New homes are they the best kept secret?

FREE, the one word that most can't ignore. If you want more free when buying your next home be sure and continue reading this.

Like any business new home builders want to finish the year strong. This is why Nov-Dec may be the best time to purchase a new home. They have inventory that they need to move and they are offering lots of incentives to get it done. I recently helped a client purchase a new home that was already built in the subdivision. I was able to save her 10% on the asking price and we got her all upgraded appliances included with the purchase. I am going to list three aspects of getting a deal on a new home that you should consider. On a side note many of these concepts apply to any sales related business, i.e. car dealerships and the like.


Why does the 4th quarter matter? 

It is simple really, the builders have inventory that they will have to pay taxes on if they don't sell it. This means you are likely to get the best deal on a new at the end of the year. The market slowed down because people aren't looking to move over the holidays and the builders understandably don't want to pay taxes on inventory. You can get many incentives like large reductions in price, all closing cost paid or all appliances thrown in.

The inventory-

The only catch is that in most cases you have to purchase existing homes to get these great incentives. They need to move the properties they have already built so if you are looking to build a new custom home then you may be out of luck on getting the incentives. Assuming you are ok with an existing home then you can purchase and be in your new home by Christmas.

The Alternative-

If you are thinking about buying a new home but are not quiet ready to purchase yet you may still have options. Find out when the builders quarter ends and go in to purchase towards the end of the quarter. These builders are in business to make money and to make money they have to show a profit, sold homes = a profit in most cases. That being said they will typically be more motivated to move inventory at the end of any of the first three quarters, but they will be the most motivated to move inventory at during the fourth quarter.


You don't want to go it alone so get a REALTOR!

Many people wander into new home builders quiet by accident sometimes but when you are purchasing a home you want someone to watch you back. The sales agents at the builders subdivision is just that an agent for the Subdivision. He works for the subdivision and therefore is not going to have your best interest in mind. A realtor is dedicated to you and bound to do what is in your best interest so who do you want negotiating your next purchase?

Using a Texas Vet loan to buy a San Antonio house?

A home purchase is likely the biggest transaction you will ever make and picking the wrong lender can cost you big. If you are a Texas Veteran you are most likely eligible for a Texas Vet loan. A Texas Vet loan is a great option because the interest rate is not contingent on your credit score and you still get all the benefits of a traditional VA loan. If you are VA Eligible that you should strongly consider using Texas Vet loan to buy a San Antonio House. If you Qualify for a VA Loan and are a Texas Vet than you will almost certainly be eligible for a Texas Vet loan. Qualifying is easy, you can qualify with a short period of active duty or with six years of reserve duty. 

 

 

Not all loans are created equally, know what your VA financing options are before you commit.

 

I personally used a Tex Vet loan to purchase our home and we got an interest rate a full 1% below what we could have gotten with a VA or Conventional loan. The great thing about using a Tex Vet loan is that you get the lowest possible interest rate regardless of your credit score. All you have to do is qualify and you automatically get the lowest possible rate. You will also avoid the mortgage insurance that comes with Conventional and FHA financing. If you are planning on using a VA loan but don't have 20% down and stellar credit score than you should strongly consider trying to get a Tex Vet loan. 

 

 

If you are thinking of using a VA loan you will hear the term funding fee thrown around. This is the fee that you pay to use a VA loan however it is typically waived if you have a disability rating from the VA. A Texas Vet Loan has a slightly higher funding fee than a traditional VA loan, but in many cases it is more than made up for by the reduction in the interest rate that you receive. 

 

I had a client that wanted to use a VA loan but she went with an online lender that is based out-of-state. The out-of-state lender while licensed to do business in Texas did not offer her the option of using a Texas Vet loan. They approved her for a traditional VA loan which had an interest rate 0.75% higher than what she could have gotten with a Tex Vet loan. This is not to say that all online lenders are not going to offer state specific loans but this is where it pays to know your stuff. At the end of the day you and your real estate agent need to advocate for your interest. With Internet-based lenders you will never meet in person and most of your communication will likely be electronic. There is no personal touch with this, for me when I am making the biggest purchase of my life I want to be able to do business face to face. 

 

 

Whatever your communication preference whether face to face or electronic it pays to fact check what your’e being told. Know your options before you make a decision, at the very least if you do go with an online lender sit down with someone local and get a second opinion. It is not going to cost you anything and it could potentially save you big money in the long run. 

New cars and the true cost.

I am sure you have all heard of sticker shock in relationship to any given item. I experienced a bit of sticker shock today when I saw the statistic that Americans have over 1 Trillion dollars of car debt. You read that correctly, Trillion with a T. In a society where debt is passed out like candy, think about these two things before you take your next credit plunge: Face the reality of what we need vs what we want and face the truth of what will happen if you by a cheap used car and pay cash.

• To start with you need to face reality and consider the cost of buying things like a new car that will lose 11% of its value the moment you drive it off the lot. Ask yourself WHY, why do I really need a new car. The key word there is need, we have very few things in America that are truly a "need". We need food and water to live, we want a new car and nice things. So I ask again why do you NEED a new car and how much is it really going to cost you? 

• There are few things that depreciate faster than cars yet people continue to spend massive amounts of money on them. Now don't get me wrong, I like having a nice car as much as the next person and there is something to be said about reliable transportation. I have been there I paid $22,000 for my last car and sold it for $7,000 after I paid it off. It was the worst investment I have ever made. I now drive an 8 year old truck that I paid cash for, it is clean and reliable which is all anyone really needs in a vehicle. 

• There is a psychological side to having a nice car. Society has conditioned us that having a nice car is equated with success. Just stop and think about that for a second, you paid 20, 30 or 40 thousand dollars for a car. A car that you could not afford to buy so you financed it for five to seven years. This is a sign of a successful person in America today and one that millions of people buy into.  

Call a car what it is. Plain and simple, a car is a tool and like anything else it is there for a purpose. A car is nothing more than a method of getting us from point A to point B, nothing more nothing less. A car doesn’t better your quality of life, it doesn’t improve your health and it doesn’t make you more successful (no matter what society says). So break the cycle, if you have a car payment throw a little extra every month and pay it off. Drive it till it becomes more expensive to fix than to keep. When it does become more expensive to fix than to get rid of pay cash for your next car. It may not be the nicest car in your friend group but it will likely be one of the few paid for cars amongst you all. 

