There are almost 12,000 homes for sale in San Antonio, TX and I've been answering the question "So how's the market" with the response "It's actually very good... Why do you ask?"
In the last few months I've met a lot of first-time home buyers and a lot of them are timid and concerned about the process. Well, when I read the April 25th edition of the San Antonio Express-News article How much house can you afford? I knew I needed to respond.
First off it was a very good article and believe that first-time home buyers should read it on-line if they get the chance. The first thing a buyer should do is to get pre-approved with a Mortgage Banker. Now one of the things that everyone should remember is that the lower the interest rate the higher the price of the home you can purchase. However; the caveat with this obvious rule is that no one should ever spend more money than what makes sense with their budget.
The other thing to remember about interest rates is that right now while they are very low, they are also extremely volatile and can go up very quickly. The chances of them going lower is slim based on everything I've read lately and what I've been told from reputable mortgage bankers like WR Starkey. The relationship between the cost of a home decreasing by $5,000 and the interest rate increasing by 0.5% means that you would increase your monthly payment by about $3-5 per $100,000. If you want to prove this for yourself, look at the principle and interest on a $100,000 home at 5.5% and compare it to a price decrease of $5,000 ($95,000) and an increase of 0.5% (6.0%). Once proven, you should immediately call your Realtor and schedule a meeting to view homes that day.
The last thing I'd like to comment on is what to consider when purchasing your first home and that is resale. The Express-News indicated that first-time home buyers typically stay in their homes 4 years so yes, resale is very important when purchasing for the first time. Buying a home at the right price, that will retain and hopefully increase in value is extremely important. So choosing one that is very old, unique, a fixer-upper, and appeals to your unique tastes may not meet the "resale" factor. So what is it that I recommend? Vanilla homes. You know, the typical 3 bedroom, 2 bath, 2 car garage with a good floor plan in an area that is notorious for consistent sales year after year. So how do you find these homes... meet with a San Antonio Realtor.
Thanks for reading.
Wednesday, May 6, 2009
Tuesday, May 5, 2009
First-time Home Buyers
Remember when I said I read the real estate section of the newspaper? Well this blog is about the Guide for the first-time buyer article that was written in the March 22, 2009 edition of the San Antonio Express-News.
What a lot of great advice!
First off you should get your financial paperwork in order and get pre-approved before you start looking for a home. I have a suggestion that differs from the article and that suggestion is to get pre-approved through a Mortgage Banker not a broker. The article states that you should be pre-approved to know what you can spend on a house but I take it a step further. With my clients I believe they should know what the monthly payment is they are comfortable with so that they can not only enjoy the home but continue enjoying life too. Lots of times the lender will pre-approve you for a home that has a payment higher than what you want to spend on a monthly basis. What needs to be understood is that they do this based on the data they are provided and the Mortgage Banker you hire should be your advocate and understand what you are comfortable with paying monthly.
Foreclosures are discussed in the article and I believe they should not be considered at all if there is a lot of visible damage such as rot, holes in walls, or roof damage especially if the first-time home buyer is going to get a VA or FHA loan. Why is that? Well there will be lender required repairs and the bank won't do them usually. At times your lender may be able to put together a repair escrow so definitely ask about this when you sit down with your Mortgage Banker.
Disclosure of your income, debts and liabilities is extremely important when you meet with your Mortgage Banker. The reason for this that your lender will need to verify all the information you provide so that when you do find the home you want to purchase there is less of a chance that the loan won't be denied. Remember that just because they may qualify you for an expensive home doesn't mean you have to buy one that high.
Shopping - Wow with over 11,000 homes for sale in San Antonio at http://www.sarealtywatch.com/ you can get so caught up in the shopping thing that you can absolutely be traumatized and stunned into inaction. So my advice to you is to sit down with a REALTOR who will educate you on the market and help you outline your wants and needs.
When I sit down with first-time home buyers we discuss their dreams and successes thus far and end up with a path towards owning a house that becomes a home. It is incredibly satisfying.
