Sellers – Protect your interests and your money!

 I am starting to notice an alarming new trend happening during real estate transactions.  Sales not closing as per the signed and agreed to contractual closing date.  This is a violation of the terms of the sale, and grounds for termination of the contract by the seller. 

 Whether the delay is caused by the buyer, the lender, the association management company, the surveyor or the appraiser, is not the issue.  The issue is that the delay is costing you, the seller, money.  Real estate taxes, homeowner association fees and interest accrue every day the property is in your name, and these unexpected increasing expenses were not incorporated into the agreed upon sales price and contractual terms.

 Do you have recourse? Of course, you can terminate the contract and start over, or you can try to negotiate that the buyer be responsible for the increasing costs when they present you with an Amendment to extend the closing date.  Both options are unfavorable with the second adding risk to the negotiation and finalization of the deal.

 So, what do I suggest?  I’m working with an attorney to provide the appropriate legal verbiage to add to the Special Provisions section of the contract stating from the onset of the contract that the buyer will be responsible for any added expenses to the seller for any and all delays extending the closing beyond the original closing date as specified in the contract not caused by the seller.

 For you potential sellers out there, I just wanted to alert you to a potential issue, and provide you with ideas to advert loss of your hard earned money.

Written by, 

Bill Barkley, Owner & Broker for River Valley Real Estate

River Valley Real Estate

19202 Huebner Rd, Suite 100

San Antonio, TX. 78258

210-853-5327

www.rivervalleyre.com

The Big Five

The Big Five

In a very short and simple fashion, I am going to give you my best advice when you are buying a home. Especially if it is your first home.

 Let us assume you have selected the house you want to purchase, and you have negotiated a price satisfactory to both you and the seller.  Next, let us assume that you purchased a Termination Option period for days to complete and review property inspection reports, and you have ordered and received both a General Inspection as well as a wood destroying pest inspection.

So, now you have to evaluate the inspections.  Obviously, if the wood destroying pest inspection indicates an active infestation, you must negotiate a reasonable solution with the seller. So, I’m going to treat this issue separate from the issues within the general inspection.

A general inspection can often times be both daunting as well as discouraging to read.  Inspectors are required to note all deficiencies including items not meeting the most recent building codes.  Their intention is not to make the home appear as if it is falling down although the report may seem otherwise.  As a general rule, I typically read the report, and mark all noted deficiencies with a highlighter.  I also make notes on the side such as “current building code”, “easily fixed” or “Home Depot”.

  That is unless the issue pertains to one of the Big Five.  The Big Five consist of the following: the foundation, the roof, the plumbing system, electrical system and the heating and air conditioning system. All five of these components can require substantial money to remedy or repair, and some such as the foundation can possibly be a lifetime battle.  Most inspectors will recommend getting a qualified inspector, licensed technician or a structural engineer to further inspect the issue.

Heed this recommendation!  It is in your best interest with regard to your finances as well as your personal happiness regarding your new home.

Written By, Bill Barkley, Owner and Broker of River Valley Real Estate

19202 Huebner Road

San Antonio, TX 78258

210-853-5327

Remodeling. Being your own Contractor!

 
    Taking on a home remodeling project is not without its stresses but can offer many rewards. Whether it’s a project to make the home more your own, adding a long desired additional space, or a forced remodel due to a repair issue or fixing it up to sell...there are certain things that you'll need to consider before diving in. It is a matter of what you are wanting to accomplish in the end?

    Before starting a remodel project, you need to consider if this is something that you can do and manage on your own? Or do you need to hire a contractor to plan, purchase and coordinate to get this done?
   When doing a project on your own you need to have contacts for electricians, plumbers and people who can do the work that you are wanting.  You also need to be able to purchase the materials for these workers, such as the flooring, tile, counters, fixtures, the grout for the tile, paint, etc.   If you feel you have the contacts and know where to purchase these items then perhaps you are ready to be your own contractor!  If you feel this would be too much for you then it may be wise to interview a few contractors and hire one to help in making your vision a reality.   *For both routes, you will want to make sure you have at least 2 bids on costs to determine that you are not overpaying. 

Kitchen Before

When I found my home I knew there were things that needed to be done to make me happy and that a remodel was in my future as a home buyer. As an agent I also wanted to keep it within reason, always keeping resale values in mind.
 The kitchen is where I started, the cabinets were really old, appliances outdated and I really believed that this would have to be a total redo.   Then I stepped back and considered what I could restore myself which would save me money in the long run.  The cabinets may have been old and a little dirty but they were real wood and nothing was broken! So with a little elbow grease and $40 in paint I was able to transform the cabinets which left only the counter and appliance update cost. 

            

Kitchen After Remodel

I chose a granite counter top that pulled all my colors together really giving my kitchen a traditional and warm look. *Often granite stores will sell remnants of granite at a much cheaper price...just ask! 

 As with many in San Antonio, TX foundation issues can come up.   If you have a slab and your foundation starts to slope, the only way to fix is to specifically place jacks (lifting equipment similar to a car jack) to level the home.   Many times the foundation repair company will have to open up your floors and drill into the slab inside to properly level your home.   This may be traumatic for you as additional damage is necessary to repair the issue but I see this as a way to do another remodel to the home.   In this case, the company had to drill into the hallway ripping up the tile in the process. 

