A Good Buyer’s Agent Will Not Sell You

Buying a home is the biggest financial investment most people will make. As buyer’s agents it is our job to help you make an informed decision about the home you’re buying, not try to convince you the brand new stainless steel oven will really be helpful when you have guests over during the Holidays or (and this one is my favorite) “here is the kitchen.” We know you can see the pretty things and you definitely know what a kitchen looks like, so we don’t waste your time pointing those things out. Instead, we focus on things that will hurt your resale value, things about the property’s condition that pose red flags and things that will cost you money.

A Good Buyer’s Agents Will Help You Make an Educated Decision

There’s a lot that goes into deciding which home is right for you. We’ll help you analyze your family’s living situation and help you determine which home is right for you. A good buyer’s agent will present all the pros and cons of the neighborhood, the market and the specific home. Armed with all the facts, you can decide what home is the best for you and your family.

A Good Buyer’s Agent Will Point Out Potential Resale Problems

The best time to think about selling a home is before you buy it. A good buyer’s agent will point out potential resale problems of a home before you are even thinking about buying it. When you work with our team, we go through every single house and show you what’s going to bother other buyers and what about the property is going to make it difficult to resell. Before you put your money into a home, we want you to understand what obstacles you might face when the time comes to sell it. This doesn’t mean don’t buy a home with any potential resale problems, this just means understand them and make sure you don’t overpay.

Good Buyer’s Agents are Expert Negotiators

A good buyer’s agent is a great negotiator. They know how to craft and present offers that get accepted in any type of market. A great negotiator can mean the difference in thousands of dollars to your bottom line or losing the house of your dreams.

A Good Buyer’s Agent Can Evaluate the Local Market

All real estate is local. The real estate market in Austin as a whole is not the same as the real estate market in a specific neighborhood. A good buyer’s agent will show you the numbers, explain what they mean and help you understand where the market is going in the short term. Buyer’s agents are out everyday and have a good sense for how much activity the market is seeing. This goes way beyond reviewing recent sales. Good buyer’s agents help you use their market knowledge to craft offers and save you money. If the market is trending down, but recent sales support a higher price, a good buyer’s agent will recommend offering a lower price. In competitive, multiple offer markets, a good buyer’s agent will help you make your offer the most appealing and that doesn’t just mean throwing money at a seller.

Recommend Professionals Who Can Evaluate the Property’s Condition

A good buyer’s agent will have a long list of professional home inspectors, roofers, plumbers, chimney inspectors, septic inspectors, pool inspectors and any other type of inspector that will help a buyer evaluate what they are buying. We call our inspector the “deal killer” because he can write a 20+ page report on a house that has nothing seriously wrong with it. We got on our hands and knees the other day for him to show us a hairline crack in a foundation. One small, cosmetic crack that could not be seen standing up. At the end of the home inspection, the buyer knew exactly what he was buying, knew the homeowner maintenance tasks he needed to do when he moved in and walked away confident the house was in good shape.

Good Buyer’s Agents Will Protect Your Interests Above All Others

When you hire a buyer’s agent to represent you, their job is to protect your interests above all others in the transaction, including their own. You’ll have their expertise at your disposal and someone who is working to get you the best deal, help you know what you’re buying and protecting you through every step of the process.

Better Service from Your Buyer’s Agent

Committing to working with one buyer’s agent (or team of agents in our case) will ensure you get the best service. When we decide to work with a buyer and they commit their loyalty to us, we commit 100% of our resources and expertise to find them a home and negotiate the best possible deal. A good buyer’s agent will only work with buyer’s who are committed to them.

The Listing Agent’s Job is to Get the Best Price for the Seller

Remember when calling listing agents, their job is to get the highest price for their seller. They cannot point out potential resale problems or do anything to undermine the seller’s bargaining position. Their job is to sell you that specific house, like a used car salesman, not help you understand what you’re buying and help you make the best possible investment.

How Do You Find a Valuable Buyer’s Agent?

Of course, all of this is dependent on you finding a good buyer’s agent, one that will add value, not just put you in their car, drive you around and say “do you want to buy this one? what about this one? or this one? this one?”. Our recommendation would be to interview buyer’s agents and find one that you trust. Here are 10 Questions to Ask When Interviewing Buyers Agents. Also, ask them what credentials they have. Are they an Accredited Buyer Representative (ABR) or a Certified Residential Specialist (CRS)? Credentials show buyer’s agents are doing everything they can to educate themselves and better serve their clients.

Looking for a Good Buyer’s Agent in Austin?

We have a combined 55+ years experience representing buyers. Raymond was the first Broker in the San Francisco area to represent buyers at a time where every agent represented the seller. Both he and I have our CRS and ABR designations and continue to improve our systems and procedures so Austin home buyers have the best home buying experience possible. If you couldn’t tell, buyer representation is something we feel very strongly about. Check out our Buyer Representation Program to learn more about who we are and how we work. Then, call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com to schedule a no obligation consultation.

