the market. When the recession descended upon the industry, many courses were forced to close, some in the middle of construction.

With every rule, however, there is an exception. In 2010, only one course opened in The Metroplex. What vaults this course from exception to veritable anomaly is it is part of a residential community.

The Old American Golf Club, located in The Colony’s The Tribute Resort Community, opened its doors to public play in September 2010. In addition to fairways, greens, bunkers and water hazards, The Old American features brand new residential lots alongside select sections of the course and dozens more just off it. In the desert that is the current landscape of new golf course development, The Tribute is an oasis, affording golfers the opportunity to live alongside the game they love.

The Old American and The Tribute were brought to life by Matthews Southwest, a DFW-based developer that has transformed The Metroplex’s real estate market through urban redevelopment and suburban lifestyle development. In The Tribute, Matthews Southwest saw the opportunity to deliver a suburban community where people could enjoy their hobbies right outside their front door. The community’s location on the shores of Lewisville Lake, combined with The Old American and The Tribute Golf Club (opened in 2005), has provided residents with access to golf, boating and fishing.

Even in the down economy, builders and homeowners have pounced on the opportunity The Tribute presents. Matthews Southwest reported a more than 100 percent year-over-year increase in residential lot sales at The Tribute in 2010. The community’s 1,150 acres showcase many of North Texas’ most prominent and distinguished builders, offering home designs that emphasize the Old World-themed atmosphere of The Tribute and begin in the 240’s.

As Baby Boomers and golf enthusiasts search for a place to live in harmony with the game they love, they may be hard up as developers and builders continue to tighten purse strings. However, The Tribute serves as proof that golf course real estate still has a pulse in the Heart of Texas.

Short Sale vs. Foreclosure: What Are Your Options?

2011-05-09T17:43:00.004-05:00

Let me give you a very common real estate scenario, one I have encountered more frequently in the past several years.

Mr. Seller paid $350,000 for his home in 2006. He now wants to sell his home because he [got relocated/got married/wife had their 4th child]. As a real estate agent, I now have the awkward responsibility of telling him his home is currently worth $315,000 in today's real estate market. He then tells me he owes $340,000 on his mortgage and that he doesn't have the cash to bring to closing and asks me what his options are.

If the above scenario sounds familiar, you're not alone. So, here are your options:

1. Bring enough money to closing to cover your remaining mortgage, plus closing costs. For example, you owe $340,000 on your mortgage but you can only sell your home for $310,000. You are responsible for the $30,000 difference, plus closing costs.

2. If #1 isn't an option, then you need to consider staying in your home until you are in a position to sell your home without bringing money to closing. Or, if you have to move you can choose to rent out your home until you're in a better financial position.

3. If neither of the above options sound good to you - you don't have much cash but you HAVE to sell your home and don't want to rent it out - then you need to consider a short sale. Meaning, you need to negotiate with your mortgage company and ask them to cover any shortage in paying off your mortgage after your home sells. Basically, this is like option #1, except you're asking the bank to cover the $30,000 shortage, plus your closing costs. This will negatively affect your credit, and most short sales are huge headaches and can take many months to close, but you will be able to move on to the next chapter in your life without taking a huge financial loss.

4. Just walk away. Many homeowners have chosen to simply walk away from their home and let go into foreclosure. This will negatively affect your credit more so than a short sale, but you won't have to deal with the headache of a short sale, or the ensuing months of paying a mortgage on a home you can no longer afford - or no longer want. This option is very attractive to the rich. e.g. 'Why keep paying on a home that is depleting my bank account and has lost over 50% of it's value since I bought it? Let the bank deal with that headache!' Having enough cash to get them through the next 7 years while their credit score recovers is also helpful.

Our real estate market will continue to force many people to choose between the scenarios I have outlined above. And every one's situation is going to be different. You need to decide what works best given your current financial situation. Talking openly and honestly with your real estate agent is the best advice I can give you. I make decisions based on the information my clients give me. If you tell me you're not in a hurry to sell and you're financially comfortable, then my advice will be much different than if you told me you needed to sell in the next 45 days or you will no longer be able to pay your mortgage, car payment, etc. Unfortunately, people tend to tell me the former, when the truth looks more like the latter.

Mortgage Interest Rates Will Increase on 1/12/2011

2011-01-11T17:00:00.005-06:00

I just received the following email from a lender I work with very closely. This is yet another "Big Bank" move that penalizes many people, even if they have great credit. (And we all know how I feel about banks) While I don't particularly think this will have a huge negative impact on our real estate market, I certainly don't think it is going to help matters as we delve into 2011. So, if you've been shopping for a loan, and don't plan on putting down at least 25%, I highly recommend you call your lender immediately and lock-in your rate!

I wanted to send an urgent email advising that rates are essentially going up for all conventional loan clients tomorrow and this is not the result of daily market action. All lenders, including me, will be subject to the new rate structure on conventional loans.

Fannie Mae and Freddie Mac will institute new “risk based pricing” adjustments to rates essentially for all buyers who don’t put at least 25% down regardless of how high their credit scores are. (You read correctly.) The mortgage giants, which account for 75% of the mortgages in the United States, have leveled these “risk based pricing” adjustments in the guise of charging a premium to those that didn’t take care of their credit and “rewarding” those that did. The issue is they seem largely punitive in nature, even for A+ credit individuals. Additionally, anyone with less than a 740 credit score can expect to see the rate rise exponentially the closer the score is to 620. For example, a buyer with a 699 credit score would see a rate that is around .5% higher EVEN WITH 20% down!

The bottom line is the overwhelming majority of conventional home loan applicants will see their rates go up effective tomorrow, Wednesday, 1/12/11. Since rates are still at historic lows, the true effects of this won’t be as drastic. As the rates start to rise due to market forces, this could become a significant impediment to home purchases whereby otherwise qualified and ready homeowners are forced to rent. While no one will disagree that sensible lending practices from Fannie Mae and Freddie Mac must be utilized, there may come a time where we make our voices heard about the potential negative effects on our nations recovery as a result of this action.

Just trying out some fancy HTML slideshow stuff

2010-12-14T22:14:00.004-06:00

North Texas Is The Fastest Growing Region In The Country

2010-10-20T09:40:00.005-05:00

This may very well have been what Frisco's city limit signs looked like before the millennium, when very few people in North Texas knew much about the then fledgling town. But now, according to this MSN Real Estate list that names the Top 15 Fastest Growing Cities in the country, Frisco is the fastest growing city in the entire country! North Texas made a strong showing with McKinney surprisingly coming in strong at the #2 spot, and Denton coming in respectably at #13.

The only other Texas city to make an appearance on the list is Round Rock at #7.

Vote For Me And Win $100!

2010-08-03T17:46:00.004-05:00

Ok, so you won't really win $100. But you should still vote for my blog anyway. DREB has been nominated by Zillow.com as one of the Best Real Estate Blogs in Dallas and I need your support!

You can vote once a day, every day, up to August 11th, 2010. And don't even pretend you don't have time at work to play around on the internets and the Facebooks. I know you better than that.

Now go vote!

(P.S. Thank you for your support.)

Marketing 101: How NOT to Photoshop Pictures of Your Listings

2010-08-03T17:23:00.003-05:00

I admit that from time to time I will photoshop some pictures of my listings. You know, get rid of a few brown spots on the lawn, enhance the colors of the landscaping and grass. But the above photo is just embarrassing. Did this agent have his 6-year-old photoshop this for him?

That being said, the house in under contract. Let's just hope for the seller's sake this agent's negotiating skills are better than his/her photoshop skills.

The Dirt In Highland Park Has Appreciated Over 500% Since 2006

2010-07-14T20:13:00.008-05:00

4311 and 4321 Lakeside Dr., both listed at approximately 1.17 acres, have just been hoisted on the market for a mind-boggling $16,225,000 and $15,100,000, respectively. Something about this new listing just isn't adding up. Literally. Nearly everyone knows the piece(s) of land I'm talking about. The gorgeous treed corner lot where Lakeside Dr., Preston Rd., Oaklawn Ave. and Armstrong Ave. all meet. Or some of you many know it as the piece of land across the street from where Dallas Cowboys owner, Jerry Jones, lives.

So, the short history of these lots is they were both comprised of 4310, 4311, 4320 and 4330 Lakeside Dr. and they were all four listed for sale together in the MLS back in 2004 under one address, 4311 Lakeside Dr., for $7,500,000. The entire property eventually sold after a whopping 673 days (almost 2 years) on the market for a meager $6,025,000. While the property's owner is listed in the tax rolls as the Town of Highland Park, I seem to recall chatter that a neighbor who lives on Armstrong purchased the property to make sure the property sold to a nice individual that would want to build a HUGE single family residence on the property, as opposed to a church or some other commercial development. But who knows if that's true or not. I certainly don't.

Anyway, a few days ago I saw a couple new lots listed for sale in Highland Park with the addresses 4311 and 4321 Lakeside Dr. And then I see the redonkulous list price! I quickly whipped out my trusty TI-82 calculator to discover that the appreciation rate from $6,025,000 in 2006 to over $31,000,000 in 2010 is a nonsensical 520% appreciation rate over 4 years.

Sure this piece of land is desirable, but $6M to over $30M in 4 years for the same exact piece of dirt? Am I missing something here?

HGTV's "My First Sale" Is Coming To Dallas!

2010-05-19T11:39:00.003-05:00

Yesterday I got a phone call from a casting director for HGTV's show "My First Sale" asking me if I wanted to apply to be a part of the show (and also to share the press release to other area agents). Here is the press release:

SELLING YOUR FIRST PLACE? Then HGTV is looking for you! MY FIRST SALE, the popular primetime HGTV show, is looking for first-time home sellers (and their real estate agents!) in the Dallas/Fort Worth and Washington DC/Arlington VA areas.

We are looking for fun, high-energy people who are just starting the process of selling their first place! Our cameras will be there to capture all the trials and tribulations, stress and success of prepping for sale, pricing, negotiating, and ultimately selling a home for the first time.

Taping will begin in Spring 2010 and will continue through Winter 2010. Ideal candidates will be motivated, financially candid people who want to share the experience and the purchase details with HGTV and their audience. Singles, couples and families are all invited to apply!

If selected to appear on an episode of My First Sale, home sellers will receive a DVD copy of the episode to enjoy for years to come. Real estate agents will also receive a DVD of the episode. If this sounds like fun, first-time sellers should apply now for immediate consideration!

According to the show's page on HGTV.com the show is billed as follows:

Think buying your first place is tough? Try selling it! My First Sale takes the proven and successful docudrama format of My First Place and turns it upside down — telling the story from the seller's point of view. Selling your first place means the stakes are even higher than when you purchased. More pressure, more jeopardy, more to gain — and potentially thousands to lose. For HGTV viewers, My First Sale has even more drama and, most important, more valuable takeaways to help viewers make top dollar on their own sale.

I personally haven't seen any episodes but it sounds like a great idea. Hopefully it won't be the equivalent of House Hunters where the buyer sees 5 homes and makes an offer on one of them. Then the buyers get a phone call while they're having a picnic in the park with their 2 and a half children and - POOF! - instant happy homeowners! That ain't how it works folks.

So if any Realtors or homeowner's out there are interested shoot me an email. I'll be happy to send you the application and contact information.

Gotta run and go get my hair did for my casting video!!!

Are Interest Rates Really Going To Rise? Experts Say "Yes!"

2010-04-30T13:28:00.006-05:00

Consumers, mortgage lenders and real estate professionals are all wondering what will happen to interest rates now that the Tax Credit is expiring. Earlier this year many financial types said interest rates will definitely rise in the second half of 2010. So far this year the interest rates have been hovering around 5%, so will interest rates rise, and if so, how high will they go?

According to Ken Rosen, chair of the University of California Fisher Center for Real Estate, by keeping rates so low, “We are encouraging asset bubbles in the stock market, bond markets, and global real estate,” Rosen says. This Inman News article states interest rates will rise for the next 10 consecutive quarters and will be at an average of 5.8% by the 4Q of 2010.

Here is a very informative spreadsheet from the Mortgage Bankers Association showing the predicted rise in interest over the next 2 years. Spoiler alert - by 4Q of 2012 30-year fixed interest rates are predicted to be around 6.6%. Yikes!

So if you've been sitting on the fence, whether to refinance or buy a home, it might be time to jump off that fence and take advantage of the low interest rates while there's still time.

The Onion Pokes Fun at Real Estate Agent Photos

2010-04-12T12:29:00.004-05:00

Thanks to my friend Ken for passing this Onion article my way. Here is a link to the article and I've also copied it below. It pokes fun at the fact many Realtors put their photos on their signs, business cards and even billboards. My favorite line from the article,

"You know, in a way, I'm sort of glad Mary and I never met face-to-face. Touring the property with her assistant and conducting the negotiations over the phone really helped maintain the mystique of that wonderful, wonderful sign. I can only assume Mary's heavily made-up visage conveys an even greater degree of trust in person."

Hopefully both real estate agents and consumers will get a kick out of this. I know I did!

I Wasn't Going To Buy This House Until I Saw The Realtor's Headshot On The Sign

BY SAM CONE
MARCH 16, 2010 | ISSUE 46•11

ARTICLE TOOLS

Buying a house is one of the biggest decisions a person can make, so when I set out to purchase my first home, I didn't take the matter lightly. Sure, the place I ended up with isn't in the greatest shape, or even in the best part of town. And by any fair market estimate of its value, I certainly overpaid.

