Boomerangs and Sandwiches

Published on May 10, 2012 in Around San Antonio.

I just read an article that got me thinking–about families and changes.  You’re probably familiar with the description of “boomerang kids”–the adult kids who go off to school or to pursue a career, and then, for whatever reason, boomerang back to live with mom and dad.  Well, according to this article, there’s a new set of boomerangs starting to  emerge–boomerang moms (or dads)!  These new boomerangers are helping make their kids into the sandwich generation–sandwiched in between caring for their own children and their aging parents.  It’s something that all of you in your 30′s, 40′s, and 50′s should think about and possibly plan for.

 

 

 

 

The Boomer generation (I’m in there) has just started hitting 65–the first wave hit that milestone in 2011.  Boomers are one of the largest demographic groups, and we have set trends and been agents of change all our lives.  Most boomers are living longer, in better health, and are more active than our own parents and grandparents were at our age.  But as we age, time will catch up with us, eventually!  Boomer parents may reach a point where they need help around the house, have ongoing health issues, or want to be near to family.  There are also financial issues to consider, as cost of living and medical care increases.

One solution–let your boomer parents boomerang back to live with you!  A multi-generational household can be a benefit for all the generations.  Certainly there will be things to discuss, guidelines and boundaries to establish, finances to work out.  But it’s certainly an option that should be considered as parents age.  I hope it’s something that can at least be discussed among all the parties involved.  I think it’s worth the effort.  If everyone is willing to be flexible and seek solutions, it will be life-changing for all involved.

I think this trend will start to be reflected in housing.  I think we’ll be seeing more homes being built or remodeled with additional “master” bedrooms that have a separate bath.  More universal design and 1-story living areas will be popular.  You’ll see more adaptations for limited mobility, safety, comfort, and ease of use.   Many cities, San Antonio among them, are seeing a renewed interest in older neighborhoods that are closer to the city–a move back from the suburbs.  I think this trend will continue so that transportation options are available for family members who may not need to/want to/ be able to drive but who need to/want to be close to medical facilities, entertainment, services.  It will be interesting to see how these trends develop over the next years.

What are your thoughts on this topic?   Are you “sandwiched”?  Will you be a “boomerang”?  Do you need to adjust your living space?

 

 

Mortgages and Veterans

Published on April 27, 2012 in For Buyers, For Homeowners and For Sellers.

I recently attended an all-day seminar at the San Antonio Board of Realtors called Welcome Heroes Home.  I learned a lot about the challenges faced by our military heroes, especially those who have sustained life-altering injuries and how those injuries affect not only themselves but their families as well.  These brave young men and women have unique challenges to face and now, unique needs when it comes to housing.  It was an informative, enlightening, and inspiring day of learning from these heroes and the people who work with, love, and support them.  Would that we all could face what they do with as much courage and can-do attitude!

Because of their injuries and the alterations required, these veterans have some special needs in housing.  Some need ramps, wide halls, lower counters, and other universal design items for easier wheelchair access.  Some who have sustained severe burns need extra air conditioning units.  Some veterans may be able to modify their existing homes; others may need to build new.  Some are relocating to new areas to be close to medical facilities.  There are many new challenges for these heroes and their families, and there is help available for them.

If you are a veteran, or know one, please click on the link below.  It’s a link to another blog site that gives some information about some of the mortgage options available to veterans, wounded or not.  There are resources out there for you.  One thing I learned in that seminar is that many veterans don’t know about all these resources.  Again, if you’re a veteran or if you know someone who is, please know there are people who want to help.   Contact me if you’re in or around San Antonio and I’ll point you in the right direction.

Thank you for your service!

Mortgages and Veterans.                                            

Home Safe Home

Published on April 1, 2012 in For Homeowners.

Surveys have shown that one of the primary reasons most folks have for wanting to own a home is for safety and security.  It feels wonderful to come home to your own home and know that you have a place for all your “stuff” and a place for your family to feel secure and that everything is there as you left it.  But what if you come home and find that someone has been there?  Not a good feeling at all!!  That happened to me and my family a number of years ago and I can still remember the uncomfortable feeling of  having strangers invade my private space.   So what steps can you take to prevent this from happening?   My personal opinion is that if someone is determined to break in, they will, but there are definitely some things we can do to make it more difficult and give them a reason to look elsewhere for a target!  If someone is going to steal from me, then at least they’re going to have to work for it!  Here are some ideas to get you started:

The yard:   Privacy fencing so that what you have outside is not on display to everyone!  Gates should have a lock.   Check with your homeowners association or city codes regarding fences around the front of your property.

