Get A Free Water-Efficient Toilet From SAWS
March 21, 2009
Free Water-Efficient Toilet
Through the Kick the Can program, SAWS will give you up to two new water-efficient toilets absolutely free. And it’s so simple – SAWS has already found high-quality water saving toilets for you. And did we mention they’re free?
Who’s eligible? |
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This program is offered to SAWS residential water customers to encourage replacing old toilets with a new water-efficient toilet. As a customer, you can receive up to two water-efficient toilets per household from SAWS—FREE!
How does this option work?
| Step 1) | Complete the attached Kick the Can Toilet application. SAWS residential accounts are eligible. If eligible, up to two toilets may be received. If you require a handicap toilet, please indicate this on the application and provide a letter from your doctor stating your request. |
| Step 2) | Submit a completed application to SAWS at: SAWS Kick the Can Program P. O. Box 2449 San Antonio, TX 78298-2449 |
| Step 3) | SAWS will mail qualified participants a Residential Toilet Distribution Voucher for free toilets. Qualified participants are those who have not received a rebate or toilet from SAWS in the past. All vouchers will have an expiration date indicating when the toilets must be picked up. All toilets must be picked up before the expiration date (30 days). Toilets are a white, round front and come with a standard toilet seat, wax ring, and a set of bolts to anchor the toilet. |
| Step 4) | Install the new toilet(s) and start saving water and money. |
USDA Texas Rural Home Loan Program
March 19, 2009
The United States Department of Agriculture (USDA) has a rural development program to help make affordable housing available in rural areas (Ex. Boerne, Cibolo, New Braunfels). This program has some key advantages compared to other types of Texas rural home loans. Listed below are some of the key benefits:
USDA Texas Mortgage Program Benefits
- No Down Payment Required
- 100% Financing
- Seller May Pay Your Closing Costs Up To 6%
- No Reserve Requirements
- Very Low Finance Rate At A Fixed Rate
- No Mortgage Insurance Which Reduces Your Monthly Payment
- No Maximum Purchase Limit
- Reasonable Minimum Credit Score
- NOT Just For First-Time Home Buyers
Texas USDA Rural Development Loan Qualifications:
- The property must be in a designated rural area (Ex. Boerne, Cibolo, New Braunfels)
- The property must be for residential use and you must intend to occupy the home as your primary residence
- The value of the land should not be more than 30% of the total property value
- You must NOT already own adequate housing in the area you wish to purchase in
- You must be a US citizen or be a legal permanent resident to the US
- Reasonably good credit is required, especially the most recent year
- Sufficient dependable income is required for the home you wish to buy; generally the home total payment should be no more than 29% of your gross monthly income
- There is an income limit that depends on the county, it is about 115% of the US average
You must NOT have liquid assets of 20% or more of the homes selling price
If you’re NOT currently working with a REALTOR® and are ready to take advantage of this Great Program register below to get started today!
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5 Reasons To Buy Now
March 18, 2009
1. Affordability Is Better Than Ever
According to the National Association of Realtors housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
Home prices in the San Antonio market have remained pretty much flat at $145,100 compared to February 2008 when the median price was $144,900, according to the San Antonio Board of Realtors.
Good news when many other housing markets home prices have fallen as much as 30% (Las Vegas, Miami) just within the last year.
2. Buyer’s Market – You Have A Large Inventory To Choose From
In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures. There was a 7.8-month supply of unsold existing homes in January given that month’s sales pace, according to Texas A&M Real Estate Center.
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture. It’s fair to say that some home sellers have become desperate. Sellers that have had for-sale signs in the yard for the past six months are now motivated to accept a lower offer.
Buyers can now take advantage. Another option is having the seller pay a portion if not all of your closing costs. Which could equal an average of 4 percent of the homes purchase price. That’s $6,000 dollars on a $150,000 dollar home.
3. Builders Are Offering Big Discounts
Home builders are getting even more aggressive with their pricing. In fact, you should start looking at completed new homes first because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances.
Example: D.R. Horton Home located in Alamo Ranch subdivision which is off Culebra Road and Loop 1604. This 2-story home is a 3 Bedroom, 2.5 Bath, 2 Garage and has a total of 1,889 square feet. Originally listed for $181,000, is under contract right now for $159,000. That’s a $22,000 dollar discount!
The Key Is: Walk in with a pre-approval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.
4. Mortgage Rates Are Historically Low
It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac.
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.07%, according to Freddie Mac’s weekly mortgage survey.
But low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, at least a 3.5% down payment and a willingness to document your income in order to qualify for those great rates.
