REALTOR®
Do you make an offer with the Listing Agent? Are you being represented?
Dan Wood, makes your family's interests his top--and only--priority
If you decide to make an offer with the listing agent, the agent will convey offers and counteroffers back and forth, but won't provide opinions to one party or the other on how "negotiable" the other party. In addition, they will answer questions, explain things as the transaction progresses, but will NOT make suggestions or give advice about whether getting inspections is a good idea, which boxes to check in the contract to make to for your advantage, how many days you'll need for the option period, financing, closing dates - and so on - typically they won't be your advocate or the advocate of the seller, but understand the seller is the person that hired them... The listing agent may also disclose that they are acting just for the seller, then they are the advocate of the seller -- and you are on your own with really no advice... Does that sound right to you? This could be a real problem for you, keep reading until you get to the part about "procuring cause".
Maybe you're calling into me right now on a home I'm selling? If so, I would be happy to show you the home you called on.
Zillow, Realtor.com and others like it, are not a showing service
You may have made contact with me through Zillow, by wanting to see XYZ home and zillow connected you to me, in order to setup a time to view XYZ home that is listed for sale by another agent, whom is representing the seller. These websites sell buyer leads to multiple real estate brokers and agents. In fact, this is a major portion of business for many of these websites. So much so, that some focus on the lead referral sales more so than working directly with the buyer.
When I take a call from these services, I do not know what day or time, you the buyer, wants to see the house, until the call is answered live. Often I am able to get into the home at the desired time, but not every time.
Plus chances are, you are looking out on your own and you do not understand how most realtors get paid, but just want to get into the XYZ house to see it. I feel your pain and understand your frustrations.
Because you are not being represented, I also understand that chances are you’ll most likely find something about the home that doesn’t meet your criteria. Maybe it's the price, size, or layout. In the event that it’s the perfect home for you and you want to write up an offer, but you want FULL Representation: is the delima and the reason for this website.
Understand that I only advertise this website to buyers that are not currently represented. Because of the nature of this website, I am confident enough to not only create it, but stand behind everything I say. So please call me and let's take a look at any home -one of my listings or another listing agent's, for sale by owners, new construction, foreclosures, short sales, land, commercial, barndominiums, you name it... I would love to meet you and show you any that is for sale and I've even ended up showing and representing buyers on real estate that wasn't for sale.
Let's say, I've always loved XYZ house, I'll see if they want to sell it and try to arrange that too.
But Dan, I don't want to waste your time, is it OK if I call the listing agent, whom is actually representing the seller, to see the home and then call you to represent me, advice me, help me write an offer, and help me negotiate for the best possible deal?
Absolutely not!
In Texas, we as Realtors have a thing called procuring cause. Which, to put it in a nutshell, what Realtor caused the initial interest in the subject property you may be interested in. So, if you are shown the home of your dreams by the listing agent and want me to represent you, I may not be able to help you. If your thinking, oh no -this is happening to me.... All is not lost.
As long as I disclose to the listing agent the situation and they are okay with it, I may still be able to represent you. I will however, in some cases have to give up a significant portion of the commission I would have received if you were to allow me to show you the home in the first place. The flip side is unethical and I will not do it. What I mean is, to not disclose the situation to the listing agent and hope for the best. The reason why is simple, I first of all do not believe in taking away another agents income, which is what I would be doing. (remember other agents may have no problem with dual agency and some prefer it- and will fight for it in realtor court) And second, no one in their right mind would like to go to arbitration (which is basically realtor court). Let's make life simple for the both of us and everyone involved when it comes to money and be transparent about it. You have to understand that in most cases, the listing agent of the home that you are interested in is representing the seller 100% and if you end up writing an offer with the seller's agent, the seller's agent is going to make 100% of the commissions earned, which is typically 6%. So understanding how we get paid is extremely important. Keep reading and I'll explain it more in detail.
Also instead of scheduling 5 homes with 5 different people, why not have me schedule all of them for one afternoon for you. We can go see any kind of real estate you can imagine. I can help you purchase a home from a for sale by owner, a builder, a regular seller that has a home for sale on the market, a person you might know who's thinking about selling or any home or piece of real estate you might have a question for or be interested in. I can help you.
Dan, has any of these things ever happened to you, & if they did were you paid the commission you earned because you had the procuring cause?
Yes and Yes! Which is the exact reason you are reading this entire page. Everyday, I receive calls , not only about the homes I have listed for sale (whom sellers I am representing) and from buyers who are questioning various markets. You may have noticed, that in every call I will for sure ask one question: "Are you currently working with a Realtor"? Here's the reason, if you are working with a Realtor, that Realtor should have no problem showing you as many homes as it takes to find the right fit and you need to stick with them until you find your dream home. If not, they may not be the right Realtor for you. It takes me way less time to show you homes than to take a Realtor or Builder to arbitration to fight for the commission I've earned through procuring cause, so please let me know what you want to see and I'll set up a showing for you. If I am out of town or sick, I work with an entire team of showing agents that work with me to show property for me and I have to tell you it is not a big deal to do so. I have been selling real estate since 2004 and worked with several brokers over the years, but the one I am with now provides excellent support, especially with support agents to show our buyers homes.
Why do I need an Agent?
First and foremost, you need an agent who is looking out for you. Someone who knows real estate and how to properly put a deal together, keeping your specific needs at the front of mind, with all the correct players to make it to the finish line. Not someone who will check boxes in contracts that could cost you more money. Chances could be that, one of the homes you might be interested in may also be either already negotiating an offer or under contract with a qualified buyer that already has a Buyer’s Agent. This market is always changing. The listing agent may be fishing you for a backup offer for the seller! Remember, if the listing agent writes the initial offer, then the listing agent gets both sides or ALL of the commission that the seller had agreed to pay, typically 6% total. Most of the time, you won't be saving anything by using them. More importantly, why are you choosing to not be fully represented, by doing so?