But as far as I was concerned, the deal was sealed the moment I saw real estate agent Mary T. Ellington looking back at me from that Re/Max sign, her face just barely visible over the rampant weeds growing in my new front lawn. For my money—$256,560 of it, to be exact—there's nothing like a poorly lit, oversaturated photograph to let me know that I'm working with a friend and not just someone out for an easy commission.

To be honest, I had serious reservations the first time I drove through what is now my neighborhood. I have two kids, so the lack of good schools in the area and the dangerous highway mere feet from the unfenced backyard were sources of concern. But after I passed more than half a dozen of Mary's signs in front of house after ramshackle house, I just knew that if she sold me a home I would be her No. 1 priority. And if there was any doubt left in my mind, it was immediately eradicated by the quote right below her picture: "You're my No. 1 priority!"

But the slogan was really just the icing on the cake. Seeing Mary's insincere, plastic smile and stiffly coiffed hair several times had already reassured me that I was making the right choice.

Still, I had a few lingering concerns, which is normal with any major life decision. So it's a good thing I drove past that billboard bearing the selfsame image of Mary on my way home! There's a certain level of gravitas and legitimacy that only a 30-foot-high, clumsily retouched photograph of a middle-aged woman can achieve. Text-only ads may have their flashy exclamation points, and business cards may be embossed and glossy, but I don't think any of those things could ever convince me to plunge myself and my family into insurmountable debt the way that awkward photo did.

You know, in a way, I'm sort of glad Mary and I never met face-to-face. Touring the property with her assistant and conducting the negotiations over the phone really helped maintain the mystique of that wonderful, wonderful sign. I can only assume Mary's heavily made-up visage conveys an even greater degree of trust in person.

I just wish every crucial choice in life could be guided by hastily produced visual aids! Sure, finding the very best attorney, bail bondsman, or elected representative is no more difficult than perusing the signs at a bus stop or the contents of one's mailbox. But what if I need a babysitter or a qualified psychiatrist? Or—God forbid—a funeral director?

I guess what I'm saying is that it's just such a relief when professionals take the time to demonstrate a true respect for my intelligence. By having their picture taken in front of that same sky-blue background used in all my school yearbook photos, it's clear they're trying to put an honest face on whatever transaction might transpire between us, and not at all employing some sleazy, calculated tactic they learned during a business seminar at a hotel by the airport.

The airport with a major flight path right over my new house.

Will A Second Wave Of Foreclosures Hamper Our "Recovering" Real Estate Market?

2010-03-15T13:26:00.005-05:00

This is a great article from the Washing Post talking about the possibility there will be a huge onslaught of foreclosures coming down the real estate pipeline in the not so distant future. This second wave of foreclosures will most definitely ruin any chance of a real estate recovery. What is the likelihood of this happening in 2010? According to this article the numbers are pretty telling.

"Lenders are deluged by late-stage delinquencies. The pent-up foreclosure inventory is there," said Massoud Ahmadi, director of research for the Maryland Department of Housing and Community Development.

Also from the article,

In addition to those already in default are 11 million more U.S. borrowers who owe more on their mortgage than their home is worth -- known as being underwater -- and are in danger of becoming delinquent, said Sam Khater, chief economist for First American CoreLogic.

I briefly touched on this topic late last year and it sounds like I wasn't that far off. I feel like the government is trying to help stave off this impending second wave of foreclosures. But until the banks get their act together and help homeowners adjust their current mortgages and assist with shortsales I feel like we'll be dealing with the threat of foreclosures for a very long time. From the article,

"Banks have remained in foreclosure paralysis, allowing that backlog to get larger and larger. You can't do that indefinitely," said Sandeep Bordia, head of U.S. residential credit strategy at Barclays Capital.

I agree, but banks won't change unless someone forces them to change the way they're handling this crisis. Until then I guess we'll all just have to cross our fingers and hope for the best.

It's Time To Spring Forward!

2010-03-11T19:34:00.002-06:00

Don't forget to turn your clocks AHEAD this Sunday, March 14th at 2:00am!

Short Sale Hell: Another Reason Why Banks Are Killing Our Economy

2010-02-23T23:10:00.004-06:00

I'm currently negotiating a short sale with Bank of America. It's a joke. I also need to point out I've been involved in 10 successful short sales, so I know how these things work. Unfortunately, how each bank handles short sales is exactly why people are choosing to walk away from their homes and accept foreclosure - because it's less of a headache than talking to some $8.00/hour bank employee who could care less about your financial hardships.

This is good article explaining how banks are killing real estate values by not being able to work out short sales in lieu of foreclosing on the home. Here are some key points of the article.

[Short sales are] also a better option for banks: According to one analysis, short sales resulted in loan losses of only 19 percent, compared with an average loss of 40 percent on homes sold after foreclosure.

According to research firm Campbell Communications, only 23 percent of short sale transactions are actually completed. "Three out of four potential short sale transactions fail, principally because the mortgage servicer takes too long to respond to the offer," said Tom Popik, author of a February survey of real estate agents. "When these same properties are later sold it further depresses real estate prices."

Having spoken with these banks on behalf of my clients over the years I can tell you they are in no hurry to help anyone out of a tough spot. If your home is about to go into foreclosure and there is an offer on the table, they will not move faster to make the short sale happen.

Example, instead of the bank accepting $300,000 for a short sale, they take too long negotiating the offer and the home goes into foreclosure. The home sits vacant without utilities (or appliances) for months and deteriorates quickly. The home goes on the market as a foreclosure 3 to 6 months later and sells for $250,000 or less, which doesn't include the tens of thousands of dollars in attorney and processing fees paid by the bank. Smart financial decision on the bank's part, right?

And these "smart" bank folks are who we, US taxpayers, bailed out? *Scratches head*

6155 Palo Pinto Ave. Dallas, TX 75214

2010-02-14T21:21:00.006-06:00

I'm testing my iPhoto slideshow software. Let me know what you think.

The song is Home by Michael Buble. (See what I did there?)

Want to Save Money? File Your Homestead Exemption

2010-01-27T20:42:00.004-06:00

Here's an email I sent to all my clients recently. I was going to post this soon after said email was sent but then I got busy. I'm very important you see. Thus, I get busy from time to time. And when I say busy, I mean forgetful.

If you purchased a home in 2009, please read the following information on Homestead Exemptions that I copied from the Dallas Central Appraisal District website and applies to the entire state of Texas.

"A property tax exemption excludes all or part of a property's value from property taxation, ultimately resulting in lower property taxes. To qualify, the property must be designed or adapted for human residence and the homeowner must own the property on January 1 of the year application is made. The person claiming the exemption must reside at the property on January 1 and cannot claim a homestead exemption on any other property. If more than one individual (not a married couple) owns the property, each separate individual must make application if they reside at the property. Exemptions are allocated according to percent of ownership interest the applicant has in the property. The exemption application must be completed, notarized and include a driver’s license or social security number and date of birth."

If you have not already done so, please go to the relevant district website below where your property is located. For most of the websites you can search for your property and then click a link to print out a homestead exemption form. I have also included the phone numbers for each of the appraisal districts should need to contact them directly. And of course, you are always welcome to call me if you have any questions about the homestead and other exemptions.

Dallas Central Appraisal District

214-631-0910

www.dallascad.org

Collin County Appraisal District

469-742-9200

www.collincad.org

Tarrant County Appraisal District

817-284-0024

www.tad.org

Denton Central Appraisal District

940-349-3800

www.dentoncad.com

(The Homestead Exemption application link is at the bottom right of the Home page)

Forbes List of Cities Where Homes Have Lost the Most Value

2010-01-04T22:11:00.005-06:00

I love Forbes' lists. This is a nice list of cities across America that have lost the most value since the "Peak" which is some magic formula using 2004 values and 3rd Quarter of 2009.

I'm not surprised by any of the cities on this list. I'm also not surprised Texas isn't on any of them. I am surprised however that the Northeast cities have done so well during this housing crisis since that area tends to appreciate quite a bit. What does that mean? In my opinion it means that area has remained in demand. Most likely because that area has been built out much more than almost all other cities on this list. Kudos to you Northeast US!

Having Problems With Your Appraisals?

2010-01-03T16:22:00.003-06:00

This is a pretty good article explaining how appraisals are killing more deals in today's real estate market. It's not the appraiser's fault...every time. And yes, listing agents will resort to begging in order to get their listing sold. Something we shouldn't be proud of but it happens all the same.

Consider an example where a home has been listed for 280 days and they finally get the home under contract. Until the appraisal comes in at $50,000 below the agreed contract price. If the seller doesn't drop the price by $50,000 then the buyer must come up with the $50,000 difference or else the deal falls apart. Guess what happens 98% of the time? The deal falls apart. It's heartbreaking for both buyer and seller and the lender. But how do we know if the appraiser really knows what they're doing? They're human and can make mistakes, right?

Fortunately, I have not had any appraisal problems but I have certainly had a few appraisers call me and ask for extra comparables. But the article points out a big problem and that is the lender will sometimes hire an appraiser not familiar with the area in which the subject property is located. Appraisers are similar to real estate agents in that both tend to have areas of focus. Most Dallas agents can't speak elementary about Ft. Worth real estate and vice versa. So then why is an appraiser any different? Yet Ft. Worth appraisers appraise Dallas real estate all the time. And there are many disagreements.

It's also odd that an appraiser will ask for a copy of the contract and, therefore, see the agreed sales price, before they've stepped foot in the property? Isn't this like cheating? I've never understood this practice. Aren't appraisals supposed to be unbiased reports? Wouldn't seeing the sales price before seeing the property make the report biased?

Whatever. My buyers get good deals and don't have appraisal issues and neither do my sellers. I guess that means I'm doing something right.

Conservation Districts vs. McMansions: Which is Better?

2009-12-27T18:42:00.005-06:00

These two homes are located on Richard Ave. in Vickery Place. There are many more homes that looks just like these scattered throughout Vickery Place yet the Conservation District doesn't seem to do anything about it.

In the never ending debate over which is better, bulldozing old homes to make way for McMansions or encouraging renovation of older homes with "character", there never seems to be hard data to clearly support either side. What I will say - bluntly, cuz that's how I roll - is that Vickery Place should have NEVER been allowed to be a Conservation District.

You tell me, are these homes increasing Vickery Place's property values more than if a $500K+ McMansion were to be built on the very same lots? (Yes, I know a builder can still build in Vickery Place, but not without a bunch a red tape and getting approval from a biased Board.)

If you think McMansions ruin property I suggest you talk to residents of Preston Hollow, Park Cities, Lakewood and Lakewood Heights. They don't seem to be complaining too much about their property values.

Gambler Loses $127M Then Blames Casino...Seriously

2009-12-08T08:48:00.002-06:00

This isn't exactly related to Dallas real estate but I couldn't resist posting it since you know how I love me some stupidity. This is just another example of how our society continues to avoid taking responsibility for our own actions. Remember the McDonald's coffee lawsuit? Lord and Baby Jesus help us if this man wins this lawsuit.

(Thanks, Mark, for the link!)

New Marketing Technique Using "Artistic" Photos?

2009-11-30T18:49:00.003-06:00

Nope. Just another poor seller who is not getting their money's worth. Or maybe they are? Either way, this is poor form and should never be acceptable to any real estate agent or their clients. At this time, there is only 1 photo. And this is the one they picked? Hopefully the seller speaks up about this.

The Best Dallas Photographer in Dallas. Maybe the Country.

2009-11-23T22:27:00.002-06:00

Sublime Red Line
Originally uploaded by the urban fabric

So I'm being cheeky in the title. But if you haven't heard of Justin Terveen or seen his work then you are seriously missing out. His photos are nothing short of jaw dropping. Check out his Flickr page.

Amazing stuff.

Home Sales Increase by More Than 10%

2009-11-23T10:50:00.003-06:00

But don't go popping corks on the Veuve just yet. While it may be true home sales have risen to their highest level in 2.5 years the experts accurately state that this jump in sales was due to many buyers having already been under contract before the first time home buyer tax credit was extended to April of 2010. That being said, we are likely to see stagnant sales over the winter and then they will ramp up as we near the April 2010 tax credit deadline. From the omniscient experts,

Experts forecast that prices will fall again. Most say they will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.

I've already expressed my concern about the threat of rising and/or continuing foreclosures. And it looks like the experts agree.

A record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September, the Mortgage Bankers Association said last week.

What this means to you, Dear Reader, is that if you are in a neighborhood full of short sales and foreclosures, you may have to wait until 2011 before you see a turn around in prices. If your neighborhood doesn't have that many short sales or foreclosures your home value will still feel the indirect effects of a lousy economy laden with foreclosures. So sit tight. Update that kitchen or the master bath, beef up your landscaping and enjoy your home. And if you get relocated and have to sell then at least your home will be in great selling condition.

Is this the Most Expensive Lease Property in Dallas?

2009-11-18T11:31:00.007-06:00

I'm talking about Casa Bellamini, of course. I mean, who doesn't have $50K a month to spend these days? To be fair, the monthly rate includes maid service, a private chef, and a full time butler and house manager. Good Lord. To put this into perspective, if you make over $1 million a year you probably still can't afford to lease this place.

