FHA Policy Changes
FHA Policy changes are right around the corner. The largest key change home buyers should be aware of is seller concessions. Beginning sometime this summer home buyers can only get up to 3% in seller concessions instead of 6%. This will dramatically change the cash requirements borrowers are accustomed to at closing. To view the other FHA changes click here.
Krishna Perkins, ABR
San Antonio Foreclosure
San Antonio foreclosure market summary describes homes that have been sold and are under contract in the past three months. There are 48 total foreclosures considered in this report from mls areas 1400, 1500, 1600 and 1802 in the past 3 months. Of the 48 North East San Antonio foreclosures 36 have been sold in the past 3 months and 12 are currently pending final closing. The average price per sq/ft for sold foreclosures is $50.35 and the average days on the market is only 56 days. This report tells me that market conditions are strong and buyers considering buying a foreclosure should be ready for some competition when buying a foreclosure. To view the market report click here. When buying and selling real estate be sure to consult a licensed Realtor.
Krishna Perkins, Realtor
Buyers and Sellers Beware the Next Tax Credit Deadline.
Buyers and sellers beware the next tax credit deadline. If next summer yields the buying and selling frenzy many real estate professionals are hoping for, home buyers and sellers should plan ahead now. Waiting until the last minute to close for first time homebuyers wanting the $8,000 tax credit or move up buyers wanting the $6,500 tax credit is a big mistake. Banks have proven to me that they are having major trouble making closing dates. I have had buyers turn over completed files to lenders in record time only to have the file sit in some office for over two weeks before anyone put a set of eyes on the file.
The major draw back for buyers and sellers alike is what to do if the file is unexpectedly closing late. Buyers have leases they are working with and sellers are also faced with moving out early to turn over the property on time. In many of the situations my clients faced this year temporary lease backs and buyer leases were worked out. However this may not be an option for everyone, due to the risk involved. The best advise I can give for buyers is to shoot for a close 30 days before you have to give up your lease. Sellers should consult with the listing agent to keep tabs on the status of the loan to time up their move.
Krishna Perkins, ABR
What First Time Homebuyers Need to Know
What First time homebuyers need to know by: REBAC, is a great read for anyone looking to purchase a home in the San Antonio. There are many great deals in our San Antonio market, new homes, foreclosures, shortsales and resale homes. Get the information you need to know to make the right purchase right here.
Krishna Perkins, ABR
First time home buyers
Water Saving Landscapes
Water saving landscapes can be a hot selling feature especially when you live in an area susceptible to drought. We have just come out of a record setting summer in San Antonio for 100 degree heat in 2009. With dead lawns, sky rocketing water bills and fines reaching hundreds of dollars, more eco-friendly lawns are catching on here. Drought resistant plants (AKA xeriscaping) need less water and can add lasting beauty to your home. When considering the best plants for your home, visit your local nursery or visit the saws website for tips and links to more water saving landscape ideas.
Krishna Perkins
Home Owners’ Insurance
Home owners’ insurance should be among your top priorities when searching for a home. Your monthly payment will be determined by many factors. Be sure to shop around for an insurance provider with a good rating and the coverage you need. Don’t forget to consult with your insurance company early when you find a home. Your insurance company can tell you if there have been any recent claims on a home that could effect your decision to make the purchase. Also a big concern for the San Antonio area is flooding. We have flood zones all over and they do change from time to time. Flood insurance is not included in a regular policy and can be very expensive.
Current home owners can also benefit by shopping around since rates change every year and switching companies can save. In fact I’m going to switch my policy this year. Yikes! I’ve been over paying.
Visit The Texas Department of Insurance to compare companies
Krishna Perkins
Termite Inspection
Termite inspection is often a forgotten expense buyers face and neglect on a regular basis. Just recently I noticed some termites in my own bathroom sink! They had come out of the wall behind my mirror and fell into the sink. I later found out that they were coming in through the plumbing. It’s a miracle I found them before they could do more damage. The home had a previous inspection before we bought it and there were no termites at the time. However, it did have previous treatments for termites before the inspection.
