Monday San Antonio Real Estate Things

According to SABOR data, the standard single family home market and the ultra luxury home market are completely opposite right now.

For the 99% of greater San Antonio area homes that sell for less than $1,000,000, the number of sales are down but the sales prices are up. For million dollar homes the number of sales are up but prices are down.

The number of million dollar sales is up but the sales prices are down

The number of sales of all single family homes fell 17% in the greater San Antonio area in March compared to March 2016. The sales price of single family homes in March 2017 increased 7.2% compared to March 2016.

First Quarter million dollar and up sales in the greater San Antonio area:
Q1 2017 vs. 2016 - Number of million dollar sales are up 40%
Q1 2017 vs. 2016 - Average million dollar plus sales price has decreased 6.3%
Q1 2016 - 26 sales at an average sale of $1,499,250
Q1 2017 - 39 sales at an average of $1,408,247

Joshua Fletcher writes in the Express-News about the growing controversy about owners renting their property short term through Airbnb

Colleen Casey with Phyllis Browning Co. has a beautiful new listing in historic Monte Vista

Sell your House with Color

Sometimes a seemingly small interaction unexpectedly changes the way you fundamentally see things. Such an encounter happened to me recently. It altered the way I feel about using color to market San Antonio luxury homes.

A style some term "Transitional" is becoming as ubiquitous as "Tuscan" was 10 years ago. Just as people tired of faux paint done in beige, gold, and red, they will quickly reach critical mass with the white, grays, and chrome fixtures that can make you feel like you are living at Z Gallerie. To lazily steal from Batman, Color isn't the hero we deserve but it's the hero we need right now. 

Powder blue, gold, gray, and cream kitchen stands out. A little pattern added in white oak floors, tile, quartzite countertops, and the metal light fixtures.

I called a Realtor two weeks ago to discuss some feedback he sent me about one of my listings. He said to me "It showed like a Jason Glast house." I thought "Thank you???" but I had to clarify "What does that mean?" He responded, "You know, real clean and white."

The idea that the homes I represent and the brand I present could be summed up so quickly as "clean and white" threw me for a loop. I wanted to protest "I can't remember the last time I recommended white, I'm all about subtle variations of cream on the color wheel." But, I said thank you and hung up. As I thought about it though, I decided I am "guilty as charged."

When I gave up practicing law to become a Realtor 13 years ago, I decided to pursue the niche of luxury homes. My biggest challenge was figuring out what works in the San Antonio luxury home market. 

After lots of research I came to the realization that most luxury homes in the San Antonio area took a long time to sell and often sold for less than what the previous buyer paid. It was a very clear case of supply and demand deciding the fate of these homes. Homes priced under $250,000 ranged from 2-6 months of inventory depending on how hot the market was. In stark contrast, homes above $750,000 had 2-4 YEARS of inventory. Scary! 

But, when I drilled deeper into the numbers I noticed patterns. Every year, there were a few homes that wildly outperformed neighborhood averages for sales price, price per square foot, and days on the market. I saw some of these outliers in person but for many others I clicked through the photos online just like a buyer would. Initially, I thought the difference was that certain Realtors hired better photographers so the photos were superior. That was true but it was only a small piece of the puzzle. 

The key was actually that the interior of the home was light, uncluttered, de-personalized, and featured updated materials and fixtures. If the presentation at the home wasn't right the photographer's skill was nearly irrelevant.

I compared these photos to homes that lingered on the market or only sold once the price dropped to a "giving it away" level. The difference was striking. Most of the photos were dark, cluttered, personalized for the current owner and displayed features that automatically had a buyer thinking "I'll have to put in lots of time, effort, and money changing this." Not only did the homes not look good but they also looked the same. When there is lots of supply and little demand, you do not want to look the same as the competition.

This is where I went through a lengthy and crazy magazine phase to help me understand what looks good. I got my hands on any Elle Decor, Architectural Digest, Traditional Home, House Beautiful and Veranda I could find. These titles have been around a long time and the photos looked like the San Antonio luxury homes that sold much better than the competition. They displayed myriad styles and weren't too niche for my purpose. It became apparent that the luxury homes that struggled had little in common with the homes featured in design magazines.

Blue, silver, black, purple, and cream. This serene bedroom starts with an extremely neutral palette but introduces color with decor and furnishings. The black iron and metal seen on the windows, curtain rods and bed make for a bold frame. From House Beautiful magazine. 

