Fort Worth TX Mitchell Group Real Estate Podcast

Your Latest Market Update

cassidy@getvyral.com (Jason Mitchell) — Tue, 4 Feb 2020 11:12:00 -0800

Here’s what you need to know about how the 2019 market performed and what experts are saying about 2020.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Today we’re discussing the 2019 annual housing report as released by the Metrotex Association of Realtors.

In 2019, we saw the median sales price continue to rise, ending the year up 3.2% from 2018 at $273,500. Also strengthening our market was an increase in active listings, up 13.7% from 2018 to 24,945.

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Strengthening our market was an increase in active listings, up 13.7%.

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Closed sales were up 3% at 103,189. The months’ supply of inventory held relatively steady at 2.3, while the average days on market increased by 19% to 50 days.

Overall, these numbers indicate that the local market was strong last year, and most experts agree that 2020 will be similar.

If you have any further questions about the health of our market, or you’re interested in buying or selling a home, I’d love to hear from you. Comment below or reach out via email or phone anytime.

How to Sell This Spring

cassidy@getvyral.com (Jason Mitchell) — Tue, 7 Jan 2020 14:13:00 -0800

Here are the three tips you must focus on to sell your home this spring.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

I often speak with homeowners who are thinking about making a move but don’t know where to start. If this predicament sounds familiar, the first thing you must do is meet with an agent as soon as possible to develop a game plan.

Once you meet with an agent, there are three steps you need to take:

1. Determine your target move-out date. Oftentimes, it can take a few weeks to get your home market-ready, and in some cases, it can take months to find the right buyer.

"In the state of our current market, missing on price just a little bit can cost you thousands of dollars and extensive time on the market."

2. Prepare your home for sale. Determine your budget for any necessary repairs and ask your agent to help guide you on how to allocate those funds so that you get the best return on investment and maximize the equity in your home.

3. Make sure your agent has a proper pricing strategy. This will help your home sell for top dollar and within the time frame you need. In the state of our current market, missing on price just a little bit can cost you thousands of dollars and extensive time on the market. That’s why it’s critical to hire an agent you trust to set the right price for your home.

If you’d like to know more about selling this spring or you have any other real estate questions, feel free to give me a call or send me an email. I’d be happy to help you.

The Latest Updates to Our Real Estate Market

cassidy@getvyral.com (Jason Mitchell) — Thu, 17 Oct 2019 09:52:00 -0700

Get familiar with the latest numbers in our real estate market today.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Here is your autumn 2019 market update:

Let’s dive right into the numbers: Last month, new listings were down 1.2% across the board, while inventory grew 1.8%. This is mainly due to the 9.2% decrease in pending sales last month. These numbers demonstrate that the market is starting to shift away from that solid seller’s market and into more of a balanced market.

"The market is starting to shift away from that solid seller’s market and into more of a balanced market."

The median sales price is up 3.9% year over year. Home values have continued to increase, but it is taking a little longer for those houses to sell, with the average days on market rising 11.2% year over year. Because of this, the months’ supply of inventory on the market was up 3% as well, moving up to 3.5 months of inventory. This further proves that supply increases relative to demand.

Many homeowners in our market have elected to refinance their home recently due to the drastic decline in interest rates, but they are still at historically high levels.

For more information on the market or how we can help you buy, sell, or invest in your next home please give me a call, shoot me a text, or send me an email. We’d love to help!

The Past, Present, & Future of Our Local Market

cassidy@getvyral.com (Jason Mitchell) — Tue, 3 Sep 2019 10:18:00 -0700

What’s happening in our local market? And how have national economic developments scale played a role in that? Let’s discuss.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Today I’m here to quickly update you on the current state of our Dallas-Fort Worth market.

Before we talk local market numbers, I’d like to go over a few relevant points about our economy at the national level. This past July, U.S. economic expansion dating back to June 2009 hit its longest streak in our nation’s history, surpassing the previous all-time mark that lasted from 1991 to 2001. And while our economy should hold up well through the remainder of 2019, the prevailing sentiment among economists is that a recession looms ahead.

"We may not have another moment like this for years to come, so take advantage of it!"

During this 120-month record stretch, we saw our gross domestic product (GDP) increase by 2.3% year over year—a slight dropoff from the 1990s at 3.6%. What’s more, our national unemployment rate has dropped dramatically: In 2009, it reached a whopping 10%, but has since fallen to 3.7%.

