Insurance and financial services giant USAA, headquartered in San Antonio, Texas is providing FREE  calls from military personnel to their families this Veterans Day.  Under the Veterans of Foreign War's Operating Uplink Free Call Day, it is expected 120,00 call will be made.

        Internet cafes in Iraq and Afganistan, hospitals and recreation centers across the world--900 in all-- are expected to handle one million minutes of calls.  This is not a stand alone operation.

        Donations from the VFW's ladies auxiliary, business and the public have helped to underwrite this undertaking.  Anyone who would like to help can call (816) 968-1102 for donation information.

        With the downturn in the market the past year, several actions are being taken by real estate agents.  Many agents have left the business or while others are allowing their ethics to slip in order to make some transactions.  The former is preferred and the latter is unconscionable.

        When the going gets tough, as the coach used to say, the tough get going.  So in our depressed market, you have to be tough and get going.  Thus, look in the mirror for clients.

        Clients are not in the mirror, you think.  True.  However, one needs to look to ones self and your own initiative to find clients when the pickin's are slim.

        Think out of the box!  Do not follow the standard business model.  Stop with the phone calls.  good grief.  Don't you think folks are sick of phone calls from all the otehr folks out there trying to get their business, what that may be?

        Try a letter writing campaign.  Or market you areas with newsletters.  Sell yourself.  Host a whatever with a title company or a home inspector.  Send out letters to absentee landlords.  Anything but gripe and complain and pass the responsibility off to someone or something else.

        In the mirror is the answer to new and even repeast clients.  You have the knowledge, education, experience--the pwoer--to make new business opportunities. 

        Now, stop looking in the mirror---you are pretty/handsome alright. 

        Now hit it!  Get out the box!  Get creative!

        Well, participation in last week's question was thinner than the hair on Uncle Frank's head.  However, not one to be daunted easily, here we go for this week.

       Here on GREEN TEXAS - REAL ESTATE we are talking about the greening of the real estate industry, specifically energy savings, energy reduction, cost savings and cost reductions for the consumer/client.  To know what this all means requires a certain level of understanding.  This usually requires some education on the topic in the first place.  So through questions (and ansers) we all learn something about energy efficiencies relating to home building and/or remodeling.

        This week's question is:

                             What is infiltration?

        ALBEDO RATING is the measurement of the amount of light (energy) absorbed by a surface, or the albedo rating. Saying it another way: the term used as a measure of reflectivity and absorptivity is albedo. Why is this important?

        Energy, in the form of light, is heat.  This heat is absorbed into buildings and makes them warmer.  This adds to the amount of "load" for the air conditioning system.  An example is an air conditioned space, say a home, in the summer.  Anyone want to go up into the attic?  The attic space is heated by the energy (heat) in the form of light from the sun, heating up the roof and coming into the attic.

        Another way to understand this is to look at the building materials used for the roof.  Light colored roof coatings are commonly used in climates that use cooling because dark colors absorb heat and light colors reflect heat.  The more heat reflected away from the building, the less heat absorbed.  This means the air conditioning system works less and you save energy.

       Heat also accelerates the deterioration of the roofing materials.  The more heat absorbed, the faster the roofing materials will fail.  Roofing materials expand and contract as they heat and cool.  This too shortens their life cycle.  Knowing this, a homeowner can ensure their roofing contractor uses appropriate materials when either building or replacing a roof.  Roofing materials are now "R" rated to indicate their level of insulation to heat.

       There are several commerical coatings also sold to reduce heat gain, extend the life of a roof and lower energy costs.

        RECOMMENDATION:  Always ask for Energy Star-labeled products to ensure maximum energy efficiency of materials used on your roof project.

       For more information review the Washington State University factsheet.

       Insurance giant USAA has announced they are opening their doors to millions of veterans as potential customers of their insurance and financial services.  The San Antonio-based company hopes to be the provider of choice for the millions of active duty, retired and former military personnel across the nation.

        The firm, form in 1922 by 25 US Army officers in San Antonio, grouped together to take care of their own.  Previously, military personnel were seen as too risky for traditional insurance coverage.

        The changes in eligibility to join USAA opens the door for some 61 million active, retired and honorably discharged military personnel, along with their spouses, unremarried former spouses, adult children, widows and widowers.  It even includes those students in training for officer commissions.