Landscaping and lighting:  Install exterior lighting, possibly with motion detectors, to deter burglars.  Also consider interior lights–put a few on timers, especially when you’re going to be away, to give the appearance that someone is inside.  Keep bushes and landscaping trimmed below windows so you’re not providing a convenient hiding spot or blocking views from the street.

Garages:  Garages often hold a treasure trove for burglars, not the least of which is your car!  But other items like tools, bicycles, sports equipment may also be great targets for a burglar.  Consider installing a garage door opener to help deter  a thief.  Also secure the entrance from the garage into your home.

Entrances:  And speaking of entrances into your home, be sure all have dead bolts and secure locks!   A peephole in the front door is also a good idea.  If you use a double-locking deadbolt, which is definitely more secure that a single bolt type, be sure to keep a key nearby each door for safety–in case of a fire or other emergency, you don’t want to lock yourself in!  But don’t keep the key in the lock!   Keep your windows locked when closed, and especially when you’re away!  And keep your windows covered to prevent people from looking in to see what you have.

Alarm Systems:  This is perhaps the best deterrent to burglary, especially if your system is monitored.   Consider having glass breakage added as a trigger to the alarm, particularly if you have exterior french doors that can easily be broken.   Having your system monitored comes with a cost, but it may be worth it if something happens that prevents you from summoning help.  Knowing it’s on the way would make a burglar think twice.  And if you have a family member with health concerns, having a monitored system that can send help definitely gives peace of mind.   A bonus–you may be able to get a discount on your homeowners insurance with a monitored alarm system!

These are a few ideas, you probably can find more ways to secure your home.   The peace of mind is worth it!

 

Spring has sprung! Sellers–get ready for those buyers!

Published on March 23, 2012 in For Sellers.

It’s Springtime!  My favorite time of the year is here!  All the rain we’ve had in San Antonio has brought out a bumper crop of beautiful Texas wildflowers this year!  Love seeing the bluebonnets along the road and in fields and even in people’s yards!  Hope you’re enjoying them while they last!

Speaking of flowers and spring green, it’s time to take a good look at your curb appeal if your home is on the market or is going to be on the market.  First impressions are lasting and you never get a second chance to make one!   Sellers, it’s important to capture those buyers when they first drive up by showing off your home at its best!  Here are some things you can do (or hire someone to do) to boost your home’s curb appeal and get those buyers in the door!

First thing:  take a good look at your home!  Go across the street and really look at your house with “buyer’s eyes”.  We all have things that we get used to in and around our own home that we don’t even think about any more, but buyers notice!  Make a list of the things you see that could be improved.  And, don’t forget to walk around and look at the back and both sides as well!  Pay particular attention to these items:

Paint–paint makes a huge impact and is probably the first thing a buyer notices.  What does yours look like?  Does it need some touch-ups?  Maybe it needs a complete re-do.  My neighbors just sold their house and have moved.  New owners are already pulling out ’80′s carpet and inside counters, etc., but I’m really hoping they’ll also paint that forest green trim on the red brick house!  And maybe even replace the green roof!   Does your home look like a blast from the ’60′s, ’70′s, ’80′s, or ’90′s past?  Bring it up to today’s look.   Even if the house doesn’t need painting, a fresh coat on the front door, the trim, garage door, can really make a good impression.  Peeling paint raises concerns that the rest of the house may need work too.  Why not bring people in the front door with a good feeling?

Roof–same thing goes for your roof.  Of course, if it’s leaking in spots or has missing shingles, it must be repaired or replaced.  But even if it’s still functioning, if the roof looks old and worn, consider replacing it–that will really make a buyer feel good and confident that he won’t have to deal with that problem for a long time.  If finances won’t allow you to replace the roof, consider offering a credit to the buyer so he can take care of that after the purchase is completed.

Driveway and walkways–should be in good repair and nice and clean.  Above all, for safety’s sake, you want to make sure there’s a clear path to the front door.  If you don’t have one, then make one.  And be sure your driveway and sidewalks are smooth and do not present a tripping hazard.  Power washing will clean most stains off the driveway and leave sidewalks, concrete, decks, and pebble finishes clean and fresh.  Sidewalks and driveways can have cracks due to shifting soils, tree roots, age, or other reasons.  Fill in cracks and be sure steps are clearly visible.  Keep toys and other things off the lawn and keep walkways clear.

