It’s a great idea to talk to a lender even if you aren’t planning on purchasing a home for a year or two. Sometimes, things appear on a credit report that should not be on there, like a college loan that was paid off years ago. Understand, the challenge often with a credit report is not in releasing the lien — it’s about waiting for that line item to not appear on your credit report anymore which will raise your credit score. It can take 3 to 6 months at minimum for the debt to no longer appear on a credit report, so I encourage everyone to know your number even if you aren’t buying a house anytime soon.

Austin Real Estate Market

The Austin Texas Real Estate Market is strong and will remain strong with mortgage rates in record lows. If you are thinking of selling, I encourage you to talk to me about your local inventory, because after all markets are local. 2009 may not have been your year to sell, but 2012 may very well be.

Visit me on Sunday, January 29th from 1 – 4 pm.

Directions:  South of William Cannon on Manchaca Rd to Right (West) on Shiloh. Second Right onto Manassas Drive . 8108 Manassas Drive is the second house on the left.

Austin Market Data

Crestview
Number of homes for sale                       13        
Median List Price                                   $264,900          
Where in Austin?                                   Central

Rob Roy on theLake
Number of homes for sale                       6         
Median List Price                                   $2,924,500       
Where in Austin?                                   West

Tarrytown
Number of homes for sale                       7         
Median List Price                                   $789,000
Where in Austin?                                   Central

Legend Oaks
Number of homes for sale                       9
Median List Price                                   $259,900
Where in Austin?                                   Southwest

Shady Hollow
Number of homes for sale                       9
Median List Price                                   $304,990
Where in Austin?                                   Southwest

Senna Hills
Number of homes for sale                       4         
Median List Price                                   $532,188          
Where in Austin?                                   West

Great Hills
Number of homes for sale                       11
Median List Price                                   $525,000
Where in Austin?                                   Northwest

Highland Park
Number of homes for sale                       11
Median List Price                                   $589,000
Where in Austin?                                   Central

Jester Estates
Number of homes for sale                       7
Median List Price                                   $457,000
Where in Austin?                                   Northwest

Mueller
Number of homes for sale                       6
Median List Price                                   $746,716
Where in Austin?                                    East

Crossing at Onion Creek
Number of homes for sale                       11
Median List Price                                   $160,000
Where in Austin?                                    Southeast

Legend Oaks home in Southwest Austin features a wonderful bright and open floor-plan. Backs to Greenbelt.  Located at 7117 Ridge Oak Road, this single story home has a Gourmet kitchen with center island opens to formal dining and living room with tile floors, built in entertainment hutch, fireplace and crown molding.  The home is 1,841 square feet per the tax record and has 3 bedrooms with 2 full baths.  7117 Ridge Oak Road has a 2-car garage and 3-sides of masonry exterior finish.

7117 Ridge Oak Road is listed at $239,000

Directions:  From Mopac South:  turn right on William Cannon and turn left on Ridge Oak  or from 290, turn left on William Cannon and right on Ridge Oak

Open House 7117 Ridge Oak Road

Visit me Sunday, January 15th from 1 – 4pm

View pictures of 7117 Ridge Oak Road and other Legend Oaks’ homes here.

How a house is classified is determined by whether the land the residence sits on is fee-simple or undivided. If the parcel is undivided, then the structure is in a condominium regime which gives owners partial interest in the land. When a residence is fee-simple the owner has owns absolute title to the land and structure. In a condominium regime, you own the space the unit occupies and only own a partial interest in the common land surrounding the property.

Austin Condominium regimes can come in garden home, townhouses, single family, duplexes and apartment designs. Many have backyards, which can make it impossible to tell by looking, how the property is classified. Fee simple properties are available in the same styles, with the exception of towers. Some people don’t want to live in a condominium regime because they feel too restricted in how they can utilize their backyards. Understand fee-simple home owners still need to abide by city, deed and zoning restrictions. Fee-simple home owners can also be restricted through their home owners associations. Condominium regimes will often let homeowners improve property with patios and other outdoor improvements as long as they get permission first and comply with certain aesthetic guidelines. People are not always as limited as they think they will be.

I searched Austin MLS listings and selected some active properties so show examples of home styles that are classified as condominiums. Click the link here to see the condos

Click the link below or the picture, which will take you to a pdf. document with national real estate and local Austin housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Austin Housing Trends 12_11

The report includes third quarter results comparing the Austin real estate market to the rest of the United States. Mortgage data, employment findings, building permit numbers and pricing trends are posted.

Austin Housing Inventory

There are 17,517 listings currently active in the greater Austin MLS listings. This is LOWER than it was previously

The average price of a Single Family Residential listing is $367,527

The more detailed the criteria I use to find a home, the lower the number of search results.  However, I do have to use some criteria when looking like a zip code or MLS area.  The Austin MLS system will only allow me to pull 100 properties for any given property search.  It is rare though that I do not have enough criteria to narrow the search to less than 100.  After all, everyone typically has some criteria whether it’s a neighborhood, school district and of course – price.

 For those who really want to narrow the field down further, I can get very specific in terms of how I search for a property.  Understand, I may be lucky to find one property if the criteria are too narrow, but the flexibility in how I search for properties is available for those looking for something really specific.

Search for a Home in the Greater Austin area

Here is a list of some unique criteria I can use when searching for a property:

• Elementary School
• Master bedroom located on the first floor
• Number of stairs to enter a house
• Fireplace
• Fractional ownership (time share)
• Year built
• Pool
• Duplex, triplex or fourplex
• Building materials (i.e. all sides masonry)
• Media Room
• Modified for wheel chair
• Area amenities (i.e. club house, jogging path, lake privileges
• Flooring
• Type of utilities
• City view
• No backyard grass

There are too many criteria to list.  The intent is give you some idea of how detailed I can get.  One thing to note is that not all agents add as much detail as they can to a listing.  If an agent does not add that a property has a view of downtown, for example, the system is not going to pull it if your criteria include only city view properties.  There are fields that, as Realtors, we have to fill when entering a listing, while others are voluntary.