Even so, a lot of consumers continue to struggle financially. On one hand, low mortgage interest rates have helped to offset housing affordability, but on the other, rising home prices are outpacing median household income growth. To further drive economic prosperity, the Federal Reserve recently reduced the benchmark interest rate to 2.25%—something the central bank hasn’t done in over a decade.

This is a lot of information to take in, and it begs the question: What does it all mean for our local housing market? Let’s pore over the numbers:

In July 2019, the number of new listings in North Texas was up 2.5% compared to the same month last year, reaching just over 15,000. Meanwhile, pending sales have dropped under 10,000 units—about a 6% decrease.

This is a recipe for inventory growth, and in our market, we’ve seen a 4.8% supply increase year over year. Right now, 43,000 units are listed on the market. At the same time, the median price point for the Dallas-Fort Worth market is up 2.9% at $271,000. In keeping with our higher inventory, the average home is spending 21 days on the market—a sharp increase of 21%. And our months’ worth of inventory has by increased 9.1% from last year.

Looking at the big picture, interest rates are considerably lower than they’ve been the last two years, but supply is higher than it’s been in that same time frame. We’re beginning to see signs of stability as our market balances out. All in all, it’s a great time to sell your current home and get into your new home. We may not have another moment like this for years to come, so take advantage of it!

If you have any questions about today’s market or you’d like more information about how our team can you help you buy, sell, or invest in real estate, please reach out to us. We look forward to serving you!

The Current State of the DFW Real Estate Market

cassidy@getvyral.com (Jason Mitchell) — Mon, 1 Jul 2019 10:28:00 -0700

What does the DFW real estate market look like right now? Keep reading to find out.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

I’ve been getting a lot of questions recently from a lot of you about the current state of our real estate market. There are four key factors that do a pretty good job at explaining where we’ve been and where we’re headed:

1. Active listings. So far, we’ve had an average of just over 23,000 listings on the market, which is up just over 23% from what we saw in 2018.

"The market is up 2% in average sale price year over year."

2. Days on market. This is a measure of how long it takes for a home to find a buyer after it goes active on the MLS. The average has gone up by 14% year over year, going from 49 last year to 56 this year.

3. Average sales price. The average price is up from $301,000 to $307,000—a 2% year-over-year increase.

4. Interest rates. They’ve fallen below 4% for the first time in over two years. This should get a lot of homebuyers off the fence!

The first two factors indicate that the market has started to stabilize into more of a traditional market. The last two indicate that this is still a strong market for buyers and sellers alike.

If you're looking to buy or sell, now might be a better time than ever. Don’t hesitate to give me a call or send me an email today if you have any questions. I look forward to hearing from you soon.

What Home Improvements Bring the Greatest Resale Value?

cassidy@getvyral.com (Jason Mitchell) — Tue, 4 Jun 2019 10:54:00 -0700

Before you sell your home, you might want to make some improvements to increase its value. Here are three things that will bring you a higher sale price.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Summer is here, which means home selling season is here as well. Probably one of the most common questions I hear around this time of year is, “What should I do to my home before putting it on the market?”

For all of you sellers out there watching, here are a few tips to help get your home in tip-top shape before you list it on the market that will give you a great return on your investment:

1. Curb appeal. This is so important because it’s the first impression that buyers have of your home. The first picture that pops up online and the first thing they’ll see in person is the front of your house. When you have great curb appeal, you have such a huge advantage. You don’t need to go spend a lot of money on professional landscaping. Just make sure your yard is mowed, flowerbeds are clean, and maybe power wash the exterior and driveway of your home. Adding a fresh coat of paint to your porch is a good idea.

"When you have great curb appeal, you have such a huge advantage."

2. Paint. You should absolutely consider painting your home before you sell it. A Zillow study has shown that yellow-painted homes sell for $3,000 less than usual on average, and homes that are painted with the right neutral colors can sell for $6,000 more than expected. If you have any questions about what a good color would be for your home, don’t hesitate to reach out to us.

3. Make some bathroom improvements. A middle-of-the-road bathroom remodel will give you a huge return on your investment. If it hasn’t been updated in a long time, it’s a good idea to refinish the tub, update the light fixtures or sink, or put some fresh tile flooring in. This is going to yield you a $1.71 return for every $1.00 that you spend. It’s a great way to get money for your property and get it sold faster.

