Welcome to the inaugural issue of the Hill Country Real Estate Report. The real estate industry in the Texas Hill Country continues to out-perform markets across the nation, and it is certainly one of the biggest industries that drives the economies of the many towns in the Hill Country. Historically, this group of real estate professionals has had no viable source of news and information related to their industry.
Until now. With each issue, we hope to cover the latest news and information concerning real estate across the majority of the Hill Country. Because we want to ensure that our coverage is the most comprehensive you’ll find, we have assembled an “Advisory Council” of professionals from each area of the Hill Country that we will cover. This team is charged with ensuring that we have heard the latest info, rumor, and announcement. They also work closely with us to ensure that we don’t stray from our core mission, which is to provide late-breaking, up to the minute information that you, the real estate professional, needs to know. This magazine is designed solely for the real estate professional, so if you received this in the mail, you were identified early on and put on our free subscription list. If you have an interest in real estate and want to be placed on the mailing list, please head to www.hcrer. com and utilize our sign up form. A little about us: the Hill Country Real Estate Report is published by SMV Texas Design Group, based in Boerne, Tx. While you may not have heard of our team, you might have seen some of our other publications. Currently we are publishing EXPLORE magazine (Boerne), Cordillera Ranch Living (Boerne), Kerrville Area Business Magazine (Kerrville), and LIFESTYLES of the Texas Hill Country (Kerrville). We certainly hope that you enjoy this new publication as much as we enjoyed putting it together. Lastly, we are frequently looking for content. If you have a great story or article idea, we’d love to hear about it. We are here to help highlight the happenings as they pertain to real estate, so if you know of something that you feel others might like to know about, please give us a call. Again, welcome to our inaugural issue. We hope that you enjoy it, learn something new, and pass along to a friend. Until next month, Benjamin D. Schooley ben@smvtexas.com 210-507-5250
Contents 6
Lexus and Volkswagon dealership coming to Dominion
10
Walmart moving to Bulverde soon
14
Builder Feature - Jonathan Gravell
17
Home staging is all the rage
18
The revitalization of Kerrville
22
Financing in today’s market
25
What you should be doing with Social Media
28
The difficulties of building in Bulverde
30
Cordillera Ranch developing new section
34
How to choose the right insurance
37
New laws for HOAs
Advisory Council Sherman D. Durst - Spent almost 30 years in the real estate industry and, as the ownerbroker of Fredericksburg Realty. - Has a Bachelor of Science degree, with Teaching Certificate, from Texas State - Is a host of graduate real estate designations, including Certified Residential Broker, Accredited Buyer Representative, Luxury Home Specialist, Certified Residential Specialist and Senior Real Estate Specialist. - Sherman has served as a Fredericksburg City Councilman, a city Planning and Zoning Commissioner, as President (and VP) of the Fredericksburg Chamber of Commerce, as the first President of the Fredericksburg’s Shopkeepers Guild and on numerous other city and county foundations, historical societies and special event boards.
C. Brett McDowell - Bachelor of Science – New Mexico State University - 2001 - MBA-General Business and Finance – Texas Tech University - 2003 - Graduate Banking Degree – Southwestern Graduate School of Banking at SMU - 2007 - Began career in 2003 as agricultural lender upon graduation from TTU. Went to work for HCSB in March 07 as the Vice-President, Commercial and Business Banking – Kerrville Market. - Wife – Ginger McDowell, staff pharmacist for H-E-B in Kerrville and Fredericksburg. Brett and his wife recently welcomed a daughter. Two dogs, Kippy (Australian Shepherd) and Roli [Jack-o-be, (half Jack Russel half Beagle if you were wondering].
Jane Marie Hurst, Realtor® - Represents clients in the Highland Lakes and Texas Hill Country areas specifically within the cities of Marble Falls, Burnet, Horseshoe Bay, Spicewood, and Cottonwood Shores. - Jane Marie has been directly involved in the development of the mixed-use master planned communities of La Ventana at Lake Marble Falls in Marble Falls, TX and The Ranch at Delaware Creek in Burnet, TX. - Jane Marie is currently an elected City Council Member for the City of Marble Falls and appointed to the Board of Directors for the City of Marble Falls Economic Development Corporation. - Married to Steve Hurst, an attorney practicing in the area of real estate amongst other areas of the law, and they have three children: Bill, Daniel and Tory.
Debbie Vallone-Homeier, Broker - She is a licensed, professional Real Estate Broker, and manages this firm's Blanco office. - She and her husband Carl also own and operate Paragon C&D Builders, a construction company that works hand in hand with the firm's real estate operations. - Debbie specializes in Blanco County and also serves the surrounding Bexar, Comal, Gillespie, Hays and Kendall counties. - Debbie and her husband reside in Blanco. Debbie's civic activities are many, and currently include being the 2011 Blanco Chamber Secretary; 2011 Gillespie MLS Board Director; 2011 TAR Political Affairs Committee Member; 2009 Blanco Chamber of Commerce President, as well as the Visionaries in Preservation Task Force Lead, and the Wildlife Rescue Event Chairperson & Volunteer.
Brad Goebel - 1991 graduate of Baylor University with a Business Management Degree. - Real estate agent with Horseshoe Bay Resort Realty in Horseshoe Bay, Tx. - Acquired his real estate license in 1996. - Brad and his wife, Kristi, reside outside of Marble Falls, Tx. Brad has a daughter, Kylie, who is 12 years of age and son, Gage, who is 2 years old.
Vic Nixon - 33 years of serving the Texas Hill Country - Past president of the Gillespie County Board of Realtors and the Fredericksburg Jaycees, Board of Directors of the Hill Country Memorial Hospital - Top producer in our MLS outside the city of Fredericksburg in 2008
Laura Fore - Raised in Kerrville, the Texas Hill Country has been part of Laura’s life since she was a little girl. As such, she is quite familiar with the many different neighborhoods and the offerings of each. - After receiving her college education at Texas A&M University Corpus Christi, Laura went on to work as the Administrative Manager for the #1 Real Estate Team in the Coastal Bend before “getting back to her roots” and moving home to Kerrville. - When not hard at work, Laura enjoys spending time with her family and friends, being actively involved in the art community, and traveling.
Austin Ruple - Century 21 Ruple Properties - Specializes in ranch sales throughout the Texas Hill Country including South Texas. - Operates two offices, one is Boerne and one in Pleasanton.
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Charlie Hill - Vice President, Development and Marketing - After graduating from the University of Texas at Austin with a BBA in finance in 2000, Charlie spent five years at Guaranty Bank in Dallas as an Assistant Vice President of commercial real estate lending and also homebuilder finance. - In 2005, Charlie, David’s youngest son, joined DHI and has been actively involved in finance, entitlement, development, construction and marketing for new development projects, including Johnson Ranch and Ledgestone, management and leasing of three commercial properties, as well as strategic investment and finance planning for DHI.
