<?xml version="1.0" encoding="UTF-8" ?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom">
    <channel>
        <atom:link href="http://www.newoption.com/blog/rss/" rel="self" type="application/rss+xml" />
        <title>A New Option In Real Estate</title>
        <link>http://www.newoption.com/blog/</link>
        <description>Dallas Flat Fee Real Estate Brokerage. Great service and fair pricing to Sellers and Buyers. No Commissions. Flat Fee MLS Listing for Sellers. Cash Back to Buyers.</description>
        <item>
            <guid>http://www.newoption.com/blog/the-paradox-of-the-commission-based-real-estate-model.html</guid>
            <link>http://www.newoption.com/blog/the-paradox-of-the-commission-based-real-estate-model.html</link>
            <author>info@newoption.com (New Option Realty Admin)</author>
            <title>The Paradox of the Commission-Based Real Estate Model</title>
            <description> <![CDATA[ 
As professional Real Estate Agents, we are supposed to act in the best interest of our clients, aka YOU, not our own.  However, the traditional commission-based compensation model makes it very difficult to do so!


Why is that, you may ask?


If you have ever bought or sold a house, you know that the agents involved in the transaction get paid a percentage of the sales price, even for the Buyer's Agent!  Yes, the Buyer's Agent, the one who's been driving you around, showing you homes, giving you advice etc. Yes, he/she gets paid by the Seller, based on a percentage of the sales price (normally 2.5% - 4%).  At first glance, this seems to be a great deal for you, Mr. Buyer, right?  You get all of the agent's services for FREE! It's the Seller who pays the agents!  Why do you care? The truth is, if you really think about it, nothing in life is free! The Seller transfers that cost of paying for your agent into the sales price, which means You are the one who is paying for it, after all!


Take several steps further, think of the answers for the following questions -




If your agent is paid a percentage of the sales price, how is he/she incented to get you the lowest price possible??? It's mathematically disincentive for the Buyer's Agents to take the longest amount of time to show you around and get the lowest price possible at the end of the day.  Sure, there are lots of good agents out there who fit this description precisely, but the model is just paradoxical in order to implement this principle.


Imagine a couple houses you've looked at and liked.  All of them ask for the same sales price with somewhat similar features ont. Let's say one of them offers only 1% BAC (Buyer's Agent Commission) while another offers 4% BAC. Which one do you think your agent will recommend you to purchase?


Since the agent is paid a commission when you buy, they will naturally want you to make a decision quickly. If it takes 10 hours versus 100 hours of work to end up with the same amount of commission, which option do you think your agent would prefer to have? 10 hours or 100 hours?


If you're locked into a contract with an agent for 6 months to look at houses around the $100K range, and another client comes along who is looking for $1M homes, whom do you think your agent will pay more attention and dedicate more time to? All of a sudden, you will hear less and less frequently from your agent, and yet you can't go talk to another agent since you're already in an exclusive contract with this one!




Again, we are not saying all agents are bad.  There are lots and lots of good agents who truly care about their clients.  However, the compensation model itself is flawed, in our opinion. The model puts the agents in position where they are more tempted to do wrong than right. No wonder as agents, we are kept being told to adhere to these principles! Maybe if we change the model so that it is more in-line with all other free-enteprise services, a model that would be more fair to all parties involved, we wouldn't have to worry so much about agents being corrupted!


And that is why at New Option Realty, we are trying a new way that will be a win-win solution to everyone. We simply cannot work for free as so many other agents advertise. Instead, we ask for a fair compensation to the expertise and services we provide - to ALL of our clients, regardless of the sales prices! And we give you, Mr. Buyer, all the commissions we receive from the Seller, because simply put, it is your money after all! Give us a call if this is a new priciple you agree with, and who knows, you might get a fat check back from us after your next closing too!


#add-this#
 ]]> </description>
            <pubDate>Thu, 10 May 2012 20:53:47 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/lease-options-vs-seller-financing.html</guid>
            <link>http://www.newoption.com/blog/lease-options-vs-seller-financing.html</link>
            <author>info@newoption.com (New Option Realty Admin)</author>
            <title>Lease Options vs. Seller Financing</title>
            <description> <![CDATA[ 



Recently we had a prospect asking us about the difference between a Lease Option contract and a Seller Financing contract, so we wrote up what we thought, while trying our best to not "practice law" :-).