   As you can see, the foundation repair was extensive.   The entire time I told myself these holes will be covered up and soon I will be able to enjoy new floors.   For a while I wondered should I replace what was originally there or do something different.  As it is me, I went for something different and give it a more upgraded feel.   The living room was already redone with wood flooring and only the hallway and family room were left as tile, due to the cost of ripping up the tile.   So I took the opportunity to expand the hardwood to include the hallway as the tile was now ripped out.  The result came out great. 

Hallway Floors Before

*When going through an issue like this, always remember to check with your insurance company.  Most of the time they will cover the full cost or give you a cash out if wanting to make changes that are more expensive. 

As the tile was ripped out by the foundation company that cost was saved which allowed the hardwood to be put in.   

Hallway Floors After

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    Remodeling can be a major project but the reward can be even greater.   As the market goes up and availability starts to become less buyers have to think outside the box in order to find the kind of home they're looking for.   As we all know area is the biggest aspect in all buyers’ minds, but the home you are wanting may not exist or be available. Which is why to remember that if the home is the right size and in the right area then think if you did some remodeling, will this home be perfect for you.

Travis Reed, Associate Broker for River Valley Real Estate

19202 Huebner  Road, Suite 100
San Antonio, TX 78258
210-853-5327

Sharing some expert real estate advice...

Having been in this industry for over twenty years, I've picked up a few things I feel are important for everyone to know.  They may seem fairly straight forward and many may consider each to be inconsequential until that day comes when one of these issues arises.  So, I’m going to share my thoughts about property surveys, title companies and the appropriate way to respond to an offer as a buyer or seller.

Surveys

How many times have I had a client fuss about having to buy a survey?  The answer is way too many.  The question is, why would you not buy a survey?  A survey certifies what you are actually purchasing in terms of both the boundaries and size of the property.  Contracts now have verbiage which can allow the sales price to be adjusted for differences in size.  It shows you easements, flood plain, improvements and most importantly encroachments, all of which can detrimentally effect the property.  Many people are satisfied with the owner’s previous survey, and an affidavit stating the survey is true and correct to the best of their knowledge.  The surveyors don’t like this, the title companies don’t either and neither will your lawyer, if and when an issue arises.  Typically, the cost of a survey is less than 1% of the cost of the property, and that is the best 1% you will ever spend.

Title Companies

Is it the buyer’s right to choose the title company in Texas? It should be because the insurance is for the buyer’s protection.  However, most listing agents list a title company of choice on the MLS system.  If you are a represented buyer and select your choice of title company, you may be asked to pay for the title policy.  I have personally witnessed such a situation, and I have to question whether the seller or the agent is responsible for the negotiation.  Why would the seller care which title company is used?  The first question to ask yourself would be, what is the purpose of the title company?  They act as the escrow agent, order or prepare the deed, order or run a title search, prepare the settlement statement, close the transaction and most importantly provide the buyer with title insurance.  A quality escrow agent is as important as a good closer, and frankly the vast majority of title companies I have worked with were more than capable at both.  The deed is very important, and is drawn up typically by an attorney.  Leaving the title search, commitment and title insurance, which is a large expense as well.  These are processes of the same item, and in conjunction with the survey protect your ownership interest in the property, far and away the most important aspect to the buyer. So my advice is to do your research and demand your own title company.  

Responding to an offer

When I started in the real estate business delivery was by mail or by hand, then by fax and now we have e-mail.  Back in the day, verbal responses to offers were not common because they were not considered binding.  When you received an offer or counter offer, you discussed the best options with your Realtor, and signed the paperwork.  Deals were clear, and completed rather quickly.  Today, technology has gotten in the way.  Realtors and their clients often choose to respond verbally, and extend their response via a brief e-mail or text. A lot of times it comes from a mobile device which some consider efficient however I would call it too easy. I would hate to think my home purchase was being negotiated while my agent was shopping, at the movie or on the course.  After all, this is one of the largest transactions most people make in the lifetime.  It should be noted that with the rare and few brief exceptions, these responses are still not considered binding.  I demand that all my agents have their offers and counter offers signed by their client.  Why?  I believe face to face or one on one discussions between the Realtor and the client with decisions made clearly in writing provide the absolute greatest opportunity for successful negotiations.  For example, during a transaction, an offer is made in writing and the seller counters in writing.  The buyer reviews the counter, and agrees with the terms.  They sign, all terms are agreed to, and the deal is an effective contract.  Simple.  In the other case, the offer is made in writing, and the counter offer is made verbally being extended via e-mail from the seller’s agent.  The Buyer’s agent discusses with the buyer, and they accept the counter with an e-mailed response.  Next, they receive a call that the seller has accepted a better offer.   Stinks, doesn't it?  What can you do?  Sue, if you have the extra time and money, or move on to another property with a very bad taste in your mouth.  You might be saying, how often does that happen? It is actually becoming a fairly regular occurrence.  I would add that this does not only happen to buyers, but to seller’s as well.  I mentioned previously that I demand all my agents have all their offers signed before presentation to the other agent.  Do we meet this standard 100% of the time?  No, because when there is nothing to sign from the other party, what can you do?  If you draw up new documents and have your client sign, you have extended a new offer as opposed to responding to a counter offer.  This effectively ends prior binding negotiations, and opens the door for other potential offers.

 So, what can you do?  Well, you blog about the importance of this issue, and hope to gain some public awareness about the importance of handling real estate transactions clearly, concisely and appropriately to ensure your highest probability for success.   If successful, people will begin to demand to again respond in writing during real estate negotiations.

Written by Bill Barkley, Broker at River Valley Real Estate