It wasn't about the money that the homeowners spent. It was simply a style they preferred or were convinced was on trend. I've heard that Tuscan became such a thing on the Northside of town outside 1604 because the southern edge of the Texas Hill Country starts there and developers creatively compared the land to Tuscany. Interior design usually veered toward a theme I like to call "WINE." Lots of burgundy and gold with heavy curtains obscuring often pretty views.

But, it's hard to create an authentic and classic Tuscan home because we aren't in Tuscany. The builders and architects miss or change details. Corners are cut to save money. It's no different than Las Vegas where The Venetian, Paris, and New York, New York are familiar copies but pale imitations of the originals.

Many custom luxury homes built between 2000 and 2013 featured this look. When these homes were marketed for resale they faced a triad of issues:
1) Out of style and/or cluttered;
2) They looked just like their competition;
3) Supply and demand for luxury homes favors a buyer.

When number one above is addressed it solves both two and three.

My job as a Realtor selling a home is to obtain the highest price in the least amount of time while eliminating stress for my client. I need to mitigate the issues above. My strategy is simple:
1) Make the house stylish and clutter-free;
2) Separate it from the competition;
3) Supply and demand for a stylish, clutter-free, and standout luxury home favors a seller.

I decided to go all in on trying to change colors from dark to light to make homes look larger, more modern, and clean. Paint makes such an enormous difference. Changing colors from a world of beige and brown to cream quickly showed excellent results. There were four or five variations of cream chosen to makeover these homes depending on the light. My listings looked better and different in photos and in person. My average sales price rose to number one in San Antonio. My strategy worked even better than I'd hoped.

When something works there is a hesitation to change. My clients that bought in to my requests saw tremendous results. That's why that call with the other Realtor I just had was an important wake up call. For several years now, national and state-wide builders have designed their new construction models with "Transitional" style. Light, painted cabinets, gray walls, glass tile, and chrome light fixtures became the new normal. Local luxury home builders pivoted toward this style as well so now we have a new trend.

Undoubtedly, this was a cleaner and more neutral presentation and a welcome 180 from previous trends. There is nothing inherently wrong with any color or material, however, when one style or color becomes pervasive there is the risk of a home dating itself and losing its uniqueness.

So, it's time for a shift toward color used in creative ways that still remains neutral and light. It can be tricky and there is no "one-size fits all" solution. I think the new, winning strategy for "designing to sell" is mixing striking colors with different textures and a mix of man-made and organic materials. Sometimes the color is on walls or on the cabinets. Sometimes it's in the metal on pendant lights. Notice how wood (brown isn't bad) is used to soften a space, bring natural texture to a scene, and act as dramatic focal point.

Dusty rose, brown, pewter and cream. Texture, color, and pattern added by the wood ceiling and metal chandelier

In these photos you see interesting colors but they do not make these spaces dark. Dark is challenging from a marketing standpoint because buyers and Realtors are looking initially at online photos, often on small screens like a phone. The first showing for any home is online today. That's how a buyer will choose if they will book an appointment to tour the house. Light shows better on a screen than dark does. That won't change.

As we approach 2017, think about using color to make your home standout in a crowded luxury home market. Don't hesitate to contact me if you are looking for advice. I can also recommend interior designers who are brilliant about using color in the right way.

Blue, gold, brown and cranberry. Pattern, color and texture added by rug, chairs, metal chandelier, wood beams and wallpaper. This is a combination I wouldn't have thought of but it's striking.

Sage, brown, pewter, copper and cream. I love this kitchen. The man made light quartz countertop and tile backsplash works beautifully with three different wood colors: painted cabinets, stained cabinets and stained floor. Also note the mix of metals in the vent hood, pendent lights, faucet and hardware.

Green, bronze, brown, and cream. I love this foyer. Four distinct textures working here: The hardwood floors in chevron pattern, the mirrored wall, marble table, and wallpaper. 

Lilac, blue, melon, cranberry, wheat, brown, cream. This eclectic room has a lot of pattern and color happening but it's peaceful and pretty rather than loud and overwhelming. Metals, fabrics, bamboo and leopard print carpet somehow works. Maybe because it's unexpected.

Beige, cream, gray, brown, and gold. Lest you think I don't care for beige, here's an example of classic neutrals used to great effect. It works because it's used in grasscloth and wood. The texture is what makes it different and exciting.