The moral of the story is Expectations are real

What kind of experience is your client expecting you to deliver? Are they expecting you to find them a home in a matter of day, weeks or months? Is your client expecting you to sell their home for over market value in a matter of a week? These are all things that the client is likely expecting whether or not you bother to find out. So do yourself a favor and find out the clients expectations from the start so you can manage them effectively. Ask yourself, what kind of experience is the client looking for me to deliver? Failing to know the answer to that question could cost you in a big way. I will share my personal experience of how I personally failed to manage my own expectations and paid the price.

• My wife and I are in the process of buying a home. We knew going into it that it was an active market but we thought our situation would be different since I was our realtor. As you can imagine we did not manage our expectations going into the house hunt. I had failed to manage the expectations of my client (my wife) and it led to unnecessary anxiety and stress. 

• Managing expectations is important with buyers but it is equally if not more important to do when working with sellers as well. I have clients in this market that regularly feel they can price their house high because there is shortage of houses out there. This is not the case, houses that are overpriced tend to sit for a while and only after dropping the price do they get serious interest. 

• At the end of the day all you can do is advise your clients what the best route to go is. What route they choose to take is up to them, but it is important to manage expectations from the get go regardless. Failing to do so could result in it negatively impacting you and your clients relationship. A seller that overprices their house with the expectation that it will sell quickly is not going to take kindly to the reality that it hasn’t sold after a month or more on the market. If you don’t clearly define the expectation the seller is likely to blame you for less than desirable result. 

The moral of the story is that you can’t control what people will or will not do. You can to some degree control how they will or will not react to a given situation. Managing expectations ensure that you and the client are on the same page. A good rule of thumb is under promise and over deliver. No one is going to get mad at you because you delivered exactly what they expected. People will quickly get upset if you under deliver though. This goes back to managing expectations, what kind if experience is your client expecting you to deliver? Answer that clearly from the outset and you will be much better of for it.  

Real estate teams vs. Individual Agents and what consumers need to know.

Real Estate Teams vs. Individual Agents

I had my first experience with a real estate team when I sold my first home about a year before I got into real estate myself. I had no idea what a team was and I the agent that was selling our house didn't explain it at all. I left feeling like I did not get what I signed up for.

There are two obvious differences between a team and an individual agent. As the name implies a team is composed of multiple agents and/or support staff. An agent is singular and therefore solo mostly without a team of support staff. The less obvious difference is that with a team you will rarely deal with the same person for any two portions of the process.

Team structure-

Teams are structured in various ways but the typical team has at least three components: a listing agent, a buyers agent and an assistant. The listing agent and buyers agent are pretty self explanatory however the assistant is the one varies. Most of the time the assistant handles all the paperwork, contracts, phone calls and all the behind the scenes stuff. This allows the listing agent and the buyers agent to focus on getting new buyer and sellers.

Single agent structure-

With a single agent there is only one agent therefore the agent has to handle everything on their own. This means that the agent will be the one showing the buyers houses as well as the one going on listing appointments. They will also be the one doing the paperwork and giving clients the update as the process goes along.

The difference to you the consumer- 

The difference between working with a team and working with an individual agent as a consumer can be pretty dramatic. When you are working with a team you will likely have very little contact with the lead agent that you initially spoke to/met with. They are the “face” of the operation and are most of the time hands off for the majority of the transaction once it gets started. This means that you agree to list the house with them and from that point on someone else takes over. Most if not all updates will come from one of the support staff and not the agent that you started working with. 

With an individual agent you have the same agent from the start to the finish, there is no one to delegate the tasks to. The individual agent is going to have much more of a personal touch and will be involved in every step of the transaction. They in a sense have more at stake than an agent with a team, because they are more personally invested in the deal. 

Conclusion- 

In concluding there is nothing wrong with either option you choose to use. Most teams provide great service but you will lose much of the personal feel that you get with an individual agent. Both should run equally smooth it just becomes a preference of what your’e comfortable with. 

Invest in tomorrow, why you should buy a duplex

If you are an aspiring investor but don't know where to start, than consider buying a duplex. 

Living rent free, being next door to your tenants and residual income as soon as you move out. These are just a few of the reasons that you should consider buying a duplex instead of a single family home for your first investment property. 

Living rent free- 

Unless your'e still living at home than your probably not getting away with living rent free. The great thing about a duplex is that you can live in one side and rent the other out. If you get it at the right price you can pay for the whole property with the rent you're making off one side. Assuming you're living in one side and renting the other out you are living rent free. 

You are next door to your tenants- 

At first this may seem like the last thing you would want. But the decided advantage with this is that you can keep a much closer eye on things than you could otherwise. Rental properties can be a great source of revenue but they can also lead to an excess of repairs if your renters trash the place. This can be prevented by screening tenants to a large degree but the knowing that you're watching is likely to help keep them in line. 

It is residual income as soon as you move out- 

All that money you were saving in rent can be turned into passive income as soon as you rent the other side out. This means that whatever you're renting the side you were formerly living in for is now profit every month. This means that as long as both sides stay rented you have residual income every month. This residual income can be used to reinvest into more real estate or for whatever you wish to do with it. 

But thats not all- 

Just because you can doesn't mean that you should. This is true of real estate as well, the natural thing to do is borrow money when buying a home since most of us can’t afford to pay cash. I would caution you to be careful when doing this for investment properties. It is by far the trend to buy and have 2,3 or 4 investment properties that are financed. This is dangerous because you are on the hook for every mortgage payment regardless of whether or not it is rented out. 

Start small and make sure you have an emergency fund in place when you own investment properties. You have liabilities such as repairs and maintenance that is going to come up inevitably. If you have repairs that need to be completed before a new renter can move in you need to account for the rent you are not getting as well as the cost of repairs. So all that to say that if you're going to invest than do so with a plan. Because failing to plan is planning to fail. 

Avoid the post holiday blues and sell your house now

Home sellers listing their home in between the months of Nov to Feb are placed in a unique situation. The holidays are around the corner and the housing market slows way down. If you find yourself in that situation consider the following three points listed below. 