Hill Real Estate Report Magazine is published by Schooley Media Ventures in Boerne, TX. Hill Country Real Estate Report Magazine and Schooley Media Ventures are not responsible for any inaccuracies, erroneous information, or typographical errors contained in this publication submitted by advertisers. Opinions expressed do not necessarily reflect the opinions of Hill Country Real Estate Report and/or Schooley Media Ventures. Copyright 2011 Schooley Media Ventures, 265 N. Main, Suite C, Boerne, TX 78006
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By Bethany Heinesh
Lexus, Volkswagen Dealerships to Open Near the Dominion While no formal announcements have been made, and investors are still in the early stages of negotiations, it’s official –the Dominion area will soon have a new Lexus dealership. The new Lexus location is another addition to Clarence Kahlig’s catalog of powerhouse dealerships in the San Antonio area. The Kahlig Automotive Group is comprised of a number of shareholders, including Billy Vaughn, and consists of several successful locations–North Park Toyota and North Park Lincoln-Mercury among them. “This is something that has been in the works for years,” said North Park Lexus Vice President and General Manager Lee Willis, who has been with the company 24 years. “Land was purchased five years ago with the intention of opening a sister site to our North Park location, which has been serving the greater San Antonio area for more than 17 years. It will be what is called a companion store and we are excited about what’s to come.” This will be the second Lexus dealership Willis has seen built from the ground up –he was there in 1994 when North Park Lexus opened its doors on LockhillSelma. The new Lexus dealership will sit on the corner of Interstate-10 and Milsa, across the highway from the Dominion. “We looked at building on the same side as the Dominion, but that particular area is in a flood plain,” Willis said, adding that the new Lexus location will showcase 400 cars and a 45,000 square-foot showroom. It will also create 100 new jobs and generate significant sales tax revenues for the city. “We plan to begin construction at Milsa in the first or second quarter of 2012,” said Willis, a proud Lexus owner. “We haven’t gotten any further along in the process than simple negotiations. We don’t have any
6 | October 2011
schematics or permits yet, but we know once we begin building, it will take about one year to complete. Of course, when the time is right, we will make the necessary announcements; have a grand opening and a ribboncutting.” According to Willis, popularity of the Lexus brand and exponential growth in that segment of the city necessitated the new nine-acre location. “People love Lexus because of the quality of car and service they get for their money. We sell about 350 cars a month from our North Park Lexus location. Building another dealership indicates just how well Lexus is performing in the market.” Like the North Park location, the new Lexus dealership, which has not yet been named, will offer luxury services to its clients. Its state-of-the-art facility will not only house the many models in the Lexus line, it will include astonishing amenities for would-be customers and those who bring their car in for service. The waiting area will feature the Lexus Café, which serves hot caramel apple cider, cappuccino, espresso, lattes, hot chocolate and Italian soda in addition to pastries, popcorn, cookies, fruit and candy. The cafe will also serve premium organic coffee roasted locally. To keep the kids busy, the waiting area will have an Xbox Station with a variety of video games. And, incredibly, the new Dominion location will offer private massage services so clients can receive a complimentary massage while they wait –in a glass-enclosed private room complete with a waterfall. For those don’t have the time to wait, the dealership plans to offer pick-up and delivery services and assign a loaner vehicle when necessary. They will also detail customers’ vehicles and return them sparkling clean.
Established in the early 1980s, Lexus is in the luxury vehicle division of renowned Japanese automaker Toyota Motor Corporation and was officially presented in the United States in 1989. The brand’s reputation quickly gained momentum and just 12 years after its founding, Lexus became America’s number one selling line of luxury cars. Lexus and its affiliates employ more than 31,000 in the United States, with Lexus and Toyota dealers and suppliers employing an additional 160,000 people. Toyota’s investments in the United States amount to an astounding $12 billion. The Kahlig Automotive Group will also be building a new Volkswagen dealership right next door to the new Lexus location at Interstate-10 and Oak. Willis says permitting for the four-acre Volkswagen dealership is underway and construction is set to begin by the end of this year. The development should be completed within nine months. “We are looking forward to getting started on this project,” said Willis. “This will be our first and only Volkswagen dealership we have ever opened. It will hold about 300 cars and have a 25,000-foot showroom. We will also be creating about 70 new job opportunities once it’s completed.” Volkswagen was originally founded in 1937 and is most famous for its legendary “Beetle.” It is currently headquartered in its home country of Wolfsburg, Germany. As of 2010, Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe’s number one largest. This year, it was named in the top 25 largest companies in the world by Forbes Global 2000.
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By Gustavo De Keratry
10 | October 2011
By Bethany Heinesh Rumor has it Walmart is coming to Bulverde –which brings mixed feelings for residents and local officials alike. A development of this magnitude is bound to bring about the age-old debate small towns everywhere are eventually confronted with –should we build, expand and grow or do we preserve the quality of life found only in areas devoid of big business? For some, the arrival of the mega grocery chain, which will likely be accompanied by a Lowe’s and an Academy, will bring a welcomed change to the area. For others, such commercialism is unwanted, unwelcomed and unappreciated. Either way, the 289-acre development on the northwest corner of highways 281 and 46 is the talk of the town. The Singing Hills master plan, submitted by San Antonio’s NAI REOC commercial development group, was passed by the Bulverde Planning and Zoning Commission and the city council earlier in the year, even though the majority of the project consists of land in the city’s extra-terrestrial jurisdiction (ETJ). It is expected to include the three aforementioned unofficially disclosed major retail anchors and about a dozen pad sites for other, smaller businesses. The rest of the development will be comprised of multi and single family housing. The plan also includes a complete sewer system and wastewater treatment facility for both the retail and residential area outlined in the project. “Even though no one has officially announced the coming of a new Walmart because of confidentiality clauses, we know that’s what lies ahead,” said Bulverde Mayor Bill Kraweitz. “Thus far, we haven’t had a very good experience with the developer. When HEB came to town, they worked with us through the whole process. These people don’t seem to care what the community thinks. They have been, at best, uncaring about developing a solid relationship with locals.” According to Kraweitz, San Antonio’s NAI REOC is one of the more respected commercial developers in the area, one that leases and manages more than 6.5 million square feet of commercial property for select clients. NAI REOC is one of the largest commercial real estate companies in the city, serving South Texas since 1974. Nevertheless, despite its well-established reputation, Kraweitz says the company has made several controversial decisions in recent months. In collaboration with DJL Enterprises, NAI REOC reportedly took preemptive action and cleared more than 40 acres of