5. You Can Get A Federal Tax Credit
There’s now a federal credit of up to $8,000 for home buyers who haven’t owned a home in at least three years. The credit is available for a limited time (ends December 1, 2009) and does NOT have to be repaid.
That extra cash will come in handy as the average first-time home buyer spends about $6,000 in the first six months of owning a home. We all want new furniture to go with our brand new home.
Waiting for further federal developments, however, might zap a buyer’s negotiating power, as San Antonio home buyers have now shifted into house-hunting mode for the traditional springtime and summer buying season.
If you have reasonably good credit, money for a down payment and can provide documentation of your income for the past 12 months, call me TODAY to take advantage of this great opportunity.
Daniel Gaitan, REALTOR®
Trend Setter Realty
1100 NW Loop 410 Suite # 700
San Antonio, TX 78213
Direct # (210)846-5282
4 Updates For Home Sellers on a Budget
December 13, 2008
Want to sell your home but tight on cash? These quick fixes add the most value for the least money:
1. Paint Your Way to Profits
Painting your home before you put it on the market is one of the cheapest ways to get the highest possible price for your property. But don’t use the same color for the entire house – white walls are dull. Use soft muted colors like pale green or muted beige. They can still be neutral while greatly improving the look and feel of each room. Add white baseboards for additional style.
2. Find a Higher Price Underfoot
If you’ve got hardwood under old carpet, rip up the carpet and refinish the floors. Sanding hardwoods is physically demanding. Make a mistake and you ruin the floor. Hire a pro to sand for $1 to $1.50 a foot and then do your own staining and sealing to save money. When carpet is your only option, buy the best padding. Mid-price carpeting will look and feel fine if the padding below it is thick.
3. Tweak the Front Yard
First impressions make a huge difference. Perspective buyers tend to make up their mind before they even walk into the house. If they don’t like the outside, they’re not going to like the inside. So:
- Trim your shrubs
- Cut your grass
- Place potted flowers at the entryway
- Paint the front door
- Invest in new doorknobs, a mailbox and house numbers
4. Follow the Light
Update old light fixtures in the kitchen, bath and hallways so buyers will see why your home is worth more. Florescent lights and brass are dated. Buyers like brushed nickel, stainless steel or blown-glass style light fixtures. Recessed lighting is also a huge selling point because it brightens up the room and creates a natural-looking light.
You never want to be the last homeowner on the block to remodel. Homebuyers will pass up your property in favor of the one down the street where everything is already updated. Your home will sell slowly and for less money.
If your thinking about selling in today’s market, contact me today to schedule a free Competitive Market Analysis (CMA). Register Below to begin the process:
Four Stages To Becoming A First-Time Homebuyer
October 25, 2008
The Homebuying Process
Buying a home is a complex experience, especially if it’s your first time. We have broken down the process down into four easy-to-understand stages and offers helpful tips and advice for each one.
Stage 1: Evaluate Your Life and Finances
Owning a home is like any major commitment. You need to be mentally and financially ready for it. What stage of life are you in? Are you financially stable? Do you move around a lot?
Before you even look at homes, take a good look at your situation and crunch the numbers to see if this is the right time for you to buy. Just because it’s a buyer’s market doesn’t mean you should buy now. These steps will help you figure out whether you’re ready to own a home.
Step 1: Compare the pros and cons of renting and buying.
Step 2: Create a “Home Wish List.”
Step 3: Calculate a monthly mortgage payment you can afford.
Step 4: Create a budget for monthly homeowner expenses.
Step 5: Check your credit report and improve your credit score.
Step 6: Research the market where you want to buy.
Step 7: Figure out how you will get a down payment and pay closing costs.
Step 8: Start off small. (This is your first home not your dream home.)
Step 9: Know your rights as a homebuyer and borrower.
Stage 2: Shop for a Loan
Once you determine you’re ready for the responsibilities of owning a home, it’s time to find financing. You’ll likely be borrowing thousands of dollars, so shop around for the best interest rates and loan terms to negotiate the best deal. Buying a home involves more than just the sales price. There are fees for every part of the process. Make sure you understand everything you’re paying for.
Step 1: Study your financial picture.
Step 2: Read about the different types of mortgages and check competitive interest rate online. Find out what kind of mortgage is right for you.
Step 3: Now shop for the best mortgage rate and loan terms.
Step 4: Get pre-approved. (You will need a pre-approval letter when your ready to submit an offer.)
Step 5: Look into programs that will save you cash.
Step 6: Research homebuyer assistance programs.
Step 7: Figure out the impact on your taxes.
