San Antonio's Rockstar Turned Realtor®

San Antonio home buyers can search without registration.

I made the decision awhile ago to remove all registration from my San Antonio real estate search page on RErockstar.com.  Real estate agents have varying opinions on these sorts of decisions, but I thought this was the best way to provide a service to San Antonio residents looking for homes.

Many real estate search sites have some form of registration, whether forced or what me often call "nagging" (where the site reminds you to register every so often, but allows you to continue even if you don't).

Why not require registration for a real estate search site?

For me, the question came up in a discussion with some fellow agents.  I had tried full registration and even the nag option, but always was slightly uncomfortable with both.  When I've been looking for homes in the past for myself, I was always quick to click off a site that was asking for registration.  When I moved to San Antonio, I searched on sites without registration, but when I was ready to commit, I then performed a search for real estate agents.

When I found a Realtor® I liked and felt I was comfortable with, then I moved over to his website's real estate search as well as received emails from them about houses I might not have seen.  Through that combination of efforts, the three of us (my wife included) were able to well define what we were looking for in a home and we were able to purchase one over the course of a weekend of looking.

So go ahead, search to your heart's delight.

My San Antonio real estate search page is free for all to use with no required registration.  I think you'll find it very easy to use and a great tool to help you find your next home in San Antonio.  If you have questions, feel free to contact me and I can help you set up your searches.  Take it for a test drive and come back again and again.  When you're ready to get serious about your search, give me a call and let's sit down and discuss your needs...then the fun begins.

photo courtesy of JohnHallAssociates

Frank And Sally Explain Real Estate: Episode 2

Sally is one busy Realtor®.

Thanks to her talk with Frank about the First Time Home Buyer Tax Credit last week, Sally has picked up a new client, Frank's brother Bob.  Bob is looking to purchase a home soon, so he and Sally sit down to chat as Bob has a few questions about home buying.  Sally explains some of the basics in the home buying process and soon they will be off looking at homes for Bob.

Bob has been generous enough to allow us to sit in on his interactions with Sally during the home buying process.  Although all information passed between client and agent is covered by confidentiality, Bob doesn't mind us all listening in.

If you'd like to use this video, just click on the video and locate the "Embed" text box on that page. Select all of the text in this box (it is not automatic like many video sites), copy, and paste it into the HTML editor...that's all there is to it.  All I ask is that you attribute it back to me and RErockstar.com.

Bob, Frank, and Sally are fictional characters who do not represent any persons living, dead, or animated.  Sally is not technically licensed in any state other than the virtual world, but her real estate knowledge is based on Texas real estate (I taught her everything she knows).

Bob wears track suits a little too often, but he's just trying to be comfortable and ready for a quick jog whenever the mood strikes him.  Sally wears the same color suit everyday, but we promise you they're clean.

Frank And Sally Explain Real Estate: Episode 1

Meet Frank and his agent, Sally.

In trying to come up with a simple breakdown of the First Time Home Buyer Tax Credit, I thought that video would be the answer.  Since I've done a few for the previous tax credit, I wanted to find a new way to use video to explain it all.  Enter Frank and Sally.  In this video, Frank's agent Sally, helps him understand the basics of the First Time Home Buyer Tax Credit.  In the future, Frank and Sally will be providing some much needed help to me, so that I might take some time off from blogging when they're able to pick up the slack.

If you'd like to use this video, just click on the video and locate the "Embed" text box on that page. Copy and paste...that's all there is to it.  All I ask is that you attribute it back to me and RErockstar.com.

Frank and Sally are fictional characters who do not represent any persons living, dead, or animated.  Sally is not technically licensed in any state other than the virtual world, but her real estate knowledge is based on Texas real estate (I taught her everything I know).  Frank likes Metallica, but Sally is more of an easy-listening kind of gal.

Heed this advice - it could save you a lot of money.

Claudette couldn't be more correct in her assessment of why having an inspection done during construction is crucial.  One thing I notice is that many buyers of newly constructed homes are looking to save a little money as they are spending a large sum today, for a house they can live in tomorrow. 

Which costs more: a stage-by-stage inspection or finding out the foundation guys didn't let your foundation cure properly?, an electrician who had a "few too many" the night before forgot to cap a wire and it didn't get caught by the building inspector (who inspects thousands of these exact same homes and sometimes doesn't do much more than a quick walk-through)...sheet rock goes up and that loose wire burns your home down one night while you're out?, or (and this happens often enough that it shocks me) while insulating the exterior walls of your home, someone "forgets" to do one of the walls.  Years later while you're replacing the siding you realize why you electric bills were so high.