Fewer buyers mean fewer offers to sellers. I’ve talked before about wants and needs. Some owners need to sell now, they don’t just want to sell. Many people make job changes this time of year which nowadays, may mean moving to a different state. Sellers are often more flexible this time of year with price because they don’t have the buyer traffic they would have other times of the year – there is simply less demand. Investors know this, which is why I work with more investors this time of year than any other.

Interest rates are also very low right now, which gives you more buying power. You can qualify to spend more on a house when interest rates are low, than you can when they start to go up. Why? Lenders look at debt to income ratio when deciding to approve a buyer for a loan. Debt includes existing data like student loans and car payments, but the principle and interest on your proposed home purchase will also be a factor. The more you spend on interest the lower your principle payment on the house will need to be to meet the criteria of debt to income.

Real Estate Traffic

Ironically, another advantage this time of year for buyers is time. People often take off a few days between Christmas and New Years. When shopping for presents has ended, people often find they have extra time to look for a house without the stress of spending the day at work. In fact the busiest day to search for a home on-line is December 26th, the day after Christmas.

Happy Holidays to You,

Doreen

The data below is specific to single family homes. If there is an area you want me to spotlight -please let me know.

Austin Market Spotlights

Legend Oaks (Southwest Austin)
Number of Active Houses on the Market: 10
Average Days on Market: 45
Median List Price: $ 266,025

Cherry Creek (South Austin)
Number of Active Houses on the Market: 16
Average Days on Market: 98
Median List Price: $ 184,970

Plum Creek (Kyle)
Number of Active Houses on the Market: 25
Average Days on Market: 89
Median List Price: $ 179,250

City of West Lake Hills
Number of Active Houses on the Market: 27
Average Days on Market: 122
Median List Price: $ 1,295,000

Barton Creek West (West Austin)
Number of Active Houses on the Market: 3
Average Days on Market: 60
Median List Price: $ 585,000

Cat Mountain (North Austin)
Number of Active Houses on the Market: 7
Average Days on Market: 85
Median List Price: $ 450,000

Bouldin (Central Austin)
Number of Active Houses on the Market: 6
Average Days on Market: 79
Median List Price: $ 447,000

Travis Heights (Central Austin)
Number of Active Houses on the Market: 17
Average Days on Market: 99
Median List Price: $  575,000

What all of these dream houses have in common is that they are scarce.  My challenge is often that buyers don’t always believe they are looking at a dream house. I never know when the ideal house is going to come up for someone.  Buyers and houses enter and exit the market constantly.  When a house is only 7 days old on the market and it’s a dream house, buyers often think they can wait. 

Remember a dream house is always going to show up in someone elses dream, so there is no telling when the next buyers are going to see it.  When buyers lose a dream house it can become very discouraging, but often need to go through the experience.  The next time my buyer won’t wait for another buyer to purchase their house.  All houses sell in their own given time.  It could be day 7 or day 150.  If a buyer sees their dream house on day 150 – it’s new to them!
I often find it a helpful exercise to show buyers the difference in inventory between their wants list versus their needs list.  A buyer may easily start with 35 homes that meet their needs criteria, but when I add a golf course view – we wind up with 5.
Remember our goals change in the future as life has a habit of changing.  Buying a new home is a dream in itself. Sticking to the present and what you need now will help keep that dream a reality.

Applicants that do not own a vehicle can use a utility bill showing the matching address, but also must sign an affidavit stating that they do not own a vehicle.

The new law does not affect those who have already received tax exemption status. The new homestead requirements also apply to applications for the over-65, disability, disabled veterans, homeowner’s surviving spouse and manufactured (mobile) home exemptions.

The homestead exemption form must be filed between Jan 1, 2011 and April 30, 2011.   To qualify you must have owned your home by January 1, reside there as of that date and not claim an exemption on any other property.

Rules and by-laws are defined and outlined for each home owners association and can include anything from buildings restrictions, pet limitations and quiet hours. H.O.A.s impose fee’s to manage common charges and services impacted by the community. Mandatory home owners associations are typically created at the time the subdivision is created whether it is a neighborhood of houses or a condominium community.

H.O.A.s are a legal and financial entity designed to fund and manage common services and areas. Gated entrances, pools, fitness centers and playgrounds are all examples of common areas. Common services can include water, cable, trash and even gas. What services are included typically depends on how the subdivision was initially designed. Home owners associations can be powerful; they will impose fines and can even place liens on a property if fees are not paid or rules are not complied with.

Home owners associations often manage community activities as well, which provides an environment to socialize with neighbors within the community.

Austin HOA Rules and Restrictions

Whether or not a home owners association will work for a buyer will depend on many factors. If you are looking to build and want the freedom to choose any material you want or size of home, a neighborhood with a home owners association may not work for you. Having horses or parking an RV or boat next to a house – may not be allowed. You may be limited to the kinds of fences you can have. Dog breeds that are typically labeled as ‘aggressive’ are often not allowed as well.

Some people like limitations and rules within a community. Members of an association often like the structure within the community and welcome the limitations. Some people like a common aesthetic theme limited building materials bring. They also like the sense of community and small town feeling common amenities often provide.

Home owners associations can include many amenities, rules and by-laws or very few. H.O.A.s vary greatly in terms of when fees are due. Some are monthly; others are quarterly or even paid annually. Frequency is often determined by the size and scope of the association.