A lease-option (or "lease-purchase-option," or "option to purchase," or "rent to own" and their many other cousins) is usually a normal lease in conjunction with another option contract to allow the tenant to purchase the home at a later date. There is no title transfer at the time the contracts are signed.  The renter is normally required to put down some sort of “option money” to secure the “option” to purchase the property within a certain amount of time at a specified price.  Additionally, some people work out arrangement to even make extra monthly payments on top of the rent to count toward their down payment when the purchase time comes.


Lease-Options were very common in the past. However, since a lot of Sellers/Owners started to abuse this practice, the state of Texas passed a law a few years back to enforce all real estate contracts to have an executed date of less than 6 months (180 days) to be valid.  Any contract with an execution date longer than 6 months is called an "executory contract," and is subject to strict regulation of the Law.  Some people go around this rule by renewing their option contract every 6 months or so.  However, most lawyers would advise against using it.  We’re not Real Estate attorneys, so we can’t draft option contracts for our clients either due to the fragile nature of this type of contract.  If our client chooses to go this route, we'd ask them to have an attorney draft these contracts instead. 


A seller-financing (or owner-financing) note, on the other hand, is the same as a regular purchase, where Title is transferred to the Buyer when the deal is closed. However, the Seller also holds the note on the Buyer.  It basically means the Buyer borrows the money from the Seller rather than a bank to buy the property.  The Buyer typically signs a Promissory Note with the Seller, and the Seller also records a lien on the property at the borrowed amount.


The good thing about seller-financing is that Sellers are less picky about the Buyer's credit.  However, the interest rate will be a lot higher as well.  The Buyer will just have to put up with that high interest rate until he/she can re-finance with a conventional mortgage.


#add-this#
 ]]> </description>
            <pubDate>Tue, 08 May 2012 15:07:29 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/its-more-than-just-the-location.html</guid>
            <link>http://www.newoption.com/blog/its-more-than-just-the-location.html</link>
            <author>anguyen@newoption.com (Angie Nguyen)</author>
            <title>It's More Than Just the Location</title>
            <description> <![CDATA[ 
There's a phrase in Real Estate that goes "Location, Location, Location!"  Yes, real estate is mostly about the location. If your house is in the "wrong" location, be it bad neighborhood, sub-par schools, or facing a major intersection, it's a pretty bad deal.  Well, unfortunately you can't change the location of the house, or make those things disappear.  What can you do to sell your house?  There are a few things you can try - fix it up really nicely or put in extra upgrades to entice the buyers.  Those things are great, and you definitely should employ them! However, there is another rather big factor the buyers have to consider - the PRICE! With all things being equal, the house with the lowest price will sell first! Simple logic, right?


In a typical real estate transaction, the agents' commissions are the biggest deductions from the net amount the Seller receives. On average, the commissions equate to about 6% of the sales price. They are usually split between the Seller's and Buyer's agents.


Here, at New Option Realty, we don't suggest that real estate agents should work for free (we have to pay our bills somehow!). However, we offer alternative low-cost listing packages that Sellers can choose from so that they can take the savings and are able to price their houses appropriately!


Starting at just $250 to list your house in the MLS, you cannot go wrong! Your listing will then be syndicated to 55+ other popular real estate web sites, giving it the exposure it much needs! We also offer other services to assist you along the selling process if you want, and we ask for a reasonable compensation in return. At the end, when you add it all up, it is still significantly lower than paying that 3% commission to another traditional listing agent.  The more expensive your house is, the more you will save with us!


Do the math, check us out, and give us a shout! We are here to help you sell your house by targeting that critical pricing angle! Remember, anything can be sold - at the RIGHT price!


#add-this#
 ]]> </description>
            <pubDate>Fri, 04 May 2012 08:19:01 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/home-trends-spring-cleaning.html</guid>
            <link>http://www.newoption.com/blog/home-trends-spring-cleaning.html</link>
            <author>anguyen@newoption.com (Angie Nguyen)</author>
            <title>Home Trends: Spring Cleaning</title>
            <description> <![CDATA[ 
Get a head start on sprucing up your lawn and garden for the season with this helpful guide.


Garden


Avoid digging too early. Soil should be damp but not sticky. Grab a handful. Is it moist enough to clump together, but dry enough to crumble apart as you open your hand? If so, then your soil is ready.


