As most of you know, the expansive clay soils in the San Antonio area behave much like a sponge. When the soil dries - it shrinks. When it is wet - it expands. I am hearing stories from all over town about serious foundation problems occurring in a matter of a few months. The culprit is our long term drought. To minimize movement of your home's foundation, you should keep the soil moist and expanded. You should water from the edge of the foundation to about 5' outwards to maintain moist soil. This could save you a lot of money. Since we are on water restrictions, you will want to make watering around your home a top priority. If you see signs of drywall cracking, floor covering material with cracks, or sticking doors you will need to water immediately. When the moisture absorption and dissipation is uniform, the structure may resume a stable position. Hope this helps!
As a real estate consultant, I love to work with buyers. Since the market place contains several thousand available houses, and there are usually several of these that will satisfy the buyer's needs, the odds are good that a deal can be done.
However, buyers should understand that the only seller likely to give them that deal of a lifetime is a relative or close family friend. Everybody else who is selling wants to sell at a profit, or at worse, to not lose money in the transaction.
Following are some of the areas that I like buyers with whom I work to have an understanding:
1. If more than one adult is involved in the buying decision, make sure that all parties want to invest time in the search, and the financial commitment to pay for the house and its upkeep. If this cannot be accomplished, it usually ends badly for the buyers within months after the purchase.
Why? If one of the principals comes into the buying process grudgingly, or because of what they feel is undue pressure, they may sign off on the agreement, but there will be lingering resentment, stress, and strife in the relationship going forward. Delay the decision to purchase real estate together if everyone is not in complete agreement to buy.
2. If you are not paying cash for the full price for the house, get pre-approved for a mortgage from a legitimate mortgage lender before beginning the search.
Why? It is better to know what you can afford to spend and, more importantly, how much you are willing to spend for your home before you begin the search. No need looking at $300,000 houses if you are only willing to invest in a home in the $150,000 to $160,000 price range.
3. After you determine the amount you are willing to invest in a house, make a list of the features, amenities, and style of house you would like to have.
Why? This list will help you focus on what's important to you and your lifestyle. You may begin the search believing that a certain feature is a must, but as you search, you may find that adjustments are needed. Make a list of features important to you, update the list as you search, and use it to keep you focused on the features important to you.
4. Interview Realtors® to determine if there is a good fit between your personality and theirs.
Why? In addition to the time you will be spending with each other, you should be comfortable enough with whomever you select to accept, modify, or reject their recommendations without fear. You have the final say in how your decision-making process works. However, if you find that you are in constant disagreement with your representative, there is probably something wrong with one of you, or both of you. Check yourself, and if it's not you, get another representative.
5. Texas real estate rules allow the real estate buyer to engage the services of a Buyer's Representative, or agent. I urge buyers to use a Buyer's Representative. All parties in a real estate transaction should have competent, professional representation.
Why? You probably do not buy and sell real estate on a regular basis. Real Estate is usually the single largest purchase that most of us buy. So, this is something you do not do often, it is a big financial investment, and it is not simple. Get a competent real estate professional to help you. The seller probably has an agent and so too should the buyer. (If you are not in Texas, check the real estate regulations in your state regarding buyer representation.)
6. If the house you are considering buying is not new, it will not be in perfect condition. However, systems should be functional. If they are not, we can try to negotiate to have some repairs completed by the seller before you take possession, or a price reduction on the house. If we cannot reach a reasonable arrangement with the seller, be prepared to find another property.
Why?-Ideally, the seller has kept up with general maintenance of the home and will have it clean, free of debris, and vermin. But some walls may need paint, you may find outdated décor, or some windows and doors may not work perfectly. But this is not a new house so do not expect perfection. Make a reasonable offer based on market conditions and plan on adding your sense of style.
7. If you are considering buying a new home, interview and select a Buyer's Representative to help you negotiate and buy your new home.