Unless I have a buyer who truly doesn’t like the idea of a home owners association, I often suggest clients be open to the idea. You can often tell just by driving through a neighborhood if it is heavily restricted or looks fairly laid back. With so many of them in the greater Austin area, it is hard for prospective buyer to completely rule them out.

The data below is specific to single family houses, unless otherwise indicated.  If there is an area you want me to spotlight -please let me know.

Tarry Town  (Central)
Number of Active Houses on the Market:                      16

Average Days on Market:                                              81

Median List Price: $                                                  $606,500

Elliott Ranch (Buda)
Number of Active Houses on the Market:                     12

Average Days on Market:                                            99

Median List Price: $                                                 $432,400

Whispering Hollow  (Buda) Still Developing
Number of Active Houses on the Market:                     17

Average Days on Market:                                            59

Median List Price:                                                    $218,835                                              

Garlic Creek (Buda) Sill Developing
Number of Active Houses on the Market:                   16

Average Days on Market :                                         76

Median List Price:                                                   $199,106          

Austins Colony (East)
Number of Active Houses on the Market:                  18

Average Days on Market:                                          86

Median List Price:                                                   $109,950                                  

Pemberton Heights (Central)
Number of Active Houses on the Market:                    6

Average Days on Market:                                          71

Median List Price: $                                           $1,535,750

Towers of Town Lake (Downtown Condominium Community)

Number of Active Condos on the Market:                   9

Average Days on Market:                                         74

Median List Price:                                                    $289,500

According to the Austin City Limits Festival website, attendees and The Do Good Bus raised $20,826.90 for The Red Cross and The Texas Wildfire Relief Fund. In addition, C3 Presents matched Friday’s donations for a grand total of $35,088.10.

The ACL Music Festival moves to cooler weather next year during the weekend of October 12, 2012.

Austin Real Estate Close to Zilker

Looking to live close to Zilker Park?  Here is a link to houses and condos for sale close to Zilker Park.  I can also set up a customized search to send you homes specific to your needs.

A variety of builders have contributed to the community, including Crescent Estates, Redbud, Precise, Waldrop and Waterford Custom Homes.  Inventory homes are available for purchase or can be built to suit.  All of the homes are very unique from one another, offering different floorplans and aesthetic materials like stonework. 

Homes range from $800,000 to $2 million.  Here is a link to my new Marisol at the Oasis webpage, which shows some of the MLS listings available.

Austin, like all of Texas, is experiencing severe drought conditions. Record breaking heat and water conservation has caused some shifts in routine for all of us. For me, that means trying to get out early to look at houses whether I am with clients or previewing. I showed land in Smithville last Monday, which is just west of Bastrop. My clients and I started at 10:30, spending about a good 20 minutes at the first lot. As the day heated up, we started to select what lots we actually wanted to get out of the car for. We saw 14 lots in 2 hours.   Heat can be motivating!

 
Shifts in routine also include remembering to water plants after sunset and being mindful of our foundations. Dirt is like a sponge, when it dries out — it condenses. That dirt under your house is condensing too. Cement doesn’t bend, it cracks.  Having a drip system around your house is helpful. A hose with holes placed around your house can help water your plants and your foundation at the same time.

Steps to Lake Travis

I have several clients currently looking for waterfront property. Waterfront is scarce simply due to the limited real estate available that surrounds the lake. What can limit the search even further is the intended use one expects to gain by owning waterfront property.

Waterfront property does not always mean direct access to the lake. Even direct access can vary from walking across a lawn directly into the lake to descending a steep flight of stairs. Maybe you want to have a boat docked in the water or the potential to have one. All of these are points to consider including the biggest one — do you even need to access the lake? Sure, water access may be nice to have, but maybe you only really want the view.

For many, water activities are seasonal. A nearby public boat dock or neighborhood park may offer enough convenience for water access. Maintenance, on the other hand is not seasonal. If a home has direct lake access, someone has to maintain the bock dock and the stairwell used to access the lake. These are added expenses that can be costly.  Another data point to be mindful of is flood insurance. Flood insurance is often required, which is another expense you will need to budget for.

There is nothing like having the lake as your neighbor.  It can provide constant entertainment. Just consider what you want and what you need from it — before you start your search. The greater Austin area touches Lake Austin, Lake Travis and Lady Bird Lake.  Access to the Town Lake Hike & Bike Trail can be found from waterfront condos like Milago.  There is now a waterfront page on my website that captures some of the waterfront properties available.

I have selected some random subdivisions in Austin below and listed some current real estate market data.

Understand this data is specific to single family houses.  If there is an area you want me to spotlight -please let me know.

Tarry Town

Number of Active Homes on the Market: 13

Average Days on Market: 42

Median List Price: $ 725,000

Travis Heights

Number of Active Homes on the Market: 25

Average Days on Market: 77

Median List Price: $ 575,000

Lost Creek

Number of Active Homes on the Market: 22

Average Days on Market: 81

Median List Price: $ 608,000

Anderson Mill

Number of Active Houses on the Market: 59

Average Days on Market: 73

Median List Price: $ 172,500

Circle C Ranch

Number of Active Houses on the Market: 33

Average Days on Market: 80

Median List Price: $ 300,000

Mueller
Number of Active Houses on the Market: 9

Average Days on Market: 87

Median List Price: $ 550,000

My football buyer isn’t going to buy a house if there is no room for a big TV. Yes, football often trumps where the kids are going to eat. You laugh, but again, this is all about lifestyle. There are many things buyers will forgive like bad paint and carpet, if the house works for their lifestyle.