I hope you find these tips helpful in your real estate journey. If you have any other questions about buying a home, selling a home, or real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

The Latest Numbers in the Fort Worth Real Estate Market

cassidy@getvyral.com (Jason Mitchell) — Tue, 14 May 2019 09:53:00 -0700

Buyers and sellers can benefit from where our real estate market is currently at. Here’s how.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

The Fort Worth housing report is finally in for March 2019. Today I just wanted to take a moment of your time to discuss the numbers and what they mean for our market going forward. The first piece of good news is that home values are up by 4.1% in the past year and the median sale price is up to $229,000. If you plan on purchasing a home in the near future, I’m also happy to report that inventory is up 26% year over year. This gives you a great opportunity to negotiate the very best price with the seller of the home that you’re looking to purchase. Mortgage interest rates are also at the lowest point we’ve seen in the past year.

For more information about how the Mitchell Group can help you achieve your buying or selling goals, please reach out to us. We'd love to speak with you!

10 Tips That Will Help You Prep for Your 1st Home Purchase

cassidy@getvyral.com (Jason Mitchell) — Mon, 22 Apr 2019 06:27:00 -0700

We have 10 tips to share with you today that will help you prepare for your first home purchase.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

If you plan on buying your first home in the near future, here are 10 tips that will help you prepare so you find the best fit possible:

1. Check your credit. A high credit score makes it easier to qualify for a low interest rate.

2. Decide how much you want to spend. While a lender can give you an idea of how much mortgage you can afford, it’s essential to create a budget so you know what you’re comfortable spending on your monthly mortgage payment.

3. Start saving. You’ll need cash reserves in order to purchase a home, and you’ll need to be able to prove to a lender that you can afford payments that might be higher than your current rent payments.

4. Attend a home buying class or seminar. Many lenders, agents, and local nonprofit agencies offer free courses that will walk you through the home buying process and educate you on the financial responsibilities of owning a home.

5. Earn extra cash. If you’re low on cash, as most first-time homebuyers are, consider taking the necessary steps to cut down on your spending or see what you can do to increase your income (selling some of your stuff, taking a part-time job, etc.).

"It’s a good idea to talk with multiple agents so you have a better chance of finding one you trust and who has your best interests in mind."

6. Start looking at neighborhoods. Unless you know where you want to live, set aside some time to visit a variety of areas. Exploring different locations will help you narrow your priorities.

7. Consult a lender. The sooner you do this, the sooner you’ll know where you stand in terms of getting a mortgage and what you have to do to improve your standing.

8. Visit open houses. Attending these early in your search will help you understand what’s available that may fit into your budget.

9. Investigate down payment assistance programs. It pays to explore these programs, and you don’t have to be destitute to qualify for them. There are over 2,000 across the country that can help you.

10. Interview real estate agents. It’s a good idea to talk with multiple agents so you have a better chance of finding one you trust and who has your best interests in mind. Most importantly, choose an agent who’s the right fit for the job.

If you’d like to know more about how you can prepare for your first home purchase or you have any other real estate needs we can take care of, don’t hesitate to reach out to us. We’d love to help you.

The Top 5 Things Sellers Overlook

cassidy@getvyral.com (Jason Mitchell) — Mon, 1 Apr 2019 13:20:00 -0700

Don’t forget to do these five things when selling your home!

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Today we’ll be going over the five things home sellers often overlook:

1. Staging. People forget the importance of having a home professionally staged. Though you may like the way your furniture is arranged, it may not be the best use of your home’s space or it may not showcase the great qualities of the room.
2. Curb appeal. The outside of your home is the first impression it makes. If you fail to give it the attention it needs, buyers may be turned off before ever setting foot inside your home.
3. Odors. Unpleasant smells can be deal-breakers to a lot of buyers. The smell of pets, smoke, and other unpleasant scents can be the reason that your home sits on the market for too long.
4. Lighting. Buyers love a light, bright room. Replace burnt-out light bulbs and open up your windows to bring in natural light; this will create an atmosphere that any buyer will love.
Minimizing decor. In addition to depersonalizing your home, you may want to tone down your decorations. It’s safe to stick to neutral wall colors, such as white, gray, or taupe. Think of it as a blank canvas—let the buyer be the artist of their new home.

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Let the buyer be the artist of their new home.

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If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.

What Questions Should You Ask at an Open House?

cassidy@getvyral.com (Jason Mitchell) — Fri, 8 Mar 2019 11:40:00 -0800

Open houses are not only a great opportunity to see a home up close, but they’re also a perfect time to ask some important questions.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

When going to open houses, it’s so easy to get caught up in the excitement of house hunting. I get it. The home is usually beautifully staged, it smells great, and a helpful agent is there to point out all the charming details and thoughtful upgrades.

However, it’s important to look at any home you plan to buy with a critical eye. Here are a few questions that you should be asking, room by room:

Living Room
What’s underneath the carpet? If you can get a peek, take the opportunity. The last thing you want to find out after closing is that you have major floor issues.