What a lot of great advice!
First off you should get your financial paperwork in order and get pre-approved before you start looking for a home. I have a suggestion that differs from the article and that suggestion is to get pre-approved through a Mortgage Banker not a broker. The article states that you should be pre-approved to know what you can spend on a house but I take it a step further. With my clients I believe they should know what the monthly payment is they are comfortable with so that they can not only enjoy the home but continue enjoying life too. Lots of times the lender will pre-approve you for a home that has a payment higher than what you want to spend on a monthly basis. What needs to be understood is that they do this based on the data they are provided and the Mortgage Banker you hire should be your advocate and understand what you are comfortable with paying monthly.
Foreclosures are discussed in the article and I believe they should not be considered at all if there is a lot of visible damage such as rot, holes in walls, or roof damage especially if the first-time home buyer is going to get a VA or FHA loan. Why is that? Well there will be lender required repairs and the bank won't do them usually. At times your lender may be able to put together a repair escrow so definitely ask about this when you sit down with your Mortgage Banker.
Disclosure of your income, debts and liabilities is extremely important when you meet with your Mortgage Banker. The reason for this that your lender will need to verify all the information you provide so that when you do find the home you want to purchase there is less of a chance that the loan won't be denied. Remember that just because they may qualify you for an expensive home doesn't mean you have to buy one that high.
Shopping - Wow with over 11,000 homes for sale in San Antonio at http://www.sarealtywatch.com/ you can get so caught up in the shopping thing that you can absolutely be traumatized and stunned into inaction. So my advice to you is to sit down with a REALTOR who will educate you on the market and help you outline your wants and needs.
When I sit down with first-time home buyers we discuss their dreams and successes thus far and end up with a path towards owning a house that becomes a home. It is incredibly satisfying.
Monday, May 4, 2009
Credit Scores and San Antonio Homes for Sale
I read the newspapers every week... Well at least the real estate section. On April 11, 2009 the San Antonio Express-News published an article titled When the Score matters and I have a few comments about it.
It explains how your credit score can affect your ability to purchase a home and what you can do to lower the interest rate on a mortgage when you purchase a home. My thoughts on this article are directed towards those individuals out there who may be thinking that they will never be able to purchase a home and fear is holding them back. So what should they do?
1. Stop living in fear! Listen up everyone, there is hope out there, but you need to Take Action to help yourself.
2. Get a hold of a Mortgage Banker and have them pull your trimer credit report. With this report that has all 3 of your credit reports on it, you can figure out exactly what companies need to be contacted and what needs to be discussed.
3. Follow-up and Follow-through with all the companies that need to be communicated with.
These companies can be identified with the help of your mortgage banker. Oh, if you are wondering why I specifically mention a mortgage banker instead of mortgage broker is because a mortgage banker has more control of the process from loan application to closing than a broker does.
Sometimes the steps needed to increase your credit score are numerous but sometimes there is a silver lining and only a couple things can be done and the score can be increased quickly. So what are you waiting for? Please contact me via my website at http://www.sarealtywatch.com/ and look at my preferred vendors list.
It explains how your credit score can affect your ability to purchase a home and what you can do to lower the interest rate on a mortgage when you purchase a home. My thoughts on this article are directed towards those individuals out there who may be thinking that they will never be able to purchase a home and fear is holding them back. So what should they do?
1. Stop living in fear! Listen up everyone, there is hope out there, but you need to Take Action to help yourself.
2. Get a hold of a Mortgage Banker and have them pull your trimer credit report. With this report that has all 3 of your credit reports on it, you can figure out exactly what companies need to be contacted and what needs to be discussed.
3. Follow-up and Follow-through with all the companies that need to be communicated with.
These companies can be identified with the help of your mortgage banker. Oh, if you are wondering why I specifically mention a mortgage banker instead of mortgage broker is because a mortgage banker has more control of the process from loan application to closing than a broker does.