#1 Money

Foreclosures bought at auction are bought with cash. No, not suitcases full of cash, but liquid and available funds you can get in an hour or two via a cashier’s check at your local bank. You don’t get a loan to purchase a foreclosure at auction, so if you’re considering purchasing one, you’ll need to have enough liquid assets to cover the cost of the purchase.

#2 Time

As you probably read in our post, Buying a Foreclosure at Auction? Better Do these 8 Things First, you need a tremendous amount of time to research each property before you even consider purchasing it. This could mean you spend several hours on one property and determine it is not the right investment for you and that might happen several times before you find one that you want to bid on. Buying a foreclosure at auction is nothing something you can do haphazardly if you want to minimize your risk and maximize your profit. If you don’t have ample time to invest in the research phase, buying a foreclosure at auction is not for you.

#3 Knowledge

Successful foreclosure investors are knowledgeable about the real estate market, can evaluate a property’s condition and know what it costs to make the necessary repairs. They know the tenant laws, environmental laws and they know their risks when it comes to purchasing this type of property. These are the types of issues that could end up costing you more than you’re willing to spend. Knowing as much as you can before you take on this type of purchase will help minimize your risk and maximize your profit.

#4 A Good Support Team

Successful foreclosure investors have the following people on their team:

• Buyer’s Agent
• Real Estate Attorney
• Insurance Broker
• General Contractor

A buyer’s agent can help the investor evaluate the market in each area and help them determine what market value is so they don’t overpay. A real estate attorney is imperative for helping the investor understand their rights for the specific property they are considering. An insurance broker will assist the investor with making sure the property is insurable to safeguard the asset they just traded for cash. A general contractor can facilitate the repairs necessary to make the property habitable.

Who is Successful at Buying at a Foreclosure Sale?

People who have the appetite for risk, the aforementioned attributes and see the benefits a team approach can provide just might be quite successful in this niche real estate market. Often they are general contractors or people who can get repair work done at cost.

Think You Might Have What it Takes to Buy a Foreclosure at Auction?

We’d be happy to discuss the process with you and act as your buyer’s agent. We know the area well and can help you evaluate market value of a property, so you don’t overpay. We also can recommend several other professionals that you need on your team to be most successful.

Not Sure if Buying a Foreclosure at Auction is Right for You?

If these characteristics are not you, consider other less risky, less uncertain and less challenging ways to buy real estate. Buying bank owned homes (foreclosures after they have been foreclosed and are now owned by the bank) are another great way of purchasing foreclosures, often at rock bottom prices. Bank owned homes can be purchased with a loan, so you don’t need all cash. You can also investigate the property in detail before you are committed to buying it, so you don’t risk your investment as much as the investor who purchases a foreclosure at auction. Check out our How to Buy Bank Owned Homes Guide for more about buying bank owned homes. Then, call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com to schedule a no obligation conversation. We can help you determine which strategy will save you the most money and accomplish your main goal – getting into a home.

#1: Do Your Due Diligence – Research, Research, Research

The goal of every foreclosure investor is to acquire instant equity (e.g. fair market value minus cost of all the liens) at the least cost. However, apparent equity can evaporate if the property is laden with liens. Prudence dictates to examine the title of the property that will be sold. Is the lien being foreclosed a second or third lien? If so, then the first lien (usually a purchase-money lien held by a financial institution) will continue in force and effect. First liens are supreme. They are not extinguished by foreclosure on a junior (inferior) lien. What about IRS liens? Improvement liens? Liens imposed by homeowners associations? Any or all of these could consume any equity might have otherwise existed in the property. If you are unsure as to whether or not such liens will be wiped out in the foreclosure sale, then you should check with a real estate attorney and a title company.

Where Can I Find More Info About the Foreclosure?

If you need more information about the property itself, contact the trustee named in the Notice of Trustee’s Sale. Trustees are often willing to provide information if they have it. You might even be able to arrange to view the property if it is unoccupied. Information is critical; do your homework. There is no such thing as “too much info” if you are going to succeed in buying foreclosed properties.

#2 Evaluate and Determine the Property’s Condition

What you see is what you get. A foreclosure sale is an “as is – where is,” transaction. You get the property is its present existing condition, without warranties, express or implied. Knowing the property’s physical condition is vitally important. When buying residential properties, for example, you should be especially careful about condition of the foundation (i.e. signs of signs of settlement), whether the property is flood-prone, and whether environmental contamination may be present.

How to Research Environmental History of an Austin Foreclosure

Previous or ongoing presence of hazardous substances can impose huge liability, since both Texas and federal law provide that any owner of property (including the investor) is jointly and severally liable with any prior owner for cleanup costs. The Texas Commission on Environmental Quality (TCEQ) maintains a web site at www.tceq.state.tx.us where the environmental history of a property can be researched.