These little missteps can cost you big dollars down the road.  Even the best builders make mistakes.  Having a stage-by-stage inspection done by a qualified inspector who works for you (and not the builder) is crucial to having the best home you can have.

Builders do inspections in stages too, but remember those inspectors (although meant to be impartial) do these all day for the builder - they are on the builder's payroll.  They are not looking for the long term business, because they already have that with the builder.  Much like a real estate agent, a good inspector wants your business today and tomorrow, so they should be doing an amazing job today, so you'll think of them in the future when you buy another home.

Let me sum it up for everyone:

Do not rely on a builder's inspections.  Hire an inspector and tell them you want a stage-by-stage inspection of your new home as it is being built.

If you're a home buyer in San Antonio and are thinking about new construction, call or email me and I will be happy to give you the names of several qualified inspectors to choose from.

Note: I typically turn off comments on re-blogged posts from other authors, but in this case I am leaving it open to comments in case anyone has further questions about inspecting a new home or inspectors in San Antonio and surrounding areas.

It's a common thing.

Recently SarahGray Lamm wrote a post titled, "ADVICE NEEDED: Blogging Works. Now What..."  The basic premise of the post was how to handle the buyer who calls and says "I need to see this house right now."  Not a client, but someone you've never met before.  Every Realtor® I know gets these calls and everyone I know handles them a little differently, but the outcome is typically the same.  I'm hoping to help San Antonio home buyers understand why many agents won't show the home on short notice.

Time Management

To put it simply, we as agents need to manage our time.  We don't sit around lounging in the office just waiting for the next phone call to come in.  If we did, we'd all be broke.  With the internet and cell phones we are much more accessible, but we're not necessarily free at the moment we take that call.  We have a daily dose of inspections, paperwork, showings, closings, meetings, prospecting (the act of finding new clients), and the usual things - dinner, family time, rest, etc.  Agents have schedules to keep.  Even occasionally, I am free at the moment, but know that if I go show houses right this moment, I will miss my next appointment.  Time management is a huge part of our daily lives.

Qualifying Buyers.

I know a lot of people that want to buy a house don't like this step.  I've had a prospective client ask me "What does it matter to you if I'm not pre-approved, I know I can get the loan."  I find this one of the hardest things for a prospective client to deal with.  They often feel we are calling them into question - almost as if we were saying "That's great, but I don't trust you."  Because we don't know each other yet, there isn't a ton of trust between the two of us.  We have to build that overtime.  There's a certain amount that we must take as a leap of faith and I am fine with that.  But sitting down and qualifying a buyer isn't just about a loan, it's about getting to know the prospective client (and you getting to know your prospective agent) and getting to know what their goals our in buying a home.  We want to help you find the right home, not just any home.

Paperwork.

If you like what you're hearing and you'd like to work with me as your San Antonio real estate agent, there is some paperwork we should get out of the way now.  Here in San Antonio we use a Residential Buyer/Tenant Representation Agreement.  It lays out the rules of our work together and defines our relationship as that of buyer and agent.  Making someone your agent creates a situation that allows us to offer you our advice and opinions and binds us to work for you and you to work with us.  (I think I'll write an upcoming post on the Buyer Representation Agreement).

Safety.

Let's face it, there are some strange people in this world and there more than a couple of stories about agents going to a showing and being attacked.  I'm sure you're not a vicious killer, but let's meet up first just in case.

Experience.

As an agent that started about a year and a half ago in the San Antonio real estate business, I know new agents.  I even write about it at AgentGenius.  I'm not here to say they're bad agents, I mean, we all have to start somewhere.  What I do know is that these are the agents that will typically jump at any chance to go on a showing.  Why?  Because they're hungry.  They have little to no business and will do anything to get more.  What usually happens?  They wind up chasing their tails and not selling any homes anyway.  I know because I've been there.  I spent my first few months running after everyone and selling nothing.  As we mature a bit as agents we learn more about the other factors I've mentioned and we start practicing "smart" real estate in order to build our businesses and grow our client base.

photo courtesy of TheTruthAbout...

this is not the blogger know as Molly, but rather my old cat that shared the same name

Meet Molly.

I was passing through the featured posts tonight when I came across a post by SarahGray Lamm.  If you haven't read it, I've re-blogged it here for your pleasure.  It's actually a post about a blog.  A blog by Molly.  In it she speaks about buying a home - from a home buyer's perspective.  Take a few minutes read the post about her experiences, but while you're there, comb through the rest of the blog.  It's a personal blog about all sorts of things.  Perhaps you'll have something new to add to your feed reader when you're done.

