Paula Christo

As most of you know, the expansive clay soils in the San Antonio area behave much like a sponge. When the soil dries - it shrinks. When it is wet - it expands. I am hearing stories from all over town about serious foundation problems occurring in a matter of a few months. The culprit is our long term drought. To minimize movement of your home's foundation, you should keep the soil moist and expanded. You should water from the edge of the foundation to about 5' outwards to maintain moist soil. This could save you a lot of money. Since we are on water restrictions, you will want to make watering around your home a top priority. If you see signs of drywall cracking, floor covering material with cracks, or sticking doors you will need to water immediately. When the moisture absorption and dissipation is uniform, the structure may resume a stable position. Hope this helps!

Understanding Realtor's Commission

I work with buyers and sellers every day and realize how confusing it is to understand how realtors are compensated. It is also confusing to understand where the money comes from - and where all that money goes.

To understand commissions you must first understand the law of agency in the state of Texas. That is - who works for who. When you work with a realtor in our state the realtor can represent either the BUYER or the SELLER. They do not represent either party if there is an INTERMEDIARY AGREEMENT. Remember that when you ask a Realtor to show you properties. He/she is representing the seller unless you sign a buyer's representation agreement with them. (He gets 3% either way - so why wouldn't you want to sign him/her up to represent you and not the seller?)

Listing agents determine their fee. For simplification purposes, let's say a listing agent charges 6% for listing a home. Even though the listing agent is getting 6% - he sets aside 3% of the 6% for the agent that is going to be bringing him a buyer. (Please note: Buyer's agents don't usually like to take less than 3% for their efforts - so to offer a buyer's agent less than 3% is not a good idea.) That leaves 3% for the listing agent to keep. But wait - that is still a lot of money. Where does it all go?

THE LISTING AGENT - listing agent then pays:
30-50% to his company and/or relocation company (for office building, advertising, training, education, etc)

20% to 35% - to the IRS, 12% to Social Security and 3% to Medicare, since Realtors are self employed, and Errors and Omissions Insurance for the transaction (about $100 per transaction)

That leaves about 30% for monies spent to market the home and profit (websites, advertising, virtual tours, signage, gasoline, lockbox, copies, flyers, time, business cards, MLS dues, picture taking and editing, digital camera, etc)

THE BUYERS AGENT - buyer's agent pays:
30 - 50% to his company and/or relocation company (for office, training, risk management, etc)

20% to 35% - to the IRS, 12% to Social Security and 3% to Medicare, since Realtors are self employed, and Errors and Omissions Insurance for the transaction (about $100 per transaction)

That leaves about 30% - for realtor's expenses and profit (car expenses, NAR dues, supra key to get in lockbox, time to do several market analyses, MLS dues, continuing education, time spent looking at listings for potential homes, lunch for clients, (and all over again if the deal falls through)

THE BUYERS AGENT FOR A NEW HOME:

Many buyers do not see the need to use a REALTOR ® if they are purchasing a new home. However, builders put the cost of using a REALTOR ® in the price of the home whether you use one or not. The nice men and women that serve you warm cookies and coffee and treat you very well are still representing....THE SELLER/BUILDER. You have no representation in this transaction. Why wouldn't you want to use a realtor to represent you? For free.

I welcome your comments and questions on this one.

AS A BUYERS AGENT...........

When I have a client who is interested in purchasing a home, I want an inspector who is reasonable, honest, thorough and will take the time to explain exactly what the problem is to my clients (in simple terms). I have a list of several inspectors that meet these criteria, and I usually encourage my buyers to choose one from the list. Our office requires that we use only inspectors that have E & O (errors and omissions) insurance. That way, if there is ever a legal issue - their legal fees will be covered.

By law, all inspectors have a list of items that they inspect and evaluate. In addition to the general inspection, I also recommend a WDI (Wood Destroying Insect) inspection. This will check for termites, as well as carpenter ants. Carpenter ants are quite prevalent in San Antonio, and they can do as much damage as termites. I also prefer inspectors who measure the elevation of the home from the front door to the back and from side to side. This is very important in San Antonio with our clay soil, and gives a good indication if there are any foundation issues that might need further evaluation.

I stress to buyers that the main issues we would want to be addressed are health and safety issues. We would also want an awareness of items that may be nearing the end of their useful life - especially expensive items like a roof, air conditioner, or water heater. This might make a difference on how much the buyer would be willing to pay for the property.

AS A SELLER'S AGENT......