#3 Preserve the Foreclosure’s Value and Only Buy Value

It’s easy to get caught up in the thrill of the auction. Emotions run high and competition can be seemingly fierce. But, guard against bidding more than the equity in the property (e.g. fair market value less the total dollar amount of all the liens, if any that will survive the foreclosure). Discovering Fair Market Value is the key starting point? Again, it is a question of getting the reliable information and understanding the market trend. The best way is to retain an experienced Buyer’s Agent and obtain a Comparative Market Analysis (CMA). Remember: You make your profit on the purchase and you realize your profit at the sale.

#4 Be Prepared to Pay Cash at the Foreclosure Sale

In larger counties, foreclosure sales may seem to appear chaotic. Generally, there are no rules with respect to where a trustee must stand or that only one trustee can carry on a sale at one time. In fact, often several trustees may be talking simultaneously. There are no prescribed words, although trustees usually recite the details of the note and lien, the fact that it went into default, proper notice was given, the note was subsequently accelerated, and the property is now for sale to the highest cash bidder. That’s right! Foreclosure sales are all cash purchases. No loans, no lenders, no financing contingencies, money up front! Trustees must, however, conduct their sales within the four-hour period specified in their notices. You may need to seek out the right trustee with the right property, so be proactive. Warning: do not let the excitement of the sale cause you to exceed your pre-established maximum bid.

#5 Find the Closet Bank Where You Can Obtain a Cashier’s Check

It is cumbersome and potentially dangerous to bring large sums of cash. Most trustees will permit a buyer a short period of time (e.g. 1-2 hours) to return with a cashier’s check in the amount of the sales price. If the buyer does not return within that time, the sale is resumed. Many investors will carry several cashier’s checks in different amounts, allowing them flexibility in bidding.

#6 Know Your Options if the Foreclosure is Occupied

Your Substitute Trustee’s Deed will supersede any existing lease that the former owner signed with a current tenant. This seems unfair for the tenant – but that’s the law. You will therefore have a choice in the case of occupied properties – whether to allow the tenant to remain on terms acceptable to you or, alternatively, to lawfully evict the tenant. Eviction under such circumstances is seldom accomplished without resort to filing a forcible detainer action in Justice of the Peace court in the precinct in which the property is located. Evictions usually take 3 to 4 weeks and may involve substantial attorney’s fees. These costs should be built into your budget.

#7 Know the Right of Redemption Rules

An investor should be prepared to hold the property and defer either making substantial improvements to it or reselling the property until after any applicable rights of redemption have expired.

Chapter 209 of the Property Code, known as the “Residential Property Owners Protection Act,” requires provides for certain procedures and protections in the event of foreclosure by a homeowners association. The redemption period is 180 days (Property Code Sec. 209.011).

After foreclosure for unpaid taxes, the former owner of homestead or agricultural property has a two-year right of redemption (Texas Tax Code Sec. 34.21a). The investor is entitled to a redemption premium of 25% in the first year and 50% in the second year of the redemption period, plus recovery of certain costs that include property insurance and repairs or improvements required by code, ordinance, or a lease in effect on the date of sale. For other types of property, the redemption period is 180 days and the redemption premium is limited to 25%.

#8: Find Out if the Foreclosed Owner Filed for Bankruptcy

No due diligence is complete until a search is made of the bankruptcy records to make sure the owner in default has not filed bankruptcy immediately before the sale. If so, the sale is null and void. The problem for the investor is that it is sometimes a difficult and lengthy process to recover the money the investor paid for the property at auction. Sheriffs, constables, and tax authorities are notorious for this. Bankruptcy is a major stumbling block.

Miss One of These Steps?

Missing any one of these steps might mean the difference in making a profit or not. Diligently go through all of these steps for each property you are considering to minimize risk everywhere you can. Still not scared away yet? Check out our post, 4 Keys to Success When Buying Foreclosures at Auction. Have questions or need help? Email us at info@AustinRealEstateHomesBlog.com.

Two Types of Foreclosures in Texas

Texas law provides for two types of foreclosures:

1. Judicial – i.e., through the courts pursuant to a judge’s order
2. Non-judicial – “on the courthouse steps”, without any involvement by the courts

Judicial foreclosures are held in court presided by a Judge and non-judicial foreclosures are essentially an auction conducted by a Trustee in an open forum.

Buying Homes at Auction in Travis County – When and Where?