Enjoy.

to view larger version, click the image above

First, a few notes.  You may notice that I've opted to black out many of the figures and company names in the above image.  In regards to confidentiality I felt it necessary to do so to protect the people involved.  Overall, the message stays the same without giving too much information and exposing my clients, the lender, or the other agent and their clients involved in the transaction.  I have also highlighted a few key things - Borrower's column, Seller's column, and the "Items Payable in Connection with Loan" section.  I will dissect these in my post, but wanted you to notice them now.  You may also notice that my hand is very shaky when drawing lines with Gimp (a open-source photo tool similar to Adobe Photoshop).

The HUD-1 Settlement Statement.

The HUD-1 Settlement Statement contains a list of all the money passed around during a real estate transaction.  Simply put, it is the official accounting of the sale and purchase of a home.  It is required reading at the closing table and your agent should be aware of what's on it to make sure everything looks correct.  They are often a bit confusing at first, but after you've seen a few of them or had them explained they suddenly begin to make sense.

The above HUD-1 Settlement Statement is from a recent transaction where I represented the buyer.  It is only a small piece of the statement in order to illustrate a point that often confuses many buyers and sellers.  As I represented the buyer in the transaction, they had few questions about this section of the statement, because as you will see, all of the charges appear in the seller's column.

The red-highlighted section is for "Items Payable in Connection with Loan" (Section 800) - these are typically the lender's charges for giving you the loan.  Since the buyer is taking out the loan, the lender charges them with the various charges such as Loan Origination Fee, Underwriting Fee, pulling a Credit Report and more (the 900 section on the form covers thing requires by the lender to be paid in advance such as taxes, insurance, and interest).

Why is the seller being charged for the buyer's loan costs?

Of course the loan costs should be in the buyer's column (blue-highlighted) and not in the seller's column (green-highlighted).  Right?  Well, not exactly.  In this particular transaction, we had asked the seller to contribute some money to the buyer's closing costs (negotiated in the contract under Paragraph 12. A (1) (b) - Settlement and Other Expenses (see image below)).  This is a common negotiation in a real estate transaction in order to help lower the initial cost of getting into a home for a buyer and helping the seller get their home sold.  It is very common here in San Antonio for seller's to contribute to the closing costs of the buyer (I'd say 98% of the contracts I have seen involve some amount of seller paid closing costs).

Because the seller in this particular contract had agreed to pay part of the buyer's closing costs, we have to account for this money in the HUD-1 Settlement Statement.  Unfortunately, the title company (who prepares the document) are not allowed to enter it as a lump sum. (which would make things very easy to see and understand on the statement)  Because of this, they have to find ways to show that the money was distributed by parsing it out through several different charges.  Let's say a buyer is receiving $2,000 in closing costs from the seller.  The escrow officer must find $2,000 of charges to even things out.  Occasionally you will even see small charges being made of just a few cents in order to balance everything out to the last penny.  As you can see from Paragraph 12 of the Texas Real Estate Commission's One To Four Family Residential Contract (Resale), the order in which the expense must be paid are laid out (Paragraph 12 A. (1) (b)) as well as what the buyer's expenses are (Paragraph 12 A. (2) (a) and (b)).

To make this parsing of costs a little more difficult, the lender must approve the HUD-1 Settlement Statement.  Each lender can determine what is allowable or not-allowable as far as who pays for what.  This requires the lender and the escrow officer to communicate clearly what charges they can put in which column.  I have seen a lender reject a HUD-1 because they didn't want a charge in one column or another and the escrow officer had to go back and find a new place to deal with the remaining charge.

So while it may look a little strange to see the buyer's loan costs in the seller's column, it is actually all fairly balanced out.  When you receive your HUD-1 Settlement Statement, you should speak with your Realtor® immediately to be sure you go through all the charges, check the math, and determine that it all adds up.

This is a post in a series on real estate education to help define some of the finer points of contracts and the process of buying and selling real estate in San Antonio, Texas (it's Texas real estate, so if you live outside of Texas, these articles may not apply to you).  You can read the previous posts; "Realtor® Speak 102: What do I need to bring to closing?," "Realtor® Speak 102: Who's paying for the survey?," "Realtor® Speak 102: Does that come with the house?," and "Realtor® Speak 102: What if the house burns down?" or check out my ongoing series Realtor® Speak 101 at RErockstar.com.

photo courtesy of Menage a Moi

I was preparing for a closing yesterday with a client...