trees when they got word the city council planned to pass a tree ordinance that would affect their bottom line. “Personally, I would have liked to see them keep some of those trees and many members of the community felt the same way. They rubbed a lot of people the wrong way when they did that,” said Kraweitz. Additionally, Kraweitz says the development backs directly up to the highend Windmill Ranch subdivision, directly impacting 13 homes that will share a fence line with Walmart and will now have a huge building looming over their back yards. While the city took action to encourage the builder to create a substantial buffer to protect those residences from being overwhelmed by high traffic and commercial activity, they opted not create such a buffer. “There’s no question these people’s property value has been diminished. Naturally, no one wants some huge retailer right behind the house they worked so hard for,” Kraweitz reported. “There’s not much we can do because the majority of this property lies in Bulverde’s ETJ and while REOC certainly didn’t have to do what we asked, it would have been nice if they would’ve come to the city and worked more closely with us. Considering the amount of revenue they stand to generate from the people of Bulverde, you would think REOC would go the extra mile and invest a few more bucks to promote stronger community relations and keep their soon-to-be customers happy with this new development.” While Kraweitz admits he is not a fan of Walmart, he says he is all for economic development and wants the people of Bulverde to experience the advantages that accompany the influx of new businesses –jobs, convenient shopping, affordable housing and ad valorem and sales taxes. Unfortunately, however; it doesn’t seem this project will do a lot of good for the city itself. Because of a law passed by the Texas Legislature several years ago, all sales tax collected from a city’s ETJ goes directly to the local emergency services district – in this case, ESD #4. “You won’t catch me in the Walmart. I don’t believe in their business practices and I would rather see anything than a Walmart here in Bulverde,” Kraweitz said, adding, “The bigger picture, though, is that this project will be more of a burden to the city of Bulverde, rather than a benefit. Once built, these stores will need our police protection and we will have to deal with the headaches that come with higher traffic, responsibilities that fall on our shoulders.” Kraweitz says Comal County officials are already working with the Texas Department of Transportation to widen the intersection and add stoplights that will benefit the Singing Hills development area. “There is also the issue of preserving our dark skies. We want to do what we can to make sure these stores’ bright lights don’t create a problem for nearby residents.” When the Bulverde City Council held a public hearing to hear citizens’ comments about the Singing Hills master plan several months ago, the mayor said there was a packed house with an incredible number of people not in favor of the development. There are, however, hundreds of others in the Bulverde area who look toward the future with excitement and are especially thrilled to finally be getting their very own Walmart. “I can’t wait,” said Margie Keller, a 25-year Bulverde resident. “First of all, there’s nothing I need that I can’t buy at Walmart. With gas prices being what they are, this will mean I no longer have to drive all the way to San Antonio in the ridiculous traffic on 281. A long time ago, we had an Albertson’s in Bulverde, but the only major grocer we’ve had in town for years is HEB. I think having a Walmart nearby will keep prices more competitive.” hcrer.com | 11
12 | October 2011
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By Ben Schooley “I’ll build anything for anyone, as long as the relationship is there,” Jonathan Gravell, owner of Gravell & Company begins. And he speaks the truth. With a simple mission to build the Hill Country’s finest residences, Gravell has fast become one of the pre-eminent builders in the Hill Country. And that passion for construction and design started very early on in his life. “I started sweeping houses when I was 12 for my dad’s best friend. I liked being outside and watching the evolution of starting from nothing, and ending with something beautiful. Every summer when I was growing up, I worked with a different tradesman related to building. A plumber, electrician, roofer, etc. All my buddies were off screwing around, and the way I was brought up was that I understood hard work. I don’t think I ever spent a summer focused on messing around; I was trying to learn something.”
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Upon graduation from high school, Gravell immediately enrolled at A&M with a major in Construction Science. As Gravell neared the end of his tenure at A&M, he received an internship with a custom builder in San Antonio. Upon graduation, he was given the Project Manager position with that same builder, and Gravell soaked up experience over the next 5 years. As Gravell’s experience and enthusiasm continued to grow, he was hired by the nation’s largest country club developer, based in California. “I was hired as the Superintendent. I absolutely loved it. One of the best parts of that job was that they put me through an extensive training program. They taught me their entire building process, which is one of the industry’s best, and it was just a wonderful experience.” Gravell was then transferred to Colorado Springs, and had
his first real introduction to a high end remodel. “They sent me to Colorado, and wanted me to handle the company’s first ever remodel. It was the first time they had ever bought an existing club with the intentions of remodeling it to their specifications. It was a great experience, and then the economy hit.” As was the case with many, many builders in the industry, the economic downturn had far-reaching effects for Gravell. “They offered me a few options for transferring to different parts of the country, but I decided to head back to Texas and start Gravell&Co. That was in 2008.” And with that, Gravell hasn’t looked back. “I came back, and started calling friends for referrals and to get the lay of the land. One friend mentioned he had a rent house in Boerne, and so that’s how I got to Boerne. I’m still in that same rent house. On the business side, I picked out 10 people that were strong business minds and really just picked their brains. I learned everything I could. Their common message was to not try to grow too fast. In fact, my first job was based off one of those initial meetings.”
And, despite the bad economy, Gravell has been growing ever since. “From my viewpoint, the bad economy actually helped me. I was coming in with no overhead, and I was initially doing a lot of remodels. It was strictly word of mouth, and it just grew from there. The remodeling side of the business is something I’ve done, and I’ve had a lot of experience in it, and it goes back to the relationships that are formed. But I really enjoy the complete creation process of new construction.” As Gravell has grown his business, his portfolio of experience continues to grow as well. “Currently, I’m building a few in the Alamo Heights area as well as Boerne. I’ve done a $40,000 kitchen to a $4 million dollar house. I’ve done 7000 square foot additions, and I’ve done a 5500 square foot horse barn. For me, I’m about growing my relationships right now. I’m growing the business based on that. As long as I get involved with good people, then the project invariably turns out well. And that leads me to new opportunities.”
Jonathan Gravell www.gravellco.com 210-872-8729
Interested in seeing your business featured in
Joe Canales recently won the Top 20 Award from Keller Williams Heritage for sales closed in July. Joe, a San Antonio and Hill Country real estate expert, is an Accredited Buyer, is Representative and Accredited Luxury Home Specialist. Begin your real estate transaction the right way. Contact Joe Canales today 210-722-2624
? Call 210.507.5250.
