Your SA Home Now

How Much Do You Spend To Heat Water?

2010-09-14T09:06:00.000-07:00

Heating water accounts for up to 30 percent of the average home's energy budget.
Some makers of gas-fired tankless water heaters claim their products can cut your energy costs up to half over regular storage heaters. So is it time to switch?

Probably not. Gas tankless water heaters, which use high-powered burners to quickly heat water as it runs through a heat exchanger, were 22 percent more energy efficient on average than the gas-fired storage-tank models in our tests. That translates into a savings of around $70 to $80 per year, based on 2008 national energy costs. But because they cost much more than storage water heaters, it can take up to 22 years to break even—longer than the 20-year life of many models. Moreover, our online poll of 1,200 readers revealed wide variations in installation costs, energy savings, and satisfaction.

With the help of an outside lab, we pitted Takagi and Noritz gas-fired tankless water heaters against three storage water heaters. We didn't test electric tankless heaters because many can't deliver hot water fast enough to replace a conventional water heater if groundwater is cold. Even in areas with warm groundwater, most homeowners would need to upgrade their electrical service to power a whole-house tankless model.

Our tests simulated daily use of 76 to 78 gallons of hot water. That's the equivalent of taking three showers, washing one laundry load, running the dishwasher once (six cycles), and turning on the faucet nine times, for a total of 19 draws. While that's considered heavy use compared with the standard Department of Energy test, we think it more accurately represents an average family's habits. We also ran more than 45,000 gallons of very hard water through a tanked model and a Rinnai tankless model to simulate about 11 years of regular use.

Here's what else we found:

Water runs hot and cold
Manufacturers of tankless water heaters are fond of touting their products' ability to provide an endless amount of hot water. But inconsistent water temperatures were a common complaint among our poll respondents. When you turn on the faucet, tankless models feed in some cold water to gauge how big a temperature rise is needed. If there's cool water lingering in your pipes, you'll receive a momentary "cold-water sandwich" between the old and new hot water. And a tankless water heater's burner might not ignite when you try to get just a trickle of hot water for, say, shaving.

Nor do tankless water heaters deliver hot water instantaneously. It takes time to heat the water to the target temperature, and just like storage water heaters, any cold water in the pipes needs to be pushed out. And tankless models' electric controls mean you'll also lose hot water during a power outage.

Up-front costs are high
The tankless water heaters we tested cost $800 to $1,150, compared with $300 to $480 for the regular storage-tank types. Tankless models need electrical outlets for their fan and electronics, upgraded gas pipes, and a new ventilation system. That can bring average installation costs to $1,200, compared with $300 for storage-tank models.

Tankless units might need more care
During our long-term testing, an indicator on the tankless model warned of scale buildup. We paid $334 for special valves and a plumber to flush out the water heater with vinegar. Many industry pros recommend that tankless models be serviced once a year by a qualified technician. Calcium buildup can decrease efficiency, restrict water flow, and damage tankless models. Experts suggest installing a water softener if your water hardness is above 11 grains per gallon. Ignoring this advice can shorten your warranty.

Efficient storage models are pricey
We also tested the $1,400 Vertex, a high-efficiency storage water heater by A.O. Smith. The manufacturer claims its installation costs are similar to a regular storage model. But its high cost offsets much of the roughly $70 per year the Vertex will save you. Instead, we recommend buying a conventional storage water heater with a 9- or 12-year warranty. In previous tests, we found that those models generally had thicker insulation, bigger burners or larger heating elements, and better corrosion-fighting metal rods called anodes.

Posted: Consumer Reports Magazine issue

This article was sent in by Don Armstrong who is a Licensed Home Inspector with Lone Star State Inspection Service.

OK We Are Trying!

2010-08-11T13:07:00.000-07:00

Yesterday our website found its way onto Facebook. Yes, it is exciting! However, I am still working on finding a way to get all of the new postings on the website to show up on Facebook when they are published. I welcome any feedback or suggestions on how to accomplish this goal.

There are several exciting things happening on YourSAHomeNow.com. We have added several new videos which show everyone why San Antonio, Texas is the best places on earth to live (of course that is just my opinion). There are also a couple of new links on the site which make searching for a home in or around San Antonio extremely easy.

The most exciting news however, is that there are 2 new contributors who have joined the YourSAHomeNow team. I want to welcome Maurice Mendoza of M&D Financial Services. Maurice has already contributed a few articles. Maurice is an expert at helping people work on their credit scores, and become qualified to buy a home they can call their own. In speaking with Maurice, I discovered that we share a common business plan. Maurice wants the opportunity to provide outstanding service to each individual customer. His aim is to assist his clients in reaching their goals in a timely fashion, and for his clients to want to send their friends and family his way if they need help. Maurice welcome to the team!

But! Wait there is more. We have also added Craig Loeffler of Affiliated Bank to our site as well. Craig is an outstanding Loan Officer with a great Mortgage Banker. I have worked with Craig numerous times over the last couple of years. I have never found a loan officer more responsive to the needs of his clients. Craig offers a variety of different loans such as FHA, VA, USDA, and Conventional. He understands the business, and helps his clients get the financing they need to purchase that perfect home. Craig welcome to the team!

Anyway, as you all can see there is a lot of exciting things happening on YourSAHomeNow.com. Come check us out often, and send your friends!

Tips for New Era in Credit Cards

2010-08-11T07:26:00.000-07:00

It’s been about a year since the CARD Act of 2009 was signed by President Obama, giving us the protections of Credit Card Accountability, Responsibility, and Disclosure. But how we manage your credit cards differently may still be a mystery to most people. Laura Rowley in her Money & Happiness column for Yahoo Finance offered 5 Ways to Minimize Your Credit Card pain – here are some tips we gleaned:

You can opt out of a rate increase, sure, but the card company has counter offers to persuade you to opt in. They include doubling your previous minimum monthly payment or requiring you to pay off the balance in five years. If you don’t like those options, you could transfer the balance to another card, but be sure to do the math on the balance transfer fees to see if it’s really saving you any money.

There are four reasons you can be charged a higher interest rate on an existing balance.
with no advance notice, as outlined by Rowley:
“a) you have a variable interest rate tied to an index and the index rises;
b) you opened the card with a teaser rate and it expires (which would be stated in your original agreement);
c) you’re in a workout agreement and you haven’t made your payments as agreed; and
d) you’re more than 60 days late with a payment. (Late payers can earn back their previous rate if they make minimum payments on time for six months.)”

Paying more than the minimum is always a good idea — especially if you have a card with balances at different rates. Here’s the example Rowley gave: “Let’s say you opened a card that offered zero percent interest for six months, and continued charging on the card after the teaser expired and the rate rose to 14 percent. If you only make the minimum payment, the card company can apply that amount to the zero percent portion of your balance — while the portion at 14 percent continues to snowball. The law does require that any amount you pay over the minimum be applied to the balance with the highest annual percentage rate.”

Consumers Suffer when Banks Zero in on FICO Scores

2010-08-09T12:50:00.000-07:00

Mortgage lenders assure consumers that their FICO score is just one of several financial markers that will be used to determine whether or not they’ll be approved for a mortgage loan. But the cold reality is that consumers with FICO scores that don’t cut the mustard won’t get a loan.

Few credit analysts would disagree that mortgage underwriting standards were almost criminally lax before the housing bubble burst. But in the post-recession economy, many people working in the credit industry, including a growing number of independent mortgage brokers, feel that banks and other major mortgage providers have overcompensated, becoming too restrictive and inflexible in evaluating mortgage loan applicants. At the crux of their complaint are charges that, despite assurances to the contrary, major players in the mortgage industry are basing loan decisions strictly on FICO credit scores, often unfairly.

A frustrated board member of the National Association of Mortgage Brokers complained to The New York Times about the practice, charging that over-reliance on FICO scores is disqualifying many mortgage applicants from obtaining loans. In a July 22, 2010 online article, Deb Killian, co-owner of Charter Oak Lending Group in Danbury, Connecticut, told the Times she receives daily notices from banks and lenders indicating that a customer’s credit score has been the primary determining factor in the approval or denial of a mortgage loan.

With 15 years experience as a mortgage broker, Killian has noticed not only an increase in the minimum FICO score needed to obtain a mortgage but a disturbing trend among mortgage lenders to consider a certain FICO score a line in the sand that can’t be crossed. In other words, mortgage applicants who don’t exhibit the proper FICO score — generally a minimum of 700 these days — are categorically refused. Other factors that might present a more accurate picture of an applicant’s ability to repay a loan, such as amount of home equity, ratio of debt to income, job stability and cash reserves, are ignored if the applicant’s FICO score comes up short.

Critics call the mortgage industry’s over-reliance on FICO scores shortsighted and charge it with slowing economic recovery. The bottom line is that consumers pay the price. When their FICO score doesn’t meet lending standards, nothing short of expert help from a credit repair professional can help a consumer cross that arbitary line in the sand.

