Danny's Real Estate Blog

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Danny's Real Estate Blog

The Seller's Disclosure Notice is an essential part of a real estate transaction. In short, it's the condition of the home to the best of the sellers knowledge, which is signed not only by the sellers, but the buyers as well. It is to be provided to the buyer either before a contract is signed (provided on the MLS to be downloaded), or provided after the agreed upon number of days in the contract. It's best to have it provided up front, and here's why. Let's take a look at the wording first.

This part falls under Paragraph 7B, the property condition section. You'll notice there's 6 lines of wording if you haven't given the buyer the Notice up front. What does it mean? In general terms, you're giving the buyer 7 days to back out of the contract

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There's no fewer than a half dozen shows on television right now about flipping houses. Seminars pop up all over the country hosted and put on by these reality stars about how to do this, sometimes with 'other peoples money'. Well, it's not that simple. Television is notorious for showing only the glamorous sides, but not the realities. Take Flip or Flop for example. How many of these have they ever shown where the flippers lost money? Maybe one or two in all the seasons? That's not reality. A cash buying flip company admitted to our office in a meeting earlier this year they lose money on approximately 24% of their flips. So there's a few things you need to know about investing in real estate if it's something you are looking into.

Finding Flips is

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This statement is a common point of contention among buyers who haven't bought a home since the 2008 housing market crash. If you've seen the movie The Big Short, it's actually pretty accurate to how it was back then. Mortgage brokers could get paid by what kind of loan they sold, borrowers weren't being asked for income proof (hence why the exotic dancer could have five homes and a condo), and there was really no form of control on the industry. All this has changed since then, and in big ways.

Mortgage Documentation

This is the most relevant change since the crash, and one which mort people are not accustomed to. There used to be something called NINJA Loans, which stood for 'No Income No Job or Assets'. People could just walk into a bank and ask

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Every now and then I get questions I legally am not allowed to answer concerning a home, usually because of Fair Housing Laws. They usually relate to how good the schools are, whether crime is high in the area, or other things which could land me in a lot of trouble for my opinions. Death is a different story.

Disclosing a death on a property can be tricky. For starters, a seller may not actually know. If a home is a flip, and the flipper bought it at auction or out of foreclosure, there would be no seller disclosure for them to find out if there had been one or not. Secondly, it really depends on how someone dies as to whether or not it had to actually be disclosed. Straight from the Texas Property Code:

Chapter 5.008(c): 'A seller or seller's

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I can't tell you how often it happens where I have to break the bad news to someone: something they saw on TV or the internet just isn't real. I know, real shocker. But just like the clickbait articles you see online, banks and online home search websites are just misleading and often leave consumers feeling had. I'm going to share with you here a few things to be aware of if you do decide to peruse the internet for your real estate advice, which you shouldn't be doing anyways.

Mortgage Rates

Every time I walk into my bank, I see their mortgage rate advertising on the screens behind the tellers. It looks a little something like this:

While this is all fine and dandy, this doesn't tell the whole story. Banks are quick to show the lowest rates

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We all know storms are as unpredictable here in North Texas as a Cowboys football season. Tornadoes, hail, even the occasional earthquake can happen at a moments notice. So what happens if something happens to the house you're buying before you close on it? Enter the Casualty Loss paragraph of the contract.

What does this mean in layman terms? Basically, if the house you're buying is damaged or destroyed by fire before you close on it, you're not obligated to still buy it if the home is not restored to its previous condition before the closing date. Now if it's not restored due to a situation beyond the sellers control (such as insurance companies falling behind during a tornado outbreak, fire destroying the property, etc.), the buyer has a few

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Each type of mortgage is different. Not only are they different in the down payment amount, but also different in the Mortgage Insurance Premiums, credit score requirements, and how appraisers do their jobs. They also have different maximums you're allowed to borrow. Since these numbers change every year, here's what's allowed in 2017. Keep in mind this is the amount borrowed, not necessarily the contract price.

FHA

Collin County, Dallas County, Denton County, Parker County, Tarrant County - $362,250
Cooke County - $275,665

Conventional and VA

$424,100

Jumbo

Anything over $424,100

Remember, these are the basic loans. There's different standards for rehab loans, USDA (based on income), doctor/lawyer/professional loans, etc. Your

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I hear this on just about every single listing appointment I have: 'I think my house is worth X'. My first question following is always 'Why do you think it's worth that?'. The immediate answer is usually 'I've done my own research, and that's what I think it's worth.' That's when I know how the rest of this appointment is going to play out, and just another reason why Realtors are necessary even in an age of so much information.

Texas is a non-disclosure State. If you don't know what that is, pay attention.

The final amount a home sells for is not disclosed to third party websites in Texas. No matter how much you want to believe the appraisal district, tax rolls, or the dreaded unreliable Zillow, it's something you are unable to find on the

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There are reasons why contingent offers can sometimes be less appealing than offers which may not be as much money. A contingent offer comes with a whole new set of 'outs' for the buyer, and potential headaches for the seller. As I mentioned previously, moving the closing date can come at a cost, so having the sale of a house tied to the sale of another can cause issues.

The Domino Effect isn't some new theory. Everyone knows it. I had a situation in late 2016 where the domino effect came into play, and it wasn't good. My clients were selling a home and purchasing an inventory new construction home. Closing dates were set. This is where it gets hairy, so pay attention. The buyer of my clients home also had a house to sell. Their home was under

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If you've thought about buying a home, but maybe didn't have all the money you'd need to do so, there may be an alternative for you. There are down payment assistance grants available if you meet certain criteria, as well as special programs for Texas Heroes. This is all through the Texas State Affordable Housing Corporation. You do have to be eligible for these programs, and not all will qualify.

Loans and Down Payment Assistance

TSAHC provides low, fixed-rate mortgage loans and home down payment assistance grants to help qualified home buyers purchase a home. These loans and home down payment assistance programs are available anywhere in Texas through a network of lenders and provide the following benefits:

  • A 30-year fixed interest rate
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