Non-judicial foreclosure sales are held on the first Tuesday of every month between the hours of 10:00 a.m. and 4:00 p.m. at the location determined by the commissioners court of the county in which the property is located (Texas Property Code Sec. 51.002). Notices of foreclosure sales must be filed with the county clerk and posted (usually on a bulletin board in the lobby of the courthouse) at least 21 calendar days prior to the intended foreclosure date. These notices are entitled “Notice of Trustee’s Sale” or “Notice of Substitute Trustee’s Sale.” They provide information about the debt, the legal description of the property, and designate a 4 hour period during which the sale will be held. In larger metropolitan areas there may be a foreclosure listing service and in Travis County the Tax Assessor publishes a List of Tax Sales.

Is Buying a Foreclosure at Auction Right for Me?

Check out our post, Buying a Foreclosure at Auction? Better Do These 8 Things First, and read exactly what the foreclosure buying process entails. Have questions? Email us at info@AustinRealEstateHomesBlog.com.

Prepare Yourself for Battle

While you can’t do anything to infuse more homes into Austin’s lean market, you can certainly educate yourself by understanding the trends and patterns in the neighborhoods you’re trying to buy in. While it’s clearly not quantum mechanics, there is definitely a noteworthy advantage to those buyers who understand the trends of a real estate market. Understanding the nature of the market, and preparing yourself for the journey (or battle) is probably the most critical step for managing your expectations.

What’s Driving Austin’s Housing Market?

Household formation is the key factor driving the resurgence in home prices and rents. In Austin, the spike in the number of new households is because of a massive population increase due to a powerfully enticing job market. With home prices rising faster than rental prices, would-be home buyers – previously sitting on the sidelines – are scampering to become home owners before prices move out of reach.

Homes in Superior School Districts are Selling Fast

Selected segments of the Austin housing market appear to be placing an increased premium on homes located in neighborhoods served by superior schools. When average days on market decrease moves steadily down coupled with list prices and price per square foot averages increasing consistently in tandem, as they’re doing now, we are in a seller’s market. In a seller’s market we expect to find median and average prices on the increase and available inventory declining which is exactly what is happening here. Hence, prices increase, available inventory decreases and home buyers become frustrated and disheartened. But, again you know that too.

5 Keys to Buying a Home in a Strong Seller’s Market

Over the years, we’ve seen several sellers markets, some even stronger than the one we’re seeing today in Austin. Here are 5 keys to surviving the strong seller’s market as a home buyer.

#1: Be Prepared

Things move quickly in a seller’s market. Buyers who are prepared to move with the pace of the market are more successful than those who aren’t. How can you get prepared? Get fully pre-approved before you start your house hunt. Sellers are requiring buyers provide some sort of proof they can actually afford their home before they accept their offer. If you’re paying cash, arrange to get a proof of funds letter from your bank. Been pre-approved? Great! Next is to monitor the market in the neighborhoods you’re considering. This way you’ll know how well priced a home is when it hits the market and you can craft your offer accordingly. Ask your buyer’s agent to set you up on a search that shows you sold data for each neighborhood you’re considering. Finally, have your buyer’s agent explain the purchase contract to you before you find a house. This is one of the first steps in the process with the buyers we work with. Explaining the contract before you have identified the house not only helps you understand what you have to do and when you have to do it, it is also much easier to digest when you aren’t thinking about what color to paint the living room or stressing about how many other offers there are going to be.

#2: Know What You Want and Where You Want It

Identify the type of home you’re looking for and where you can find it (neighborhoods, zip codes, etc). Set up email alerts, so you are the first to be notified when a home that meets your criteria is listed for sale. The best homes are selling quickly, sometimes within a couple of hours. So, waiting until the weekend to see what you missed during the week might mean you are only seeing the homes that have already been picked over. Proactively attack your home search and you’ll have the best results.

#3: Respond Promptly and Decisively

Once you find a house, put together a carefully crafted offer as soon as you can. Your buyer’s agent can help you determine what things should be in your purchase offer. For example, when we are representing a buyer, we call the seller’s agent and ask what specific things the seller is looking for so we can write the offer in such a way that the seller would be afraid to turn it down. Our goal is to help you get the house without having to overpay for it. So, if we can entice the seller with terms, move dates, etc, we can generally save you some money.

#4: Use an Experienced Buyer’s Agent

An experienced buyer’s agent (one who has been around for several years) has been through a strong seller’s market. They know the tricks to making their clients home owners. We’ve helped hundreds of buyers over our combined 55+ years of experience. Needless to say, we know the ins and outs and buying homes. When you’re in a competitive market like a strong seller’s market, nothing can replace experience. And, the seller pays your buyer’s agents commission, so it costs you nothing additional to hire your own Realtor who is going to fight for your price and fight to get your offer accepted.

#5: Shrug Off Rejection – The Right Home May Pop-up Tonight

This is probably the biggest key to surviving a strong seller’s market as a buyer. You can do everything you possibly can, but sometimes your offer may not be accepted. And, it’s not always about price. The seller can accept any offer for any reason they want. Put your best foot forward and trust fate a little. Every single buyer we’ve worked with who has not been the winner in a competitive offer situation (one couple lost out 7 times before they were successful), has always said the house they ultimately ended up with was the one they were supposed to buy. This list also includes my daughter. Though it may be hard to see it right after your offer is rejected, trust that something else will come up soon.