        USAA is hoping this change in policy will add 100,000 new accounts per year for the short term.  Their staff of 22,000 will be able to handle the influx of new members, according to USAA president and CEO Joe Robles.

         USAA has always boasted it know first-hand the needs of the military and if ever in San Antonio, visitng their cmapus makes on feel like they are on a military installation.  SUAA has long be touted as one of the top employers in Texas and the US.

        As a disclaimer, my membership in USAA has been active since they opened the doors to senior NCOs (E-7 to E-9).  The services provided have been exceptional.  My son also is an employee of USAA and says they are a great company to work for.

        Please share this news with all of your clients and customers.  Savings will be realized by having all your insurance policies under on umbrella.

        With all we have to do to get a transaction to the closing table, the final walk through seems like just another step, or box to fill.  And for what?  The house still is there and the clients are anxious to get in there and call it home.  Right?  No, not so fast there young (or older) agent.  The final walk through is so important you will rue the day you failed to exercise your responsibility to your client and broker.

        It is sad to say there are some folks who will try and cheat others every chance they get.  Some thinking their actions are not improper (or illegal) and have been told everyone does it.  Just what are we referring to?

        Some owners will "trade out" appliances just before closing.  The top-of-the-line appliances are replaced with new, moderately priced ones.  No harm, right?  Wrong!  Not the appliances the buyers saw and expected to be part of the deal.  Some will do an addendum for non-realty items and list these items to be part of the contract.  Or the are added into the basic contract as the inclusions.

        When you are doing a contract it is important to double check what is and is not included in the deal.  To make sure there is no misunderstanding, put it in writing.

        We do not stop at appliances here.  Some folks have been known to remove the chandeliers, ceiling fans, window treatments and anything else not permanently attached to the property.  This is why you must do the final walk through.

        As a broker, my errors and omissions insurance is expensive enough, without an agent skipping over this step and costing me a lawsuit.  You too may feel the pain if you are not careful.

        Today's lesson: a final walk though is a mandatory step, one ignored at your own peril.

        Well as we already know, make something neat and folks will figure out a way to misuse it.  Take the internet for example.  Really a neat invention and most of the web sites/traffic have to do with sex.  So too with CraigsList.com.  Not the sex part, although that has been in the news of late.  What this is in reference to is a real estate scam targeting folks looking for rentals.

        Using CraigsList.com to advertise properties is a smart move in that it is FREE.  Yea...gotta love free!!  Anyway, there are some who take a real rental listing and change it, trying to swindle folks out of their money.  Works like this.

        You post an ad for a rental.  They (whoever they are) take it and redo it with a less than price and security deposit.  They then post it and folks respond.  They tell the folks they are either out of town owners or going out of town and money is not important to them.  Just the fact someone is in "their home" and watching over it for them.  They send the potential tenant a rental contract with instructions to return it with the security deposit.  They will in turn send the lease agreement and the keys.

        This past summer and in the past week three folks havecontacted me to question "my listing" and why it is so inexpensive.  After a few short minutes on the phone with them, it is apparent to me this is the CraigsList scam all over again.

        This is meant as a warning to all my fellow professionals to beware.  Not sure what we can do either as individuals, MLS Boards or state/national organizations to combat this fraud.  Possibly just talking about it and educating our public is the best we can hope for.

        Please spread the word.  I just did.

        Well once again, my thoughts are "Good grief!  What in the world is wrong with agents who overprice homes for sale?"  This is an on-going issue with me, reviewing the local Multiple Listing Service (MLS) or the real estate section of the newspaper.  Don't agents pay attention to the local market?

        There is a home in my neighborhood area listed at $249,000.  Nice home, newly remodeled, etc.  Problem is, this is not a quarter million neighborhood.  No one builds a McMansion in an average community, expecting to sell it for the price they were foolish enough to pay.

        Being the first of the month, on the MLS there are a number of expired listings.  Reviewing them, one stood out in a very nice neighborhood.  Only $75,000 over the appraisal for the home.  Well no wonder it is expired.  In this market, even the higher end homes are not going for $75k over appraisal.  AGain the question, what is the agent thinking?