Step 8: Arrange financing for the home you want to buy and be creative.
Step 9: Protect yourself from falling victim to predatory lenders.
Stage 3: Find a House
Now comes the fun part! You have your home wish list and pre-approval letter, so it’s time to go house hunting. Save the gas money and do some research online first. Read about different neighborhoods and home styles, and browse listings online. Consider getting a buyer’s agent to set up home tours and guide you through the process.
Step 1: Choose a neighborhood.
Step 2: Choose a type of house.
Step 3: See what’s available online.
Step 4: Shop for real estate agent with local knowledge. I would recommend Trend Setter Realty =0)
Step 5: Keep a house-hunting journal.
Step 6: Approach foreclosures with caution.
Step 7: Narrow down your choices and see the houses again.
Step 8: Calculate the home’s market value.
Step 9: Make an offer.
Stage 4: Close the Deal
Unless you made a low-ball offer that offended the seller, expect to negotiate. The key is to find terms you both can agree on. Put them in writing, sign the contract and the closing process begins. During this period, you’ll get an appraisal, title search and exam, home inspection and homeowners insurance. If all goes well, you’ll sign the paperwork and the keys are yours!
Step 1: Finalize the purchase and sale contract.
Step 2: Choose a title company that will research the title and coordinate the closing.
Step 3: Get an appraisal.
Step 4: Get a professional home inspection.
Step 5: Get homeowner’s insurance quotes and pay the premium.
Step 6: Consider home warranty coverage.
Step 7: Do a final walk-through of the house.
Step 8: Review each closing document carefully.
Step 9: Plan your big move!
10 Ways to Make Your Home Sell Faster
September 8, 2008
Simple fixes and staging practices can focus buyers’ attention in the right places and keep them from getting sidetracked by personal items in the home.
Here are some staging suggestions from Deborah Ehrlich-Layne of Staging Plus in Tampa, Fla., Handyman Matters, and HGTV’s The Stagers.
- Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious.
- Pack up the too-personal. Don’t leave toiletries on the counter. Stash family photos.
- Be prepared for snoops. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain.
- Make sure items work properly. Ex. dripping faucets, burned-out light bulbs, and squeaking hinges detract from the home’s appeal.
- Think “white-glove clean.” Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral.
- Make sure the front door is clean and the hardware polished. Power-wash walkways.
- Store furniture that makes rooms feel crowded.
- Show every room for the kind of room it is. Maybe you’ve turned your formal dining room into a home office. Get rid of the desk and computer, and bring back the dining table and chairs.
- Clean your garage. Buyers want to see room available for a car, not stacks and stacks of boxes.
- Spruce up your curb appeal. Potential buyers judge your home before they have even seen the interior. Make this first impression count. Plant flowers, mow the lawn, put out a welcome mat, and make small repairs that you have been putting off.
If you need the assistance of a real estate professional to help sell your home, register below to schedule an appointment with a Trend Setter Realty Realtor.
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First-Time Home Buyer Tax Credit Fact Sheet
August 7, 2008
On July 30, 2008, President Bush signed a major housing bill (H.R. 3221) into law. As part of the housing bill, Congress has created a new, temporary tax credit to provide an incentive for first-time home buyers.
Disclaimer: This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.
Who is Eligible
- The $7,500 tax credit is available for first-time home buyers only.
- The law defines a first-time home buyer as a buyer who has not owned a home during the past three years.
- All U.S. citizens who file taxes are eligible to participate in the program.
Types of Homes that Qualify for the Tax Credit
- All homes, whether single-family, townhomes or condominiums will qualify.
- However, there are several conditions:
- The home must be used as a principal residence, and
- The buyer has not owned a home in the prior three years.
- The Tax Credit includes newly-constructed homes.
Income Limits
- Home buyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if their adjusted gross income (AGI) is less than $75,000.
- For married couples filing a joint return, the income limit doubles to $150,000.
- Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
- Married couples filing jointly who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
- The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples filing jointly with an AGI that exceeds $170,000.
Effective Dates for the Tax Credit
- First-time home buyers would receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008 and before July 1, 2009. To qualify, you must actually close on the sale of the home during this period.
Tax Credit is Refundable
- A refundable credit means that if you pay less than $7,500 in federal income taxes, then the government will write you a check for the difference.
- For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $2,500 payment from the government.
- If you are due to receive a $1,000 tax refund from the government, your refund would grow to $8,500 ($1,000 plus $7,500 from the home buyer tax credit).
- If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 tax returns.
Payback Provisions
- The tax credit is an interest-free loan that must be repaid over 15 years.