This home is also for sale with an asking price of $7.9M, which is a far cry from the original asking price of $13M. That's a whopping $5M price reduction! Check out the home's website here. I've seen this home a few times and I have to say it is breathtaking. My favorite feature is the pedestal sink in the master steam shower. Perfect for a man (or woman) who prefers to shave while in the shower.

NAR Has Fun With Numbers

2009-11-14T05:46:00.005-06:00

Feel free to read this somewhat wordy article released today by NAR. Here are some of the highlights.

Existing-home sales are expected to rise 13.6 percent in 2010.

The 30-year fixed-rate mortgage will average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year.

Home prices should rise between 3 and 5 percent in 2010.

The unemployment rate is close to peaking and is projected to ease to 9.5 percent by the end of next year.

All Realtors should be thrilled with the increase in home sales. However, I wouldn't expect Dallas to live up to the price appreciation forecast. We tend to lag behind whatever the country is trending towards. I expect Dallas to remain stable and possibly depreciate 0% to 1% in 2010 mainly due to flushing out the bulk of the foreclosures and short sales.

And finally, I'm not sure what is meant by the unemployment rate "easing to 9.5%" means. Is it going up, down? This, IMHO, is the major factor in determining the future success of Dallas real estate. Many people are forced to foreclose because of a job loss. They have no savings, mortgaged to the hilt, credit cards are maxed and then BAM! They get laid off. Ninety days later the house is foreclosed on. So until people can be secure in their jobs I wouldn't expect 2010 to be all roses. But it also won't be all doom and gloom. There are many deals to be had out there and smart buyers are taking advantage.

Man with Spinny Driving Wheel Camera Makes Good Sense

2009-11-14T05:18:00.007-06:00

I could not agree more with this guy. I came across his video over on Inman.com. It has always amazed me how many agents - and companies - claim they are "numero uno". That's not to say they aren't telling the truth. But statistics can be manipulated to make them prove your own claims. Anyone can be No. 1 if you narrow the field down enough.

So just remember, you too can be the number one agent in Dallas!*

*sales between $451,000 and $452,000 on Northaven Rd. for the month of November 2009

How is the real estate market doing?

2009-07-14T07:45:00.003-05:00

I get this question about a bazillion times a week. It's honestly the hardest question for me to answer each and every time it is asked. A client and friend just emailed me asking if waiting to list their home would hurt or help them. Here is how I responded.

Will the market get better/worse? Your guess is as good as mine. Buyers are waiting, waiting, waiting but yet some things are selling. There is no rhyme or reason except for price. When a property is priced very aggressively it moves. Everything else is somewhat of a waiting game. Buyers have been looking and watching listings reduce, reduce, reduce. So why pull the trigger when another reduction is right around the corner? Just wait. That is how buyers feel, and the feeling is justified when you look at the evidence out there. Presentation and condition of the property is still as important as ever. No one wants a project. And the nice homes are typically the ones that are selling. Giving clients a time frame has become tougher in the last 90 days. My listings were moving fairly quickly in the first quarter and now I seem to be getting a lot of showing activity but no offers. Does that mean all of my listings that aren't selling are overpriced? I'm not sure I even know the answer to that question right now. I pride myself on initial price positioning but I have been having to go to my clients and recommend price reductions. Not sure if that is indicative of the market as a whole but it's making me reevaluate the price of each and every one of my listings. And unfortunately the numbers still don't offer much of a solution.

I didn't mean to come across as whiny because things are moving. But buyers are testing not only the seller's patience these days, they are testing their own real estate agent's patience as well. It's just how it is and we need to respond to the market! So I'm going to get back to work now!

Agent to Meet? Or Not to Meet? That is the Question.

2009-03-24T15:54:00.004-05:00

I've been showing homes to an out of town couple around the $2 million price point over the past few weeks. Each time we view approximately 6 to 8 homes. I give at least 24 hours notice as most of these properties are "agent to meet"...the last thing any Realtor wants to see in the showing instructions section for any listing. I'm not exaggerating when I say at least 5 of the agents attempt to reschedule the 30 minute time frame I give them because they "can't make it at the time we've requested".

On the surface that sounds fair but you have to look at it from a buyer's point of view - and their agent's. When you're looking at 8 homes from Russwood Acres to Jan-Mar to Bluffview to Greenway Parks to UP/HP the listing agents should be THRILLED that I only gave them a 30 minute time frame. Let me give you an example you probably won't care much about. And that's ok. This is my own form of therapy time so let me have it, dammit! :)

You have to have a starting point so let's pick Jan-Mar (Royal and Hillcrest) at 11am. From there we're heading to Russwood Acres (Royal and Midway). Then down to Bluffview and Greenway Parks. And shoot across the toll road to the Park Cities. We'll probably end around 2pm.

But...The first agent can only meet me at 1pm so we'll need to reschedule that one. But then what about the other home in Jan-Mar we just scheduled with the other listing agent for 11:30am? I guess we can move her to 1:30pm.

And then...The second agent can't do 1:30pm because she has a massage appointment.

And then...Both of the Russwood Acres homes we want to see are having an Open House from 2pm to 4pm so it would be nice if we could reschedule our times to view the homes at that time instead of from 12pm to 1pm.

So now...I have to call the Greenway Parks listing agents and the Park Cities agents to reschedule with them and hope they can make the new appointment time after they've probably already made plans.

You see what I'm getting at. It's a pain in the arse and we typically have to cancel at least 2 of the homes on our orginal list because the agents can't meet us to show the home.

I am not, nor have I ever been, a fan of "agent to meet" showings. They are pointless and my buyers find the listing agents more distracting than helpful as they prattle on about how "special" their listing is while following us from room to room.

In my opinion, no home in the Park Cities or Preston Hollow areas under $3 million is special enough to require a Realtor's presence at the home when it is being shown. If you want to brag about the special features of your listing then open up Microsoft Word and prove it by placing an information sheet in the home. You running your yapper and rattling off the 1,000 special things about this home is lost on every buyer that walks through the front door. I don't care if Lambert's did the lawn or the guy standing by the DART bus stop. If it looks nice then it looks nice. That is not a special feature of any home.

The saddest and most important part of all this is that sellers of these homes will never know someone tried to show their $1.8 million dollar home. No wonder it has been on the market for 178 days. I mean seriously, do you think the listing agent will tell their sellers they couldn't make the showing because they were too busy? I didn't think so.

Ridiculous.

Stupid Realtor Comment of the Day: Virtual Tour vs. Multiple Photos Edition

2009-03-01T23:17:00.006-06:00

A real estate agent posted the following comment on this post - anonymously of course - saying that virtual tours are a must and that I am a fool for thinking otherwise and need to consult with the Almighty Google to reinforce my foolishness. (My comments are in italics.)

THIS IS INSANE

A prospect has pictures in the MLS to view anyway. Really!?!?!?!?

Adding a virtual tour gives them the sense of being there. Kay....

The Real Question to ask is: If you found a house you thought you really wanted to see, that truly caught your interest, and that exact same house had two viewing options one had pictures only and the other had pictures and a virtual tour would you pass up the virtual tour? The answer would be emphatically NO! This is your question. Not mine. This is also a stupid example.

The virtual tour connects all the dots. What dots are you referring to?

Sure it takes more time then looking through A dozen pictures and less convenient...IF YOU'RE NOT INTERESTED IN THOSE HOMES. But when you find the one you want. You take that virtual tour and call your husband and email your kids and let your friends see it to get their opinion, not 15 pictures. Not sure where to begin with this one...

I know, because that's exactly what my buyer and seller clients have told me. What do seller's have to do with virtual tours?

Virtual tours are priceless, just ask Google you fool. Ouch. *crying*

Look Anonymous, if that is your real name, before you go around calling people "fools" you should brush up on your reading comprehension and pay more attention to the logic behind your argument.

As I said in my post, the purpose of online photos and virtual tours are to attract potential buyers and to make them want to view the property in person with their agent. The "real question", as you so eloquently put it, isn't whether or not people will view a virtual tour of a home they are interested in. That's a stupid question. OF COURSE A POTENTIAL BUYER WILL VIEW A VIRTUAL TOUR OF A HOME THEY LIKE BECAUSE THEY LIKED THE 15 PICTURES THEY CLICKED ON SECONDS BEFORE!

Please do the real estate profession a favor and send your license back your local and state associations.

Love,

Jeff Duffey

Florida Homeowners Sue Habitat for Humanity

2009-01-05T15:39:00.005-06:00

A tip o' the hat to my good friend Mark for sending this link my way. Homeowners in a Florida neighborhood are suing Habitat for Humanity for building them a house they say is substandard and contains mold and other harmful substances. They are also upset because the development was built upon an old rubbish heap.

After I read the article my take away is that some people probably haven't maintained their homes properly and therefore, it is deteriorating. So instead of paying for proper maintenance they would rather sue and try and get more free stuff.

When will America learn? People are ungrateful and don't deserve free stuff because they don't know how to take care of what they're given. Sound familiar, Extreme Home Makeover?

Ways to Lose Your Client's Trust

2008-11-28T11:38:00.006-06:00

This is a short but accurate article from Realtor.org outlining 3 mistakes a Realtor can make to quickly lose their client's trust.

I can relate to Rule #3:

Saying what your client wants to hear. When I hired the father of one of my son’s friends to sell my last home, I asked him if we could get a very ambitious price for it. He said what I wanted to hear: "No problem." Well, he got the listing but couldn’t sell the house.

So I brought in the top salesperson in town, and she promptly told me what I didn’t want to hear: "Replace these windows and lower the price by $125,000." She sold the house in less than a week. I recommend her to everyone.

I know for a fact I have lost listings to competing Realtors because I told the clients what they didn't want to hear. But I also admit that I try and educate the client and can forget that building repoire is also an important part of earning someone's trust.

Anyone out there have similar stories? Like when you hired your friend only to fire them 6 months later, hired a top producing agent, they show you statistically why you need to reduce your price by $100,000 and the house sells 30 days later?

I'd love to hear them.

Did foreclosures really kill our economy? The numbers don't add up

2008-11-03T23:04:00.005-06:00

According to this 2007 report by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, there are (were) 128,203,000 housing units in the United States. Of those, 64,231,000, or 50%, are owned free and clear.

If 1.2 million homes are in foreclosure at any point in time that would equate to less than 1% of all homes in the country or 1.9% of the 63,972,000 homes that have at least 1 loan on the property.

Then let's assume that each quarter 1.2 million homes go into foreclosure. That equates to less than 4% of all homes in the country (4.8 million homes) or 7.5% of homes with at least 1 loan on the property.

Are we really to believe that because 7.5 out of every 100 homes in the country went into foreclosure our economy was thrown into a recession, mutliple financial corporations were forced to shut down and the stock market tanked? Unless I'm severely off on my math the numbers just aren't adding up.

The $50 trillion credit default swap market theory on the other hand is beginning to make more sense with each passing day.

How did we get into this economic mess? Gambling.

2008-10-29T08:43:00.008-05:00

In Vegas you can bet on pretty much any sporting event. Even some you've never even heard of. Turns out our economy is the same way. But it hasn't always been that way. I recently watched this 60 Minutes special on Credit Default Swaps and how they contributed to our current economic downturn. Enlightening to say the least. Check out the written transcript here if you don't want to watch the video. Even for a financial novice like myself it makes perfect sense. And it's extremely worrisome.

What are credit default swaps? Steve Kroft of 60 Minutes states,

"Essentially they are side bets on the performance of the U.S. mortgage markets and the solvency on some of the biggest financial institutions in the world. It's a form of legalized gambling that allows you to wager on financial outcomes without ever having to actually buy the stocks and bonds and mortgages."

Kroft goes on to say,

"Think of it for a moment as a football game. Every week, the New York Giants take the field with hopes of getting back to the Super Bowl. If they do, they will get more money and glory for the team and its owners. They have a direct investment in the game. But the people in the stands may also have a financial stake in the ouctome, in the form of a bet with a friend or a bookie."

This type of betting and gambling used to take place in what was called "Bucket Shops" which were outlawed around 1907 after the stock market fell 50% from it's peak the previous year. In 2000 Congress exempted this "Bucket Shop" law and the credit default swap markets went soaring from roughly $100 billion to more than $50 trillion dollars. Yes. Trillion. According to the report,

"You could bet on anything from the solvency of communities to the fate of General Motors...A lot of the money was made financing what seemed to be a never-ending housing boom, selling mortgage securities they thought were safe and credit default swaps that would never have to be paid off."

And then the housing market took a turn for the worse and there was not enough money to pay off the debts which is essentially what ruined Bear Stearns, Lehmann Brothers and AIG. The scariest part of all this is that these credit default swaps are completely unregulated so we have no way of knowing how much money is still floating out there.

Hedge funds operate in a very similar manner and I posted my thoughts about this a while back and how I feel it can be conflict of interest when a person who is influential over a particular market or industry can bet for or against itsself and reap the rewards. This just doesn't make sense to me. But again, I'm no financial guru. What I took away from this report is that we simply allowed anyone to bet (Trillions of dollars) against our own housing market which at the time was similar to betting against the race horse who is favored to win. Then when the housing market started suffering people demanded their "winnings" and there simply wasn't enough cash to go around and the gears quickly grinded to a hault.

So...I contend that while the housing market has seen better days, it's certainly not what got us into this mess. A law was created roughly 100 years ago in order to prevent a stock market crash. Here we are eight years after the law was overturned and look at where we're at. It's funny how history repeats itself and we'll just never learn from our mistake.

