San Antonio, TX – July 14, 2010 - According to the June 2010 Multiple Listing Service report by the San Antonio Board of REALTORS^® (SABOR), year-to-date single-family residential sales are up 13 percent when compared to year-to-date numbers from 2009.  For the month of June, the average price remained steady when compared to last June with a zero percent change.  The average and median prices year-to-date were slightly down when compared to this same time period a year ago.                                       

“The trends for 2010 have been good thus far” said Marietta Alba, the San Antonio Board of REALTORS^® 2010 Chairman of the Board.

 “Sales have remained strong and the average and median prices are only down slightly compared to a year ago.”  San Antonio continues to have a small percentage of lender-owned sales year-to-date.  Currently, only 11.8% of sales year-to-date are lender-owned sales.   Additionally, sales continue to remain at affordable prices.  The majority of sales have fallen under $200,000 all year, and June was no different.  Approximately 67.5% of sales fell under $200,000 in June 2010.   “San Antonio really is a great city in which to live,” said Angela Shields, SABOR CEO.  “Our steady market keeps our area affordable, especially as interest rates remain low.  We have not seen the highs and lows that other areas have experienced.”    

The San Antonio Board of REALTORS^® is the largest professional and trade organization in San Antonio and represents over 7,000 REALTOR^® members.  SABOR is one of over 1,600 local boards and 54 state and territory associations of REALTORS^® nationwide that make up the National Association of REALTORS^® (NAR).  Please visit SABOR.com for more information.

          When you plan to buy a new home, pre-owned or new, it takes planning.  This is not a short trip to buy groceries or clothes or any other item.  This is one if not THE largest purchase most folks make in their lifetime.  So it is good advice to plan on what you want, need and future requirements.

          Most folks set a dollar amount in their minds and then go out and look for a home to fit their price range.  This may work sometimes, however in my experience with buyers, is not always a good approach.  Picking a home by size, meaning square feet, also is not necessarily the right approach.  Ask any women this question and get the same answer: Does one size fit all?

           In my younger days, there was a song with the lyric “different strokes for different folks” which applies today, as it did then.  We all have different needs.  Today our needs are different than our needs of tomorrow.  This is where planning comes in.

          For previous generations, a home was built and lived in.  They made do with what they had.  Sometimes, if it was affordable, they could add on tho the home as the family grew.  Today, this is usually not possible due to lot size restrictions, zoning restrictions, deed restrictions and so on.

                                                                                               Our modern solution to a home too small (or too large) is to go out and get another one.  This may have been feasible yesterday, however today times are tough.

          Another change in society, a return to days gone by, is multigenerational living.  Simply stated, this is a family with one or more parents or in-laws in the same home.  Or parents with adult children and their children too in the same home.  Great if you have the room.

          A young couple needs less room than an older couple who may have children, pets, parents, in-laws, their adult children, etc.  A newer trend among new home builders are mother-in-law suites, usually on the ground floor, for occasional visitors or long-term stays.  This is in response to the new-old trend of multigenerational living.

          Please think long and hard about future needs, rather than just your current needs when planning to buy a house.  Think too about the rising taxes you must pay on a home along with the utility costs for a large property.  Otherwise, this will come to haunt you in the future.

          Of course you know my thoughts on using a real estate professional to assist you with your housing needs.  A good real estate agent can be worth their weight in gold (my bias is showing).

          Hope this information is of use and helps you plan well for your next home.

        Much has been said (and written) about the current housing market.  We are not going over old ground here.  Rather, we would like to share with you some facts on the subject of Short Sales. 

       Some have liked the process as a puzzle or maze or some other words not fit for publication.  Suffice it to say, using a real estate professional schooled in the process of short sale transactions is considered in your best interests.  There are specific requirements when utilizing a short sale to transfer ownership of a property.

           The key to any problem in life is knowledge.  One key piece of knowledge is the term “short sale” does not mean “quick” or “fast” or “easy” or anything similar.  A short sale means the lender is willing to allow the property to be sold for less than is owed on the loan.  This is called “selling short” in financial parlance.  The lender takes a hit, although not as hard as if they foreclosed and lost even more on the transaction.

             A seller is the person(s) who sells a property, not the lender.  This is an often misunderstood dynamic in the short sale process.  If your real estate agent says the “lender” must approve the sale, this is incorrect.  The lender agrees to the sales price, given the lender is taking the loss.  This takes any fraud away from the process.  The home owner is responsible to make a good judgement when accepting an offer to sell a property in a short sale scenario. 

           Think of the short sale process as a balance between the owner(s), the lender and the buyers.  All three want the sale to go through.  All three want to feel they did their best on the deal.  And all three want to feel the did not get cheated.  So this is team play for a win-win-win finish.