        Now rest assured, my intentions is to make money in real estate.  However, my goal is not to be rich, especially off just one listing.  When we take a listing, we must already know the asking price is going to be within the Fair Market Value (FMV).  This sliding scale usually disappoints an owner, especially one who wants to dig all the gold form their property.  We have a responsibility to inform our clients of the FMV and the expectations of a too-high asking price.

        In this market, we must pay closer attention to the FMV than ever before.  Too many disappointed former clients boes ill for us all.  We need to all understand and make our clients understand the current market and temper their expectations on the sale price of their property.

        As always, your comments are appreciated.

        There are so many ways to have problems when you buy or sell a home, it befuddles me when folks go it alone.  However, that is another issue.  What we are discussing here is title insurance and why it is so very important for buyers to make sure they are covered on their purchase.

        Title insurance is, basically, insurance for the buyer of a home to be protected from any "blemishes" or clouds" on the title for the property.  This blemishes, clouds or issues are many and can cause a buyer from losing not only the property, their money too.

        Title insurance insures (protects) the buyer from any liens or other claims to the property not discovered when the title company did a title search prior to the sale.  Now while it is their job to check every possible place for any claims against a piece of real estate, they are either missed, overlooked or not available at the time of the title search.  How is that possible?

        Well a good example is a mechanic's lien on a home.  The seller had some work done prior to sale and did not pay a company or individual for services rendered.  The company or individual places a mechanic's lien on the property.  The lien remains and is "discovered" when the title company does the title search.  The owner then must clear the lien before the sale.  This is a protective action many small businesses must use to collect debts from some of their customers.  Otherwise they would go out of business.  Home owner associations and the like also use liens to collect debts from owners who refuse to pay their assessments.  The title is clouded or blemished and must be cleared prior to sale.

        Going back to title insurance, there are several types commonly issued: residential owner's title policy, a mortgagee's title insurance policy, a leasehold title insurance policy or a certificate of sale policy.  Each is issued for a specific purpose and for different entities involved in a sale or a particular type of sale.

        The main point to remember is for a home buyer, a title insurance policy is a contract where the buyer is protected from losses arising from defects in the title.  Here in Texas, we use a title policy that insure good and indefeasible title to a property.  This means if there is a claim, it can be defeated.

         My hope is this example of one of the very important parts of buying a home is of value to you and again underscores the importance of using a real estate professional when buying or selling a home.

        As always, call me at (210) 273-9082 with any questions, without obligation.

      How many of us have been there and done that?!?  No fun when a home does not sell.  We wonder about ourselves and our techniques.  Of late, monitoring my local MLS, it seems many of the expired listings have one thing in common.  Overpriced for the market.  Now whose fault is that?

      My personal thoughts regarding the current local market in the San Antonio metro area are most homes sell at $10-15,000 above tax appraisal.  Yes, this is a general statement and some are worth more, but not much.  The ones that do not are being listed for as much as $60,000 over tax appraisal.  Now the question remains, whose fault is it the home did not sell?

      Well, first we need to look at the listing agent.  What did (s)he tell the client regarding the market?  What were the externalities, if any, which may have a negative effect on the sale of the property?  What is the location, condition and neighborhood situations?  We all know these have a direct impact when setting a price on a home. 

      Yes, you are wondering about the comps.  Me too.  Comps are not the be all and end all of pricing a home for sale.  Too many folks want to just use the comps because it is easier, especially when a client has grand expectations.  Taking the path of lease resistance is not always a wise choice.

      Speaking of the client, what where their expectations?  Were they being realistic?  In speaking with a new client who wants about $70,000 more than the tax appraisal, it was difficult being the bearer of bad news.  However, we must tell the truth.  The market is what the market is.

      Going back to the original question of whose fault was it, there may be enough blame to go around.  Deferred maintenance does catch up to owners.  Not having the courage ot tell the truth about market conditions and pricing can hurt an agent and their professional standing in the community.  Reality clashing with great expectations is a harsh environment, yet we must prevail to remain true to our profession.

      We face tough times right now.  We all need to stay on track with our professionalism and have faith in our knowledge and training.  Anyone who wants to survive the current market conditions must have a strong grip on their belief in themselves and their clients' best interests.

       Let's all go out there and be successful!  When the going gets tough, the tough get going!