I know you have opinions on the matter so bring it. Watchoo got?

"Property features plenty of natural light"

2008-10-21T09:51:00.002-05:00

Seriously? This house obviously has electricity since the breakfast room chandelier is on. How hard is it to flip a switch before taking a picture?

Someone puh-LEEZE tell me how these people's clients can possibly be happy with this type of service.

Ugliest kitchen ever?

2008-10-10T10:16:00.002-05:00

I thought Pepto Bismol was supposed to soothe your stomach, not make you nauseous. Not only am I baffled as to why someone would paint their kitchen this color, I'm more confused as to why someone would actually buy this house. It's under contract and is severely overpriced.

Check out these interest rates!

2008-10-09T16:11:00.004-05:00

My good friend Norma Minnis, a mortgage broker with Travelers National Mortgage, sends me this email regarding mortgage rates:

"Did you know that on a jumbo loan with good credit, 20% [down], you can get a 5 year ARM at 5.625 and a 7 year ARM at 5.875%?"

It's a great time to buy a home and if you're in the market you should definitely give Norma a call. She'll take great care of you.

Phone: 214-887-9544
Email: normaminnis@aol.com

Tips From Jeff

2008-10-09T15:30:00.003-05:00

I sent the following email out today to my friends and clients. It was after I sent this email that I noticed the stock market fell yet again to below 9,000 points for the first time since 2003. It is during times like these that more millionaires are made than during times of prosperity. I think this is because it forces us to become more introspective and take a good look at our spending behaviors and locate areas that need improvement. It also allows people to identify areas of need that may have been overlooked when everyone was rolling in the dough.

So keep your heads up. "This too shall pass."

Dear friends,

Much has been said recently about the state of our country’s economic climate so I wanted to share a bit of advice during these difficult times and hopefully clear up a few things, even if only slightly.

Tip #1 – “Spend less money than you make”

As simplistic as this might sound it works. It works in any economic climate both good and bad. If you make $5,000/month and you’re spending $7,000/month then you will soon be broke. One positive thing that is coming out of all of the financial turmoil is that it is forcing many of us to take stock (no pun intended) of our financial situation and tighten our belts when it comes to superfluous spending. If we train ourselves how to operate on a budget now we will be able to enjoy the good times without reservation and guilt when it arrives. If you don’t have a personal budget there isn’t a better time than right now to get started on one.

Tip #2 – “Now is the best time to buy”

Not only does this statement pertain to real estate but certainly the stock market as well. “Buy low, sell high” makes sense to me and there are bargains to be had. If you’re trying to time the bottom of the market then please let me know when it gets here. The most educated financial gurus in the world will tell you the only way to know you are at the bottom of any market is when it is has already passed you by.

Tip (myth) #3 – “But there isn’t any financing available!”

Wrong! This is perhaps one of the biggest myths floating around the media outlets. If you are currently renting and have a credit score of over 700 and can comfortably put 10% to 20% down on a property you are the best candidate to take advantage of our current real estate market. There isn’t a bank in this country that won’t give you a loan on a home right now. Anyone that tells you different has been misinformed. A huge developer trying to get a loan to build a 150 unit high-rise condominium in Dallas is a different story.

Tip #4 – “If you have questions about the stock or real estate markets ask a professional”

Are you curious about what your home is worth in today’s market? Are you unsure of what to do if you have money in the stock market? Should you be buying stock or moving your money around? Most people today are talking about these issues with their co-workers, neighbors or friends and should probably be talking to a professional. Call your financial advisor and request a meeting with him or her. If you don’t have one but are thinking of hiring one give me a call. I’ll be happy to refer you to some top notch professionals. As far as real estate goes if you’re hearing things about the real estate market and want clarification just pick up the phone and call me. Don’t be afraid to ask the hard questions. That’s what I’m here for. And, unlike our favorite politicians, I won’t make up statistics just to sound smart.

Sincerely,

Jeff Duffey, Realtor
Coldwell Banker Residential Brokerage
Park Cities Office
Top 5% in Production Nationwide - '06 & '07
214.521.0044 Office
214.507.2878 Cell
jeff@duffeyhomes.com
www.DuffeyHomes.com

Giving the middle finger to Uncle Sam?

2008-10-07T18:17:00.007-05:00

I've discussed the glaring discrepancy between a property's true market value versus the Dallas County Tax appraisal before. Why I am bringing it up again? Because of this.

4800 Preston Rd. - House of John and Lyn Muse. Valued on DCAD for just over $30 million. (Land is worth $21,175,000)
Description: 8 year old house with 25,000 sf, with all sorts of cabanas, guest quarters and greenhouses sitting on 7.7 acres and backs to Exall Lake.

4101 Beverly Dr. - Home of Edwin Cox Trust. Valued on DCAD for almost $22 million. (Land is worth $21,832,500)
Description: 97 year old home with 20,000 sf, pool, tennis court, etc. all on 6.6 acres and backs to Exall Lake.

And then I click on 4100 Beverly Dr. and 4101 Mockingbird. Home of Dallas Country Club. Total value on DCAD is just under $10 million. Wait. What? Am I reading this right?
Description: One of the most prestigious country clubs in the country with roughly 10 buildings that total around 150,000 sf of air conditioned space sitting on 113 acres in one of the most expensive neighborhoods in the country.

In summary, according to DCAD, Ed Cox and John Muse's combined 14 acres of dirt is worth approximately $43 million. Dallas Country Club's 113 acres and 10 buildings is not even worth $10 mil. Do country clubs fall under the church and school categories when it comes to property taxes? Am I missing something here?

Bueller...Bueller....Anyone?

What the $700 billion settlement means to you

2008-10-06T21:43:00.004-05:00

Where to begin dear readers? There is so much "stuff" out there to sift through that it's tough even for us that sell real estate full time to figure out which way is up. So allow me to clear up a few myths that are running amuck.

Myth #1: "There is no financing available for buyers"

False: If you have over a 700 credit score and are putting 10% to 20% down on your home purchase, there is not a bank in America that won't give you a loan. If you have a 615 credit score and can only afford to put 3% down on a home purchase then you probably shouldn't be buying a home. Instead, try paying down your credit card debt, getting that credit score up and saving up so you can put down 10% to 20%.

Myth #2: "The bailout plan will free up money for buyers"

Unclear: While I do believe this will free up money for some buyers, it's my opinion that it's only freeing up money for those people I just described above. There is not a bank out there that is willing to take on too much risk. For example, if I wanted to get a loan to build a $100 million, 100 unit high rise on Turtle Creek, there isn't a bank out there that would give me money because our city - and country - is overbuilt. See the difference?

Here is what some folks are saying about the bailout and the Countrywide mortgage relief settlement. Regarding the bailout, Shawn Hartmann, a Realtor in Minnesota writes, "With taking the financial hardship off the lending institutions from the non-performing assets, the lenders are now able to free up capital to lend more money. " I agree. But not for just anyone. See my examples above.

Regarding the Countrywide settlement, "This is good," said Christopher Whalen, managing director at Institutional Risk Analytics, a provider of analysis and ratings for banks. "I hate to say we'll need to see a lot more of this, but we will. Banks have no choice because the economy's getting so flat. They're going to become increasingly aggressive about keeping homeowners in their homes." I think this is a step in the right direction but will definitely not solve our problems. There are many other unforeseen consequences that we have yet to see and I think these quick solutions will have long term consequences.

In closing, I believe this is the tip of the iceberg. What hasn't been mentioned is the amount of credit card debt looming in the background. When people can't pay their mortgages they stop paying their credit cards first. Then they stop paying their mortgages. Wachovia, WAMU, BofA, Chase all hand out tons of credit cards each year. All of these banks also deal in mortgages. No one has mentioned how the credit card issue has impacted their cash flow concerns which worries me.

Bottom line is that if you have good credit and can put 10% on a home you have nothing to worry about. If you don't have good credit and don't have much free cash, then you probably don't need to be in the market and never should have been in the game over the last 5 years. It's not your fault. You were just given bad advice by greedy lenders. So if you're looking to buy or sell and want straight up advice, give me a call. I'll be happy to make this all as clear as mud for you.

Want To Meet the True Top Producing Agents in the Park Cities and Preston Hollow? The Numbers Don't Lie

2008-10-03T13:53:00.010-05:00

Over at Dallas Dirt Candy posted some production numbers for the Preston Hollow and Park Cities areas. To me her source's numbers were a little vague and didn't give the clear picture of who was doing what type of production. If you know me at all, you know I love me some numbers. I didn't look specifically at the companies but at the Top 50 producing agents. I find that just as interesting. So dig in, analyze, discuss. (Can you believe I came in above number 1? I needed my own line because I'm in a different league. This was so unexpected.)

Production in Park Cities and Preston Hollow only:

Reason #1 Our Economy is in Crisis

2008-09-27T18:33:00.005-05:00

Hello dear DREB readers. I have racked my brains deciding what to say about all of the mess we are currently hearing about on the news and the interwebs. And oh do I have much to say about this nasty economic business and plenty of blame to pass around to boot. So I have decided to share my thoughts one-at-a-time. And here we go.

Reason #1: People don't know how to stay in their damn houses

Over the past 4 years people took out "creative mortgages" and may or may not have been educated as to the fact that they took out 103% of their home's value. Assuming your home is worth $100,000 ($103,000 loan) you now have negative $3,000 equity. Awesome! So you live in your home for 2 years and realize around 5% appreciation over those 2 years, overall. Now your home is worth ~$105,000. Great! But you want to move up in the world so you call me, a Realtor, to help you sell your home. It costs roughly 8% to sell a home which means that if you sold your home for $105,000 - you owe $100,000 to the mortgage company - you would have to bring around $8,000 to closing. But you don't have that because you don't know what savings are and you put NOTHING down at closing. So you're screwed and have to either engage in a short sale with your bank or go into foreclosure.

While many people are blaming the lenders for lending these people money in the first place without putting any money down, no one told these people they should move and sell their home after 2 years. And the homeowners certainly don't want to take responsibility for their actions so they blame the lenders and let their homes go back to the bank and hurt their neighborhood sales statistics.

I've said it before, irresponsible homeowners are just as guilty as irresponsible lenders for getting us into this economic mess. And I don't feel sorry for either of them.

5331 Ridgedale Ave. in the M-Streets

2008-09-13T08:55:00.013-05:00

Immaculate M-Streets home with fabulous updates and energy features. Granite counters,maple cabinets,Anne Sacks glass tile backsplash and breakfast area overlooking sparkling and heated saltwater pool.Bedrooms are huge and split.Spacious master has WIC and bath has marble and travertine finishes with jetted tub.Guest quarters has half bath and 1 car garage is newer frame with room for fridge.New AC, radiant barrier in attic, landscaping in '08!

5331 Ridgedale Ave. - $349,900

(Click on a picture for a larger view)

Living Room

Dining Room

Dining Room

Kitchen

Breakfast Area

Master Bedroom

Master Bath

Guest Bedroom

Guest Quarters

Saltwater Pool

Saltwater Pool

More details:

Description: 2 bedrooms, 2 baths
Square Feet: 1,242 main house + 130sf guest quarters with half bath
Garage: 1 car detached
Fireplace: Gas
Foundation: Pier & Beam
Utility: Stackable W/D
City: Dallas
County: Dallas
Zip Code: 75206
Schools: DISD
Year Built: 1938

To set up a viewing please contact Jeff Duffey. Cell: 214-507-2878 or jeff@duffeyhomes.com.

4407 Mill Creek Road in North Dallas

2008-09-10T17:51:00.005-05:00

You must see this impeccably updated ranch home on a 120x125 corner lot. Centrally located just north of Hockaday this home boasts 2,718sf with 4 bedrooms, 3.5 baths and a 2 car attached garage. The 4th bedroom is split and has a private full bath. The open floor plan is accentuated by the many large windows in the front and rear of the home and the open wall between the formal living room and family room. The plantation shutters enhance the already stunning curb appeal while the 2 large trees and lush landscaping complete the picture. Looking onto the crystal blue pool in the rear of the home is the oversized master bedroom with plenty of closet space and an updated master bath with travertine floors, tumbled marble accents and a Jacuzzi tub. The crown jewel of the home is definitely the kitchen featuring granite counter tops, double ovens, butler's pantry, large breakfast area with floor to ceiling windows, built-in buffet and plenty of cabinet and storage space. And finally, you won't want to miss the pool in the backyard with a spa and waterfall for those hot summer days. Or enjoy the large covered patio on those cool, crisp Fall evenings. And of course there is plenty of grass space including a spacious side yard for play equipment, gardening, pets or any other uses you can think of. This home offers something for everyone and is in one of the most sought after and established neighborhoods South of LBJ.

4407 Mill Creek Rd. - $449,900

(Click on a picture for a larger view)

Front angle

Kitchen

Breakfast Area

Family Room

Formal Dining

Formal Living

Master Bedroom

Master Bathroom

Guest Room

Back Patio

Pool

More details:

Description: 4 bedrooms, 3.5 baths
Square Feet: 2,718
Garage: 2 car attached
Fireplace: Gas
Foundation: Slab
Utility: Full size with space for extra freezer
City: Dallas
County: Dallas
Zip Code: 75244
Schools: DISD
Year Built: 1966

To set up a viewing please contact Jeff Duffey. Cell: 214-507-2878 or jeff@duffeyhomes.com.

