Archive for the 'For Buyers' Category

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.                                            

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

 

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!

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!

 

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

Home Buyers–Read this!

Published on November 15, 2011 in For Buyers.

Waiting Might Cost MORE!

The housing market has been in a downward trend for four years. There is some speculation that inventories will not reduce any time soon which will be necessary for prices to rise. However, there are other factors that can increase the cost of housing, specifically mortgages. FHA accounts for a large percentage of the current housing loans and is expected to be even more prominent when the Qualified Residential Mortgage Guidelines go into effect next year.

  1. Rising rates are almost certain, due to looming inflation fueled by higher gas and food prices and the enormous amount of deficit spending
  2. FHA loan limits have been reduced – they are lower than conventional limits in most markets and FHA has suggested that they might be reduced further.
  3. FHA might increase the down payment to 5% or higher in an effort to have a more secure loan that will have less likelihood of going to foreclosure.
  4. FHA might decrease the amount of seller contributions in a similar move to require the buyer to have a larger investment in the home and therefore be a more “qualified” borrower.
  5. Congress may decide to increase the up-front MIP to build up the FHA reserves. The annual MIP has been adjusted twice since October 2010 when the Up-Front MIP was actually reduced.
  6. Due to tougher conventional requirements, demand for FHA loans could exceed maximum annual insurable limits. If Congress is having a hard time raising the limit on national debt, they might not even consider raising the limits for FHA.

In an effort to solidify the lending industry, qualifying is becoming harder for the buyer and more expensive at the same time. Many of the rules changes could go into effect next year. In addition, market factors could easily play a role in increasing buyer’s costs. Waiting will very probably require a larger up-front investment for buyers in the future.

Do’s and Don’ts When You’re Shopping for a Home

Published on August 14, 2011 in For Buyers.

OK, you’ve made the decision that  you’re going to buy a home–Congratulations!  Smart choice #1!

You’ve found a REALTOR® that you feel comfortable with to represent you and guide you through the process.  Smart choice #2!

Next step–get pre-approved for a mortgage loan.  Smart choice #3!  You’re on a roll here, so don’t mess it up now!  Follow these tips during the application process to make things go smoothly!

1.  DON’T apply for new credit of any kind!  Credit cards, car loans, furniture, major appliances, anything!

2.  DON’T close credit card accounts or consolidate accounts!

3. DON’T max out your credit cards!

4. DON’T co-sign for any loans (see #1!)

5. DO stay current on your payments–for everything!

6. DON’T quit or change jobs!

7. DON’T make any large purchases (car, furniture, appliances, computer, travel, etc.)

8. DON’T make any large deposits into your checking or savings accounts.

9. DO continue 1-8 until you have closed on the purchase of your home!

10. DO trust me on this!

Why is all this so important?  Good question!!  All these things impact your credit score, your credit-worthiness, and also your debt-to-income ratio. These are what can tip the scales in your favor or against you when qualifying for a mortgage.   They matter–a lot! And not only do lenders look at them when you initially apply, they also check again right before closing.  If there have been any major changes, you could find your loan in jeopardy!  This almost happened to one of my first buyers when she bought all new furniture before closing.  She used the money in her savings account to pay cash, the same money that had helped her qualify for her loan!

If you have chosen a smart REALTOR® and a reputable lender, they will tell you all of this.  PAY ATTENTION!  It really does matter!

Good luck and congratulations!  And if you’re in San Antonio, call me!  I’d love to help you find the perfect home for you!

All the best,

Sue Trautner, REALTOR®
PenFed Realty
210-363-9282

Rent or Buy?

Published on June 26, 2011 in For Buyers and News.

This is a big question!  There are no right or wrong answers–only what’s best for you in your current situation.  But, if you’re wrestling with that question and trying to make a decision, here are a couple of things to consider.  Knowledge is power, and the more you have, the better equipped you are to make a decision.

1. Mortgage rates are still very low, but are not likely to stay that way forever!

2. Inventory of available homes, at least in San Antonio, is good.

3. Average home price in San Antonio is $191,750, as of May, 2011 (latest stats available).  This represents a 5.6% increase from April, 2011.  Expect that to continue.

4. As home prices rise, even slowly, you may be able to afford less and less home.

5. If you’re currently renting or thinking about renting a home, keep this in mind–as a renter, you’re still a home buyer; you’re just buying for someone else!  Why not put your rent money toward purchasing your own home rather than your landlord’s?

6. Our market here in San Antonio is pretty balanced between sellers and buyers, with a slight tilt in favor of buyers.  Sellers are still willing to negotiate to help make a sale, so this is a good time to take advantage of that willingness.  It has not always been that way, and will not continue indefinitely!