Sometimes the steps needed to increase your credit score are numerous but sometimes there is a silver lining and only a couple things can be done and the score can be increased quickly. So what are you waiting for? Please contact me via my website at http://www.sarealtywatch.com/ and look at my preferred vendors list.
Sunday, May 3, 2009
1031 Exchange and leveraging money
My first comment here is that I just found an error in my commercial newsletter I sent out the other day. Here is what I wrote:
There are two points that need to be closely adhered to in order to qualify for a 1031 exchange. First, the total purchase price of the new investment property must be equal to or greater than the property being purchased. Second, all the equity received from the initial sale must be used to purchase the replacement property. If there is any shortfall in the purchase price of the similar property, the investor will be liable for any capital gains taxes associated with the sale.
Now the first point is correct with the exception that the last word in that sentence should be "sold" not "purchased". Please forgive this error as it can be pretty critical! To read the entire newsletter please read Business Success Today at http://www.sarealtywatch.com/.
There are two points that need to be closely adhered to in order to qualify for a 1031 exchange. First, the total purchase price of the new investment property must be equal to or greater than the property being purchased. Second, all the equity received from the initial sale must be used to purchase the replacement property. If there is any shortfall in the purchase price of the similar property, the investor will be liable for any capital gains taxes associated with the sale.
Now the first point is correct with the exception that the last word in that sentence should be "sold" not "purchased". Please forgive this error as it can be pretty critical! To read the entire newsletter please read Business Success Today at http://www.sarealtywatch.com/.
Friday, January 16, 2009
San Antonio Real Estate Market - Don't believe everything you read
I just read the January 16, 2009 article in San Antonio Express News titled S.A Home-Price Fall is Biggest in Decade. My first reaction to the article was they are wrong, but I continued to read before I set about doing my own research.
The article goes on about how the median price of homes in San Antonio fell 7% to $139,900 in December 2008 from $150,700 in December 2007. Bob Gardner presented data not more than 2 weeks ago showing the median home price in San Antonio went up by $300 in 2008. The 2009 SABOR Housing Forecast data was based on analysis of the San Antonio real estate market and here he was being quoted in the paper as saying "It's just disappointing"... "The December numbers didn't show any improvement. I was hopeful that it would." Now my take on the article is that it is very possible that some things may have been taken out of context so I looked at some numbers using the tools provided by the San Antonio Board of Realtors and this is what I came up with.
Basis for analysis: All Areas within the San Antonio BOR
Jan 1-Dec 31, 2007: 22927 units sold; Med Sales Price $150,000; Ave Sales Price $183,161
Jan 1-Dec 31, 2008: 18412 units sold; Med Sales Price $150,000; Ave Sales Price $185,525
Dec 1-31, 2007: 1625 units sold; Med Sales Price $150,000; Ave Sales Price $183,968
Dec 1-31, 2007: 1221 units sold; Med Sales Price $140,393; Ave Sales Price $177,388
Month-to-Month Comparison: December 2007 vs December 2008 shows almost a 25% decrease in units sold, a decrease of 6.4% in the median sales price and a 3.58% decrease in the average sales price. So, yes there was a decrease in the median home price and the San Antonio real estate market in December; however, it takes 8 data points to show a trend and 2008 is still expected to be one of the top 5 years ever.
Year-to-Year Comparison: 2007 vs 2008 shows a 19.7% decrease in units sold, no significant change in the median sales price and a 1.29% increase in the average sales price. Overall, 2008 was a banner year compared to the 1980's and with over 10,000 homes on the market, great interest rates, no significant change in the median home price ($300 increase - 2009 SABOR Housing Forecast) and homes priced below $200,000 making up 74% of the market now is the Time To Buy!
Now from my position as a professional in the San Antonio real estate market the annual numbers speak volumes over a single month. So after reading the SA Express News article and the 2009 Housing Forecast my conclusion is two fold: 1) Continue listening to the professionals who study the numbers, and 2) when asked "How's the market?" continue running my own analysis and presenting the data to those who ask in a way so they can make a conclusion on their own.