My client is a First Time Home Buyer and we've had some interesting moments looking for homes.  We've seen good and we've seen bad.  As we went through the house on our final walk-through to prepare for the closing the next day, the client had quite a few questions.  This particular client really had a desire to understand what was going on as he was purchasing a home and I had a blast with him.  I like questions.  It gives me a chance to talk about something I know well and to help someone grasp concepts that I once didn't understand either.  I was a first time home buyer once too.

His last question to me, as we were getting in our cars, was a simple one.  What do I need to bring to closing?  He had already received a list of items from the title company, but he wanted to make sure.  I answered the question, parroting back what the title company had said; a drivers license (or other form of photo ID) and a cashier's check in the amount given to him by the title company.

Pretty simple list really.  Of course, I added, "A well-rested hand."  Closings are one signature after another and it can actually become a bit tiresome after awhile.  We laughed, got in our cars and drove off.

On my way home, I thought of something else I should have told him - especially based on what I knew about him.  Bring your questions and concerns.  Closing time is the point where most people shut off and sign the papers.  You're so close at this point, I've seen people glaze over and just sign whatever was put in front of them.

Not this client...

This client wanted to understand the process.  Wanted to know what he was signing.  He listened to every word and occasionally paused to ask a question or ask if he was correct the way he understood something in front of him.  I loved watching it and the closer (Sherri Reidel of Independence Title) was great at explaining everything.  We were also joined by the client's lender, Scott Cummins of Cornerstone Mortgage, who is a great guy to work with.  What made this so interesting to me, was the interaction that happened at the table.  Instead of just signing everything in front of him, the client asked questions, we all shared stories from our experiences, and we all bantered back and forth about real estate and real estate theory.  It actually became a discussion and not just a closing.

My client commented on how great it was to have both of us there and I definitely think he learned more about the real estate process than most people do when closing.  To me, that's an amazing thing.  Education.  A smarter consumer.  A better relationship.  Next time you go to closing - go with an open mind and a desire to learn.  You'll walk away better prepared for the day you sell the home and buy a new one.

Special thanks to Sherri and Scott for being a great team to work with and to my client for helping me remember my first time buying a home and how overwhelming it was.  I learned a lot today too.  Tomorrow, I am better prepared to take on new clients than I was the day before.

This is a post in a series on real estate education to help define some of the finer points of contracts and the process of buying and selling real estate in San Antonio, Texas (it's Texas real estate, so if you live outside of Texas, these articles may not apply to you).  You can read the previous posts; "Realtor® Speak 102: What are all these charges on my HUD-1 Settlement Statement?," "Realtor® Speak 102: Who's paying for the survey?," "Realtor® Speak 102: Does that come with the house?," and "Realtor® Speak 102: What if the house burns down?" or check out my ongoing series Realtor® Speak 101 at RErockstar.com.

photo courtesy of blmurch

What is a survey?

First let's get the concept of "survey" out of the way.  Merriam-Webster defines survey as "2 : to determine and delineate the form, extent, and position of (as a tract of land) by taking linear and angular measurements and by applying the principles of geometry and trigonometry."  Think of it as a map of your property marking property lines, easements, buildings, and setbacks.  It shows the truest picture of what the layout of your land is and defines what you actually own when it comes to a piece of land.

Alright, so who's paying for it?

Like most things in a Texas contract to purchase a one to four family residence, the cost of a survey is determined during the offer and negotiations on a new home.  There are several checkboxes that determine who pays for the survey.  On more than one occasion I have seen an experienced agent check a box incorrectly which later cost their client money.

Paragraph 6. C (2) and (3).

Let's cover (2) and (3) first as they are very simple.  The blank spot in both is for a number - the number of days after the effective date of the contract with which a buyer or seller must obtain a new survey.  Pretty straightforward.  (2) is for the buyer paying for the new survey and (3) is for the seller paying for the new survey (told you it was simple).

Paragraph 6. C (1).

This is where I see mistakes most often.  This section lays out the rules and is typically used when a survey already exists on the home and both parties would prefer to use the older survey for some cost savings.  Your agent and you (the buyer) should be looking at the existing survey though, if any major changes have been made (new pool, deck, shed, fence lines, etc.) you'll want a new survey.  This will help you when you sell the house someday and also make sure that you know the official layout of your land and home.

If both parties are going to try to use the older survey, caution should be taken by the agents (as I said I see a lot of mistakes made here).  The first section of (1) is for the number of days for the seller to present the survey to the the buyer and the title company.  The set of checkboxes who (buyer or seller) will pay for the survey if it is deemed not acceptable by the title company or the buyer's lender.  It clearly spells out that they (buyer or seller) must obtain it no later than three day prior to the closing date.