Sellers need to help too. I was recently invited to a home in South Austin because a fellow agent wanted my opinion on how much the current décor would influence a potential buyer. I entered from the front door, directly into the living room which was painted University of Texas burnt orange. There were 2 large flat panel TV’s on the wall with a gaming console in between them. This was the ultimate UT man cave that only a UT gamer could love. It is very hard for a buyer to mentally separate that lifestyle, with their own. When a seller leaves the house that personalized when they put it on the market — they  send the message to potential buyers that it is their home and they really don’t want to leave. I recommended at least one TV come down and the room to be painted a neutral color.

 

I work with investors often enough to understand no two are alike. The appeal of becoming an investor is often due to the added income one might expect from collecting rent. There are many things to consider though and plan for before becoming one, which are typically not considered until I start asking questions. Understanding what a client’s long term and short term goals are is always a good place to start. Is the goal immediate positive cash flow or long term appreciation? Knowing these answers helps me start to fine tune what type of property and location might be best suited to meet those needs. Does my client want a tenant already in place? Who is going to manage the property and how much can someone afford as a down payment are all questions that need to be discussed up front. Typically, an investor is not going to have a monthly positive cash flow without putting down at least 20%. The down payment in itself can make one shy away. Understand, positive monthly cash flow can be a little as $50 a month after paying the mortgage, taxes, HOA and maybe even a property management company. There is also down time to consider. Once a tenant moves out, you may have one or two months with no income on the residence as you seek and make the unit ready for a new tenant.

Now let’s discuss selling an investment property. When you have a tenant in place that is indeed what you have. Unless the tenant is on a month to month lease, where you can give 30 days notice to the tenant if the unit sells — the lease conveys. Tenants have rights; one being the lease doesn’t become void, just because the owner changes hands. The lease itself often becomes a catch 22 when marketing the property. A good tenant is worth their weight in gold! If they are clean, don’t cause problems, pay on time, etc. — it is clear they have made your house their home. In return, investors often don’t hike up the rent on these tenants because they want them to stay. An owner may not be making any profit on these tenants, but they also have no down time and damages. These tenants are diligent about telling owners about repairs needed as they go along, so there are no surprises at the end of the day. Think about it. If you need to replace carpet, paint and do other repairs all at once — you not only have significant immediate expenses, but you also can’t rent the unit out while the repairs are made, which means no additional income.

A good tenant though can also hurt you when selling. Not only have you limited your buyer pool, to investors only, but they may not be paying market value on their rent. This may work for the current owner, for reasons I stated above, but it may not work for a buyer. For investors, this is a numbers game and if the current rent is too far below what the monthly expenses will be — that property is going to be passed by simply because the numbers don’t work.

Buying an investment property is often a great move, especially if someone has an out of state student who will be attending a college. Out of state tuition is often much higher than in state tuition. Buying a condo for a student will allow them become an in state resident can mean much lower tuition after they have lived in the state a certain amount of time. The differential between the in state and out of state tuition can be significant, making a little off-campus condo a more affordable alternative down the road.

Every house needs a wow factor. As a listing agent, I try to highlight one when marketing a home to appeal to buyers. Buyers often have their own wow factor when touring a home as it can be a personal thing. A wow factor can be anything: an island kitchen, hand scraped floors, even a great price can turn a buyer’s head. I was in Driftwood two months ago and the neighboring house has an outdoor fireplace that was amazing. My clients and I just stood there and said “wow” in unison.

Austin area real estate is unique in that the hill country landscape adds some natural wow factors.  City, hillside and lake views all add an additional backdrop to many of the homes here. 

A wow factor puts the exclamation point on a home and really sells it. Do you know what’s really interesting though? Rarely does the wow factor translate over the internet. You might be in like over the internet, but you won’t be in love until you see it in person. Even when price is the wow factor, it is often hard to see value over the internet.

When Austin real estate buyers are looking in a general area, like Spicewood or Northwest Hills, I typically set up a map search.  Older neighborhoods are made up of many micro-subdivisions as the land was and is developed. 

The subdivision list below is random.  It will give you an overall idea of what to expect in terms of available inventory and price points.  If there is a particular subdivision or neighborhood you would like me to highlight in the future, please ask.

 Milwood

Number of homes for sale                       57        

Median List Price                                   $187,500          

Where is Austin?                                   North

Spicewood at Balcones Village

Number of homes for sale                       5         

Median List Price                                   $305,000          

Where is Austin?                                   Northwest

Cat Mountain Villas

Number of homes for sale                       10                    

Median List Price                                   $430,445

Where in Austin?                                   Northwest

Hyde Park

Number of homes for sale                       17

Median List Price                                   $410,000

Where in Austin?                                   Central

Edgemont

Number of homes for sale                       5

Median List Price                                   $648,000

Where in Austin?                                   Central

Travis Heights

Number of homes for sale                       17        

Median List Price                                   $610,000          

Where is Austin?                                   Central

Western Trails

Number of homes for sale                       6

Median List Price                                   $271,500

Where in Austin?                                   South

Lost Creek

Number of homes for sale                       8

Median List Price                                   $597,200

Where in Austin?                                   West

Village at Western Oaks

Number of homes for sale                       20

Median List Price                                   $259,000

Where in Austin?                                   Southwest

Onion Creek

Number of homes for sale                       33

Median List Price                                   $323,900

Where in Austin                                    Southeast

Individuals must have served outside of the United States on qualified official extended duty for at least 90 days between December 31, 2008 and May 1, 2010.  If married, only one spouse needed to serve during those dates to qualify.

There is an $8,000 tax credit for first time home buyers and a $6,500 tax credit for repeat home buyers.