Consider taking it off the market

•  Every day that your house is on the market is added to the cumulative total "days on market". Many buyers consider houses that have been on the market more than 90 days to be undesirable. 
• This naturally leads to the conclusion that there must be something wrong with it. Right or wrong this conclusion will lead most buyer to skip your house and keep looking. If you can’t afford to wait then you should price it to stand out from the crowd. If it sits through the holidays it will likely end up south of 90 days on the market. This will lead most people looking to skip right over your home in search of a newer listing. 

Be flexible with your showing times you may only get one chance 

• You typically only get one shot at most home buyers. This means that if you decline their showing request they are not likely to come back a second time. 
• During the holiday season sellers are notorious for declining showings because they have family in town or want to "enjoy the holidays". 
• While that is completely understandable, the buyer doesn't care what you have going on. They are looking to buy a house and if they cant see yours than there are plenty more out there that they can. This is not to say that you should accommodate unreasonable requests. Just make your home as available as you possible can.  Most people don't house hunt during the holidays out of enjoyment if they are searching they are probably pretty serious. Declined showings make it seem like you're not serious.

If your not going to do that then my first point is probably one you should strongly consider. 

Take it easy on the decorations

• Not everyone shares your taste in decorations so consider keeping the decorations to a minimum this year. You want to keep things as neutral as you can and holiday decorations are no exception.
•  If you are selling your home you want it to stay true to the pictures. If buyers are coming to see your home it is because they liked what they saw in the pictures so keep it true. If the buyers have to struggle to picture the house they saw in the pictures they will likely just move on. Buyers have short attention spans and judge the house on first impressions. So before you do any decorating think about what the first impression of the buyer will be when they see it. If it is going to hide any features that would be a selling point than it is probably best avoided. 

Home to one of the hottest zip codes in the country

San Antonio is home to one of the hottest zip codes in the country. San Antonio has a robust housing market, this I am sure you probably know. What you may not have know though is that 78247 was ranked by realtor.com as one of the top 10 hottest zip codes in the country. 

Why is it a hot zip code hot? 

Location has a lot to do with it I believe. People don't want to have to travel far when they want to go somewhere and this location is perfect for that. It is located very close to loop 1604 and uniquely gives you the preference of new and pre-existing homes. This is a feature that you don't often see making it appeal to a larger crowd. 

The zip code as a whole is up and coming with many changes in the works. Shopping centers have popped up all around the area with everything from Starbucks to huge gyms. Housing prices in the area have remained affordable for the time being, however that is likely to change in the near future. If you have plans to move into this area now would be the time to do so, they are still building shopping and retail centers. Once the building is complete than the demand is likely to dramatically increase. It will be somewhat of its own little urban sprawl having everything you need within a couple square miles. 

Pricing and home data

The median sold home price for Sept was 167k bringing it in well below the average for the city as a whole. San Antonio as a whole had a median sold price of 181K making 78247 significantly less expensive for the time being. The median sold price in 78247 increased by roughly $10,000 or 6% from this same time in 2014. 

Homes do not sit on the market long with the average days on the market being 43. This is also well below the average for San Antonio which has an average days on market of 72. Homes in 78247 sell almost twice as quickly compared to the city as a whole. 

What else you need to know

Based off of price range and development 78247 is likely going to appeal to the younger crowd and first time home buyers. With the option of new construction for under 200k and existing homes in well established neighborhoods the price is right. Location is hard to beat with the ease of access to the highway there you can be to most parts of the city in 20min without traffic. This has the potential to save you major tine off your commute every day. 

As always I am happy to answer any questions you may have or to show you any properties that you may wish to see. 

How to avoid the real estate dead zone

The real estate market in San Antonio (and much of the country) is very active and move in ready homes are selling extremely fast. It is critical to a successful sale that you and your realtor know what the market is doing. Failure could land you in the “dead zone”.

The dead zone

The dead zone is that area where homes sit for months and months with no serious offers. To avoid the dead zone you need to make sure that your home will appeal to one of the two most common types of buyers in today's market, Investors or those looking for a primary residence.

The buyers looking for a primary residence want move in ready, while investors don't want to pay more than 70% of market value. If your home is not move in ready or priced around 70% of the market value, than you may be in for a long wait. 

Houses are flying of the market right now

I hear this a lot, but this does not mean that your house will sell quickly irregardless of condition or price. Some people assume that because the market is so active they can overprice their home or cut corners on the listing. This is simply not the case and will cost you big if you make that mistake. 

Move in ready is not the end all be all but if your home is not move in ready you will need to take the cost of updates/repairs and then some off. Todays buyers are busy and don't want to mess with repairs or updates. To make it worth the buyers time you will have to reduce the price substantially to cover the cost of repairs and the buyers time. 

Factor in the cost of repairs and subtract it from the current market value of the home. Then subtract another 10-15% off the market value (before repairs) and you will have a list price that should get peoples attention. Anything short of that and it is just not worth peoples time. They will keep looking for something that is move in ready.  

What is move in ready?  

Move in ready means just what it sounds like, someone can move in and not have to do repairs. People not only don't want to do repairs they don't want to do updates either. People want the wood floors, granite counter tops and bathrooms that are functional and current. Neutral paint color is a key as well, you are trying to appeal to the broadest group of people so keep it neutral. 

Closing

Closing is the goal of any real estate deal. In closing this post keep in mind that investors are business people and are looking at the bottom line. The most common formula most investors use calls for them to get the house at 70% of market value. They don’t need the home and aren’t going to overpay. 

The up side is that investors can pay cash and they don’t care about condition so you won’t have to make repairs. People looking for a primary residence may be willing to do some work but your going to have to make it worth their while. Take the cost of repairs/updates subtract that plus another 10% and you may catch their attention. If that is too much than I would suggest getting your home move in ready and not risking it.

Why should I use a full time realtor?

Part vs. Full Time, Is There Really a Difference? 

As with anything you have people that take do things full time and those that don't. I don't know about you but my home is by far my biggest investment. I would not invest hundreds of thousands of dollars in the stock market with someone who does investing on the side. I also would not want a surgeon that operates on the side when he has time. That is why I would not use a part time real estate agent. I will cover some of the potential issues that could arise when working with a part time agent.