How Long Will this Strong Seller’s Market Last?

We’re often asked this question and though we don’t have a crystal ball, we know people are pouring into the Austin metro area. Last figures we heard, 170 people per day were moving to Austin from outside the area. Combine this with the people who already live here and that’s a lot of people looking for homes. Though home builders are ramping up production, they are having a difficult time keeping up with demand. So, as long as the number of new households created grows faster than the production of new housing stock and affordable financing is available, we would anticipate this strong seller’s market to continue. Watch our Austin Real Estate Price Reports for a monthly commentary on the market for more on this.

Should a Home Buyer Put Off their Search Until the Market Calms?

The short answer is no. As the seller’s market continues to pick up speed, prices will start to go up. And at some point, interest rates will rise. Combine price increases with interest rate hikes and the neighborhood you can afford now may not be a reality in 6 months. If you’re willing to live in your second tier neighborhoods and would rather not compete with other buyers, then wait. But, if you’re looking to live in the best neighborhood you’ll comfortably be able to afford, grit your teeth, get out there and find something. We can show you how to be successful as a buyer in a strong seller’s market.

Ready to Start the Home Buying Process in Austin?

If you’re looking for an experienced buyer’s agent who knows how to get offers accepted, check out our Austin Home Buyer page to learn a little bit more about our team. We are a genuine team, so you get 3 agents for the price of one, and we’re experienced (55+ years combined). Call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com to schedule a no obligation conversation.

Austin’s Unemployment Rate Well Below the National Average

Austin’s unemployment rate is 5.4%, compared to a national average of 7.8% and jobs continue to pour into Austin. Apple is expanding its Austin campus in 2013 with a 1 million square foot operations center, the second largest facility in the country. This expansion will bring 25,000 new high tech jobs to Austin. Add eBay, Facebook, Google and Intel and you’ll start to see how the tech industry in Austin is evolving.

Austin’s Not the Only Texas City to Make the List

Austin’s close neighbor, San Antonio, rounded out the list at #4. Although San Antonio is a much larger city and metro area than Austin, it is growing a tad bit slower. San Antonio, with 2.2 million people living there, is the 7th largest city in the US and has the oil and gas industry to thank for it’s growth in population. #5 on the list was another Texas city, Houston. Like San Antonio (and most of Texas), Houston has benefited from the oil and gas boom with chemical and mining industry but also has NASA’s Johnson Space Center. Completing the list of Texas cities, Dallas/Fort Worth came in at #11 on the Top Boomtowns list. Dallas and Fort Worth tend to have a broader range of employment opportunities, so it attracts all types of companies, not just high tech or oil/gas like in Austin, San Antonio and Houston.

Top 12 Boomtowns of 2013

Here is how the entire list filled out. You probably won’t be surprised as a lot of these cities have been seen on many similar lists lately.

1. Austin – Round Rock
2. New Orleans
3. Raleigh
4. San Antonio
5. Houston
6. Washington DC
7. Oklahoma City
8. Nashville
9. Portland
10. Charlotte
11. Dallas – Fort Worth
12. San Jose

Thinking of Relocating to Austin?

Clearly, you aren’t the only ones! We relocated here from San Francisco about 4 years ago now and in just that short period of time, we’ve seen Austin grow tremendously. And, for good reason. Quality of life is superior, we have jobs and excellent public schools. For more about Austin and what it’s like living here, check out our Austin Relocation Guide and our Austin Relocation Blog. While other Realtors claim to specialize in relocation, most of them have been in Austin for their entire lives. We’ve actually made the move to Austin and know what it’s like to move to a city you know nothing about. We know the area well and can help you find which part of town is best for you and your family. Check out our Austin Home Buyers section to learn how we’re different than your average Realtor. Then call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com to schedule a time to discuss your move to Austin.

“According to our list, uber-hip Austin is the best place to live if you’re in your 20s and searching for a town filled with peers, good job prospects and fun things to do. The Central Texas metro, known both for a bustling tech community and a trend setting music scene, ranks first on our list of America’s Best Cities for Young Adults.” – Forbes Magazine

What’s the Draw to Austin for Young Adults?

In the past decade, Austin has surged to the top-tier rankings for healthy lifestyle, friendly business environment, strong growth and a cost of living lower than other major cities. In a recent article the The New Times reported that one-third of the companies – mostly technology based – that are moving to Texas originated in California, where the high cost of the doing business and draconian tax code often sends companies – and people – looking for other options. Even Texans say that Austin is the one city in the state that most want to live. Let see why.