Jason Glast, Realtor / Attorney, an associate of Portfolio Real Estate, has been one of the top Realtors in the San Antonio area since 2003. Specializing in luxury homes, he has sold more million dollar properties than any other Realtor during his career. Earlier this year Jason Glast Luxury, his team with Elizabeth Priest, was ranked #1 in Luxury Real Estate by the San Antonio Business Journal. See JasonGlast.com or contact Jason at (210) 386-1833 for more information.

7 Difference Making Luxury Home Features

There are several features that can make a San Antonio luxury home standout. If your home has these features it can be a huge difference maker when you decide to sell.

Every week I read articles that tout the latest home design trends or offer hot takes on what buyers want today. Usually these range from the surprisingly banal to the hilariously niche.

For example in the past month I've read that some buyers enjoy a kitchen that opens to a living area. Question: Did this writer travel through time back to 1994?

Also, I wasn't aware that installing backyard bocce ball courts is a thing. Maybe it's that I specialize in selling luxury homes in San Antonio and the surrounding areas but I haven't seen the bocce love yet. 

Bocce ball court. Installed to distract from that hideous ocean view?

However, in my 13 years of selling San Antonio luxury homes, I have noticed features that inspire buyers. These aren't necessarily "must haves" but fall into the category of wants.

Detached Casita/Guest House: This should perform double duty as a party house and guest quarters. Everyone loves visitors right? Well, they are loved (and invited) even more when they have a private space to stay with a separate entrance. When this space includes one bedroom, one bath and a kitchen it's a huge selling point.

Casita at 11015ReyesCanyons.com in Los Reyes Canyons

4 or more car garage: Suppose a buyer is looking for at least 5,500 sq ft and five or more bedrooms. A 3-car garage is usually as large as it gets. But, this is like buying a 3-BR home for a family of 5. Typically in this market segment, husband and wife each have a daily driver plus one or more "weekend" fun cars. If they have three kids and one or more are of driving age, you're quickly beyond garage capacity. If a friend or Grandma drives in for an evening, you're going to need a lot of street parking. Many San Antonio Luxury neighborhoods prohibit overnight street parking. For the San Antonio million dollar plus home it's still rare to find more than a 3-car garage. So, to find four or more is a functional luxury.

Pet area: Pets are truly part of the family. People are devoted to their fur babies so areas dedicated to pet care such as dog runs and bathing areas draw praise

All ensuite baths: Many luxury home buyers today do not want their kids or guests to share a bathroom. I've heard many a buyer disparage poor "Jack & Jill." And, they were so popular once! But, especially if you have a mix of girls and boys, this luxury might become a necessity.

All bedrooms have ensuite baths at 22314Viajes.com in Las Campanas

Sport Court: This can be the hub - even more than a pool - for outdoor fun for most of the year. I've noticed that buyers aren't as excited if these spaces are too much about tennis. But, if the space is multi-purpose for basketball, soccer, and net sports like volleyball plus has lighting, it will be well-used and coveted.

Lighted Sport Court at 11010AnaquaSprings.com in Boerne

No carpet: Luxury buyers will accept clean, neutral carpet in some rooms such as secondary bedrooms, media rooms and game rooms but if your home has none the buyer will like it even more. In most luxury homes, wood or tile is the preference. Some of that is the trend line and some of it springs from avoiding allergies, pet smells and other irritants.

18114LiscumHill.com has no carpet

Caterer's Kitchen: Owners of large luxury homes often enjoy entertaining. But, when they host a party they don't always want their guests to experience the heat, noise, and smells that come with cooking for a large group. The caterer's kitchen is an excellent solution. I've known some owners who use this second kitchen exclusively. Plus, for those who love to really cook it adds extra ovens, dishwashers and more.

Jason Glast, Realtor Attorney, has been one of the top selling luxury real estate specialists in the San Antonio, Tx area since 2003. His team - Jason Glast Luxury is ranked #1 in the region for luxury home sales

For more information, contact Jason at (210) 386-1833, email me at jason@jasonglast.com, see my website at JasonGlast.com and like the Jason Glast Luxury Facebook Page

9 Things San Antonio Luxury Buyers Want in 2015

In my last blog, I wrote about how small the San Antonio luxury home market is. Only 4% of homes sell above $500,000 and less than one-half of one percent sell for a million or more.