“Qualified service member” is defined as a member of the uniformed services of the U.S military, a member of the Foreign Service of the United States, or an employee of the intelligence community.

“Official extended duty” is defined as any period of extended duty outside of the United States for duration of at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.

Contact your local lender for more details.

When looking at houses keep fences in mind, so you can research what you would like to do in the future, before you purchase.

Over 12 architects contribute to the modern floorplans, colors and details of this community. Keven Stewart was the architect who designed 5517 Agatha Circle.  The first floor includes 2 bedrooms, and one full bath with polished concrete floors.  Make you way up the bamboo wood staircase to find a living area, eat-in kitchen and utility room with plenty of extra storage space.  The floor also feature a half bath and outdoor deck.  The third level of the house includes a master bedroom, master bath and flex room.  There is also a large deck off of the master bedroom.

5517 Agatha Circle is ideal for someone really looking to make a statement.  It is finished with green details like silestone counters, a tankless water heater, low V.O.C paint and Energy Star rated appliances.

Listing # 6640723

The Agave Community is nestled within a hillside in east Austin.  It is about 3 minutes to 183, 6.5 miles from the University of Texas and less than 10 miles to downtown Austin.

The better educated a buyer is before the option period begins, the smoother the time goes by.  Understanding the loan program you are qualifying for, choosing a home inspector, and having liquid funds available for option and earnest money fees are just a few of the things that add stress and take time. 

Any amendments made to the contract need to be agreed upon by midnight of the last day of the option period.  If the Seller has not signed the amendment by midnight on the last day of the option period, the buyer has 2 choices.  The buyer either accepts the property based on the initial terms and conditions, or must terminate contract in order to get their earnest money.

It’s no fun waiting until the last hours of an option period to wait for either party to decide what to do.  The best advice I can give is to be prepared before you find a home. Don’t waste days during your option period to prepare.  Planning ahead lets you take off like a G6 and allows time to educate yourself on the home, without feeling rushed.

Overall, the Austin market is going strong into 2011 strong. Neighborhoods averaging 3 months or less are considered to be seller’s markets, because there is a demand to live in them. Neighborhoods averaging 4 to 6 months are considered neutral markets. Six months or more time on the market is considered to be buyer’s markets. The exceptions to this rule: luxury properties over $800,000, simply due to less buyers and new homes under construction where the houses are actively marketed before or during building.

Austin Homes for Sale

Hyde Park (Central Austin)
Number of Active Homes on the Market: 10
Average Days on Market: 124
Median Home Price: $ 323,500

Jester Estates (Northwest Austin)
Number of Active Homes on the Market: 8
Average Days on Market: 127
Median Home Price: $ 423,700

Rob Roy (West Austin)
Number of Active Homes on the Market: 11
Average Days on Market: 202
Median Home Price: $ 1,250,000

Onion Creek (South Austin)
Number of Active Homes on the Market: 30
Average Days on Market: 142
Median Home Price: $ 310,950

Plum Creek (Kyle)
Number of Active Homes on the Market: 24
Average Days on Market: 71
Median Home Price: $ 143,825

I will be holding my listing on 5517 Agatha Circle on Sunday, December 12th from 1-4pm. This sophisticated home is located in Agave, a modern home community. Agave is a community of trendy, modern homes inspired by host of urban architects. Agave has been featured on the ‘Today Show’ and was voted Best Cubist Neighborhood in the Austin Chronicle.

3-story floor plan

 Main Floor: entry, 2 bedroom, 1 full bath, storage nook
 Second Floor: eat-in kitchen, living area, half bath, utility room with floor to ceiling storage, outdoor deck
 Third Floor: Master bedroom, master bath, flex room (could be nursery, office or yoga room), outdoor deck
 Ideal floor plan for guests, teens or roommates

Green Features in 5517 Agatha Circle

 Tankless water heater
 Low V.O.C interior paint
 Bamboo flooring
 Low-e glass in double-pane windows
 Polished concrete flooring on foundation level
 Composite exterior decking and fencing
 Spray foam icynene open cell insulation at roof
 BIBS (blown in blanket system) at walls
 Low-flow toilets
 Water-saving shower heads and faucets
 14 SEER HVAC system
 Programmable digital thermostats
 2-stage poly seal air infiltration system
 Energy Star-rated appliances
 Silestone counters in kitchen and bathrooms

Central East Austin Location

Less than 10 miles from Downtown and the University of Texas
Less than a 5 minute drive to 183

View:
UT Tower and Downtown from front lawn and 3rd floor flex room.

This will be my last open house of 2010.
When: Sunday, December 12th, 1 – 4 pm
Where: 5517 Agatha Circle
Directions: East MLK Blvd, to Sendero Hills Parkway, Right on Agatha Circle

Pantone has announced its color for 2011.  It’s Honeysuckle and you will see it everywhere. Here in Austin, I have seen great color schemes in homes, and of course, I have seen some poor choices.   Home color choices are not like clothing and makeup. With personal color choices you are working with individual skin tone.   Different colors and hues will complement your natural beauty.  Different colors enhance different people.  Personal color choices are also very temporary.

House colors are different, because they tend to be more universal in appeal.   If you are selling your home, the color scheme needs to appeal to the masses.   House colors affect our inner senses.   When done right, they inspire and relax.   When done wrong, they can enhance stress levels or depress you.   Choosing a color can be a long term commitment and investment, so neutral colors span the test of time.

Color your Home Happy

So, what are the rules for coloring your home?   The #1 rule is the simplest to follow – pick your palette from nature.   Green is a very soothing color to the eye.  It is relaxing.   That’s why actors are placed in ‘green rooms’, before they take the stage on a talk show.   A soft yellow is another great color to incorporate into a home. It is bright and cheerful.  Follow an Autumnal color palette, which appeals to all.  Think of browns and greens with touches of gold, yellow and red.