- The minimum repayment amount must be 15 equal annual installments. For example, if the credit amount is $7,500, then the home buyer must repay a minimum of $500 each year for 15 years.
- A home buyer must begin repaying the credit two tax years after claiming the credit. For example, if the credit is claimed on the 2008 tax return, repayment of $500 (or less, if the credit amount is less than $7,500) per year begins with the 2010 return.
- If the home owner sells the home for a profit and there is a remaining credit, then the home owner is required to repay the remaining credit during the tax year of the home sale. The amount of the repayment will depend upon the amount of profit from the home sale:
- If the profit on the sale is more than the remaining credit, then the home owner must repay the entire remaining credit.
- If the profit on the sale is less than the remaining credit, then the home owner must repay an amount equal to the profit on the home sale. The remaining credit payback will be forgiven.
- If the home owner sells the home but did not make any profit on the home sale, then the remaining credit payback would be forgiven.
Further information regarding the tax credit may be found at www.federalhousingtaxcredit.com or www.irs.gov.
7 Things Every Home Buyer Should Know
July 24, 2008
1. 6 months ago is ancient history. What your neighbor sold his house for 6 months ago doesn’t matter. What the seller was asking for the house 6 months ago doesn’t matter. What matters is what the market will support today.
2. Don’t worry so much about what you paid for your house. Instead, look at the difference between what you can expect to sell your house for and what it’s going to cost you to buy the new one that you want. I expect you’ll find that those are much more important numbers (unless you end up without any equity in which case you don’t sell).
3. Now is not the time for do-it-yourselfers. When the inventory levels are, depending on property type and area, any where from twice as much as is healthy (single family homes near my hometown) to 750% as much inventory as there should be (condos in Florida from what I’ve heard), you need to find a professional to help you navigate the markets and get your house noticed. I’m not, frankly, just talking about calling the Realtor who sold the house up the street. I’m talking about calling a high caliber professional who knows what it takes and can really give your house the attention that it needs. Realtors who have the knowledge and talent to help you navigate through this market and make wise decisions.
4. Any interest rate that starts with a 6 is a good number. Check out the attached chart. From 1971 to 1998, we did not see any mortgage rates that started with a 6. Frankly, we’ve gotten spoiled in an era of cheap credit and we need to keep things in perspective.
5. There is a Tangible Difference in working with a true mortgage professional. I’m not talking about the difference between a mortgage broker or a mortgage lender at a bank. I’m talking about the difference between someone who can help you navigate the changing environment that we’re in. Read The Tangible Difference and you’ll see what I mean.
6. Don’t buy a house today if you aren’t going to stay there at least 7 years. That’s right, a mortgage lender is telling you that if you don’t have at least a 7 year time frame in mind, you shouldn’t buy a house right now. Why? It’s all about the math. If the market drops another 5% over the next year and then stays the same for two years, it’s going to take 7 years for you to recoup the 5% loss and then build up enough to pay the 6% Realtor’s fees when you sell and make a little profit too. Long term, the value of real estate investments is very solid, but this market has spread things out a bit longer. Note: Texas Real Estate Markets have continue to appreciate and are not losing value like markets in California, Florida, Michigan, etc.
7. It really is a good time to buy a house. If you go into the transaction with the right mindset (long term investment), with a talented group of professionals (Realtor, lender, inspector and accountant) backing you up, and you remain analytical about the financials and keep the emotions from forcing decisions, I firmly believe that you’ll find yourself very glad that you made the move you made. Is it the right time for everyone to buy and sell? Nope, but I have the feeling that there are a lot of people sitting on the sidelines because they are scared of what the mainstream media has done to the portrayal of the markets and are missing out on some great opportunities to move forward and upward.
Written by Tom Vanderwell over at BloodHoundBlog.
Relocating To San Antonio: Top 10 Things Not To Do When Moving
May 18, 2008
1. Don’t rely exclusively on the Internet.
2. Don’t get the price over the phone. Movers can’t see everything through the phone.
3. Don’t take the mover’s word on it. Your estimate should be in writing.
4. Don’t put a deposit down on the move. But do confirm what methods of payment are accepted.
5. Don’t overlook the small print and read all the legal documents called your “Rights and Responsibilities.”
6. Don’t wait to pack. Packing takes the typical homeowner two weeks.
7. Don’t wait to make your moving reservation, especially during the summer.
8. Don’t assume. The American Moving and Storage Association suggests having three surveys performed to give you a good perspective on your move.