Beds


In planting beds, remove perennial stems that were left through winter to protect plant crowns and offer forage for birds. Don’t pull stems; instead, clip them at ground level. Allow bulb foliage to ripen and die naturally. Gently remove winter mulch and leaves that have accumulated on planting beds. Remove winter mulch on a cloudy day so that the spring sun doesn’t burn plants that have already emerged.


Fertilizer


Before a rain, sprinkle slow-release organic fertilizer around bulbs, perennials and roses, scratching it lightly into the soil. Add a fresh 2- to 4-inch-thick layer of organic mulch, such as compost or composted manure.


Planting


Germinate flower and vegetable seeds indoors, making sure seedlings receive 16 hours of light per day. Dig and divide summer- and fall-flowering perennials. Plant cool-season vegetables, broccoli, potatoes, onions, greens and lettuces as soon as you can work the ground.


Lawn


Weeds


In early spring before forsythia finishes blooming, apply a pre-emergent herbicide to turf to control crabgrass. Tackle dandelions and other broadleaf weeds by digging or spraying.


Repair


Overseed bare spots in cool-season lawns; however, wait until late spring or early summer to patch warm-season turf. Do not use pre-emergent herbicides if you plan to overseed.


Mower


Start mowing cool-season grasses when they show green. Raise the mower blade after the first spring cut, and never remove more than one-third of the grass-blade length.


Outdoor Living Areas


Deck


Remove dirt and mildew stains from your deck using a specially formulated deck-cleaning solution. If the deck is new construction, be sure to purchase a new wood treatment instead of a deck cleaner. Follow this step with a power wash. Choose a nozzle with a vertical slit to avoid scarring the wood. Don’t use bleach, which eats away at the wood. Follow with a high-quality deck stain.


Grill


Double-check the gas connection on your grill. Mix a solution of warm water with a small amount of dish soap, brush some on the connection, turn on the gas and watch. Bubbles signal a leak, which means you should replace your connector.


Use a wire brush and degreaser on the grill to remove baked-on grease on the cooking grate and grill pan. Heating them first can make grease easier to remove. Use a piece of wire to ensure burners and holes are clear.


This article is excerpted from Lowe’s Creative Ideas magazine. For more information, visit www.lowes.com.





#add-this#
 ]]> </description>
            <pubDate>Tue, 01 May 2012 16:28:01 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/use-new-option-realty-to-purchase-and-build-a-new-home.html</guid>
            <link>http://www.newoption.com/blog/use-new-option-realty-to-purchase-and-build-a-new-home.html</link>
            <author>tanthony@newoption.com (Tara Anthony)</author>
            <title>Use New Option Realty to Purchase and Build a New Home</title>
            <description> <![CDATA[ 
When building and purchasing a home from a New Home Builder, you can help protect your interests by utilizing a Real Estate Professional to represent you.  Additionally by using New Option Realty as your representation you can look forward to a commission rebate after closing on your new home.  Depending on the purchase price, that could be thousands of dollars!  What could you do with that extra cash?  New furniture?  New appliances?  What about moving expenses?  Before you start dealing with a New Home Builder, make sure and contact New Option Realty.


#add-this#
 ]]> </description>
            <pubDate>Mon, 30 Apr 2012 14:37:13 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/we-do-pay-you-to-work-with-us.html</guid>
            <link>http://www.newoption.com/blog/we-do-pay-you-to-work-with-us.html</link>
            <author>info@newoption.com (New Option Realty Admin)</author>
            <title>We Do Pay You To Work with Us!</title>
            <description> <![CDATA[ 
It's been busy around here lately. We've had a few clients closing this month, and that means .... REBATE checks!!! Our rebate checks this month range from $2,500 - $21,000!. Yes it's a $21,000 rebate check! And we have a picture to prove it too :-).


Give us a call next time you're in the market for a new house! How much can you save? It's all up to you!





#add-this#
 ]]> </description>
            <pubDate>Wed, 25 Apr 2012 19:30:13 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/property-spotlight-4440-bloomfield-court-in-fort-worth-158600.html</guid>
            <link>http://www.newoption.com/blog/property-spotlight-4440-bloomfield-court-in-fort-worth-158600.html</link>
            <author>tanthony@newoption.com (Tara Anthony)</author>
            <title>Property Spotlight - 4440 Bloomfield Court in Fort Worth - $158,600</title>
            <description> <![CDATA[ 
Follow the long driveway to the detached 3 car garage with covered breezeway to home. Oversized private cul-de-sac lot with large covered patio and attached porch swing (see pics!). Master bedroom on the first level and 3 bedrooms plus an additional living area upstairs. Custom Elfa organizational systems in closets. Additional attic storage in garage. Community water park! Seller to pay up to 3% of Buyer's closing costs with a full priced offer.