Did you know that one checkbox marked in a contract can literally cost you, yes YOU thousands of $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$... (TRUE STORY) A very, very sad story for someone who could have save a lot of money and the inspiration to put all this on one page...
Plus the searches I will setup for you will include Foreclosures, Short Sales, New Construction, and of course used or resale homes. I can setup searches for land also or anything real estate. Residential and or Commercial, whatever your needs may be.
What if I find a New Construction House?
Every builder has a sales rep, but that sales rep, protects the builders interests, not the buyers. When you go into the model home, they will always ask you to register. If you register and NOT put my information on the registration card, I may not be able to represent you.
Additionally, builders freely offer to pay buyers agents commissions and some offer bonuses. Also, by not using a realtor you are not going to save any additional monies. Instead you won't be represented at all on the largest purchase of your life likely and you'll be tied into a contract that is completely written to protect the builder. Almost every new construction house has issues starting from the contracts they are written on all the way to multiple inspections which lead to a solid built house. By using a RENE REALTOR® to represent you, you are protected from day one until the home is completed and all the way to closing and beyond. This by far is the biggest WOW moment I have had as a real estate agent, when researching brand new home sales. I can't even tell you how many times I see when a new home listing sells without a agent and even sometimes with a agent, but either paid full price or near it. Then in the same search see other new homes that had a agent representing the buyer with way, way, way lower sales prices from the original asking prices. So, before you decide, let me research the sales in your new neighborhood and represent you on your purchase. I have had specific, and extensive training in negotiating and am a certified negotiator, with RENE, or Real Estate Negotiation Expert.
What if I find a house online?
Absolutely, this happens all the time and even more so these days with digital life. Just let me know and I will research it for you. While doing so, I'll have your interests in mind. If I find anything out, such as multiple offers, it's in contract, or it is available, and why are they selling and so on.
Also, email you all of the documents related to the house like the seller's disclosure, survey, list of upgrades, offer instructions, utility averages, and more. The darkside of this conversation happens when I find out that whatever house you've found online, is actually a scammer trying to get you to wire them money. This is another true story that I have encountered while protecting a buyer. Typically these are found as a for sale by owner online, and it turn out typically that the actual property was not for sale at all and this person pretending to be the owner was/is scamming people by collecting money through multiple ways... Yet one more reason to let me help you and protect you from all of this non-sense happening in the world today.
So what is it? Why are you not calling me first to represent you in what could be the largest purchase you've made in a long, long, long time... Typically it comes down to money... Is it the commission I earn? Is that what your trying to save by going directly to the listing agent? Well, first off please think about it differently. The seller and Listing broker have signed agreement already and typically that spells out that if the listing agent works with the buyer they get the full commission and the buyer gets ZERO advice.
If not anything at all, my negotiation skills and personal experience will benefit you many times beyond anything you will save by not using me. Anyways all most of the time, there are two agents involved, not one...
Both agents typically make 3% of the sales price. That equals a 6% of sales price fee to the seller.
Almost always, and the majority of the time the seller pays all or most of that commission. Yes it's true, I typically make 3% of the sales price but almost always the seller pays all of that commission.
From that 3% I have a split with my broker and from there I have taxes and insurance. I am considered a self employed contractor so the tax implications are different also... All I'm saying is the 3% you think you'll be saving by using the listing agent probably will go directly to the listing agent who will now make 6% or worse be washed out in the contract and certainly missed by expert negotiation strategies. When you're represented well you aren't at risk for any loss.
So what does this mean for you? Basically you'll owe me little or nothing and the majority of the time nothing. Plus, I give you complete representation so you don't get __________! I seen and have personally experienced all kinds of situations regarding the sale of real estate of various types, condition and so forth. Yes, it's true as a buyer -every once and awhile we will run into a listing that will have fees associated for the buyer, but most of the time not. An example would be a home that is being sold through an auction with buyer fees or a home that pays the selling agent less than 3%. In either case, I just fully let you know about it upfront. Once we find the right home, I can share with you other sales in the neighborhood, my opinion on the list price, how much I think they will come down or what to do in a multiple offer situation, negotiate your offer, help you with setting up inspections, and help you through the maze also known as the closing process.
You won’t have to waste anymore gas, pulling flyers of homes that don’t meet your criteria, and searching online on websites that are not updated live. I’ve seen listings on various websites that were still up for sale and SEVEN years old! True story.
Finding your home is my passion, but really I just want to help you! Look at my testimonials, I will go above and beyond for you. When you choose me to represent you I will represent you so that your best interests are always my major concern.
I will do everything possible to negotiate the best deal for you, if you use me as your exclusive Buyer’s Agent & I assure you I will Create a Client for Life!
I know how to tweak the offer to benefit you in every possible angle and can explain every detail in the contract paperwork.
I will not only show you any home, pre-existing homes condos, town-homes, duplex properties, multi-family properties and even new construction homes, but I will help you understand market trends for the subdivision your interested in and how could affect you in the future, if you were to sell later on. You need Representation in Texas! I can help you through the closing process until it’s your house!
Stop wasting your time, effort, and gas! Call me today, I want to help! Take a moment to see what I can offer you.
Most real estate transactions go fine, but almost every one has a challenge or two. These challenges are often routine, but sometimes can be very complex. One party may come out on top in a dispute and the other may feel that they did not. When there is only one agent, the buyer may sometimes feel that the agent took the seller's side in a dispute. Often the criticism is not merited, but human nature being what it is - it happens. In the end, make an informed decision. If you are considering making an offer directly to the listing agent, ask questions.