Texaplex - by David Winans

2010-08-09T12:32:00.000-07:00

M & D Financial Services "Breaking the Bondages of Bad Credit"

2010-08-04T07:47:00.000-07:00

Located in beautiful San Antonio, TX M & D Financial Services is a credit service organization specializing in the restoration of consumer credit worthiness as well as identity theft. We assist consumers in achieving a favorable financial credit profile. Everything we do is legal utilizing laws enacted by Congress to dispute negative, erroneous, obsolete, and/or fraudulent information contained within your consumer credit profile.
The terms credit repair, credit restoration and/or credit rehabilitation are somewhat synomous. Those with bad credit cannot afford to ignore the potential benefits of credit repair. In today's society, credit repair is more important than ever. Approximately 78% of credit profiles contain some sort of error or omission materially impacting credit worthiness. As such, one would be wise to at least explore retaining a reputable credit service organization in the restoration of their own good name and reputation within the community. With that said, M & D Financial Services may be that credit service organization.

Utilizing the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, and the Fair and Accurate Credit Transactions Act, M & D Financial Services will assist a consumer in the submission of disputes electronically, verbally and in writing to the Equifax, Experian and Trans Union consumer reporting agencies in addition to creditors, collection agencies, third-party record providers and state/federal/private regulatory authorities. Keep in mind that anything Credit Restoration Consultants can do - you can do yourself. Where M & D Financial Services has the edge is the fact that we possess the education, knowledge and a source proven method which yields results.

Unlike most credit service organizations that submit the same written dispute letters monthly, M & D Financial Services has devised a strategy whereby disputes are submitted electronically, verbally and in writing over a six month period to the credit reporting agencies, creditors, collectors, and third-party record providers reporting negative, inaccurate, obsolete and/or erroneous information. Utilizing the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Fair and Accurate Credit Transactions Act, in addition to laws applicable to a particular state, M & D Financial Services has obtained thousands of deletions and updates for its clients. M & D Financial Services can help remove erroneous and/or inaccurate judgments, liens, bankruptcies, student loans, inquiries, derogatory tradelines, personal identifiers and more!

A Retirement Plan (For The Older Person) Part 7

2009-02-15T14:43:00.000-08:00

This will be the last article I plan to write on my idea for a possible retirement plan. I have written 6 posts about everything from what properties to look for to what cities you might want to look in. This article will address how you might even use this plan when you are nearing your retirement age or even when you are in retirement.

The principal of the plan is still the same. However, you might not wish to move out of your current home. There are still opportunities for you to purchase properties which may be turned into investments for you. You will have to invest 20% on the down payment for any investment property. This would be the minimum investment required by a lender on such properties. If you are looking at a small single family home priced at $60,000, then you would have to pay a down payment of $12,000. The benefit of this is that you would also be lowering you monthly payment on the property. Therefore, you would have a better chance at developing a positive cash flow on the property.

The principal still remains the same here. You are best served if you can find a desirable property in a great location. Buy the property at a good price using the fantastic rates that are available today. Then lease the property out for a positive cash flow. Even in your retirement, you could be receiving an additional check every month that you might not have had coming before. Furthermore, you are adding to your net wealth since you will be purchasing an appreciating asset.

The best part of all of this is that at this stage in your life you may be the best equipped for it that you have ever been. You may have more assets and income available now than you ever have had previously.

Hopefully, these articles have opened some eyes to all of the possibilities that are out here in our real estate market. I would never tell anyone to quit their investment strategies. I would encourage everyone to look for ways to spread themselves out. As my Dad always says "It is not good to keep all of your eggs in the same basket!" Please send me your comments or questions on this or any of the articles I have written about my retirement plan. Have a Great 2009! I'll look for you out there in the San Antonio real estate market.

A Retirement Plan (For the Middle Aged Person) Part 6

2009-02-05T06:22:00.000-08:00

In the last article, I wrote about how a young person can begin to work on and take advantage of this retirement plan early in life. This article I will address a group of which I am a part. It is not too late to begin to implement this plan if you are middle aged and already established.

You may be thinking how can I purchase real estate when I already have several monthly debts. Moreover, I have already purchased a very nice home with a substantial mortgage. I do not want to sell my home in today’s buyer's market, and I do not want to move my family.

No need to worry I would never suggest any of this, and we can still implement this retirement plan.

The first thing we must do is get out of debt. I am a huge believer in the principals Dave Ramsey espouses. One of the blurbs on Mr. Ramsey's radio show says something like "Paying off your mortgage and owning your own home has replaced the BMW as the new status symbol". I would highly recommend getting into his program called Financial Peace University (which is offered at Community Bible Church). Or you could get his book which is titled Total Money Makeover. I will not go into everything that Dave suggests we do, but I would highly advise that you check him out. He really is right on the money if you will forgive my pun. I do not disagree with anything he is suggesting, and I am currently working on following his plan. As far as I can tell, my plan does not deviate from his suggestions. I believe that I am simply finding a different place to invest my income. As an established middle aged person, you should not try to undo what you have achieved so far. Instead you should work on getting out of debt as rapidly as you can. Pay off those high interest debts first. Then work on paying off your mortgage early. Once you are debt free, then you can turn your attention to investing your income.

I would not suggest giving up on your current retirement savings plans. Just augment them. Once you are debt free then save up enough money to be able to put down 20% on the next property you choose to purchase. Be prepared for a slightly higher interest rate. These rates are not too high. They are still usually somewhere around 6 to 8%. Remember that you want to find a home where you can make a positive cash flow like I wrote about in the last article. Remember, that you are debt free so take the money that you are making on the new investment property and add to it and pay this property off as soon as you can. You could continue this process until you retire. Just think about it. How secure would you feel to know that your current home is paid off and that you own outright another property which is producing a steady income stream?

None of this plan would fit under the Get Rich Quick scheme. It takes hard work, planning, budgeting, patience, and determination. As you can see, this plan can work for a young person or even a middle aged person. In my next article I will discuss whether it can work for a person in their retirement years. This is the sixth part to this series. Does everyone agree with my basic thoughts, or do you think I am on the wrong track? I would love to read some feedback.

A Retirement Plan (For The Young Person) Part 5

2009-02-03T11:30:00.000-08:00

OK, I have written about the initial plan. I have explained some advantages and disadvantages of cities that one may want to consider. In the last article, I wrote about some factors you would want to consider when looking for a property to buy. Now, I would like to bring all of it together, and break down the plan for people at different stages of life. This article will be for someone who is young and just getting started.

If you are young and have never purchased a property, then you are in a perfect position to begin this plan. You may be telling yourself that you do not have enough money to buy real estate. Or you may be worried that your credit is not established enough yet. Or there may be other fears getting in your way. Slow down. Call a good, patient, professional Realtor such as yours truly. There are many ways to assist you in beginning to get your piece of the American Dream. As a Realtor, I love meeting with 1'st time home buyers! A Realtor can introduce you to a loan officer (who is also looking for opportunities to meet 1'st homebuyers like you). This loan officer can assist you in getting qualified, and help find alternative forms of credit such as your utility bills and rent payments to help you buy a home sooner. A Realtor can help you find a property that is affordable to you. Furthermore, we can negotiate for you when you find the property you want. The best part is that a Realtor can take you through the entire buying process. You don't have to know a bunch about Real Estate. You only need to know what you want.

As I mentioned in the previous article, you will need to figure out what you want to buy. If you are single or a couple without children, then you might want to consider a duplex or fourplex. You would then be able to lease out the other units that you don't occupy, and gain extra income to make a mortgage payment. There are duplexes and fourplexes that are extremely affordable right here in San Antonio. As of today there were 106 multifamily properties listed in the San Antonio MLS for under $100,000. Maybe your current income and preference of location will rule out a multifamily property. Or maybe you just don't want to share a property with tenants. Then you could look for a single family home. There are 2,179 of these types of properties in the MLS today (yes, all of these are under $100,000). By the way, there are even builders that are selling new homes for under $100,000. The key to look for while you are shopping for your first property is to find something you will enjoy, and that will be affordable for you. If you like the property and its location, then there will be future tenants who will like it for the same reasons. Watch the price! A lower mortgage payment will make it easier on you while you are building your income level. Furthermore, that lower mortgage payment will enable you to lease out the property for a positive cash flow later. Remember, it is best if you can rent out the property for at least your mortgage payment. This way someone else will be paying for an asset which appreciates for you.

When your income level has grown or when you are ready to move to a different location, then it will be time to call your Realtor again. Hopefully, you will be able to qualify for a new loan on a different property. Then you can start this process again. Now your loan officer may ask you to be able to provide proof in the form of a lease agreement that you are leasing out your current property, before they can qualify you for a new loan. This is fine since that is what you were planning for anyway. This also shows why it is important to find attractive and affordable properties. These types of properties shouldn't be on the market for too long before they are leased out.