Speaking of Divorce...

2008-09-05T13:23:00.002-05:00

...if you've recently found yourself alone for one reason or another then fret no more. Dallas is the place to be! Or at least the 3rd best place to be if you're single, according to a new Forbes ranking of the "Best Cities for Singles".

Sluggish Real Estate Market Keeps People Married

2008-09-05T13:14:00.005-05:00

According to this study out of the U.K. While sad, it makes perfect sense to me. Society is becoming so dependent on making money on their homes that they're not focusing on making money at their jobs. Or by learning to curb spending habits and actually saving their money. What an amazing concept. I should write a book on that. [Sarcasm]

More Proof That Free Handouts Don't Work

2008-07-28T19:27:00.005-05:00

The above home was built for a family on ABC's "Extreme Makeover". Now they have let it go into foreclosure because they used their "equity" on a botched business deal. I've heard that roughly 80% of people who win the lottery eventually have to claim bankruptcy. I've also heard that the winners of HGTV's Dream Home giveaway eventually have to sell the home or end up getting foreclosed on. The moral of the story is that people don't appreciate, or have the wherewithall, to use free handouts (bailouts) appropriately and better their lives. People in general are stupid and I've always maintained this stance. And this story is no exception. Our society keep bailing people out, like in the current mortgage crisis, and people will continue to squander the money away and end up in worse situations than where they began.

Bottom line is this, if you don't have blood, sweat or flesh in the game, then you won't appreciate what you're given. Learning lessons the hard way is the only way to prevent future stupid decisions.

How Important Are Online Photos? You be the Judge

2008-07-08T22:16:00.008-05:00

I just listed this property after the owner had their home on the market with another Realtor for 6 months. You tell me what a difference a good photo - and a good Realtor - makes.

Other Realtor's Photos

My Photos

See more differences here (other listing agent's photos) and (my photos).

Makes a big difference, don't you think?

Virtual Tours vs. Multiple Photos

2008-07-08T21:30:00.006-05:00

Which do online real estate tire kickers prefer? I've posed this question before, and according to a recent poll of 500 adults by Obeo, a residential real estate marketing company, photos are a must. More specifically, it was found that "94 percent of all women surveyed said photos of a home would be very helpful in their search for a home while nearly 70 percent said 360-degree panoramas would be very helpful." I'm not sure what the men had to say about the matter as that information wasn't given, but 94% is a pretty staggering number that speaks volumes.

I post this information because, IMHO, many agents and sellers waste money on virtual tours when people would rather scroll through 10 pictures and be done. So why did the women overwhelmingly want pictures over a virtual tour? Shockingly, I have an opinion on the matter. First, we must ask, "what is the purpose of a virtual tour or multiple photos?" To get your happy a** into the home, of course! I want that person scouring the internets for a home at 11:37pm to see one of my listings and say to themselves, "I want to see this home!" And then send me an email or call their Realtor up and say, "Meet me at this house tomorrow!" Multiple photos can accomplish this without a virtual tour - which may or may not take 30 seconds (about 7 hours in internet time) to load. Whereas, you can click through 10 photos in less than a minute and get a good "feel" for the home. And when you're sifting through 168 homes in East Dallas between $300 and $400K, who is going to wait for a tour to load?

And don't even get me started on bad photos. Or even worse, no photos.

Which do you prefer?

My Triumphant Return to the World of Blogginess

2008-07-04T08:57:00.004-05:00

So i'ts been about a hundred years or so since my last post. I went to blog rehab, refocused on my business and things couldn't be busier or better. So what better to post about than the great news that is Dallas real estate.

The PMI Group just released it's Summer 2008 U.S. Market Risk Index that "ranks the nation's 50 largest metropolitan statistical areas (MSAs) according to the likelihood that home prices will be lower in two years." At the top of the list is Riverside, CA which is most likely to experience a (continued) price decline 2 years from now. At the bottom of the list? Drum roll please...well, it's Ft. Worth and Arlington. But right above them is Dallas, Plano and Irving! So we're the 2nd least likely city in the nation to see a price decline in the next 2 years. Not too shabby. Here's the Top 10 "most riskiest cities".

Riverside-San Bernardino-Ontario; CA
Fort Lauderdale-Pompano Beach-Deerfield Beach; FL
West Palm Beach-Boca Raton-Boynton Beach; FL
Orlando-Kissimmee; FL
Las Vegas-Paradise; NV
Tampa-St. Petersburg-Clearwater; FL
Santa Ana-Anaheim-Irvine; CA
Los Angeles-Long Beach-Glendale; CA
Miami-Miami Beach-Kendall; FL
Sacramento-Arden-Arcade-Roseville; CA

And the Top 10 cities least likely to experience a price decline in 2 years:

Charlotte-Gastonia-Concord; NC-SC
Kansas City; MO-KS
Columbus; OH
Cincinnati-Middletown; OH-KY-IN
Indianapolis-Carmel; IN
San Antonio; TX
Houston-Sugar Land-Baytown; TX
Pittsburgh; PA
Dallas-Plano-Irving; TX
Fort Worth-Arlington; TX

So quitcherbitchin'. Glad to be back!

Thanks

2008-04-21T23:41:00.004-05:00

Thank you for your comments and all of you are "spot on", as the British - or whoever - say. Everything in life has to have a balance and blogs are not exempt from this rule. I will continue to share my thoughts on Dallas real estate because this blog has been an incredible source of release for me. I was telling someone the other day that I truly feel as though I can empty my head at the end of the day onto this blog and there is something very cathartic about that.

The notoriety and name recognition is great even though there is no measurable or tangible monetary return at this moment. Is that a reason to give it up? Absolutely not. I'm not that naive and I know this blog can pay off down the road. But time spent on this blog was not compensatory with what it was bringing in and that can become a problem after a while.

So I'm not going anywhere any time soon. While posts may be less frequent there is always something I can talk about. Plus, there are way too many uneducated real estate agents and real estate consumers out there that need my help.

Dallas Leaves Good Impression On First Time Visitor

2008-04-21T23:29:00.005-05:00

I got an email last week from someone who happened upon my blog asking me what areas he should check out while he's in Dallas for the first time to view some serious real estate. I sent him to Strait Lane, Lennox, Ursula, Park Lane. I even gave him Mark Cuban's gated estate location. Then I advised him to check out Beverly, Armstrong and the picturesque Lakeside Drive (my fave). What did he think? Oh, he liked. He sent the following email after he returned home. We should take note of his Beverly Hills/Park Cities impression. Go Dallas!

Hey Jeff,

I am back from my trip to Texas. I had a great time and thought Dallas was very nice. As for the Park Cities and Preston Hollow, all I can say is wow. I have done a lot of traveling and always try to check out the prime real estate and I think your area is perhaps the best. The homes are so beautiful and they all blend in so nicely with each other. The flats of Beverly Hills, similar to the Park Cities, has been ruined with very large and ugly new construction. The new homes in your area fit in pretty well and the occasional modern houses are cool.

All the beautiful parks and the nice shopping areas also add nicely to the community. I was very impressed and will now spend the coming days obsessing about this area. Somebody on Wikimapia had placed on the site a lot of information on many of these homes. At the time I saw this I did not realize I would be coming to Dallas and the information has since been deleted. This also happened in Palm Beach. I guess the owners of these properties got upset. I can't blame them but it was great information and now that I have been there, I wish I could go back and review it.

Thanks for your best street list. I made it to all the streets you recommend and it was a big help since the area is so large. You definitely sent me in the right direction. I forgot to ask you where Volks Estates is? River Oaks in Houston is also very nice but was much more impressed with your area.

Thanks again for all your help

John

Alternate First Post After Hiatus

2008-04-20T23:37:00.001-05:00

Sorry. I've been REALLY busy.

Still Alive and Kicking

2008-04-20T22:58:00.004-05:00

Thanks for your emails and comments over the past 12 days. I'm sure all 3 of you are on pins and needles as to when and what I will post next. Sorry to keep you waiting. But I have a little dilemma and I need your help and support. Since November of 2007 I have spent roughly a good 3 hours a day working on my blog whether posting or reconfiguring the layout, etc. And I probably spend another 1 to 2 hours reading other blogs which is where I get a lot of information and ideas. In my Blogger profile I prophectically wrote, "Jeff is new to world of blogging and only time will tell if his business will suffer because of it." Let me be clear, my business hasn't suffered since starting this blog but it sure takes a lot of effort and time to keep it full of information that is only slightly entertaining to a handful of you regular readers. And then I read this opinion article in the latest edition of Texas Realtor Magazine about how social networking and blogs can be a huge waste of time for business professionals.

"...you can pour endless hours into without any substantive monetary return. Stop it already, and implement what works because it works, not because it is neat or new." says Michael Parker, principal at Blackwater Consulting Group.

He goes on to say,

"What, then, is important? Hits, page rank, page views? No. Once you cover the Web-site basics in a professional manner, the only things that matter are results: the quality of leads you derive from your efforts; how many of those leads you convert to sales; and whether Internet buyers can find your site in one click."

I agree with his logic from a business standpoint. And this is the root of my dilemma. I truly enjoy reading blogs about real estate and sharing my thoughts on real estate issues. But is it a good use of my time if it's not bringing in revenue? When I talk with other people who read blogs on a daily basis I can't think of one person who hasn't said, "I'm addicted to reading blogs". I'm sure there are many of you out there who have said the same thing. I know of one person who has blocked blogs from his work computer because he wasted so much time reading them. I don't want to become that person. Like alcohol and crack, use in moderation. Just kidding about the crack. I'd love to hear what you think.

Either way, fret not ye faithful readers. I will continue to post my opinions on this blog but I think the days of spending 3 hours doing so are long gone. So long to the nights - or early mornings - of the 2am and 3am blog posts. I'm hoping to post 3 or 4 times per week and I hope they will knock your socks off. More importantly, I'm sure I'll continue getting a rise out of my fellow Realtors and homeowners.

Thanks for reading and thanks for the support. You'll be hearing from me.

I'm Busy and Much More Important Than You

2008-04-08T23:22:00.004-05:00

One of my biggest pet peeves is when other Realtors - and even clients - tell me they didn't fulfill a commitment or duty because "they were busy". I am currently co-chairing a committee for a Leadership program and one of my committee members told one of the slackers that we expect more involvement from them. The slacker's excuse was that she has "had a busy year and her schedule has just been hectic". What she didn't realize is that she was speaking to a lady whose father-in-law had passed away 2 days prior and still made it a point to fulfill her duties and then some.

When you tell someone you didn't return their email or phone call because you have "been busy", you are basically telling them your time is more valuable than theirs. Realtors are notorious for spitting out this poor excuse like it's second nature and I simply can't stand it. I have even caught myself saying it at times but my friends and colleagues have been nice enough to call me to the carpet when this happens.

Next time you hear this excuse from anyone, make sure to tell them no one person's time is more valuable than another's. So that excuse doesn't sit well with me, nor should it with you.

Apartment Building I've Never Heard Of To Open April 21st

2008-04-08T16:04:00.004-05:00

Just saw this in my RECON email.

RESIDENTIAL TOWER OPENING NEARS

DALLAS (Dallas Morning News) – Spectrum Properties Ltd.'s downtown 17-story luxury residential tower — called 1407 Main — is set to open officially April 21.The tower includes ground-floor retail, a parking garage, a rooftop pool deck, a bowling alley, a theatre and more than 80 residential units. Rents range from about $1,495 for a 751-sf unit, to more than $4,000 for a 1,700-sf penthouse.Good, Fulton & Farrell Architects designed the project.

Bowling alley? Really? With 80 units I'm sure there will be no arguments over who can use it and at what times. Oh yeah, how come have I NEVER heard about this building until this very day?

In the immortal words of Pink, who knew?

Are Hedge Funds Affecting Real Estate Values?

2008-04-07T21:46:00.012-05:00

What I know about hedge funds wouldn't fill a Post-It Note. But the little I do know about them seems a bit sketchy. Not all of them, mind you. Just the ones that are banking on the demise of the US economy. For example, T. Boone Pickens, a legend in oil and gas across the globe, has his own hedge fund, BP Capital. They bet that oil prices would rise beginning in 2005 and it ended up making him over $1.5 billion dollars that year. Yes, billion. So basically it's like gambling in Vegas but for mega-rich businessfolk. And the "big game" they're betting on is real life. Are rising oil prices good for the average Joe? Of course not. And isn't it a bit odd that one of the world's richest men, who hangs with the most powerful and influential businessmen and women across the globe, is hoping for gas prices to reach $4.00 a gallon? I'm not saying Mr. Pickens assisted in the rise of oil prices but if anyone had the power to make this happen, it would probably be him. There is an inherent conflict of interest here and his gain is the average Joe's loss.

Blanche Evans discusses this phenomenon using Robert Shiller, a finance professor at Yale University. Apparently he's a pretty important guy and makes up one half of the S & P Case-Shiller real estate pricing index. According to Evans, the Case-Shiller Index wields quite a bit of influence on how newspaper headlines read across the country and are notoriously pessimistic. We all know how doom and gloom headlines can -and have - affected the psyche of today's home buyers. And it's interesting to note the Case-Shiller index tells a different and much more disheartening story than 3 other well known real estate indices. But here is the kicker from the Evans article.