What are you giving up by not having your own agent?
What will you gain by presenting an offer via the listing agent?
When you get your answers, make your decision on what you want to do.When you make an offer directly with the listing agent, the agent will disclose the possible working relationships that exist - whether they are going to represent both you and the seller, or just represent the seller.
Representing BOTH sides is a slippery slope to be on and if you choose to do that, you will end up signing a intermediary relationship notice document. That document basically says that you are not getting any advice.. Yes, there will be a document you sign called an "agency disclosure" or "intermediary relationship notice" that spells out the relationship. When representing both sides, an ethical agent becomes more of a transaction facilitator or perhaps a "dual" agent, depending on what state you are in. In effect, they are not an actual advocate of either party but mostly an information provider and communication conduit. For argument's sake, suppose you see a property that is "just perfect" and you don't have an agent yet? Do you make an offer with the listing agent?
Well, most deals have two agents involved. The listing agent markets the house and represents the seller. The selling agent (also referred to as the buying agent in some states -I know it's confusing) represents the buyer. The point is there are typically TWO agents involved.
The seller pays the real estate commissions to both agents. When you make an offer directly to the listing agent all the commission goes to them, since there is only one agent involved instead of two - so things work a little differently. That difference depends on the bottom line for everyone involved. Remember, you have closing costs as a buyer and the seller has closing costs. Typically the largest part of the SELLER'S closing costs are the commissions being paid to the real estate brokers.
The biggest piece to the puzzle is finding out if your best interests are involved or not involved. Once you know you're well represented it doesn't matter what property is for sale, you know you're best interests are the most important part of the entire transaction.
Don't worry, you are in good hands. I have been selling real estate since 2004 and have been in and around the DFW metro-plex since 1973.
Additionally, I have been awarded the Real Estate Negotiation Expert (RENE) certification, the premier negotiation credential in the country. The RENE is conferred by the Real Estate Business Institute (REBI) and is an official certification of the National Association of REALTORS®. I have joined an elite group of real estate professionals from around the world who have earned the RENE certification. All were required to successfully complete comprehensive coursework in negotiation and subscribe to the REALTOR® Code of Ethics.
Are you wanting to look at homes before you have been qualified by a mortgage professional?
Some sellers will actually require a qualification letter or even proof of funds for cash buyers, before we are allowed to view the home that is publicly for sale... So, it's vital that you are qualified or pre qualified for a mortgage, up front. As in right now... If you are not qualified or have not been recently qualified, please get with your mortgage professional immediately to assess your financial situation.
I only help you find the home, not the loan. But I can recommend some great lenders, once I know more about your situation and needs. I am affiliated with Great Western Home Loans, in Plano. Specifically, I work mostly with Kathy Glidwell, a senior loan officer. You can apply with her by clicking this link.
Typical closing costs for buyers range from 2-5 or more % of the total home purchase price and additionally range depending on the loan type you decide to use. Keep in mind origination fees, appraisal, notary fees, recording fees, and property taxes, expense of a new survey, home owners insurance, and mortgage insurance premiums and let's not forget inspections...
You will need typically 1% or more, for earnest money to deposit to the title company, plus .1% or more, of the total home purchase price for the option fee, which will allow you to inspect the home with typically a 7-10 day period all within 48 hours of the acceptance of the offer.
So keep in mind the option period allows you to change your mind for zero reason and totally terminate the contract and as long as you do it within that option period time window, you will be refunded back your earnest money. You heard me, you don't need a reason to terminate, as long as you do it within your option period...
Also understand that there is a lot of various things going on at the same time and it takes an experienced agent to have control of whatever is going on that can be controlled.
Additionally, we may or may not be able to use an existing survey. So if we cannot use the old survey, the new survey expense is typcially the buyers expense, because it's required by the lender, whom the buyer is using. Cash buyers don't have to order a survey at all, if they don't want to pay for it.
Plus you will end up paying for an appraisal with through your mortgage company, unless you're paying cash and even then you may elect to purchase an appraisal depending on the circumstances.
Should you decide to move forward past the option period and buy the home, both the option and earnest money will be credited back to you at closing. If you decide to terminate the contract past the option period, the earnest money will be up for grabs by the seller is usually the case, but not in every case. If the earnest money cannot be negotiated to be returned to either or both parties, it eventually ends up going to the great state of Texas approximately up to four years later...
The picture above is the basic flow of your future typical 30 day transaction.
Depending on what type of financing you have chosen will determine several factors in regards to potential lender required repairs, which can delay closing.
Of course everyone loves CASH, but if you aren't a cash buyer you will be presenting a loan type to the seller within your offer. Some are more appealing than others.
Conventional loans are the easiest and offer a lot of ways to get around a repair, but not in every case. The appraiser could still demand xyz to be a lender required repair.
FHA loans have more requirements than Conventional loans and if the sales prices is equal in a multiple offer situation and the seller is faced with deciding over a FHA or a Conventional loan buyer, typically the conventional loan buyer would be putting down more down payment at closing, which makes their offer appear stronger to the seller, and the conventional loan has less repair requirements, which comes up during the inspection period, but also during the appraisal period. If you are interested in a flipped house, FHA has a 90 day rule that restricts FHA loan buyers from purchasing a flipped home for until 90 days has passed from the date of purchase.
Comparing VA and FHA loans, VA loans have even stricter requirements and might not be as attractive as FHA or Conventional loans to most sellers. Moreover, VA buyers usually do not offer a down payment, making it difficult to compete with other offers that offer larger down payments.
Can you ask the seller to pay for your closing costs?