Why-The Sales Consultant at the model home or a Realtor who lists new homes is working for and representing the builder. While they do want to sell you a home, their obligations are to the builder first. Even if you are an experienced real estate buyer, you may only buy every few years. Having a professional who is knowledgeable regarding current trends in pricing, resale value, financing, and real estate regulations on your side is very beneficial.
8. Most buyers have a limit as to the number of homes that can reasonably be seen in a day.
Why? One should be able to eliminate many of the unsuitable homes through an internet search so only the most promising homes will require a visit. In visiting houses, particularly on the same day, the features, décor, landscaping will just become a blur if too many homes are seen over a short period of time. Distinguishing one house from another becomes very difficult. I prefer to limit the number of houses viewed to three per session. This is the ideal to me, but sometimes, I am overruled and will show more in a day.
Exceptions for Relocation- People moving on an inter-city basis may need to make decisions quickly regarding their new home. The three homes per day will not work in this situation.
9. See the home during different times of the day, and evening. This does not mean scheduling several times to go inside the home, especially if occupied, but driving the streets in the neighborhood. If neighbors are outside, see if they can be engaged in general comments about the neighborhood, schools, or local events.
Why? Learning about the neighborhood before you make an offer can ease your mind about your new situation. Things that you can learn regarding noise, area businesses, traffic, or community concerns can be factored into your buying decision. You are not just buying a house; you are also joining a neighborhood. Better to learn as much as you can before you commit. Neighbors can provide a great deal of information about the area.
10. After an agreement is reached with the seller, work with your representative, and your mortgage officer and be responsive the requests for information, signing and returning documents, and staying on top of the administrative details so you can have a smooth closing.
Why? There are still several steps needed to make this your new home. Failing to meet certain deadlines can place your ability to close the deal in jeopardy. That could also mean the potential loss of your earnest money.
This is a short list. Several hundreds real estate experts, authors, business moguls, developer tycoons, and builders have written extensively on buying real estate. Don't use any one source exclusively. Get a variety of views, process the information, and make something happen.
I will do future posts about Earnest Money, Option Periods, Title Insurance, Inspections, and Surveys.
I work with buyers and sellers every day and realize how confusing it is to understand how realtors are compensated. It is also confusing to understand where the money comes from - and where all that money goes.
To understand commissions you must first understand the law of agency in the state of Texas. That is - who works for who. When you work with a realtor in our state the realtor can represent either the BUYER or the SELLER. They do not represent either party if there is an INTERMEDIARY AGREEMENT. Remember that when you ask a Realtor to show you properties. He/she is representing the seller unless you sign a buyer's representation agreement with them. (He gets 3% either way - so why wouldn't you want to sign him/her up to represent you and not the seller?)
Listing agents determine their fee. For simplification purposes, let's say a listing agent charges 6% for listing a home. Even though the listing agent is getting 6% - he sets aside 3% of the 6% for the agent that is going to be bringing him a buyer. (Please note: Buyer's agents don't usually like to take less than 3% for their efforts - so to offer a buyer's agent less than 3% is not a good idea.) That leaves 3% for the listing agent to keep. But wait - that is still a lot of money. Where does it all go?
THE LISTING AGENT - listing agent then pays: 30-50% to his company and/or relocation company (for office building, advertising, training, education, etc)
20% to 35% - to the IRS, 12% to Social Security and 3% to Medicare, since Realtors are self employed, and Errors and Omissions Insurance for the transaction (about $100 per transaction)
That leaves about 30% for monies spent to market the home and profit (websites, advertising, virtual tours, signage, gasoline, lockbox, copies, flyers, time, business cards, MLS dues, picture taking and editing, digital camera, etc)
THE BUYERS AGENT - buyer's agent pays: 30 - 50% to his company and/or relocation company (for office, training, risk management, etc)
20% to 35% - to the IRS, 12% to Social Security and 3% to Medicare, since Realtors are self employed, and Errors and Omissions Insurance for the transaction (about $100 per transaction)
That leaves about 30% - for realtor's expenses and profit (car expenses, NAR dues, supra key to get in lockbox, time to do several market analyses, MLS dues, continuing education, time spent looking at listings for potential homes, lunch for clients, (and all over again if the deal falls through)
THE BUYERS AGENT FOR A NEW HOME:
Many buyers do not see the need to use a REALTOR ® if they are purchasing a new home. However, builders put the cost of using a REALTOR ® in the price of the home whether you use one or not. The nice men and women that serve you warm cookies and coffee and treat you very well are still representing....THE SELLER/BUILDER. You have no representation in this transaction. Why wouldn't you want to use a realtor to represent you? For free.