The national real estate company Keller Williams based in Austin TX is pleased to announce the formation of a new Farm and Ranch Group. Heading up the new KW Farm and Ranch group are RLI members David Faust, Rick Doak and Realtor Cheryl Fowlkes. KW Farm and Ranch looks forward to working with RLI and RLI members in the future. Rick Doak | 361-243-1040 (c) | 512-263-9090 (o) | jrdoak@mac.com Cheryl Fowlkes | 512-749-8509 (c) | cherylfowlkes@earthlink.net David Faust | 512-940-3300 (c) | diamondfranch@hotmail.com
If you have news, let us know! news@smvtexas.com hcrer.com | 15
16 | October 2011
Staging is the new trend in real estate today. Whether it be a downtown office in a busy city or a small town country home on a ranch. Studies show that posing is everything in quick sales. Professional stagers are commissioned to furnish a vacant office with leased furniture, declutter and rearrange an occupied home, or vice versa. Realtors and property owners alike need to go the distance to make a listing look comfortable, livable, and enticing to the client. You want to attract that sale. Selling happens when buyers’ emotions and senses are flirted with. You need to clean it up, dress it up, groom it, and make it smell nice for that first impression (even if it is a fixer-upper!). Stage the property appropriately to fit the expectations of a fitted buyer. Curb Appeal. How attractive is your listing at first sight. What does a customer see when he pulls into the drive? Tidy up the place. Hide trash cans. Clean crisp windows must shine from a distance. Complete any unfinished projects and tend to any minor repairs. Make sure to pay special attention to landscaping, by pruning messy trees and trimming bushes. Sometimes landscaping can make all the difference on an ordinary or dated structure. Put away any tools, toys, cluttery yard art, and excessive lawn furniture. Look at the properties next door, too. See if there is a nice way to encourage neighbors to touch up as well. Messy neighboring properties can and have deterred picky buyers. One more suggestion, perfect this picture by painting a fresh coat of color on shutters and the front door, or where needed. This may sound exhausting, but how badly do you want to make this sale? Now stepping into the location, what senses are being triggered? How does it smell? Of clean carpets and fresh paint? Maybe baked goods, which remind us of home??? Could it be the snacks that are provided for a hungry buyer needing an energy boost? That sometimes can be a nice touch. Replace pleasant smells with the culprit to those bad smells. You might need to send a stinky pet to the groomer, or find a temporary home for him with a friend or relative. Candles are a nice touch of scent and have a pleasing golden glow for a dark corner or shelf. Which brings us to warm lamp lighting that can cozy up a home, instead of strong fluorescent or overhead lighting that can highlight any imperfections. Ample lighting is needed where detail is a factor. Try leaving lamps on, but turning on the overhead after entering the room. The buyer gets ambiance and the naked truth, together. Listen. What noise do you hear, if any? No noise is usually a good thing. If that is not the case, then soft background music is healing. Thank your neighbors for silencing a barking dog. Declutter messy surfaces. Piles of paper, stacks of magazines, and a refrigerator full of magnets, can be distracting. Put away personal collections that attract dust or confuse a buyer trying to see the structure and details to walls and shelving. Downsize the accessories and any extra furniture. Simplify to allow the prospective buyer to envision their own furniture placement in each room. Use slipcovers to give any worn furniture a quick facelift. See if better pieces can be borrowed from another location, or rented until sale is final. Furniture placement is everything. Make sure every room has a purpose. Define conversational spaces with area rugs. Arrange furniture to share viewing for the television, fireplace, or any outdoor beautiful scenery, and facing guests seated within. This is attained by separating the seating into different personal spaces, there being enough space provided, of course. The furniture should not all face the center of the room, clinging to each wall. There is a pleasing flow of energy throughout these divided spaces that is calming. Be prepared to provide any important or interesting history to this home or building. A personal chord could be struck that would make a buyer relate to the location. Just do not get too sentimental, after all the work you have done on the place, and how fantastic it finally looks, one may just decide to take the listing off the market! Shelby Luke, of Rearrangements By Shelby, is a home decorator/organizer in the Texas Hill Country town of Boerne. Her passion is transforming homes from boring and predictable, to affordably fabulous and personally unique. Using out of the box ideas with the existing furniture, accessories, and loved collections, she provides stylish and economical ways to fix up, or update, any eclectic mix, to attain the look they desire.
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Downtown Kerrville is enjoying a revitalization program, courtesy of several forward-thinking families, a restaurant entrepreneur, and the City of Kerrville. A lot of money is being invested, many plans are being made, and the future of the area looks bright. In studying the history of Kerrville’s downtown, the only constant I find is the constant of change. Downtown Kerrville has changed almost continuously since the streets were first platted. The first lot sold in the newly-platted city of Kerrville was lot No. 99, sold to Daniel Arnold, who listed his occupation as “bear hunter.” He bought the lot from Joshua D. Brown, the founder of Kerrville, in 1856. I’m not certain Arnold ever lived on his purchased lot; history records Arnold lived in a shack on the “public square,” next to his corn field. The “public square” is now home to the Kerr County Courthouse. Mr. Arnold’s lot was part of Block 8, the block bounded today by Water, Main, Sidney Baker and Earl Garrett streets, the same block that’s been so much in the Kerrville news lately. With the Cailloux Foundation busy at work renovating the old Schreiner Company building, with the City of Kerrville drawing up plans for a new Kerrville City Hall on that same block, with Schreiner University accepting the Charles Schreiner home and museum, and with the Kerr Arts and
Above: Exposed staircase to Schreiner basement
Provided by Joe Herring Jr Cultural Center flourishing in Kerrville’s old post office, Old Block No. 8 will once again change Kerrville. Across Water Street “Hagi” Hagiholam, owner of a chain of Mexican food restaurants, is renovating the Arcadia Theater. And just down Water Street the Butt-Holdsworth Memorial Library is being redone, largely with donations from Charles Butt of the H. E. Butt Grocery Company in San Antonio. Old Block 8, though, might be the key to the revitalization efforts. On that block Captain Charles Schreiner established a small mercantile store on Christmas Eve 1869. His enterprise thrived and expanded into banking, ranching, real estate, marketing wool and mohair to the world, and, eventually, philanthropy. Block 8 remained the center of his vast operations, with both the store and his home located side by side there. At one time most of the buildings on that block were his -- from the fine St. Charles Hotel on the corner of Water and Sidney Baker streets, to his grand department store on the corner of Water and Earl Garrett streets. He had a wool warehouse in the middle of the block (opposite today’s Arcadia Theater), which even boasted a spur of the San Antonio and Aransas Pass Railroad, a railroad he was instrumental in bringing to Kerrville from San Antonio. His home still stands, on Earl Garrett Street, though the greenhouses and gardens he once owned next to the home are gone, replaced by the post office built there in the 1930s. Recently a section of rail track was found in the block, a rusting testament to the commerce once bustling there. Kerrville’s Cailloux Foundation, purchased the old Schreiner Company store building and has undertaken an extensive renovation program of the building. A bar is planned for the basement; retail spaces are being built; a restaurant space is available; and offices are planned upstairs. I’ve wandered through the construction and I can attest the project is being built to the highest standard. A newly-installed elevator will open both the basement and upper story for lease. The work is scheduled to be completed by early autumn, 2011. Schreiner University recently accepted the old Schreiner home as a gift and plans to use the structure as both a museum and an event space. The two story rock building has many charming features and will remain a jewel in the downtown area. The thing I like about the old building is how quiet it is inside. With its thick stone walls the noises of the twenty-first century seem to fade away. The home is elegant in a “frontier” way -- as comfortable a house as possible when it was built. The City of Kerrville, through the generosity of a gift of land from the Cailloux Foundation, is planning to build a new city hall in the same block, Block 8. I’ve seen plans for the structure, a multi-story rock building that should consolidate many of the city’s scattered offices around town. In addition, the area around the new city hall will be level and designed to support events such as “market days” and festivals. One idea close to my heart in the new design of the city hall area is a history pavilion which will tell the story of the block and the community which grew up around it. The anchor for the block is the Kerr Arts and Cultural Center, housed in a Depression-era post office 18 | October 2011