"The Case/Shiller Index is licensed by Macromarkets LLC. In partnership with the Chicago Mercantile Exchange, Macromarkets created the "Housing and Futures Options" for trading. The CME Group, a Chicago Board of Trade Company, describes trading housing futures as having multiple benefits to investors:
A new means of risk transfer to a broad range of investors
Low cost exposure to real estate values without direct ownership of properties
Access to a unique asset class
Opportunity to profit from a movement in housing prices
A way to make trading in real estate a short-term and liquid investment
This is a hedge product, folks, and guess who one of the owners of Macromarkets LLC is? None other than Shiller.
"Every time a CME hedge is made, revenue flows to Macromarkets," says Lawrence Yun, senior economist for the National Association of Realtors. "People would hedge only if they believe prices will fall big time."

Is this not a glaring conflict of interest? Isn't there a huge opportunity for abuse here? Is this a good thing for the powerful and ultra-rich to bet on economic downturns?

What We Can Learn From Japan

2008-04-07T17:48:00.004-05:00

I've only recently become aware of the real estate "bubble" that took place in Japan from 1986 to 1990, where real estate prices became so outrageous it is said land in Tokyo's Ginza district was going for $139,000 per square foot! But then things went South, way South. People were losing 80% of the equity in their homes. A $500,000 home would now be worth $100,000 but you're still paying a $500,000 mortgage. Talk about throwing your keys at the lender and walking away. And this lasted for 17 years only to experience an upturn in 2003. Ouch.

Is this where some parts of the United States are headed? Absolutely not. But according to Wikipedia (I'm not sure how accurate this is but it's the point that matters), the US lost $20 trillion in investments in the Japanese stock market due to their real estate collapse. So shouldn't we know better? Shouldn't the CEO's, CFO's and COO's of the largest global financial institutions - who I assume were around then - know that too much development, building and loose lending will eventually end up hurting the economy in the long run?

And shouldn't cities like Dallas know better? Didn't we learn anything from overbuilding skyscrapers in the 80's that now sit vacant and unused? Sure it's great when money is pouring in and condos and homes are being snatched up at a healthy clip. But aren't there any regulations or restrictions to make sure we don't overdo it? Most builders in Lakewood were building - and selling - their inventory between 1998 and 2004 and then started branching out into other areas because investors were swarming and invading their territory and ignorantly buying any tear down they could get their hands on at ridiculous prices assuming someone would pay them top dollar no matter what type of structure they built on the lot. Other areas guilty of the same mentality are downtown and all of their condo conversions and new builds, Oaklawn/Uptown, Preston Hollow and certain parts of the Park Cities. And lets not leave out Frisco, McKinney, Rowlett, Murphy, Wylie, Sachse, Cedar Hill, Mansfield...I could go on and on. Lavon, TX was recently featured in the New York Times because they are a prime example of how overbuilding has virtually brought the city to a complete stand still. From the article,

"These were not towns built on the speculation that soaring home prices would continue forever, like many developments in Florida and on the West Coast. These bedroom communities of bedroom communities were built because land was cheap, jobs were plentiful and mortgage rates were low."

I find this statement interesting because nowhere does the person say anything about the communities being built due to consumer demand. This is the golden rule for any retail product. Look at the Nintendo Wii. You still can't find the damn thing anywhere because the company releases the gaming system in small numbers. They get bought within hours. Rinse and repeat. That's the idea. Unfortunately people have been treating real estate like a commodity and not a product. They want to treat it like stock instead of selling a home for what it truly is, a product. Homeowners are also guilty of this mentality.

Financial Week ran a story back in 2007 reiterating what we already know. That builders are hurting because they can't sell their existing inventory.

"Dallas-based Centex...walked away from $38 million in deposits on land it planned to acquire for development. “They don’t need more land, they need more customers,” said Standard & Poor’s housing analyst Kenneth Leon."

To which I say, ya think so doctor? This is the root of our problem and I think Dallas needs to step in and prevent this from happening again. Why can't we use the Wii mentality and limit the number of speculative homes or condos being built within Dallas? This will create a sort of pseudo-demand. Builders won't be able to build willy-nilly and the consumer will still have a healthy number of homes/condos to choose from. As long as we stay under our historic healthy inventory levels then builders are free to build and receive permits. Once we breach that level then the city can halt all new speculative construction for 30 or 45 days or until inventory levels return to normal. I'm sure the big companies would never agree to this idea but I'd choose this scenario and know that my real estate values are being protected over what happened to Japan over the last 17 years, or what's happening to Lavon, TX right this very minute, any day of the week.

Dallas Is, Like, So Popular!

2008-04-06T23:13:00.004-05:00

Dallas seems to be on quite a few real estate "Best Of" lists lately. Just last week Forbes ranked Dallas as one of the Top 10 towns in America for emtpy nesters. Only a few days later Homevestors (We Buy Ugly Houses) ranked Dallas as the #1 city for real estate investing in the country!

Someone should tell our fair city that we're in great shape compared to the rest of the country. At the same time, those of you who are smart enough to take advantage of our large supply of homes and unusually low interest rates are probably happy everyone is sitting on the fence waiting for "better days".

Note to waiting buyers: "Better days" = higher interest rates and less inventory to choose from.

Real Estate Agent Photo Contest

2008-04-02T14:54:00.004-05:00

Over at Overheard (what?), Merritt Patterson asked readers to submit their most favorite "super-glam" Realtor. I'm glad to see the post got some great responses and I agree with all of the names I recognize. But of course someone couldn't resist poking fun. Someone calling herself "Glenda - The Benign Narcissist of the North" said,

"Dear Jeff Duffy - Is this comment referring to me?: “It’s the dead-behind-the-eyes agents that continuously list multi-million dollar estates while barely knowing how to park their Lexus at HP Village that will always baffle me.” And you people thought I couldn’t use a computer - Look at me now, I’m signing a Blob! Gotta run, I’m having a photo taken of my hair at the Lakeside listing. Toodles."

I know who they are referring to but have a feeling it might get me into even more hot water. But poking fun at Dallas' reputation for having big hair did give me an idea for a contest. Send me the most bizarre or outlandish real estate agent photos you can find and I will post them for all to see. I know there are some good ones out there.

This is Why You Need to Listen to Your Mama

2008-04-02T13:42:00.002-05:00

For those of you that think Phil Romano got the raw end of the deal when Miss Real Estalker opined about the Romano's decorating habits, read what she has to say about Rush Hour star and Jackie Chan co-star, Chris Tucker's California abode. I'll give you a taste.

"Upstairs in the "sumptuous" master suite we have more beige things and some disco lighting which is so perplexing and upsetting to Your Mama that we have already started in on the gin and it's not even noon yet. In the master bathroom we find more eye popping disco lighting and a spa tub large enough to host any number of Hollywood hussies with large plastic boobs."

There is so much more but I recommend you read it for yourself. You have to admit the cast stone corners on this house are very upsetting.

DREB March Record Setting Reader Stats

2008-04-02T12:58:00.004-05:00

February readership surpassed January's record setting month which was exciting. But March has blown both of those months completely out of the water. I broke out my abacus in order to give you the numbers.

February

Pageviews - 2,485
Unique Visitors - 1,722
Returning Visitors - 358

March

Pageviews - 5,351 (+54%)
Unique Visitors - 3,195 (+46%)
Returning Visitors - 698 (+49%)

Most popular posts

1. Park Cities Real Estate Stats
2. Genius Marketing or Just Juvenile
3. Breaking News: Phil Romano Not Selling Home Because of Me

(*Huge shout out to Frontburner, Overheard, Dallas Dirt and Unfair Park for linking to my blog)

Most popular search terms

1. Tony Romo (note: include more posts with "Tony Romo" in the headline)
2. Richest towns in america
3. John Allegro realtor dallas

Cities where most people view DREB

1. Dallas (good)
2. Plano
3. Houston
4. New York, NY
5. Ft. Worth
6. Irvine, CA

Other locations worth noting because I like their names
(City, Region, Country)

48. Nokia, Lansi-suomen Laani, Finland
72. Gurgaon, Haryana, India

A big thanks for coming back. I'm always looking for feedback on how I can improve this blog. Want more stats? neighborhood news? gossip and rumor? Let me know!

Be Glad You Don't Live In These Cities

2008-04-02T00:05:00.003-05:00

Forbes lists America's riskiest real estate markets. Read the full story here or just look at the pretty pictures.

$100,000 Price Reduction on Beverly Drive

2008-03-27T23:44:00.004-05:00

Remember this little incident I caused over at Overheard? Apparently the ruckus even made its way on to a real estate blog in San Diego. To summarize, a FSBO at Beverly Dr. and Preston Rd. in Highland Park was asking $2,250,000. After 2 months and no sale they listed with an agent and increased the asking price by $200K to cover the commissions. I called shenanigans saying buyers would see right through their ruse. It stirred up some serious emotions to say the least.

Today the MLS shows the property reduced $100,000 off their original $2,495,000 asking price and it has been on the market for roughly 2 months. So they are now at $2,395,000 which is still $145,000 more than what they were asking during their FSBO days. It didn't sell then after 60 days on the market and now they have been on the market for 2 more ,months at a higher price and have just reduced $100,000.

Some of you might be waiting for the "I told you so" but it's not coming. All sellers in this market can learn from this example. In both good and bad markets, Dallas will never be a real estate market where you can test the buyers and hope a hedge fund daddy will simply pay you what you're asking, just 'cuz. Most buyers in the Park Cities are smart and their Realtors should be even smarter.

Now we'll just have to wait and see how my $1.9 to $2 million dollar sales price prediction holds up.

How Much Are Realtors Worth?

2008-03-27T16:32:00.006-05:00

Many people don't want to pay the traditional 6% commission (3% to listing broker and 3% to selling broker) so they turn to discount brokerages in order to save a quick buck regardless of the service or competence of the agent they hire. But aren't some agents worth more than others?

If Ebby Halliday wanted to list your home, would you tell her she isn't worth 3% and ask her to reduce her commission? Would you tell Virginia Cook to take a hike because you would rather list your $1.5 million dollar home with a no-name, start up, discount real estate brokerage? Of course not.

If you list with a discount brokerage then you should expect discounted service. With all of the criticism surrounding Realtor commissions, how has no one come up with a commission structure that consumers are truly happy with after 106 years? The sad truth is that no one ever will because consumers will always be cheap and Realtors will always have a poor reputation.

Breaking News: Phil Romano Not Selling $17.5 Million Dollar Home Because of Me

2008-03-26T18:21:00.009-05:00

Or so a mystery source told my office manager. My manager won't divulge the person's name but here's what they said. Doris Jacobs, the listing agent for Phil Romano's $17.5 million dollar abode on Strait Lane, is apparently upset with me because she says I am responsible for Mr. Romano pulling his house from the market a few months ago. While I appreciate the implication that my little blog weilds such power over the psyche of the restaurant mogul and recent house-flipper, I'm afraid that accusation is nothing short of absurd. Indulge me while I break it down for Mrs. Jacobs and the mystery source and set the record straight.

December 5th, 2007 - Romano home hits the MLS for $17.5 million.

December 30th, 2007 - The Real Estalker gives her opinion on the Phil Romano house decor. Let's just say it was none too flaterring.

January 2nd, 2008 @ 9:54am - Kristiana Heap over at Park Cities People's blog Overheard, picks up on the news from Real Estalker and brings it home to Dallas.

January 2nd, 2008 @ 11:46am - D Magazine's real estate blog, Dallas Dirt, catches wind and enters the fray via D's Adam McGill.

January 2nd, 2008 @ 10:15pm - Candy Evans posts some pretty personal information (rhymes with "Three Forks") from an anonymous "high profile real estate source" that says this is the reason the Romano's pulled their home from the market.

January 3rd, 2008 - Little ol' DREB posts what everyone above has already been blogging about.

January 8th, 2008 - The Romano's pull their listing from the MLS. Prompting a few blogs (inlcuding DREB) to discuss why they did so.

I hope this timeline of blog posts will clear things up for Doris and the mystery source who tattled on me to my office manager. Furthermore, I'm pretty sure the Romano's had their own reasons for pulling their $17.5 million home off the market after 34 days. Phil Romano has been ridiculed by the likes of D Magazine for years, and he's going to get his feelings hurt over my little blog regurgitating what other blogs have already discussed? That's giving me a little too much credit and the Romano's too little.

Genius Marketing or Just Juvenile? You be the Judge

2008-03-26T10:47:00.003-05:00

I don't know Rogers Healy, who recently formed his own real estate company here in Dallas, so I don't want this post to be misconstrued as being critical of him. I came across this article in the SMU Daily Campus and it seems as though he is going after a particular niche market with a certain amount of, well, arrogance. I'm struggling as to whether it's brilliant or not. Here are some of the rather self-aggrandizing statements from the article. You be the judge.

"...we're not your mom's best friend," Healy said. "We're young people who are good looking and aggressive, and that opens doors."

Is this alienating the baby boomer generation? The girls are cute but the dudes need to kick it up a notch, ifyaknowwhatimean.

"Every person on Healy's wall of fame has a connection to Healy, including best friend Tony Romo. The two were introduced through a mutual friend."

Really? Best friends with Tony Romo? I thought that was Jason Witten. I guess I must have missed him in that photo in Cabo.

"Healy gets more than 400 calls a day on his cell phone. He keeps it constantly plugged into a charger to manage all of the calls."