I welcome your comments and questions on this one.
When I have a client who is interested in purchasing a home, I want an inspector who is reasonable, honest, thorough and will take the time to explain exactly what the problem is to my clients (in simple terms). I have a list of several inspectors that meet these criteria, and I usually encourage my buyers to choose one from the list. Our office requires that we use only inspectors that have E & O (errors and omissions) insurance. That way, if there is ever a legal issue - their legal fees will be covered.
By law, all inspectors have a list of items that they inspect and evaluate. In addition to the general inspection, I also recommend a WDI (Wood Destroying Insect) inspection. This will check for termites, as well as carpenter ants. Carpenter ants are quite prevalent in San Antonio, and they can do as much damage as termites. I also prefer inspectors who measure the elevation of the home from the front door to the back and from side to side. This is very important in San Antonio with our clay soil, and gives a good indication if there are any foundation issues that might need further evaluation.
I stress to buyers that the main issues we would want to be addressed are health and safety issues. We would also want an awareness of items that may be nearing the end of their useful life - especially expensive items like a roof, air conditioner, or water heater. This might make a difference on how much the buyer would be willing to pay for the property.
AS A SELLER'S AGENT......
I recently represented a SELLER of a 20 year old home. The inspector that came in did a terrible disservice to both the buyer and the seller by exaggerating and giving out misinformation. I felt his entire objective was to find as many small items as possible to alarm the buyer and seller and get more repair money from the seller. The buyer's agent seemed to delight in the long list of items that the inspector found and bragged about having a ‘tough inspector' before he even came out. When my seller scrambled and got licensed electricians, plumbers, and HVAC repairmen out - many of the items he wrote up were not a problem and did not need to be repaired. This was an added expense to her, and created a distrust towards the inspector and his report. This is not a win-win situation for the buyer or the seller. It was hard to prioritize the long list of repairs - especially when several licensed tradesmen said that there was nothing wrong with several of them.
My advice:
Choose inspectors wisely. Ask your REALTOR to make several recommendations, then call and talk to each one and choose the one that is most likely to fit your needs and situation. The goal of all parties involved should be:
•1. Find out issues with the house so the buyer truly knows what they are getting into
•2. Repair or compensate for issues, if needed
•3. Proceed to closing if the buyer did not find anything that would keep them from buying the home
I made a trip out to Hill Country Retreat again last week. It is a community for age 55 and better residents. It is near 1604 and Highway 151 (Close to Sea World). I had sold a home out there about a year and a half ago. It has really filled out since then. It is a gated community with about 2,100 homes planned. They are currently up to 300 homes and counting. The houses are all one story with floor plans ranging from 1,300 to 4,000 square feet. They are priced from the 160's to the 330's. There are absolutely no ‘spec' homes out there anymore. However, they are telling prospective buyers that they can build a home in 3-4 months.
Of course what makes this subdivision different is the social club of the community. It is a 28,000 square foot amenity center with an indoor pool, running track, weight room, locker rooms, and library. There is also an art room, ballroom, and multipurpose rooms . A quick glance at the bulletin board showed a bridge club, Bible study, book clubs, bowling, cards, and cigar club - just to mention a few. There was a group shot of residents that had gone on a cruise together, and photos of their recent parties, potlucks, and ‘golf cart' parades. Residents have two pools, tennis courts and miles of walking paths outside the amenities center. Pulte is the builder and the only big disadvantage is that there are not many options or ‘customization' of the homes - but then again that is probably what keep the costs of the building down, too. It looks like a great place for active retirees! If you are looking for an active adult lifestyle in San Antonio, this is a great facility and neighborhood.