Ideally, you can continue to do this throughout your life. If you bought a property when you were 25 years old, then it could be paid off no later than your 55th Birthday. Remember that if you had a positive cash flow on that property, then you have been making money on it all along. At age 55, any income from it becomes all yours minus the taxes of course.

Let's look at an example. Tom is a young person who has been renting for the last 2 years at an apartment complex. He works for a moving company and lives alone. Tom's rent is $650.00 per month. Tom calls a local Realtor whose blog he has been reading. They set up a time and meet that weekend. Tom fills out a pre-qualification form, and they send it off to John who is a loan officer with a strong reputable lender. John the loan officer lets Tom know that he is qualified for a loan of $125,000. John also lets Tom know that a loan for this amount would mean a payment of about $1000. Tom decides to look for properties that are about $800 a month. John tells Tom that this means he should look for properties that are around $100,000. Tom and his great Realtor find a wonderful 10 year old single family home in great condition for $95,000 in the Medical Center. Tom buys the home for the asking price and ends up with a mortgage payment of $825.00 per month. Three years later Tom rents this home out for $1100.00 per month. Tom is making a positive cash flow on this home of $275 and getting the mortgage paid by someone else. If nothing else changed, Tom can look forward to making an extra $275 per month for the next 27 years. Then he can look forward to a monthly income of $1100 minus whatever he would have to pay for taxes and what he sets aside for repairs. All of this is based on nothing changing over the next 30 years. So Tom is trying to predict the future a little bit. He is betting on the idea that there will always be a demand for rental houses near the Medical Center. Students, nurses, and even doctors may be looking for a place to rent near where they work. Tom is hoping that when things do change over the years that they will change to benefit him and his home.

Hopefully, I have adequately explained how this retirement plan can work for a young person. Nobody is ever too young to start thinking about their future. Please watch for the next post. I will write about how a Middle Aged Person or Couple can get started with and take advantage of this retirement plan.

A Retirement Plan (Finding The Right Property) Part 4

2009-01-31T13:45:00.000-08:00

Once you have selected your city and area in that city where you want to buy, then you need to start thinking about what you are going to buy. There are several choices of types of houses to buy. You might get a single family home with 3 or 4 bedrooms which will accommodate a larger family. If you are single or just a couple you might want a duplex. In a duplex you could live on one side and start your investment in the future by renting out the other side. Or maybe you will want to be very aggressive and buy a fourplex. You could still employ the same principal as the duplex by living in one unit and renting out the other 3 units. In renting out units while you are living there, you will find some advantages and disadvantages. An advantage is that your mortgage payment will be a lot more affordable since you will have 1 to 3 rent checks coming in each month. The obvious disadvantage is that you will be a little bit to accessible to your tenants.

Next you will need to consider how much you are going to pay for your house. I suggest talking to a lender. A lender can sit down with you for free and tell you how much you can qualify for, and (this is important) how much a mortgage payment would be for the price range house you are shopping for. Ideally, you can get a house and a mortgage payment that will allow you to lease the property out for at least a couple of hundred dollars more than your mortgage. For example, you might want a duplex in the medical center with a mortgage payment of $1200. If you can lease this property at $800 a unit, then you will make $400 a month and get your mortgage paid by someone else. Or you can live on one side of it and pay only $400 a month while you are building equity in it. The important thing to remember is to keep that mortgage payment down as low as you can without buying something undesirable or rundown. If you can buy in a stable neighborhood where prices slowly and steadily increase for a little bit cheaper than the other homes, then you will already be gaining that equity. In real estate we call this “on the ground equity”.

Finally, you will want to look for properties that are in good condition. Unless you are a handyman with lots of connections stay away from fixer uppers. A fixer upper can be a great deal or it can be a money pit. You don’t want to be paying a mortgage and continuously making repairs out of your received rent checks. If you are doing this, you will quickly find that you are left paying for the privilege of providing someone else a place to live while making you no money at all. Hopefully, this article has given some perspective on what to look for when shopping for a house. Please check back in with this continuing series, and I welcome any comments.

A Retirement Plan (Finding The Right City and Area) Part 3

2009-01-29T09:57:00.000-08:00

In the last article I wrote about the real estate market's history. At the end of the article I made the statement that “I believe that when I find good properties in desirable locations, that these properties will increase in value." Now it is time to look at what constitutes a good property in a desirable location. Well, I am sure that everybody has an opinion of what they consider to be a good property in a desirable location. I will describe a few things that I look for. Also, I will write about a few things that someone might want to avoid when looking for a house to buy.

The first thing I look at when shopping for a house is the city where it is located. Now if you are shopping for your first house you will need to look in the city where you currently live. Hopefully, your city is growing and has a strong future ahead of it. If not then you will need to make do with what you’ve got and try to find a very desirable location within your city. I have been fortunate in that I have lived in Northern VA and here in San Antonio. Northern VA is one of the bedroom communities of the capital of our great nation Washington DC. Fairfax County was at the time when I was there one of the richest counties in the nation. Now I am in San Antonio, TX. San Antonio was ranked 2nd in the nation by Forbes Magazine for Cities Where Your Dollar Goes The Furthest. San Antonio has a warm climate that attracts many seniors who are retiring. Finally, San Antonio is known as Military City USA. We have the Spurs, the Riverwalk, and the Alamo. Can anyone disagree with the idea that San Antonio is robust and growing? In fact, Texas in general has not suffered as much as the rest of the nation has in this recession. What does the city you are shopping for a house in have to offer and will it last? College town is a favorable place. Colleges do not move. You need to be careful in a manufacturing town. Companies can and sometimes do move for example Flint, MI. The best cities offer many things such as a military base, a college, and manufacturing companies.

Next, you will need to target specific areas in the city where it would be good to own property. You also want to keep in mind finding locations where you might be attractive to possible renters. You might benefit from finding a location near a school where students might be renting while they are in school such as the Medical Center here. You might want a property near a military base where there are folks renting because they will only be stationed there for a few years. Try to avoid areas that are dirty looking or becoming run down. Many people dislike HOA’s. These HOA’s do sometimes serve a purpose in keeping the community looking nice. Avoid areas with expensive housing. Yes the homes are beautiful and often times large, but so are your mortgage payments. A large mortgage payment will force you to charge a higher rent to break even. Higher rents will reduce the number of potential renters for you, take longer to get leased out, and cost you more while they sit vacant.

In my next article, I will write about what type of house you might want to consider. Thank you for reading these articles, and I welcome your feedback.

A Retirement Plan (A Look at the Markets) Part 2

2009-01-27T13:08:00.000-08:00

In my last post, I began writing about my personal plan for my retirement. When I wrote that article I very quickly covered all of my thought process. Now I would like to start breaking down all of my thoughts about this plan in more detail. I will be putting out several more posts which should accomplish this.

In this post, I would like to discuss the 2 charts above which illustrate the history of the DOW Jones, and the sales prices of New Houses sold in the US. Furthermore, I will discuss what I believe we have to look forward to.

First, let’s look at a chart that I got from www.the-privateer.com/chart/dow-long.html. This chart illustrates the DOW Jones Industrial Average from December 31 1974 - December 31, 2008. There were two things that jumped out at me on this chart. First, I noticed that from 1974 to 1994 the DOW never crested over 4,000, and then it went up as high as 14,000 in 2006. That is 20 years of slow but steady increase. Then in the last 13 years it has increased dramatically. Then it looks like it dropped all the way down to 8,000 in 2008 (which is still twice as high as anything before 1974). The other thing I noticed about this chart is that even with ups and downs the DOW has gone up over the last 35 years.

Now let’s look at the other chart from www.InvestmentTools.com which shows the average and median new home sales prices from January 1963 to January 2009. New home sales prices didn’t crest over $100,000 until after January 1985. That is 22 years of prices under $100,000. Then these prices peaked in January 2007 at over $250,000. That means they more than doubled in the last 24 years. Once again this chart shows that New House Sales Prices have gone up over the last 46 years.

What does all of this mean? I believe that with all of the ups and downs both in the stock market and the real estate market that there is one clear truth. Everything given enough time will go up in value. Another truth is that our population continues to increase. A final truth is that the price of everything will increase over time. More consumers, higher prices, and markets that increase over time should give the assurance of increased value over time. Nobody can speak of guarantees when it comes to any of these things. However, I sure like what history shows.

From all of these truths I believe that when I find good properties in desirable locations, that these properties will increase in value. Thus these properties should increase my personal net wealth. I may see them dip in value on occasion, but they should go up in the long run. Please come back to this site in a few days. I will continue to further explain my plan.

A New Idea For A Retirement Plan (Part 1)

2009-01-25T17:11:00.000-08:00

The stock market is fluctuating drastically. Most of the time we hear each day that the DOW is down another 40 points or sometimes it is even worse than that. Then you hear about the huge government bailout that is going to aid lenders, or banks, or auto manufacturers, or even the credit card industry. Finally, you get your mail. In your mail you have last quarter's statement of your retirement plan. Your retirements savings have gone down $10,000 or sometimes even worse. Most experts will tell you not to panic. Now is the time to invest even more while the price of stocks and mutual funds are down. I do not disagree with this logic. History has shown that everything goes back up eventually. Investing right now while prices are cheaper so that you may sell later when everything is better, and make a buck does make sense to most of us.