But, if you are selling a luxury home, how can you put the odds in your favor? If you are a buyer how can you make a good decision for future resale value? There is a very small sample size to analyze but lessons can be learned. Even with so few sales, patterns emerge. So, how can you learn from "The List?"

"The List" is what I call luxury homes that are actively on the market. The few that are chosen by buyers each year made it off The List. An important part of my job is figuring out why. This analysis will focus on the data of homes that make it off The List.  I'll write about the more emotional factors later: Things that make a difference like a great view, big trees and updated finishes.

21260 Fortaleza
Sometimes an amazing view is the reason a house gets off "The List"

I'm going to write about $1 million and higher sales that went through the San Antonio Board of Realtors' MLS. Texas is a non-disclosure state. Unlike nearly every other state, there is no law that forces a seller or buyer to disclose a sales price in Texas. However, most sales, even above $1 million, go through MLS. That's the only way that the real estate industry, the county tax office and the public knows what the sales price is. Though I work a few non-MLS transactions each year, the large majority of sales in all price ranges go through MLS.

I chose not to include homes in places like Horseshoe Bay, Gruene, Canyon Lake, Burnet, Wimberly and Llano. These homes are generally waterfront properties purchased as vacation homes.

There are also sales that are reported in the single family residential MLS that are actually ranches so I excluded them. For example, a "home" sells over $1 million but it has 200 plus acres.

Going back 12 months, there have been 104 sales at or above $1 million.

Here is what luxury buyers want today:

1. Quality public schools

Though many of these buyers will consider private school, the local public schools are important at the very least for future resale.

Four districts dominate the million dollar sales:
Northside: 33
Alamo Heights: 26
Boerne: 21
North East: 14

The high schools with the most million dollar sales attached to them are Clark and Alamo Heights.

2. Neighborhoods with a track record

There aren't many million dollar neighborhoods in San Antonio, so the same areas tend to dominate year after year 

• 30 sales were inside Loop 410 - Alamo Heights, Olmos Park, Terrell Hills and Monte Vista
• 23 sales were north of 1604 in the Northside School District. Includes The Dominion and Anaqua Springs Ranch
• 23 sales were outside 1604, further north in the Boerne School District including Cordillera Ranch
• 16 sales are outside Loop 410 but inside Loop 1604 - Shavano Park including Bentley Manor and Huntington
• 12 were in the area outside 1604 generally knows as Stone Oak including Champions Ridge, Champions Run, Waterford Heights and Sendero Ranch

3. At least 4 bedrooms

Only five sales over $1 million had three bedrooms. None had less than three. But, six or more may be overkill. Just 17 of the 104 Sales had six or more bedrooms.

4. An existing pool

79% of the homes that got off The List have a pool

22 Sanctuary, Inwood Estates
79% of homes sold over $1 million have a pool

5. At least three Garage Spaces EXCEPT inside 410

77% of sales had three or more garage spaces but of the homes that didn't, 87% were inside Loop 410. So, if you are selling your luxury home in the Alamo Heights area, it's not a fatal flaw to have two or fewer garage spaces. 

6. At least half an acre EXCEPT inside 410

77% of sales were on at least a half-acre lot. But, if you are selling or shopping inside 410, know that space is at a premium so lot sizes aren't nearly as large. 22 out of 30 sales inside 410 were on less than half an acre. 

7. Master Bedroom Downstairs

Only 13% of sales had the master bedroom upstairs. Almost all of these were inside 410. 

8. Big Square Footage

64% had more than 5,000 sq. ft. Only 9% had less than 4,000 sq. ft

9. Newer is popular but inside 410 doesn't conform

55% of all sales are less than 10 years old. 57% of sales inside 410 are at least 20 years old.

228 Cloverleaf, Alamo Heights
New construction is popular especially in neighborhoods where it's rare

Jason Glast, Realtor/Attorney, is one of the top selling residential real estate agents in San Antonio. Specializing in the luxury home market, Jason has been named the number one real estate agent and the number one luxury home specialist by the San Antonio Business Journal. Contact him at (210) 386-1833, Jason@JasonGlast.com or visit his website at JasonGlast.com

He is an associate of San Antonio Portfolio Real Estate - KW, a boutique brokerage specializing in the high end San Antonio area neighborhoods including Alamo Heights, Terrell Hills, Olmos Park, Monte Vista, The Dominion, Boerne, Cordillera Ranch, Hill Country Village, Anaqua Springs Ranch, Shavano Park, Bentley Manor, Huntington, Inwood, Elm Creek and Stone Oak.

