Amy's Blog

Existing home sales down 7 percent in San Antonio

Amy Johns (Century 21 North Town & Country) — Fri, 31 Aug 2007 16:41:35 -0500

San Antonio's real estate market may be down slightly from last year. However, the single-family home market remains resilient, according to statistics released by the San Antonio Board of Realtors (SABOR).

There were 13,763 sales of existing single-family homes year-to-date, which is down 7 percent from this same period a year ago. However, at $182,872, the average price of these homes is up 7 percent from this same time last year. Statistics compare home sales from January to July.

SABOR official say that although the number of sales in 2007 through July may be down in comparison to 2006, the number of home sales so far this year is similar to levels in 2004 and 2005 and continues to reflect a strong and healthy real estate market.

SABOR report that the San Antonio market currently has an average 5.2 month supply of housing inventory. This is compared to 4 months of inventory of single-family homes during the first seven months in 2006.

http://sanantonio.bizjournals.com/sanantonio/stories/2007/08/27/daily17.html

Real Estate Remains a Strong Investment

Amy Johns (Century 21 North Town & Country) — Thu, 19 Jul 2007 11:18:24 -0500

Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.

When the same local market is at the low end of the appreciation cycle, reaping a profit on the family home can take a good deal more time but the reward can be just as satisfying if price and location and carefully considered.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. According to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than, the rate of inflation. Housing prices actually rose an average of 10 percent during the recessions of the mid-1970's and early 1980s.

Statisticians report that the rate of home appreciation since 1990 has been around five percent nationally, with inflation hovering around four percent. Homeowners, obviously, are still staying ahead in the real estate game on average.

And, with mortgage interest rates the lowest they've been in two decades, real estate today is a more attractive investment than it's been in years.

First-time buyers are the big winners in this environment. Drawing up a budget can help you and your family decide on what you can afford. Once you've determined a price and picked your desired community, shop around to find the best house you can buy for your money. This strategy can help you realize greater appreciation two or three years down the road.

This is also a good time to purchase a second or vacation home. A bargain cabin in the woods today might bring an excellent return when housing prices move upward. Affordable second-home prices also allow you to purchase a vacation home that can serve as a stepping-stone to a larger retreat in the future.

But appreciation isn't the only advantage to buying a home. The federal government thinks home ownership is so important to the future of our country that it allows mortgage interest to remain the last substantial tax shelter for families. Owners can also take deductions on their property taxes. And, the profit on the sale of your home remains tax free as long s you buy a house for a greater or equal price.

So before you decide that this is not a good time to invest in residential property, re-examine the financial benefits of owning your own home and put them to work for you.

Pricing Your Home to Sell

Amy Johns (Century 21 North Town & Country) — Wed, 11 Jul 2007 11:44:49 -0500

Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.

If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and "shows" better than the competition, it will have a better chance of being sold quickly.

The secret is perfecting a technique that's as American as apple pie: comparative shopping.

Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it's one of the best methods to use when determining a home's market value.

A responsible real estate agent will effectively evaluate a home's worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called "comparables," that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably

However, factors such as the amount of time needed to sell your home can alter the agent's price recommendation dramatically.

Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing "norms" vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you're under time constraints because of unexpected job changes or moving agreements you've made on another property, this will narrow your chances of selling the home for top dollar in the market.

Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.

The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.

Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.

A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you've picked is a good gauge of the home's worth and won't discourage qualified buyers.

Being open and honest about what you see as the home's greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you're well on your way to a speedy and fruitful sale.

Tips for Selling Your Home

Amy Johns (Century 21 North Town & Country) — Tue, 10 Jul 2007 10:56:25 -0500

Maybe you're moving to a larger home to accommodate a growing family, relocating for a new career opportunity, or purchasing a townhouse for retirement. Whatever the reason for the move, you'll need to take the necessary steps to sell your home for the best possible price, within a reasonable amount of time. Where do you begin?

If you're like most people, you'll start by seeking assistance from a professional. A local real estate sales associate, who knows your neighborhood, can help you determine a fair market price. The sales associate should also recommend the extent to which you should make repairs or improvements to your house.

Once you've identified a qualified professional, the rest is chemistry. Is the sales associate someone with whom you would like to work closely? Do you feel comfortable with the sales associate as your partner, working with you to give you advice and acting as your representative?

The brokerage firm that your agent is associated with is also important. Research the firm's success rate and commitment to quality service Do they offer guidance with mortgages or any discounts for other home related or moving services?