Homes are first come first serve

In most of the country homes are selling very quickly and it is not uncommon for the home to sell the first couple days on the market. To a consumer this means that you are going to have to act quickly if you are interested in a home. 

If you are working with a real estate agent that is doing it part time it is not a priority to them and therefore you are not a priority to them. How likely is an agent to show you houses you want to see after they have worked their day job all day? I would say not likely, they will probably show it to you on the weekend when they get some time. 

Agents only get paid when they help people buy or sell a home. Being that it is a side job they don’t likely need the income and therefore have no real investment in their or your success. Agents only get paid when they help people buy or sell a home. This means that if they are not dependent on the income there is truly no motivation to succeed.  

Don’t trust your investment to just anyone

If you are a home seller using a part time agent that means that they are advertising your home part time, marketing your home part time, responding to buyer inquiries part time… You get the picture, even in a hot market homes do not sell themselves and if they get overpriced or underexposed they may well sit for months. 

The initial time a home hits the market is the best shot that it has to sell. Making sure that the home is priced right and marketed correctly from the get go is going to make all the difference in the long run. Can you put your home back on the market with a different agent after it sits for a couple moths? Absolutely you can but now you have a home for sale that sat for 3,4, or 6+ month. This is a big turn off to buyer, it gives your home a stigma and makes people more likely to pass it by a second time.

What’s a person to do?

Save yourself time and money from the get go. Don’t trust yourself to an agent that does it on a part time basis. There are plenty of agents that do it full time and there is no reason to settle for a part timer.  

What is the better deal renting or buying?

The age old debate of buying vs renting is as alive as it ever was. 

Does it make more sense to rent or buy, this is a question many have asked. As with anything there are many prevailing opinions on the subject. As a real estate agent I see both sides of it and as a consumer I have been on both sides of it. There is not going to be one right answer that fits every person but I will cover a few common things that may help you decide. The key is to think of things in the long term or big picture.

To start with you want to consider your individual situation.
What are your plans long term, do you plan on staying in the city or area you are living/moving to? If the plan is to stay long term than I believe it makes sense to put down some roots and buy a house. I have many clients that move in from out of town and want to rent for a year before buying. This is a logical step in the process, you get to try before you buy in a sense. Many people also rent because they can't qualify for a mortgage due to credit score or job situation. 

Fixed mortgage rates do not go up, rent prices do.
While there is nothing wrong with renting long term, the reality is that you have very little stability or control of the situation. With a mortgage your payment is fixed every month (assuming you got a fixed rate mortgage). If you are a long term renter your payment will almost certainly go up with on an annual or semiannual basis. This could be a small increase or if you live in a booming city like San Antonio, Texas than I have seen $50-100 increases annually. Rent works off the age old supply and demand model, the shorter the supply the more money landlords can demand. Unlike renting with a mortgage you are unaffected by the supply demand model unless you are buying or selling. 

Renting has no return on investment.
Again long term renting does not build any equity while long term home ownership does. The standard mortgage is either 15 or 30 years depending. This means that at the end of that term you own the home free and clear. If you rent for 15 or 30 years you have nothing to show for it and you don't pay your rent you don't have a place to live. 

Summery

While you don't have things like repairs and maintenance costs with a rental you also don't have the ability to make the house your own. All else aside, historically speaking property has always risen in value which makes it a wise investment. It may not always rise continually but it has always bounced back which means that the only way you lose is by selling it when the market is down. So look at it like an investment that you get to live in and build equity with every payment. 

Mortgage interst rates and why you should buy or sell now.

If you own a home or are thinking of buying you may know that interest rates have remained very low. This is important for anyone that is considering buying or selling a home. You may not think that interest rates matter if you are selling a home but this is not the case. I will give you a couple reasons why you need to pay attention regardless of buying or selling. 

History Repeats itself-

Historically interest rates do not stay low forever (wouldn’t it be nice if they did though). Interest rates have been below 4% for most of 2015 and look to be holding steady through the end of the year. In 2013 and 2014 interest rates spent a majority of the year over 4%. Go back to 2011 and interest rates spent a majority of the year just below 5%. The interest rates are not likely to change dramatically unless we have another housing bubble. While they may not change dramatically the difference between 3.75% and 4.75% will make a dramatic difference on your payment. 

If you're paying 4.75% interest on a $200,000 loan for 30 years you will pay roughly $133,000 in interest over the life of the loan. If you take that same $200,000 loan and drop the interest rate to 3.75% you will pay $176,000 in interest over the life of the loan. So that 1% that doesn't seem like such a big deal will save you roughly $43,000. This is not including the principal amount that you will be paying, factor that in and your $200,000 house cost you either $333,000 or $376,000. Now I don't know about you but I don't care to pay almost as much in interest as I do for the house itself. 

Time is of the essence-

So if you are considering buying or selling now is the time to do it. I don't know what interest rates will do in the coming months or next year but I do know they are as low as they are likely to get. This means that the only place for them to go is up. This affects sellers as well as buyers. For most people selling their home they will turn around and purchase another home. That combined with the fact that you are likely to get top dollar for your home in most parts of the country make it a great time to sell. This may mean more competition when you go to purchase but it also means you get to take advantage of the lowest possible interest rates. The more interest rates go up the less enticing it is for new buyers to enter the market which means your home values may drop. 

One last thought-

To sum it up, nobody knows what the future hold but history has a way of repeating itself. So whether you are looking to upsize, downsize or just get into a different area you have to ask yourself "will their be a better time than now"? So it is up to you, roll the dice and see where the interest rates land when you're ready to move or take the sure thing and move now. 

Hope, a simple word but one which carries with it the very fabric of existence. The effects of hope are undeniable and should not be underestimated. 

I am going to tell you why I believe hope is the most important motivator that exists. There are not many things that can break a person as quickly as a lack of hope can. This is true of any situation that you want to apply it to: goals, lifestyle, freedom, marriage, finances or even a shipwrecked victim. I will tell you how to keep hope alive or reignite it if it has gone out. 

To begin with let us define hope. 

• Hope is defined as-a feeling of expectation and desire for a certain thing to happen. That is generally true but I believe hope is that unseen force that keeps us moving forward and gets us out of bed every day. Deeper than that is the fact that will power is a finite thing. We only have so much will power to go around beyond that we need something more to pull us through the hard times.