Buyers want a Blank Canvas

I have said this before, and you will hear me say it again, looking at homes is the fun part, so it’s the item on the list buyers want to do first.  Unfortunately, it should be last on your list.  The first thing you need to do is contact a lender.  Nowadays, it’s not just about what you get paid, but how you get paid. If you get a commission based salary, qualifying for a loan is different.  Your assets, debt and credit score are also significant factors in determining how much of a house you can afford.

I understand, talking to a lender is work and it takes time.  Look at it as a way of self assessing whether you really want to buy at house.  If it all seems like more trouble than its worth – you are not ready. If it seems logical to get a good idea of what you can afford, then you are ready to buy a house.  Looking at homes takes time. Buying a home takes even more.  Spending time looking at things you can afford will save you time, not to mention, unnecessary disappointment in the end.

Sellers often realize that what hasn’t been repaired or replaced, will ultimately cost them in the end.  Money makes things go away. Owners think they are simply saving money by ignoring foundation problems, roof repair or whatever else may be deficient.  In realty though, they are simply differing the payment to the sale.  The home is worth less to a buyer and will take longer to sell when systems are in need of repair or replacement.

Last week I went on a tour of homes in zip code 78704.  The tour covered Travis Heights to Barton Hills.  I saw some pretty interesting properties including a 1904 farmhouse which was moved here from Trall, Texas.  If you like older homes, it was absolutely amazing from the beaded trim on the doors, to the soaring ceilings.  It is truly something special.  Here is the link, along with some of the other properties I viewed.

On Sunday, June 27th, I will be holding one of the homes open on the tour, from 1 – 4pm.  500 E Mary street is located in the Travis Heights area of Austin, and has 3 bedrooms, 2 baths and is 1,394 square feet (tax record.)  The house sits on a large corner lot with live oaks trees and carport. Click the tour link above for more details.

Last weekend, I went to Brenham, Texas for the first time to attend the wedding of a former client and now friend.   She will be sharing her first home with her wonderful new husband.  I have a few clients having babies right now, and it is an honor to watch their families grow and homes be filled with joy.

No, I don’t sell houses in Brenham.  The furthest I’ll go east is Elgin, but I did find myself in Jonestown, Buckingham Estates, Sunset Valley, and Rob Roy last week.  Where’s that plane?  Maybe I’ll just settle for helicopter, then I could do roof inspections at the same time.

I also, helped someone move last week.  Let’s talk about moving.  I promise you have 3 times more than you think.  When you pack, it’s like adding water to a sponge.  It grows. Take vases for example.  In your cabinet, they take up 4 cubic feet.    When you wrap them in newspaper and pack them, they now take up 8 cubic feet.  They only things you own, that really don’t expand when packing are linens.

So here’s my advice.  Purge first.  If you haven’t finished that project in 3 years, you probably won’t.  If you haven’t worn it in a year, you probably won’t, unless it’s a special occasion outfit.  Oh – and if you still haven’t opened it, just bring it to Good Will.  Think about it, just because you are moving to a new house – doesn’t mean you are going to wear it, use it or even open it.

Also, it will take you 3 times longer to move, and 12 more car loads that you think.  I always recommend you hire a mover.  They really do take the stress off at the end of the day when you are out of steam from packing.  You’ve spent thousands of dollars on your new home, spend the extra $500 on movers. Get grandma’s desk delivered in tact, instead of loading it in the back of Uncle Harry’s pick-up truck praying it will get there in one piece, and hating on him when it doesn’t.

The second rattle snake not pictured was 4 feet long, and one of them was pregnant with about 20 babies.  So, needless to say the Smith’s have a snake wrangler on retainer, should any more unwanted guests arrive.

Yes, they live on a greenbelt, but understand this is Texas and snakes are everywhere.  I saw two myself last weekend at Town Lake, so just be aware. Tis the season.

What areas are hot right now?  Honestly, I haven’t come across a section in Austin that I would truly call a Buyer’s market right now.  Inventory seems to be moving no matter what price point you are looking in, provided you are within Austin.  There are other areas surrounding Austin that are feeling the affects of neighborhood foreclosures and short sales, which drive the prices down simply because there is an over saturation of Seller’s wanting to sell, versus Buyers looking to buy.

When I find areas with Average Days on the Market being over 6 months that is where I classify a neighborhood to be a Buyer’s market.  Areas that stay on the market for 4 – 6 months are considered ‘neutral’, and less that 4 months are considered a Seller’s Market.

The only exception to this rule is when I am referring to homes priced over $600,000.  There are simply less Buyers able to afford a home in that price point, so the inventory tends to sit a little longer.

Whether I am working with a Buyer or Seller to determine market price, I certainly take into account how hot a neighborhood is.  I take the last 3 months of inventory and add the sold and pending listings.  I then add the active listings up and determine the average amount of months it is going to take to ‘sell’ that inventory.  The lower the number – the hotter the neighborhood.  How hot is Cat Mountain right now?  It has about 6 months of inventory.  While Parkwood, in South Austin, has enough inventory to last 2 months.

Understand, the overall condition of a home certainly plays an important role in how fast a house will sell.  Looking at inventory flow is just an additional data point I like to refer to.

I had a client ask me last week what I think about sport courts.  While pools can limit your audience, when it comes to attracting buyers, sport courts don’t seem to have the same effect.  The reason is that they have a broader range of use, than a pool.  For starters, they are not seasonal; after all, you can shoot hoops or play tennis any time of year.