YES, it's a possibility. Keep in mind, some sellers will not want to do this and think that you are not as qualified as another buyer not asking for this. Depending on your loan and your lender there are limits on how much you are able to use. If you are in contract and we put too much $ in the field for your closing costs, that the seller is paying for -for you...., anything left over goes back to the seller...
So it's super important that we are able to communicate with your loan officer and get a solid number, upfront. I can NOT guess what your closing costs are. Changing this later in the contract timeline is also a risk, in that the seller does not have to agree to change anything, once the initial contract has been signed by all parties and especially if they are going to recieve more money by not cooperating.
OPEN HOUSES
When attending open houses, it's important to keep in mind that often there are junior agents hosting them, often eager to work with potential un-represented buyers. They may and will likely- ask a lot of questions, but there's an easy way to let them know that you're already working with an agent - just mention that you're working with me!
If you're asked to sign in, simply write "contact my agent" in the phone number and email sections. Rest assured that all agents have access to an online directory where they can easily find my contact information.
You may come across homes with a "Coming Soon" status. While these homes can go on the market at any time, showings are not allowed until the status is changed to "Active" according to MLS board rules. They cannot stay in coming soon status for forever, is the deal.
It's important to note that "Coming Soon" homes can stay in that status for up to these 14 to 30 consecutive days, depending on what MLS the listing agent belongs to, before they disappear or go into "Active" status.
If a "Coming Soon" home disappears from the MLS, I will reach out to the listing agent to find out what's going on with it, because they are not allowed to show the home, but somehow some of these go into contract before we are allowed to show them.
This is the new world of real estate sales.
THE APPRAISAL
Understanding the Importance of Appraisals in the Home Buying Process
When it comes to buying a home, it's essential that buyers comprehend the significance of appraisals. Not only do they shield the mortgage company by ensuring that the property's value matches the loan amount, but they also safeguard the buyer's investment. If the appraisal comes in lower than the sale price, the mortgage company may not lend the entire amount, jeopardizing the transaction.
Of course, we can ask the seller to lower the sales price, but they do not have to agree to do so. If they do, they may not be willing to lower it 100%, but some other %, meaning you as the buyer will need to come up with the difference in additional down payment.
Buyers should keep in mind that the appraisal is just one component of the home buying process and another typical expense that they will be responsible for. Other vital factors, such as the home inspection and title search, should not be overlooked either. Working with a knowledgeable real estate agent who can guide you through every step of the process is critical to safeguarding your interests.
It's crucial to note that appraisals are typically ordered right after the inspection and often occur in the 30 day window on days 18-22 to only await their completion in a completed appraisal report. In some cases, the results may not be available until late in the 30-day process, which can lead to closing delays.
I do not order the appraisal, it is typically ordered by your mortgage professional.
Additionally, to ensure fairness, Texas's appraisal process involves random selection of appraisal samples whenever possible. For instance, lenders can randomly choose from a pool of Texas Certified Residential Home appraisers.
CLOSING DISCLOSURE
In Texas, buyers must sign the mortgage company's closing disclosure three days before closing. The closing disclosure details every single dollar that is allocated to you. Failure sign the Closing Disclosure will result in a delay in the closing date. Therefore, it's crucial and I'm trying to stress to you, that your real estate agent should have a good relationship with your mortgage professional to ensure a smooth process and keep you on track with all the necessary paperwork.
In summary, the appraisal is a critical component of the home buying process. It benefits both parties by ensuring that the property is worth the amount being borrowed. If the appraisal comes in lower than the expected value, there are options available to negotiate a mutually acceptable solution. However, working with a trusted real estate professional can help ensure a smooth and successful home buying experience.
Exploring the Pros and Cons of Home Warranties aka RESIDENTIAL SERVICE CONTRACTS
Home warranties can be a great option, but there are several factors to consider. For instance, if you're bidding in a multiple offer situation, asking the seller to pay for a year's worth of home warranty could mean the difference between getting the house and not getting the house.
Alternatively, you can purchase a home warranty at closing or after closing.
While home warranties cover big-ticket items like HVAC systems, however there are several items that these companies don't cover or exclude due to red tape. The cost of home warranties varies, with most starting at $550 and going up to $700 and more even, per year, depending on what options you add.
It's important to note that these costs typically increase each and every year and depending on the age and condition of the covered items, it may not make sense to continue or even start coverage with a home warranty, in the first place.
Ultimately, deciding whether or not to initially begin to invest in a home warranty can be challenging, and depends on the specific components of the home you'll be purchasing.
Exploring Home Search Options: MLS and Foreclosures vs Short Sales
After I have the criteria you require, I will create a home search in the MLS, which includes both foreclosures and short sales + normal single family homes and new construction.
If you want to look at commercial or multi-family, like duplex's and full Apartment complex's, I can do those too. I just need to understand your needs. Short sales and foreclosures happen in every market.
It's important to understand that short sales are essentially pre-foreclosures. The bank that holds the loan willing to accept a loss, break even, or in the event that there would be a profit, it would not qualify for a short sale...
However, every sale is different, and every asset manager representing the bank operates differently.
Short sale transactions are often lengthy and can take a while to close. We are at the mercy of the asset manager, who is assisting the bank, and also the listing agent, who the seller has chosen and hired to sell the home. If the listing agent is not well-versed in short sales, response times can be slower typically due to the tasks required by the asset manager.
The seller, represented by the listing agent, and the asset manager, primarily work together to ensure that the seller is qualified for a short sale transaction (in other words they really cannot pay for the mortgage and haven't for several months and have submitted all of the necessary financial documents to proof it to the bank -which this is also sometimes a delay in the response time) and that every document is included in any offers from the agents and the buyers they are representing.
