Now, first let me say, I’m not a huge fan of all these different website that provide a list of homes for sale. Often, I find completely out of date information (homes currently for sale than in fact were sold months ago), wrong pricing, etc….

A few days ago I was surfing different websites that provide a list of homes for sale (listing farms): Realtor.com, Zillow, Trulia, etc…. I was shocked at what I discovered on Zillow.com!

Before I get to why I wasn’t pleased (for my client), I will say that in the past I’ve had to deal with people who received bad information obtained from these “listing farms”. It’s no fun when you have to break the news to folks. For instance, I had a buyer who was moving to Waco from out of state. He was a very nice guy, but sadly was fed wrong information. The first day I met with him he had this HUGE smile on his face! He thought he would be able to buy a $350K house for $250K. I asked my buyer why he thought he would be able to buy a house at such a low price. He then pulled out these sheets of paper he had printed off from some website of “recently sold properties” (in our area). Wow! It showed that a $500,000 house sold for $300K and a $350K house that sold for $230K!

WRONG, WRONG, WRONG!!!

I can’t remember the name of the site now, but, WOW! How on Earth did this website come up with these “sold” figures? You see, Texas is a “non-disclosure” state; meaning that when a property is sold, the actual sold price is not made available for public record. If you want to know what a house actually sold for, you need to call a Realtor. As a Realtor, I can look up that information for you in our MLS system. When we input a home into the MLS and that house sells, we’re REQUIRED to report accurate sold information.

Anyway, back to my happy buyer (who wasn’t so happy by now). I asked him to give me the printouts so we could look and see what those houses sold for. Case number 1) The $350K house the website said sold for $230K, actually sold for $335K. Case number 2) The $500K house sold for full asking price (it was only the market for a week before going under contract). Actually, that $500K was a great price for that particular home. Fortunately, my buyer was a smart guy and he immediately “got it”. I didn’t have to spend to much time convincing him that a lot of the “home listing farm” sites don’t have accurate information.

Now back to Zillow.com; I pulled a list of homes for sale in a zip code and when I looked at the search results, I was surprised (and disappointed) by what I saw! Here’s a screenshot:

You’ll notice that RIGHT Below the asking price, Zillow.com has something called “Zestimate”. In most of these cases, the Zestimate appears to be considerably lower than the asking price! When I saw this, I immediately looked at comps for those areas and noted that the “Zestimate” was considerably lower than what actual comps showed. With Texas being a non-disclosure state, I don’t know how Zillow came up with these numbers. I don’t know the algorithms they use to arrive at an estimated property value, but I can tell you those values they have “estimated” are on the (very) low side.

So I went to one of my listings that I had supplied to Zillow.com (via syndication) and found this:

Once again, there’s the “Zestimate” with a far lower estimate of property value with respect to the asking price. Is this property that much over-priced? NO! When I met with the seller to list this home, we went over the comps to arrive at an asking price. I pulled up all the sold homes in the past year (for his area), current active properties, houses that were under contract, etc… I ran statistics for the school district, current market conditions ( I tend to be a numbers freak), and more. Also, I need to mention that this house has other amenities not found in comparable homes in this neighborhood – HUGE yard, water softener system, extra large driveway, located at the end of a cul-de-sac, etc…

I feel that the “Zestimate” gives the wrong impression of my listing – the impression of being over-priced. I know from experience that buyers tend not to look at properties they feel are grossly over-priced. Why would I want to give a potential buyer the impression that my seller is asking WAY too much for his house? I wouldn’t want to do that! That’s why I’ve decided NOT to provide Zillow with any of my listings, anymore.

Do I feel that I’m losing that much extra exposure for my listings (for my clients)? No, not really. My experience tells me that when buyers (especially first time home buyers) are in the market to buy a home, they typically don’t visit just one website to see what’s for sale. A typical home buyer will surf many websites looking for homes that are on the market. They want to see EVERYTHING! Heck, before I got into real estate almost 9 years ago, I surfed EVERY available website that had home listings. I wanted to see pictures, listings, prices… When I ran out of websites, I got in my car and drove around neighborhoods looking for houses! Buying a house can be exciting, it’s hard not to surf every website on the internet looking at house to call home! If they go to Zillow.com, I bet those home buyers also going to Realtor.com, Trulia.com, Frontdoor.com, Texasrealestate.com, etc…

It’s sad that I’m forced to “boycott” a listing resource, but I don’t want to run the risk of a buyer seeing this listing on Zillow.com and then seeing it again on Realtor.com and think… “Oh yeah, this is only worth $253,200. They’re way over-priced.” Part of my job, as a Realtor, is to market my client’s home in an honest and positive way. I just don’t see how potentially giving a buyer the wrong impression that this home is worth a lot less, is a plus for my client.

Now, in Zillow’s defense, they don’t claim that this is the actual property value (based on recently sold properties). Zillow does say it’s an ESTIMATED value, but I tend to think if someone saw this “low value” they would have a hard time getting that (low) value out of their head.

My duty is to my client. It’s not my duty to just generate leads for myself. Is it possible that I may lose buyer leads from Zillow.com? Sure, but I’d rather look after my client’s interests than my just my own. If I do have a seller that insists on having their home displayed on Zillow.com, then I’ll point them to this article. If after reading it they still want to be on Zillow.com, then so be it. At least I’d feel better knowing I explained why I’m not such a fan.

If you’re looking for a home to buy and come across these listing farms, just beware that some of the information may be wrong, out of date, etc… If you want up to date and accurate info, your best bet is to call a Realtor!

