Becky’s Blog - SA Real Estate & BEYOND

I love educating my clients about real estate transactions.  But I am still surprised that so many buyer’s don’t know how a Realtor works and why they should have one in the home buying process. 

Did You Know…..?

• A professional Realtor’s services for the Buyer is usually FREE OF CHARGE.  Our commission is paid by the Seller.
• If you decide to drive around and call on the signs that are in front of homes, you are most likely speaking with the SELLER’S agent who CANNOT represent YOU in the transaction. 
• Realtors are professionals and are licensed by the State.  We are required to treat you fairly and have your financial interests above our own.  Realtors who break the rules could be fined or lose their license.

Are you a CUSTOMER or a CLIENT?

What’s the difference you ask?  Simple.  A customer (in the real estate world anyway) is someone who is NOT committed to an agent NOR is an agent committed to them.  A client is someone who has signed an agency agreement and has a professional Realtor committed to them and their interests, and in turn they are committed to working with the agent. 

What happens if you pick a REALTOR’S brain?

• Knowledge of local neighborhoods & school districts
• Can help you find reputable lenders
• Can provide you with a list of insured home inspectors
• Proximity of local shopping and restaurants
• Lots more, just ask!

If you’re seriously looking for a home, have found an agent that you like and trust, give him/her the opportunity to work hard for you.  Sign a Buyer’s Representation agreement.  We want to find you a home you’ll love so you’ll tell your friends and family about what a professional and committed agent you’ve found!

Well not rumors exactly.  I’ve been hearing some positive news from various sources about the real estate market.  Let me share some that I’ve picked up on over the past few days. 

•  According to Forbes.com, Matt Woolsey, San Antonio is among the top ten cities in the US that home prices are expected to rise.  These cities are likely to be ”vibrant markets because jobs are increasing and the housing market wasn’t overbuilt during the boom.”
• Headline in the San Antonio Business Section, August 27, 2008:  “Consumer outlook rises by most since 2006.  Two reports hint bottom may be nearing in the housing market.”
• Headline in the San Antonio Business Section, August 26, 2008:”Existing home sales rose in July, Bargains bring back the buyers.”
• A loan officer whom I work with frequently told me that her business has increased recently. 

What does all of this mean?  Well, If I had a crystal ball, I could pick the next six lotto number, …. no I mean, so I could see if we were at the turn in the market but I don’t.  We’ll just have to wait and see what happens however, good news is always better than bad news!

According to MSN, San Antonio is among the “great, affordable treasures” regarding bargain places to live.  Hey we made number 5 out of the top 100.  That’s pretty good! 

Here’s part of the article that appeared on MSN.com:

To develop the 2008 MSN Real Estate Most-Livable Bargain Markets list, we asked Bert Sperling of Sperling’s Best Places to evaluate the most affordable housing markets from the 100 largest U.S. metro areas and pinpoint the nine most livable areas: places where unemployment is low, commute times are short and there’s enough interesting entertainment or recreation to keep most people busy. We defined affordability by the ratio of median income to median home price.

Moving to one of these cities could allow you to “sell your two-bedroom bungalow in Southern California … and buy a house on a number of acres and suddenly have a nest egg you’ve never had before,” Sperling says.

The cities chosen for our list have a population of at least 500,000 between the major city and surrounding county. They range in size from Harrisburg-Carlisle, Pa., with a population of 525,380, to one of the nation’s largest metropolises, Dallas-Fort Worth, with a population of 6 million. Three are state capitals, and many have universities or colleges to provide cultural amenities.

Here’s a look at what makes these cities in the middle of America great, and the drawbacks you might find in moving from another area.

San Antonio

For such a big city — eighth-largest in the nation — San Antonio feels remarkably like a town. It has a strong sense of community and plenty of festivals, shopping, theme parks and other entertainment to keep most families happy. The modern city is home to numerous historic neighborhoods and sites including the Alamo, the Spanish Governor’s Palace and the River Walk, which contains shops and outdoor restaurants along the San Antonio River, just below street level downtown.

Thanks to the current demand for oil, the economy here is booming and there is a mix of neighborhoods catering to just about every taste and income level. The Texas Hill Country, which surrounds the city, provides numerous opportunities for outdoor recreation and tourism.