However, I had a different idea. When you invest in the market, you really don't have anything tangible to show for your money. Why not invest in Real Estate? Let me tell you my story and my plan for the future. When I lived in Northern Virginia, I bought a home in Springfield, VA. for roughly $170,000. We lived in this home for about 3 years. Then I bought another home in Ashburn, VA. Instead of selling the house in Springfield, I leased it out. In fact, I leased it for another 7 years. Finally, I sold it 10 years for $350,000. Surely anyone would agree that to have tenants pay my mortgage for 7 years, and then turn around and double my investment in the home is a pretty good deal. Now, I live in San Antonio, TX where the market is still very sound. I have purchased 2 homes here. One I live in currently and the other I lease out. My mortgage payment on my rental is $997.00, and I receive a rent check each month for $1100.00. Now I am not making a killing with those kinds of numbers, but I get the opportunity to gain equity while I pay nothing for my mortgage.

So here is my plan! I will continue to work very hard to keep up with all of my other expenses in life and whenever I can I will work to pay this home off. Once it is paid off, the rent check I receive will be profit. In fact, it is my intention to do this as quickly as possible so that I can buy another property. I would like for my next investment to be in a duplex or fourplex. I have no intention of letting go of my current properties. Ideally, by the time I retire I will own enough properties free and clear that I will be able to live off of the income stream that they provide. I just don’t see how the quick gratification of house flipping can work in today’s times. I think it is better to be in Real Estate for the long term. And the best part of all of this is that at the end of the day a person can see properties that they own. This has to be better than a piece of paper in the stock market that is worth $60.00 today and then worth $45.00 tomorrow. Obviously, this is all my personal opinion. If you like the idea that I have written about, then give me a call. As your local Realtor here in San Antonio, I would love the opportunity to discuss it with you. Also, please continue to check my website since this is only the first article I am going to write about this subject.

Low Credit Scores, Okee Dokee No Problem!

2009-01-11T09:53:00.000-08:00

If you are one of the poor souls that missed out on the sub-prime borrowing frenzy of the last few years, then count yourself fortunate. Many of those sub-prime loans have gone to foreclosure, and many of those lenders have gone out of business. The problem was that people were getting loans that they really could not keep up with. But don’t get down or give up and go home to your apartment. Now today in our real estate market an old friend has come back to the fore front. FHA loans have never been gone, but now they are becoming a fantastic option again.
A FHA loan is a loan made by a private institution which is backed by the government. A FHA loan is like a treasury bond in comparison to a conventional loan which is like a stock. What this means to you the buyer is that a lending institution is going to be willing to take risks on you as a borrower that they might not take with a conventional loan. Of course, you will have to go through more hoops to qualify for a FHA loan. You as the buyer must qualify and your desired home must qualify as well.
10 of the benefits of an FHA loan for the Home Buyer are the following:
1. Low credit scores are OK! Some borrowers can qualify with a score that is less than 580!
2. Here in Bexar County, we have new loan limits of $287,500. The lowest loan limits in some other places are still $271,000 which is still very good.
3. The borrower is only required to make a 3% investment. (and right now that can be worked around as well if the need arises with some help form the seller and a DPA Down-payment Assistance Program or with help from the HIP Home-ownership Incentive Program in the form of a very cheap loan )
4. There are generous qualifying ratios - you need 31% of your earnings available for a mortgage or 43% of your earnings available to pay your debts and mortgage. (these ratios can be stretched by manual underwriting if you don’t make it through the AUS Automated Underwriting System)
5. FHA lenders can work with people who have no credit scores or who have non-traditional credit scores (utility bills, Rent-A-Center bills, rent paid to a relative, or even tithing at your church if you have the records)
6. You could get approved for a FHA loan after a chapter 7 bankruptcy in as little as 24 months and in as little as 12 months for a chapter 13 bankruptcy.
7. FHA loans are the only loans that have allowances for non owner occupied borrowers known as “kiddie condos” to help with qualifying. This means the occupying borrower doesn’t have to meet the qualifying ratios or even invest in the home.
8. FHA loans are offering great rates. You can also even get part of the loan for property repairs or improvements.
9. There are many repayment terms to choose from.
10. There are no prepayment penalties.
So don’t lose hope future home buyers! Call your Realtor and they should be able to introduce you to a lender that is qualified to make a FHA loan. FHA loans are on the rise again and this is one of the best and most stable programs you can be involved in.

One of the Best Places to buy an Investment Property

2009-01-07T13:31:00.000-08:00

Does anyone realize what a fantastic market San Antonio, TX is for buying investment property? Today I was reading an article by Carolyn Said of the San Francisco Chronicle written on May 9, 2008. Just read this excerpt from her article.

It's the worst time since the Great Depression to buy real estate, right?
Not so, according to some individual investors, who think the market slump has made selected pockets of the Bay Area more desirable than they've been in years.
"Look at this," said Dan Shiner of Mill Valley, one such investor who was en route with his agent to visit properties for sale in Santa Rosa last week. "This duplex sold for $599,000 two years ago and now it's listed for $414,900. That's why people like me are coming out of the woodwork."
Shiner, who works in finance, said he avoided investing in local real estate for years because prices were so ridiculously high. But the current market has drawn him back in because suddenly he sees relative bargains. Last week he looked at a dozen Sonoma County duplex and triplexes, and had offers accepted on two.
"The way prices have come down is absolutely amazing," he said. "I think it's a phenomenal opportunity for the small investor to buy their first rental properties."
While many buyers, whether potential residents or investors, are staying on the sidelines, largely from fear that prices will continue to plummet, some private investors think there's no time like the present to take advantage of a market in freefall.
Unlike the "fix and flip" speculators of recent years, these investors are in it for the long haul. They see chances to be cash-flow positive - which had been a pipe dream in the Bay Area without putting down wads of cash - and to build appreciation over many years.

Now I understand that $415 k is a heck of a deal in the Bay area of California, but I can also tell you that your purchase dollars can buy a lot more property here in San Antonio. I ran one quick search of our Multiple Listing Service and found 340 properties that were duplexes up to 4-plexes which were all for sale for $200 k or less. Yes, you could buy 2 properties here in San Antonio for less than you would spend on the property in Santa Rosa listed for $414,900.
Now a savvy investor might say this is great , but what if you could not sell the properties later on for any kind of profit? I want to warn all of you savvy investors. San Antonio's market is not a Big Boom Market. We do not experience the big 20 or 30% increases in our market, but we also do not suffer from huge drops. Property values will increase slowly maybe 5 to 8%. Of course nothing in real estate is guaranteed. So far we have not suffered the woes of some of the other places in the country. In a recent Yahoo Real Estate chart I found San Antonio, TX to be in the Top 10 Seller's Markets in the country! Check it out !

Lease Purchase also known as Rent to Own Homes

2009-01-03T13:43:00.000-08:00

A lot of people are renting for all of the wrong reasons. Some folks don't think they can qualify for a home mortgage. Others think they could only qualify for a small loan which would leave them purchasing a home that is not the size they want, or that is located somewhere they don't want to live. Finally, there are those people who are renting simply because the process of buying a home is scary for them. I have received calls from people that would like to test the waters without actually jumping in. What I mean by this is that those people want to try to "rent to own". These people often think for the reasons above that it might be easiest to find a way to work towards "The American Dream" but to stay in their old patterns. They know that they would like to own their own home, but they don't want to risk being turned down by a lending institution, or they feel they need time to build a large down-payment. Their solution is to find a property where the owner is willing to rent to them, and count part of their rent payment towards the purchase price of the home.
So what exactly does rent to own or a lease purchase entail? A standard rental lease allows you to live in the home and there are usually associated move-in expenses such as a deposit and/or security deposit. With lease purchase homes or lease option homes, the "option" agreement gives you the right to purchase the rental home within a certain period of time at an agreed upon price. There is also usually an initial "option" amount due upon signing (similar to a rental deposit) and a monthly additionally payment which applies to the purchase price of the lease option home.
The big problem with this whole situation is that it really is of no benefit to the home owner. Why rent to a potential buyer for any period of time, when you could just sell and get your money out of the property to a "Now Buyer". Furthermore, with a renter you as the home owner are responsible for the property taxes, fire insurance(at minimum), and for the homes maintenance.
"Rent to Own" is no bargain for the home buyer either. First of all if you need to fully understand this type of agreement as you must be willing to see the option all the way through and make your payments on time or you could risk losing the right to purchase the home and any additional option amounts you paid.
As you can probably tell by now, I do not have a high opinion of the lease purchase process. I realize that this is a necessary option for some folks. I believe that you should exhaust all possible options first before you resort to the Rent To Own option. There are lenders out here (in fact I am closely working with one) who can qualify people with credit scores as low as 530. If a down-payment is your concern there are many programs like The Nehemiah Program, and others that are created to help people with grants or gifts meant to help reach their dreams. If fear is your problem, then that is why your local realtor is here. It is our profession to help people realize their dream of home ownership. We can explain each step of the buying process, and help you find professionals in the other fields that you will need in order to purchase your home. Finally, we will be there with you as Your representative in the home buying process.
So now it is time to act. Get past your concerns, and jump in!

