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.

Choose Your Deduction

Published on January 16, 2012 in Around San Antonio.

One third of all U.S. households, 75% of households with more than $75,000 income and most homeowners itemize their deduction on their federal income tax returns. It makes sense because the interest paid on their mortgage and their property taxes probably exceeds the allowable standard deduction.

However, with interest rates as low as they have been in the last two years and the price of homes having come down considerably, it is possible that the standard deduction may be the better choice.

Each year, the taxpayer can compare the total of the itemized deductions to the standard deduction to select which method will result in the most benefits. The 2011 standard deduction is $11,600 for married couple filing jointly and $5,800 for single filers.

The Housing and Economic Recovery Act of 2008 allows homeowners to take the standard deduction and the lesser of their actual property taxes of $1,000 if filing their return married jointly. For more information, see Schedule L found on www.IRS.gov and consult your tax advisor.

I resolve…..will you too?

Published on January 8, 2012 in Around San Antonio.

OK, it’s 2012 and we’ve all made our resolutions for the year, right?  Sometimes, it’s the same old same old we do every year–get organized, exercise more, eat healthy, yada yada yada!

This year, in addition to those same ones I do every year, I’m going to make some new resolutions for working with my clients, and I’m going to hope they’ll extend them right back to me!  I’m putting them in writing so they mean something!  Here’s what I promise for them and hope to get in return in 2012 (and thanks to Nowlin Roberts, my hairdresser, for his blog post which gave me the idea!  Check him out at www.Beyondthecallof beauty.com ):

I will / I hope my clients will:

—Listen to my clients to learn about what they want and what they need when buying and/or selling a home so that I can guide them and assist them through the process, minimize the stress, and maximize their satisfaction at the end.
—Listen to Sue’s advice and follow it so that she can do her job and things will go smoothly.

—Educate my client about the process and what to expect at each step along the way.  Keep my clients informed and answer all questions that they have as we move down the path.
—Use the information Sue provides, read what she sends me, and do what she needs me to do.

—Be on time for appointments or call if I’m going to be late and reschedule if necessary.
—Ditto!

—Work on my communication skills so that all parties to a transaction are kept fully informed, and respond in a timely manner to my clients, my colleagues, and anyone working to facilitate a transaction.
—Speak up and/or ask questions if I don’t understand what’s happening or am uncomfortable with any part of the transaction.  Respond in a timely manner to all e-mails, voice mails, and other communications from Sue, the title company, the loan officer, or anyone else who is working on my behalf.

—When we’re all done, and throughout the process, give my client multiple reasons to refer me to friends, family, and colleagues.
—Refer my friends, family, and colleagues to Sue as a way of recognizing and rewarding her efforts in helping me buy or sell my home.

—Be the best REALTOR® I can be!
—Be the best client I can be!

That’s my pledge and those are my expectations!   I’d love for you to be my client so you can make sure I follow through!  Call or e-mail me and let’s get you moving!

Sue
Sue.Trautner@penfedrealty.com
www.SueTrautner.com

 

 

San Antonio Housing Forecast, 2012

Published on January 6, 2012 in For Buyers, For Homeowners, For Sellers and News.

I attended the San Antonio Board of Realtors’ annual Housing Forecast on Jan. 5 to hear what may be in store for us in the coming year.  We heard from County Judge Nelson Wolff and Mayor Julian Castro.  Both had lots of positive things to say about San Antonio and what’s happening in and around the city.  Mayor Castro called this the Decade of Downtown.  Lots of development happening in the downtown and surrounding areas, in residential and commercial.  San Antonio has a growing young urban population who want to live near the urban center of town and want to be able to work and play nearby.

We also heard from the current and immediate past Presidents of the Greater San Antonio Builders’ Association.  Both shared that they expect housing starts to tick upward in 2012, although not to the levels we saw in years past.  Builders are seeing a lot of activity in the higher-end price ranges and in areas farther out, since many of the neighborhoods closer in to 1604 are built out and fewer lots are available.   Their development costs to bring new lots online have increased also and some of those increases are being passed along in the price of houses.  They said that they were finding it a little easier to obtain financing for spec houses than they’ve seen in the last few years.

San Antonio’s number of sales and median price has seen a slight increase in 2011 and we expect that to continue into 2012.

There is one part of the residential market that has seen dramatic increases and those increases are expected to continue through 2012 and likely beyond–the rental market.  There are several reasons for that increase.  Mortgage lending requirements continue to be strict and are making it difficult for first-time buyers to qualify for the loan they need to purchase a home.  Uncertainty in the job market may also be keeping some folks from making the commitment to buy a home.  For these reasons and other personal considerations, many are choosing to rent for now.  So what does that mean?  It’s a great time to invest in rental housing!  If you are looking for a place to invest that provides tax advantages and where your money can grow and the value of your investment will appreciate, and the cost of acquisition (mortgage rates) is at historic lows, this is the time to buy!

Our other speaker, economist Dr. Jim Gaines from the Real Estate Center at Texas A&M, shared some stats with us and confirmed that Texas is the #1 state for job growth.  He also showed us some numbers and graphics that demonstrated the growth of urban areas in the state–the triangle that includes Dallas/Ft.Worth, Houston, Austin, and San Antonio.  That’s where the population is going and that’s where the growth is.  Texas has changed over the last 10-20 years from a rural state into a young urban state.  We have a large percentage of immigrant population, primarily Hispanic, who bring their own vibrancy to our cities.

One thing we hear about in the media is the looming “shadow inventory” of foreclosed homes that are poised to hit the market.  We are expecting some of that here and when those homes do come on the market, they will put downward pressure on home prices and home values in the neighborhoods they’re in.   Thankfully, we don’t have the volume to deal with that other areas do, and we hope those homes will sell quickly when they do enter the market, but sellers will have to deal with the effects for awhile.