Cons: The city’s biggest drawback can be summed up in one word: heat. Extreme heat and humidity in the summer can make it hard to enjoy the city’s wealth of cultural and recreational amenities. And crime is higher here than in other cities of the same size. 

FREE money sounds like a come on but it’s for real!  I received some information from a lender regarding a Down Payment Assistance Grant from the City of San Antonio.  Here are a few details:

• Up to $20,000.00 for Down Payment and Closing Costs
• Forgivable over 5 years
• Property must be in City Limits of San Antonio
• No Sales Price Limit
• Only 1% of sales price out of pocket
• MUST be first time home buyer
• Limited time in August and September, 2008
• HURRY — HURRY  — HURRY!

That’s it, there are some income limitations but contact me for more information!

I can be reached at 210-710-6478 or beckysellssa@hotmail.com.

Hurry, free money doesn’t last forever!

The weather is hot and so are the builder incentives here in San Antonio.  So check out these great incentives listed below and give me a call if I can help you find your new home.  Remember, these are not all inclusive and do have expiration dates so if you are interested in a certain builder, give me a ring and I’ll check it out for you. 

• RYLAND HOMES:  Buy before July 31, get $12,000 in Flex Cash, $5,500 in closing costs, plus price protection.
• MCMILLIN HOMES:  Zero move in:  0 closing costs, 0 pre-paids, 0 downpayment.
• MAIN STREET HOMES:  Up to $5,000 in incentives on select homes.
• KB HOMES:  Zero down on any built to order homes

Lots of builders are offering bonuses for Realtors.  As always, I’ll split this bonus with you.  That’s free money!  Call me today for more information. 

Shady Oaks is my neighborhood, hard to find but easy to love.  We are one of those little communities that was founded back in the late 1950’s and used to be waaaaaayyyy out in the country but of course, San Antonio has grown so now we are in a fabulous location tucked in the woods right off of 281 and Brook Hollow.  A little personal history:  My family lived in San Pedro Hills for 10 years and during that time we were very happy.  I always said that if I were ever to move, it would be to Shady Oaks.  Well one day on the way to a garage sale in Shady Oaks, I spotted a little, tiny “For Sale By Owner” sign.  We looked at the house twice that day and SOLD!  So being a resident for the past four years, I feel somewhat qualified to put together this list.  So here goes…..

1. Location, Location, Location.  OK, OK, I’m a Realtor and we always say this BUT it’s true!  The location is absolutely great!  We are 5-15 minutes drive from almost anywhere I need to go in town including:  highly rated schools, great shopping, local grocery store, the airport, parks, hotels, hospital, downtown/River Walk, fantastic variety of restaurants, major freeways and any tourist attraction in town!   BEST of all, rarely any traffic to deal with near our neighborhood! 
2. Charming Older Homes - More Character.  Most of the homes in this neighborhood are 20-40+ years old.  We are definitely not a cookie cutter neighborhood.  Different age homes, different builders, different styles.  Some of the variety include a stucco Spanish style, two story Colonial style, sprawling brick Ranch style, a stunning Frank Lloyd Wright style home and a Hill Country Limestone homes.  Some homes have been totally remodeled inside and out and some retain their original exterior.  So variety is the spice of our neighborhood!
3. Big Lots (Not the Store!):  The homes in our area are on 1/2 to 2 acre lots which adds to the variety and the country feel.  None of this “Hey neighbor, pass the soap!” for us, we truly enjoy our elbow room.
4. Deer and Other Critters:  Since we have a lot of areas for water runoff that are wooded, we have an abundance of deer and other woodland creatures. I’ve seen raccoons, skunks, possums, hawks, coyotes and the always lovable vultures.  Last spring, a Cardinal built a nest inside the top of my patio umbrella.  We watched the whole cycle from nest building, to egg laying, hatching, feeding and the birds leaving the nest, all from the comfort of our patio chairs below!  Some folks feed the deer, we’ve seen quite a few fawns recently and they are just adorable to watch.  Kids just love visiting us, it’s like a stay at the petting zoo.
5. Country Living in the City!  This neighborhood is very wooded, most homes enjoying the shade of many Live Oaks and a variety of other trees.  Some are very large and probably more than 100 years old.  Also, it’s dark here at night, although we have some street lights, there aren’t too many, I enjoy the darkness, not a big old light blaring in your windows at night.  It’s quiet, although being in the middle of the city, we do hear some noises like sirens if they’re close but mostly we hear the crickets and cicadas.  My home faces a wooded water run off drainage area.  So I am not looking at another neighbor’s house, I look at trees!  There are several of these run off areas and other neighbors are as fortunate as I am.
6. Great Schools Nearby:  We’re in the highly rated Northeast Independent School District, with the schools being Coker, Bradly and Churchill.  Quite a few kids in the neighborhood walk to Bradley since it is located directly behind the neighborhood, Coker Elementary is just a few minutes drive away and Churchill is serviced by the district bus. 
7. Great Neighbors!  Many of the neighbors are the original residents!  As I say, once you live in Shady Oaks, you don’t leave!  I’ve had the privilege to meet many of the older neighbors who built their home here.  It’s great to hear their stories of how the city has grown around Shady Oaks.   
8. No Mandatory HOA:  Our Homeowners Association is voluntary, with whopping $15 per year dues.  Quite a few people I’ve met as a real estate agent have told me they love the idea of no HOA and it seems to work well for us.  Our HOA does meet quarterly and have recently done some improvements such as sign repair and speed bumps but overall we’re pretty much on our own.
9. Walkers, Joggers and Cyclists Love Us!  Because we seem so rural and there are lots of trees and hilly streets, our area is very popular with walkers, joggers and bicyclists.  When I go walking, I get to meet my neighbors and folks from nearby neighborhoods as well.  I then meet these same people at my open houses in Shady Oaks, they know how great this area is and want to live in here!
10. Great Resale Value:  Although nobody has a crystal ball to know what the future will hold, this neighborhood has been very sought after in the past years because of all of the reasons listed above.  Houses typically don’t stay on the market very long, some selling in days.  Even in this recent challenging real estate market, houses in this neighborhood have sold relatively quickly.  I have a list of folks wanting to live in Shady Oaks and they are set up on email notification anytime something comes up for sale in this neighborhood.  It’s nice to be popular! 