San Antonio’s Market

2008-12-29T13:40:00.000-08:00

Everyone knows one of the first questions you are asked in polite conversation when you first meet someone. You know the one "So what do you do for a living?". I will answer "I am a Realtor here in San Antonio." At this point I usually receive a sympathetic look from the other person and they will say "Oh, how is the market? It is pretty bad from what I hear. Are you doing OK?" Well STOP IT! I am doing great! Thank you for asking. Yes the real estate market around the country may be struggling. Yes the sub-prime lending market is in deep trouble. And finally the mortgage market is struggling a bit and become a lot more restrictive about their lending practices. It is a lot more difficult to get qualified for a home loan now than it was just 6 months ago. Since there are fewer people qualifying, the National Market has slowed down and it has become more of a buyer's market. Yes it is more difficult to sell a home in certain areas of the country.
So, you might be asking by now where is the upside to real estate? Why haven't you given up Tom? I haven't given up because I live in one of the best markets in the country! San Antonio, TX has a fantastic real estate market. The market here for the last several years has gone up steadily. We have not had any giant booms, but we have not had any great crashes either. This last year we are still growing.
San Antonio's warm climate is very inviting for retirees who want a nice place in the south to call home. We are getting ready to welcome many new soldiers who are relocating here due to base realignments. There are many other businesses moving their people into and around our city. Toyota is only one example.
Our lenders here in San Antonio are working very hard to find new ways of getting people qualified for the loans they need to buy a home. There are new ceilings on FHA insured loans. The best news of all is our pricing here in San Antonio. It is possible to find a home in any price range here. There are homes for as little as $50,000 to as much as a few million. It is not unreasonable to find a nice home for $140,000. The median price for a home here is $165,000. Shoot, you could buy a home on a golf course here for around $200,000. Try doing that in California.
So if ever we meet, don't be afraid to ask me what I do for a living. I sell Real Estate in San Antonio, TX and I love it. It is a great place to be!

What is Building “Green” All About?

2008-12-27T12:55:00.000-08:00

I have written 2 posts about building “Green” and what a great job Imagine Homes is doing at building “Green”. In one of my earlier posts titled Imagine Homes Building Greener Than Ever I mentioned that Imagine Homes was named by the National Association of Home Builders ”the nation’s top green builder among companies that build single-family production homes.” I have not gone into detail about what “building green” means. I plan to remedy that in this post.
The first topic I would like to discuss is what builders mean by building a tighter home. With today’s technology most new home builders build a tighter home than they did in the past. A tight home is describing how well a home keeps in the temperature that its occupants have set, and how well it keeps out the elements. All homes, new or old, will let some temperatures out and some of the elements in. Unless you live in the space shuttle, any home you live in won’t be that tight. You really don’t want a home space shuttle tight anyway. There is room for improvement. Yes, new builders are building tighter homes, but Imagine Homes are building even tighter homes. Imagine Homes do a few things to go above and beyond the others.
1. Imagine uses a finger jointed stud frame with advanced framing (2 stud corners, no t at intersections)
What this means is that the corners of the framing are actually cut and joined before they arrive on site. Most builders will nail 2 studs together to form a corner on site, but Imagine actually orders their corner studs to be cut and joined together by finger-jointing by their supplier before the studs are ever delivered. This means that there are fewer gaps for air to leak out of in the corners.
2. Imagine puts in Radiant barrier OSB roof deck, and a continuous soffit and ridge vent.
What this means is that the temperature in the very hot attic is reduced.
3. Imagine uses Borate treated, recycled content, cellulose insulation in the attic and walls.
What this means is that less heating or cooled air escapes through the roof and the walls. Cellulose insulation is thought to be more efficient and healthier that the old standard fiberglass insulation.
4. Imagine uses Low-E2 glass windows.
What this means is that the homeowner will have less heat gain in our hot humid climate. Of course they are installed properly and tight to prevent any temperature loss as well.
These are just a few of the things that Imagine Homes are doing to build a tighter home. They are not just depending on materials to build a tight home. All builders will performance test some of the homes that they build to ensure energy efficiency. Imagine Homes performance tests all of their homes.
A duct blaster test is performed to ensure that the pressure is balanced with the HVAC system. They are checking for supply leaks which could mean negative pressure, and return leaks which could mean positive pressure.
A blower Door test is also performed on every home. Once again they are testing for leaks.
A third test that is run on every home is the Thermal Imaging test. As before they are looking for leaks through the walls and trying to ensure that the home is as tight as possible.
All of the tests, construction, and materials that I have mentioned are the reason why Imagine Homes are building a tighter home than most. You need to do more as a builder than just build the home tight. Imagine Homes is finding ways to get greener besides just the construction. For example they have a job-site waste management program that is unbelievable. Lumber, drywall, masonry, and shingles are all ground on-site and used for erosion control. Cardboard, metals, glass, and plastic are all gathered and sent to the local recyclers. This means that the waste normally sent to the landfill is reduced by 2/3.
They put High-efficiency toilets with dual flush controls in every home. They use Low VOC interior paints (volatile organic compounds). The insulation is formaldehyde-free. They use Green Label low VOC and recycled content carpeting. A “Right-sized” HVAC to control humidity with a MERV media filter is installed in their homes. They even thought to use compact fluorescent bulbs throughout the home. I have just touched on a few of the things that are just standard for Imagine Homes to use when building a very Green Home.
A tighter greener home means improved performance and comfort to the home owner. The homes have less impact on the community. Finally, this type of building opens up innovative financing options. The amazing thing is that these homes are built and sold at a price that is still competitive with other builders in our community. Even if you want to use another builder you should still ask if you can get as many of these features as you can. Building “Green” is worth it to you and to the future.

Does the County Know Which Home You Have Purchased?

2008-12-21T13:17:00.000-08:00

Now that may sound like a silly question. I am embarrassed to say that the county did not know what home I had purchased. Now as you know I am a realtor. If anyone would be able to study their closing paperwork and make sure everything is correct, it should be me. Like most everyone else though, I made an assumption that was incorrect. Now, this is not to say that I am a poor realtor, when I asked around most Realtors do not check. I checked around and all most nobody pays close attention to what went wrong on my home closing. So I am writing this article as a cautionary tale for everyone including my fellow Realtors to learn and hopefully be saved the pain and aggravation that I am currently going through.
I purchased my home last year in April. When I was at the closing, I carefully studied the HUD statement to make sure the figures were correct for closing, I looked over the purchase agreement since it was a new construction home, I verified that my name and the information for the property's address were correct on all of the paperwork, I looked over the Warranty Deed and the Deed of Trust, and I verified that my information and the builder's information were all correct on all of the forms. I thought I was being thorough. Now a year later I have discovered one thing that I did not check well enough.
For every piece of real estate whether it is a house, a townhouse, a condominium, a farm, or even just a piece of land in any market there exists 2 descriptions of the property. The 1st description is the one that everyone is familiar with which is the address. The 2nd description is the Legal Description. It is usually written out something like Lot1 Blk2 NCB1234. Sometimes the subdivision will be added on to the end of it in parenthesis. Now this Legal Description can vary slightly, but generally this is what they look like. The Legal Description is what the attorneys, courts, and county or city governments use to describe each and every piece of real estate. I assumed like everyone else that when the title company drew up the paperwork that they used the correct Legal Description. The title company after-all is insuring the title of the property and that the title and property are in fact transferred legally and without any encumbrances or liens against the property.
Now in my particular case this Legal Description got recorded incorrectly at the county. My Deed of Trust and the Warranty Deed both reflected the house across the street from me. My house was recorded as belonging to my builder. My neighbors across the street (who by the way live in California and did not set up an escrow for their home) do not own either of these properties according to the county. As if this all doesn't sound bad enough, the builder has been receiving tax bills from the county which they have been forwarding to me. Now I did have an escrow account set up and my lender has been paying my tax bills when they are due. Amazingly, the lender was able to pay the correct tax bill for my home which amazed the county appraiser, the title company representative, and me. Unfortunately, the home across the street does have a years worth of taxes due on it now and it isn't the owners fault since they have never been sent a single bill. All of this was caused by the title company having the wrong Legal Descriptions on the Deeds and recording them incorrectly with the county.
When I was speaking with the representative in the legal department of the title company, she informed me that she was aware of this problem since last July and has been trying to get their attorney to resolve it by recording a Correction Deed with the county. She also told me that they have several of these problems that they were working on. How scary is that?!
I am happy to say that all of this mess is not going to cost me anything financially in my particular case. It has caused me several headaches and a lot of stress in dealing with the county, the title company, the builder, and my lender. The best lesson I have taken away from this experience is to check that Legal Description closely wherever it appears in your closing paperwork to make sure it is for the property you are purchasing before you sign the final paperwork. You do not want to have to go back and have corrections made after the fact! In my opinion, this is a shining example of why it is smart to set up an escrow account. You might know what property you are intending to purchase, but you had better make sure that the Deeds are correct before they are recorded or the county won't know what house you have bought.