In addition to year round use, outdoor courts are rare enough to be considered unique, which is attractive to buyers who are looking for something extra. More often then not, selective buyers don’t even know what it is they are looking for.  We then look at a home with a sport court, and they just connect to it.

Unlike pools, sport courts generally don’t require as much maintenance as pools – after all, it can be as simple as a painted slab.  Sure you may have to patch, paint and repair some fencing from time to time, but over all they generally require less effort.

Sport courts vary in size and shape, tennis and basketball are most well known.   I often see courts that offer a more universal appeal with a basketball net and backboard.  Now, a sport court is not going to have any appeal to gardeners.  It may also impede on building an addition where the amount of impervious coverage is limited.  For properties within the McMansion Ordinance the ratio of non-permeable coverage can’t exceed 40% of the lot size.  So, while a sport court may not appeal to everyone, it certainly can offer unique twist to a typical home making standout from the crowd.

 Last week, I was in Round Rock and then, moved on to Downtown, Austin to view some condominiums.  If you haven’t been to the historical district of Round Rock, it is quite charming. Downtown, I went to the Brown Building and the Nokonah.  Located on W 9th Street, the Nokonah is in the heart of Duncan Park and within walking distance to Whole Foods, restaurants and shops.  

Built in 1940, the Brown Building, on Colorado Street holds a historical designation, which gives owners an additional tax exemption.  The building was originally utilized as office space, some of which was occupied  by politicians,  including former President Lyndon B. Johnson. In 1998, The Brown Building was converted to loft style condominiums.  The Brown Bar and Gumbos restaurant are on the first floor, for your dining pleasure. Here’s a peak

Reminder:   we must be under contract by April 30th in order to qualify for the tax credit.

I support local Austin; after all I think it’s only neighborly.

Contact me for real estate needs by:

Phone:  201-286-2504

Email:  doreen@supportlocalaustin.com

It was an amazing week to be in Austin last week. We started with the Zilker Park Kite Festival, then moved on to SXSW, and it was spring break.  All in all people were out and about exploring this wonderful city we live in.  Where was I?  A little bit of everywhere, buyers are hustling to meet the tax credit deadline, and I am moving them along.  My goal is to have everyone who cares about the tax credit to be under contract within the next week.  

Understand, we need our option period to decide whether to go forward with the house, and then there is of course, the financing hurdle.  I am advising my clients to keep the ball in someone else’s court while we shop.  If the Lender wants pay stubs, tax records, employer contact information…whatever it is, let’s get them the information they need, so we can get the file into underwriting as soon as possible.  

Lender qualifications change often, so it is important to keep in contact with them.  If for some reason, we fall out of contract and then need to find another house to purchase, we still have time to meet the deadline.

FHA loans are assigned case numbers.  So, anything under contract prior to April 5th, will not be affected, as long as the loan is approved.

If you have detailed questions, it is best to speak with a lender. Since, we are all more frugal than a year ago, I thought I would give you a heads up.

The second thing I have changed, is posting my cell phone as my office phone.  My clients are ultimately communicating with me through my cell phone anyway, and I them.  So, I decided to cut out the middle man and go directly to my cell phone.  As you already know, I spend quite a bit of time in my car, so these little things will increase my level of customer service.

Oh, and one more thing….I am now at Sky Realty.   As I enjoy teaching others, I enjoy learning new things too.  Look forward to an improved website and home search features in the coming weeks.

If we are not moving forward, we are moving backward.  We are indeed, always moving.

Thank you all for your continued support and well wishes. 

For Buyers, the more commonly asked question is how much money they need to buy a house.  Unfortunately, there are too many variables that make question easy to answer. A credit score, downpayment and loan program are going to be the determining factors for this.  Those factors, are not only going to determine what your costs, but they are also going to decide your buying power as well.  

A 1% variation in an interest rate can mean a 10% change in your buying power.  The debt to income ratio will also determine your buying power.  Having a great credit score means that you show a history of paying back loans, and therefore you are less of a risk to a bank of defaulting on a loan.  If you are going to buy a house or planning on moving up, your income has to reflect that you can afford to handle more debt.  If a lender thinks you are just making it, with your current debt – you are not going to get approved for more.

What I generally tell Buyers, is to plan on at least 2 percent of the sales price, not including your down payment.  Lenders escrow 3-8 months for taxes up front, which are typically the biggest portion of  closing costs. You will also need 1% of the sales price in earnest money at the time we go under contract.  In addition, you will need an inspection and title fees.  So, the short answer is 2% of the sales price, but that does not include lender fees, which, depending on your loan program, could mean another 2%.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

•You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
•You do not use the home as your principal residence.
•You sell your home before the end of the year.
•You are a nonresident alien.
•You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
•Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
•You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit.

The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

Remember, moving can be a stressful time for your pets, as well. Strangers in their ‘dens’ can be quite unsettling. The best thing to do find a safe place for your furry friends to go whether it is family, doggy day care or even a crate in the garage. The goal is to keep them calm and secure, because if you have one, you know…they can be spiteful little creatures.

Even when I custom built a home, it still didn’t turn out to be perfect, for me. I always look at homes through my clients’ eyes. Even at $3.5 million, I walked around that home thinking, that’s not Shellie’s kitchen and that’s not the Smith’s family pool. Even at $3.5 million I couldn’t say that house was a good fit for any my clients. Now, don’t get me wrong. It was a great house, with an amazing view of the lake. Homes need to be functional in different ways, for different people. It just wasn’t going to work with my clients’ lifestyles.

Having more money to spend on a house isn’t going to necessarily buy you a home that’s a perfect fit. You can find a house at any price point that is a perfect fit for you. Money doesn’t buy ‘perfect’, because perfection really doesn’t have a price.