I recently represented a SELLER of a 20 year old home. The inspector that came in did a terrible disservice to both the buyer and the seller by exaggerating and giving out misinformation. I felt his entire objective was to find as many small items as possible to alarm the buyer and seller and get more repair money from the seller. The buyer's agent seemed to delight in the long list of items that the inspector found and bragged about having a ‘tough inspector' before he even came out. When my seller scrambled and got licensed electricians, plumbers, and HVAC repairmen out - many of the items he wrote up were not a problem and did not need to be repaired. This was an added expense to her, and created a distrust towards the inspector and his report. This is not a win-win situation for the buyer or the seller. It was hard to prioritize the long list of repairs - especially when several licensed tradesmen said that there was nothing wrong with several of them.

My advice:

Choose inspectors wisely. Ask your REALTOR to make several recommendations, then call and talk to each one and choose the one that is most likely to fit your needs and situation. The goal of all parties involved should be:

•1. Find out issues with the house so the buyer truly knows what they are getting into

•2. Repair or compensate for issues, if needed

•3. Proceed to closing if the buyer did not find anything that would keep them from buying the home

I made a trip out to Hill Country Retreat again last week. It is a community for age 55 and better residents. It is near 1604 and Highway 151 (Close to Sea World). I had sold a home out there about a year and a half ago. It has really filled out since then. It is a gated community with about 2,100 homes planned. They are currently up to 300 homes and counting. The houses are all one story with floor plans ranging from 1,300 to 4,000 square feet. They are priced from the 160's to the 330's. There are absolutely no ‘spec' homes out there anymore. However, they are telling prospective buyers that they can build a home in 3-4 months.

Of course what makes this subdivision different is the social club of the community. It is a 28,000 square foot amenity center with an indoor pool, running track, weight room, locker rooms, and library. There is also an art room, ballroom, and multipurpose rooms . A quick glance at the bulletin board showed a bridge club, Bible study, book clubs, bowling, cards, and cigar club - just to mention a few. There was a group shot of residents that had gone on a cruise together, and photos of their recent parties, potlucks, and ‘golf cart' parades. Residents have two pools, tennis courts and miles of walking paths outside the amenities center. Pulte is the builder and the only big disadvantage is that there are not many options or ‘customization' of the homes - but then again that is probably what keep the costs of the building down, too. It looks like a great place for active retirees! If you are looking for an active adult lifestyle in San Antonio, this is a great facility and neighborhood.

If you would like to find out more about Del Webb's Hill Country Retreat, give me a call. I would be glad to take you on a tour of the community. As with all NEW homes, the salespeople who give you those great chocolate chip cookies are representing the seller (BUILDER) - not you. The cost of using a realtor on any new home purchase is already built in - so you will pay it whether you have a realtor or not.

Here is some great information provided by my friend, Kim Kraemer. She is an interior decorator, and I asked her to share some information about recent trends in window treatments. I think I am going to try the UV treatment for my office windows - maybe that will help keep my office cooler on these hot Texas summer days..................

LATEST TRENDS IN WINDOW TREATMENT FASHIONS

Just like the Fashion Industry moves from long skirts to short, glam and glitzy to sleek and contemporary, so follows window treatment trends. Remember the drapes puddleing on the floor (and sometimes the dog piddling on the drapes on the floor)? Well, that trend has passed. So, what's in?

Less is more. Gone are the days where large luxurious light filled windows, with beautiful architectural features, are hidden by heavy pleated drapes. Outdated window coverings are being replaced with solar blinds and screens, or other soft treatment shades, with just a touch of fabric, through stationary panels residing next to the windows. With 10', 12', 14' (and more) high ceilings, these stationary panels reach from ceiling to floor with small rods (usually 14-28 inches). Natural fabrics, such as silk, linen and cotton are great choices for drapes and sheer panels.

Sustainable design and energy efficiency are the new buzz words. Manufactures have responded by developing eco-friendly and energy saving options. Bamboo and woven wood shades, honeycomb and blackout blinds, fabrics that can be used indoors and out, that won't fade, are being introduced into the marketplace, on a daily basis. Energy efficiency and UV ratings have improved.

The blind/shade industry has responded to these larger window sizes by offering more choices and larger sizes of window coverings. Often, shades are mounted inside the window frame. Remotes, that raise and lower shades, are the latest trend. These controls can be either battery powered or hard wired. One remote can control multiple blinds. Heat sensing shades that raise and lower, based on time of day, help homeowners save energy, even when they're not home.

One way to minimize heat, and save energy, is to have window film installed on windows, especially west facing windows. New technology has improved both UV and heat blockage ratings, as well as look and maintenance, of these film products.

All of these options transcend individual client tastes and can be incorporated into your existing home, whether it be traditional, contemporary or somewhere in between. So, the next time you are looking for something to update your home, whether buying, selling or just freshening up, consider dressing your home in the latest window treatment fashions. Your home will love you for it and you'll love your lower electric bills.

Article furnished for Paula Christo

by:
Kim Kraemer, ASID

K. Rue Designs

210-274-3637