9. Don’t try to do it all the last week before you close on your home.
10. Don’t expect exclusive use of a truck. If you’re moving far, you might share a moving truck with another family.
San Antonio Relocating Tips Provided by: Scobey Moving and Storage
Top 25 Biggest Real Estate Mistakes
April 18, 2008
For those buying or selling a home, these helpful tips could help you avoid costly mistakes on one of the biggest investments of your life. The list was compiled by some of the top real estate experts in the field, including brokers; investors; contractors; market experts; buyers; and sellers. You can catch the special episode on the “25 Biggest Real Estate Mistakes” on HGTV.
25. Buying a House for its Decor
Remember that you are buying the house, not the stuff inside of it, so make sure you see beyond the decorations and look at the bones of the home. Focus on the floor plan and the square footage. You also might want to measure the dimensions and graph out how that’s going to work with your current belongings.
24. Not Providing Easy Access for Showings
Make your house easily accessible to potential buyers. If there’s nowhere to park or it’s difficult to get into, buyers may just skip it and look at someone else’s property instead.
23. Not Researching the Neighborhood
It’s absolutely critical that you research the neighborhood before you buy. Check out the area, amenities and the school system to be sure that your address corresponds with the correct school district. Also attend a community meeting, if possible. You’re not just buying a house, you’re buying a piece of that real estate and the land around it.
22. Losing Money With Auctions
While the starting bidding price for a house on auction might be a good deal, it doesn’t mean the final price will be. Make sure that you are very strict with your budget when you are bidding — do not go over your final price because you got wrapped up in the excitement of a bidding war. Another thing to keep in mind is that when you buy a property at auction, you aren’t able to get any of the warranties or guarantees, and you are not able to do a home inspection. Find out if the auctioneer is going to put those charges on top of the sale price as well as if there are any liens on the property. You could be responsible for paying the property taxes on that house you just bought, which could make what looks like a good deal into a really bad deal.
21. Trying to Make the “Hard Sell” While Showing
If you are selling your house, you really shouldn’t be around at the open house. You might want to try and sell the place on all the reasons you think the house is great, but that might not translate to the buyer. If you leave, you allow the buyers to really give unbiased objective feedback to the agent, which is only going to help you in the end.
20. Waiting Until Spring to Sell Your House
Spring is the time of heaviest real estate activity, but that does not mean that people don’t buy houses 365 days of the year. That doesn’t mean you can’t emphasize your home’s seasonal amenities.
19. Treating Real Estate Like the Stock Market
When the real estate market is really hot and is appreciating really fast, people tend to look at it like it’s the stock market. But playing real estate is nothing like the stock market — when you invest in real estate, you really need to take a long-term approach.
18. Failing to Market Your Home in Different Ways
Don’t market your home with just a for-sale sign. Explore other marketing tools as well. Talk to your real estate agent about the marketing that they will do. It’s something that should be set up from the initial signing of a contract with an agent. Some homes have virtual tours and photographs online. If you choose to go that route, don’t forget to include the floor plans. That way, people can see the layout of your home and know that if it it’s right for them.
17. Not Thinking About Resale
When you are decorating and renovating your home, you need to think about what is going to appeal to a broad section of buyers when it comes time to sell it. Buying houses and being in the real estate market is like chess, you always want to look two or three steps ahead in the game.
16. Buying Without Actually Seeing the Property
It’s really easy to buy a house without seeing it because of the Internet and virtual tours, but virtual tours can be deceiving. Plus, it’s really hard to actually get a sense and feel of a home by only looking at it online. You need to actually walk through the place yourself. If that’s just not possible, hire an inspector to go look at the property and provide you with an assessment.
15. Trusting Everything a Real Estate Advertisement Says
Don’t assume every ad is fact. Learn to decipher real estate lingo. For example, cozy means small, and as-is means it’s a fixer-upper. If there are a lot of exclamation points in an ad, it means they are there just to take up room because there is so little to say about the place. Follow the old adage: If it sounds too good to be true, it probably is.
14. Picking the Wrong Real Estate Agent or REALTOR
Treat meetings with agents like a job interview because that’s really how it works — that person is going to be working for you. Talk to your friends who’ve sold houses and had a good experience with their agent, and go to open houses and observe how that agent interacts with other people. Do not choose a Real Estate Agent based on who estimated your home’s value the highest. Just because the Agent told you the numbers you wanted to hear, pricing your home to high could cause your home to sit on the market for months. (See Mistake #2)
13. Not Hiring an Real Estate Agent or REALTOR
There’s a lot more to selling a house than just putting a sign on the front lawn. If you don’t have an agent, you will not get on the multiple-listing service (MLS). That means that other agents are not going to know that your property is for sale. Another thing to consider is if you are willing to show the house each time someone wants to come by and look at it? If you do plan to sell your house on your own, always have a lawyer present at a closing. It’s really important to have someone on your side who understands all the complexities.