Austin is a Friendly Place to Live

KINSHIP. A lot goes on in Austin between friends and “friendenemies” in the world of technology. Major players have a strong presence and there is a burgeoning incubator scene where people can live, work and play. Austin gives people a place to come together and work together to grow a career and build a business. It’s easy to network in a vibrant start-up community. It’s a city that nurtures start-ups. Austin has a large contingent of engineers, designers, marketing professionals, scientists, advisors, and investors. Young adults continue their endless quest for the most vibrant cities to call home.

Austin Promotes a Balanced Lifestyle with Endless Events

EVENTS. Austin is a happening place. Almost any day in any week you’re likely to find any number of technology events. Yet, what makes Austin so special – especially for young adults and families – is that it offers both an intense start-up community and a culture that fosters a balanced life style.

Austin Has a Low Cost of Living and is Tech Friendly

COST OF LIVING. If you have lived in other tech cities around the country, you know that the cost of living can be exorbitant. With no state income tax, people have more disposal income than they would otherwise. “It’s possible for a family to live comfortably on one income in Austin,” one engineer told me. Try that in Sunnyvale, CA! Young adults take home an average salary of $43,000 including entry-level salaries, and Austin’s unemployment rate is almost one-third lower than the 9.8% national average. Austin’s attractiveness is a pairing of a relatively low cost of living and access to a highly educated, well-trained talent pool.

Austin Welcomes All Types of People

LIFESTYLE. Austin is a state of mind. It’s eclectic and electric. It offers a little bit of everything – live music, art, outdoor lifestyle, entrepreneurship, creativity, innovation, weirdness (“Keep Austin Weird”), individualism, and a bit of southern hospitality. There is something to please everyone – children, young people, families, and older folks. Business, recreation and community involvement all flourish.

Austin’s Community is Rich in Resources

OPPORTUNITY. Whether you choose to work for a multi-national company or a start-up, Austin is a community rich in resources. Drive your passion or live your own life style, the choice is yours. Austin has the look of a big city with a small town feel. Whether you’re into the fitness scene, the football scene, the movie scene, the foodie scene, the live music scene, the techy scene or simply your scene, Austin is the real thing. Most of us Austenite’s would like to keep Austin a secret, but it’s pretty clear we can’t keep Austin’s awesomeness to ourselves any longer.

Are You a Young Adult Looking to Relocate to Austin?

We relocated to Austin from San Francisco about 4 years ago and love it. Coming from San Francisco, we thought it would be a huge change, but have found Austin is a great place to live and wouldn’t go back now if we could. If you think Austin might be a place where you could call home, check out our Guide to Relocating to Austin and read more in our Austin Relocation Blog. You also might want to check out our Best Austin Neighborhoods for Young Professionals to find out where you might want to live. Then, when you’re ready, call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com and we’d be happy to discuss your move and how we might be able to make the transition as easy as possible.

Planning a Trip to Austin Using the Austin Visitors Guide

Whether you’re looking to fill an extra couple of hours before you head to the airport, looking for something to do at night or a restaurant to check out, the Austin Visitors Guide has everything in one handy file. It’s also a great way to get an overview of the area and check out what areas you don’t want to miss when you are here.

Austin Visitors Guide

Download a Copy of the Austin Visitors Guide

Top 10 Things to Do on Your 1st Visit to Austin

Here are the Top 10 Things to Do on Your First Visit to Austin.

Thinking of Relocating to Austin?

Check out our Tips for a Successful Relocation Experience. We relocated to Austin from San Francisco about 4 years ago now and know exactly what you are going through. If we can help recommend areas of town, schools or answer any questions, we would be happy to help make your move as easy as possible. Check out our Austin Home Buyer section to learn more about the types of housing Austin has to offer. Then, email us at info@AustinRealEstateHomesBlog.com or call us at (512) 827-8323 to schedule a time to discuss your move.

Austin Bank Owned Properties Sold Down 35%

April 2013 saw a 35% decrease in the number of bank owned homes sold in year over year figures. In April 2012, there were 54 homes that sold (closed escrow) compared to just 35 homes in April 2013. Bank owned homes (foreclosures) accounted for just 3.3% of the total home sales in Austin, compared to 6% of the total sales in April 2012. The overall market saw a 19% increase in the number of homes sold compared to last year’s numbers.

Austin Bank Owned Homes Under Contract Down 22%

Also trending downward was the number of bank owned homes, foreclosures, that accepted a contract. In April 2013, there were 49 homes that accepted a contract (pending) compared to 63 homes in April 2012 marking a 22% (14 home) decrease in year over year numbers. Bank owned homes accounted for only 3.7% of the homes that went under contract. The total market had a 15% increase in the number of homes that went pending compared to last year at this time, showing just how small a percentage the distressed market takes in Austin.