Really? 400 calls a day? Does Donald Trump even get 400 calls a day?

"With the office fridge stocked with beer and a staff made up of an ex-college cheerleader, a Maxim magazine model, a reality TV star and a few frat boys, it is no surprise that Healy is the buzz around town."

But you're professionals, right? And the kicker,

"Healy was busy last fall switching careers from realtor to matchmaker, successfully creating Hollywood's 'it-couple' when he introduced Jessica Simpson and Tony Romo."

Really? Seriously? He's taking credit for introducing Romo and Simpson? I obviously can't refute any of these claims but like I said before, maybe this is brilliant marketing to a niche not yet served in our real estate market.

Buyers Are Buying. Wanna Know Why?

2008-03-25T12:12:00.003-05:00

The reason according to Blanche Evans of Realty Times is simple.

"Consider that home prices [across the country] in February 2007 were $213,500 and interest rates for the month averaged nearly 6.5 percent. In 2008, prices are $195,000 and interest rates averaged 5.9 percent.

So it shouldn't be surprising that housing inventories have dieted down to a 9.6-month supply from over 10-months on hand in January."

Make perfect sense to me. Mortgage rates are low, low, low and there's plenty of inventory to choose from. I also think seller's are beginning to get a little more realistic with their asking prices. These are all ingredients for a market upswing.

My 1 Minute of Fame Discussing the Increase in Home Sales

2008-03-25T11:55:00.010-05:00

I can't seem to figure out how to imbed the video directly into my blog. Ugh! So here is the link to view my take on the recent good news for real estate across the country. Enjoy!

Thanks to CW33 for sharing the good news and adding a healthy perspective.

Are Jessica Simpson and Tony Romo Going Country?

2008-03-25T02:04:00.003-05:00

I have absolutely no idea. I'm simply passing on gossip and rumor from the Real Estalker who has it from the Nashville Post that Miss Romo just plunked down almost $3.5 million big ones on an 11,000 square foot bachelorette (?) pad.

Yes it's true that Miss Romo is getting less and less relevant with each passing day, but she certainly knows how to pick real estate - and men.

Attention Investors: Florida Mega-Mansions Hit Auction Block

2008-03-24T11:32:00.003-05:00

From CNNMoney.com,

"These luxury homes were languishing on the market, or in builder inventories, as Florida real estate imploded. Now Sotheby's is hoping to auction them off at an event on March 28. The owners no doubt have their fingers crossed."

Yikes.

If You Had $45 Million+ to Spend on a Home

2008-03-24T00:04:00.006-05:00

Which of the following 2 homes would you buy? Let's see,

La Reve in Cumming, GA for a cool $45 million.

or

Champ d'Or in Corinth, TX for a few more bucks at $72 million?

Hmm. That's a toughy.

How Do You Search for Homes?

2008-03-21T13:35:00.001-05:00

Surveys offers insight into how the general public feel and think about certain topics. Many people are saying newspaper ads are dead and more and more people are turning to Craiglist, Realtor. com and other websites to advertise or search for real estate listings. If you are a buyer or simply love looking at homes online, how do you primarily do your searching?

Dirk's Rumored New Digs Gets Ripped From the MLS

2008-03-21T13:00:00.004-05:00

Candy Evans over at Dallas Dirt broke the news about Mr. Nowitzky possibly snatching up a fancy shmancy new home on prestigious Strait Lane. Two days ago it showed up as "Sold" in the MLS and as of yesterday the listing has been "Cancelled/Withdrawn".

This is an old school way for agents to pull their listings out of the MLS so no one can see what they sold for. But why wouldn't they just not disclose the sales price? Agents can have their clients sign a non-disclosure form and the price will be "Z'd out". Why the secrecy?

My Prediction for Dallas Real Estate in 2008 and Beyond

2008-03-19T09:46:00.006-05:00

Dallas ain't San Diego (pictured), thankyouverymuch. And that's just how we want to keep it. Wells Fargo economist, Scott Anderson, has said that Southern California home prices will decline over 10 percent in 2008, and additional half a percent in 2009, where he too believes the market will bottom. Not only that but an economist at Beacon Economist in Los Angeles feels that real estate prices in San Diego and Southern California will continue to decline through 2009 and will not show significant improvement until 2012.

2012? Ouch! My 2008 prediction for Dallas is there will be less sales this year but prices will remain flat (up or down 1% in Dallas), similar to 2007. In 2009 we will see a 2% or 3% increase in appreciation and the number of sales will increase slightly over 2008 numbers. And those that were walking away from their negative equity in '06, '07 and '08 will be itching to get back into the real estate market in 2010, 2011 & 2012.

Not to get all HGTV on your asses, but...

2008-03-18T15:26:00.004-05:00

I totally giggled when I read this line from my "gal" the Real Estalker. She just gave me a fun, unoriginal and childish phrase that I am totally going to steal and over use.

Acclaimed "30 Under 30" Realtor Faces Mortgage Fraud Charges

2008-03-18T14:23:00.005-05:00

Realtor Magazine releases it's choices for the best 30 Realtors under 30 each year. So says the home page,

"These bright young professionals, chosen from more than 600 applicants, showed they have what it takes to open doors in any market."

And from the sounds of it Eve Mazzarella (pictured) of Las Vegas was opening plenty of doors for people. But it's just that she may have been making millions doing so fraudulently, according to the Feds. Among the allegations,

The government alleges Mazzarella and Grimm bought more than 200 properties at inflated values using limited liability companies and more than 400 straw buyers to make purchase offers.
The couple allegedly controlled transactions worth more than $100 million."

Geez. No wonder she made the list. And no wonder Realtors have such a bad rep.

What's Cool for Pools?

2008-03-18T14:03:00.003-05:00

Dena Kouremetis with Realty Times tell us. Here's a sneak peek.

According to pool builders, beach entries, fire features, water fountains, infinity edges and saltwater pools are all the rage.

One thing they left out was size. I have found that today's consumer wants a smaller pool because they still want to have grassy areas in their backyard, especially if they have children and a playset. In my experience, when buyers in Dallas see an older pool needing work it is a sure bet they will bypass that house simply because of the pool. Hint: If you have an older pool that needs a complete overhaul, you might want to consider filling it in as opposed to renovating it. If a buyer really wants a pool they can build their own. And a nice green backyard can be a perfect blank slate.

Are There Too Many Realtors? Part II

2008-03-15T01:30:00.003-05:00

Is this your Realtor?

Lawrence Yun, NAR's chief economist, gives us some great news. The number of Realtors is finally going down instead of rising exponentially as it has over the past 6 years or so. He leads the article with a candid, refreshing and honest,

"NAR membership figures have finally begun to fall. Whew!!!"

Then comes Jessica Swesey of Inman News Blog as she shares her thoughts about the matter. She mentions the obvious,

"And NAR definitely benefits from having more agents. More agents = more members = more dues = more powerful trade group. NAR's swelling membership of recent years certainly has helped the group maintain one of the largest political contributions in the country and the political clout that goes along with that." Sound familiar?

She touches on the fact that older agents who are not very tech savvy are deemed less than capable by their younger clientele who, more than likely, utilize technology in their every day life. And I'm not just talking about Gen X & Y. I learned about Firefox and all sorts of other techy stuff from a past client and mother of 4 college kiddos. (Thanks Sue!) Am I telling older agents that don't have email addresses to get out of the business? No. I'm also including the 70% of Realtors that only make $1,000/month selling real estate.

Who wants to go to a "professional" that only works 4 or 5 weeks out of the year only selling 3 or 4 homes in a year? Who wants to work with an agent that doesn't know how to log onto the internet and thinks a Treo should be dipped in milk and has cream filling? Apparently many consumers are ok with the agents I just described. Lydia Player does a good job of exposing this type of incompetence. Someone please tell me why someone would be ok with this type of agent?

Neighborhood Stabilization Overlay = "I Hate You and Your House"

2008-03-13T01:03:00.005-05:00

This has to be my favorite blog picture. And so very apropos for this article in DMN which just adds to the tension being built up in parts of East Dallas. (Is East Dallas really this bitchy?) It's no secret the residents here - yes, I live in Lakewood - have been dividing neighborhoods for years regarding tear downs and McMansions. But guess who's been doing the dividing? It's not the people tearing down homes and bringing higher income families to East Dallas schools. Have you ever seen or heard someone saying, "Screw you and your old home! I'm going to tear this bitch down and build the biggest and gaudiest house I possibly can just to piss you off. And I'm going to spend $700K doing it! So there!". I didn't think so.

If your 2 bedroom, 1 bath home is really that cute then someone will buy it and live in it. So until then, East Dallas, the Park Cities and Preston Hollow will continue to "one up" you when it comes to real estate values, Whole Foods, retail, restaurants, schools...get the picture?

Wikipedia says, "Cutting off the nose to spite the face is an expression used to describe a needlessly self-destructive overreaction to a problem." It's called change. Deal with it.

Top 10 Things That Will Sell Your Home in Today's Market

2008-03-13T00:41:00.005-05:00

1. Price your home competitively.

2. Get an inspection before you put your home on the market.

3. Make repairs that show up on the inspection report.

4. Put oversized, ugly and unnecessary furniture in storage.

5. Landscape your front and back yard. This is the number one money maker and is the most ignored.

6. Paint over your Trading Spaces purple faux paint job, circa 1999.

7. Hire a Realtor that knows what the hell they're doing. Ask how many homes they have sold in the last 12 months, average days on market, average list to sales price ratio, what is their marketing strategy? If they can't answer any of these then you need to call me ASAP.

8. Hire a Realtor that knows how to exploit the internet when exposing your home to internet buyers and also knows how to capture those leads so they can follow up. During the interview, ask the Realtor if their listings will show up on other real estate company websites. If they don't know the answer then you need to call me ASAP.

9. Did I mention pricing your home competitively?

10. Hire Jeff Duffey. Yeah. I said it. There's not enough shameless promotion on my blog.

Who is "LANC"?

2008-03-13T00:22:00.006-05:00

I received the following comment from a concerned Dallas resident (I assume),

"Anyone with a genuine interest inseeing the LANC area improve should question the intent of Mr. Allegro.He is at best a gadfly and at worstan accomplished purveyor of half truths and self serving inuendo.He would be comic if he were not so ill intended.He represents himself as a major real estate investor while the actuality seems to be that he tends to a family trust. If he seeks to insinuate himself into your group please be cautious. Yourfuture is worth the time it takes to investigate this man."

And then I read the following comment on Trey Garrison's post about the halted Fairfield Residential Development Plan,

"How did the opposition group to this development (the Lovers Amesbury Neighborhood Coalition) manage to leverage so much power? The two ring-leaders (Norma Minnis and John Allegro) live on the far side of White Rock Lake… 4 TO 6 MILES AWAY from the proposed development. What dog do they have in this hunt and why does Angela Hunt even bother giving them the time of day?
One thing that I’m really starting to get tired of is these fake, astro-turf “Neighborhood” action committees that, more often than not, are actually something else entirely. If organizations like the LANC have legitimate concerns, why do they have to masquerade as something they are not?"

I know Norma Minnis personally and plan on asking her about this. And I assume John Allegro is the East Dallas Realtor whose office is right behind Cantina Laredo off Abrams. I know his wife Mary so I eventually plan on discussing this matter with her as well. My concern is that Norma Minnis (I can't speak about John personally since I've never met him) is a great person and as far as I can tell a well respected person in the real estate industry. But I'm not sure she and one other local Realtor weilds this much power. I can see how someone like Neil Emmons would be able to sway Angela Hunt's vote seeing as he is the first line of defense on the City Planning and Zoning committee. But to give an organization like LANC so much power seems that we might be overlooking the true source that is halting development in East Dallas.

If LANC truly holds this much power then they owe East Dallas a HUGE explanation for their actions. And while I appreciate folks calling people to the carpet, I can help but feel like I'm missing something here.

It's Not a Texas Primary Poll. But It's a Start

2008-03-11T00:18:00.003-05:00

Go here and let your voices be heard!

Fun New Buttons for Your Mouses, Mice and Meeces

2008-03-10T23:42:00.003-05:00

Avert your eyes from the Pussycat Dolls and pay attention to the cool new buttons I spent WAY too much time creating for you, dear readers, and your real estate enjoyment. Now click on 'em.

When Did a House Stop Becoming a Home?

2008-03-10T20:09:00.004-05:00

I've said it before and I'll say it again, if sellers are expecting to make tons of cash selling their homes after living in them for 1 or 2 years, they are simply being unrealistic and, frankly, stupid. Blanche Evans of Realty Times gives us her take on today's consumer,

"Today's homebuyer thinks a home is only an investment. The NASDAQ has never recovered to its 2000 highs because people want the big return on their investment. They could likely look at housing the same way - not interested if it only returns two percent a year. Never mind that two percent a year is the historical norm. They want more."

How did we get to this point? When did homeowners start feeling entitled to lots of money from the sale of their home simply because they purchased it and made no improvements to it while they lived there? How did we go from pride of home ownership and being ecstatic that we were finally able to "realize the American Dream" to a competition of "How much equity were you able to squeeze out of your house?". I'm sure this mindset might have something to do with this.

Is There Such a Thing as Too Much House?