Kitchen
How old are the appliances? Are they covered under warranty?

"The last thing you want to find after closing is that there are major issues."

Bedrooms
What are the floor dimensions?

Bathrooms
What’s the water pressure like?

Roof
How old is it?
What kind is it?
Is there a home survey available?

Finally, you’ll also want to ask about the age and condition of major appliances, including HVAC systems and plumbing.

If you have any questions for us or would like to discuss this topic further, don’t hesitate to give me a call or send us an email. We look forward to hearing from you soon.

What’s the Key to Winning in a Multiple-Offer Situation?

cassidy@getvyral.com (Jason Mitchell) — Fri, 1 Feb 2019 12:28:00 -0800

In order to approach multiple-offer situations, you need to be prepared whether you’re a buyer or a seller. Here are some tips for both.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

One of the topics we get asked most frequently about is multiple offers. In the past, we were receiving multiple offers on pretty much every home that we listed. In the last few months, however, the market has slowed down and homes are taking longer to sell. Once we get into the spring, we should start to see homes receiving multiple offers much more frequently. We’ve got tips today for both buyers and sellers who find themselves in multiple offer situations.

For buyers, submitting the highest offer isn’t the only way to win. For a vast majority of my home seller clients, price is the first thing they look at. However, you don't always have to be the highest offer. Sometimes a cash offer that’s lower and has fewer contingencies is preferable to a financed offer.

"Our most savvy home sellers price just below market value."

For sellers, I usually recommend accepting the cash offer over the financed offer, even if it’s a little lower. Cash transactions are the easiest to get through and present the lowest amount of risk of a deal falling apart.

Our most savvy clients tend to price their home slightly below market value. From there, buyers will find it, make multiple offers, and drive the price up. People are hesitant to do this, but underpricing your home is a much more safe route in this market than overpricing it.

There are a lot of of variables that go into a contract that may cause a seller not to pick the highest offer—things such as contingencies and the type of offer.

If you have any questions about multiple-offer situations in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Ease Your Holiday Stress With These 5 Tips

cassidy@getvyral.com (Jason Mitchell) — Tue, 4 Dec 2018 11:11:00 -0800

Just in time, today I want to provide you with a few tips to reduce your holiday stress.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Do you love the holidays? Most people do. But do you love the stress that often comes along with them? Probably not. There are ways of handling this kind of stress, so take a deep breath and follow these easy tips:

1. Skip traditional gifts in favor of money-saving alternatives. You can do this by giving a gift to a group, or giving small stocking stuffers, rather than one big gift.

2. Take no-sweat holiday pictures. If you’re thinking about doing a picture in front of a lit Christmas tree, disable your camera flash. Also, if you’re going to visit Santa, bring a picture of yourself or someone that your child knows with Santa so they can feel at ease and know that others meet with Santa, too.

3. Try not to regift. Stay away from those awkward situations and make your gift personal.

4. Start saving early. You can allocate a little money each week and make the holidays a little more friendly on your wallet.

5. Don’t forget your holiday spirit. The holidays are about spending time with friends, family, and loved ones, not just gifts.

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The holidays are about spending time with friends, family, and loved ones, not just gifts.

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Merry Christmas to you all! If you have any questions about real estate, feel free to contact us at any time. Until then, have a great holiday season!

Why You Shouldn’t Rely on Zillow’s Zestimates for an Accurate Home Value

cassidy@getvyral.com (Jason Mitchell) — Tue, 23 Oct 2018 14:53:00 -0700

Whether you’re a buyer or a seller, it’s not always a good idea to rely on Zillow’s Zestimates, and today I’ll tell you why.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

It’s not always a good idea to rely on Zillow’s Zestimates to find a home’s value.

Why? Zillow uses an algorithm to determine a home’s value, much like the algorithms used to assess the value of a large pool of mortgages bought and sold in the market.

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Zestimates can be off by as much as 25%.

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According to market research (and even Zillow’s own website), Zestimates can be off by as much as 25%. Zillow maintains that their Zestimates are a good place to start in terms of valuing a home, but they also state the following:

“Please know that we, Zillow, do not intend for the Zestimate to replace a comparative market analysis, as they can take into account market intricacies that the Zillow Zestimate cannot.”

The truth is, a Zestimate simply can’t replace the market expertise of an agent such as myself, who studies the market all day long.

If you’re curious what your home is worth in today’s market or you’re thinking about buying or selling, don’t hesitate to give me a call or send me an email. I’d love to help.