I support local Austin; after all I think it’s only neighborly.

Even with our combined effort, the house had multiple offers on it, after only being on the market for 6 days, and we lost it. We tried our best, and will be just as passionate and steadfast for the next one, because your dream house often appears in the dreams of others as well.

Do you need my services? I support local Austin, after all I think its only neighborly.

One year young – is not new. You will not be able to price your home equal to a new build, if all other things, like lot location, are equal. This is why certain areas have excess inventory right now. The Resale market is slower in price points in areas where new construction going on. Why buy used, when you can buy new? If your home is listed for resale in these areas, you need to be competitively priced. Its like picking a car off the lot, instead of ordering one.

I always say money has a way of making things disappear. So, maybe you can’t ‘pick your colors’ as with new construction, but if a buyer can save some money on your resale…you may be able to make that existing paint color vanish.

I support local Austin, after all I think its only neighborly.

Active Days on Market (ADOM) is a number attached to a property’s Listing number. Cumulative Days on Market (CDOM) is attached to a property’s tax ID. What’s the difference and why do I look? If Dr. Jones lists his home for 6 months and it doesn’t sell. He might let his listing agreement run out, wait a month and re-list the house to put it back on the market. Whether he uses the same agent or not, his ADOM count will begin with 0, and go up from there. His CDOM number will start at about 180 (6 months @ 30 days in a month..6 x 30 = 180). So, I will see something that looks like this:

ADOM = 0

CDOM = 180

Dr. Jones’ house is going to appear as new listing on everyone’s home search – even mine. In reality though, Dr. Jones has been trying to sell his home for 180 days. Maybe Dr. Jones would like an offer? (hint, hint). The only way the CDOM number will be the same as the ADOM number, is when a house has not been active or pending for at least 90 days.

Like I said, every market is good for someone. In certain price points, in certain areas of Austin, you won’t find a home lasting more than 60 days on the market. In other areas, its different. Watching the CDOM numbers, helps me find hidden opportunities.

It’s always interesting for me to tour a development after I have seen models and artist renditions of what’s to come. I have to say 360 delivers and then some. From the pool, to the club room, to the theater room (just bring your DVD) – the building’s amenities and units are impressive.

Prices vary with floor levels and finish outs. If you know anyone who is interested, please have them call me.

Common is defined as condos or houses where ownership of some or all of the land is shared between the owners.

Fee Simple is defined as properties that the land is owned individually such as a single family house, or townhomes on separate lots, or 1/2 duplexes where the land has been sub-divided.

Again, because these ‘condos’ are now labeled ‘houses’, you may see some come up in your house search, and will typically mean that they have some sort of common area.

I support local Austin; after all I think it’s only neighborly.

You get a 10-day no-fee option period with a foreclosure to do inspections. I recommend a few, which might include a septic and well inspection. Yes, you could easily spend $1,000 or more on inspections. I had a client ask me last week: “Do I get that back if I don’t want the house?” I replied “No, but wouldn’t you rather waste $1,000, if it winds up saving you $10,000 or more later?” Depending on the price…you might be fine with that. My point is if you do your homework upfront, you know what you are getting into.

I support local Austin; after all I think it’s only neighborly.

Sometimes, time matters, in terms a response to an offer.  Nobody likes waiting. Seller’s don’t like to, and neither do Buyer’s, there is always one side that is full of hope and anticipation, and there in that feeling lies the joy in what I do.

I support local Austin; after all I think it’s only neighborly.

The Resale market slowed down in price points over $500,000, especially in areas where new construction going on. Why buy used, when you can buy new? If your home is listed for resale in these areas, you need to be competitively priced. Its like picking a car off the lot, instead of ordering one. I always say money has a way of making things disappear. So, maybe you can’t ‘pick your colors’ as with new construction, but if a buyer can save some money on your resale…you may be able to make that existing paint color vanish.

I pointed these fun facts out last week on a listing appointment, because sometimes owners forget what they have when they are selling a home.  Remembering why they bought the house from the inside is usually easy. The area amenities are often forgotten though, and are just as important.  Sometimes, it’s just like anything else – you’ve been driving by that recreation center for so long – that you just kind of forget it’s there.  The same holds true with the pool; no one in the family uses it anymore; so again, it’s just not important.

I even went on a listing appointment last year at a house on Lake Austin and I mean with a 180 degree view of the channel.  Do you know the owner said to me, “you know Doreen; I don’t even see it anymore”.

Amenities, like everything else, are often valued greater at certain times in your life.  You tend to value these things as a Buyer, more than you do when you are a Seller, because you are buying into the lifestyle that the amenities are going to afford you.  When you are the Seller, those same things just aren’t as important anymore, because other things are more important. This is where time travel comes in.  At the closing table the buyer and the seller are typically very similar, but just at different points in time.

I support local Austin; after all I think it’s only neighborly.

#1 – When you are going to an open house, act as you would if you were going to a store – lock your car door, even if you plan to be in the house for a minute

#2 – If you are looking at a house do not go into a backyard without your agent present.  Without you agent – this is called trespassing.  Additional concerns are letting an animal out that may be confined to a backyard, or getting bit by one.

#3 – If you are at a house and you find the front door to be unlocked.  Do not enter – wait for your agent.  Again, this is trespassing, not to mention, there may be safety concerns your agent is away of, which you may not be.

#4- If you are looking at homes that may need remodeling, where the condition is questionable – leave your high heels home.  Many times, there is nothing more than sub-flooring in these houses, and getting your $400 pumps caught in the floorboards is no fun.We all like to think the world is a safe place.  The truth is it can be a safer place if we all just take some precautions.