2008-03-10T19:39:00.004-05:00

Certainly not in Texas. I mean c'mon. But in Boca Raton, FL a hot off the presses millionaire, who raked in his cash using the ever popular get-rich-quick formula of man forms company, company does ridiculously well, corporation offers zillions to buy it, man lives happily ever after swimming in his riches (Right Larry Lacerte?), built a lavish estate fit for a king and days after moving into the 23,000 square foot behemoth they put the home on the market for a blistering $24.9 million. According to the Wall Street Journal article,

"The 23,000 square-foot mansion is done in French-Country-Manor-style (this being the Florida beach), with four kinds of rare onyx in the bedroom, music piped underwater in the resort-style pool, a computerized television system holding 850 movies and hand-shaved walnut floors. The doorknobs and hinges alone cost $160,000.
Yet when Dru and his wife and kids moved in, they discovered a problem. It was too big. So days after moving in, they put it on the market.
"They’re from the Midwest,” Gerard Liguori, the home’s broker, told [WSJ]. “When they moved it they felt it was just too large for what they were comfortable with."

Amateurs. I'm sure here in Dallas we would shame them back to where they came from. We can't seem to get enough house around here. But I have a feeling they put the home on the market because they spent too much money on the underwater speaker system in the pool. It wasn't too long ago a "little" home on Strait Lane had 2 separate owners that spent beyond their means and had to sell before they ever saw their dream home realized.

Thanks to Cooper Smith for the linkage.

Collin County Sales Stats

2008-03-10T00:28:00.005-05:00

Collin County Sales Stats

January 1st, 2007 to March 10th, 2007

Sold: 1,997
Avg. DOM: 73
Avg. SF: 2,593
Avg. Sales Price: $237,701
Total Volume: $474,688,596

January 1st, 2008 to March 10th, 2008
(% Change)

Sold: 1,466 (-27%)
Avg. DOM: 89 (+18%)
Avg. SF: 2,660 (+3%)
Avg. Sales Price: $239,693 (+1%)
Total Volume: $351,390,193 ( -26%) *Many sales are not reported until months after they take place so this number will most likely increase over time.

All the talk about foreclosures in Collin County doesn't seem to have affected prices seeing as they posted a 1% increase over this time last year. Number of sales seems to have been affected the most in both Collin and Dallas counties.

Is this due to buyer psyche? There's more inventory on the market but less sales which means buyers aren't buying for some reason. I explained why back in December. This seems to still be the case. Basically, there's lots of ugly and overpriced homes on the market and buyer's arent' stupid. Reduce or clean up and fix your house. Otherwise, sit tight.

Dallas County Sales Stats

2008-03-10T00:09:00.006-05:00

Dallas County Sales Stats

January 1st, 2007 to March 10th, 2007

Sold: 3,789
Avg. DOM: 75
Avg. SF: 2,011
Avg. Sales Price: $208,099
Total Volume: $788,485,505

January 1st, 2008 to March 10th, 2008
(% Change)

Sold: 2,863 (-25%)
Avg. DOM: 85 (+12%)
Avg. SF: 1,984 (-1.5%)
Avg. Sales Price: $194,344 (-7%)
Total Volume: $556,407,923 ( -30%) *Many sales are not reported until months after they take place so this number will most likely increase over time.

I wish I had better numbers to report. But what does this mean for you? Nothing until you look at your specific neighborhood sales stats. Many older and established neighborhoods near downtown Dallas are experiencing price increases while many newer developments in the outlying areas within Dallas county are experiencing losses. Talk to your neighborhood Realtor before you go spreading that doom and gloom gossip.

Best Idea Ever That Will Never Happen

2008-03-06T23:52:00.004-06:00

Blanche Evans over at Realty Times continues to impress me with her ability to think outside the box. Add to that her ability to think practically and logically and you have a recipe for genius ideas like the one she offers in this article. The takeaway for those too lazy to read the whole article?

"Services, as a percentage of personal consumption, have grown exponentially. Think cell phones, cable TV, and the Internet. In 1929, services were $30.5 billion, or 29 percent of personal consumption. In 2007, services were a whopping 60 percent of personal consumption.
So here's my plan for avoiding the recession and getting housing back on track. Instead of an economic stimulus package, make the cell phone and cable companies give consumers rebates and better rates on our phone and TV services."

This hits a little close to home for me. Before I got into real estate I was getting my masters in Kinesiology and making about $15,000 a year student teaching, coaching tennis and teaching private lessons on the side. And that's being a little optimistic. But my bills and rent were always paid on time and I was content with my Ramen noodles and Hamburger Helper. When I experienced a little success in real estate I moved up to a more expensive apartment, got the HBO and Showtime package, wireless internet and upgraded from Ramen to chinese takeout. Then came a new car, house, maids, more bills, dry cleaning, fancier dinners. You get the idea. Mo' Money, Mo' Problems.

Today's consumer can easily and quickly become immersed in a never ending sea of bills that are the services Blanche speaks to in this article. What good is a $300 stimulus check from the government going to do for someone whose electricity bill is $350 a month? What about the person who is paying $500 a month in credit card bills with 28% interest rates? Blanche is so right on with this idea. It's just too bad it will never become a reality.

Financial planners agree that houses will continue to be a poor investment

2008-03-05T23:03:00.009-06:00

This headline was a quote from Kiplinger's Personal Financial Magazine in 1993. Terry Forsberg, a Realtor in Scottsdale, Arizona, compiled many quotes like this one in order to fight back against the newspaper and magazine scare headlines predicting the virtual demise of real estate across the country. I've copied his email below. This is a great dose of reality to those that are buying in to the negative hype. Take a look at how much homes have appreciated since 1996 across the country and tell me with a straight face that real estate is a poor investment. America's short sightedness is rampant and only the truly intelligent and edcuated people that have a sense of perspective about how real estate appreciates will come out on top. Will you be one of those people?

The Media’s Attack on the Real Estate Industry

The Media’s attack on the real estate industry is nothing new. For decades they have practiced doom and gloom tactics and in some cases have actually caused real estate prices to decline short term. The good news however, is each and every short term decline has been temporary and has been followed by long term price appreciation.

Today we are in the middle of a window of opportunity to purchase attractive real estate at the best prices we may see in our lifetime and to receive “incentives” on our purchases on top of it! The incentives, which are being offered by builders and developers, will not last any longer than they need to. Once the market begins showing signs of a rebound, these incentives will dry up.

Sit back and enjoy some of these dire media projections from yesteryear and allow them to mirror the wide variety of “fear factor” type “media” comments that exist today.

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." - Time Magazine, 1947

"Houses cost too much for the mass market. Today's average price is around $8,000 - out of the reach for two-thirds of all buyers." - Science Digest, 1948

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." - Business Week, 1969

"You might well be suspicious of 'common wisdom' that tells you, 'Don't wait, buy now… continuing inflation will force home prices and rents higher and higher.'" - NEA Journal, 1970

"The median price of a home today is approaching $50,000… Housing experts predict price rises in the future won't be that great.”- Nations Business, 1977

"The era of easy profits in real estate may be drawing to a close." - Money Magazine, 1981

"The golden-age of risk-free run-ups in home prices is gone." - Money Magazine, 1985

"Most economists agree…. [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980's." - Money Magazine, 1986

"Financial planners agree that houses will continue to be a poor investment."- Kiplinger's Personal Financial Magazine, 1993

"A home is where the bad investment is." - San Francisco Examiner, 1996

"Home prices experience historic drop." - CNN Money.com, 2007

Each and every negative prediction by the Media was short-lived. At the time such predictions made it appeared real estate would never go up again in value - similar to the way it feels for many now. The good news is found in the few lines below. This time is no different than times past! FACT: National real estate values have appreciated

• 88% since 1996
• 340% since 1977
• 685% since 1969
• 2650% since 1948

Best Regards,

Terry

This House is Like a Door Knob...

2008-03-05T22:18:00.005-06:00

...everyone's had a turn. Or, "this house has been around the block". Anyone? Anyone? No? Okay. I thought it was funny. Anwyay, check out this home's listing history affectionately known as Sonnyland in Frisco. If you read D Magazine or D Home then you've surely seen their ad over the last 4 years. You haven't seen a colorful listing history until you've seen this one. Where to begin, how about 2004?

Keller Williams for 71 days
Listed 5/04 at $4,150,000
Expired 8/04 at $3,995,000

Hoffman International for a hair raising 612 days
Listed 8/04 at $4,200,000
Expired 4/06 at $3,600,000

Ebby Halliday for 232 days
Listed 5/06 at $2,995,000
Expired 12/06 at $3,495,000 (Raising the price $1.5 million. Really?)

Took a break from MLS from 1/07 to 6/07

Sharif Munir for 226 days (What's up with listing with Sharif Munir? Interesting choice)
Listed 6/07 at $3,375,000
Expired 1/08 at $3,400,000 (What's the $25K increase in price for?)

Sharif Munir - again - for 42 days
Listed 1/08 at $2,600,000
Expired 3/08 at $2,600,000

Whew! My head is spinning. Having started off asking $4.2 million and last listed at $2.6 million, if you add up all the days this house has been in the MLS it equates to a heart stopping 1,183 days! That has to be the longest listing history in the history of foreverness. Not sure why, but it reminds me of this.

Ever Wonder Where Billionaires Live? Check it out.

2008-03-05T21:43:00.007-06:00

George Lucas' crib in Cali.

This is where Oprah Winfrey hangs out. Also in Cali.

I love the fact that Warren Buffet still lives in the home he bought in 1958 for $31,500. See the rest here.

HOA's and Politics

2008-03-05T17:59:00.002-06:00

While walking the dog this morning in my lovely little townhome community I saw this sign in a window. I remember back when the mayoral race was going on and someone put an Ed Oakley sign in their "front yard" - which is really community property -and the HOA made them remove it. You also can't have For Sale signs in your windows or anywhere on the property. I personally could care less if people wanted to put political signs in their windows but I'm sure it's a matter of time before the HOA tells them to remove it. But should they have to? Is this really a matter of maintaining property values? I've always heard that the more an entity tells you what you can and can't do to your property, the less valuable it really is.

This Marriage Ain't Long for this World

2008-03-05T10:51:00.003-06:00

I've talked about Irvine Housing Blog before, a blog devoted to encourage people to rent instead of buy due to Irvine, CA's terrible real estate market. Or as the blog author puts it, "Chronicling ‘the seventh circle of real estate hell’ since September 2006". Today he posted a poll where you could vote on how long you could stand being "upside down" on your mortgage. (You owe more on your mortgage than your home is worth). Most people have said they wouldn't stand for it for even a minute. Just walk away and throw your keys to the lender, baby! Nice attitude. Or you could just stay in your damn home until things turn around. But I digress, this comment from a reader is what really caught my attention,

"I got aways to go yet. We bought our “McMansion” in 2001 and the price skyrocketed to almost double. I tried to talk my wife into selling and moving to a local rented apartment or townhouse (daughter in public HS) about a year/year and a half ago (when things were still hot to sell) but she wouldn’t hear of it. We could have walked away with $300K in profit (after fees) and, while the prices have not dropped here in MD like they have in CA, I fully expect that, when my daughter has finally graduated in mid-2009 and I finally talk my wife into selling (prolly 2010), we will only be able to sell for a modest increase over our cost of purchase, if that.
My wife is a Pollyanna. She still thinks things won’t get that bad here. So far the local comps are about 10% off their highs of 12 months ago and sales have slowed. My only consolation is I will have an “I told you so” to hang over her head."

Um. Wow. Can you imagine what this guy's wife would say if she knew he felt this way? Ouch.

You Be The Judge

2008-03-05T02:50:00.011-06:00

I almost didn't post this because I don't want this agent to think I am picking on him. He's an incredibly successful agent and works with many professional athletes including Nolan Ryan and his family. So he knows what he's doing when it comes to selling high end real estate. But check out these pictures for his listing on Beverly Drive.

Front. Nice picture. No complaints here.

I'm pretty sure the kitchen is a little bigger than this. But from the picture you'll never know. Also looks dark.

Living room looks small because of the angle. Again, I'm sure it's not but pictures are all that people are looking at while online.

I'm not sure what this room is. Sitting room? Library? Whatever room it is it looks too dark.

Picture of a bed. Can't see the flooring and looks like a typical $150,000 home in Garland. This home is on Beverly Dr. people!

I'm really not sure what's going on with this angle. Is their headboard that ugly? I assume this is the master bedroom but you don't get the sense it's all that big in this picture. Do you?

Odd angle and again just doesn't do the space justice.

Seriously? You can't move a few things off the desk before snapping this shot? I have moved sofas, tables and beds in order to get the perfect picture. I don't think I'm being too picky here.

Gives a whole new meaning to the term "postage stamp yard". The lot is small (70x145) so I guess this is all you're going to get anyway. Not sure I would post this pic seeing as how buyers love them some backyard space.

My point in posting this particular listing is if you only had these pictures to look at (excluding the front picture and didn't know it was on Beverly Dr.) would you really think the asking price of this home is $3.4 million dollars and the home has over 7,100 sf? My clients call me hours after listing their home already telling me they want me to retake pictures of their guest rooms or living rooms because they don't care for the picture I took. And I'm completely fine with that because my goal is to make sure they are happy and content. But to be honest it doesn't happen often because I'm an awesome picture taker-er. Yet this seller is content with these pictures? Am I being too picky here? Compare with this picture and let me know which one you would prefer.

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