            Some other points about a short sale misunderstood by many:

            *  Without a lien-holder release, the seller may still be responsible for the remainder of the loan

            *  It is the lender who takes the most time in the processing of a short sale

            *  Short sale usually take longer than a normal real estate transaction

            *  The larger the down payment by the buyer the better the chance of lender approval

            *  Sellers may avoid a short sale if they get a loan modification

            *  Sellers may avoid a short sale through a refi of the existing loan at a lower interest rate

            *  A seller may have to pay IRS taxes on the loan amount lost by the lender as “income” 

           Hope this removes some of the fog from the short sale for you and your family.

[Disclaimer:  Information provided is general in nature and not given as legal or financial advice.  Readers are encouraged to contact a lawyer, CPA or accountant for advice to their specific situations.]

        An article in the Texas REALTOR (July 2010) had some great information for home owners regarding remodeling and the return on investment.  One fact is exterior projects have greater returns than interiors.  One fact is a certainty: do not attempt any projects unless you know you are capable of the work!

        Another import item to address is the subject of work permits.  Call the local office of your town or city administration to see if the scope of your work requires a permit and possible inspections.  Some minor jobs under a certain dollar amount can be don with out permitting.  Others, a permit and inspection are mandatory.  Why is this important to you?

        If your state is like Texas, when you go to sell, the question will be asked about changes to the property.  Were permits pulled.  You must tell the truth otherwise your liability window will be wide open.  Best to play it safe and ask before you even begin work.

        The return on your remodel dollars is not as great as some think or want it to be.  One couple swore their home was worth $300,000 when asking me to represent them to market the home for sale.  When my due diligence was done, at best it was around $245,000.  They had mistakenly believed the work done was worth much more than it was.  Some examples from the 2009-2010 Remodeling Cost vs. Value Report:

        Estimated returns on certain home remodel projects:

        Adding a master suite (the most expensive with the least return) - 61%

        Adding a 16′ x 20′ composite deck - 69%

        Adding a 16′ x 20′ wood deck - 81%

        Attic conversion to a bedroom (highest return of any interior project) - 98%

        Replacing an entry door with a steel unit (highest return in this report) - 239%

        So you see, it makes sense to pick your project with care and proceed with deliberate planning.  Like the old carpenter’s rule: measure twice and cut once.  Do one project at a time.  Do not hurry.  Expect delays.  Hire a professional if you are unsure of your skill set.  Expect cost overruns.

       If the remodel is to market your home for sale, kitchens and baths are where the smart money is.  This will update any home and make the new owners feel proud of their purchase.

       Hope this helps with your future plans and home sale.

          There are many misconceptions about real estate agents.  Because of this, my thought was to share the Code of Ethics from the National Associations of REALTORS® (NAR) we members abide by.  There is a major difference between a real estate agent and a REALTOR®.  Only members of NAR can call themselves a REALTOR®.  We hold ourselves to a higher standard of conduct and enforce our standards amongst ourselves.  By sharing the Code of Conduct, my hope is anyone who reads this will understand our professional dedication and high level of professional conduct demanded among peers.          

Preamble

Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.

Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.

In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®. (Amended 1/00)

Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where REALTORS® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.

The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.

In the interpretation of this obligation, REALTORS® can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, “Whatsoever ye would that others should do to you, do ye even so to them.”

Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of their activities whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below. 

Duties to Clients and Customers

Article 1

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.

          Sixteen (16) more Articles follow.  My hope is you now know to hire a REALTOR® for all of your real estate needs.  We take our profession seriously.

          Call me at (210) 273-9082 with any questions.

        Great news if you are looking to buy a home or refinance your current property.  Interest rates fell to 4.72%.  This is almost a near-record low for interest rates, set in December of last year.

        The 4.72% is for a 30-year fixed mortgage rate.  A 15-year mortgage is at 4.17%.  This shorter mortgage is for those who can afford a slightly higher monthly payment.  It does save a whole lot of interest costs over the life of the loan versus a 30-year mortgage.

        There is action in the Federal government to allow the Federal Housing Administration or FHA authority to reaise monthly premiums.  An FHA loan requires a 3.5% down payment when purchasing a home with a FHA insured loan.

        There are many options open for consumers to buy and even sell a home, using techniques regarding the mortgage.  One is a buy-down where the seller offers a set dollar amount to lower the monthly payments for the buyer for several years.  This makes it easier for the buyer to get into the home and make payments.

        Hope this is of use to those who are buying or selling.  Call us at (210) 273-9082 with any questions.

           While I had the honor of serving on active duty for over 30 years, it is true my weapon was never fired in anger.  This for me was a blessing.  Others during this same period, before and after, have not been so fortunate.  Many of our heroes are gone, yet not forgotten.

          On this Memorial Day 2010, let us all remember those who have paid the price and bought our freedom.  We must not take it for granted or with little regard for the precious cost.