Take goals for example

• Any goal is really fine, the specific goal doesn’t really matter because the underlying concept is the same. Any goal you set has a largely psychological side to it. It is not something tangible that you can touch or feel. Despite this it is always in the back of your mind (literally) telling you you're going to succeed or fail.

•  Dave Ramsey (a well know financial coach) advocates paying your debts off from smallest to largest. This may seem counter intuitive because it would seem to make sense to pay the highest interest debt off first. Paying off your smallest debt gives you a feeling of hope in the form of progress. If you don't feel like you're making progress that will power is going to fade and you're going to lose hope. No hope means what's the point of continuing to try? 

POW and Shipwrecked victims know it well

• These are both classic example that many have probably read in a book or seen in a movie. Take a shipwrecked victim on a deserted island or a prisoner in a foreign land for example. Both are in some of the most extreme circumstances you could imagine. What keeps a person going in a situation where they are in extreme or complete solitude? If you said HOPE then gold star for you. Hope can take many different forms, for a prisoner it may take the form of hope that he will be rescued or hope that he will see his family again. Hope will look different for different people but without it most will fail.

Don't let hope die

So all this to say that you need to keep hope alive. If you are lacking hope then try re-evaluating your goals. Set smaller more achievable goals or set daily, weekly and monthly goals. You don’t need to focus on the final or end result, if you are struggling just focus on today or tomorrow. Focusing on a goal that's to big can seem unachievable and cause you to lose hope of ever reaching it. Celebrate your success, don’t wait till you reach your final goal to celebrate. You need to keep hope alive and celebrate the weekly or monthly successes.  

Dont be house poor, three things to consider before you buy

You may or may not have heard of the term house poor, not to be confused with the poor house. It has a meaning just as it sounds, having a house that is making you poor. Along with your mortgage payment you should consider how, taxes, utilities and Home Owner Associations as well when looking for a home. Don't roll the dice on your future, have a plan.

Firstly you want to consider taxes, because unlike your mortgage payment interest rate taxes don't remain fixed. 

• For example, if you live in a big city like San Antonio, Texas that is rapidly growing then you have likely noticed home prices climbing. While on the surface this may seem like a good thing, along with the climbing home prices are climbing property values. 
• Why does this matter you might be thinking, it is an important factor to keep in mind because as your property value goes up so does your property taxes. In San Antonio, Texas taxes increase by as much as $200 a month in a single tax year for a average priced house. This means that your formerly affordable payment is no longer so affordable. 

The next thing to consider is the price of utilities and any extras that may be involved. For example does the home have a pool, hot tub or water softener? 

• If so what are your cost going to be to maintain said equipment. If it is a pool, you will have to pay to have it cleaned, there will be equipment repairs and the extra electricity usage for the pumps and equipment. 
• The average cost of owning a pool is $256 a month, this adds $256 to your monthly expenses. Water softeners will use electricity but more importantly many systems run on salt which has to be regularly replenished. There is also the consideration of whether the system is rented or owned. If it is rented then what is the cost associated with transferring ownership over. 

The final thing to consider also has the potential to cost you the most. Carefully consider the HOA (home owners association) before you sign on the dotted line. 

• While this may not seem like a significant deal but if you have a mandatory HOA then there can be significant expense associated in the form of dues. But beyond that the HOA has the authority to enforce any and all the bylaws. This can cover anything from the height of your grass, to exterior paint color and even the breed of you dog. 
• Depending on the laws of your state many HOA's have the ability/authority to foreclose on your home or sue you for things like unpaid dues or fines. It can get extreme and sounds a bit crazy but I have seen it happen, people lose everything over a dispute with the HOA that they legal may not be able to win. 
• This being said your realtor should ensure that you get all the deed restrictions and information related to the HOA. Make sure that your realtor does a mandatory HOA addendum to protect you as the buyer. 

Are you looking for the best San Antonio houses?

Best San Antonio Houses

The internet and home buyers from a real-estate agents perspective. 

The landscape of buying homes has no doubt changed, loyalty is dead and buyers are now a commodity. While this may be an overstatement, it is not as far-fetched as you might think. Unlike years past many buyers in today's market do not want to commit to just one agent. They want to be free to come and go as they please.  

 

 

 

What is a real estate internet lead?

 

 As a consumer looking for the best San Antonio houses you go to a website like Zillow or Trulia and you search for houses. While this is a great way to search for homes it also turns you into a commodity. Zillow (much like google) makes its money off the searches that people run. The more searches performed in a designated zip code the more "impressions" Zillow can sell to realtors like myself. This turns almost everyone searching into potential internet leads therefore it is to their advantage to keep people searching.

When you become a “lead” to a realtor (or agent) a process of converting you from a lead into a client begins. This will mostly happen behind the scenes and you will not be aware of it. The agent will do things like set you up on email, post card or calling campaigns. They will regularly stay in contact with you in an effort to be the person you call when you’re ready to purchase. The majority of people who start their home search online are 3-6 months away from being ready to purchase. That combined with the fact that over 90% of people use the internet during the process of buying a home make internet leads the hot commodity. 

 

Why agents look for business online!

 

Some home buyers are interested in working with just one agent from the start. However for the majority of people online they just want information or to view a house. More than likely u did not go online looking for a specific realtor, you just went with whomever happened to pop up for that particular home. The odds are pretty high that if you're a home buyer searching on Zillow, Trulia or other site you are not working with an agent. This may be by choice or it may be that you are still early in the process and don't yet need an agent. In either case agents are paying Zillow, Trulia, ect... for access to people searching in a given zip code. They are waiting for people to request information about a particular property and once the consumer requests information they become a “lead" which is distributed to the afore-mentioned paying agents. 

 

Until you commit, you are will remain just a lead that everyone is chasing and will likely miss out on the best San Antonio houses since they seldom last long. The reality is that by the time a home hits internet it has in many cases been on the market for several days already and has received multiple offers. As a realtor we have access to real time information no one else does which is the difference between getting a house and getting left behind. So the choice is really yours, you can remain a lead or commit to an agent and gain the status of client.