If you’ve been thinking about buying or selling a home, hopefully these facts and figures will paint a clearer picture for you! Or at least will make you completely confused!

These stats are derived from information that was obtained from the Waco MLS system. These statistics are for properties that are only classified as “residential” and do NOT include manufactured housing.

Hopefully, you can get an idea of where the real estate market in the Waco area has been, is, and where it’s headed.

In 2010:

- 1,941 homes were sold
- 3,551 homes were listed

Analysis:
This means that roughly 54% of homes that are listed are sold. Wow! Alot of agents, when doing their budgets for a new year, will account for 65% of their listings going to closing. This is an 11% drop from what some agents consider a “base” sold ratio.

Now, some of these homes may have actually been listed in 2009, but sold in 2010. There are two figures that I’m working with here… solds and new listings. I was curious as to how many homes sold in a year (without regard to their listed date) compared to how many were listed in a year.

Now, if we ONLY look at those 3,551 homes that were listed in 2010:

- 1,325 were sold the same year:
This represents at 37.31% sold ratio. By contrast, in 2007, the sold ratio (for homes listed AND sold in the same year) was 66.97%!! (with that being said, about 1,100 MORE homes were listed in 2010 than 2007. Don’t know why yet, I’ll have to do some research).
The average days on market for these sold listings was 88 (keep in mind though, that these days are market also include the time needed for escrow).
35.6% needed a price reduction
The average sold price is $132,838
- 856 are still active:
Out of these 856 homes, the average days on market is 188 (these days on market do NOT include time needed for escrow, as they are still active).
47.9% of these active listings have had at least one price reduction
The average current asking price for these active listings is $176,884

Analysis:
there a couple of ways you can read these numbers, really.
First, you can see that there’s a big difference between what people are currently asking for their homes and what people are buying. This does NOT mean that a house that’s on the market right now at $176,884 will sell for $132,838! What this means… is that buyers (right now) are NOT shopping for the more expensive homes. If you do happen to have a more expensive home, you may need to price it more aggressively than a few years ago, Simply because the “buyer pool” (according to the numbers) is smaller for higher priced homes than homes priced in the $130s.

The smaller buyer pool for homes above $170K doesn’t surprise me. With the tightening of banks, the new regulations, increased credit score requirements, etc… It’s harder for buyers to get a loan today than it was 4 years ago.

Another way to look at these numbers… make sure you get the price right from the start! The homes that were listed in 2010 and sold in 2010 had very short days on market compared to the homes that haven’t sold. A smaller number of those homes had to have a price reduction too!

Alot of people think (and it’s a myth), that they need to price a home higher so they have wiggle room for negotiations. this causes your home to sit on the market longer (and ultimately get a lower price for it). The first 30 days of a new listing is CRUCIAL – That’s the “hot time” for a home fresh on the market. The last thing you want to do is price it too high and knockout any potential buyers that might otherwise be interested in looking at your house. The higher the price (above true market value) means that more buyers WON’T see it. If you price your home right – at the beginning of your listing period, you’ll appeal to a greater range of buyers – which is your goal, to get as many people into your home to look and hopefully put an offer on it!

This does NOT mean price your home “cheap”, it just means price it at it’s true market value – from the start.

-Over 1,000 homes listed in 2010, were classified as “expired” or “withdrawn”!
This means they sat on the market and didn’t sell! Now, it’s possible that some of those listings have been relisted by another agent (probably at a lower price too).

In the grand scheme of things, in 2010, 450 less homes were sold than in 2007. Although, this represents a drop in sales, buyers are still “out there”. They’re price sensitive right now and they have a lot of choices, but with correct pricing and successful marketing, you can get your home sold (and in a timely manner)!

If you need specific statistics compiled for your home, neighborhood, or situation, give us a call and we’ll be glad to get you what you need!

Don’t get me wrong, curb appeal is still important but not like it used to be. With the dawn of a new century (and millenium), times have changed.

The “curb appeal” defacto standard (for selling your home) has taken a back seat to a few other things:

Welcome to the internet!

Seriously, these days more and more home buyers are looking online for houses. You can find the new generation of buyers at home in their jammies with their heads buried in their computers, glazed-over eyes and the flicker of a computer monitor bouncing off their face – searching for a home.

It makes sense! Gas prices are dramatically higher these days, the days are shorter (people are working more hours per week, on average, than decades ago) and most potential buyers have a thirst for knowledge and facts before they make a buy! For a home buyer to use the internet to leverage their time and money is a smart move. Unfortunately, many sellers are NOT using the internet (and modern technology) to leverage their listing. Okay, maybe I shouldn’t say “sellers”; A lot of Realtors are not using the internet and cutting edge technologies to leverage their client’s listing.

It’s not ‘Curb Appeal’ anymore, it’s all about ‘Internet Appeal’ or ‘Web Appeal’, if you prefer. Can I copyright that term?

It’s important that your listing looks its best on the internet! To those web surfing, fact finding potential home buyers. I don’t know how many times I run across listings on the internet and they look absolutely HORRIBLE! There’s no way, if I was looking to buy, that I’d want to waste my time driving over to that house to have a look. I know that I’m not the only that thinks their time is valuable; why would I want to waste it on a ‘dump’?

True story: We went on a listing appointment last year (the house had been listed with another agent and the listing expired). I remember thinking, “Wow! This house is WAY overpriced!” Of course I based my opinion the listing that I saw in the MLS system. The house had one photo only (horrible photo too, by the way) and no descriptive remarks. As a matter of fact, I almost cancelled the listing appointment because I thought it would be a waste of time for me to try and convince the home owner that he would have to come WAY down on the price to get it sold. I didn’t cancel the appointment. When I got there, I was SHOCKED!