If you watch the national or local news every day, you probably feel like taking a trip to the Grand Canyon right about now and making the last jump.  BUT don’t take that trip just yet especially if you live in Texas and more specifically, my neck of the woods, San Antonio!  We like everyone, are experiencing a slowing in the market but not in such a degree as those cities hit especially hard.  We do however, continue to receive encouraging news from several sources regarding our real estate market and I thought I’d share these with you! 

Increased Appreciation in 2008!  What you say?  INCREASED appreciation, you mean this year, the year of the “R” word, where all news is doom and gloom, wow!  Surprised you didn’t I?  Well it’s true and as reported by the San Antonio Express News, on July 13, 2008.  Of course, some neighborhoods are doing better than others, but an increase is an increase and this is good news to be sure!  The following are ranked based on average price appreciation between January 1 and June 24, 2008:

1. Stone Oak     +29.0%
2. The Dominion     +12.2
3. Colonies North     +8.6
4. Olympia     +5.9
5. Olmos Park     +5.4
6. The Vineyards     +5.3
7. San Pedro Hills     +4.7
8. Elm Creek     +4.3
9. Alamo Heights     4.1
10. Harmony Hills     +2.8
11. Churchill Estates     +2.4
12. Westcreek     +2.2
13. Deerfield     +1.5
14. Camino Bandera     +0.9

The article says that the appeal of these neighborhoods are buyers looking for homes near highways, near major retail areas and plenty of trees. 

Top 10 Cities to Buy a Home  Forbes magazine conducted a survey of the 40 largest metropolitan areas looking for cities where home prices have appreciated over the past two years, also measuring vacancy rates. 

Forbes said “Financially, at least, the best places to buy houses are those where buying costs less than renting, tax incentives are attractive and there’s an opportunity to build equity.”  Without further adou, here is the list.  (Being a native Texan, I should point out that Texas does dominates the list but I won’t brag as my Mama told me it wasn’t nice….)

1. Houston
2. Austin
3. St. Louis
4. Philadelphia
5. San Antonio
6. Dallas
7. Charlotte, NC
8. San Francisco
9. Jacksonville, FL
10. Atlanta

Source:  Forbes, Mauma Desmond (7/14/08)

Investor News:  And for your investors out there, you know who you are, good news also!  According to the Investor’s Business Daily, Kathleen Doler (7/7/08), “Cash is king and this is the best time for investors since the early 1980’s.” 