San Antonio Is Set To Welcome Its New Military Residents

2008-12-17T19:13:00.000-08:00

San Antonio’s congressional delegation announced that Fort Sam Houston will receive $28 million as part of an $863 million bipartisan bill passed by the U.S. House of Representatives this week in support of Base Realignment and Closure Commission (BRAC) efforts.
This excerpt was copied from a article I found on the San Antonio Business Journal. It goes on to say what is planned for the $28 million.
The $28 million is earmarked for ongoing construction and health care projects at Fort Sam Houston, which is undergoing a transformation under BRAC into a regional military center of excellence in health care.
Brooke Army Medical Center at Fort Sam Houston is already playing a leading role in providing specialized care to wounded soldiers returning from Iraq and Afghanistan. Fort Sam, known as the home of Army medicine, is slated to play a major role in training medical personnel from all service branches as part of the Department of Defense base realignment process.
BRAC is expected bring an additional 4,886 jobs and 9,000 students to San Antonio by 2011. Once BRAC is completed, BRAC is projected to produce an economic impact of $621 million for the San Antonio economy.
All of this is fantastic news for the Real Estate Market here in San Antonio. All of the personnel moving here will need places to live. Not everyone who is reassigned to San Antonio will want to buy a home here. But a lot of folks will see the value of a home in our market, and many others will just want to own their own home as opposed to renting.
There is even better news for active duty military members moving to San Antonio, TX. Texas is one of only FIVE states that offers special programs for the military and our veterans. The Texas Veterans Land Board has 3 loan programs in particular which can assist active duty military members as well as veterans in buying Real Estate.
1. The first program is the Land Loan Program. TexVet offers loans for land purchases of one acre or more. The loan is for up to $80,000 with a 30 fixed-rate and a 5% minimum down-payment. The rate for these loans can vary but it is usually somewhere around 7.25%. TexVet also has repossessed tracts of land available for purchase by eligible Texas veterans in sealed bid sales held in April and October.
2. The second program is the Home Loan Program. TexVet offers a loan though participating VLB (Veterans Land Board) lenders for up to $325,000 for a primary residence. They offer 15 and 30 year fixed rate terms at interest rates which can start at 5.96%. The starting rates change along with the market every friday, but they are always lower than the market rate. Please note that this is the starting rate. The rate can be reduced by a disability deduction, a service era deduction, and a loan term deduction. It is conceivable to get a loan with an interest rate as low as 3.86%. These loans can be made in conjunction with Conventional loans, FHA loans, and even VA loans.
3. The third type of loan program offer by VLB is a Home Improvement Loan. These loans are originated directly through the VLB. The loan can be for $25,000 for a 20 year loan or $10,000 for a 10 year loan. There is no down payment required with this type of loan. The loan can only be for a substantial home improvement on the primary residence.
Now there are some eligibility requirements to be met in order to qualify for these loans. The first requirement to be concerned about is residency. A veteran who moves here must be a Texas Resident for 1 year or have Texas listed as their home of record at the time of their entry in the service. An active duty military member can qualify even quicker. Active duty personnel need only to change their residency on a form DD2058 to Texas to meet the residency requirement.
I will be writing about other requirements in articles to come. I also plan to write about other great programs offered by the VLB such as Veteran’s Homes which offer nursing care and Veteran’s Cemeteries. The Texas Veterans Land Board is a very strong organization working hard to help our military members and our veterans. I am proud to be a Texan and an American and I am proud of our efforts to take care of our service members.

Imagine Homes Building Greener Than Ever

2008-12-13T13:11:00.000-08:00

Recently, I had the opportunity to visit one of the subdivisions where Imagine Homes are building. It was my first time to visit with the representatives for Imagine Homes. I was blown away! I like most people (I imagine) thought that building “Green” meant spending a lot of money and looking like you live in a house from another planet. I envisioned some domed strange looking structure with solar panels and windmills all over it. Furthermore, I figured that a person would pay an outlandish amount of money for the privilege of living in this bizarro structure. BOY!!! Was I wrong! Imagine Homes is one builder who have found a way to build a “Green Home” that looks very nice and traditional for an extremely reasonable price. Before I go on take a look at this excerpt from MySA.com:
Imagine Homes has made a mark on San Antonio’s home building market as the city’s only production builder that meets both federal Energy Star guidelines and Build San Antonio Green certification standards.
Now the buzz about Imagine is spreading throughout the country.
Imagine was named the nation’s top green builder among companies that build single-family production homes by the National Association of Home Builders on Sunday at its Green Building Conference in New Orleans.
“Imagine Homes has helped lead the way to the market’s embrace of green homes, and in many ways is an industry pioneer,” Ray Tonjes, chairman of the NAHB Green Building Subcommittee, said in a release announcing the award.
“When a green home doesn’t look or feel significantly different form one built using more traditional construction methods, when builders have the tools and resources to build them without significant material or labor cost increases, and when consumers readily accept the finished product, then ‘green’ has arrived. I think it has,” he said.
Local green building advocates agree.

“It really is a big thing for Imagine Homes,” said Stephen Colley, a green building coordinator for Build San Antonio Green. “It’s also a big thing for San Antonio. When you think of green building, nobody thinks of San Antonio.”The company, started by John Friesenhahn and Jim Bastoni, is less than 2 years old. Imagine closed on its first home in November 2006 and has closed on about 110 since then.
“John and I have been building energy-efficient homes since the 1990s,” Bastoni said. “When we started Imagine Homes, it was about taking the building to the next level.”
Imagine Homes are accomplishing everything you see above for several different reasons. They are recycling on site, they are using the same materials as other builders but differently, they are having each and every home they build tested (which is different from other builders), and they are using many other measures to ensure that they build a “Green Home”. Please keep checking in with my blog since I plan on writing in more detail some of the ways that Imagine Homes are distinguishing themselves from their fellow builders.
I am quickly learning just how important “Green Building” is to all of us. If you are in the market to buy a home, then you owe it to yourself to at least check out Imagine Homes. “Green” homes are good to the environment, and great for your pocketbook in energy costs and savings.

Buying A House Is As Complicated As It Looks!

2008-12-09T12:59:00.000-08:00

As you read from one of my earlier posts, it is impossible to predict how long it will take to find and buy a home. In this post I want to go into detail on just a few parts of the process that I touched on earlier in the previous post titled Buying A Home Takes More Than A Week.
First, I would like to explain how important a pre-qualification letter is. A pre-qualification letter is often given by a loan officer after a preliminary interview and a small amount of research on their part. The lender will check credit reports, current household earnings, and current debts. Based on the information they find and get from the potential buyer, the loan officer will issue a letter for that buyer stating what the buyer should be qualified to buy. This is an important step that should give the buyer some idea of what price range they should be shopping in. I as a Realtor insist on all of my buyers getting pre-qualified before we go looking for several reasons. The first and most important reason is that this step is very beneficial for the buyer. There is nothing more disappointing for a buyer than doing a lot of research and house hunting until they finally find the ideal home for them. Then when they submit an offer for their ideal home they can’t get a lender to approve a loan for them to make the purchase. Not only do they not get what they wanted, but they may not like what choices are now available to them since they already found their ideal home. Furthermore, the buyer may now be embarrased from the previous situation. Another reason for getting a pre-qualification letter is that most sellers will not even consider an offer unless it is accompanied by the letter. One more reason which is different from everything else. Some buyers may not have a good idea of how much mortgages cost. What if the buyer settles for a home that they only kind of like simply because they do not know that they were qualified for a much nicer home that they would have liked to have had.
After writing about a pre-qualification letter, now I want to describe an even better option. The pre-approval letter is a much better tool for the home buyer. The pre-approval letter differs from the pre-qualification letter in one major way. A pre-qualification letter from a loan officer is basically the equivalent of an estimate, whereas a pre-approval letter is the equivalent of a bill. The pre-qualification letter is issued after some very basic research and a short interview. The lender has not taken the time to research everything and has not approved anything yet in the pre-qualification letter. It is just a good faith letter stating that the buyer appears to be qualified for a certain loan amount. In a pre-approval letter the lender is saying that the buyer has already been approved for a certain loan amount. (Some lenders say it is the same as cash)
Another part of the process that the buyer needs to plan for is the Home Inspection. I highly recommend that all buyers get a Home Inspection even on a newly constructed home. It is also a great idea if you can to attend the Home Inspection. My experience with Home Inspectors has been a good one. As a buyer, you need to remember that the Home Inspector has to report everything that they find in order to cover themselves for legal purposes. As a buyer, you need to pay attention to everything they point out. There may be some things which are not significant enough for you to be concerned about. There may be other things which you will need your Realtor to help you to address in the contract during your option period. Just don’t throw away your opportunity to purchase your ideal home by asking for silly repairs that drive the seller to a negative mindset where they may not do anything to accommodate you. No home is perfect, but if you are going to spend this much money you should get a home that meets your standards.
One final thing that should be mentioned is to be patient during this process. Stay in touch with your Realtor. Your Realtor should be able to keep you posted on how your contract is progressing. Remember your Realtor is supposed to be the expert and should be able to explain what is going on. Keep a low profile financially. Don’t race out and put a set of living room furniture on your VISA. You can do this after you get the home. Finally, don’t get stressed. Remember that buying your home should be FUN and EXCITING!

