I had an e-mail from some clients overseas asking about the average price per square foot in ZIP code 78249 to help them decide whether to make an offer on a second home and for how much. They saw the Board of Realtor statistics published from December and were wondering if the average price per square foot would fall to $75 to $78 in this neighborhood. Here's the gist of my reply, recycled for the blog in case it's interesting to others:
The problem with ZIP codes is they are funny shapes and 78249 goes all over the place-I know because I used to live in it and I still have a rental property in it! The two are wildly different. The average price per SF is not a meaningful number, because the ZIP code contains a variety of homes. San Antonio is now the eighth-largest US city, so we are talking about a lot of homes, too.
According to the local Board of Realtors, sales prices are projected to stay level and even rise into the spring and most of the new-home inventory is expected to be sold by the end of the year. Because San Antonio has reasonably priced real estate that has not shot up in value, it is not expected to go down much either. There was a slowdown last fall, in the lower price ranges especially, because of the subprime mortgage industry trouble, but homes in good condition and well priced continued to sell. There is a six-month inventory (last time I checked anyway), which is skewed towards a buyer's market, but nothing like Las Vegas, Miami, San Diego, or Tampa.
When I do a search on the MLS of single-family homes that have sold to date since September 1 in 78249, I get the following results: the lowest priced were 10 homes under $100,000. Two homes sold for over $1.2 and $1 million respectively; followed by three over $500,000 and three in the mid- to high-$400,000s. Of the rest, 44 sold for $200,000 to $300,000; 110 sold for $150,000 to $200,000; and 91 sold for $100,000 to $150,000.
With these figures the average sold price for all of 78249 was $178,057; the median was $159,853; and the average sold price per square foot was $85.
However, the sales price per square foot also varies a lot with the size of the home. There is a certain "base" price per square foot that it takes to build any house. Then as you increase the size, you reach efficiencies of scale. On top of that, of course, you add the features and finish-out: a mansion will obviously cost more per square foot because of the marble floors and gold faucets than a regular tract home. But different-sized tract homes in the same subdivision, by the same builder, even with the same degree of finish-out, will have a different price per square foot. You'd have to know exactly how many homes sold and for what size, and what features they had, for the average price per square foot to be useful in a large area such as a ZIP code.
This concludes the broadcast portion of my message to my clients.
Now I'm a big-picture person myself, and I love to look for trends and patterns, but sometimes you have to zoom in a bit to see the trees in the forest.
Or in this case, zooming in even further to see the daffodils among the trees! This was taken in 2004, and the squirrels have probably eaten all the tasty flowers by now. But if we get some nice new tenants who want to plant some more, I'll buy the bulbs!
San Antonio has a diversified, growing economy and continues to add jobs. One of my favorite sectors as it relates to investment properties is the medical/biotech industry. Until recently, hospitals were located mainly downtown and biotech, research, schools, and other medical facilities were concentrated on the northwest part of the city at the South Texas Medical Center.
In my opinion, the Medical Center area has long been one of the best areas for investment properties because it attracts prospective tenants with well-paying jobs as well as students and interns the University of Texas Health Science Center. Methodist Hospital, Christus Santa Rosa, and ancillary clinics and doctors' offices are clustered in the area, which continues to expand north. The South Texas Oncology and Hematology and South Texas Accelerated Research Therapeutics are working together on the construction of a cancer treatment and research facility, with the planned opening at the end of this year. Other major employers, such as USAA and Valero Oil, are located nearby, as is the University of Texas at San Antonio, the second-largest UT campus.
But the gigantic planned community of Stone Oak is rapidly adding to its offerings of medical facilities, too. The new Methodist Stone Oak Hospital, set to open in the spring of 2009, will serve an area with a higher-income demographic in general than the Medical Center. Tenants are filling up the 81,000-square-foot Plaza at Concord Park in Stone Oak. In addition, construction on the first medical office building in Agora Palms, a 69-acre mixed-use development next to Methodist Stone Oak Hospital, is under way.
The major difference between the two areas is in price. Many of the neighborhoods around the Medical Center are made up of older (than 20 years) and/or smaller (than 1500 square feet) homes that are priced at or under San Antonio's median price of $150,000. They are in Northside Independent School District, a well-regarded school district, as well as the fourth-largest in Texas. Over the last few months, single-family homes in the area of the Medical Center/UTSA/USAA have ranged in price from $100,000 to 7 times as much for homes near the prestigious Oak Hills Country Club. The average sold price is $160,000, and the median sold price is bang-on San Antonio's median of $150,000.
(5702 Charlie Chan, a 4-bedroom near the Medical Center available for rent by yours truly for $1,149/month)
The Stone Oak community is in North East Independent School District. The property tax rate in North East is a little higher, and (possibly as a consequence) there are more schools rated exemplary by the Texas Education Agency here than any other school district in San Antonio. In the last few months, the homes in Stone Oak (a much smaller market area than those around the Medical Center) ranged in price from $140,000 to the $600,000s, with an average sold price of $258,000 and a median of $249,000, and were brand-new to 20 years old.