So if you are interested in the numbers that I came up with using the best tool (SABOR MLS) to find a home in the San Antonio real estate market click HERE and select the bottom tab on the left column labeled 2008 Market Analysis.
The article goes on about how the median price of homes in San Antonio fell 7% to $139,900 in December 2008 from $150,700 in December 2007. Bob Gardner presented data not more than 2 weeks ago showing the median home price in San Antonio went up by $300 in 2008. The 2009 SABOR Housing Forecast data was based on analysis of the San Antonio real estate market and here he was being quoted in the paper as saying "It's just disappointing"... "The December numbers didn't show any improvement. I was hopeful that it would." Now my take on the article is that it is very possible that some things may have been taken out of context so I looked at some numbers using the tools provided by the San Antonio Board of Realtors and this is what I came up with.
Basis for analysis: All Areas within the San Antonio BOR
Jan 1-Dec 31, 2007: 22927 units sold; Med Sales Price $150,000; Ave Sales Price $183,161
Jan 1-Dec 31, 2008: 18412 units sold; Med Sales Price $150,000; Ave Sales Price $185,525
Dec 1-31, 2007: 1625 units sold; Med Sales Price $150,000; Ave Sales Price $183,968
Dec 1-31, 2007: 1221 units sold; Med Sales Price $140,393; Ave Sales Price $177,388
Month-to-Month Comparison: December 2007 vs December 2008 shows almost a 25% decrease in units sold, a decrease of 6.4% in the median sales price and a 3.58% decrease in the average sales price. So, yes there was a decrease in the median home price and the San Antonio real estate market in December; however, it takes 8 data points to show a trend and 2008 is still expected to be one of the top 5 years ever.
Year-to-Year Comparison: 2007 vs 2008 shows a 19.7% decrease in units sold, no significant change in the median sales price and a 1.29% increase in the average sales price. Overall, 2008 was a banner year compared to the 1980's and with over 10,000 homes on the market, great interest rates, no significant change in the median home price ($300 increase - 2009 SABOR Housing Forecast) and homes priced below $200,000 making up 74% of the market now is the Time To Buy!
Now from my position as a professional in the San Antonio real estate market the annual numbers speak volumes over a single month. So after reading the SA Express News article and the 2009 Housing Forecast my conclusion is two fold: 1) Continue listening to the professionals who study the numbers, and 2) when asked "How's the market?" continue running my own analysis and presenting the data to those who ask in a way so they can make a conclusion on their own.
So if you are interested in the numbers that I came up with using the best tool (SABOR MLS) to find a home in the San Antonio real estate market click HERE and select the bottom tab on the left column labeled 2008 Market Analysis.
Thursday, January 15, 2009
Nucular/Nuclear vs Realator/REALTOR®
Okay, we've all done it. Mispronounced a word by adding a letter or two and have it just drive someone up the wall. As a professional real estate agent (REALTOR®) I hear it every day. Hey, even my fellow and sister agents say it. I'm sure I've said it more than once.
So who are we? Well we are real estate agents that are bound by a code of ethics outlined by the National Association of Realtors® and the San Antonio Board of Realtors®. We have access to the entire list of homes on the Multi-listing Service (MLS) and when we represent a client we owe fiduciary responsibility to them. What a big word! Basically I have to put their interests above mine and the Broker's. I cannot describe legaleze using legal terms because then I am practicing law and I can't do that either.
So, regardless if you say REALTOR® or realator, I'll respond professionally to you by always providing Core Services. Click HERE to see what they are.
So who are we? Well we are real estate agents that are bound by a code of ethics outlined by the National Association of Realtors® and the San Antonio Board of Realtors®. We have access to the entire list of homes on the Multi-listing Service (MLS) and when we represent a client we owe fiduciary responsibility to them. What a big word! Basically I have to put their interests above mine and the Broker's. I cannot describe legaleze using legal terms because then I am practicing law and I can't do that either.
So, regardless if you say REALTOR® or realator, I'll respond professionally to you by always providing Core Services. Click HERE to see what they are.
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