STOP ! Think Before You Lower That Price.

2008-12-05T12:31:00.000-08:00

You the home owner have set your price, or maybe you followed your Realtor’s advice about what you should make the asking price for your home. Now your home has been on the market for awhile, and you are starting to worry that nobody is interested in your home because it may be priced too high in comparison to other homes in your market. Stop! Before you start dropping your price and the perceived value of one of your most important assets, take time to consider all of the factors that control your ability to sell your home.
First of all is your home being marketed to its best advantage. I covered many different marketing options in one of my previous articles titled Looking For A Qualified Buyer. Your home could be priced extremely well, and nobody will be interested in it if they do not know that it is for sale. Obviously, marketing means a lot when it comes to selling your home.
Next you need to look at your home. No really, stop and look at your home. Is your home clean and clutter free? Make sure there are not too many big pieces of furniture in any of your rooms or the house may feel small. Are there a bunch of personal pictures or religious items hanging on the walls? These types of items may be enjoyable or comforting to you and your family, but they may not appeal to a potential buyer. No, a buyer is not buying your decorating scheme, but home buying is an emotional process. You want the buyer to envision their belongings and furniture in your home not be focused on yours. Also, you may want to look at the front of your home. Is it landscaped well with a manicured lawn and a nice looking flower bed. You want to have good Curb Appeal to invite and excite buyers to come into your home.
Now if you feel that your home is marketed well and buyers are aware that your home is for sale. You have worked very hard to make your home very appealing in its appearance. You still are not getting any offers and you are frustrated. You and your realtor feel that your price may be the issue. There are still other options to deal with this issue besides just lowering your asking price.

Offering to help with closing costs, is often a wonderful way to assist buyers want to buy your home. The buyer may have just enough saved up to afford the down payment, but they will not have enough to pay for the closing costs. This is a price reduction on your home without reflecting it in your market.

You could offer a selling bonus to any realtor that sells your home. Remember that the vast majority of homes are sold by a realtor. If you offer those busy agents who are currently working with a buyer a bonus (much like the builders do), they will be more inclined to show your property before another one with a lower commission or that doesn't have a bonus.

There are other techniques that your Realtor can tell you about that may work for you better than just dropping your price. In our market today, sellers really need to be creative and aggressive. Be patient and persistant. It may be a buyer's market, but you still own the commodity. Sell your home for what it is worth.

Buying A Home Takes More Than A Week

2008-12-01T13:01:00.000-08:00

When I am speaking with people who are considering buying a home, I am asked quite a few questions. One of the most common questions I hear is “How long will it take to find and buy a home?” The answer to this question is that the amount of time it takes to find and purchase a home can vary depending on the buyer, the home, the seller, and several other parties.
Just finding a home can take quite a while for some folks. This is only the beginning of the process. A buyer can and often does their own research on the Internet before they ever meet with a Realtor. Then after they have a good idea of what they are interested in they will contact a Realtor. The Realtor will often introduce them to a mortgage lender first. The reason for this is to get the buyer a pre-qualification letter. Most sellers today will not even consider an offer unless they know that the buyer is qualified to make the purchase ahead of time.
Then the buyer will sit down with the Realtor and search for the properties they are interested in, using the Multiple Listing Service (MLS). Finally, after narrowing down their search to a reasonable number of homes, the buyer will go out with the Realtor to find the ideal home for them. Once they find this ideal home the buyer will work with the Realtor to submit an offer to the seller. If the seller accepts their offer, then they have officially entered into a contract to purchase a home. All of this could take as little as a day or even as much as a few weeks. Furthermore, this is really only the beginning of the process.
A buyer is still facing a process that could take one to two months. I found an article in MySA.com which addresses this process very well.
For 25-year-old Terrell Mumford, buying his first house in far Northwest San Antonio has been a big milestone in his young life.
But the process before the closing on his newly built house proved to be a bigger task than he imagined. The pre-qualifying procedure was a cinch, he said, but it didn’t leave him prepared for closing.
When he actually applied for his mortgage, the lender discovered some credit issues, and Mumford had to quickly come up with $1,600 quickly to clean up his credit before he could close.
For most home buyers, pre-qualifying for a home loan and signing a contract are huge steps in the process, but this is just the beginning of in what needs to take place before the closing.
Many buyers don’t realize that it’s this waiting period that can sometimes make or break the deal. This is the time when re lenders try to complete the financial package; the title company begins their research; surveys and appraisals are ordered; and buyers order home inspections and obtain homeowners insurance.
Anything going wrong at any of these stages could mean a delay, if not a broken deal.
Now it should be a little clearer, that buying a home can take some time. There are a number of things that can go wrong which might sour the whole deal or at the very least drag it out for an extended period of time. The answer to the question of how long might it take to buy a home does not have a clear answer simply because there are too many factors that can affect the process. It is only important for the buyer to recognize that it is not necessarily a quick process. Make sure to plan ahead, and give yourself enough time to go through the process without being rushed or stressed. Remember that buying a home should be exciting and fun. Hopefully, when you are done you will feel like Terrell Mumford!

Marketing Your Home To Appeal To A New Class Of Buyers

2008-11-26T13:23:00.000-08:00

I found this article on MySA.com and I wanted to share this with my readers. The article is titled Real estate market is trending toward young, professional, multicultural buyers by Ellen James Martin and was posted on 5/30/2008. In case you do not have time to look it up I copied parts of the article that I found to be very interesting.
The article starts with this excerp:
When Michael Lee looks at the housing market, he sees a major transformation under way, with positive results. Young professionals - many first-time buyers from second-generation American families - soon will start acquiring the spacious properties older people want to liquidate. “A huge infusion of younger buyers - well over half from immigrant families - will begin entering the market in the next couple of years,” says Lee, a veteran real estate broker and author of “Opening Doors: Selling to Multicultural Real Estate Customers.”
I found this information to be very interesting especially if you are in a large home and would like to downsize. Ellen then goes on to offer some helpful tips for helping you make your hme more salable. These are great tips for anyone looking to sell not just seniors or people with large homes. I would recommend that if you are considering selling your home you read the following excerpt:
However, as Nash notes, the home sellers most likely to capture the attention of young buyers are proactive in the way they make their property appealing to this age group. Here are several pointers:
Never price your place over neighborhood values.
Along with their younger brothers and sisters, those in their late 20s and 30s are extremely adept at using the Internet as a tool to navigate through life. So chances are they’ll develop a knowledge base on home values in any area where they’re searching, making them highly attuned to overpricing.
It’s a truism in real estate that those who overreach on price at the beginning of a listing ultimately are punished. Usually their homes languish unsold for months before they must take a deep discount, yielding less than they could have gotten if they’d priced correctly from the outset.
Purge your place of older-generation items.
Do you remember visiting your grandparents’ home as a kid? Can you recall how dated their furnishings seemed? If so, you can imagine how young people might perceive the decor of a home where you’ve lived for a long while.
Before you and your listing agent attempt to market your place to the younger crowd, Lee urges you to “empty the home of any furniture you don’t absolutely need. Put the rest in a storage locker.”
The first items to go, he says, should be upholstered pieces you’ve owned for years, such as an overstuffed recliner. In addition, he recommends that you remove boxy dining room or master bedroom suites that crowd the rooms they occupy. Also, take away all those family photos, especially the ones showing your offspring graduating from school or getting married.
Unsheathe your windows.
Unlike many older homeowners - who’ve often spent hundreds of dollars on traditional, lined draperies - younger buyers like minimal coverage for their windows.
“Remove your drapes and let the light pour in. This will definitely help you sell,” Lee says, adding that “less is more when it comes to window treatments.”
Homeowners who feel uncomfortable leaving their windows uncovered during the selling period - especially bedroom windows - can substitute inexpensive light blinds for draperies.
Remove carpeting if you have hardwood floors beneath.
Wall-to-wall carpeting was the favorite choice of generations of Americans whose homes were built after World War II. And home builders still install carpeting in many new properties because it’s one of the least expensive ways to finish flooring.
But home buyers of all ages - and especially young people - now express a definite preference for hardwood floors. They’d much rather use area rugs than wall-to-wall carpeting, according to Lee.
It’s rarely worth the expenditure for home sellers to install new hardwood flooring in a property with wall-to-wall carpeting. However, Lee suggests removing carpeting if you already have hardwood beneath.
Neutralize your wall coverings.
Home buyers of all ages are repelled by dated wallpaper and the bright interior paint tones Lee calls “saturation colors.”
He strongly advises you to repaint your walls in light, trendy neutrals, such as off-white or the slightest hint of sea green. Want color ideas for your walls and accent items? Go to the sort of home decor stores young people favor, such as Pottery Barn, Crate and Barrel and Ikea.
Market your place as a “green” home.
Are you selling a nearly new home with energy-saving features such as extra insulation, double-pane windows or high-efficiency appliances? Or have you retrofitted an older home with these features? If so, Lee says you and your listing agent should be sure to highlight these items in your marketing materials.
“Most younger buyers like the idea of owning as big a house as they can afford. But they’re also very aware of their energy costs and like to think of themselves as eco-friendly,” Lee says.
If you have a chance you should check out this article. Of course, your local Realtor should be able to give you a lot of this advice. We can also help you figure out what the best price for your home might be. It is critical for most home sellers to get the maximum dollar for their home in an efficient amount of time with the least amount of inconvenience. A good Realtor can help you do this.