How Are Interest Rates Affecting the Real Estate Market?

cassidy@getvyral.com (Jason Mitchell) — Fri, 14 Sep 2018 13:39:00 -0700

The average mortgage rate is at a seven-year high. Is this what’s behind the shift we’re seeing in the market?

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

The 30-year fixed mortgage rate currently stands at around 4.77%. That's near a seven-year high, and almost 1% higher than just a year ago. This is the result of a steady rise starting last September and ending this May.

What impact is this having on the real estate market? It's certainly true that affordability is down. In fact, one estimate from June found that home affordability is at a 10-year low. This is translating into fewer home sales, fewer viewings, and fewer mortgage applications.

However, I don't believe that the shifts in the mortgage rate are the primary movers of the changes we're seeing in the real estate market. In fact, even at its current level, the mortgage rate is still historically low.

Instead, the big reason for the changes in the real estate market is the ongoing growth in prices. Over the past several years, home prices have gone up at close to twice the rate of inflation, and have far outstripped the growth of incomes.

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Over the past several years, home prices have increased at twice the rate of inflation.

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The price increases, in turn, have been caused by a lack of inventory, which has been shrinking for the past three years. In my opinion, it’s this lack of inventory (and the resulting hike in prices) that explains most of the effects on the real estate market that I listed above.

If you're looking to sell, you should still have no trouble doing so. Demand continues to outstrip supply, and even with dropping affordability, it's very likely that you would find a buyer quickly and at a top price.

If you're looking to buy, the picture is more complex, because it's so hard to predict what the mortgage rate might do in the near term. One thing we do know is that the severe lack of inventory is unlikely to change any time soon.

As always, if you have questions about the Dallas-Fort Worth real estate market, whether you're buying or selling, you can give me a call or send me an email. I'm here to help.

Why Should You Consider Selling Your Home in the Fall?

cassidy@getvyral.com (Jason Mitchell) — Tue, 14 Aug 2018 12:49:00 -0700

Fall is an underrated time for home sellers. Here are a few reasons why.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Sometimes it pays to go against the crowd. The real estate market is definitely at a peak during the spring and summer, but going against this trend and listing your home in the fall can have some great benefits:

1. Buyers are more serious. During the spring and summer, many buyers are more curious than actually committed to purchasing a property. On the other hand, buyers in the fall tend to be more serious. Many have been searching throughout the summer and have not found their perfect home yet. Others are simply forced to look for a new home because of a new job, a work relocation, or because they want to complete their move ahead of the holidays. In other words, fall buyers make up in dedication for what they might lack in numbers.

The fall is a great time to make a move up.

2. There's less competition. It's no secret that most homes are listed in the spring and summer. However, homes that are not sold by the end of the summer are often delisted. Otherwise, they start to draw less interest because of the time they have spent on the market. If you list in the fall, you have the benefit of standing out, as well as facing less competition than during the "hotter" seasons.

3. It's easier to move up. If you're looking to buy a new home and also sell your current one, then the fall market may offer the best opportunity to do so. You will enter the market with confidence and without stress, while many sellers who have been unsuccessful in selling their homes during the summer will be more eager to sell during this time. This can lead to very flexible negotiations that will work in your favor.

If you have any questions about why the fall is such an opportune time for you to sell or about the home selling process in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Protect Yourself Against These 3 Real Estate Scams

cassidy@getvyral.com (Jason Mitchell) — Tue, 17 Jul 2018 12:54:00 -0700

There are three real estate scams I’ve become aware of recently that you need to know how to protect yourself against.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

It can be a scary world out there. While the majority of people are good and honest, a few bad apples always try to take advantage of others.

Unfortunately, the real estate market is no different. Today I wanted to let you know about some real estate scams I've become aware of recently:

1. The mortgage closing scam. This scam is spreading across the country. It has become so prevalent that the FBI estimates it has led to over $1 billion in stolen or diverted funds in 2017 alone. It starts when hackers gain access to a real estate agent's email account. Then, when it's time to close a deal, the hackers, posing as the real estate agent, send instructions to the homebuyer on where to wire the money.

Of course, it is only after the buyer has sent thousands of dollars to an unknown bank account that the truth comes out—the real estate agent wasn't actually the one reaching out, and the buyer has been scammed.

2. Fake real estate lawyers. This scam is similar to the first one, in that the scammers will impersonate somebody legitimately involved with a deal. In this case, the hackers will impersonate a real estate lawyer who is associated with a particular home sale.

Find a real estate agent you trust to represent your best interests.