12. Buying the Most Expensive Home on the Block
The most expensive house will only depreciate in value over time, rather than appreciate, which is what you want. Also, those houses are often not the first house to sell because they are usually overbuilt to the neighborhood. It’s absolutely critical that you research the neighborhood before you buy to find out what the price point should be.
11. Not Setting a Realistic Budget
Just because the bank pre-qualifies you for a loan amount of $400,000 doesn’t mean you can afford to make that payment every month. Before hitting the streets for a house hunt, you should sit down and make a monthly budget of what you spend every month. Come up with a number that you are comfortable spending on your mortgage payment, aside from those other expenditures. An easy way to do this is to take a third of your gross income and have that figure be the number you spend on the house. It is also a good idea to have six to nine months of mortgage payments in the bank, plus a little extra if you have any repairs that you might need to do.
10. Visiting the House Only Once
It’s important to visit a house more than once because the neighborhood itself may be very different, depending on the day of the week and the time of day. It’s also a good idea to go home and think about it, even sleep on it, before you go back again.
9. Not Being Pro-Active at Closing
The best thing to do when going into a closing is to get all the paperwork ahead of time. All that information should come from a mortgage broker or banker. They have what they call a HUD (Housing and Urban Development) One form that lists out all the charges, and you can legally get it in your hands 24 hours before closing. Schedule the closing for in the morning, so you have a fresh mind and plenty of time to go over everything and ask questions. The final walk-through is another imperative part of the process. You may want to have a home inspector accompany you.
8. Doing Major Renovations/Remodeling Before Selling
Due to construction projects usually being underestimated in time and cost, experts suggest that minor upgrades to the home will bring you a higher return on your investment. While I personally wouldn’t recommend major construction projects as additions or major overhauls, I do believe kitchen and bathroom renovations can help sell a home. It’s important to consult with an expert on these projects to evaluate your options. Often time’s sellers can complete a “cosmetic face lift” that will significantly increase the home’s aesthetics, without the high price tag of a complete remodel. What project returns the biggest value on your money? The answer is enhancing curb appeal.
7. Skipping the Loan Pre-Approval Step
When you are pre-approved, the bank is saying, “we will give you a mortgage of up to this amount, so now all you have to do is find your home.” Some sellers only allow realtors to show their house if someone has a pre-approved letter. That indicates that the shopper really is serious about buying a home.
6. Falling in Love With the First Property You See
Many homebuyers, particularly first time homebuyers, fall into the trap of falling in love with the very first house that they see. You need to at least look at three more houses in the area to get an idea of what the comparables are in that price range. You want your REALTOR now to show you homes comparable to what you saw. At the end of the day, re-evaluate.
5. Buying a Home Without a Professional Inspection
There are a lot of things a home inspection can reveal about a property that are not visible to the naked eye. Be sure to hire someone that comes with a good referral basis, that’s been in the business a while and knows what to look for. Look up the American Society of Home Inspectors and get a list of qualified home inspectors in your area. Once you find an inspector, insist that they compile a written report, complete with photos. Photographs are important because there are areas a home inspector will go that you might not look at.
4. Overlooking the Extra and Hidden Costs
Buying a home is not just about the money that you spend up front; it’s about all the rest of the money you have to spend beyond that. Find out what the property taxes are, what your water bill might be and what a standard electric bill is in that home, especially if you have electric heat vs. gas heat. You also need to factor in furnishings you may need to purchase before you can move in.
3. Buying What You Want, Not What You Need
Look at the space that you are already living in. It will help you to realize what you have been missing and what you need in your next home. Make a list those of needs and then ask your agent to start shopping these needs. On average, Americans live in a house for about nine years. Remember, you can always trade up a few times before you find the ultimate home.
2. Setting Too High of a Sale Price
As a seller its really important to do your research, and in order to come up with your sale price, look up what comparable homes in your neighborhood have sold for. Figure out what the going price is and try to put yours right in the middle of that, unless you have something extra special to offer. It is always better to price a home sharply than to start too high and have to reduce. Once you reduce, it always looks like something is wrong with the home.