“What we’re seeing today dwarfs [the 1980s] by five or 10 times,” says Bob Leonetti, president of SMI Funding, an Austin, Texas, company that originates and acquires private and conventional mortgages. “There are huge opportunities for investors.”

“People who have cash positions now are going to do very well,” says Central Florida real estate practitioner Mike Norvell of Developers Capital Realty in Leesburg, Fla. “It’s just crazy the prices you can buy for right now for cash.”

So there you have some GOOD NEWS about our local and state real estate market.  It’s not $1.00 a gallon gas but if you’re in the market to buy real estate, you’d better get on the buyer’s bandwagon before it’s gone! 

I was pondering the phrase the other day…. customer service, hmmmm.  Doesn’t that imply that there’s some type of SERVICE involved or connected with the process?  A hint at what the person’s job function may be?  A clue to what is expected? 

I had the unfortunate and rare occasion to visit the emergency room recently.  Now I know how hard these folks work.  Please don’t get me wrong.  I am in sincere awe of the medical profession in general, there are so many skilled and caring individuals that I have run across in my lifetime, I am amazed by their ability to care for the human body and spirit. 

Unfortunately, that’s not the caliber of a few people I ran across, all in one day!  In some individuals, not a hint of caring or compassion did I witness.  Maybe “service” isn’t the right word to use in the medical profession, maybe “patient care” is what they’d prefer.  Whatever you call it, it all comes down to taking care of the “customer/patient”.  Case in point, front desk person at emergency room.  Your first face person, the person who decides whether you live or die, ok, ok, ok, just kidding ….not that much responsibility but nonetheless, an important person in servicing the patients, I would think.  This person had less energy, caring and enthusiasm for his job than any human I have ever seen.  I think they must have misplaced this guy.  Does the morgue need a receptionist?  Oh, I digress.  Nope, no compasson there…  Oh, and a special thanks to the burley guy who’s idea of gently removing the IV imbedded in my hand is by ripping the tape, needle and the whole unit off sideways with one swoop!  Ouch!  Nope, no caring there…  Oh and not to forget the doctor’s office NEVER returned my call or the ER doctor’s call to their office.  Did they lose my file ….or the number to the hospital?  Hmmmm, nope, no concern there. 

So let’s give some kudos to those people who really understand that their job involves some type of service to the other humans.  Oh, I am pretty sure these folks make less money than folks in the medical profession so ……….more money doesn’t equal more caring apparently!  Money can’t buy you love!  Hey …the Beatles got it right!

Waterford Retirement Village:  Kudos to the employees and servers there.  They are always so kind and pleasant.  They are not allowed to take tips but once a year yet these are the friendliest and most accomodating people I’ve seen taking care of our elderly.  I’ve never heard one harsh word spoken there or never was a lack of service for the residents. 

Royal Caribbean Cruise Line:  Wow, kudos to all those people who work in the service industry.  The best service I ever experienced was on this cruise line.  I’ve always thought that every service person should take a cruise to see what EXCEPTIONAL customer service looks like.  I’ve travelled Princess and Norwegian cruise lines.  No comparison.  Yes they work for tips, but they are really optional.  Excellent, excellent service from the wait staff to the room stewards and everyone in between.  Been on 4 cruises with them and never had a bad time nor subpar service.

USAA:  What a great company!  I’ve had a membership for years but only in the last few years switched my insurance to USAA.  Wow!  What great customer service.  Anytime I’ve had occasion to call them, they were quick, responsive, polite and got the job done!  Perfect.  Now I’ve also told my two grown kids about their service and they too have joined the bandwagon.  They were impressed, too!  Hard to believe their mother was right! 

Costco:  Have you ever had a problem with this company?  Every time I had an issue, it was resolved to my complete satisfaction.  My husband recently had some eye glasses delayed in delivery.  They then sent us a small gift card to apologize for the delay.  Nice touch! 

Randall’s Supermarket:  When I lived in Houston years ago, Randall’s was the higher end supermarket.  One of the clerks told me that they weren’t allowed to say “I don’t know” to a customer, they were instructed to find the answer out.  I thought this was a great policy.  Think about this the next time a clerk tells you “I don’t know” and stares at you like a deer in headlights.  Snap out of it…. FIND OUT, it’s called CUSTOMER SERVICE!!!

