Buying a home in San Antonio – why you need a Realtor® on your side.

By rerockstar • August 3rd, 2009

Keys to R+M New Home

Buying a house in San Antonio seems simple enough.

You get pre-approved for a loan, make your offer, negotiate a few little things, sign some papers, and soon you’re opening the door to your new house. That’s about all there is to it, right? Ok, we all know the process is a little more complex, but in the world of real estate the “little things” in the process can really gum up the works. The San Antonio housing market has been heating up and having a great Realtor® on your side can make all the difference.

In my recent post “Selling your home in a buyer’s market.,” I spoke to the seller’s of San Antonio about what they can do to get their homes sold, despite you (the buyer) having a distinct advantage in this market. Knowing both sides can benefit your greatly, so I encourage you to read posts aimed at sellers as well as at buyers. The more knowledge you have going in, the better you’ll come out.

1. Pre-approval and lending. Getting you pre-approved should be any Realtors® first step. Why? Some buyers like to keep this information close at hand until they feel it’s necessary to reveal. Being upfront with your agent early on can save hours of work later. Knowing what you can buy, how you’re going to buy it (Conventional loan, FHA-insured loan, or VA-guaranteed loan), and what bumps they can expect to see down the road. Knowing what the “bumps” are in advance is a huge advantage for your agent when working through the transaction. Knowing local San Antonio lenders is a huge part of that. Although it is the lender’s job to communicate with you about the loan process, your Realtor® should be involved too. Agents often need to talk to the lender to try and come up with a solution to solve any “bumps” so a good relationship between them is always helpful.

What kind of “bumps” are we looking for? There’s a million of them out there, but common ones are how you intend to use the property (try buying a HUD Home when you already own a home – you may consider it a home, but HUD will consider it an investment), credit issues (you might have that one bill you forgot about, but the lender’s can find it – sometimes an old bill can be the difference between renting and owning), and giving you an idea of what your dream home is going to cost you (sticker shock is never fun to deal with at the closing table).

2. Making an offer. Offers aren’t just about price. Sure you may want to shave a few dollars off the list price, but let’s take a deeper look at the property you want to buy. What is it worth based on the current market’s sales? Does it have anything that makes it stand out? Is it over-built for the neighborhood (gold faucets and marble floors in a less-than-average priced neighborhood)? Are homes selling in the neighborhood or are they languishing on the market? What’s more important to you – having cash in the bank after you buy the house or saving a few dollars per month on your mortgage (for every $1,000 increase in price, you can expect to pay about $1 more a month)? These are the questions you need to be thinking of and your local San Antonio Realtor® should be asking you.

Once you have finalized an offer and signed off on it, your Realtor® will send it off to the listing agent and discuss any particulars with them. Sometimes a friendly call from a fellow San Antonio Realtor® can make a huge difference. Having a friendly voice on the other end of the phone helps put everyone at ease. Imagine if your agent was gruff and angry when he called the seller’s agent. How do you think that would translate to the way the listing agent presented the offer to the seller’s? When presenting offers to clients, seller’s will often ask an agent “how they felt” about the offer and the possibility of working with the other agent. The “vibe” around a transaction does count for something. A largely negative experience will only get worse. Two agents working hard for their clients and keeping a positive attitude can keep a transaction alive.

3. Negotiations. This is where many transactions get complicated. Why? Because emotions get involved. It’s hard to remove yourself from the emotion of buying a home during this stage (especially when you feel so close to signing a contract). Once again, a friendly nature between your San Antonio Realtors® can be a great asset. I don’t know every agent in San Antonio, but I strive to make everyone of them feel comfortable when dealing with me. That doesn’t mean I’m not negotiating hard, it just means that sometimes a smile goes a long way. Sure, I’m asking the seller to pay $6,000 in closing costs…but if I’m not brash about the request, I stand a better chance at getting what we want. That’s not to say that there’s not a time and place to put the pleasantries aside, just that starting negotiations off on the wrong foot can ruin a transaction.

One thing I’ve learned is that making a connection with the other agent allows for explanation. When you negotiate for something that seems a little too bold for the seller’s to swallow, a little explanation of why you’re shooting for that can go a long way. In today’s market, buyer’s are asking for more and negotiations are taking longer and getting tougher. Knowing when to let go and when to insist are two big keys to success. Knowing what items are “deal breakers” and what are “would like to haves” before going into negotiations is key. Telling your Realtor® this upfront will make the process flow smoother – your agent’s job is to get you the best terms, so let them know what your goals are and they will help you reach them.

4. Paperwork. It can seem like a deluge of requests for you to provide this or provide that. Signatures, notaries, copies, re-prints of copies you sent a week ago. Many buyers get frustrated during this time and it’s not hard to see why. You’re ready, you want to move in, and the lender just called you to receive another year’s worth of W-2s. Grrrrr. Best thing to do? Grin and bear it. Provide copies to your Realtor® as well. This helps us keep it on file so when something goes missing in underwriting or someone else needs a copy, we can get it to them quickly. I hate to have that much paperwork, but I’d rather have more than I need so that if we need back up later down the road, I can just pull my file and help you get the info you need.

With every request, just remember one simple thing – time is of the essence. The quicker you get it sent out, the sooner someone can look at it and do the work they need the paperwork for. If you can’t get it sent out, call your Realtor®, San Antonio isn’t that big that we can’t find a way to get it done. I’ve met clients at work, in parking lots, in my office – whatever it takes to get the job done.

5. You own the house now. We’ve gone over to the local San Antonio title company and sat down in front of all the paperwork and you signed and signed and signed and signed. The house is yours! Right? Not quite. Typically, the ownership passes upon closing and funding. Funding is the process where the bank and the title company actually disperse the funds and sign off on all of the electronic transfers. This can take a few minutes or a few days. Typically, I find that if you close in the morning, you stand a decent chance of funding before close of business. If you close in the afternoon, you may be waiting until the next day. Remember, closing isn’t a one-sided transaction either. If the seller’s can’t sign until the day after, you may not close until then.

Towards the final week of your contract period, you and your Realtor® should be talking about dates, times, and any last minute details. This last week is all about making sure all your ducks are in a row and everything is running smoothly towards a successful close and new house keys in your hand.

Congratulations, you now own a new home in San Antonio. I hope your experience with your Realtor® has been great and you’ll think of them next time you buy or sell. Repeat and referral business is the Holy Grail of real estate. Next time you have a great experience, tell your friends!

If you’re thinking of buying a home in San Antonio, give me a call. Having an advocate on your side through the entire process can save you headaches, money, and potential legal problems during the process and in the future. Let my experiences, knowledge, and enthusiasm for what I do help guide you to the front door of your dream home.

photo courtesy of sugu