Determining your home's fair market value is one of the most important decisions you'll make during the home-selling/buying process. Your sales associate can help you set a fair price based on local market conditions. For instance, she or he will provide sale prices and other statistics of homes similar to yours that have recently been sold. Prospective buyers will be comparing your home to others on the market. Therefore, setting a comprehensive price can determine if your property will or will not sell.

For the first offer made, it's rare that the prospective buyer matches the asking price. If the offer is reasonably close to the asking price, carefully consider the offer before you consider turning it down. Curiously, it's the first offer that can often be the best offer. If the first offer is unacceptable to you, it may in your best interest to have your sales associate respond with a counter offer. Whenever considering an offer, ask yourself if you would purchase the property for the amount being offered. Always be willing to negotiate, especially if the prospective buyer is pre-qualified for a mortgage.

Once you decide what terms are acceptable, let your sales associate negotiate with the prospective buyer to work out the best agreement for you. You'll need to be patient while the buyer arranges financing and as the real estate company compiles and prepares pertinent data.

Careful planning and sound advice from a real estate professional can make selling your home a very satisfying experience. For further information, please contact me.

Timing is Everything When it Comes to Buying Homes

Amy Johns (Century 21 North Town & Country) — Tue, 10 Jul 2007 07:51:18 -0500

The old adage that "timing is everything" especially applies to buying a new home. And trying to be at the right house at the right time and get it for the right price can be tricky. Here are some guidelines to assist you:

•· Turn to the real estate section of your Sunday newspaper. Monitor the market and tract home prices. Expect to spend 90 days watching the real estate market through advertisements. Question and investigate homes that are advertised month after month. Hard-to-sell properties could either be a warning sign or simply overpriced for the value.

•· When a real estate agent provides you with descriptions of homes currently on the market from the Multiple Listing Service (MLS), ask for a list of homes that were on the market within the last six months or year in the same neighborhood. Compare asking prices to actual sales prices for the same type homes.

•· In addition to monitoring housing prices, learn to identify hot, up-and-coming neighborhoods by tracking selling prices from week to week. If one neighborhood experiences price booms while other house prices are sluggish, its' clear which community to invest in. If you're passionate about an upscale area - and on a budget - prepare to buy a fixer-upper and invest some money in renovation. Conversely, beware of buying a beautiful home in a marginal area. You may not get your money back when you sell.

•· Keep close watch on the fluctuating mortgage interest rates. Low interest rates are the most inspiring reason to buy property. Also watch the national Discount Rate, the rate at which banks can borrow money from the government. When the Discount Rate drops, banks pay less for borrowing the money and in turn reduce mortgage rates to the borrower.

Predicting when a market is ripe for home buying is not an exact science - even for real estate experts. However, by following these simple tips - and staying on top of real estate trends, sales patterns and interest fluctuations, you are sure to get the best house for your buck.

Understanding Real Estate Terminology

Amy Johns (Century 21 North Town & Country) — Mon, 09 Jul 2007 13:12:59 -0500

Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn.

For example, many buyers confuse the terms broker and salesperson. A broker is a properly licensed individual, or corporation, who serves as a special agent in the purchase and sale of real estate, a salesperson is an individual employed or associated by written agreement by the broker as an independent contractor. The salesperson facilitates the purchase or sale of real estate.

Once you decide to purchase, a salesperson will prepare a sales contract to present to the seller along with your earnest money deposit. The sales contract is the document through which the seller agrees to give possession and title of property to the buyer upon full payment of the purchase price and performance of agreed-upon conditions. The earnest money is a buyer's partial payment, as a show of good faith, to make the contract binding. Often, the earnest money is held in an escrow account. Escrow is the process by which money is held by a disinterested party until the terms of the escrow instructions are fulfilled.

After the buyer and seller have signed the contract, the buyer must obtain a mortgage note by presenting the contract to a mortgage lender. The note is the buyer's promise to pay the purchase price of the real estate in addition to a stated interest rate over a specified period of time. A mortgage lender places a lien on the property, or mortgage, and this secures the mortgage note.

The buyer pays interest money to the lender exchange for the use of money borrowed. Interest is usually referred to as APR or annual percentage rate. Interest is paid on the principle, the capital sum the buyer owes. Interest payments may be disguised in the form of points. Points are an up-front cost which may be paid by either the buyer or seller or both in conventional loans.