An alterative to the high prices in Stone Oak, but still close to the medical facilities, is the Encino Park group neighborhoods located just on the other side of the east boundary of Stone Oak. Sold prices range from $140,000 to the high $300,000s, with the average being $221,000 and the median sold price $201,000. They are also located in North East school district, and range in age from new to the mid-20s, with most being under 10 years. Growth is continuing north along Highway 281 and new-home prices per square foot are naturally higher than those for resales, making these homes in an established neighborhood attractive.
(2831 Sierra Salinas, a 4-bedroom home I sold in 2006, located in Woods of Encino Park, which recently rented for $1,425)
Single-family homes tend to be located along a spectrum from income at one end to capital gains at the other. If you're strictly interested in cash flow, you may want to stay with the Medical Center area. In the middle of the spectrum, you could head farther west into the general area of Northwest Crossing and Braun Station, the attractive established neighborhoods that can also appeal to military residents from Lackland AFB to the west. If you want more high-income tenants or future buyers, growth, and future appreciation, Stone Oak might be what you're looking for, with Encino Park being in the middle of the spectrum.
One of San Antonio's largest employers, Fort Sam Houston, will be getting even bigger in the next few years: $1.5 billion bigger. Fort Sam (as it's known here) has 19 new buildings on the way, and another 4 buildings scheduled for renovation under the 2005 Defense Base Closure and Realignment Commission--somewhat ironically, since many San Antonians vividly remember the closure of Kelly AFB, another huge employer in the military city.
Fort Sam has a long history of caring for wounded soldiers. It is home to the Brooke Army Medical Center (BAMC), which is a Level 1 trauma center with a world-renowned Burn Ward. The Joint Center of Excellence for Battlefield Health and Trauma Research is the next project on the books. It broke ground last week and is scheduled to be completed by the end of 2009. The 150,000-square-foot facility is costing $92 million, and is only one of the new construction projects to support health training and battlefield care.
When all the dust has settled, 10,500 more people will be added to Fort Sam's payrolls, both military and civilian personnel. This means that San Antonio's need for housing in the north-central and northeast area of the city, both for rentals and primary homes for military personnel and their families relocating here, will continue to grow in the near future.
I collect old postcards from places I've lived and visited. Here's a nice one of the Fort Sam Quadrangle. I used to go there all the time to pet the deer and rabbits. The ducks and peacocks were harder to get close to.
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I specialize in residential properties in the north San Antonio metro and Schertz - Cibolo areas, second homes near the Guadalupe River, military relocations, and rehabbing older homes
I was born in Texas and grew up in San Antonio. I came back to my hometown in 2003 after moving to Hawaii in 1990 and then England in 1996. I managed a rental property in Hawaii and invested in real estate in England, so my market niche became property management and sales of single- and multi-family homes. San Antonio changed a lot in the 14 years I was away, and continues to grow and diversify--geographically and culturally. Despite its healthy economy, the cost of living here is still low compared to similar-sized cities, and real estate is very affordable.
I enjoy working with international clients who are attracted to San Antonio and the Hill Country for their excellent investment possibilities and vacation properties, especially waterfront homes. I am an Advisor for the National Association of Residential Real Estate Investment Advisors (NARREIA). I also work with military transferrees, relocations, and foreign buyers who are delighted to find out how much real estate they can buy in affordable San Antonio. I'm a Certified Residential Specialist and an Accredited Buyers Representative, and have a Transnational Referral Certification.
I work mainly in the northwest, north-central, and northeast sections of San Antonio, Bexar County, as well as in the Cibolo/Schertz area, where I live. I also help buyers and sellers in Guadalupe and Comal counties, and I love the Guadalupe River area around New Braunfels and Lake McQueeney.
I recently joined the By Referal Only network, becoming a real estate consultant for my clients' lives!
I specialize in buying and selling single-family homes, many for residential investment as rental properties, and helping with relocations, including military, to the San Antonio area. I also help with rehabbing and remodeling in some of San Antonio's beautiful older neighborhoods. I mainly work with buyers, since I love finding the "right" property, but also really enjoy the marketing side of listing homes for sale or rent.
I especially enjoy welcoming people to San Antonio who are relocating here in the military or with a job transfer and need to find a home in a city they may not be familiar with. San Antonio has several military installations, including Fort Sam Houston Army Base, home of the world-renowned Brooke Army Medical Center; Lackland AFB, where most of the Air Force trainees go at one time or another and Wilford Hall VA hospital is located; Randolph AFB, with its pilot training; and the former Brooks AFB, now Brooks City Base and host to a Centers for Disease Control facility.
For my investor clients, I take the long-term approach to invest in single-family homes for break-even or positive cash flow and/or future appreciation. Rehabs and remodeling projects can be rewarding; especially those that could be rented after, or even during, rehabbing to take advantage of lower capital gains rates after one year's ownership. All of the properties I help my clients acquire must have features that would appeal to both good-quality tenants as well as future home buyers for resale purposes.
