5 Things To Expect When You’re Under Contract

5 Things To Expect When You’re Under Contract

After searching for the perfect home, you’ve finally found the one and have an accepted offer. What happens next? If this is your first go-around the process can seem like a bit of a mystery but the next 5 steps should give you a decent roadmap.

1 Your Option Period

We typically (read almost always) include an option period with your contract. During this period of usually 6-10 days you can back out of the contract for any reason and get your earnest money back. Get a bad feeling on your drive to work? You can back out, no questions asked. Your option fee is typically $10 a day, but this amount is negotiable, like many things in the TREC Promulgated contracts that Texas Realtors use.

2 Getting The Home Inspected

During the option period we highly recommend you get the home inspected. We have names of reputable inspection companies if you do not have someone in mind. Getting the home inspected is important for several reasons:

• Inspections dig deeper into the bones of the house, if certain items are a safety hazard or deficient the inspector will bring them to your attention
• Repairs, replacements, or monetary consideration for deficiencies can sometimes be negotiated (more on this in the next section)
• Experts in their respective fields (foundation, HVAC, plumbers, etc.) can be hired to provide deeper insight into the home

3 Negotiations During The Option Period

If your inspection(s) came back clean, then you can skip this section. However, it is very common for at least a few items to come back as deficient on an inspection report. If this is the case, the fact that you are still in your option period provides a major negotiating benefit. While the sellers aren’t required to make any concessions, they risk having you, the buyer, back out and having to put the property back on the market. There are a few options when repairs are needed:

• Having the seller pay for licensed/bonded contractors to conduct repairs
• Lowering the sales price in lieu of repairs
• Backing out of the contract and getting your earnest money back

If you have the funds to conduct the repairs yourself the second option can be incredibly beneficial as you will be able to select whoever you want to conduct the repairs. If the seller agrees to pay for the repairs themselves, they will typically insist that they get to select the contractors that do the work.

4 The Property Appraisal

Once you are out of your option period we will ask your lender to order the appraisal. It is important to note that the market analysis we provided prior to you submitting an offer, while a strong indicator of what the property may be worth, is not an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice. If you are taking out a loan to purchase the property then the mortgage lender will require a formal, non-biased, appraisal to be conducted. In the event that the home does not appraise a few things can happen. First, the TREC Third Party Financing addendum has a financing approval period that can be filled in when you are making an offer. If the home does not appraise and it is impossible to negotiate a lower sales price then financing typically will not be approved by the lender and you will likely be able to back out and get your earnest money back. The second option is to negotiate the sales price down to the appraised value. This must be agreed upon by both the buyers and sellers. The last option is to pay the difference between appraised value and the contracted sales price. It is important to note that any amount over the appraised value means extra money you will have to take to closing.

5 Closing and Funding

Once all documents, requirements, and waiting periods have been satisfied then the you will be able to close on the home. Closings usually occur during business hours at a Title Company, Monday-Friday and excluding holidays. Prior to closing the Title Company will tell you what all you need to take to closing. After all documents have been signed and reviewed, a funding request will be submitted to the lender (assuming a loan is involved). If both the buyer and seller closed early in the day, funding is likely to occur within a few hours. Sometimes funding does not occur until the next business day if closing occurred later in the day. Once funds have been transferred you will be given keys to the property. Enjoy your new home!

5 Things to Do When Building A New Home

5 Things to Do When Building A New Home

Building your dream home can be exciting. However the process involves many intricacies. The following 5 things should help you navigate the process.

1 Explore Your Options

Before tying yourself into a contract with a builder explore the options different companies offer. Most builders offer distinctive architectural features and may cater more to your specific budget. Ask your Realtor to take you to show you a few homes from different builders.

Also, take a look at the different areas of town. The physical structure is just part of the total cost, how much you pay for your lot can influence your decision- and building in a comparable community may allow you to get more bang for your buck.

2 Get As Much In Writing As Possible From The Start

It’s important to remember that builders are in the business to provide a great product AND make money. Therefore it’s important to get things, especially those you can be nickle-and-dimed for in writing as early as possible. When possible, this may save you quite a bit of money. Know what the basic package includes. For example (and these are just to name a few):

• The number of lights and outlets in each room
• The grade of flooring
• Feet of utilities included in the base price (this can add up if you’re looking to build your home further back in the lot)
• Level of countertops included in the base package

It’s never a good surprise showing up to the design center and finding out that the base package doesn’t include the much more expensive paint texture you fell in love with at the model home. Also, ask what the builder isn’t willing to do. For example, we recently showed luxury downtown condominiums where window coverings and fixtures weren’t included at all due to the unique tastes of the builder’s clientele.

3 Know What You’ll Compromise On

Sometimes you can’t get everything on your wish list. Know what is a must, what you can do without, and what you can compromise on before entering negotiations. For example, while that expansive outdoor kitchen may fulfill your dream, it may cost more to have the builder install it than having a private contractor do the work. It may be beneficial to have the builder install the gas and water tie-ins so you can have the work done at a later date.

4 Get a Fiduciary

Always remember that a builder’s sales agent is there to make the builder money. Having a Realtor typically will not cost you anything if you’re a buyer- Realtor’s commissions are paid by the seller. A good Realtor will know what questions to ask a builder and will be able to provide advice and answer questions throughout the builders process. Having a representative on your side will help ensure you don’t make costly mistakes.

5 Ask Your Realtor Questions

We work with a lot of builders and we’ve seen even more of their finished homes. Let us know if you are looking for a certain style of home, we’ll usually be able to help you narrow down your options. You may decide that a new build isn’t necessarily what you’re looking for after asking questions, or it may convince you that you are making the right decision.

JUNE 5, 2018

What To Do In The King William District

What To Do In The King William District

Zoned as the state’s first historic district, the 25 blocks downtown known as the King William District remains one of the most walk-able and active areas in San Antonio. From visiting Victorian mansions to drinking a beer at one of the local spots, the following guide will help make your stay downtown the best it can be.

1 The Steve’s Homestead

Located at 509 King William, this beautiful 3 story mansion has been preserved and open to the public since 1954. You can visit the Homestead, River House (originally home to one of San Antonio’s first natatoriums), Servant’s Quarters, and Carriage House. More information can be found on the SA Conservation Society’s Page.

2 The Friendly Spot

A staple to King William residents, the Friendly Spot offers a great place to enjoy a drink with friends. The Friendly Spot is family and dog friendly, features sports and movies on large inflatable screens, and serves great food (including brunch). You can see what they have to offer at The Friendly Spot Website

3 Explore the neighborhood

King William is home to some of the most architecturally stunning properties in San Antonio, going for a walk through the neighborhood can be an evening in and of itself. If you’re looking to see what Downtown San Antonio is all about, you can also check out the King William Cultural Arts District Website for information on local King William events.

This community is an excellent place to live and offers so many sources of entertainment for those looking to enjoy the culture, art, and history of San Antonio. If you’d like to explore the possibility of moving to the King William District, fill out the form below.