Then, at the time of closing, they will contact the buyer, either by email or over the phone, and tell them the wire destination has been changed. If this scam works, the homebuyer could again be out thousands of dollars.

3. The bait-and-switch. Unlike the first two scams, this scam targets sellers. It also doesn't require any hacking or impersonation—just a dishonest buyer. Here's how it works: A buyer makes an offer that's well above the listed price, the seller happily agrees, and the contract is signed.

But then, the buyer starts procrastinating, making excuses, and dragging out the process for months or even a year. In the meantime, the seller continues to pay costs for the home, and is getting more and more emotionally worn out. In the end, the unscrupulous buyer flatly says they can only buy the home at a lower price, usually under the listed price. And the seller, desperate by now, frequently agrees.

So, how can you protect yourself against these and other scams?

For one thing, avoid sending account information over email. Confirm everything over a phone call (to a number that you already know to be valid)—or even better, in person. And ultimately, find a real estate agent you trust to represent your best interests.

If you are ever in need of a trustworthy real estate agent, my doors are always open. If you have any other questions or you are interested in buying or selling a home, don’t hesitate to give me a call or send me an email. I would be happy to help you.

What Does Reduced Home Affordability Mean for You?

cassidy@getvyral.com (Jason Mitchell) — Fri, 25 May 2018 11:52:00 -0700

Home affordability is shrinking fast. Here’s what you should do to get ahead of the curve.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Home affordability is shrinking rapidly, according to research by Arch Mortgage Insurance.

In the first quarter, affordability (defined as the size of the monthly mortgage payment needed to buy a home) dropped by 5%. This was mainly due to the increase in mortgage rates. As a consequence, more people are now stretched and taking on greater debt relative to their income. Other buyers are being pushed out of the market altogether.

And that's not all. Affordability is expected to drop an additional 15% to 20% by the end of the year. That's because home prices continue to rise, and the Federal Reserve is expected to ratchet up its reference interest rate, which often leads mortgage rates, three more times this year.

There’s no need to panic if you’re a home buyer.

What does this mean for you?

If you're looking to sell, you won't have a hard time finding a buyer. Even with decreasing affordability, demand for homes still far outstrips supply. That means that this spring and summer might see an additional rush on the real estate market. It also means that right now might be a very good time to list your home if you've been thinking about selling for a while.

On the other hand, if you are thinking of buying a home, you might think that this news spells doom for you. However, there's no need to panic. While affordability is dropping, it is still well above historical averages (just like current mortgage rates). In fact, Arch Mortgage Insurance estimates that homes are now 15% to 20% more affordable than they have been in the period from 1987 to 2004. When rates go up, it will affect what your monthly payments will be on a new home. From this perspective, it makes sense to move now in case you've been looking to buy before rates rise further.

So what's the next step?

If you’re thinking about buying or selling a home, give us a call. We’d be happy to answer any questions you may have. We look forward to hearing from you soon.

3 Tax Law Changes to Know

cassidy@getvyral.com (Jason Mitchell) — Fri, 9 Feb 2018 07:57:00 -0800

What were the major changes made to the new tax code? I’ll break them down right here.

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As you’ve more than likely heard by now, a new tax code was placed into law at the end of 2017. But what’s new about this tax code? What impact will it have on the real estate market?

There were three major changes proposed to the tax code:

1. Changing the requirements for the exclusion of gain on the sale of a principal residence. The original proposal was that owners would need to live in their house for at least five of the last eight years to claim this exemption, but the new tax code ended up foregoing this change; owners still only need to have lived in their house for at least two of the last five years. Because the change was avoided, this will have no impact on the market.

2. The reduction on the limit of the mortgage interest deduction (MID). Originally, the proposal was to reduce the limit on the MID from $1 million to $500,000, but the limit on deductible debt was actually reduced to $750,000 for loans taken out after December 14, 2017. Assuming a 20% down payment, this will only impact buyers purchasing homes between $938,000 and $1,250,000.

The elimination of SALT deductions would have been tremendously detrimental to real estate had it passed.

There are two opposing opinions about how much this change will affect the market as a whole. Calculated Risk’s Bill McBride says that it will have very little impact on the housing market. However, Capital Economics suggests that “the impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.” 30% of all Americans itemize, so those who don’t will receive a big tax break.

3. The elimination of the state and local tax deduction (SALT), which includes property taxes. This would have been tremendously detrimental to real estate had it passed. Instead, the new tax code allows an itemized deduction of up to $10,000 for SALT, so, while it wasn’t eliminated completely, it was still limited.