Once the bank accepts the offer, it's up to the seller to turn on all utilities for inspections. Sometimes, depending on the seller's cooperation, this can also delay the closing.
Keep in mind I have a background in foreclosures and previously was on a foreclosure team during the market crash in 2008 through 2012. For more insight go to www.theforeclosureman.com.
REO is known as real estate owned. In other words, it's a foreclosure...
Who pay's the real estate agent that is showing me homes?
Let's talk about the money side of things, specifically with buying a home in Texas. Usually, buyers don't have to pay commissions to the buyer's agent or broker. However, things are changing, and not in a good way.
The above graphic shows what a typical transaction is like for the state of Texas. So yes, most of the time the buyer does NOT have to pay any commissions to the buyers agent and or broker, but that is slowly changing and more so every day.
So keep that in mind because my industry is literally changing as we speak...
In our state, typically and since the dawn of time, the seller typically and most of the time -pays the Listing broker 6% and the listing broker offers other brokers 3% of the total 6%.
From there, the listing broker shares half of the 6% with the buyer's broker. Then each side splits a portion with their agent and these vary widely depending on each broker.
However, even more now these days and especially since Covid, sometimes buyers brokers are now offered less than the typical 3%...
Yes.
As, if that wasn't enough of an insult, some listings are offering $0, or $1 and even as low as 1%.
Yes I said $0 and 1%... I can not do what I do for 1%.
So after the 50th house I've shown you, you may decide on a house that does not offer to pay my broker a commission. Keep in mind, my broker then typically pays me, but only after they are paid...
Yes this is a real possibility.
As a buyers agent, I am not being paid ANYTHING..., at all until you buy a house. It's only after closing that I earn a paycheck for all of the calls, endless negotiating, and homes that I have show n you.
However, I can not work for free, as you can imagine. So in order for both of us to be working together, we need to agree in writing fairly quickly, that I will be earning 3% total for my working through the entire transaction with you. We do this with a document called a buyer representation agreement that you and I will both sign.
This is a requirement for my broker and it gives us both peace of mind, knowing that we are truly working together and understand your end goals. Truly, I can not talk to you about real estate or in a way that provides us both the kind of relationship that we actually need, unless we are in contract together with a buyer representation agreement. I am not an attorney, but it is a similar relationship in that most of my value is in knowledge and advice through negotiations.
Any realtor can show you homes, but you need someone that can advise you properly, not just open doors.
The agreement basically spells out that, in the event that the seller does not pay my broker 3%, which is publicly displayed in every listing online, that you the buyer will be covering the difference, at closing.
Don't worry, lol... You will know this the moment we are looking or even talking about any home that is for sale, that is not offering my broker 3% and I'll be telling you what they are offering, and will gladly show you where this information is located on various websites like zillow and realtor.com.
Many of these homes not offering 3% compensation to the buyers broker, have more days on market, simply because they are not offering buyers agents a decent salary and yes it's true there are some that are only offering 1% and even $0.
Offering any broker 1% or less is really insulting and is used as a way to try and cheat the system, as many agents are too scared to talk about commissions. I would be better off in another industry if 1% or even 2% was standard. I work too hard to take anything less that 3% is the truth. I answer my phone, return calls, show property when you want to see it, and that is just the start. The real work is using the knowledge I have in putting the best deals together and then negotiating on your behalf.
Although, as being a realtor, we all as agents agreed to have ethics and such, but there are always some agents that will simply refuse to not show the low or no commission paying home or suggest other homes that are more suitable to the buyer and the agent, but as a realtor we have all agreed to keep our clients best interests in mind... So, to do that, I have to be transparent on all parts of every aspect of the transaction, including what I'm going to be paid, which is typically 3% of the total sales price.
My approach is way more transparent to all parties, including the listing agent and especially the seller. Should we end up with a seller, not offering 3%, I'll do everything in my power to negotiate it so that the seller does pay my broker 3% and you will be fully aware of everything and sign it all, in writing to the seller.
No agents and or No Commissions offered from for sale by owners are even easier to me.
Allow me to explain...
When I present your offer to a for sale by owner, I will in reality be presenting 2 offers. A lower offer, with you the buyer paying my commissions, and a higher offer with the seller paying my commissions.
Both offers equal out to the same offer, essentially.
Most of the time, I am able to negotiate with the seller in that they are the party that pays my commission, simply because we have a prologated document that easily explains everything to the seller in how the commission is going to be paid and how this will benefit the buyer by not forcing the buyer to pay additional monies at closing and also affecting credit through the mortgage qualification process. Obviously, the seller is pleased when the sale goes through and that is what everyone wants.
Please understand that I pay daily to do what I do, so I simply can not work with you unless we agree to work together in writing. What I mean is no one is paying me an hourly wage or anything at all, to show you houses and I pay my broker on every single closing I have.
Technically, I am considered a self employed contractor.
Not to mention my time on the phone not just with you but calls to listing agents representing sellers, on every home you have interest in, on the road with calls and spending $ on gas and drive time, and negotiating deals for you with other brokers, listing agents, new construction builders and directly with for sale by owners.
Additionally, I'm considered a self employed contractor, so my taxes are worked out differently than most people. I have to pay yearly realtor MLS board dues, yearly State and National Realtor Association dues, and my health insurance expenses are totally outrageous for the quality of insurance that the corporate world offers their employees. Let's not forget all of the expenses I have for online marketing, virtual tours, print and postage too...
Let's face it, there is a lot of expense to do what I do. So please don't take it the wrong way, but I have to know you are 100% qualified and are willing to work with me in a written, signed buyer representation agreement.