If you would like to find out more about Del Webb's Hill Country Retreat, give me a call. I would be glad to take you on a tour of the community. As with all NEW homes, the salespeople who give you those great chocolate chip cookies are representing the seller (BUILDER) - not you. The cost of using a realtor on any new home purchase is already built in - so you will pay it whether you have a realtor or not.
Here is some great information provided by my friend, Kim Kraemer. She is an interior decorator, and I asked her to share some information about recent trends in window treatments. I think I am going to try the UV treatment for my office windows - maybe that will help keep my office cooler on these hot Texas summer days..................
LATEST TRENDS IN WINDOW TREATMENT FASHIONS
Just like the Fashion Industry moves from long skirts to short, glam and glitzy to sleek and contemporary, so follows window treatment trends. Remember the drapes puddleing on the floor (and sometimes the dog piddling on the drapes on the floor)? Well, that trend has passed. So, what's in?
Less is more. Gone are the days where large luxurious light filled windows, with beautiful architectural features, are hidden by heavy pleated drapes. Outdated window coverings are being replaced with solar blinds and screens, or other soft treatment shades, with just a touch of fabric, through stationary panels residing next to the windows. With 10', 12', 14' (and more) high ceilings, these stationary panels reach from ceiling to floor with small rods (usually 14-28 inches). Natural fabrics, such as silk, linen and cotton are great choices for drapes and sheer panels.
Sustainable design and energy efficiency are the new buzz words. Manufactures have responded by developing eco-friendly and energy saving options. Bamboo and woven wood shades, honeycomb and blackout blinds, fabrics that can be used indoors and out, that won't fade, are being introduced into the marketplace, on a daily basis. Energy efficiency and UV ratings have improved.
The blind/shade industry has responded to these larger window sizes by offering more choices and larger sizes of window coverings. Often, shades are mounted inside the window frame. Remotes, that raise and lower shades, are the latest trend. These controls can be either battery powered or hard wired. One remote can control multiple blinds. Heat sensing shades that raise and lower, based on time of day, help homeowners save energy, even when they're not home.
One way to minimize heat, and save energy, is to have window film installed on windows, especially west facing windows. New technology has improved both UV and heat blockage ratings, as well as look and maintenance, of these film products.
All of these options transcend individual client tastes and can be incorporated into your existing home, whether it be traditional, contemporary or somewhere in between. So, the next time you are looking for something to update your home, whether buying, selling or just freshening up, consider dressing your home in the latest window treatment fashions. Your home will love you for it and you'll love your lower electric bills.
San Antonio hits the big time again by being ranked as #10 on the list of America's Best Bargain Cities. To determine which US cities were the best bargain, Forbes evaluated the average salary for workers with a bachelors degree or higher, unemployment, the cost of living, and the housing opportunity index. For the complete article, see the link below.
Austin ranked #1 and all five of Texas's biggest cities - Houston, San Antonio, Dallas and Ft Worth were among the top 10 best bargains.
Ya'll take your time moving here - we don't want to get too crowded! :)
(Reprinted with permission from Forbes)
America's Best Bargain Cities Try these places if you want to get the most for your money. By Zack O'Malley Greenburg
When my clients first start looking at a home purchase, I tell them the most important thing to notice is not the floor plan, the neighborhood, the location, or even the price. The #1 thing to consider when looking at homes is to evaluate whether or not the property might have a resale problem.
Here are the top ten issues to avoid when buying your next house:
•1. Large power lines close to the house - Whether it has been scientifically proven or not, many people believe that these large power lines can cause cancer. Besides that, they are not attractive.
•2. Drainage area or ditch next to the house. If there is a drainage area adjacent to the house, there might be an occasion when the water comes up into the house. There might also be a requirement to purchase flood insurance - now or in the future.
•3. Heavy road noise - if the house backs up to a busy street, I can't think of anyone who would think this is a plus.