Real Estate Agents:  Wow, you’re thinking, she’s really going out on a limb here, isn’t she.  Well, yes I am.  I expect you, Mr. & Mrs. Customer, to not take poor customer service.  I am personally acquainted with many real estate agents who work 7 days a week, taking great care of their clients.  I personally strive to go above and beyond what is expected of me by my clients, and so do alot of my fellow agents.  On on the other hand, I get calls from people regularly who ask me questions about a property or want to see a house, when I ask them if they have an agent, they tell me yes.  When I ask them why they didn’t call their agent, they said “Well, he’s too busy” or “She hasn’t returned my call”.  Hello?  If you have an agent and you can’t get what you need from them, GET A NEW AGENT!  If you’re a reasonable client, not one that calls at midnight expecting an answer, mind you, I said reasonable, you should expect a return call within a rrealistic amount of time.  If your agent is leaving you frustrated, it’s time for a heart to heart talk…. or maybe a new agent! 

If you are in the customer service industry and a great majority of us are, please review your own service to clients/patients/customers and see if it reflects the kind of service and care YOU would like to receive if you were on the other side of the transaction.   

You’ve heard this expression but sometimes we don’t know how this affects our lives.  Shelly Cohn with United Lending has been so kind as to write this blog about The Credit Crunch. 

The Credit Crunch   If you watch TV or get your news from the internet or local paper, you have heard this term often lately.  So what exactly does it mean and more importantly how does it affect you?  I have talked with many prospective homebuyers who have no idea the credit crunch will have a bearing on their ability to purchase a home.  On the reverse side, I’ve spoken with many others who are convinced they won’t ever be able to obtain any type of mortgage due to current economic issues.  In reality, the truth lies somewhere between these two viewpoints. 

Simply put, the credit crunch means that right now it is harder to obtain credit than in the past.  For purchasers with poor or marginal credit, this means they may not be able to obtain a credit even though they may have qualified for a loan as little as six months ago.  For borrowers with good or excellent credit, it means they will be able to obtain credit.  However, their options may be much more limited than before.

A prime example  is the mortgage loan with a first and second lien.  Not more than a year ago, borrowers with good credit and even some with poor credit (which no doubt contributed to the current economic problems) were able to obtain 100% financing for a mortgage loan by utilizing two liens.  This type of mortgage is called an 80/20 loan.  With this type of loan, the mortgage is structured by issuing a first lien at 80% of  the purchase price.  A second lien is also issued at 20% of the purchase price.  The borrower with this type of loan is not required to produce a down payment.  They also are not required to have mortgage insurance on the loan.  For these reasons, the 80/20 has been extremely sought after by home buyers. 

Today, however,  the 80/20 loan is becoming a thing of the past.  Most lenders will accept a first lien with a 20% second lien attached, but they are not willing to carry that second lien.  The second lien is subordinate to the first lien.  In the case of foreclosure, the second lien holder is often times out of luck.  The few companies that are still offering the 20% second liens have tightened their guidelines considerably.  They have raised interest rates,  established higher guidelines for credit scores, enforced maximum loan amounts for second liens, and limited  the number of properties the borrower can own among other things. 

Another example of the credit crunch is the demise of the low documentation loan.  The low documentation loan was originally established for self-employed borrowers who had sufficient income but had a hard time proving income through traditional means.  Today, the industry’s outlook on these types of loans is less than desirable.  In their heyday, these loans were often referred to as liar loans.  Many borrowers were encouraged to obtain financing at a much higher amount than they actually qualified for simply by overstating their income on their loan applications.  Competition and greed pushed these loans to the forefront as many lenders offered true no documentation loans with as little as a 5% down payment and credit score requirements in the 600 range.  Needless to say, many of these loans ended up in default.  It is increasingly difficult for self employed borrowers to obtain low documentation loans today.  Larger down payments are required, credit score requirements are higher and more verifications are in place.   

Understandably, many credit worthy borrowers are upset over the loss of options.  It is important to remember, though, these changes and limitations don’t signify a major crisis for the average consumer.  Ten years ago, borrowers never imagined they would by a home without a down payment.  And for   borrower with good credit, there are still options available.  For those with marginal credit, now is the time to work on getting it back in order.  Many lenders are willing to help consumers come up with a plan to repair credit and raise scores.  Also, with less risky loans available these borrowers won’t end up with more problems down the road .  When they do obtain a loan, it is likely to be a loan that won’t set them up for failure.