Landscaping–last summer was brutal here in San Antonio–hot and very dry.  Many people, myself included, lost some plants due to the drought and extreme heat.  If you did, remove them and consider replacing them.  If you didn’t lose the whole plant, trim away the dead parts and tidy up what’s left.  Plant some flowers for color and just to look pretty.  Ask someone at the garden center to help you select drought-tolerant plants.  Keep grass mowed and edged.  Oak trees are pollinating now and will soon be dropping their pollen all over.  If you have trees in your yard, keep your walks swept and leaves raked.

Clean–this is a great time of year to spring clean the outside of your home as well as the inside.  If you’re not painting, wash the trim and the outside of the home to make it look fresh and appealing.  Wash windows so that light comes into the home and views can be appreciated.  Hard water builds up on windows and makes everything look dull–clean those windows and let the sunshine in!  Remember to wash the screens as well.  Wash down decks, patios, patio furniture, everything that people will see when they look outside.  Even if you’re planning to take the patio furniture with you when you move, clean it up so things look fresh.  And keep hoses curled up and out of the way.  Remember to check your sprinklers and repair anything that’s not working properly.  If you have automatic sprinklers, the inspector will test them so get them repaired now.  Also, remember to clean and polish light fixtures, fans, anything else that people will see when they walk outside.

Exterior lighting–many homes are now being photographed in the evening with the outside lights.  I’ve seen many pictures in MLS of a home lit up at night.  Consider installing some solar lighting along walkways or uplighting trees.  If you have tired front porch lighting, replace it with something more updated.  Timers on outside lights can keep them on and turn them off at a set time.

Hope this has given you some ideas of ways to improve your curb appeal and get buyers excited about coming to see your home!  Now that you’ve got the outside looking great, be sure to carry the feeling right in the front door and your agent will be putting up a SOLD sign before you know it!   I’d love to be that agent!  Call or contact me if I can help!

Good luck, and Happy Spring!

Sue

Buyers, How to Turn Off a Seller!

Published on March 10, 2012 in For Buyers and For Sellers.

My last post was all about how homesellers can turn off/turn away potential buyers.  Well, that street runs two ways!  Buyers, you can also do some things that turn off a seller and make that seller less willing to work with you.  Here are 3 things to keep in mind when you’re looking for a house and when you find “the one”:

1.  Extreme lowball offers.   Many (not all!) markets are still what we consider “buyers markets” these days–where available inventory is greater than the number of buyers actively looking to purchase a home.  This gives buyers a bit of an upper hand in negotiations, but let’s be reasonable and realistic here.  Buyers, you should consult your agent to find out what similar homes in the neighborhood have sold for recently.  While most sellers will likely be reasonable in considering a price lower than what they’re asking, they are probably not going to give away their home (and largest asset) for way less than current market value in the area.  And what’s worse–by making a lowball offer just to “see what they say”, you run a very big risk of turning them off so much that not only will they refuse your offer, they may refuse to counter and/or decide not to work with you at all!  So, you waste their time, your time, both realtors’ time, and in the end, everyone loses!  So make your offer based on the realities of the market in your area and in the neighborhood you’re interested in.  Forget the fantasy of  trying to score the “deal of a lifetime”–if you want the house, then be reasonable!

2. Mortgage “issues”.    Realtors are seeing this happen too often.  You find the house, you make an offer, negotiate the terms, get your offer accepted.  Yea, you think the hard part’s over!  It’s just beginning!  Now it’s time for you, the buyer, to put up or shut up–you have to apply and be approved for the mortgage loan you need to complete the transaction.  Things have changed a lot in the mortgage industry in the last few years!  Many buyers with jobs, good credit, and cash on hand are finding it difficult to obtain financing.  And if you have challenges with any of those things, it’s even more difficult, if not impossible!  So, buyers, what can you do?  Start the mortgage approval process before you ever go out looking for a house.  Get pre-approved for a loan and have that pre-approval ready to submit with your offer to purchase the home you want.  Know how much home you qualify for and stay in that price range.  Keep your financial affairs in order while all this is going on–don’t buy anything on credit, don’t open new credit cards, don’t fall behind in bill payments, and don’t change jobs until after you close on your new home!  Seller, be sure you ask for proof that your potential buyer can complete the transaction–get a copy of that pre-approval!