The house was beautiful! Nothing like how it was portrayed in the MLS! Oh my gosh, this house had an awesome backyard, an ultimate man cave, a lot of detail on the inside, etc…. After viewing the home and talking to the owners, I looked at the comps and wasn’t surprised by what I found… The house wasn’t THAT over-priced after all (once you accounted for the extras)! Hey, I’m in real estate, I know that you can’t comp a property without looking at it first. If I thought that the house was over-priced (and I suppose to know better), imagine what John Doe home buyer thought after viewing that listing online (with the ONE horrible photo and no descriptive remarks).

It was no surprise to me, when I asked the home owner if they had any showings, he replied that they had none.

By the way, this house had awesome curb appeal! But the ‘web appeal’ was so bad that no one came to the house and saw the curb appeal!

YOU HAVE TO HAVE WEB APPEAL BEFORE THE CURB APPEAL EVEN MAKES A DIFFERENCE!

So how do you have great web appeal? You have to choose the right agent. Contrary to what most people think, just throwing your house up on the MLS and sticking a for sale in the front yard, doesn’t guarantee a sale. Unfortunately, a lot of people (and Realtors too) don’t know any better.

Web appeal is about more than just great photos (although that plays a HUGE role), it’s also the remarks, the marketing, the partner websites, the target audience, etc… It’s about using the latest technologies to sell your home in the shortest amount of time with the least inconvenience to you. It’s about things like: utilizing texting as leverage, mobile marketing, mobile websites, web exposure, statistical break downs, keeping up with the market, etc….

For instance, which of these remarks would entice you to come look at this home?

1) Great house in Lorena ISD on 3 acres. 4 bedroom 2.5 bath built in 2002. Over 2,300 square feet, a real must see!

OR

2) Front porch living at its best! Enjoy the country sounds and stars at night but live close enough for a drive to the grocery store in less than 10 minutes – what a great location! Less than 5 miles to the hustle and bustle, but feels secluded and distant enough to get away from it all. Featuring 4 bedrooms and 2.5 baths, this 2002 custom built home is located in desirable Lorena ISD AND sits on 3 acres! Enough open space for pets to roam and children to play (comes complete with playground in backyard). With over 2,300 square feet, you’ll have enough room to entertain and host those big family gatherings during the holidays. Are you looking for space between you and your neighbors? For a personal and private showing, call Gary (254) 498-4276.

By the way that was a real listing and we got in under contract in about 1/4 the time of Waco’s average days on market – for more than the seller anticipated!

To sell a home these days, typically it takes more than just ‘curb appeal’.

I’m guessing this whole internet thing maybe, just maybe, might NOT be a fly by night fad after all….

Some good and some bad, but nevertheless, interesting. What’s great about hearing all the other Realtor stories is that I seem to learn something new (and VERY valuable) that I may have never thought of, For instance:

1) I learned that when I’m having an open house, tell the seller to go through the medicine cabinets and make sure any presicription medications are well hidden. The Realtor that told me that story learned first hand that your seller can get very upset if their heart pills are missing (along with various meds)! You wouldn’t think that an addict would cruise open houses on an Sunday so they could go in and secretly take any drugs they could find. Apparently that agent never thought of that either, but it’s true. She was holding an open house and it got pretty busy so she had a hard time keeping on eye on everyone looking around in the house, and wouldn’t you know it… yep, stuff goes missing (apparently that guy hit several open houses that day). We learn from day one to tell sellers that when you put your house on the market, REMOVE ALL VALUABLES!! Including, jewelry, heirlooms, etc… but now add prescription drugs to that list.

2) I learned it’s a good idea to make sure that when I have a homebuyer that’s buying a home, really keep on top of the agent to keep on top of their seller. I had a client who was moving into town and starting new job. We set the closing date for that Friday so she could move in over the weekend and be ready to start her new job on Monday. We showed up for the final walk through a couple of hours before closing. I was shocked when we walked into the house! The seller had NOT packed a thing!!! Now, usually the seller is packed and all things are removed and ready for the new owner. Not in this case though, not one box was packed… Not one cabinet emptied. I turned to my buyer and told her that we need to postpone the closing until the owner got packed and got out. Unfortunately, that was not an option. So we closed on the house and while the seller is moving out, the buyer was trying to move in. It was a mess… Note to self: specifically ask the listing agent if the seller has moved out!

3) An agent was telling me one day that she had a client who bought a home. The first time the home buyers saw it they fell in love with it! It showed really well, it was clean, smelled nice, perfect floor plan, nice yard, etc… It was the perfect place! That is until they went to their final walk through before closing… There were numerous holes in the walls behind where the couches were sitting, on the kitchen counter, there was a massive hole (that was covered up by the microwave). Also, in one of the closets… the children had kocked knocked a hole in it so they could walk through it and be in the closest of the bedroom on the other side of the wall… Hey, I’m all for secret passages, but really? Needless to say… the buyer’s weren’t happy and they threatened not to close. If I remember right, that agent told me that the home sellers agreed to make all repairs. That other agent did say at first, the sellers tried to say they didn’t “notice” the “issues” and didn’t know about them……… “Ummmmmm, yeah, okay”