•4. Master bedroom upstairs - most families only want to be close to the children for a few short years when they are very young. Then they prefer living on different floors. If the house is a one story, most families prefer split bedrooms on different sides of the house. (Use an intercom if your children are small.)
•5. The most expensive house in the neighborhood - If the house is the most expensive one in the neighborhood, the others will pull its value down. Even if it is much nicer than the others, appraisers and future market analyses will use other homes in the neighborhood to evaluate its worth.
•6. Funky floor plan - Even if you don't cook much, most future owners will want a decent sized kitchen. You need to ask yourself if there are there enough bathrooms for the number of bedrooms. Is there adequate storage? Tiny secondary bedrooms? These are all items that future owners will consider.
•7. Travel Time - How is the travel time to and from? Even if you don't mind the drive, the next owners might.
•8. Foundation issues - repaired or not, guaranteed or not, walk away.
•9. Aluminum wiring - Aluminum wiring was used for a very short time in home construction in the 70's. Then it was discovered that it shorted out easily and could start house fires. Unless the house has been totally remediated (there are several methods) do not consider a house with aluminum wiring.
•10. Elevation and stairs - Does the home have a lot of stairs to get to the front door? Are there a lot of different elevations within the house? Will grandma or small children be able to get around the house without falling?
Please note: The best insurance against buying a home that might have a resale problem is to have a good real estate professional representing you when you are out house shopping!
By Ken Cash, Broker, CRS Coldwell Banker Incline Village Realty Lake Tahoe CA & NV
WHATS THE DIFFERENCE? Bank Owned, Short Sale or Foreclosure...
In my daily business, receiving calls, making calls to my peers, to you and many others and what I've discovered is that most people both inside the industry and outside don't understand the differences between them.
What I have learned and applied to my business I hope will give you an idea about how to go about buying a Lake Tahoe foreclosure, short sale or bank owned property. There are some great deals to be had in Incline Village, but buying them can be very complicated. I urge you to call me to help guide you through this unusual and what I think is a rare opportunity.
Bank Owned: When a home goes to the Trustee Sale and is not sold there on the court house steps (yes they actually bid on them right there in Reno on the court house steps), the property goes back to the bank (or mortgage lender) as the case may be, and becomes an REO. That stands for Real Estate Owned or better known as Bank Owned. They are also referred to as a Foreclosure as unfortunately for some family or investor, the property has been "Foreclosed" on. In almost every case, the homes are sold "AS IS" so you must be very careful. These properties are generally listed with a Real Estate Agent who puts the information in the Multiple Listing Service also known as the MLS. Unfortunately, far too often the bank or mortgage representative known as an Asset Manager, list the property with this agent who is not in the local marketplace so locating and identifying not only the property, but where to find the agent can be time consuming. These homes and properties generally have had liens, additional mortgages, homeowners fees, utility fees placed against them. So working for you, I need to make sure these are all found in our due diligence and removed so we can move along much faster and in the end have a cleaner transaction. I don't want any unknowns after you close escrow that you and I must resolve.
When we present an offer the acceptance time typically takes from a few days to a couple weeks and on occasion much of our work is done verbally until right at the end. I must move your offer forward but not push so hard we loose the buying opportunity. The work loads of the asset manager to whom the property has been assigned are very stressful. Not all deal well with this. I am very accomplished at this, have managed many transactions, so this will all be OK. In some markets, the property can be very distressed, however, here in Lake Tahoe, they seem to always be in reasonably good condition, however, and we will still want to have inspections done. And as in all of these buying opportunities, you need to be pre-qualified by your lender or if paying all cash, provide me with proof of ability to perform. We need to submit that paperwork with our offer on day one. If there is another interested buyer, this may just give us the extra power to win the home for you.
