How to Protest Your Home's Value

If you live in Dallas County, you have until May 31st to protest your home's assessed value. So, if you feel like DCAD's valuation of your home is worth more than what you could actually sell it for in today's real estate market, then you should keep reading because you're paying too much money to the man.

The quickest way to protest your taxes is using the new uFile Online Protest. Here are some screenshots to help guide you through the process.

• Go to http://www.dallascad.org/ and search for your property 

• Type your name in the box as instructed and choose the property you want to protest

• Click on the uFile Online Protest link and follow the instructions

Click here for the full protest procedures located on their website. And if you'd like me to send you some comparable sales information in your area to back up your claims, shoot me an email and I'll do what I can to help out.

Don't live in Dallas County? Try one of these websites to learn more about your appraisal protest procedures.

Collin                      www.collincad.org
Denton                    www.dentoncad.org
Fannin                     www.fannincad.org
Grayson                  www.graysonappraisal.org
Hunt                        www.hunt-cad.org
Rockwall                 www.rockwallcad.com

Two More Reasons Why I Have Little Respect For Real Estate Agents

#1 - Commenting on offers before presenting them to your clients

When I receive offers on my listings - even very low offers - my standard response is, "Thank you very much for your offer. I will present it to my clients and get back with you as soon as I can." Unfortunately many agents feel the need to interject their personal opinion on the matter before we ever start negotiating. For example, recently I made an offer on behalf of my buyer clients and it went something like this:

My client offered $275,000 on a home listed at $300,000 in hopes of meeting somewhere in the middle. This is pretty much standard practice, depending on various other factors, but for the most part this happens frequently. The listing agent called my cell and said, "Jeff, your client's offer is VERY low. I don't think we're going to be able to get this to work." I asked if he had presented the offer to his clients yet and he said, "Well, no. But I think they're going to be offended." He thinks. He doesn't know. He thinks! So in his mind, before even presenting the offer to his clients, he thinks we have no chance of making this work. The best part of this true story is that they accepted $275,000.

#2 - "Agent is owner"

If you don't know how I feel about agent-to-meet showings then you can catch up by reading this post. Yesterday I scheduled about 10 appointments for homes priced at or just under $300K and I gave the homeowners more than 24 hours notice. Under 99.999% of circumstances homes under $300K should never be agent-to-meet appointments. One listing tried to reschedule our showing by an hour because the agent had to meet us at the home to let us in. When you're looking at 10 homes in a 10 mile radius it's too much hassle to go back to view one home. I cancelled the showing. There is simply too much inventory to look at. The scary part about this story is that the home is owned by a licensed realtor. She should know better than to a) reschedule a showing with 24-hour notice, and b) require that she meet us at the home to let us in.

Happy Friday, indeed.

Most Expensive Homes In North Texas

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

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.

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

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"

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

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?

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?

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.