4) I was showing a house once and I had this eeeeerie feeling that we weren’t alone. Chalk it up to the fact that the house was in the middle of nowhere, it was vacant, it was starting to get dark, it happened to be close to Halloween. The perfect recipe to have the heeeebies jeeebies scared out of ya’. Anyway, I agreed to meet my buyer at the house. They had actually arrived before I did and took a few minutes to look around on the outside. So far so good. I opened up the door (and of course the hallow creeky sound didn’t help) and proceeded to go inside the house. Still this strange feeling was with me that we weren’t alone. I began to look around for the usual stuff like lights, indication of foundation issues, water damage, etc…. The buyer had proceeded down the hall to one of the bedrooms. A few seconds later they came running out of the room – pretty much screaming. They yelled at me to GET OUT! GET OUT! No asking why on my part! (usually when someone yells duck, I duck first and ask questions later). We both bolted for the front door. I got it locked back up and we walked (rather quickly) back to our cars. The buyer had this white look on their face. I asked what happened… After catching their breath, they began to tell me the whole sordid details… needless to say I was SHOCKED! I’m just glad I got out of that house FAST! If you’d like to know what they saw, just give me a call and I’ll be glad to share it with ya’! Yeah, I know, it’s mean

5) Usually when someone enters the real estate business, they’re taught to always ask a potential buyer if they are currently working with another agent. It gets drilled into our brains. After all, you don’t want to spend the entire day (and gas) showing homes to someone that already has a Realtor. Yep, you’d be surprised, It happens ALL the time! Maybe someone sees a house they are just dying to see and they can’t get their current agent on the phone to show it to them. It’s not uncommon for some people to call around and call around until they find an agent that can show them THAT house, RIGHT THEN AND THERE.

A few years ago I got a call from someone moving to town. She said they were moving to Waco in a month, they needed to find something pretty quick. So, of course, I asked if they were already working with another Realtor and they said “no”. We set up a day and time that week to look at houses. A couple of days later I met the buyer at the office and we headed out with a list of homes to see. Since they were new to the area and didn’t know much about Waco we visited several different communities. The buyer had actually found a couple of houses they she liked. She wanted to sleep on it and let me know which one she wanted. So I called her the next day and she said that she was still thinking and to call her back. I Called her the day after that and couldn’t get her on the telephone. She didn’t return my messages. She didn’t return my emails. Basically she disappeared. After a couple of months, one day, I decided to look and see if she actually ever bought a house (and which Realtor she used).

Anyway, come to find out, she did buy a house…. a house that she HAD UNDER CONTRACT WHILE I WAS SHOWING HER PROPERTIES! Yep, she apparently had put a house under contract about a month before she called me. Maybe she wanted to see if there was anything on the market that she may have liked better before she closed on that house? Maybe. Who knows. Maybe next time I need to specifically ask a potential buyer “Do you already have a house under contract?” Hopefully they’ll tell me the truth.

These are just a couple of stories really. It seems that I’m always hearing about something new! Something that makes you scratch your head and say ARE REALLY FREAKIN’ KIDDIN’ ME!!!!!

I may make this a “series”. Some of the stories are funny, some are unbelievable, some are sad and everything in between.

Hey, you can keep it local this weekend – enjoy the the a/c in your car (hopefully bee free), then enjoy the a/c in a new home! The Heart of Texas Builder’s Association has gotten the 2010 Parade of Home underway in Waco! Officially, it started June 5th but it’s on again for the this upcomming weekend (Saturday, June 12 & Sunday, June 13th).

If you’ve never done the Parade of Homes “thing”, it really is fun. A bunch of local builders will put some of their new homes on the “parade route” and showcase their product. Add on top of that, many REALTORS will also hold open houses of the homes that they currently have on the market too. It’s a great way to to view some new designs and trends in home building and a chance to ask builders any questions that you may have.

Hey, it’s cheap entertainment! Tickets are only $5.00 a person to view all the homes. You can purchase tickets at any home on the parade route. Hours are: Saturday, June 12th 11am – 5pm and Sunday, June 13th Noon – 5pm.

Here’s a map of this year’s parade of homes (click on it for a larger view):

2010 Waco Parade of Homes Map

If you’d like more information regarding this year’s parade, please visit the Heart of Texas Builder’s Assocation Website

What’s the market doing right now? Well, I am a numbers freak so here are some stats for you to consider. If you’re even thinking about buying or selling, hopefully this will give you some insight in the Waco real estate market – TODAY.

Homes Under Contract

• As I’m typing this, there are 308 homes under contract right now.
• The average asking price of homes that are under contract is $137,864 (for the Waco MSA)
• The average days on market for those homes is 107
• 23.7% of “under contract” homes is in Midway ISD. 32.1% are in Waco ISD. 10.7% are in China Spring ISD. 5.8% are in Robinson ISD
• Only 33 homes under contract are above $250,000. 8 Homes are above $400,000
• The average days on market for those 8 homes that are above $400,000 is 217 days! Almost 4 months longer than the average!

Average Price of Homes “Under Contract” – Broken Down by Various School Districts:

• Midway ISD: $218,472
• Waco ISD: $100,150
• China Spring ISD: $132,424
• Robinson ISD: $153,466
• Lorena ISD: $179,438

Actually, I like looking at homes that are classified as “under contract”, it gives me a feel for what’s happening in the marketplace right now. In what price ranges people are actually shopping, areas, amenitities, etc….

Hey, it’s summertime! You may be looking for a house with a pool – I know that I’d love to have a cement pond right about now! For the entire Waco MSA (mainly, McLennan County), there are 95 active homes (classified as single family homes, new construction, and homes with acreage) on the market that have been tagged as having an in-ground pool. The average price is $410,499. The median price is $349,000.  There are 9 homes with pools priced below $150,00 and 19 homes priced below $200,000.