 

8315 Creek Bend Dr San Antonio, TX 78242

Property Site: http://tour.circlepix.com/home/ARFV6X

This home is currently leased for $800 a month with a renter into next year, making it a great investment opportunity. Start getting cash back out of your investment from day one. Here is your chance to own a great starter home or very reasonably priced investment property. House has all hard flooring throughout with, arched windows and chainlink fence around entire property. MLS# 1140231 for sale by same owner as well currently renting for $800 a month with renters into next year as well.

Bedrooms: 3

Bathrooms: 1.00

Square feet: 896

Price: $64,900

For more information about this property, please contact Michael Mershon at 210-493-0020 or michaelmershon@realtyexecutives.com. You can also text 3082647 to 67299.

See more listings at: www.gethousewowed.com

MLS ID: 1140237

8423 Creek Bend Dr San Antonio, TX 78242

Property Site: http://tour.circlepix.com/home/CGABC4

This home is currently leased for $800 a month with a renter into next year, making it a great investment opportunity. Start getting cash back out of your investment from day one. Here is your chance to own a great starter home or very reasonably priced investment property. House has all hard flooring throughout with, arched windows and chainlink fence around entire property. MLS# 1140237 for sale by same owner as well currently renting for $750 a month with renters into next year as well.

Bedrooms: 3

Bathrooms: 2.00

Square feet: 952

Price: $64,900

For more information about this property, please contact Michael Mershon at 210-493-0020 or michaelmershon@realtyexecutives.com. You can also text 3082639 to 67299.

See more listings at: www.gethousewowed.com

MLS ID: 1140231

555 COMANCHE PATH Bandera, TX 78003-4597

Property Site: http://tour.circlepix.com/home/5SFMV2

This amazing cottage style home has master bedroom down complete with whirlpool tub and walk in closet. With a large loft that could easily be converted into a third bedroom, multiple living areas, an eat-in kitchen, open concept floor plan and tons of outdoor living space, this is a perfect starter, vacation or retirement home. Riverfront park and multiple river access points in the subdivision are sure to bring you year-round fun. Adjacent lot to west of property (.8 acre)available for sale by same owner.

Bedrooms: 2

Bathrooms: 2.00

Square feet: 2,218

Price: $224,900

For more information about this property, please contact Michael Mershon at 210-493-0020 or michaelmershon@realtyexecutives.com. You can also text 2982095 to 67299.

See more listings at: www.gethousewowed.com

MLS ID: 1132435

209 N Calvin Barrett Blanco, TX 78606

Property Site: http://tour.circlepix.com/home/LHULC3

Motivated seller bring an offer prime corner lot in a gated hill country, resort style community. Financing is available with 20% down. Located just minutes from the new 250 Acre Singing Hills shopping center. The subdivision features the Vaaler Creek Golf course, resort style pool, fishing pond, equestrian center and clubhouse to name a few of the amenities that are included when you buy. Membership in the Golf Club (normally $12,900) conveys with the lot and includes three free rounds of golf a month.

Bathrooms: 0.00

Square feet: 13,504

Price: $39,900

For more information about this property, please contact Michael Mershon at 210-493-0020 or michaelmershon@realtyexecutives.com. You can also text 2982054 to 67299.

See more listings at: www.gethousewowed.com

MLS ID: 1132369

210 N Calvin Barrett Blanco, TX 78606

Property Site: http://tour.circlepix.com/home/S6KML9

Prime corner lot in a gated hill country, resort style community. Financing is available with 20% down. Located just minutes from the new 250 Acre Singing Hills shopping center. The subdivision features the Vaaler Creek Golf course, resort style pool, fishing pond, equestrian center and clubhouse to name a few of the amenities that are included when you buy. Membership in the Golf Club (normally $12,900) conveys with the lot and includes three free rounds of golf a month. Adjacent Lot # 209 for sale as well

Bathrooms: 0.00

Square feet: 10,454

Price: $29,900

For more information about this property, please contact Michael Mershon at 210-493-0020 or michaelmershon@realtyexecutives.com. You can also text 2982041 to 67299.

See more listings at: www.gethousewowed.com

MLS ID: 1132358

Why many home buyers of today fear commitment

Add caption

Why should I sign with just ONE agent? 

The biggest reason that you should sign with an agent is that it provides a buffer between home sellers, other agents and you. Without an agent you are a commodity. With a signed agreement you are essentially off the market. Assuming your agent is doing what they should and properly representing you than everyone comes out a winner. Consider these points when debating to sign an agreement: there is no set or required length of time you must commit to and the selling agent represents the sellers not you. 

• The thing to remember is that you can sign the agreement for as short as one day. This serves to ensure that the agent is there to act as a buffer between you and the homeowner/listing agent. The most common complaint I hear is that people don't want to commit to one agent. This is understandable and of course many people may have had a bad experience with an agent in the past. The thing to understand is that you are still in control of the situation. You control the length of time you commit for as well as many other factors depending on the agreement. The agreement does have some specific binding terms and should be read carefully before signing. 

• The listing agent is already representing the seller and therefore is not looking out for your interest. This is something to consider when you’re driving around and calling the signs in front of houses. Calling the sign number will almost always put you in contact with the listing agent. The listing agent is representing the sellers and is bound to do what’s in the best interest of their client i.e. the home owner. The listing agent may try to talk you into letting him/her handle both sides of the transaction, a term called intermediary. This is fine if you are comfortable with the process of buying a home and don’t need particular advise as the process goes along. By doing this the realtor/agent is representing both parties and therefore can’t give specific transaction related advise to either side. 

Assuming that you do not have an agent in mind that you would like to work with, than check reviews by others online. I have found that Zillow is amongst the stricter criteria for agents getting reviews posted. If the agent has 4 stars or better, than it is probably a safe bet that they do a good job more than they don’t. This isn’t to say that bad agents don’t get good reviews, but it is a good starting place. Don’t commit for 6 months unless you're very early in the process or comfortable with your agent. Give the agent 30 days and see how they do, if you are satisfied than continue the relationship, if not than walk away.

The true Iranian deal and the 98 that made it possible

The Iranian deal, perhaps the crowning achievement of Obama presidency. 


Not a legacy to the American people, but a legacy to the Muslim world. A legacy that puts Iran on a fast track to a nuclear weapon all the while giving them 150 billion dollars to continue funding terrorist. There is nothing in this deal that is good for America, but then when has anything Obama done been for America. As usual Obama thinks himself an emperor and the people we sent to Washington have as usual betrayed the country and the American people. 