7. When you’re ready to become a homeowner, call me!  Sue Trautner, 210-363-9282.

 

 

San Antonio Real Estate Update

Published on May 1, 2011 in For Buyers, For Homeowners and For Sellers.

Well, it seems I’ve broken the first rule of blogging–being consistent with posting!  April’s been a crazy month, but it’s over now so back to business!  Did you watch the royal wedding?  I thought it was beautiful and memorable, but I’ve seen/heard enough already!

How about an update on what’s happening in the San Antonio real estate market?  It’s good news!  These figures come from the San Antonio Board of Realtors and are compiled from our Multiple Listing Service reports.  The latest figures available are from March–April will be out soon. As of the end of the 1st quarter of 2011, we’ve seen sales of 3,575 homes.  This is a slight decrease from the same period of 2010, but the decrease is due mostly to the fact that during this same period last year, buyers were taking advantage of the tax credit, which is no longer available.  Sales from this first quarter exceeded the same period in 2009, so that’s good news!

More good news–our average price for a single-family home is up 4% to $180,443.  Median price of a home is also up 4% to $148,000.  This reflects what has proven to be one of the strengths of the San Antonio market–slow and steady appreciation without all the high highs followed by the low lows experienced in other areas. We continue to buck the national trend which is seeing a decrease in home prices in many areas.

We currently have 8 months of inventory.  6 months is considered a balanced market, so we’re still in a buyer’s market, but not in the extreme.

Interest rates continue to stay low so this is still a wonderful time to consider becoming a homeowner.  Prospective buyers still have to qualify and lenders have tightened their qualifications, but if you have good credit, there are lenders out there who will work with you to help you get into a home.  Contact me–I’m happy to direct you to someone who can help you line up financing.

We’re moving into our busy spring and summer season, so if you’ve been thinking about selling, this is the time to get serious about it.  Please contact me for an analysis of your home and how to get it ready for the market.  Buyers are waiting for you!

We’re so lucky to live in the beautiful city of San Antonio!  If you’re not here, you should be!  If you are, lucky you!  Hope you have a wonderful May!

Sue

 

San Antonio Real Estate Market Update

Published on March 17, 2011 in For Buyers and For Sellers.

The San Antonio Board of Realtors has released MLS statistics for February, 2011, and it’s good news for San Antonio! Stats show that the average price for a single-family home in San Antonio in February, 2011 was $179,035.  This represents a 5% increase over the same month last year!  This shows the strength and affordability of San Antonio’s housing market.  While many markets are still experiencing a decrease in home prices, which are way higher than this to begin with, our market continues its steady growth. And with an average home price below $180,000, San Antonio remains among the most stable and affordable places to buy a home.

Interest rates are still low.  Combine low interest rates, available inventory, affordable prices, a stable market, and job growth driving economic recovery in the area and you have a combination that cannot be beat for buying a home!  Owning a home is still part of the American dream, and 85% of the population views it favorably, according to the National Association of Realtors.  It’s the key for most families to building personal wealth.  Most folks who do not currently own a home aspire to do so at some point.

If you’re one of those who does not currently own a home but would like to, I strongly encourage you to see if this is the right time for you to make that move.  The cost to purchase a home is low right now.  There are options available for homebuyers.  If you’re a teacher, police officer, firefighter, military, a doctor, there are additional programs available to you.  If you have good credit but not a lot of cash, there are down payment assistance programs and other grants available through the city, state, and some federal programs.  If you have steady employment but have some credit issues, there are programs out there that can assist you too.

Bottom line–this is a good time to buy a home. If you have the will (and a job), there’s probably a way!  Talk to a real estate professional and a professional mortgage broker.  Let them help you–help is out there! And don’t wait–the process takes time, and the longer you wait to get started on the road to homeownership, the greater the chance that things will change and costs will increase.  That doesn’t mean you’ll necessarily be out of the game, but it may limit your options and choices.

Want to see what some of your options and choices might be?  Check out my website at www.SueTrautner.com and see what home prices are currently in the areas you’re interested in.  If you’re in the San Antonio area, contact me and I’ll help you get moving!  If not, contact me anyway, and I’ll put you in touch with someone in your area who can help you–I know great realtors all over the country!

If you own a home and need to or want to sell, there are tips for you on my website as well.  Our market is active and buyers are out there looking! Call me and I’ll be happy to discuss how to position your home so you can get it sold and get your move on as well!

We are so lucky to be in San Antonio!  Take advantage of our great real estate market in our great city!  Call me if/when I can help you!

Sue