Based on the number of sales during the previous 12 months, there is a 7.8 month supply of homes on the market. The rule of thumb is that anything less than 5 months is a seller’s market. Between 5-7 months – a balanced market and anything over 7 months is a buyer’s market. Although many states have really been hurt by the decline in home sales… Texas, on average, is doing pretty well.

Thought you may enjoy a few “other” stats too:

Other Stats

• There are 1,394 active properties on the market in the Waco area
• Average asking price $174,894
• 30.6% of the active listings have 4 or more bedrooms
• 51.7% of the active listings have 3 bedrooms
• 17.7% of the active listings have less than 3 bedrooms
• 37.5% of the active listings have at least 2,000 square feet
• The active listing with the most square feet (8,871 SQFT) is priced at $1,420,000! Do you know anyone interested in buying it?  It’s located in China Spring
• 35.8% of the active listings have a formal dining room
• Out of 1,394 homes for sale, only 46 have 5 or more bedrooms
• 20.8% of active listings have at least 3 bathrooms
• There are 64 homes on the market that are classified as “New”

These are just some fun stats in case you’re curious as to what’s available for purchase in the Waco area. Of course, if you have any specific questions or would like to receive a list of homes for sale that match your criteria, feel free to call us anytime! (254) 523-4284

Often though, some of those folks who are asking me about homes with pools are often surprised how ‘rare’ they are. You would think with the Texas heat every year, more homes on the market would actually have a cement pond!

I decided to do the math and analysis of homes on the market that actually have a pool. What I found was actually kind of interesting… well at least to me, but I can be a numbers nerd from time to time… okay, most of the time.

I should note though, a couple of these numbers may be skewed just a little. I’ll explain: Sometimes when a Realtor inputs the listing into the MLS system, if the community where the house is located has a neighborhood pool for everyone, some real estate agents will mark that the house actually has a pool. I tend to disagree with this. In the MLS system, when I’m looking for homes, I’m looking at specifics about the house only, not the community where it resides. I usually already know about the community and its amenities.

If I have a listing in a neighborhood that has a community pool then I’ll note that fact in the remarks section of the listing. I won’t choose the option that the HOUSE has a pool, because in all honesty, the house doesn’t have the pool… The neighborhood does.

Actually, I hope to get this changed. I sit on the Waco Associations of Realtors’ MLS Committee this year and I’ve already brought up the swimming pool issue. It would be nice to specify if the house has a private pool or a community pool. That alone could clear up some misunderstandings and make it more clear.

Anyway, back to the original point. When I looked up the listings and did the analysis for homes with swimming pools, I did NOT differentiate between those private pools and community pools. So if you’re looking for a private swimming located on your property, these number should come in a little lower:

• Only 9.4% of the homes currently on the market have a swimming pool
• Out of all the homes on the market that have a pool, a majority of them (87%) are classified as having a pool that is “in-ground”.
• The median asking price of homes that have a pool is $249,000 vs. $128,650 for homes that have no pool
• The median asking price of homes that have an “in-ground” pool is $269,000
• Since the beginning of the year, 9.3% of homes sold had a swimming pool
• The average days on market for homes with a pool is 172
• The average days on market for homes without a pool is 159
• There’s a little more than 9 months worth of inventory of homes with pools on the market
• Homes without pools? About 8.4 months worth of inventory
• Out of homes that are on the market right now that have swimming pools – 50% have 4 or more bedrooms and 47% have at least 3 bathrooms
• The median age of homes for sale with pools is 24 years
• The median square footage of homes with pools is 2,553
• Only 11.3% of homes for sale that have a swimming pool are no older than 5 years. Basically, for the whole Waco area, if you wanted a home with a pool and didn’t want it to be more than five years old, at least 4  bedroom 3 bathroom, with at least 2,000 square feet, you’d only have 8 houses to choose from. Out of those 8 houses, 6 are in Midway ISD.
• Homes for sale with a swimming pool breakdown (by school district):  1 – Axtell, 1 - Bosqueville, 1 – Bruceville-Eddy, 7 – China Spring, 4 – Connally, 2 – Gatesville, 6 – Lorena, 1-Marlin, 1 – Mart, 31 – Midway, 3 – Robinson, 1- Rosebud-Lott, 6 – West, 35 – Waco

Looks like Waco and Midway school districts (combined) account for 50% of the homes that have swimming pools.

These numbers aren’t life altering, but it does shine some light on where the Waco Real Estate market is concerning homes with pools. I always find stats a little interesting, especially when you really start to break them down.

Hope the numbers answered some questions or were, at least, a little fun to read.

If you’re looking for a house right now and need specific statistics concerning what you may be personally looking for, call me anytime or you can contact me online.

Yeah, I know… The title is cheesy and I ripped it off from the “Hitchhikers Guide to the Galaxy”, but nevertheless… You need a guide. Hopefully this article will give you some insight into the real estate world (or what I like to call… “As the Real Estate World Turns” or “All My Realtors” or “The Young and The Realtors”).

First and foremost, hopefully you read my previous article about obtaining your own buyer’s agent to help you a buy a home. If not, you may want to read it first: Get your own buyer’s agent.