1. Failing to Showcase Your Home and Make Small Cosmetic Changes
When you are selling your house, you have to really look at it objectively and think about it from the viewpoint of the house hunter. Make minor enhancements to the house and maybe hire a professional stager to come and arrange your furniture. Staging is about decorating your house for the buyers’ taste, not yours. A great place to start is with the front of the home and the main entryway. Home staging is designed to increase the potential selling price and reduce the amount of time the house stays on the market.
If you would like a Trend Setter Realty REALTOR to help you avoid these and other costly Real Estate Mistakes, please provide your information below.
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Tips for San Antonio Homeowners to Avoid Home Improvement Scams
April 9, 2008
May is National Home Improvement Month. During times of a softer economy paired with the approach of warmer weather, the National Association of the Remodeling Industry (NARI) wants to remind San Antonio homeowners to beware of unscrupulous people posing as remodelers.
One common issue exploited homeowners have run into is having to pay both the contractor and the subcontractors. The homeowner’s financial obligations should only be to the contractor. Some dishonorable contractors are collecting large, upfront payments from residents. When the work has been completed, instead of paying the subcontractors, the dishonest business owner instead pays the interest on properties they have already purchased and can only re-sell below cost. This predictably leaves subcontractors without paychecks and forces them to establish mechanics’ or materialmens’ liens on their customers’ properties.
The subcontractors secure payment for their work, but this causes difficulties for San Antonio homeowners, who then pay the same fee twice for one remodeling project. Since subcontractors have 90 days to file mechanics’ liens, it could take months for homeowners to realize that they have been defrauded. Residents should note that these types of liens will pay the subcontractors before the homeowners if occupants sell their properties.
Protect yourself
To avoid these circumstances and ensure that you only pay the cost of a project once, NARI suggests you take the following steps:
Be sure you hire an experienced remodeler and not a fly-by-nighter waiting for the building industry to pick up again.
Contact state or local licensing agencies to ensure a contractor meets all requirements.
Check with your local NARI chapter, the government Consumer Affairs Office or the Better Business Bureau to ensure the absence of any adverse files on-record for the contractor.
Ask to see a copy of the contractor’s certification of insurance or for the name of his or her insurance agency to verify coverage. Most states require a contractor to carry worker’s compensation, property damage and personal liability insurance.
Verify that the contractor’s insurance coverage meets all the minimum requirements. If homeowners request estimates from several different contractors, they should confirm that they are bidding on the same scope and quality of work. Discuss any variations in bids and beware of any bid that is much lower than the others.
Draw up a contract before a remodeler begins work that includes the contractor’s name, address, and phone and license numbers, if applicable. It should also include details about what the contractor will and will not do.
The agreement should offer a detailed list of materials for the project, with information such as size, color, model, brand name and product. The contract should include approximate start and completion dates.
Study the design plans carefully. Before any work begins, the homeowners should insist both that they approve the plans and that the contractor identifies the design plans in the written contract.
Known as the “Right of Recision,” federal law requires a contractor to provide a homeowner with written notice of the resident’s right to, without penalty, cancel a contract within three business days of signing it, provided it was solicited at some place other than the contractor’s place of business or appropriate trade premises.
Verify that you share an understanding of financial terms with the contractor and that the contract explicitly states them. The total price, payment schedule and any cancellation penalty should be clear.
The contract should include a warranty covering materials and workmanship for a minimum of one year, and identify the warranty as either “full” or “limited.” The contract must identify the name and address of the party that will honor the warranty, namely the contractor, distributor or manufacturer. Homeowners should make sure the document specifies the time period for the warranty.
In the event of a disagreement, a binding arbitration clause is useful. Arbitration may enable the homeowner to resolve disputes without costly litigation.
Before signing a contract, completely review it and confirm that you comprehend it. Consider the scope of the project and verify that the contract includes all requested items. If the agreement lacks mention of a specific, discussed item, consider it excluded. Never sign an incomplete contract, and always keep a copy of the final document for review.
San Antonio Homeowners can depend on NARI
NARI reminds all homeowners that its members must adhere to a strict code of ethics and that there are grievance procedures in place for members who do not. Under the NARI code of ethics, members pledge to always provide quality service and work and follow the high ethical standards of the association, to only promote products and services that are functionally and economically sound, and consistent with objective standards of health and safety, that any advertising or sales promotions will be factually accurate, and any agreements or warranties will be fair and mutually beneficial to all parties concerned.
NARI members also agree to honor all contractual obligations, until and unless all contractual parties involved alter or dissolve them. They also will promptly acknowledge and act on any customer complaints, and refrain from any act intended to restrain trade or suppress competition.
NARI is the only trade association dedicated solely to the remodeling industry, and its members voluntarily subscribe to a strict code of ethics. Consumers may wish to search www.RemodelToday.com to find a qualified remodeler who is a member of NARI.