The Truth About San Antonio Home Sales (Will Set You Free)

527 Berwick Town, Bentley Manor
Sales above $500,000 in San Antonio are a different animal

Today's narrative is that the single family residential real estate market is scalding hot. In San Antonio, the consensus is that less inventory has led to skyrocketing prices. Tales of multiple offers and crazy bidding wars abound. However, when you dig deeper into the numbers, the story becomes more nuanced.

When people ask me how the market is, they nearly always mean "How is the luxury home market in San Antonio?" If someone knows me already, they know that's my career. I list, market and sell luxury homes in and around San Antonio.

Back to the person asking about the market...To drill down even deeper, they usually mean "How is the market for high-end resale homes in Bexar, Kendall and Comal county?" Because they are interested in how much they could get for their home. Guaranteed they have seen in the media, heard from a friend or through another Realtor that it's a big-time seller's market.

I am a naturally optimistic person. I believe there is at least one solution for every problem. However, I'm not a sunshine pumper. I believe in "The Truth Shall Set You Free." Because, when you know the truth, it's much easier to craft a strategy or devise the perfect solution.

So, what's the truth at the end of the 3rd quarter of 2015? I'm not a fan of Nancy Meyers' movies but "It's Complicated."

I heard Dr. Mark Dotzour, former Chief Economist at the Texas A&M Real Estate Center, speak earlier this year and he left me with a quote I won't forget, "If you torture data long enough, it will confess to anything."

That statement resonates strongly with me because of my legal background. When an attorney presents a case, she strives to present the best facts to prove her case while mitigating or burying the negative points for her client. There is opposing counsel working to achieve the same.

But, what if there was no lawyer arguing the other side? What if only one version of the facts was presented? That's exactly what happens with residential real estate data.

The statistics come directly from the San Antonio Board of Realtor's (SABOR) Multiple Listing Service (MLS) data.

SABOR looks at the data and presents it the most positive light to its members and the media. That's part of its purpose so I don't begrudge them that. I'm a member of SABOR myself. But, the local media and national writers (they usually get numbers through the National Association of Realtors) don't have a clue except to recite back the numbers they receive, without in-depth analysis.

8 Arnold Palmer, The Dominion
Sales of homes over $1 million are only one-half of one percent of the market

So, let's examine two ends of the spectrum: Today's market in a relatively strong economy vs. seven years ago at the peak of a recession.

Through September 21, 2015. Strong Economy:
32% of sales are above $250,000
4% of sales are above $500,000
.4% of sales are above $1,000,000

From Jan. 1 - September 21, 2008. Recession Economy:
19% of sales are above $250,000
3% of sales are above $500,000
.5% of sales are above$1,000,000

So, the biggest growth BY FAR in the San Antonio housing market since the recession and today's relative boom time is in the $250,000 - 500,000 category.

And, don't miss the decimal in front of the San Antonio million dollar plus sales. Less than one-half of one percent of all home sales are above $1,000,000.

Sales over $500,000 have essentially remained the same - percentage-wise - for homes in San Antonio. There are more sales throughout all price ranges in 2015 because it's much easier to get loans today than 2008 and the economy is better. That's good news.

But, for owners of homes above $500,000, it's important to understand the small number of buyers that can afford your house. Because then you can solve the problem. Why do those buyers choose the homes they choose? That's a topic I'll write about in upcoming blogs. The Truth will set you free.

101 Powderhorn Trail, Hill Country Village
Amenities like this lighted tennis/sport court can make a difference

Jason Glast, Realtor/Attorney, is one of the top selling residential real estate agents in San Antonio. Specializing in the luxury home market, Jason has been named the number one real estate agent and the number one luxury home specialist by the San Antonio Business Journal. Contact him at (210) 386-1833, Jason@JasonGlast.com or visit his website at JasonGlast.com

He is an associate of San Antonio Portfolio Real Estate - KW, a boutique brokerage specializing in the high end San Antonio area neighborhoods including Alamo Heights, Terrell Hills, Olmos Park, Monte Vista, The Dominion, Boerne, Cordillera Ranch, Hill Country Village, Anaqua Springs Ranch, Shavano Park, Bentley Manor, Huntington, Inwood, Elm Creek and Stone Oak.