Left: Sid Peterson Memorial Hospital 1949 Below, clockwise: - Chas Schreiner Co. 1890s - Schreiner wool and mohair warehouse 1890s - Arcadia 1920s - Mountain St. (now called Earl Garrett St.) Kerrville - St. Charles Hotel 1930
building. This center has been hosting art shows and exhibitions since March, 2000. A wide variety of events have been held there: fine photography, woodworking, water color, carving, and other art exhibitions, as well as dinners and galas. This center, led by artists and craftspeople, has dynamically changed the downtown area for the better. The Arcadia Theater, built in the late 1920s, has seen many changes, too. Built at a time when the movies were still silent, and undergoing renovation and change several times, a group of investors, led by “Hagi” Hagiholam are converting it into a meeting and event space. Plans include leveling the floor and adding new decoration to the interior, as well as the installation of a kitchen and other amenities. Given the successes of Mr. Hagiholam’s other endeavors, I expect this one will succeed as well, and will draw visitors and home folk to the downtown area. And just down Water Street the Butt-Holdsworth Memorial Library is undergoing a much-needed renovation. When it was built in 1967 the library was not only state of the art, but a place of beauty and clever design as well. Libraries have changed a lot since 1967, with digital technologies being the most recent change. A committee of community leaders met and tried to imagine what a 21st century library could be; they were committed to building for the community’s future needs while staying true to the original core mission of the facility. Led by experts from across the state, and aided by local professionals, the planned renovations at the library will not only bring it up to date, but allow it to be ready for the future of
libraries, whatever that may be. The property is being transformed into a campus. What had been a rag-tag collection of buildings is being united into a modern library, complete with a playground for small children. Studies show children who love libraries tend to love learning; the playground will serve as icing on the library’s cake, making the facility even more appealing to youngsters and their families. Given these investments in Kerrville’s downtown area, I expect the value of the available buildings to increase, especially when the success of these projects becomes more apparent as they come closer to completion. These planned changes are a far cry from the day Daniel Arnold, a bear hunter, bought a lot from the founder of Kerrville, Joshua Brown. Yet only 155 years separates that transaction from the projects currently underway. It’s a good time to be in Kerrville, and an even better time to be right in the middle of it all in downtown Kerrville. Joe Herring Jr. is a Kerrville native whose blog, www.joeherring.com, tells the history of Kerrville with rare historic photographs. hcrer.com | 19
Provided by Brett McDowell The financial meltdown of 2008 that sparked what the benevolent mass media now calls “The Great Recession� took its toll on every industry sector in these United States. Most businesses, with a few outlying exceptions, have at one time over the past few years (some perpetually) experienced a period of difficulty arising from a sluggish economy and all the comforts it affords. Most notably, businesses have experienced decreased revenues in the face of increasing input costs (I’ll save my inflation conspiracies for another day). Although it seems like a lifetime ago, I recall one of my professors from college mentioning something about success in business being directly related to the concept of more money coming in than going out and that it was bad if the inverse occurred. Kidding aside, this simplistic and somewhat ridiculous statement pretty sums it up for all of us, business owners and bankers alike. We all must have more coming in than going out. The general economy of the recent past has pushed against us all in that regard. It has affected the ability of the credit markets to operate freely. We are seeing signs of recovery but challenges remain. To understand the intricacies of the credit markets is a gargantuan task. There are the monetary, equity, and derivatives markets to consider. There are institutional regulatory considerations that differ among large (systematically important financial institutions) banks and community banks (typically $10 billion in assets or smaller). More specifically, banks have different abilities depending not only on their size and lending philosophy but also on their capability to lend as determined by regulators upon consideration of capital adequacy, loan concentrations, and earnings (among others). Then you have regional economic and market considerations (thankfully Texas has been the garden spot as compared to the rest of the nation and most of the world). None of us, banker and business
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owner alike, really has much control over any of the above. We can make our incremental contributions but the rules of the game are largely fixed by forces outside our control. I’ll choose not to try to wrestle with that 800 lb. gorilla, rather I will focus on the factors we can identify, grasp, and understand. If not control. On the bright side of the lending equation, liquidity in most banks is excellent. The oft mentioned TED spread (the difference between the 3 month Treasury yield and 90 day LIBOR) hovers around 30 bps and indicates that banks are freely lending to one another. Also, uncertainty in the equities markets and low yields on government securities has promulgated a flight to safety/quality to FDIC insured bank deposits. With the increase in the basic FDIC coverage level from $75,000 to $250,000 per depositor, banks are typically flush with money to lend and looking for quality loans in which to deploy that liquidity. By looking, I mean banks are the business to lend. Simply put. In order for a bank to adhere to my wise and ambiguous professor’s advice, earning assets (loans) must generate enough income to cover the cost of those funds, pay the overhead, and generate an acceptable ROE for the shareholders. If a bank can’t do all three of the above, it is not a good situation for anyone – most importantly the borrower and depositor. Banks want to lend, banks have to lend! Considering the fact that banks must lend, the conversation comes down to two considerations. Loan demand and loan type. Loan demand is increasing but remains below historic levels. This is a by-product of high unemployment, a slumping housing market, and some degree of general uncertainty on the part of the borrower candidate. There is, however, some differentiation in the demand for loans based on type. For example, commercial and industrial (non-real estate) loan volume by quarter has showed steady growth with the generalized increase in durable goods orders and consumer spending since the meltdown. Also, with the first round of stimulus spending – SBA was granted additional funding and the Small Business Lending Fund (SBLF) was established to get money on the streets where it is needed. Small business loan originations have increased post-stimulus because of this. On the other side of the coin, due again to a generally weak real estate market, originations for all types of residential real estate loans (land development through secondary market mortgages) are obviously down from pre-meltdown levels. Month to month volatility is the name of the game as we continue on
this seemingly long and steady path to recovery. Real estate professionals and lenders alike sing a different tune from month to month depending on the status of their personal loan or closing pipeline. One month up and optimistic, the next month down in the dumps. The important thing to remember for all of us is to “keep paddling”. For potential borrowers, there are several things you can do to maximize your probability of obtaining desired financing in this environment. One, know the strengths and limitations of your industry, market, and regional economy. Choosing how you filter and analyze information (reading vs. radio or TV) will help you accurately pinpoint relevant data and help you avoid groupthink negativity that sometimes comes with watching the 6 o’ clock news. Being informed means being in control! Two, know your bank and your banker. You should be welcomed by your lending officer to ask questions about the institution’s lending philosophy and capabilities. If not, you may be with the wrong bank. Three, providing accurate, current, and organized financial information for your business and yourself at the time of application is a must! Also, financial projections that account for an extended recession and/or other situations will likely help you build a strong case. Plan for the best, worst, and probable scenario. Here’s to a strong recovery! C. Brett McDowell has a Bachelor of Science from New Mexico State University in 2001,a MBA in General Business and Finance from Texas Tech University in 2003, and a Graduate Banking Degree from Southwestern Graduate School of Banking at SMU in 2007. He began his career in 2003 as agricultural lender upon graduation from TTU. Went to work for HCSB in March 07 as the Vice-President, Commercial and Business Banking in the Kerrville Market.He is married to Ginger McDowell, a staff pharmacist for H-E-B in Kerrville and Fredericksburg. Brett and his wife recently welcomed a daughter. Two dogs, Kippy (Australian Shepherd) and Roli [Jack-o-be, (half Jack Russel half Beagle if you were wondering].