3. Trash-talking the seller’s home.   If you, the buyer, are trashing the seller’s home as a reason to offer less, you’re running the very big risk of making the seller mad and giving him reasons not to sell to you!  Plus, if you think it’s that bad, then why do you want to buy it in the first place??   If there are legitimate problems with the house that make you consider offering a much lower price than what the seller is asking,  then ask your agent to communicate your concerns in a professional and respectful way.  Chances are, the seller is aware of those issues already, and being respectful will keep communications open.  Remember, a seller has emotional ties to his home–many take your negative comments as a personal commentary on them, and may not be willing to work with someone they perceive as attacking them personally.

At the end of the day, everyone has the same goal–to sell or buy the house in question.  By putting yourself in the other party’s shoes, you can facilitate the transaction, communicate your position effectively and respectfully, and everyone ends up getting most of what they want!   Sellers sell, buyers buy, everyone wins!

Success to you!

 

Sue

 

For Home Sellers–How to Turn Off Your Buyers!

Published on February 11, 2012 in Around San Antonio.

Are you selling your home?   It can be a daunting task in today’s market!  So many things to do, so many things to take into consideration!  There’s a lot of competition out there.  In many markets (although not as much in San Antonio), buyers are in the driver’s seat!  You have to work hard to attract them to your house when everyone else is doing the same thing!  So, you certainly don’t want to do all that work and then turn them off!  Here are 3 things many sellers do that turn buyers away.  If you’re guilty, then change what you’re doing!

1. Hanging around when buyers are trying to view your home.  These days, smart buyers do their homework in advance before they go out to actually look at a home.  If you’ve made their list of homes to view, congratulations!  Now get out of the way so they can see it!  When you, the seller, are present in the home–even if you’re off in your study or outside on the back porch–it intrudes on the buyer and his agent.  You’re in their “space” so to speak.  They won’t be comfortable opening cabinets or closets, discussing the home, taking their time to look.  And when you’re there, it’s hard for them to envision themselves there–your presence says it’s your home; the idea is for them to think of it as their home, and that won’t happen if they know you’re lurking around, so get out!  Take a walk, visit a neighbor, or just get in the car and go park a couple of blocks away and read a book or make some phone calls.  Just physically leave!

2. Showing a messy house.   This is hard–I know, I’ve done it!  After all, you, the seller, are still living in your house!  And if you have a family and/or pets living with you, it’s even more challenging!  But, again, you have lots of competition for those buyers.  Keeping things clean and straight is not fun, but it’s absolutely necessary!  You have to get up every morning believing that today may be the day that the right person comes to see your house!  You have to be ready for him/her.  As a Realtor, I’ve seen some things that first make me shudder, then make me wonder if these people are serious about selling their house!  In a word, ewwww!  Don’t be that seller!

3. Overpricing your house.   This is the big one!  These days, you have to be competitively priced just to get them to consider looking at your home.  And if they do, you better deliver the value they expect for what you’re asking!   Buyers have a lot of challenges in today’s market to qualify for and obtain financing.  If your home is overpriced for its size, location, and condition, they’ll just check it off their list and move on the the next one.   You’re out of the running before they even see it.

Don’t make these mistakes!  If you’re ready to sell your home, there are lots of good reasons to do so, but I strongly recommend that you talk to a real estate professional and let them guide you around these common errors!  If you’re in San Antonio, call me (210-363-9282)–together, we can make it happen!

Wishing you success!

Sue Trautner

Risk Determines Rate

Published on February 7, 2012 in Around San Antonio.

Regardless of what a lender quotes on mortgage rates, the actual rate paid by a borrower is based on a number of variables. Lenders determine whether to loan money and at what rate based on the risk involved with the transaction.

Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved.

  • Loan amounts – conventional loans for more than the conforming limits set by Fannie Mae are considered jumbo loans and generally have a higher interest rate.
  • FICO score – the lowest interest rate is reserved for the highest credit scores; the lower the score, the higher the rate borrower will pay.
  • Occupancy – borrowers occupying a home as their principal residence are considered a better loan risk than second homes and investment properties.
  • Loan purpose – purchase transactions generally have the lowest interest rate while refinancing a home is generally higher.
  • Debt-to-Income ratio – a borrower’s monthly liabilities divided by their gross monthly income develops a ratio that helps lenders to assess the borrower’s ability to repay the mortgage.
  • Loan-to-Value ratio – the lower the percentage of the loan to the appraised value of the property will generally lower the interest rate.
Any combination of these factors could limit a borrower’s ability to secure a mortgage at the rate initially quoted. Being pre-approved by a trusted mortgage professional is the best way to know what rate you can expect to pay. Please call me–I will be happy to refer you to several of my favorite mortgage professionals so that you  can talk to someone who can help you and give you sound advice.

