Most Dallas Home Sellers Are Unaware Of The Tire-Kicker Epidemic.

By Troy Corman, http://www.t2realestate.com/

TIRE-KICKER ALERT - I recently listed a home for sale on the North Texas MLS, or NTREIS, and instructed Dallas real estate agents to make sure that their buyers were pre-qualified. You'll be amazed to know that to date, I've had five requests to view the home, and ZERO buyers that had been pre-approved for financing. It sure is fun to look at homes, but I guess getting pre-qualified for home financing just takes too much work.

Unfortunately, with the housing slow-down, some Dallas realtors it seems, are in desperation mode, and have forgotten one of the basic fundamentals when it comes to representing home buyers - MAKE SURE THEY ARE QUALIFIED TO ACTUALLY BUY!

Realtors knows that the odds of a prospective home buyer actually closing on a home purchase isn't a slam dunk by any stretch. But offering to drive folks around that aren't interested or motivated enough to get financing approval means you're simply relying on dumb luck. This waste the agent's time, the home sellers time, and the listing agent's time, who usually fields calls from the home seller each time there is a showing on the home. And if you've ever sold a home you've lived in, you know it's work to keep it clean and presentable at a moment's notice.

One would think having the home buyer put in a comparable effort isn't too much to ask.
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How a Short Sale, Foreclosure and 30 Days Late on a Mortgage Affect Your FICO score.

By Troy Corman,

Working in real estate and dealing with home sellers and renters in today's marketplace, you get a first-hand look at the financial damage many individuals have recently encountered. Short sales, foreclosures, and bankruptcies are a common theme.

Like most, I was surprised to find that the credit destruction from both a short sale and a foreclosure is quite similar. After reading a blog entry, Credit Scoring Impacts Short Sale vs Foreclosure by Massachusetts Realtor Bill Gassett, I thought this information was too valuable to keep to myself. Thanks Bill for a great article!

So how does a short sale affect your FICO score, or credit score? Surprisingly, you'll find that a short sale and a foreclosure have very similar effects on your credit score. As you'll see in the chart above, a person who starts out with a credit score of 680, can expect his or her credit score to drop to 575-595 after a short sale AND it's the same reduction for a foreclosure. A bankruptcy even does more damage as it will drop the said 680 credit score to the 530-550 range.

Also, just being 30 days late on your mortgage really hammers your credit score. As you'll see in the FICO chart, a 30-day late payment reduces the 680 credit score to the 600-620 credit score range.

So how long does it take to restore your credit after a short sale, foreclosure or 30-day late payment on a mortgage? Well according to FICO, the higher your original credit score, the longer it takes to restore that credit score to it's previous level. A 30-day late mortgage payment would take about 9 months to get back to the 680 level if you started out there. Unfortunately, it would take about 2.5 to 3 years to get back to a 720 FICO or 780 FICO, respectively.

A short sale is still better than having a home foreclosure. A short sale on a Fannie Mae loan will allow you to buy a home sooner - within about 2 years. With a foreclosure on a Fannie Mae loan, you'll have to wait 5 years to purchase another home and 7 years if you suffer a foreclosure on an investment home.

If you need to buy, sell or get a home leased, contact me at 214.690.9682, or email troycorman@t2realestate.com.

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.
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An Inside Look at the Dallas Real Estate Market.

By Troy Corman, www.t2realestate.com

Photo above is a short sale home at 3165 West Alamosa in Terrell, Tx.

As we continue to get better DFW and Texas housing news, I wanted to take a more detailed look into what homes, and price points, are really moving. The numbers below are encouraging. With 30-year mortgage rates below 4%, let's hope the positive Dallas home sales trend even picks up some steam!

Below is a comparison of DFW home sales that occurred from July 5, 2011 through October 5, 2011 versus a year ago. Statistics are from the North Texas Real Estate Information System (NTREIS).

Dallas homes sold in the $100,000 to $150,000 range are up 19% in 2011.
Dallas homes sold in the $150,000 to $200,000 range are up 18% in 2011.
Dallas homes sold in the $200,000 to $275,000 range are up 16% in 2011.
Dallas homes sold in the $275,000 to $350,000 range are up 12% in 2011.
Dallas homes sold in the $350,000 to $500,000 range are up 5% in 2011.
Dallas homes sold in the $500,000 to $750,000 range are up 27% in 2011.
Dallas homes sold in the $750,000 to $1,000,000 range are down 11% in 2011.
Dallas homes sold in the $1,000,000 and up range are down 14% versus 2010.

If you have a home to sell priced below $750,000, the numbers and trend appear to be moving in your favor!

To find out what your home is worth, contact me for a free no-obligation analysis at 214.690.9682, or email troycorman@t2realestate.com.

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.
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