Bill McBride says, “SALT will have an impact on housing in some areas. Some people might choose to live in one state over another based on taxation. This could impact demand in certain states.”

So what does all of this mean to you? To understand how the Tax Cuts and Jobs Act will affect you personally, be sure to check with your accountant or tax advisor.

Now that you have a better understanding of how these changes might impact housing, if you have any questions about buying or selling your home, consult with a local real estate expert like the Mitchell Group to get the answers you need and deserve.

The Mitchell Group Has a Special Holiday Message for You

cassidy@getvyral.com (Jason Mitchell) — Wed, 20 Dec 2017 07:31:00 -0800

Happy Holidays from The Mitchell Group.

The Mitchell Group would like to wish you Happy Holidays, Merry Christmas and best wishes for the new year! We want to thank you all for such a wonderful year. Your support means the world to us and we want thank you from the bottom of our hearts.

Please watch this short video for a special holiday message :)

5 Things Potential Homebuyers Should Know

cassidy@getvyral.com (Jason Mitchell) — Thu, 12 Oct 2017 07:54:00 -0700

Thinking about buying a home? If so, we’ve got some great tips to share.

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My name is Cara Holt, and I’m a local Realtor here in Ft. Worth. I’m often told by potential clients that they want to buy a home, but they don’t know where to start. I put together a list of five tips to help you out if you’re in the same kind of situation:

1. Select a trusted agent. You want somebody who understands your needs, who can guide you through the process, who knows market strategies, and who can negotiate on your behalf.

2. Select a local mortgage broker. If you don’t have one that you know and trust, I’d be happy to recommend several fantastic local lenders to you. It’s important to work with one because you’ll need to get pre-qualified before going out to look at homes. The pre-qualification will let you know what kind of home you can afford. With record low interest rates, you might be surprised at how far your money can go in this current market.

Don’t sweat the small stuff.

3. Drive around the neighborhood(s) you’re interested in. Drive around and make note of the local schools, stores, parks, as well as your daily commute.

4. Be prepared to make a strong offer. This is where the pre-qualification letter comes in handy. You’ll need one to make an offer because we’re in such a competitive and fast-moving market. Having a knowledgeable agent who can run comps for you and help you write an offer is an invaluable resource as well.

5. Don’t sweat the small stuff. Every home you see will have minor aesthetic imperfections and will need some kind of repairs. Focus on the big picture things. The things that are most important to you and your family.

I’m not just here to show you homes, I’m here to be a guide and walk you through the process hand in hand to make it as stress-free as possible. I highly encourage you to give me a call at (817) 688-2026 or send me an email to Cara@DFWhomeseeker.com if you have any questions at all. I’d love to talk to you about how we take care of our clients. I look forward to hearing from you soon.

The Latest Numbers Are in From Our Local Market

cassidy@getvyral.com (Jason Mitchell) — Thu, 24 Aug 2017 10:25:00 -0700

It’s time for a July 2017 market update. Let’s take a look at what has
been going on in the market and how it affects you.

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Right now, the Dallas/Fort Worth Real estate market is absolutely on fire.

Prices have continued to rise over the course of the summer due to the lack of inventory that we’re seeing across most markets. This is also happening because of our still-low interest rates.

Today, I’d like to talk a little bit about the North Crowley area, specifically.

Last month there was 1.7 months of available housing, which hasn’t changed since this time last year. The average days on market, too, has stayed the same—about two weeks.

Home prices, however, have risen. In fact, they’ve gone up by 15%. This year they were at $203,000. Last year, the average home sold for $177,000.

Houses right now are selling quickly and for top dollar.

Also, in 2017 the average home is selling for $93 per square foot compared to $84 per square foot last year.

But, what does this mean for you?

Houses right now are selling quickly and for top dollar. For this reason, now is still a great time to list. Our market is still hot.

However, buyers, too, have a lot of opportunities that they can take advantage of. Today, we’re still experiencing historic lows in terms of interest rates.

This gives buyers a lot more purchasing power than they may have had in the past. Even though it’s a seller’s market, buyers shouldn’t shy away from seizing this opportunity.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What Does the Fed’s Recent Rate Hike Mean for the Real Estate Market?

cassidy@getvyral.com (Jason Mitchell) — Tue, 18 Jul 2017 08:46:00 -0700

The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it.

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On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market?

While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market.

First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates.

Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices.

These increases will not have any significant impact on our market.

Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending.

Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year.

In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable.

If you have any questions about our market or you’re thinking of buying or selling a home, give me a call or send me an email at. I’d love to help.