There are a few basics you need to know when working with the Realtor you chose to help you find a home/house/apartment/commercial property/duplex/cardboard box. I’ll write about these more in depth later in this blog post:

• Don’t be surprised if that agent asks you to sign a buyer’s representation agreement
• Don’t call your agent at the last minute wanting to look at 4,769 houses
• BE HONEST WITH YOUR REALTOR!
• Don’t call the agent off the sign
• Be realistic

Buyer’s Rep
When you find the right Realtor to help you find the right home, don’t be surprised if that real estate agent asks you to sign a buyer’s representation agreement. This is essentially a contract between you and your Realtor. This helps establish a “client” instead of “customer” relationship. It’s best to have this in writing. By establishing a client relationship with that agent, that agent will have certain obligations to you – obligations to look out for your best interests. The buyer’s representation agreement can help clarify any potential fiduciary misunderstandings too. It will also let everyone know that the agent is working for YOU, the home buyer (and not the seller).

While it’s a good idea for the buyer to have a signed buyer’s rep agreement, it’s also a good idea for the agent too. It’s a win-win situation. It helps that agent to protect the work and time they’ve put into you as a client. If there are any commission disputes with other agents (hopefully there won’t be), your buyer’s agent will be able to produce a written and signed buyer’s rep agreement, which give them a huge leg up. Not to mention it shows that agent how serious you are as a buyer.

If you want your agent to devote time, energy, gas, etc… to you, you need to show the agent that you’re a serious home buyer. By signing that agreement, you’re showing your Realtor that you’re willing to commit and are serious about a home purchase.

Last Minute Help
Wow, this happens all the time too. Usually it’s not a problem, but sometimes it can be. If possible, try not to call your agent at the last minute wanting to look at a long list of homes that day. Especially if it’s a weekend! Sometimes it’s not an issue, but weekends can be pretty busy (even more so in the summer months). Your agent may not be able to show you property on Saturday if you call them at 9:00 p.m. on Friday night wanting to see houses the next day. There’s a good chance that your Realtor may already have appointment or at the very least, plans with their family.

Of course, there can be extenuating circumstances that can throw that out the window. Maybe you’re only in town for a couple of days and you’ve already communicated to your agent that you may need some help that weekend, etc… Calling at the last minute though, can prove to be problematic in actually viewing the homes too. Your agent has to set up the appointments with the seller. If your Realtor calls that home owner at the last second to try to show it to you, that may be inconvenient to them and they may say it’s not a good time. The more notice you can give; the better (and easier) it is for everybody!

BE HONEST WITH YOUR REALTOR!
You’d be surprised how many potential home buyers aren’t just “less than entirely truthful”, but intentionally dishonest! Here’s one for you (true story):

A few years ago I had a buyer call me up. The said that they were moving to town the next month. So I asked them if they needed to find something fast. They said yes. I asked them if they were working with another agent, they said no. So the next day I cleared my schedule so I could spend the entire day with them to find a home. I spend the entire day showing them houses. We did find a couple of homes, but the house they really liked was a little more than what they wanted to spend. So they were going to think about it and let me know.

The next day I called and they said they were still thinking about it. I gave them a couple of more days then tried calling. No answer. I left a message. I tried calling again, but the same thing. Over the course of the next week I tried contacting them several times and could not get them to return my emails or phone calls. Finally, I gave up thinking that something must’ve happened.

After about a month, I decided to look up in the county records and see if they ever bought a house. And they did. I was obviously curious who they ended up using as an agent. I went back to our MLS system to look for that info. I looked at the house that they purchased. Okay, fine they used another agent (sometimes it happens). But the kicker was the close date and the date they put the house under contract. I noticed that they had closed on the house just a couple of days after I showed them several homes! I then looked at the date at which the buyer put the house under contract and it was about 2 months BEFORE I showed them houses!!!

This means that the buyer who called me and said they weren’t working with another Realtor, not only had one, but they also had a house under contract at the same time!

If you find an agent to work with, by all means, be HONEST with them. You may not know it, but Realtors don’t typically earn a “salary”. Most of us work on commission, that’s how we put food on the table for our families. Sometimes transactions fall through because things change and that happens, but when someone is being intentionally dishonest, that’s something else.

Be Realistic
That should go without saying. It’s part of our job to show you what’s available in your price range and for what area you want to live in. What you “want” to spend may be different than what you may “have” to spend. A house with a pool? Usually going to cost more than those without. The 3 car garage? More. The 3rd bathroom or 5th bedroom? More. Etc….

I once came across someone who wanted to buy a house and sell his too. I showed them the house they wanted to buy… Actually, it was a great deal for that neighborhood (Twin Rivers). It was brand new on the market and I knew it wouldn’t last long. They had told me that that they didn’t need to sell their house first before they bought another one, but they wanted to put it on the market.

I went to their house on the listing appointment. I went over the comps with them for their neighborhood and pointed out things specifically about their house that was good and not so good. I then told them what price they would probably end up getting for it (most likely). They were not happy at all. I asked them what they were thinking they could get for their house. I was shocked to say the least!

The house they wanted to buy was $275,000. The house they wanted to sell was… well, according to comps, was worth around $155,000 (they were upgrading to a bigger house and different neighborhood). Anyway, they told me that they thought their house was worth at least $325,000!!! Wait a minute here… Their current home had no real “extras” either… no granite counters, average size yard, newer carpet, no pool, no gutters, etc… Not to mention the house they were selling was SMALLER than the one they were trying to buy! I asked them why they thought their house was worth that much. They said that a house in their neighborhood sold for that much. And they were right, it did sell for that much, but it was newer, almost twice as big, had a pool (and hot tub), 3 car garage, granite counters, sat on 2 lots,  etc… the works.