Foreclosures: The word can be misleading as often the property is in a pre-foreclosure where the owner is behind in their payments by several months and the bank has issued them by mail a "Notice of Default" and probably set a date for the Trustee's sale I mentioned above. During this time between the issue of notice of default and the time of the trustee's sale on the court house steps, the homeowner can sell their home and pay off the bank or mortgage company. There are also other measures that can be taken to avoid the foreclosure such as government programs now being proposed. Owners can contact their lender and defer payments or make other arrangements. I truly hope they do and they can. Neither you nor I want to see anyone loose their home.
But if not, the day will arrive and the home will be sold or at least an attempt made to sell at the Trustee's Sale. On this day, the home is sold in a bidding environment and the purchaser must pay for the home in cash or cash equivalent right there right then, at the time of sale. There is no time available to arrange financing. Remember the liens and other mortgages that I mentioned above? You may be buying those as well. You had better be taking great care and caution and know exactly what you are buying. The reason this happens is the trustee may be selling the property for the holder of a second or third mortgage and if you buy under that scenario you could be also be buying the first mortgage and who knows what else. And don't forget, you will be liable for taxes, homeowner association liens, utilities and other liens as well. So as the saying goes, "Buyer Beware".
Short Sales: If the property owner wants to avoid foreclosure and the bad credit that goes along with it, they will attempt to sell the property before the foreclosure takes place. A short sale will be between you and the property owner of record, but the bank must agree to the terms of the sale by discounting the loan balance. Your offer to purchase will likely be less than is owed to the bank or mortgage lender. We will be negotiating with the home owner and the owner in turn will negotiate with the bank who must agree to accept less than is owed when the home is sold. Likely the property owner will owe the difference to the lender bank even after proceeds are given to them. That is why this part takes so long. This is often the trickiest part and why most short sales do not close escrow. The property owner can accept your offer, but that doesn't mean it's a done deal. No no no. The bank must accept the deal too. I have many times experienced the banks rejection of the offer that we and the seller worked so hard to reach. Too often what happens is the buyer and seller agree on the price, and the bank takes weeks to even months to approve and in the mean time, the Trustee's sale and foreclosure happens first. So when I am not too excited about the short sale, it is because we both need to plan on us having 2-4 months for the process to take place and hope we can successfully close escrow. During that time too, you will probably be spending money on inspections, appraisals, escrow fees and if the opportunity fails, you are out that money. There is also in most cases a statement that says, "Not a settlement-in-full" and the deficiency balance remains against the seller. When the seller finds that statement, they too can become less than excited about the process.
I hope this has been of help to you. You should call or email me with your questions. We should also go out and find these great properties, these great homes. Fortunately for everyone, this opportunity will not last forever. As a friend said to me recently, "the money never goes away. It just changes pockets." Let's change some of this money and opportunity to your pocket.
Spring has sprung, and I like to go with lighter desserts this time of year. I took two pies to our last dinner club and got rave reviews on them! I thought I would share the recipes with everyone.
Strawberry Pie
8 oz of cream cheese (I use low fat)
1/3 c sugar
½ c sour cream
1 t vanilla
2 pints of strawberries
8 oz of Kool Whip
Graham Cracker Crust
Wash berries. Slice. Put 1T sugar on them and let them sit while you prepare the filling. Beat cream cheese and 1/3 cup sugar together until consistent. Stir in sour cream and vanilla, then strawberries. Fold in Kool Whip. Pour into graham cracker crust. Chill for four hours.
KEY LIME PIE
2 - 14 oz cans of sweetened condensed milk ( I use low fat, if that makes you feel better)
1 cup of fresh lime juice
2 eggs
Graham Cracker Crust
Combine the milk and eggs. Beat well, then add the lime juice. Beat well. Pour in crust and bake at 325 for 15 minutes. Let cool, then chill for two hours before serving.
You can add this topping, but I don't.
1 c sour cream combined with 2 T powdered sugar and 1 T lime zest.
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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After you determine the amount you are willing to invest in a house, make a list of the features, amenities, and style of house you would like to have.
10. After an agreement is reached with the seller, work with your representative, and your mortgage officer and be responsive the requests for information, signing and returning documents, and staying on top of the administrative details so you can have a smooth closing.
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