America is going to essentially become the biggest sponsor of terror with this deal. With the release of the 150 Billion Dollars (back to the regime that wishes to wipe America and Israel off the map) America is funding terrorist. There is no other way to look at it, we brokered the deal and pushed for it on the world stage therefore it rests expressly at our feet.

I have seen several post related to the 34 Senators that voted against the Iranian deal. The question people should be asking is why that number is significant? The Corker-Cardin Bill required a 2/3 majority vote to override a promised veto from the president. Overriding the veto is the only way the bill has any effect. This was no secret and yet it passed with an overwhelming majority. That means we were betrayed by 98 of our elected officials not just the 34 democrats that eventually voted for the deal. 

The Corker-Cardin Bill was nothing more than politics as usual in Washington. It was a weak bill to start with and one that set the stage for a show vote on the deal. There should have been no bill to start with since this deal is a treaty plain and simple. Congress should have brought the deal to a vote as a treaty and done what we put them in office to do (keep the president accountable). We were not betrayed by the democrats, they did exactly what they said they would do. We were again betrayed by the spineless politicians and the Republican majority in both houses. 

The Republican party has time and time again betrayed the American people but never to this magnitude. It is nothing new but the stakes have never been this high and the consequences this grave. Had the deal been presented as the treaty which it is the president would have required a 2/3 majority for it to be ratified? This means that there would have been no deal and that America would be a safer place for it. The powers that be would have you believe that they did everything they could to stop the deal. They are banking on the fact that people will not realize the game they are playing but many do and it is time we took a stand before it is too late. I would like you to name one thing that America got in exchange for the massive concessions that we gave to the terrorist nations that is Iran. 

Why do people insist on taking politicians at their word? 

In what other industry or professions could you get caught blatantly lying and disregarding written laws without consequence? I can’t think of one other than politics. Where lying and deception seem to be the status quo. I am tired of the status quo and I think its time for the country to say enough is enough. 

When will people stand up and say enough is enough? 

• I have always been a conservative and I love America. Not what America has become, but the America that used to stand for something. Don’t get me wrong, I believe it still exist in the hearts of many Americans. Despite the spineless behavior of our elected officials I believe that America can be great again. 

• I am not even talking about Republicans or Democrats. The sad reality is that it is to the point that I cant even tell the difference between the two parties most of the time. The political class has no respect or fear of the people that put them in office. We have ceased to be a government of and for the people. Unless you are connected to the agenda of the current administration or the ruling class than you don’t matter. The sad reality is that despite the Republicans being in control of both the house and the senate there is no conservative change. 

Why bank robbers and illegal immigrants are the same!

• When we will we stop the madness that is political correctness and start calling a spade a spade? We can’t call illegal immigrants illegal because it is racist. What would you call people that sneak into our country illegally without any right to be here? If you said undocumented immigrants than the next paragraph is for you.

• How illegal immigration any different from a person who walks into a bank and take a bag full of money that doesn’t belong to him? The bank robber is just making an undocumented withdraw because he wants a better life. This is illegal and prosecuted with prison time (as it should be) but who is really hurt by this? The bank is insured and the depositors are protected so it is a victimless crime. Unlike illegal immigrants who come to America, get on welfare and/or take jobs from American citizens. Both are crimes however one is costing the American people jobs and money and one is not. If you look at it from a strictly logical perspective then illegal immigrants are by far worse than bank robbers. I am all for people coming to America for a better life, but there is a system and laws in place for a reason. By all means come but do it legally.

We the people…

When half the country is being supported by the government with no incentive to find work where does that leave the rest of us? It leaves the middle class being crushed between the rich who get richer and the welfare class that keeps growing. 

We the people who elected the spineless beings that are politicians need to stand up and fight. The constitution was designed to give the power to the people and keep it there. Washington has forgotten its place and it is past time that things changed. Do more than vote, get involved and make a difference. It is the start of an election cycle and the country is at a tipping point. There has never been a more urgent time than now to act. 

The biggest problem with money is...

How much do you value money over happiness? 

According to a pew research poll men are more likely than not to put earning over enjoyment when it comes to work. Why is it that men put money over enjoyment of their job? I want to examine a few questions below that I and I am sure some of you have struggled with.

How much is enough money to make me happy? 

• While the answer to this may vary from person to person it is probably along the lines of "enough so I don't have to worry about it". This is an understandable and reasonable response to the question but is it true? If you didn't have to worry about money would you really consider it enough. Maybe, maybe not, people tend to adapt to their circumstances whether they be good or bad. 

• If you had enough money that you didn't have to worry about it and could maintain your current lifestyle would you really be happy? I tend to think not, the fact that you didn't have to worry about money would satisfy until you tired of not working or got tired of your current lifestyle. 

Why we work...

• I believe that people work for a purpose, even if that purpose is not something that satisfies them. You are working because you love or enjoy what you do or you are working for the money. You really cant have it both way though. If you are working because you enjoy what you do then money is a bonus. If you are working for the money then you are not working because you enjoy what you do. Most people that take a job for money over enjoyment (which is most men) are doing it because they value money or something that money can bring more than they value job satisfaction. There is nothing wrong with this, I have had more jobs that I hated and did for the money than I did jobs that I enjoyed. 

Do you want something different

• I am a fan of changing things that I don’t like. I have had numerous different career paths since I was 18 and it took me a while to get it right. I knew I didn’t like a job so i went back to school to get a different specialty. I did this numerous times making progressively more with each job change. What I didn’t get with any of them was more job satisfaction. I had convinced myself that if I could make enough money than my job would be worth it.

•  I can say after 12 years of searching that this is not true. It is not an easy thing to take a job strictly because you love doing it. It may seem like a luxury that you can’t afford but I would challenge that you can’t afford not to. Money can’t buy happiness and when you spend 40 hours a week doing something you deserve to enjoy it.  

The How to 

• For me I had to reach a tipping point where I was going to make a change or likely be stuck where I was forever. There will never be a perfect point at which to do this and it will likely be very uncomfortable. But picture yourself at your job till you are in your 60's, does that really sound like a full life to you? If not then ask yourself one question, if I could do anything and money was not a factor what would I be doing? If you can honestly answer that question then you are likely well on your way to finding a job that you will enjoy going to every day till your in you 60’s and beyond . 