I pointed out to them that they were trying to get more for their house than the one they wanted (plus it was newer, had community pool, and just in a general more expensive subdivision). I asked them that if they were shopping today and they had the choice between their house and the house they wanted, which house would they buy… Of course they chose the other house. I then asked, why do you think someone else would pick their house over the other (cheaper) house. They didn’t have answer, but said that they were firm. $325,000 and that’s all they would take. Needless to say, I didn’t take the listing.

I mean, if I can’t get the house sold at the price they wanted, then I didn’t want them to get mad at me when it didn’t sell. If I can’t meet or exceed someone’s expectations, then they have no business hiring me as their Realtor.

Just remember, be realistic, be open, and ask a lot of questions. There’s always a lot to learn about current market conditions.

Don’t Call the Agent Off the Sign!
Refer to this article I wrote: Buyer’s Agent

Buying a home can be a both exciting and exhausting experience. If your agent will remember and peform their obligations to you and if you, the buyer, do the same for your chosen Realtor, it can go a loooooooong way to a more pleasant memory of buying your first home!

You may not even know why you should be afraid (be very afraid… Okay, now I’m just trying scare ya’). Actually, I’ll give you some info that you may not be aware of.

If you’re a serious home buyer, then the first thing you need to do BEFORE you begin looking at homes (well, after you get pre-approved for a loan) is to find a buyer’s agent! NO JOKE! Whatever you do, get your own agent and don’t call the agent on the sign.

Don’t worry, typically, a buyer’s agent is free to you. When a Realtor lists a house for sale, they charge that seller a fee. When another real estate agent brings a buyer, then that listing agent splits their fee with that buyer’s agent. If you call the agent on the sign, then typically that agent will keep the full fee. Most of the time there are two agents involved in a home sale. It’s common for a buyer to find their own agent to represent their best interests throughout the home buying process. Don’t have your own agent? Then you’re on your own… not good.

I know, I know, you hate talking to “sales” people. Although, some real estate agents are nothing more than sales people, the vast majority of us are actually more than that. Hey, it’s our job to explain and guide you through the process of buying or selling your home. In addition, sometimes we’re advisors, city tour guides (if you are new to the area), negotiators, personal trainers (when we have to explain it like it really is and whip you into shape – Ha!), and (unfortunately) marriage counselors. Boy, it’s tough when you have to list the house of a nice couple that you sold them 5 years ago because now their getting divorced (that’s another post for another time).

If you’re looking to buy a home, especially if you’re a first timer, call around and talk to some Realtors. Great idea! But, what do you ask? Here’s a couple of suggestions, but really, ask them anything you want (except what they had for lunch…trust me).

• “How’s the market?” – You’d be surprised at how many agents can’t tell you how the market is actually doing. And I mean more than them saying “not bad”. Hey, it’s our job to keep track of the market! Honestly, we should be able to pretty much quote some basic stats! For instance, how many houses are on the market (a rounded figure is fine for this one), how many are listed as under contract, etc… Now there are some in-depth numbers you could analyze, but what we’re talking about here are the basic numbers. If you talk to an agent who can’t give you the basics, then find another agent. It’s our job to read, analyze, and KNOW our market. If that Realtor doesn’t know the basics of their own market, then find an agent who does.
• “Do you specialize in a certain price range?” – Some Realtors focus on a certain price range of homes. Realtor (A) may focus on high end homes while Realtor (B) focuses on lower prices homes. In any case, if you find an agent who specializes in a price range and you’re not in that same range, ask that agent if they recommend someone who does work in your price range. Now, with that being said, there are agents who work with any price range. It’s just a good question to ask!
• “Do you specialize in a certain area?” – Although it’s not as common here as in other areas (like DFW for instance), a lot of agents will focus their business on a few certain areas. Dallas/Ft. Worth is so big that it’s really hard for any agent to keep track off all the different areas. In Waco, since it’s a smaller town, most of the agents here have no problems servicing the McLennan County MSA.
• How long have you been in the business? Great question, but there’s no right answer really. I mean it depends on what you’re looking for. If the agent has only been in the business for a couple of months, then chances are they don’t have too many active clients and can devote more time to you. If the agent has been in the business for a considerable amount of time, then of course they’ve got the experience. Beyond that though, they’ve done more transactions and may know history about certain houses, since that agent has been in the business longer. It really depends on what you’re looking for.
• Do you work on the weekends? Believe it or not, some agents just don’t work on the weekend! I don’t know how they do much business (considering a lot of people only have weekends available to actually find a home).
• You may laugh, but it may be a good idea to ask (especially if you’re in a hurry to find and buy a home), if that buyer’s agent that you’re talking to is planning to go on vacation in the next 30 -45 days. To some people it may not matter, to others it may. But if you’re one of the folks that would prefer your agent be around while your transaction is in escrow… don’t forget to ask about their vacation plans!!!!

That’s just a few questions you could ask a Realtor that you’re considering using as your buyer’s agent. You may be able to get more ideas for questions just by surfing the web.

Whatever you do, don’t call the Realtor off the sign! They have a contractual obligation to represent the best interests of the seller and owe you no loyalty. If you call an agent off the sign and ask about the price and that price is a great price to you… DON’T say something like… “Wow, that’s an awesome price… I’d sooooo pay that! But let’s see if I can get it cheaper.” Guess what… they owe it to that seller to tell them that you would be willing to pay full price.

Don’t be scared! They’re not evil when they go to the seller with that kind of information. They OWE it to the seller to pass along an material information they may come across. Just be aware that if you’re talking to the seller’s Realtor, don’t tell them too much information!