I look for good investment properties in the northeast and northwest parts of the San Antonio metropolitan area, near major employers and the Medical Center, which is where I grew up and where I still work with a lot of my investor clients. Neighborhoods close to Fort Sam Houston and Randolph AFB are others that attract tenants. The city is growing in practically every direction now, but I still have a fondness for the older neighborhoods with lots of trees.
For sellers, I am a convert to staging to make a vacant home more appealing and I offer this service. Most buyers--and prospective tenants--are unable to see past the cosmetic issues of a house. I'll give my recommendations for preparing a home for sale or lease, and I have assembled a terrific team of people who do excellent work for a reasonable price. I want every home I list for sale or lease to look better than the competition.
From the buyer, and then later the seller, of a duplex:
I wanted to share the fantastic experience I had working with Robin Rogers buying my first investment property in Texas. I found Robin's contact information from an article, gave her a call and within a day or so we were in action over phone and e-mail looking for my investment property. Robin is a fantastic communicator, always quickly answering my questions via e-mail. She connected me with extremely helpful folks (inspector, appraiser, property manager) who all worked closely with Robin and myself to make my long distance investment process very smooth.
From a couple in the Air Force who saw the home I found for them for the first time when they arrived to move into it:
We love the house and the area. We couldn't be happier! We very much appreciate all your help in finding it.
From the sellers of a home I managed and subsequently listed for sale (a couple of my many clients whom I've never had the pleasure of meeting):
We have truly enjoyed working with you and we truly appreciate all of your hard work. I know you are moving away from the property management business but if any of your clients ever ask for a business reference, don't hesitate to give them my name.
From the sellers of a home and lot, both near the Medical Center, who transferred out of state:
Where do we begin? We will start with a huge thank you for making the real estate business simplified! You made everything seamless! From our very first interaction as buyers a few years ago to our recent transaction as sellers, you have been not only a wealth of resourceful information, but also courteous, patient, and determined. With everyone's busy schedule these days, what a client wants and needs is someone who can break down the complicated real estate jargon, set reasonable expectations, and possess good follow-through. You absolutely shined in every one of those aspects!
From the buyers of two rental homes so far, the second of which they have not seen (and since they moved out of the country, they may never see):
If there's a Robin Rogers fan club, sign us up! When we found Robin's name through an internet search for San Antonio Realtors, we had no idea what a terrific experience was in store for us. As out-of-towners, we depended on Robin's expertise to guide us through the San Antonio real estate market. Both times we worked with Robin to buy rental properties, Robin steered us to winner houses that quickly generated income for us. Her advice was unbiased and spot on, and her commitment to us and our expectations was unsurpassed. You would be hard pressed to find a more competent and caring Realtor in San Antonio.
From anxious first-time home buyers from California who wanted to move closer to the kids' grandparents in Schertz:
I want to say thank you so much for all of the help you have given us. You were so wonderful throughout the process and found us great lenders as well. We couldn't have made it without you, so thank you so much!
From an investor in the military from Chicago whose wife is from San Antonio:
What was I looking for in a Realtor? I'm concerned about a few things. They have to deal with a lot of investors. I think it's a completely different thing for a buyer's Realtor to deal with someone looking to buy a house they will live in compared to a house they will rent out. They have to respond to your calls, emails, questions and concerns in a timely manner. This goes without saying, but I was surprised that I have called or emailed at least three other active Realtors and did not receive calls back from them. Obviously a Realtor needs to be familiar with the area, neighborhoods, schools, crime statistics, where appreciation is most likely to occur, and basically which neighborhoods are improving and which are declining. My other requirement is that the Realtor doesn't agree with me all the time. I would like my ideas to be thoughtfully challenged. I don't want to be surrounded by people who do nothing but agree with me. Why do I need another me? I require someone who ultimately carries out my will, but who helps to clarify my thoughts and plans by not blindly agreeing with me on everything.
I was lucky to find Robin Rogers. I Googled San Antonio investment Realtor and found her blog as well as some articles she had written for the National Association of Residential Real Estate Investment Advisors (NARREIA). Got that? It's a mouthful. I liked her right off the bat for a few reasons: she responded to me very quickly and we opened up with a very nice conversation about my investing goals and what she was able to provide; she understands the area; she spends time blogging and connecting with other bloggers which, I think, is like a form of continuing education; she owns investment properties herself; and she independently offers her advice even when she knows it is different than my thoughts.
Robin has been great about dealing with the seller, sending me listings that I may be interested in, and having a great network to recommend to me. She recommended a great inspector, which helped me to get a new roof from the seller, as well as a mortgage broker, accountant, and handyman. These were particularly helpful since I was new to the area.
If you're looking for a Realtor that focuses on investment properties, I would recommend looking for someone that has these traits. If you're in the San Antonio area, you should contact Robin and see if she would be a good fit for you. Check out her blog at activerain, and check out her Web site for more information.
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