Here's where the mistake is made.  The section in bold (in the contract, bold below indicates my emphasis) that reads:

If Seller fails to furnish the existing survey or Affidavit within the time prescribed, Buyer shall obtain a new survey at Seller's expense no later than 3 days prior to the Closing Date.

I have seen several times where we thought there was a survey and checked off C (1) and asked for the seller to pay for the survey.  During negotiations, the seller's agent suggested the buyer pay for the survey and we agreed.  However, when we received the signed contract back, they had merely crossed off the seller's checkbox and checked the buyer's checkbox.  This is fine, if the seller does indeed have a survey, but if they do not or forget to supply one in the prescribed time, the last sentence becomes the most important one in C (1).  Because the seller failed to provide a survey (whether they didn't have one or didn't perform their duties in a timely manner), the buyer now has the right to order one and have it conducted - and the seller has to pay for it.

Your agent should be aware of this, but as I've said previously, I have seen it happen more than once (when I was on the buyer's side of the transaction - it didn't make the seller very happy with their agent, but my buyer loved me for it).  Knowing your contracts can really pay off for your clients and really should be a no-brainer for an agent.

This is a post in a series on real estate education to help define some of the finer points of contracts and the process of buying and selling real estate in San Antonio, Texas (it's Texas real estate, so if you live outside of Texas, these articles may not apply to you).  You can read the previous posts; "Realtor® Speak 102: What are all these charges on my HUD-1 Settlement Statement?," "Realtor® Speak 102: What do I need to bring to closing?," "Realtor® Speak 102: Does that come with the house?," and "Realtor® Speak 102: What if the house burns down?" or check out my ongoing series Realtor® Speak 101 at RErockstar.com.

photo courtest of dvs

The roof, the roof, the roof is on fire. *

You and your agent have your offer accepted, you've done your inspections and the title company and lender are doing their work to get your home closed in a few short days.  You're about as excited as you can be and can't wait.  By this time next week you'll be putting the keys into the front door of your new home at 123 Fake Street.  Life is good.  In anticipation of your new address, you decide to swing by the house and take a look at the front yard to plan out your new flower beds under the windows.  As you pull up at the curb, your jaw drops in horror.

Your new home is engulfed in flames.

Your dream of home ownership is now a nightmare.  As the firetrucks scream to the home a million things go through your head, but one thing is louder than everything else and helps drown out the noise of the fire engines. What do I do now?

Welcome to Realtor® Speak 102.

This scenario is horrifying and wouldn't be a lot of fun to live through, but it does happen.  I've never had it happen to any of my clients and I hope to keep it that way, but in case it ever does, I'm prepared to deal with the consequences.  Thanks to the Texas Real Estate Commission's One To Four Family Residential Contract (Resale), we have a plan of action and a way to deal with this scenario when buying or selling a home.  It's called Casualty Loss and it's in Paragraph 14.

With this one simple paragraph, your problems are solved.  Casualty Loss gives you a few remedies in a situation where your new home is damaged, destroyed, or decimated before you close.  Here's a basic look at your options:

• Have the seller restore the home to its previous condition by the closing date.  You made an offer on the home in it's previous condition, so it must be restored to that state.
• If the seller fails to return it to its previous condition due to factors beyond their control, you (the buyer) may:
  • Terminate the contract and keep your earnest money
  • Allow the seller up to 15 extra days to fix the problem (and the closing date automatically is extended with it).
  • Accept the property in its damaged state and have the seller assign to you any of the proceeds from their insurance claim (and they would pay their deductible at closing via a credit to you).

No one wants this to happen to them, but it's nice to know the "what if" of the situation and that there are remedies for you and your family if this does ever occur.  I hope to never have to invoke this paragraph in one of my transactions, but I know that if I'm your San Antonio real estate agent, I've got you covered thanks to our promulgated forms.

* Hope those of you out there that just read that line and started singing along enjoyed the reference.

This is a post in a series on real estate education to help define some of the finer points of contracts and the process of buying and selling real estate in San Antonio, Texas (it's Texas real estate, so if you live outside of Texas, these articles may not apply to you).  You can read the previous posts; "Realtor® Speak 102: What are all these charges on my HUD-1 Settlement Statement?," "Realtor® Speak 102: What do I need to bring to closing?," "Realtor® Speak 102: Who's paying for the survey?," and "Realtor® Speak 102: Does that come with the house?" or check out my ongoing series Realtor® Speak 101 at RErockstar.com.