Austin Bank Owned Listed for Sale Down 59%

In April 2013, we saw a 59% (47 home) decrease in the number of bank owned homes, foreclosures, listed for sale. In April 2012, there were 79 foreclosures (homes owned by the bank) listed for sale compared to just 32 in April 2013. We hear all the time about “shadow inventory” and banks holding any homes they own to later flood the market, but it doesn’t seem like that is going to be the case, at least for the foreseeable future. With the Austin housing market as hot as it is, if banks had more inventory to sell, I think they would take advantage of the increased demand and start to release more of their homes and put more money in their pockets.

Austin Bank Owned Homes Currently for Sale Down 60%

The number of bank owned homes in Austin currently on the market went from 188 in April 2012, to just 76 in April 2013 marking a 60% (112 home) decrease. The full market was down 25%, which is nothing compared to the bank owned market. Number of bank owned homes for sale made up just 2.5% of the market in April 2013. It seems buyers are recognizing deals with buying bank owned homes and moving them off the market.

Austin Bank Owned Homes that Didn’t Sell Down 86%

In April 2012, banks took 7 homes off the market that didn’t sell compared to just 1 that was taken off the market in April 2013. As with the overall market, buyers are snatching up bank owned home inventory where even the ones in poor condition are selling (for the right price). Bank owned homes taken off the market in April 2013 were just 0.9% of the total homes that were taken off the market, showing there really is a demand for bank owned homes and that banks price their homes to sell and sell quickly.

What Do Austin Foreclosure Numbers Mean for Buyers?

Bottom line if you are pursuing foreclosures in Austin as part of your home buying strategy, make it just that – part of your strategy. With so few bank owned homes on the market in Austin, you should open up your search to both homes owned by the bank and homes owned by traditional sellers. Remember, the traditional seller has to compete with bank owned properties if they want to get their homes sold. And, with interest rates as low as they are, you might find yourself paying even more for a bank owned home if you wait until the end of the Summer.

Looking to Buy a Foreclosure in Austin?

With a combined 55+ years of experience, our team knows how to get banks to accept your offers, even in a competitive market like we’re seeing here in Austin. For more, check out Guide to Buying Foreclosures in Austin and our Buying a Home in Austin Guide. Then, call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com to schedule a no obligation conversation. Together we can come up with the best strategy for you to buy a bank owned home in 2013.

Austin Housing Inventory Down 48%

As it’s been for past several months, the biggest news in the Austin housing market comes by way of inventory. In April 2013, we saw a 49% decrease in months supply of inventory from already very low March 2013 numbers to just over 1 month inventory city wide. In the more desirable Austin neighborhoods, we are seeing an even smaller amount of inventory available. April 2012 saw 2.25 months of inventory, which is indicative of a strong sellers market. This month’s 1 month inventory surpassed last year’s low, making it an even more extreme sellers market.

What does this mean to buyers? If you’re in the market to buy, be proactive, especially if you’re looking in one of the more desirable neighborhoods. Homes that are priced right are selling within a matter of hours. Buyers can’t afford to wait a week to look at a home. Making home buying a priority will ensure you don’t miss out on a great house.

What does this mean to sellers? If you’re thinking about selling, now is the time to do it. We haven’t seen this extreme a seller’s market in Austin in years. Interest rates are incredibly low and buyers are starting to get eager to buy something before they go back up.

25% Fewer Homes on the Market than April 2012

In April 2013, we had 2,983 homes listed for sale in Austin, compared to 3,998 in April 2012. As you can see below in the properties listed for sale numbers (which are up in year over year numbers), we have less properties for sale, but that’s not because we have fewer homes being listed. We actually have 2% more homes being listed than we had last year at this time. This gives a good indication of the number of buyers out there waiting because even with increased number of new listings coming on to the market, we’re still seeing record low inventory that continues to create new records every month.

Austin Median Home Price Up 13%

This month, we saw a 13% increase in the median home sale price of a home in Austin. In April 2013, the median home price was $300,000 compared to $266,000 in April 2012. Median home price helps us see the distribution of homes being sold and does not really give us an indication of the increase or decrease in a particular home’s market value. To analyze market value, we’d have to take an in depth look at a neighborhood. If you’re looking for something like that, please email us at info@AustinRealEstateHomesBlog.com.

Number of Sold Homes in Austin Up 18%

In April 2013, Austin saw a 15% increase in the number of homes sold from April 2012 to April 2013 numbers. In April 2013, we saw 1,061 homes sell in Austin compared to 899 in April 2012. Last Spring showed strong numbers, but this Spring continues to outpace last year’s market in record numbers.

31% More Austin Homes Under Contract

In April 2013, there were 1,328 homes that went pending compared to 1,148 in April 2012 marking a 16% increase. We’ve started out strong in 2013 with the number of homes selling going up steadily each month. Based upon what we’re seeing out there in the market, it looks like May 2013 numbers will also increase.