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With roots in digital bulletin boards from as far back as the seventies, social media has spread out into all corners of the internet. From chat to dating services to content sharing, social media has helped to transform the internet into an interactive space to share ideas and information with anyone who is reading. Many think of online networks like Facebook or Twitter when they hear the term social media, but today it goes far beyond such platforms and has contributed substantially to the direction the internet has grown. Online discussion forums, comments on YouTube videos, and reviews for products on Amazon are all branches of this growth, and many businesses are discovering how to use the many facets of social media to help develop and further their brand. The Real Estate sector is no stranger to social media. With more than 84% of realtors using it in some form, you can no longer afford to stay out of the game. With schedules that seem to get busier every week, consumers are looking to the internet to provide them with information, making it an obvious and opportune vehicle for realtors to share their listings. Prospecting for new clients is essential for realtors. In the past knocking on doors and making cold calls were two of the main avenues available for this process. Social media, when used effectively, can trim the wasted time involved in these and other methods and streamline prospecting. It enables homebuyers to view listings on their own time, not when a realtor shows up on their doorstep, and regular updates and sharing of new information keeps bringing them back without a phone call for every update. At the same time some customers want to have more direct contact and personal updates. Social media facilitates in providing this for those who want it and provides support in finding the form of communication that works best for them. What does it take to be effective in the online world of social media? The first key is to remember that this is not a place to simply talk at customers. Unlike TV or print ads, the internet enables people to engage with others and that’s exactly what they’re looking for. They want to talk about their thoughts and ideas and see what other people have to say as well. Social media requires both a casual and professional approach. A potential client doesn’t want to feel like she is talking to a machine or reading a script someone has written. Social media experts have perfected the casual professional approach. Their tools and experience can easily present realtors and their optimistic content to the reader in a way that engages interest and brings them back for more. They study the changes and trends online so you don’t have to waste time watching what the competition is doing in social media. With a minimal investment these experts keep you from getting stuck in the pitfall of the do-it-yourself syndrome in a world where realty professionals may not have the time or resources to remain effective in. One of the least used but most effective tools for an online campaign is the use of videos and interactive home tours. While 73% of homeowners are likely to list with realtors who can create video only 12% of them have YouTube accounts, the leading platform for online video advertising. Almost half of online homesearchers walked through a virtual tour but less than a quarter of them visited the home in person. Once again, this tool helps to shave off wasted time by streamlining the process of helping buyers find exactly what they are looking for on their own time. Social media also enables potential clients to see if you know what you’re talking about. Showing them that you have an active, working knowledge of your area gives them confidence to trust your recommendations. Blog articles showing key features of different neighborhoods, tailored responses to questions posted for everyone to read, and advice for specific demographics all help those who read your content to see that you know exactly what you’re talking about. A big killer of online campaigns is lack of fresh content. If you haven’t posted anything new in weeks or questions and comments aren’t being responded to promptly, users may assume your site and listings are no longer current and may look elsewhere to find more up-to-date information. Having a dedicated consultant keeping things updated for you can be a very helpful asset since the truth may be that you were simply too busy to fit updates into your schedule. The scope of your social media presence should not just encompass potential clients but also past or existing clients. Their positive comments and recommendations for you are the most important currency in the social world. Encouraging discussions with prospective clients helps to build your site into a multi-faceted space for ideas and information, and most importantly it will lead to increased prospective clients and eventual sales. These tools all work together to create a precisely targeted campaign that fosters new relationships and solidifies past client endeavors. A social media expert can be a helpful and necessary tool to build your business’s online presence over the next year. In our current economic state the urgency of utilizing social media as a business tool cannot be understated. As real estate has yet to use it to its full potential now is the perfect time to start growth. Those of you bent on research: btobonline.com, smallbiztrends. com or search social media ranking on your favorite search engine. Article by: Georgineanna Maloney & Chris Hopf, GMedia, Inc. www.gmediatx.com
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The city of Bulverde, with a population of about 4,600, claims to be “the front porch of the Texas Hill Country.” On the Cibolo Creek, just 19 miles west of New Braunfels in southwestern Comal County, Bulverde was founded in 1850. Since its humble beginnings, this small Texas town has become a thriving community, one local residents and visitors enjoy immensely. It is still, however, a largely untouched area with certain challenges that make expansion and development next to impossible –or, at the very least, incredibly difficult. Water. It’s an issue on the hearts and minds of Texans all over the state. Whether it’s water conservation, watering restrictions or water shortages –people are talking, thinking and taking action where water is concerned. Developers looking to build in Bulverde are no different –they too have water on the brain…only they’re focusing on a different kind–wastewater. At present, Bulverde does not have a wastewater treatment plant or a city utilities company. In 2001, efforts were made by city officials to create a Bulverde water company with a wastewater plant in mind, but to no avail. “After the city purchased 400 acre-feet of water and began to move forward with plans to create a utilities company, the people of Bulverde decided they didn’t want an above ground water tower,” said Bulverde City Councilmember Shane Reynolds. “We lost several hundred thousand dollars on that deal and we haven’t attempted such a venture since.” In 2008, The Guadalupe-Blanco River Authority (GBRA), Canyon Lake Water Service Company (CLWSC) and City of Bulverde agreed to transfer certain water supply facilities and contractual rights from GBRA to CLWSC to enable CLWSC to provide municipal water supplies for the Bulverde service area. At the time, getting water to area schools was a major concern. Back then, GBRA General Manager Bill West said, “We have long been concerned about water supply to the area. We are glad to see the citizens of Bulverde will now have a retail water system in place. We have a good working relationship with Canyon Lake Water Service Company and look forward to serving their needs as they manage the retail water service for Bulverde.” Unfortunately, not much else has been done for the city in regards to water since, although Reynolds says he is in the process of trying to bring the water issue back to the forefront.
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“The bottom line is that there is not enough groundwater to sustain the Hill Country in the years to come. Surface water is the key to the future,” Reynolds said. “I’m doing what I can to reignite discussion in regards to water distribution. As for a wastewater treatment plant, forget it. That won’t be happening anytime soon –at least not in the next ten years.” Without a wastewater plant or pipeline infrastructure, people wanting to relocate to Bulverde and build a home must install a septic system and purchase the minimum five acres necessary for such a system. They are also required to put in their own water well. Businesses looking to put down roots in Bulverde have two choices –install a septic system or build their own wastewater treatment plant. Not only is the installation of a septic system a costly venture for potential residents, the wastewater issue quickly turns away commercial developers who simply don’t see either choice as a reasonable option. “Bulverde is on the radar as a hotbed for growth and there is a real push for development,” said Charlie Hill, the Vice President of Development for DH Investment Company. “There is a demand for both housing and commercial development there, but the wastewater issue is impeding forward movement. Sure, there are some who do not want expansion and resist the idea of economic advancement in Bulverde, but there are many others who want to see more businesses, restaurants and shopping options in the area. Inevitably, Bulverde will become a much more densely populated area. The question is, how soon? That answer largely depends on how this particular issue will be resolved.” Hill knows all too well the challenges that arise when developing in Bulverde. When DH Investment Company set the city in its sights several years ago, investors knew immediately they were looking at a long and tedious process. In bringing the 767-acre master planned Johnson Ranch community with just under 1,000 homes to fruition, DH had no choice but to build their own wastewater treatment plant –an endeavor that will ultimately cost the company more than $5
million. After enduring the two-year permitting and entitlement process required by the Texas Commission on Environmental Quality (TCEQ), DH is just now ready to begin construction on the plant and the subdivision. Both ground-breakings are set for the first quarter of 2012. Water will be provided through GBRA from a pipeline that currently runs through the property, bringing water from Canyon Lake. “We are all very excited to move forward with construction,” said Hill. “Getting here has been quite a journey with many trials along the way. While we are grateful to have the opportunity to build in Bulverde, it has been quite an undertaking.” According to DH, Johnson Ranch will be located near Hwy 281 and Hwy 46, located in the high-growth corridor along U.S. Highway 281. In addition to the newly completed Johnson Ranch Elementary School with 640 kids in attendance, Johnson Ranch will offer a unique lifestyle opportunity with nearly one-third of the community preserved as open space, trails, parks and other amenities. Johnson Ranch will include approximately 100 acres of mixed use, commercial and retail development with nearly a mile of frontage along Highway 281. This development stands to significantly increase Bulverde’s population and encourage a significant increase in the area’s economic development and sales and property tax revenue. “While Bulverde obviously has retail water brought in for basic necessities, not having a city wastewater treatment plant presents a real barrier for Bulverde’s upward mobility,” Hill said. “The area is just begging for affordable housing and more jobs. Placing a regionally operational wastewater treatment facility would encourage more developers to target the area, which, of course, would bring both.”