Dr. Gaines did also point out that for all the job growth and other positive indicators in Texas and San Antonio, we are not immune to the national and international economic trends.  He also stated that many economic factors are going nowhere until after the Presidential elections.  Everyone is waiting to see what’s going to happen before they make major moves to expand, hire, move, etc.  So, expect 2012 to be mostly more of the same from 2011, with slight increases.  Texas and SanAntonio have been fortunate to not have experienced the high highs followed by the low lows that other areas of the country have seen.  We are slow and steady and we are doing fine!

Here’s to a great 2012!

 

REALTOR® 101

Published on December 17, 2011 in Around San Antonio.

As REALTORS®, there are certain behaviors that are expected of us in dealing with the public, our clients, and our colleagues.  Most of them are just common sense and common courtesy, but it amazes me how UNcommon these behaviors can be sometimes!  I’d like to highlight a few things that some of my fellow REALTORS® need to remember, and, if you’re a buyer or seller, and your REALTOR® isn’t doing these things with/for you, you should remind him or her also!  All these “reminders” (and many more!) are in the Pathways to Professionalism brochure, published for members of the San Antonio Board of Realtors.

Respect for the Public
  Present a professional appearance at all times, dress appropriately, and drive a clean car!  Dressing “appropriately” depends a lot on the activity one is dressing for!  Showing houses all day in San Antonio summer weather means we can dress comfortably–it does not mean we show up in cut-offs, t-shirts, and flip-flops!  Looking at rural properties?  Jeans and boots are more appropriate than a 3-piece suit.  Meeting a client for the first time (or any time really)?  Don’t show up looking like you just rolled out of bed or were out partying all night!  Ladies, short short skirts and low cut tops are not appropriate business attire–even if you have the “assets” to make them look good!  And please, keep your car looking presentable!  If you parked under a tree and the birds had a field day, run through the car wash!  If you use your car as a mobile office (and many of us do), keep your papers contained and throw away your food trash!

Respond promptly to calls, e-mails, and other inquiries.  And remember to tell what you know, not what you think!  If you don’t know, refer the client to sources for information or offer to find out what they need to know and get back to them.

Respect for Property:

Never enter a property without permission, and be responsible for all who are entering with you.  Schedule your showings as far in advance as possible, and if the property is occupied, please call if you’re running late for an appointment.

If the property is occupied, please remember that it is still someone else’s home.  Be considerate.  Do not allow your clients to smoke, eat, drink, let children run around, bring pets, handle personal items, etc.  Practice the golden rule!

If something seems amiss, notify the listing agent right away.  Leave the property as you found it–turn off lights, close doors, lock up when you leave, set alarms, etc.  Leave a business card to let owners/listing agent know you were there.

Respect for Peers:

Respond promptly to inquiries, voice mail, e-mail, texts.  And when you leave voice mails, clearly identify yourself, your questions, and the best way to reach you.

Treat colleagues with courtesy and respect, ask questions, supply information.

 
Just keeping these simple courtesies in mind and practicing them consistently helps smooth the path between us as REALTORS® and our clients and colleagues.  Buying or selling a home are stressful endeavors.  Part of our job as  real estate professionals is to help facilitate that process and make it as easy as possible for all parties.  We all have enough stress in our lives that we have to deal with every day that we can’t control.  Here’s one area we can completely control and help everyone, including ourselves!

Here’s to a positive real estate experience!

Sue


 

San Antonio housing market–strong and steady!

Published on November 20, 2011 in For Buyers, For Sellers and News.

San Antonio Board of Realtors released stats for October, 2011 recently.  Here’s part of the report:

“The average sales price for single-family residential homes
registered at $182,304 in October 2011, while the month’s
median price was $149,500. Both figures are a one percent
decrease from October 2010.
“This is the only decline we’ve seen in prices all year,” says Angela
Shields, President and Chief Executive Officer of SABOR. “Over the
course of the year, our prices have shown an increase and those
figures are more depictive of the big picture.”
Year-to-date, the average price ($186,815) and median price
($152,400) have seen a one and two percent increase
respectively.
Forbes Magazine recently named San Antonio the best city in the
nation for jobs, citing strong employee bases in a diverse roster of
industries.”

In summary, the housing market in San Antonio remains strong and steady.  We have jobs and job growth here, we have a healthy 7-month inventory of unsold homes, builders are being conservative and replacing sold homes but not flooding the market with spec homes.  Interest rates are low, and we just got news that Congress has restored the FHA loan limits to their higher amounts, which is great news for San Antonio home buyers since many of our sales are done with FHA financing!

As the figures above indicate, average and median prices are down 1% in October from a year ago, but that is reflective of an overall increase in the number of home sales, and in more modest price ranges than just the upper end of the scale.

What does this mean for San Antonio home buyers and sellers?  It means that now is the time to get serious!   Indications are that foreclosed properties may be hitting the market in 2012 in greater numbers.  San Antonio has not had the number of foreclosures that other markets have suffered, but we do have some, and when large numbers come on the market, they tend to drive down prices for other homes.  So, if you’re selling your home, you should not wait to put it out there!  People do buy homes during the holidays, and those that are looking now are serious!   Be sure yours is available to potential buyers!

For home buyers, although interest rates remain very low, qualification for loans continues to be a challenge as loan requirements have tightened.  Other loan fees have also been added and/or raised, so the cost of borrowing has increased and indications are that that trend will continue.  So, if you’re thinking of buying and plan to finance the purchase, start the process now!  Waiting may end up costing you more!

Hope you have a wonderful Thanksgiving!  I’m thankful for the opportunity to share my tips and ideas with you!

All the best,
Sue Trautner