          As a musical tribute to all who have died on behalf of our great Nation, please click this link for a particularly stunning rendition of our National Anthem.  This was at a Texas Tech Basketball game, February 9th. The National Anthem was sung by five young ladies (ages 6-8). You have never heard it performed better than this! An entire arena remains completely silent throughout the song. You could hear a pin drop. Take a moment to listen to this. Trust me, you will not regret it. The two young ladies on the right are 6 years old. The two in the middle are 7 and the one on the left is 8.

          I walked among the crosses where our fallen soldiers lay.

          And listened to the bugle as TAPS began to play.

          The Chaplin led a prayer, we stood with heads bowed low.

          And I thought of fallen comrades I had known so long ago.

          They came from every city across this fertile land.

          That we might live in freedom, they lie here ‘neath the sand.

          I felt a little guilty my sacrifice was small.

          I only lost a little time, but these men lost their all.

          Now the services are over for this Memorial Day.

          To the names upon these crosses I just want to say,

          Thanks for what you’ve given, no one could ask for more.

          May you rest with God in heaven from now through evermore.

                                                                 Poem by C W Johnson

          God Bless America and all her defenders, now and forever.  May freedom ring for eternity.

          Yes, it is hard to believe in these times of tight budgets, shortfalls and unemployment there is such a thing as a Sales Tax Free weekend.  But it is true!!  Check it out at Sales Tax Holiday/Tax-Free Weekend .

         So go take the spouse with you and save some of your hard-earned money this weekend.  Do not procrastinate or otherwise dilly-dangle.  This opportunity will not last past this weekend.  And who knows when it will come again, if ever.

          Now before you go, know this is not ALL sales taxes on ALL items.  This is limited to appliances and this is an opportunity for long-term savings too.

            Appliances such as air conditioners, dishwashers, refrigerators, wahser/dryers (combo) etc., all come with information on how much energy they save you.  This means, you are saving your dollars each month you own and use these appliances.  So you save twice:  on the sales tax and each month on your utility bills.

          So go get ‘em!!!  Whatcha waitin’ for??

        Ah, Spring is in the air!  That must mean the Professional Golfers Association (PGA) annual Valero Open in beautiful San Antonio, Texas.                                                                                           This year, the annual tournament is being held at the newest vacation spot in San Antonio, the  TPC San Antonio course.  This scenic and secluded course is located at the JW Marriott San Antonio Hill Country Resort.  It is one of two courses collocated to take advantage of the same infrastructure.

        The two courses were designed by PGA professionals Pete Dye and Greg Norman.  The resort covers 2800 acres of beautiful Texas Hill Country.  Located just northeast of San Antonio, it is convenient to downtown, the airport and other San Antonio attractions.

        If you have a client who loves to golf, San Antonio is a destination, either for a vacation or relocation.  Our weather, low cost of living, moderate prices on homes, health care, other recreation and recreational outlets make South Texas a great place to live, work and play.  Retirees have discovered us too.

        Getting back to golf, there are over 60 courses in San Antonio.  Some are private, some on military installations and others are public.  With this much to offer, any golfer of any ability can have a great time when visiting or living in our wonderful city.

        If you have any question or need to refer a client to an agent for relocation assistance, please consider us as your real estate partner.  After all, we know the course around here like the back of our hand.

        Have a great day.  FORE!!

        This is a short list of mistakes first-time home buyers make.  Review it and use it when you decide the time is right to buy a home. 

1.    Check your credit report and score - errors can be fixed and you can improve your score in as little as several month.

2.    Get preapproved - the old pre-qual letter is dead.  Now folks want a pre-approval letter with an offer.

3.    Create a long-term budget -  anything over 30% of your net income for housing is a stretch.  A budget is critical.

4.    More than a house payment - there are “hidden costs” to home ownership: utilities, maintenance, HOA fees, etc.

5.    Use a professional - having a real estate agent to bounce questions off of is invaluable.  They do not get emotional!

6.    Find an agent who makes you comfortable - a person who always agree with you may seem nice, yet will they give you the right advice??

7.    The “perfect” home does not exist - a wish list is nice, yet not cast in stone.  Some concessions must be made.

8.     Hire a home inspector - a MUST for any home purchase.  Even the owners may not be aware of problems.

9.     Do your research - 1, 2, 3 or more visits to a neighborhood BEFORE you buy.  Ask questions and seek answers.

10.    Think about the future - resale future that is.  Is this a good investment?  Will the property/area hold value?

11.   Do not become emotional - guard against falling in love with a home, keep an open mind and stop picking out colors.

12.   Take your time - do not rush into any contract.  Control your emotions.  The right home is there waiting for you.

As always, call me at (210) 273-9083 with any questions.