What’s the Latest Real Estate News in the 76133 Neighborhood?

cassidy@getvyral.com (Jason Mitchell) — Thu, 4 May 2017 09:33:00 -0700

The latest statistics tell us that a strong seller’s market got even stronger this year in the 76133 zip code. Here’s what that means for buyers and sellers.

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What are the latest developments in residential real estate from the 76133 zip code? The way the numbers from March 2016 compare to March of this year paint an interesting picture.

In March 2016, we had 1.4 months of housing inventory available. In March 2017, we saw that number get slashed in half to 0.7 months. That’s a decrease of 50% and means if no new homes came on the market, it would take approximately just three weeks to sell all existing homes for sale.

Our average days on market decreased 26% from 35 days in March 2016 to 26 days in March 2017. The average sales price increased 26% from $129,000 in March 2016 to $156,500 in March 2017. The average sales price per square foot increased 21% from $73 in March 2016 to $84 in March 2017.

What was already a hot seller’s market got even hotter in 2017.

These numbers tell us that what was already a hot seller’s market got even hotter in 2017. If you’re thinking of selling your home this year, you can expect multiple showings within the first few days and a likely sales price at or above the current asking price. If you’re thinking about buying a home in the 76133 area, you need to move quickly because most homes are selling at or above their list price.

If you have any further questions about our market or you’re thinking about buying or selling a home, give me a call, shoot me a text, or send me an email. I’d be glad to help you.

A Market Update for the TCU Area

cassidy@getvyral.com (Jason Mitchell) — Mon, 17 Apr 2017 13:07:00 -0700

The 76109 zip code is a great place to live for many reasons. Here are a few of them, from a real estate perspective.

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Today we’re coming to you from the lovely Overton Park, right across the street from the highly coveted Tanglewood Elementary School. Our family moved here specifically because of the lovely schools, awesome park, and wonderful community.

I’ve been getting some great feedback from my first couple videos, but the question everyone keeps asking is, “What’s going on in my neighborhood?” We’re going to focus on the numbers for the TCU area, or the 76109 zip code. This area includes neighborhoods such as Tanglewood, Overton Park, Westcliff, and others. We’re going to compare the numbers from the first quarter of 2017 to the numbers from the first quarter of 2016.

Now let’s dive into the numbers, starting with inventory. In the first quarter of 2016, it took an average of 57 days for a home to sell. Fast forward to this year, and we saw a slight increase to 3.2 months of supply. We’re still firmly in a seller’s market.

Homes are taking a little longer to sell now, too. It took a home an average of 57 days to sell last year, but this year it’s taking an average of 66 days. That is a 16% increase.

Homes are taking longer to sell, but they’re selling for more money.

One positive trend we’re seeing is that the average home price is up by 3%, from $419,105 to $430,598. The average price per square foot is also up from $168 to $179, a 6.5% increase.

What does all this mean for you? Well, it’s an indication that the market is starting to slow down just a bit and we’re hopefully returning to a more healthy and stable market. For the time being, however, homes are still selling fairly quickly and home values are still increasing.

If you have any questions for me or you’re interested in buying or selling a home in the DFW area, give us a call or send us an email. We look forward to hearing from you soon.

How's the Single-Family Residential Market Doing in Fort Worth?

cassidy@getvyral.com (Jason Mitchell) — Wed, 22 Mar 2017 08:41:00 -0700

In the last five years in our single-family residential market, inventory has shrunk, the average days on market has decreased, and prices have increased.

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Today I want to give you an update on our current market for single-family residential homes by sharing some statistics from last month and comparing them to some numbers from five years ago in February 2012.

Last month, we saw the housing inventory dip down to a 1.2-month supply. In February 2012, we had 5.3 months worth of inventory. That means we’ve seen a decrease of 77% in housing supply over the last five years.

Next, let’s look at the average days on market, or the average time it takes a home to sell once it is placed on the market for sale. Last month, the average days on market was 34 days. In February 2012, the average was 81 days. That’s a decrease of 58%.

If you’re thinking about selling, there’s no time like the present.

Last but not least, we examine the average sales price. At the end of last month, the average home sold for $195,000. In February 2012, the average home sold for an average of $113,500. That’s a 72% increase!

What do these numbers mean for you? If you’ve owned a home or multiple homes over the last five years, you’re probably feeling pretty good because you’ve probably seen a huge increase in your net worth. If you’re thinking of selling a home this year, there’s no better time than the present. We continue to see inventory levels shrink, the average days on market stay low, and prices climb.

If you have any questions about our market or you want to talk about your particular situation, give me a call, shoot me a text, or send me an email. I’d love to speak with you!