Number of Homes Listed for Sale Up 2%

In April 2013, we saw a 2% increase in the number of homes being introduced to the market than in April 2012. In April 2013, there were 1,441 homes listed for sale in Austin compared to 1,414 in April 2012. This is another indicator of just how many buyers are out there. With only a slight increase in the number of homes that are being listed for sale, we saw a remarkable increase in the number of homes sold meaning even the less desirable homes are selling. If you need to sell, strike while the iron is hot. Buyers are competitive and are out in full force. Take advantage of market conditions to get the highest possible price for your home.

Number of Homes Taken Off the Market Down 48%

With such low inventory levels, homes that might not necessarily have been sold in a normal market are selling causing a significant 48% decrease in the number of homes that were taken off the market in year over year numbers. In April 2012, 221 homes were taken off the market and in April 2013, 115 were taken off the market. Sellers seem more realistic in their pricing and buyers seem more willing to shell out the cash needed to get into the homes they want. If demand continues to stay strong, I would expect the number of homes taken off the market to continue to decrease compared to last year’s figures.

Did your home expire? Check out our Austin Home Not Selling resources page to find out why.

Time to Sell Home in Austin Down 30%

In April 2012, it took, on average, 44 days to sell a home in Austin while in April 2013, it is taking around 31 days. A normal market is considered 90 days, so 31 days is incredibly fast. Remember, this figure takes into account all of Austin. In the more desirable neighborhoods, we’re seeing this number go way down – some averaging just a few days and others even just a few hours.

Supply is Down 25% and Demand is Up 18%

This month we’ve seen a 25% decrease in supply (number of properties for sale) and a 18% increase in demand (number of sold properties). Yet another indicator more residents are deciding to stay put while others continue to move to Austin in record numbers.

Median for Sale Up 20% vs Median Sold Price Up 13%

This chart compares the Median for Sale Price vs the Median Sold Price to show their relationship. In Austin, we saw a 20% increase in the median for sale price and a 13% increase in the median sold price of a single family home in year over year numbers. Sellers appear to be more successful at getting buyers to come up to their price, even though they are setting higher list prices, an indication of the strength of the market.

Source: Clarus Market Metrics, ACTRIS Sold Data

April 2013 Real Estate Price Report – Strictly Numbers

For those of you who prefer to see the actual hard numbers, we’ve included the figures for April 2013 Austin home sales below. The most expensive home that sold in April 2013 was $5,860,000 and the least expensive home sold for $54,000. Homes range in size from 480 sqft-12,553 sqft with an average size of 2,389 sqft. The average price per square foot was $164.78 with the lowest being $20.77/sqft and the highest being $702.64/sqft. It took, on average, 36 days to sell a home in Austin and sellers received, on average, 99.75% of their list prices.

April 2013 Days on Market Report

The overwhelming majority (72.8%) of the 1,066 homes that sold in Austin in April 2013 (776) sold in less than 30 days and received, on average, 100.22% of their list prices. As homes stayed on the market for longer, sellers received less than their list prices with homes that have been for sale for 120 days or more receiving, on average, 95.29% of their list prices. The lesson here? Homes that are priced right from the beginning sell quickly and for list price, or even a little bit more.

April 2013 Price Analysis Report

The majority of the homes that sold in Austin in April 2013 were priced below $500,000, which is to be expected. You’ll also see that the lower priced homes sold faster than the higher priced homes, which is due largely in part to the increased market for homes below $500k.

April 2013 Summary Price Report

Below you’ll find a breakdown of the sales prices of homes in Austin. The average price of a home that sold in April 2013 was $413,497 and the median price was $300,000.

Time to Buy? Sell?

As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to sell, selling when its a buyers market may hurt you on the selling end, but you’ll make it up on the buying end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.

Looking strictly at the numbers, it appears the recommendation for this month is (again)…it’s time to sell. With inventory at record lows, a home that’s priced right will have no problem finding a buyer. Buyers again came out in record numbers yet again in April 2013 with a 16% increase in the number of contracts received by sellers in year over year numbers. As we head into May 2013, buyers who have been waiting for more inventory will continue their searches. Get your home on the market now and be moved into your new home by June! If you’re looking to sell, we can help you get top dollar for your home in the shortest time. For more info about the best home selling program in Austin, visit Sell My Austin Home.

If you’re a buyer, that doesn’t mean sit on the fence and wait. Interest rates are at all time lows, which could mean the difference in hundreds of dollars to your payment. As more and more inventory gets snatched up, you’ll find less and less available. Waiting until the market slows down could mean you could afford less home if interests rates go up. And, as buyers continue to snatch up everything, market values will go up as well. If you’re looking to get into the market, the best time to find a great deal is any time you can. For more info about our Home Buyer Representation Program, check out Austin Buyer Brokers.

Questions About the Austin Real Estate Price Report?

Do you have questions about this Austin Real Estate Price Report? Call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.