Buyer Expectations regarding looking at homes
Typically as you can see with the graphic below. You may have a full list of 1,2,9 or 12 homes you want to see tomorrow, but each of them have their own challenges regarding scheduling a time to get into each one.
Most of the time, each owner will really want a 24 hour notice... Yes, I've even run into completely vacant homes, that still require 24 hr notice... So please try not to send me a list Saturday night for homes you want to see Sunday afternoon.
I have been selling real estate since 2004, but you may be surprised to discover that I actually go out on Friday and Saturday nights typically. Often, on Fridays, I receive calls from the vast amount of buyers and people I know, wanting to see if I can show them a home. I try my best to have my weekend planned out by Friday afternoon. Most of the time, the new listings come up throughout that week and there is still the rare occasion of a new one starting on Saturday or Sunday, but it's rare.
All I'm saying is, I really do try to have my weekends pre-planned for the buyers and sellers I am in contract with and working for. Not to say you can't call me Saturday and we go look at several homes on Saturday. It happens all the time, but if we are truley working together, I try to book and plan out my weekends in advance, if it's possible.
So, please let's try to plan our weekend out as I have other clients and additionally have a life too, as you can imagine.
I would say that we can look at as many homes as you want, but for the most part, if we look past 4 or 5, they start to blend together. I just need to block out my times for you and most of the times, my weekends are the busiest.
Many homes will have open houses for the first or second weekends that they are on the market. I have gone to show open house homes, with my buyers and have had many buyers that look at open houses with out me.
Additionally, some homes such as Opendoor are open to the public and anyone can get into the home through the Opendoor app. Other brokers are also using this technology and it's on a case by case basis, but I've had buyers look at Opendoor homes by themselves and I've also shown many of these type listing personally too.
The red on the graphic above, is BLOCKED.
Typically this is another showing, but it could also be for the morning or evenings, to be blocked when the Seller is there using the home to actually live in. Some listing agents block other showings while there is another showing going on.
If we have a full list of homes to see, but each home only has a 45 min window and we are driving all over town, can be challenging, but not impossible.
Most of the time we are having to setup schedualing with one of the following:
2 of the large showing companies are:
Broker Bay Showing Service
Showingtime / CSS - Showing Service
Or
Directly with Home Owner -occupied or vacant
Directly with Builder
Directly through the Listing broker
Each have different challenges... Some listings will prevent me from even seeing the showing instructions, until the actual time of the approval. So we could be approved for a showing, but have to wait to get into the home if we are early... I can't even see the instructions until the time window is reality.
The issue is, some homes have alarms or animal particulars and I need those instructions, prior to going into the home.
Feedback Request Calls, Texts, and Emails
Providing Feedback as Your Buyer's Agent
After every single home we view.
As a buyer's agent, I often receive calls from listing agents inquiring about your interest in making an offer while I'm still inside the home. However, this is not always the case. Different agents have different approaches, and it often depends on the activity surrounding the XYZ property. If the listing agent is already working on a good offer, they may not prioritize feedback. On the other hand, some agents have a dedicated person who continuously contacts me for feedback through various channels. Regardless, I always aim to provide feedback when it's in your best interest. It can be a way to initiate future negotiations with the listing agent and seller, who typically have direct access to our feedback.
It's critical to keep in mind that if I, as your buyer's agent, don't provide feedback, some agents will reach out to me persistently. If it’s not the listing agent directly, they sometimes have a dedicated person whose sole objective is to obtain your feedback, and they won't stop calling, texting, and emailing me until they hear something back. This can happen on an almost daily basis and is essential for you to comprehend, as I represent you fully.
Understanding the Importance of Buyer's Agent Feedback
It's critical to keep in mind that if I, as your buyer's agent, don't provide feedback, some agents will reach out to me persistently. If it’s not the listing agent directly, they sometimes have a dedicated person whose sole objective is to obtain your feedback, and they won't stop calling, texting, and emailing me until they hear something back. This can happen on an almost daily basis and is essential for you to comprehend, as I represent you fully.
If you're not sold on the house, no worries. We'll simply inform the seller that you're not interested. However, they may ask for the main reason, as price can often be a factor when financing is involved.
On the other hand, if you're interested, things get interesting. Depending on the house and whether there are other offers, we may need to be strategic in providing feedback.
If you're searching for a home outside of my provided listings I am currently sending you, that's perfectly fine. But keep in mind the following status updates to distinguish which properties are already contracted and which ones are not:
1. Active: The property is available for purchase. Anyone can buy it, typically.
2. Active Option: Another buyer has already made an offer that the seller has accepted and all parties have signed a contract, and the seller is unlikely to show the property to additional buyers.
3. Coming Soon: No showings are currently allowed, as in our MLS board prevents showings while a home is in this status.
4. Active Kick Out: You can kick out the typically contingent 1st buyer. If the 1st buyer can qualify, they can waive their contingency and proceed to buy the house you want. Otherwise, they are forced to terminate, putting you in the 1st position.
5. Canceled: The seller fired the listing agent, and the house is not for sale nor can it be shown.
6. Expired: The contract between the listing agent and the seller has expired, and the house is now off the market and cannot be shown.
7. Pending: Another buyer is past the option period and has made an offer.
8. Hold: The house has temporarily been taken off the market for various reasons, like family in town or the seller is sick and does not want any showings.
9. Withdrawn: The seller and the listing agent have both agreed to remove the listing from being up for sale. If the seller does want to put the house back on the market, they have agreed to go back with the same real estate broker. This status is mainly used for listing agents that do not want other agents bothering the seller to acquire the listing for sale.