Do you hate budgeting or dieting more?

Debt is like that extra 10-15 lbs. of dead weight that you want to lose. Whether you have a lot or a little to lose you won't get there without a plan in place.

My wife and I started a low carb diet about a month ago. We have gotten great results from it in such a short time. While my wife didn't really need to lose any weight but she was doing it to support me (thanks babe you're the best). The point is that a budget is like a diet for your wallet it only works as long as you stick with it. So how do you keep the debt or weight out of the picture?

Stop dieting...

That is right I said stop dieting, diets only work as long as you stay on them. It is to easy to lose the weight and then gain it right back. You diet and lose the weight which is great but then what happens when you stop dieting and start eating without a plan? Unless you're a superhero (in which case you didn't need to diet in the first place) than the weight comes right back. This same concept applies to a budget. A budget is great for removing the fat (debt) from you financial life. But like a diet it only works as long as you do it. Stop the budget and start spending without a plan and the debt comes back. So what is the alternative? 

Make a lifestyle change...

As we discussed in the previous paragraph it is not enough to make a temporary change you need to make a lifestyle change. A lifestyle change is changing your way of living permanently. This is not to say that you can't use a diet (budget) to get where you want to go but you need to have plan in place to implement for when you get where you're going. My old drill instructor used to say that failing to plan is planning to fail. While I would never have admitted it at the time he was right. It is incredibly likely that if you do not have a plan in place you will slowly slip back to your old ways of doing things. If you were really ok with the way things were you wouldn’t have made a change in the first place. So why not make your hard work and sacrifice count for something by having a long term plan in place? 

The how (the way I did it anyway)…

Accountability is key, and will make the difference between success or failure. So find a person or people that have been where you want to be and ask for their advise. This is one of the simplest and surest ways you can get to where you want to go. There is no reason to reinvent the wheel or go at it blindly. It doesn’t even have to be a physical person, find an online community or website that has the plan in place for you. Wisdom comes with experience and most people are happy to share it with you if you will just ask.

Communication, money and the heartache that both can cause

The two biggest issues that can plague even the best marriages are communication and finances. I will cover three aspects of both that can save you endless trouble.

If you have ever heard of the book "men are from Mars women are from Venus" then you know that while the name sounds wacky there is a lot of truth in it. The fact that Men and women don't operate the same way goes without saying, but guys often wonder what makes women tick? While the answer to that is going to vary, it has been my experience that women thrive on stability. A lack of stability or a perceived lack of stability is going to be an issue in any marriage. 

Common Goal

• As Men it is our duty to be the provider for our families. If asked most men would say that being able to provide for their family is one of the single most important things they can do. That being said the needs of women for stability and the needs for the man to be able to provide are actually much more closely related than they might otherwise appear. This is a point I never understood until I got married and one that took many arguments to truly sink in. 

Communication is key

• I as the leader of my family was in control of the finances. I had things in control a majority of the time but I didn’t always keep my wife in the loop. We had large amounts of debt when we first got married and while we got by every month there were many fight over money. I did not take the time to explain our situation to my wife and involve her in the weekly and monthly budgets. It was not that I was trying to keep things from her I honestly didn’t think she cared and I didn't want to stress her out. My intentions, good as they were, completely backfired on me and left my wife feeling neglected and controlled. 

What is a budget if not a plan for your money? 

• I am a spender by nature and saving does not come easy to me. My idea of budgeting was spend money till it’s gone then go without till I got paid again. It was my responsibility as the leader to manage the budget. Unfortunately this was something that I never bothered to do when I was single so naturally it didn't happen easily when I got married. 

If you are single then start living on a budget now because the longer you wait the harder it will be. If you are married and don’t live on a budget then sit down with your wife and go over the budget together. Create a weekly or bi-weekly budget depending on how often you get paid and keep each other accountable. My wife and I have budget meeting every week to go over how we are doing and see where we stand. I manage the budget but by communicating with her she knows where we stand every week and can take solace in that fact.

How to avoid paying mortgage insurance on your next home

If we are being honest most of us could use a little more money. If you happen to be one of the few that doesn't need more money then you likely got to that point by having an eye for a deal. In either case I have a simple tip that anyone can use to potentially save them 20% on their next home purchase. That is potentially tens of thousands of dollars of market value. The reason 20% is important is that this is the point that you can stop paying mortgage insurance or PMI on your home with certain loans*.  I am going to summarize the main points you need to know in a few questions and answers.

What is mortgage insurance?

• Mortgage insurance is that pesky payment that does nothing for you, I repeat you get NO benefit out of mortgage insurance. You not only get no benefit from it, but most people cannot get a loan without it unless they are putting 20% down. If you are thinking what is this mortgage insurance you speak of? Simply put it is there to protect the investment of the lender in case you default on the loan. You pay every month to ensure the investment of the lender and it never lowers the amount you owe, now does it afford you any more protection it is solely to protect the bank.

What is the tip?

The tip is simple, mail all the houses in the neighborhood a letter. This sounds incredibly simple and it is, but the last time I used it I saved my client almost $200,000 on the purchase of their home (market value was $1,720,000 and we got it for $1,550,000). 

• So a couple questions that often come up, first where do I get a list of addresses and what should the letter say?
• The list of addresses is public information and should be available through the county of where the house is located, alternately you could ask a realtor that you know/trust to get it for you. 
• The letter should be short and to the point because people will not read it if it is lengthy. It should simply state what you want to do, namely buy a home in their neighborhood and list the reasons why they should consider selling.

The Envelope

• The most important thing you can do is avoid using a standard sized envelope. This is the most likely to be discarded since that's what bills and everything else comes in. Use a stationary or any square type envelope to increase your chances that they will open your letter. If you can hand address it or use a handwritten type font so much the better, the idea is that you want it to stand out from the rest of the mail. 

You can try the open market but that is where everyone is so the odds of finding a deal are slim. Your best bet is to think outside the box and do something few or no other people are doing. If you are working with a realtor then run this idea by him/her, it may not work for everyone but if you are looking in a specific area then it could work very well.