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By Leah Bredemeyer With its extraordinary views, amazing homes and multitude of amenities, Cordillera Ranch has become one of the most luxurious places to live in the Hill Country. Now more people will have the opportunity to experience their rustic elegance as Cordillera Ranch moves into their next phase of incomparable acreage homesites. According to Charlie Hill, Vice President, Development & Marketing, the new lots being planned will be more of the same popular acreage product that they’ve offered for years, with a few strategically located, smaller neighborhoods offering lots under an acre. Barry Denton, Director of Real Estate Sales, says marketing research shows that the price range for new homes from $500K to $750K at Cordillera Ranch is underserved. Many people are looking for the lifestyle that Cordillera Ranch offers, but in the lower price range. Trends are heading toward slightly smaller but fully amenitized homes. Hill begins, “We’re going to have more paved walking and jogging trails,” he said. “It’s going to be a little more refined. What we’ve done in the past has been more natural. In the new area it’s going to be more suburban, but just in a few pocket areas.” Although these lots will be smaller, Hill said it’s their desire to have them backing up to a green belt or the trail system “Residents will have walking paths, (they can) take strollers and bikes on,” he said. “It’s something new for around here. We currently have a huge trail system in previously developed areas of Cordillera Ranch, but those trails were created as nature/horse trails. These new trails will be much more pedestrian friendly and will loop in and around neighborhoods keeping everyone more connected to the community. I think doing that will give us unique, new amenities and features over there. While some areas may feel a bit more suburban, we’re still going to preserve
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the natural landscape that Cordillera Ranch is known for.” Delivering some of these smaller lots will allow for certain neighborhoods to offer nice new custom homes in the $500’s to $700’s, but there will also be more of the same exclusive high-end sections. According to Denton the smaller lots appeal to younger families looking to move up from a smaller lot/home package in the city. “Many families desire to move to the more peaceful life of the Hill Country. With our vast amenities and natural beauty, and the highly acclaimed Boerne schools, we offer an incomparable lifestyle. But our research also shows that this product appeals to others who may be downsizing or looking for a second home in a highly amenitized area.” Hill said, “With completion of all of the Clubs amenities and this amazingly unique Hill Country lifestyle, there is a real ‘youth movement’ in Cordillera Ranch. Adding this new section will allow us serve the family that wants to be in Cordillera Ranch to enjoy the lifestyle but doesn’t have to have 3 acres and a million dollar view to enjoy it. We believe there is a pent up demand for this product and expect it to be a huge hit” “This new product will complement our recently released Di Lusso Villa product in that it will allow buyers to custom build a product for their lifestyle,” Denton said. “We’ve sold nine Villas in less than a year, and although some interior customization is allowed, the exteriors must remain consistent with the Tuscan theme that is helping to create the appearance of a Tuscan village on the hilltop above Cordillera Ranch. It’s a great product for someone who wants to downsize, not just the size of their home, but downsize the upkeep and responsibility of a home or second home. Exterior maintenance and a technology package that helps manage the home from anywhere in the world, via a smart phone or tablet, are just a couple of features making this possible.” “As our community expanded from the original 4,200 acres to its current 8,700 acres, we wanted to make sure every
homesite had large areas of native vegetation to create privacy and protect the habitat of the abundant wildlife we have here,” says Hill. “When our developing is complete, approximately 80 percent of the 8,700 acres will remain in native vegetation.” Since developing began in 1997, 1,100 properties have sold and there are 525 homes occupied, in the development which is a mere 15 minutes from San Antonio. Currently, there are 50 homes at some stage of construction or going through the architectural process. Homes feature underground utilities including GVTC fiber optic to the home, all in a secure guarded/ gated community. Denton also said building requirements will remain basically the same. “There may be some slight differences in minimum square footages from neighborhood to neighborhood as is currently the case,” he said. “Everything will still be managed by the Architectural Review Board to maintain the high standards of the community.” According to David Hill, President of DH Investments and Cordillera Ranch Development Corporation, Cordillera Ranch is stable and has ridden out the recession well. The past few years have been tough for residential golf communities. “We were fortunate to have added 62 new golf members and only had 12 resignations,” he said. “We didn’t offer price incentives or discounts. This year we are adding, on average, about five new members per month. We currently have over 900 property owners, 525 occupied homes, about 50 homes under construction, approximately 420 Golf Members in a golf club capped at 450, plus around 180 Ranch Members [social] for a total membership of about 600 current members.” Cordillera Ranch has something for the whole family all available inside the community. For just one membership you have access to all seven clubs.
The Golf Club is a Jack Nicklaus Signature design that has consistently ranked in the top 3 courses in the state according to the annual the Dallas Morning News golf course rankings. The Spa & Athletic Club provides state-of-the-art fitness equipment and relaxing spa treatments. The Equestrian Club has the original ranch stables, lighted and covered riding arenas and 12 miles of riding trails. The River Club lets you explore the Guadalupe River with everything provided from canoes and kayaks to rods and reels and even all the fixins’ for a cookout on the river. The Tennis and Swim Club lets you enjoy multi-level resort pools and tennis programs, leagues and tournaments. The Rod & Gun offers a private ten-station sporting clay course or for a little unique gamesmanship try the wobble trap. Guides will also take you fishing at the Swede Creek Lake inside the community or on the Guadalupe River. Cordillera Ranch Realty welcomes realtors to bring Realtors and their clients to Cordillera Ranch Visitor’s Center. “We have the most up-to-date information about available properties and are happy to give Realtors and their clients an historical perspective of the ranch as well as an overview of the amenities including the Clubhouse complex,” Denton adds. “Our staff of professionals averages 10 years experience exclusively at Cordillera Ranch. We’re here to engage in full-service assistance, or simply serve as a ‘welcoming party’. Let us know how we can help and we’ll respect your time and relationship with your clients accordingly!” Cordillera Ranch in the business to provide people with the best the Hill Country has to offer. “We’re high-end and luxury living,” Hill said. “It’s a lifestyle.”
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Provided by Randal Dahl
For most, a home is the single largest asset and investment an individual or couple owns. The purchase of a new home can lead the buyer to be filled with the excitement and anticipation of a new community, new surroundings and all the other joys associated with property ownership. This excitement can be even more magnified in the Texas Hill Country with its stunning scenery, landscape and vast choices in property location. Maybe the new purchase is their dream lakefront property, a resort atmosphere, a rustic ranch setting or that charming small town community. The Texas Hill Country offers numerous choices for families, empty nesters, retirees and those searching for the perfect secondary home/retreat. With all of this excitement, it is very easy to see how the process of protecting that investment can become a secondary thought. Call a couple of insurance agents, get a couple of quotes and buy the cheapest one presented. Who can blame them, right? That’s just the way the process works.