The leniency in the mortgage industry led to many of the problems we are facing today.  Simply put, the credit crunch is a response to that leniency and a return to a more traditional market.  Some of these corrections may seem extreme.  As the economy recovers, we should experience a loosening on some of these restrictions as more reasonable guidelines are put in place.  Let us hope, however, the extreme leniency of the past does not have a place in our future.    

If you have questions for Shelly, please contact her at 210-408-6060.

UPDATE, JULY 24, 2008:  PRESIDENT BUSH WILL SIGN A BILL THAT WOULD ELIMINATE DOWN PAYMENT ASSISTANCE PROGRAMS INCLUDING THE OLDEST PROGRAM, THE NEHEMIAH DOWN PAYMENT ASSISTANCE.  UNFORTUNATELY THESE PROGRAMS WILL NO LONGER BE AVAILABLE EFFECTIVE OCTOBER 1, 2008 TO HOME BUYERS WHO WOULD NEED ASSISTANCE WITH DOWNPAYMENT.  OTHER PROGRAMS MAY BE AVAILABLE AFTER THIS WRITING, CHECK WITH YOUR REALTOR OR LOAN OFFICER.     

 My friend Shelly Cohn, with United Lending is my guest blogger this week.  She has written a blog about a program designed to assist buyers needing help with downpayment. 

Are you looking to get into a home without any cash out of your pocket?  If you have been shopping for a mortgage, you may be surprised to learn your options for ZERO down payment loans are limited these days.   The credit crunch and mortgage industry upsets have almost made the “no down payment” loan a thing of the past. 

There are, however, a few programs still available.  If you are active duty military or a veteran, you may qualify for a VA loan which does not require a down payment.    Many consumers have also heard of county or state assisted mortgage loan programs designed to serve low to moderate income families and underserved neighborhoods.  These assisted loans typically have maximum income limits, are limited to certain geographic areas and first time homebuyers.  The money to fund these programs is released on a limited and first come first serve basis. 

 Another option, which many people are unaware of, is the Down Payment Assistance loan.  The Down Payment Assistance loan can be used by both first time homebuyers and repeat homebuyers and does not have income limits or geographic restrictions.  Also, repayment  of gift funds is not required.  The funds are available year round.  Money for the down payment assistance is granted by a charitable organization which has been set up to participate in this type of transaction. 

So, how does this work and who is eligible?  To be eligible for a Down Payment Assistance loan the home buyer simply must qualify for an FHA loan (government backed).  The seller of the home the buyer is purchasing also must be willing to participate.  The seller is required to make a donation to the charitable organization along with a fee to participate in the program.  The amount of the seller’s donation is equal to the amount of money the buyer will be granted.  While the money from the seller does not go straight to the buyer, this is an item which must be negotiated in the purchase offer between buyer and seller. 

Many times when buying a home, the purchaser will ask the seller to contribute a cash amount to the buyer’s closing costs.  A down payment assistance program works in a similar manner.  The buyer asks the seller to contribute a cash amount to the charitable organization.   Remember, the amount requested is a negotiable item just as the sales price and amount of other seller contributions are negotiable items.  The amount of the donation requested  and of the gift to the buyer from the organization can range between 1% to 6% of the home’s purchase price. 

To participate in the program, the buyer and seller must work with a registered Down Payment Assistance organization  and use the appropriate forms.  In today’s changing market, many sellers and home builders are advertising  their willingness to participate in a Down Payment Assistance program.   If the home you are interested in is not advertising the program in their marketing material, don’t hesitate to ask.   Most sellers are willing, once they understand how the program works.  To get more information,  let your realtor and your lender know you are interested.     

More information can also be found on the Nehemiah Program website, www.getdownpayment.com .  The Nehemiah Program is the nation’s largest privately funded down payment assistance program.  Their  website offers useful information for both buyers and sellers, as well as homebuyer education classes.  When visiting the Nehemiah website, be sure and check out the Nehemiah Listing System and the Nehemiah New Home finder for homes for sale in your area offering this program.

Shelly Cohn, United Lending, can be reached at 210-408-6060.