Can’t Save At The Pump? Then Save At Home!

2008-11-22T13:23:00.000-08:00

Here in San Antonio, we are still paying less than most everywhere else in the nation. So does anyone feel the same as I do that $3.59 per gallon is still TOO MUCH! The bad news is these prices are probably not going to go down anytime soon. In fact with the approach of summer and rising oil prices, it is probably only going to get worse. Well unfortunately there is absolutely no advice I can give you to help with the ridiculous price of gas, other than to tell you to stay home and don't drive anywhere. The good news is I have picked up some useful tips that I want to share about how to save energy and money at home.
Here are 10 tips that families can do to reduce energy use.

Top 10 Things Families Can Do to Reduce Energy Use

Top 10 Things Families Can Do
to Reduce Energy Use

1. Replace all incandescent bulbs with compact fluorescent bulbs.

2. Replace all gasoline-powered lawn equipment with human-powered or

electric-powered lawn equipment.

3. Replace air conditioning / heating filters regularly with a filter that has

a MERV 11 rating or higher.

4. Always choose Energy Star labeled appliances.

5. Improve your roof by installing light-colored, durable materials and by

adding insulation.

6. Don't waste car trips. Combine necessary errands into fewer trips.

7. Install weather stripping, and seal cracks around windows and other

wall penetrations.

8. Lower the thermostat on your water heater.

9. Except for refrigerators and freezers that keep food cold, unplug

appliances when they are not being used.

10. Support CPS Energy's Peaksaver Program which utilizes programmable

thermostats.
There are other ways to reduce energy use and save money at home. You could go to the following website http://www.hometuneup.com/ and find out which energy improvements will save more than they cost. The goal of this site is to help someone who lives in an older home find ways to save energy and money, since not all of us can go out and buy that brand new Energy Star home. You could also check out this website http://www.energyguide.com/. I had a very educational experience at this site. The site will lead you through several detailed questions about your home, and then explain how your energy is being used and how you might be able to save some. By the way, I can introduce you to a very good builder who is surpassing all of the Energy Star requirements and building one of the "Greenest" homes I have ever seen if you are looking to buy a new energy efficient home.
All of these tips could help you save money and energy at your home. Besides putting some money back in your pocket when you are paying lower bills, you will also be contributing to helping the environment. I believe the term is reducing your CO2 footprint. I will be honest and say that I have not ever really stressed about taking care of the environment (I mean I don't want my children to grow up in a polluted world), but how much of an impact can I really make. This just seems like a win-win for me and everyone else.

Looking For A Qualified Buyer

2008-11-18T13:24:00.000-08:00

In my journey as a Real Estate Agent I have done many listing presentations. Some of the home owners I have met with have tried to sell their homes themselves. To Realtors these folks are known as FSBO’s (pronounced Fizzzzbos). It is a myth that Realtors do not like FSBO’s. FSBO’s are an integral part of our market here in San Antonio. Some people who put their home on the market themselves are successful. Which is great because it attests to what a wonderful strong market we have here in San Antonio. Another great aspect of having FSBO’s is that they help keep the market price stable. Statistics from the National Association of Realtors show that eventually an owner who is trying to sell for themself will hire a Realtor or change their plans all together. Therefore Realtors have an opportunity to market themselves to an audience that they know will eventually be looking for our services. Unfortunately, most people are not succesful in selling their home themself. The reason for this is that they do not have enough market exposure. They do not know where to find a qualified buyer. This is the same reason that most other home owners hire a Realtor.
Let’s take a look at where you can reach qualified buyers.
One source for finding qualified buyers is by holding Open Houses. 1 out of every 4 buyers do go out and visit open houses. The problem here is that very few of these Open House Attendees actually buy the house they visit. They are just looking. Furthermore, they may not even be qualified to purchase the Open House they are looking at. Realtors hold Open Houses to develope a relationship with these attendees and gain the Realtor an opportunity to represent them.
The next source for finding buyers is to advertise in the print media. Adds in the paper and Real Estate magazines are proving to be very ineffective as well. Realtors still use them for the same reason as above to develope buyer clients.
Another source is to send mail outs marketing your home. Sending out mail outs to the surrounding area might not trigger the person who it was sent to. But they may have a relative or friend who is looking to move into their area. This can get expensive, especially if you send out more that one piece of mail.
There is advertising on the Internet. This is turning into a fantastic source since 80% of all of todays buyers do look online for their future home purchase. The problem here is making sure that you have maximum exposure on the Internet. This may be hard for the individual to do.
One of the best sources is still your local Realtor. Realtors are using the Multiple Listing Service to help their qualified buyers find the perfect home for their needs. Also, buyers have learned that to use a Realtor is the best way to protect their interests.
These are just a few of the sources that you can use to find a qualified buyer. Remember that Realtors are working full time and talking real estate everywhere. The other key here is something that I have not stressed enough yet. You as a seller only want qualified buyers. Having a contract to sell your home to someone who is not qualified to buy it will serve no purpose for you. You only need one qualified buyer in order to sell your home. Where to find that buyer is the big question. Hiring a Realtor to help you sell your home will give you the greatest number of sources for finding that one qualified buyer. Even us Realtors don’t know where that buyer is going to come from. This why we use as many sources as we can to find the qualified buyer.

What Kind Of Realtor Is Best For You?

2008-11-14T13:26:00.000-08:00

Are you getting ready to buy a home? This is one of the most important decisions financially, and emotionally that you will make. Many people might think that cost is the primary element in purchasing a home. I do not believe this is true. Don’t get me wrong, price is an extremely important factor, but I believe that emotions play an equally important role. It is so important that you find a realtor that shares your concerns, your excitement, and that understands exactly what your desires and needs are.
Do you need a realtor who has been in the business for a long time? A long term veteran offers a lot of experience. The experienced veteran has seen many different types of homes, seen the market go through ups and downs, and completed successfully many real estate transactions. There are some negatives to using a veteran as well. The veteran may be set in their ways. They may not take advantage of some of the newer technologies or techniques which might benefit you. In real estate, experienced agents have less requirements made of them for continuing education.
Do you need a new agent? A new agent has recently completed his or her education. The knowledge of this agent is going to be fresher and more current. Another attribute of this agent is that they do not have a large clientele list yet, so they can focus on you and your needs much better. The negatives of a new agent are fairly obvious. They have not experienced that much in the industry. The newer agent tends to be more tentative because they are not as comfortable yet. Finally, the newer agent has fewer contacts in the industry.
Maybe it is better to find a technological agent. These agents are on the cutting edge of where real estate is headed. 80% of all buyers look on the Internet for their home first. However, do these agents have good people skills? Are they good negotiators?
An agent who specializes in the legal and contract aspects of real estate might appeal to you. This is good for protecting your interests and making sure you are protected in the most valuable purchase you will make. But does this agent know how to find the home you want? Or can they negotiate the best deal for you?
There are social butterfly agents. These agents know a lot of people and have seen a lot of properties out there in the market. They probably have a lot of clients and listings. Unfortunately, will they be giving you all of the attention that you need.
These are just a few of the different types of agents that are out there. You may be referred to an agent by a friend or family member. This is great as long as you have the same types of needs as the person who referred them to you. I would recommend that you interview a few agents and figure out what qualities are important to you. Maybe your ideal realtor is a nice blend of all of the above. The only person who will know which realtor is best for you is you.
The important thing here is to remember that buying a home can be very emotionally charged and stressful. There are many steps to the process and a lot of things that can go wrong. It is important that you have a realtor that you like and trust. Someone who can advice you, and guide you comfortably through the process. Please remember Realtors are here to make your home buying experience fun and exciting, and hopefully eliminate as many of your worries as possible.