Home Buying $$$ Typically Required
Lender closing costs = Because of the wide variety of financial data that your profile consists of, it is nearly impossible for me to know exactly what the total fees are going to be without talking directly with your mortgage professional.
Earnest Money - typically 1% of the sale price
Option Fee - typically .1% of the sales price
Both the Earnest and Option need to basically be deposited with the title company within 48 hours of the date that everyone signs the offer, the effective date.
Inspections are due at the time of the inspection.
-Current Vendors
TexInspec
Jeff Jordan
Chesley Graham
and...
Survey (sometimes due outside of closing, sometimes due on the day of closing and or rolled into your loan)
Appraisal (sometimes due outside of closing, sometimes due on the day of closing and or rolled into your loan)
HOA (due at closing and sometimes rolled into your loan) Many HOA's have transfer fees dedicated both the buyer moving out of the HOA and additionally, the buyer for moving into the HOA. Isn't that nice...
DOWN PAYMENT - Due at closing and determined with your mortgage professional
Conventional loan - 5% or more
FHA loan - 3.5% or more
VA loan 0% or more
If you choose to move past the option period and purchase the home, both the earnest money and option monies you deposited at the beginning of the contract are credited back to you at closing. Keep in mind also, that you can initially in your offer, ask the seller to pay for a specific dollar amount that will go towards your closing costs, if not all of your closing costs. It's important that your mortgage professional gives us the correct number to use, as anything that is left over will go back to the seller, if we are unable to get the seller to alter the already agreed on contract.
Buyer Beware!!! Video Camera's & Listening Devices
When we go out to look at the homes you have interest in, keep in mind they could be recording us from the moment we walk onto the front porch.
Many times, I have represented seller's and they tell me details, they only know, due to watching and listening to buyers through their Ring doorbell cameras, and by listening to buyers through Alexa devices throughout the home.
This can become a real problem for you and also me, once negotiations start...
So, once we start walking the property, it's super important that we wait to discuss the home until after we leave, or out of sight from these devices.
What's the difference between a client and a customer?
In real estate terms, and specifically as a Realtor I can have conversations with customers and say whatever I want really, but as a client, I am required to advise you directly and guide you on every scenario on what will or will not be a benefit for you throughout the entire transaction, even if never buy anything too.
So just because you have spoken with a real estate agent, that agent may be in contract and working for another party and can say or do things to benefit their client, as long as it's ethical to do so. However, I've seen a lot in my career, which spans since 2004. I am sure you can imagine.
Let me try to explain in this graphic:
Multiple Offers and How to Win!
I have seen a ton of multiple offer situations and I can tell you that typically the highest offer always wins, but it's not aways in the end sale price. Sometimes it's how you write up the offer.
Look at the graphic below to understand:
It's not always the sales price that wins deals... It's the highest net to the seller.
Back Up Offer Strategies
A backup offer is a way to secure a contract with the seller if the initial contract with the first buyer - falls through, acknowledging the existing offer.
It can be a highly strategic move to prevent the home you lost to the first buyer going back on the market again. Also it can be valuable in competitive scenarios and is often not utilized by many inexperienced agents, as it requires the same amount of paperwork and workload, as a normal transaction, without the acknowledgement of knowing what will happen, until the first buyer either performs or not.
Here is the deal...
Option and Earnest monies are still due within 48 hours essentially, if the seller accepts your back up offer. If your contract never moves into the first position, as in the first buyer ends up buying the house, you still lose your option fee. So it's best to put something like $Small amount, you'd be willing to gamble and as low as $5 for your option fee. Keep in mind we can still request 7-10 days for the option period.
Regarding the Earnest Fee, there is two sections we would use for it, in the contract. You would still be required to deposit upfront initial earnest money with the title company, which is typically 1% or more on a normal contract, but this is not a normal contract. Just like the $Small amount option fee, you can offer a $Small amount Earnest amount in your initial offer as low as $20, but in addition you will need to agree to deposit a additional $Larger Earnest Fee amount or something more typical like the typical 1% or more, within X amount of days, which would typically be calculated specifically with the specific house and that buyer, within the amount of time for the current buyers closing, plus some extra time for you to deposit the additional $Larger Earnest money w the title company.
Showing Agents, what they are for and how to use them correctly
Within my current brokerage we have a team of specific agents that are designated as showing agents, that our entire brokerage uses to help our buyers agents show property, when the need arises.
When does the need arise with Dan Wood? Hardly ever, unless I get sick or you are wanting to look at a property that is outside my normal areas. Which my normal areas include all of DFW, so I usually will cover it, if it's here locally. However, I do work with multiple clients, at the same time. When schedules collide, I do use the help of my showing agent team to assist me and specifically my client, and that means you.
Also let's face it life happens and sometimes I need help. I am human and I too get sick, go on vacations, go on dates, go see movies and out to eat and do things with friends too. So sometimes, you may want to see a house and either already planned to look at another house with another client, or it could be that I'm planning a night out. Either way, it's just nice for both of us to know that I got us covered with specific agents and we will be able to use the showing agents, when need be.
What Stays and What Goes...
In Texas, the contract reads:
IMPROVEMENTS: The house, garage and all other fixtures and improvements attached to the above-described real property, including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas, mounts and brackets for televisions and speakers, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property attached to the above described real property.
So in Texas, the refrigerator, free standing microwave, washer, dryer and the TV may go but the TV bracket will stay. Sometimes sellers will exclude some improvements also. Sometimes the problem may arise with a seller that removes a surround sound speakers, but leave the wires. If the speakers were not excluded in the contract, they have to stay with the home.