My pest control tech explained to me that there was a recent spike in activity due to the rain we just had. Here in San Antonio we have Subterranean termites. Subterranean termites will start swarming in the spring usually, but when in a drought you are more likely to see them after some much needed rain comes in, so keep your eyes open. They can come through plumbing space in the slab or shifting cracks.
Don’t let termites go unchecked. An inspection for a buyer can start around $100. Extreme damage can cost thousands. Don’t be affraid to ask for a discount or shop arround. If you own your home many pest control experts will give you a free inspection and only charge for the treatment. Treatment can be around $350 depending on what needs to be done and what type of home you have. After each termite inspection or treatment, pest control will leave a sticker under the kitchen sink (it’s the law). Also termite reports, if available, will be listed on a seller’s disclosure notice when a house is listed for sale. This information will serve you in looking for future termite activity in problem areas.
For detailed pictures and descriptions of termites click here.
Krishna Perkins
Energy Efficiency
‘Energy efficiency’ is here to stay. What are you going to do in order to separate your self from the competition? Home buyers and sellers can both make wise choices by reading this.
You can start by auditing your home’s features in a list format to focus your attack.
Energy Star items in the home:
Air conditioner
Ceiling fans
Food disposal
Heater
Refrigerator
Stove and range
Water heater
Next list the energy saving structural features:
Radiant barrier
Insulation rating
Windows
Weather striping
Ventilation
Finally, consider the cost of adding new items based on your own personal budget and goals for how soon you need to sell. Consult a local agent for a list of recent sales statistics to give you an idea of how far you should go with upgrades. The sooner you start adding these upgrades to your home the sooner you will start saving money on a monthly basis. And when it comes time to sell you will have a great list of features to market your home to potential buyers.
Note: Your local energy provider may offer rebates for adding energy saving features to your home. Time and availability is limited on these rebates so act soon to maximize your savings. Our local San Antonio provider is CPS energy.
Krishna Perkins
Hurry up and wait for your loan
Hurry up and wait for your loan home buyers.
The same bad news goes for sellers these days as well so don’t worry you won’t be alone if it happens to you. I’m waiting for a late closing due to loan issues at this very moment. In fact, all but a couple of my closings this quarter have been late (30, 60 and 90 days late).
“So, what’s the deal?” my clients ask.
Well, if we subtract any lost time the buyer contributes to the process we are left with:
1. rookie loan officers (lenders are cutting expensive people to be more profitable)
2. rookie processors (again more expense cutting)
3. new federal regulations (they mean well but they slow the process down with more hoops for loan officers and processors to jump through)
“So, what do we do?” my clients ask.
A. Shop for a lender early. This is not a new piece of advice, it’s just much more important these days because of all the new changes. Not all lenders have sent their studs packing. You can still find a good loan officer, but you have to look. Chances are if you can find a good loan officer you will find a good processor or a loan officer who has a good relationship with the processor.
B. Start a file right away with all your important docs. Ask your lender for a check list and keep your file up to date as you shop. Getting your docs scanned to your self as an e-mail for easy access is also a good idea especially if you work a tight schedule. I can not tell you how many times we needed a docs to be resubmitted because it got misplaced at the lender office. Doing this will make it easier for you to forward any docs to the processor from work via e-mail right away.
C. Finally be as patient as possible. If you start early enough and keep organized this will be much easier. Remember that everyone else wants your deal to close too. I know I do. 
Northeast San Antonio housing market report for August 2009
North East San Antonio housing market report for August 2009 shows most inventory is still selling at 97% of the list price. Consider this average when considering offers on purchases and sales. Both buyers and sellers should know the average percentage under or over the list price homes are selling for in any given area. That’s right! In some cases in certain areas there are homes selling for higher prices than they are listed for. Ask your realtor for the most recent market summary of the area you wish to purchas in to get an idea of how much negotiating room you may find for that area.