San Antonio spotlight on Top Chef!

Published on February 2, 2012 in Around San Antonio.

I’m a fan of the Top Chef series on Bravo, and especially the current season, which was filmed in Texas and mostly right here in San Antonio!  Last night’s episode (Feb. 1) was fun to watch as the final 5 contestants rode bikes around downtown looking for ingredients, then had to find a restaurant kitchen to use for preparation before serving lunch to Pee Wee Herman and the other judges at the Alamo!  One of the big topics in downtown housing options is the lack of a downtown grocery store, so I was curious as to where these chefs were going to find the fresh food items they needed to prepare a lunch.  I’m still not sure exactly where they came up with their ingredients (besides using some things they found in the restaurants they “borrowed”), but it was fun to watch!

 

I especially loved when one of the contestants was arriving on scene to do his final prep before serving.  He stopped on the street, pointed ahead, and asked someone, “Is that the Alamo?”  Yeah, it was!  I thought everyone knew what the Alamo looked like!  Guess not!

It was fun to see the chefs use the kitchens in several popular Southtown restaurants.  I’ve had the pleasure of visiting 2 of the 5 that were featured, and now I’m even more determined to get to the others!  The two I’ve enjoyed were Rosario’s and La Frite–have had memorable meals at both and I highly recommend them!  One that is on my list to visit soon is Madhatters Tea–have heard lots of good things about it!  San Antonio offers so many choices in dining options, from fast food, to chain restaurants, to neighborhood “joints” to local fine dining.  And just about everything in between.

If you’re looking for someplace to take your Valentine for dinner, why not try looking in a different part of town from where you live/work?  There are some great options in all parts of the city.  And the same goes for probably any place–get out of your normal routine–try someplace new and different!  Explore a new part of town!  You may find a hidden treasure and open up all kinds of new possibilities!

Good luck, and enjoy the exploration!

Sue

 

2012 appears to be more encouraging on the home front!

Published on January 26, 2012 in For Buyers and For Sellers.

If you recall, last year FHA, in all its wisdom, announced intentions to drastically reduce the maximum seller concessions from 6% to 3%. Not good news for buyers, sellers or the industry in general. So many transactions rely on FHA and seller contributions, and couldn’t happen without them.
Well the troops mobilized with voices from lenders, Realtors, builders and consumers, and HUD wants you to know they’re listening. The details haven’t been finalized, but word is out that there will be higher seller concessions allowed than originally proposed. They’re talking between 4 and 5% rather than 3%. Stay tuned for the formal announcement intended to offer a good compromise for continued recovery of our fragile economy, and protection for the FHA insurance fund.
More good news yesterday from the Federal Reserve. They plan on expanding the time frame to keep the prime rate very low, through at least the end of 2014!  (Thanks to my colleague, Joan Rogliano in Colorado for sharing this with me!)
What does this mean for you?  If you’re thinking about buying, rates are low, homes are available, and rents are probably going to increase, so it’s time to get serious!  If you’re going to put your home on the market, be prepared for the possibility that a buyer may request your help with closing costs.  Remember–your goal is to sell your home, and if this is what it takes, then get in the game!
In San Antonio, we are pretty evenly balanced between sellers and buyers with approximately 6.5 months of inventory; our market is stable, so don’t hesitate to jump in!

Deductible Is the Point

Published on January 23, 2012 in Around San Antonio.

Points refer to prepaid interest on a home mortgage and can be fully deductible by the buyer in the year paid if the right conditions exist. The points must be used to buy, build or improve a taxpayer’s principal residence but not all fees charged by the lender are necessarily deductible.

According to IRS Publication 936, “The term ‘points’ is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. A borrower is treated as paying any points that a home seller pays for the borrower’s mortgage.”

If you purchased a home in 2011, have your tax professional evaluate your closing statement to see if there are loan fees that may be used as a deduction on your tax return regardless of whether you or the seller paid them.

Refinancing a principal residence or purchasing an investment or income property require that points must be deducted ratably over the term of the mortgage rather than deducting them fully in the year paid. Borrowers in these situations should consider the benefits of lower interest rates from paying point to higher interest rates without points.

This article is meant to provide information that can be discussed with your tax professional about your specific situation and is not to be considered tax advice.