Also, that agent off the sign shouldn’t divulge confidential information to you either. I’ve had people call me off my for sale signs before and after they ask about the price they’ll say something like… “Well, how much will the seller take?” Even if I know that the seller will take $10,000 less or they need to sell it fast and will probably cut a deal, I have an obligation to my client to look after their best interests. Divulging that kind of information to a potential customer would go against my fiduciary responsiblity to that home owner.

Thinking about buying? Get out there! Get pre-approved, get familiar with the areas, and most important, get your own buyer’s agent!

If you’d rather look around online instead of talking to a Realtor first (really, we’re not scary people! Okay, well maybe some of us, but not all of us), I’ve got some cool tricks, tips, and websites fer ya.

You’re relocating to Waco? GREAT! We’d love to have ya here (especially if you can pull some strings and get Grandy’s Restaraunt to open back up in Waco). Here’s a list of cool websites to check out (well not including my website, which goes without saying )

Virtual Earth
I love this site for looking at photos of neighborhoods. Google Earth is a nice program, but with Virtual Earth, you get a “bird’s eye view” option (in addition to the satellite photos). The bird’s eye view will get you “closer to the neighborhood” than the satellite view option. So0000, you found a great looking house online, but you want to get a feel for the surrounding area…. Virtual Earth is a great way to get that info! Here are screen shots of Twin Rivers, Hidden Valley, and Badger Ranch to give you an idea of what you can see:

You can drag the map around and expand the views too. It’s really a neat tool that I use all the time when I’m talking via email with people out of town. I’ll take screen shots (or send them the link) so they can see the areas and judge how far this or that is from here or there. I’m surprised that more real estate agents don’t utilize this tool….. at all. Visually, it really helps people out who are currently living out of town but relocating to the Waco area.

Google Maps
Of course when mentioning properties, maps, satellite photos, etc… You can’t forget about the de facto standard of Google Maps with (most importantly) Street View. If you haven’t heard of Google’s street view option on their mapping website, then wake up!!! Put the donut down, turn off the golf channel, hop on the internet and check it out!

Not all areas are covered, but Google is adding more street level views everyday. Their goal is to map the entire world.

After you check out the bird’s eye view of various Waco areas, head to Google Maps and check out the street view! It’s like you’re driving your car down the road, driving past the house yourself. Google Street View can really give you and idea of how some areas are laid out.

After all, just finding the right house is only part of the process. You know what the say… Location, Location, Location! It’s your chance to take a true virtual tour of the neighborhood that you’re thinking about calling home!

Waco Chamber of Commerce
The Waco of Chamber Commerce website is a great souce for learning about Waco, especially if you’ll be opening a new business here. It has all kinds of stats and information. Check out Waco Prospector too.

Waco Tribune Herald
I can’t forget to include the local paper’s website! All things Waco (and more). News, classifieds, etc… Actually they do a really good job with the website. If you’ve got a hankering to move from Pontotoc, Mississippi to Waco, Texas, this a great site to visit and try to get a feel for Central Texas.

McLennan County Appraisal District (MCAD)
Texas property taxes tend to be higher than a lot of other states. Part of the reason for the higher property taxes? Texas’ lack of a state income tax. Before you get “sticker shock” over the tax amount, you may want to browse around the website to get an idea of what the property taxes would be on any home you’re thinking about buying.

Note:
Be aware though that the value for taxes may not be an accurate estimate of the MARKET price of a home. A general rule in real estate is that there are 3 “values” for any given home:

1. The appraised value on which the county will asses taxes (Tax Appraised Value)
2. The appraised value on which a bank or lender will use in the process to determine whether or not they’ll make a home loan available for you on that property
3. The market value for a home. The amount someone (a potential home buyer) would be willing to pay for the home

In a perfect world, all of these amounts would be the same. But this is far from a perfect world! Unfortunately, when it comes to comparing home purchase price vs. tax appraisal, there can be  (and many times, are) discrepancies… sometimes WAY OFF!

For example, if you’re looking at buying a home for let’s say, $200,000 and the week before you supposed to close on your new home, you go to the appraisal district website and notice that the appraised value is at $225,000, don’t automatically think that you got a great deal and you got it for $25,000 less than it’s worth! And vice-versa. Many factors can play into inaccurate tax appraisals. Maybe the home owner never protested their tax appraised values. Maybe the MCAD website has the wrong square footage, etc….

Actually, I was kind of reluctant to suggest the county appraisal district’s website. Sometimes it does nothing more than confuse people when they see a different value listed for tax purposes than what they are actually paying for the house. Just be aware, when you’re on the county’s website looking at property information, look at it strictly for the dollar amount of taxes that will need to be paid. DON’T use that info to try to get an idea of the home’s market value. The best way to help determine actual market value for a home is by having your Realtor pull comps (recent sales information) for the neighborhood and compare the price per square foot of homes that are active, sold, expired, and under contract. Also, other variables will play into an estimate of market value – age, condition, location, amenities of that home vs. other homes in the neighborhood, etc…

City Data
This a great resource for learning about different cities. They have a ton of information regarding the people, population, climate, economics, etc…

Great Schools
Don’t know which school district you want your children to attend? Greatschools.net is a valuable website for those folks seeking education information! It has parent reviews, demographics, number of pupils to teacher, classes offered, etc…

Texas Education Agency
The TEA website is another excellent resource for people concerned with school districts. The Texas Education Agency does post state ratings/rankings for all the schools. Is the elementary school that you child would be attending rated as recognized or unacceptable? Find out straight from the state.

Those are just a few websites that you can visit to gain a little insight on what to expect from Waco, Waco real estate, and life in Waco. Of course, if you have any questions call me anytime!