In general, there are two types of conventional loans that a buyer can obtain. A fixed rate loan has the same rate of interest for the life of the loan, usually 14 to 30 years. An adjustable rate loan or adjustable rate mortgage (ARM) provides a discounted initial rate, which changes after a set period of time. The rate can't exceed the interest rate cap or ceiling allowed on such loans for any one adjustment period. Some ARMs have a lifetime cap on interest. The buyer makes the loan and interest payments to the lender through amortization, the systematic payment and retirement of debt over a set period of time.

Once the contract has been signed and a mortgage note obtained, the buyer and seller must legally close the real estate transaction. The closing is a meeting where the buyer, seller and their attorneys review, sign and exchange the final documents. At the closing, the buyer receives the appraisal report, an estimate of the property's value with the appraiser's signature, certification and sporting documents. The buyer also receives the title and the deed. The title shows evidence of the buyer's ownership of the property while the deed legally transfers the title from the seller to the buyer. The final document the buyer receives at closing is a title insurance policy, insurance against the loss of the title if it's found to be imperfect.

Buyers should plan on a least four to twelve weeks for a typical real estate transaction. The process is difficult and at times, intimidating. A general understanding of real estate terminology and chronology of the transaction, however, will help any real estate novice to confidently buy his or her first home.

Silence is not always golden!

Amy Johns (Century 21 North Town & Country) — Mon, 09 Jul 2007 08:53:39 -0500

When trying to sell a home, silence isn't always golden especially when your clients are expecting a call. In fact, it's one of the leading complaints among sellers in the real estate market. Often times agents are more than willing to take on a listing, but not qquite as eager to communicate regularly with the seller.

Keeping the communication lines open between the two parties assures the seller that the agent is keeping them apprised of any and all offers. In addition, agents often provide valuable tips on why prospective buyers weren't interested. This allows the agent to give the seller constructive feedback and offer important tips on how to make the home more attractive to future buyers.

Selling a home can be a lot of work and sometimes quite stressful. It is incumbent upon an agent to satisfy the seller's expectations of routine updates, this will ensure the possibility of future business not to mention a successful sale. If both parties work in a cooperative effort, the selling experience will be more successful and enjoyable for both the agent and the seller involved.

San Antonio Real Estate Market Update

Amy Johns (Century 21 North Town & Country) — Thu, 05 Jul 2007 11:22:12 -0500

Very interesting article from the San Antonio Express News....enjoy!

San Antonio real estate isn't exactly as hot as it was last year. The city has thousands of additional homes on the market: nearly 40 percent more existing homes than at this time last year, and it's taking longer to sell them. In a report last week, the Federal Reserve Bank of Dallas cited softness in real estate across Texas and said San Antonio quickly had turned into a buyer's market. "For the past couple of years, I think San Antonio has been on everyone's radar as the number one hot spot in the country," said D'Ann Petersen, associate economist for the Dallas Fed. "It's not terrible. It's not like sales have dried up. There's just too much product out there now." More than 11,700 existing homes were for sale at the end of May. That's 3,300 more than at that point last year, according to the San Antonio Board of Realtors. It also is taking slightly longer to sell a house: 69 days compared with 66 last year. In the new-home market at the end of first quarter 2007, there were 60 percent more new homes for sale than at the same time last year. So while builders still are starting new homes, they are offering incentives such as upgrades to sell off their existing inventory. San Antonio's economy still remains strong and the city keeps adding jobs, which translates into more home buyers. Also, despite this year's more timid market, home prices keep rising and builders expect to start another 16,000 homes in the San Antonio area by year's end. During the first five months of the year, San Antonio's median home price reached $147,400, about 7 percent higher than at this point last year. PMI Mortgage Insurance Co. ranks the nation's 50 largest metropolitan areas according to the likelihood that home prices would be lower in two years. This week, the company reports there's just a 10 percent chance that home prices would drop in San Antonio. The biggest slowdown in new-home sales has happened in the under-$150,000 price range, where most first-time home buyers (who may not have great credit) tend to shop. Although house hunters have more homes to consider, the room for negotiation might not be as great as they expect. Homes continue to sell at more than 97 percent of the asking price. But no one thinks San Antonio real estate has taken a true turn for the worse. Travis Kessler, CEO of the San Antonio Board of Realtors, said the city remains among the bright spots in housing in Texas and across the country and that last year's head-over-heels sales pace couldn't last forever.
[San Antonio Express-News]