10 Things New Homeowner’s Should Know
April 1, 2008
Act now, save later
1. Pull out the home-inspection report and reread it. Use the report as a handy maintenance checklist.
Most inspections take place during a stressful time when the buyer’s main concern is closing the deal, Davis says.
“A lot of small problems tend to be overlooked and dismissed,” he says. “But in time they grow to bigger problems that can max out your credit card.”
One of Davis’ real-estate clients watched for three months as a water stain crept across his ceiling. Then one night while the man was eating dinner, the entire ceiling collapsed. The lesson: Be proactive. Take care of issues as soon as or before they arise.
Know your enemy
2. “Water is 90 percent of a homeowner’s problems,” Davis says. A home’s basement, foundation and roof are the most susceptible to costly water damage and corrosion.
Inspect bathrooms, laundry rooms and kitchens regularly for water leaks. The fix can be as simple as tightening a nut. Caulk around doors and windows to prevent water from seeping into the walls. Outside, keep water routed at least 5 feet from the foundation.
Maintaining a home’s gutter system is a major line of defense against water damage. Leaves, dust and dirt from shingles can result in a clog that forces water out and down into the foundation. Use a ladder and a water hose to clean out the gutters regularly, and make sure they drain properly.
Wade Williamson, owner of Axium Inspections in Denver, says many homes he sees have missing downspout extensions. Inspectors suggest checking a new home’s landscaping to make sure the slope of soil and sod doesn’t push water toward the house. Always turn sprinkler heads away from the house.
Remember the roof
3. Roofs should be next on the maintenance checklist. If a roof is more than 12 years old, get it professionally inspected.
A homeowner should avoid climbing on the roof to avoid getting hurt or breaking shingles. Instead, use binoculars to check for broken shingles and spots where the mineral coating has worn off, curled up or is getting brittle. To avoid leaks, make sure that flashings are intact and not getting flaky or deteriorated.
Take charge of circuits
4. Map out the home’s electrical system by determining which outlets serve which circuits and then labeling the breakers. Don’t trust that the previous homeowner labeled the circuits properly.
A tripped circuit is a red flag for an overloaded breaker. Read appliance labels to figure out how many amps (electrical current) each one draws. Many household circuits can have only 15 amps. Update electrical wiring in homes 10 years or older.
Make sure GFCI outlets (ground fault circuit interrupters) are installed near all sinks, in the laundry room and garage, and on exterior outlets. This inexpensive fix — hire an electrician — helps prevent electrocutions and fires.
Tighten screws on outlet covers and replace missing ones. Never use extension cords in place of permanent wiring.
Know your shut-offs
5. The main electrical shut-off should be a switch either at the main breaker panel or outside near a service entrance.
The water shut-off valve will be on a wall of the house facing the street. These areas need to be easily accessible.
Check for leaks
6. Inspect all plumbing and fixtures. Make sure the shut-off valves on toilets and sinks turn easily and are not rusted shut. If they are corroded, replace them.
If the faucet is leaking, then it needs a washer. Take the faucet, washer or stem along to the hardware store to match it.
If a toilet runs all the time, a flapper valve needs replacing. Have slow drains looked at immediately to prevent costly backups.
Consider warranties
7. Sid Davis warns homeowners that warranties can be just as pricey as actually replacing faulty appliances. However, real-estate coach Jason Hanson, author of “How to Build a Real Estate Empire” ($25, Foundations of Wealth), says warranties can provide peace of mind.
When appliances break down, Hanson says, homeowners can use the warranty instead of searching for reputable repair companies.
Buy, update insurance
8. Get “replacement coverage” to cover property damage. Make sure the policy outlines in writing exactly what will be covered in case of a catastrophe. Videotape or photograph all valuables, keep a list of serial numbers and write down the date an item was purchased for possible reimbursement proof.
Also, track all home improvements by saving receipts and records to help avoid capital-gains taxes when you sell the home.
Buy a flood policy
9. Get flood insurance even if your home isn’t near a flood zone. Forty percent of flood claims are made by homeowners in nonflood areas, according to Davis.
A heavy rainstorm, improper drainage and runoff from road or subdivision construction can funnel water into the home.
Do your homework
10. Compare property taxes with similar homes’ taxes in the neighborhood. If all things are equal (i.e. square footage and upgrades) in multiple-listing service documents, protest your rate increase with the assessor’s office.
Source: “What Every Homeowner Should Know” written by Sheba R. Wheeler at The Denver Post.