Solar Panels and What to Expect
If the house you are buying has solar panels currently already installed, expect as the new buyer, to be able to qualify for assuming the current $ balance and additionally already agreed upon contract that the seller currently has with the XYZ solar company as you will be assuming them both. Also many times you will have to agree to use XYZ power company and or service companies to be able to use the solar panels.
Just know, we will be able to use the debt of the solar panels as a way to negotiate off of the sales price typically, but not always. If the listing agent is doing a good job, they will have discounted the asking price already by the amount of the loan still left on the solar panels, which sometimes can be substantial.
Another option is to have them removed completely and also, what party is responsible for XYZ expense that will become as result of the removal.
Everything is negotiable.
Repairs and what to expect as a buyer
In Texas, the buyer and seller go through the option period, which inspection bring up XYZ repairs. Typically the seller will agree to repair safety issues and anything that is obviously a solid repair. However the smaller repairs, they may not be willing to agree to do. All of these repair requests happen within the option period, typically.
Those repairs are spelled out in the contract:
COMPLETION OF REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs and treatments prior to the Closing Date and obtain any required permits. The repairs and treatments must be performed by persons who are licensed to provide such repairs or treatments or, if no license is required by law, are commercially engaged in the trade of providing such repairs or treatments. Seller shall: (i) provide Buyer with copies of documentation from the repair person(s) showing the scope of work and payment for the work completed; and (ii) at Seller’s expense, arrange for the transfer of any transferable warranties with respect to the repairs to Buyer at closing. If Seller fails to complete any agreed repairs prior to the Closing Date, Buyer may exercise remedies under Paragraph 15 or extend the Closing Date up to 5 days if necessary for Seller to complete repairs.
Lender Required Repairs
Depending the type of loan you are going to use, there may or may not be Lender Required Repairs. Typically, these requested repairs are after the inspection and during the appraisal that the lender has ordered.
Here is how it is written in the contract:
LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments, this contract will terminate and the earnest money will be refunded to Buyer. If the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may terminate this contract and the earnest money will be refunded to Buyer.
Flood Zones
Does your dream home back-up to water or near a creek? The best and most solid way to find out if your future home is located in a flood zone is to look it up here and also contact your future home insurance agent and verify with them upfront. I can pull up in my MLS system if it is located in a flood zone, but I can not tell you what expense the flood coverage is going to cost.
Wire Fraud
Wire Fraud is real and it's happening more and more. These scammers are at it again and this time they are trying to get your earnest money or your entire proceeds from the sale of your home too... Yes. So if you are wiring any monies to the title company, it's super important that we verify that everything is legit, by double and triple checking that everything is correct.
Insurance Companies
In Texas, it's still a normal market in regards to insurance companies, but some things are slowly changing. What I mean is, some insurance companies are completely stopping coverage completely and or keep coverage on the house but removing coverage from the roof.
Yes..., this is happening now. Meaning you couldn't buy the house WITH insurance, unless you AND the insurance company both agree to, that at your expense as the buyer repair the XYZ issues with the roof with in XYZ time frame from your insurance company, after or prior to closing.
Prior to 2024, I never had heard of this happening and I would say that typically it doesn't play out this way, but the future of insurance is always changing.
So it's wise to pick out your insurance company upfront and have them inspect the roof prior to closing and even better yet during your option period, which typically the insurance company may or may not even have someone to come out at all...
It always helps out to have a trusted roofer take a look at it too.
Deluxe Roofing 817-893-5044
Seller Temporary Lease
The seller may require a short term lease, in that they would lease back the home from you the new owner, after closing. Typically, these can range from $0 per day and beyond. Plus they can vary from 2 days to 2 weeks to 2 months, but no more than 90 day. I recommend that a deposit be included in the agreement. If the seller is still in the home past the last day, there is a hold over fee that is agreed upon, which is typically twice the daily rate.
Foreign National Residents looking to purchase or sell real estate in Texas
Yes, I can help you do either and I can tell you that there are typically tax implications for being a foreign national. Our broker advises us to recommend you contact a CPA to help guide you because this is beyond our scope of knowledge regarding specific fees that you will be required to pay.
The contract reads like this:
FEDERAL TAX REQUIREMENTS: If Seller is a "foreign person,” as defined by Internal Revenue Code and its regulations, or if Seller fails to deliver an affidavit or a certificate of non-foreign status to Buyer that Seller is not a "foreign person,” then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received in the transaction.
Farm and Ranch
Yes, I can help you with your Farm and Ranch and large land purchase and sales. Typically, these are more than 10 Acres, but can be less also. Purchasing Farm and Ranch can be a long game or long term lucrative option for your financial goals.
You may also be searching into Farm and Ranch properties in the hopes to turn them into a Residential home being built on the XYZ land conversion w the County, that they typically will have to approve of. But, yes this is a possibility, but you will want to be represented.
AG and Wildlife Exemptions can become substantial savings and a great place to park your assets while you lease out your land to secure those XYZ exemptions and as time goes on, the market shifts and land becomes less, and less, which typically pushes the land values to be a secure way to invest your money and let someone else pay for it by leasing it out with crops, cattle, wildlife, and so on, and additionally you could put a mobile home on it and rezone a small portion for residential the rest for farm and ranch and lease everything out as well. The options are kind of endless, as long as it's allowed within the county.
Maybe you are wanting start a bee farm or grow hemp, it's all going to come down to the county approving your use of the land.
Commercial
Yes, I can help you with Commercial sales and purchases also. Although I typically work with a trusted commercial agent that I am confident can help us. We work in a referral basis, as in the commercial world, most of the sales are done with entirely different systems, that I do not pay for. Not to say that the MLS services I subscribe to won't have the results you need, likely they will. However, I can tell you my referral will have way more options and knowledge regarding everything commercial.
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