Homeowners insurance in Texas is as unique as the Hill Country itself. The process of properly insuring the investment can be challenging and complex. Some of the initial decisions required in the homeowners insurance purchase include choices between insurance coverage forms, questions on how much insurance coverage is needed on the home and questions on replacement cost versus actual cash value. These decisions are quickly followed by other questions such as is the insurance amount correct based on the quality of construction, are all available discounts included in the policy and have all questions uniquely inherent in this specific property been addressed (like flood coverage or personal choices on scheduled jewelry and other items). It can be overwhelming to work through the various coverage forms and endorsements in Texas and understand the differences between each. Let me name just a few of the coverage forms that are currently in the market…HO-A, HO-A Plus or Enhanced, HO-B, HO-C, HO-3, HO-3 Enhanced and Company Specific Forms. Who can keep up with this and know they have the right coverage in place? Gone are the days of simple homeowners insurance quotes and coverage. Today, homeowners insurance policies are not commodity products. There can be great variation between one policy to another, and pricing is not always a fair indicator of quality. In the unfortunate event that a homeowner suffers an insurable loss on their property, the realty will hit quickly that quality of coverage is the paramount issue. So, now that I’ve successfully clouded the picture and shed a tiny light on a few of the complications we deal with daily in the insurance
profession, maybe you just hope your clients never ask a question about insurance. This is the client’s decision, and the less involved you get the better, right? As real estate professionals, your clients don’t expect you to be insurance experts, and you certainly don’t need to be bogged down in the quagmire that is homeowners insurance. But I think we’d all agree that the more educated advice you can give your clients the better they feel about their experience with you and the better the process works. So here is the one piece of advice I give, and it’s not rocket science. Insurance agents love relationships! Again, we’re not selling commodity products so the more information we can get on a client the more capable we become in providing the right insurance policy that fits the client’s specific needs. Even for me in this business, the idea of sitting down with an insurance agent and telling that person everything about my investment and my life in general is about
as appealing as visiting my dentist or attorney (no offense to those professions as I’m lumping myself in the same category), but that’s exactly what needs to happen to create the most benefit to the homeowner. I encourage you to network and find a local insurance agency with a solid reputation, experience and knowledge--a trusted partner for both you and your client. The Texas Hill Country is a great place to do business, and there are many highly qualified agents providing local service to your communities. Want more information related to insurance coverage or licensed insurance professionals in Texas? The Texas Department of Insurance and the Office of Public Insurance Counsel provides a free service to consumers found by visiting their website at www.helpinsure.com.
Randal Dahl is an insurance agent with Galloway Insurance Agency with offices located in Horseshoe Bay, Marble Falls and Burnet. He began his insurance career in Dallas in 1996 and moved to Marble Falls in 2006 with his wife and 3 small children. Galloway Insurance Agency is a locally owned independent insurance agency offering auto, home, business and life & health insurance to residents in the Texas Hill Country for over 75 years.
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Provided by Jeannemarie Wilson The 82nd Texas Legislature adopted new laws regulating residential property Homeowners’ Associations (HOAs) requiring changes from top to bottom for HOAs across the state – new laws that protect homeowners by reforming the rules under which HOAs operate. The new legislation was signed into law by Governor Rick Perry on June 17, 2011. Some of these new HOA parameters go into effect on September 1, 2011; others go into effect on January 1, 2012. Hence, many HOA board members are scrambling to get in compliance while others remain unaware of the changes made. The new laws are primarily aimed at helping homeowners who are delinquent in their association dues, making it more strenuous on HOAs to foreclose on a property under an assessment lien, expanding homeowners’ remedies, the calling for open meetings and records and expanding a homeowner’s property use. Several highlights of the new HOA laws that will affect Texas homeowners are set forth. HOAs with more than 14 lots will be required to provide an alternative payment plan, which must be filed in the county records, for members who are delinquent in their HOA dues which offer the opportunity to pay their debt within a reasonable time period no shorter than three months. Debts paid under this alternative payment plan would incur no additional fees or penalties. Additionally, HOAs are now required to apply payments in a prescribed manner where amounts owed by the member must be applied in the following order: Delinquent assessments Current assessments Attorney’s fees Fines Any other amounts owed In the past, an HOA could apply payments made by the homeowner to pay attorneys instead of delinquent fees and still try to foreclose. A homeowner may now avoid foreclosure by paying the delinquent fees first. Now, HOAs will be required to obtain a court order for foreclosure in order to foreclose on a property under an assessment lien and such foreclosures may not begin until 60 days have elapsed after the HOA provides written notice to the homeowner, including the total amount owed and the opportunity to cure the debt under an alternative payment plan. Moreover, HOA members may actually elect to remove foreclosure opportunities entirely in the case of delinquent HOA dues with a two-thirds majority vote. This is a huge victory for homeowners because the new law states that a vote to remove these foreclosure opportunities
may be petitioned by just 10% of the voting ownership interests. The new laws mandate open meetings, open records, open voting and other governance guidelines for HOA members. HOAs will be required to give its members 10 to 60 days notice of board meetings, elections and voting and will be required to hold open board meetings. However, executive sessions are allowed under certain circumstances. HOAs will no longer be able to legally keep homeowners from voting or running for the Board of Directors of an HOA if the homeowner is not a “member-in-good-standing”. No longer can owner voting rights be suspended as the new legislation protects a homeowner’s right to vote by voiding provisions in HOA documents that disqualify the homeowner from voting in board elections or on matters affecting his rights and responsibilities. Furthermore, HOAs will no longer be able to legally refuse to provide records to homeowners, as long as those requests meet the parameters of the new laws. The HOA must adopt and file of record an open records policy which addresses records production, review and copying, otherwise, the HOA cannot charge the nominal fee for copies of such records. If a homeowner is denied access to records, he will be able to use the local inexpensive justice of the peace courts to enforce document requests. Likewise, the new laws protect certain property uses that have often been the bone of contention in HOA’s deed restrictions and design guidelines. This legislation mandates that HOAs must allow rain harvesting devices, flags and flag poles, solar energy devices, certain roof shingles that are wind and hail resistant, energy efficient or solar generating, and religious displays on front doors – all subject to specific guidelines, however. While many of these laws may have to be ironed out overtime, the passing of this legislation is a success for homeowners across Texas. Understanding the new laws is challenging because Texas did not adopt a single comprehensive act. As a substitute, we have a plethora of law changes which put an end to overzealous Texas HOAs. It is paramount that each HOA understands the new laws and requirements and makes efforts to comply in order to avoid numerous claims against the HOA. Jeannemarie Wilson is a transactional attorney practicing general business law, real estate law, estate planning and probate and owns a solo law practice located at 470 S. Main Street, Suite 4, Boerne, Texas. She is on the Board of Directors of the Greater Boerne Texas Chamber of Commerce and is the Chair of the Leadership Boerne Program. For more information: law.jmwilson@gmail.com; (830) 331-9935
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