#add-this#
 ]]> </description>
            <pubDate>Mon, 09 Apr 2012 18:35:26 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/the-first-step-to-home-buying.html</guid>
            <link>http://www.newoption.com/blog/the-first-step-to-home-buying.html</link>
            <author>tanthony@newoption.com (Tara Anthony)</author>
            <title>The First Step to Home Buying</title>
            <description> <![CDATA[ 
Ready, set, it's about to be home buying season.  If you are in the market for a new home - are you prepared?  Securing your financing is the first step to home buying.  The following information is courtesy of Realtor.com.


There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:






How much down? Loans with 5 percent down or less are available -- in fact, loans from major lenders with no money down have appeared in recent years.






If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). Millions of VA, FHA and PMI loans are generated each year.






How's your credit? The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.






Are you a first-time buyer? It might seem that "first-time buyer" means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. For details, speak with your local REALTOR®.






Contact New Option Realty and we can guide you in the right direction.


#add-this#
 ]]> </description>
            <pubDate>Mon, 12 Mar 2012 17:10:43 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/the-free-real-estate-agent.html</guid>
            <link>http://www.newoption.com/blog/the-free-real-estate-agent.html</link>
            <author>tanthony@newoption.com (Tara Anthony)</author>
            <title>The "Free" Real Estate Agent</title>
            <description> <![CDATA[ 
You’ve decided to buy a home and you’re wondering if you really need a real estate agent.  Finding a home online is easy these days – you can see tons of pictures, descriptions, and even street views of a neighborhood.  What could you possibly need a Realtor for?  Because no matter how much information you can see online, you never know what kind of situation you’re actually getting in to.. That’s where a Realtor can come in handy.  If you sign a buyer’s contract with a commission based agent, they will work for you for FREE – but there’s a catch!  People generally don’t work for free.  In fact when you buy a home, RealEstate Agents are typically paid by the Seller, most often 3% of the sales price!  If you give $200,000 to a Seller to purchase their home, at a 3% commission rate, the Seller gives $6,000 of your money to your Real Estate Agent.  If you did most of the research yourself online, maybe you only used 6 hours of their time - that would mean they made $1,000 an hour!  Wow, why isn’t everyone a Real Estate Agent?  At New Option Realty we offer a better way for you to buy a home.  Here’s how it works – you use New Option Realty as your Buyer’s Agent. After purchasing your home, we receive the commission from the Seller, deduct the hourly services you’ve accrued, and write you a check for rest. You can put THOUSANDS of dollars in your pocket, simply by buying your home with us. So even if you feel like you don't need a real estate agent, why wouldn’t you want one -  from New Option Realty?


#add-this#
 ]]> </description>
            <pubDate>Fri, 24 Feb 2012 15:15:36 -0600</pubDate>
                    </item>
        <item>
            <guid>http://www.newoption.com/blog/who-has-time-to-sell-their-home.html</guid>
            <link>http://www.newoption.com/blog/who-has-time-to-sell-their-home.html</link>
            <author>tanthony@newoption.com (Tara Anthony)</author>
            <title>Who Has Time To Sell Their Home?</title>
            <description> <![CDATA[ 
You do.  Selling your home can be a daunting process and we understand that.  Incorporating showings, questions, and negotiations into your already busy schedule can seem overwhelming.  It can seem like such an overwhelming task that paying a large commission to a traditional Realtor would seem worthwhile.  The unfortunate assumption being that by saving money utilizing a Flat Fee Real Estate Company, service and support are sacrificed.  Not all Flat Fee Listing Services are the same though.  With the Complete Package from New Option Realty, receive the support of a traditional Real Estate Agent at a fraction of the cost.  What’s included?  Just about everything it takes to sell your home.  From advertising and signage to contracts and negotiations, New Option Realty will be the partner that gets you to sold.


#add-this#
 ]]> </description>
            <pubDate>Mon, 13 Feb 2012 17:33:24 -0600</pubDate>
                    </item>
    </channel>
</rss>
