Austin Real Estate Secrets

The Austin Golfer: Forest Creek Golf Course and Community

2012-02-09T15:16:00.000-08:00

Continuing my series this year on Austin's most challenging golf courses and outstanding golf communities--let's talk Forest Creek Golf Course and community. Located in Round Rock, just 25 minutes from downtown Austin, Forest Creek Golf Course is a semi-private/public course and this course is all about it's name sake--trees and water. With one of the higher slope ratings in Austin golf, this course has more than its share of signature challenges.

Forest Creek hosts one of the most important events in Austin golf each year--The Central Texas Amateur Open. Golfers with ambition to join the professional tour, have to clear the hurdles of the amateur tour first and in Central Texas that begins here.

This course has a few "signature holes" with lakes and beach front property, but if the water doesn't beat you--you may still not be out of the woods. Some of the deceptive holes to watch out for include #9. It starts out with a seemingly simple drive toward water and sand traps, but baring a perfect position in the drive, you are left with a short lay-up with water on both sides and a precise third shot to a very high elevated green. Very demanding green location. In fact, there are a number of holes with elevated or de-elevated greens. And many of the fairways cross the creek or encounter water just before the green. Double dog legs. Narrow gap entries to the green with forests on each side. Long charges up big hills that don't look so challenging on paper--but don't be fooled. There is a reason why the Amateur Open is held here every July.

The Player Development Program (PDP). Forest Creek is one of just a hand full of courses in Austin that offer an incredible program for individuals or families to learn how to play golf from the PGA Pro's. The PDP clinics are held four times a week. In the PDP you can learn how to use all the sticks in your bag--from putting, to driving, short irons, long irons, hill shots, sand--if you want to learn this game in less than 20 years, there is no better way than joining the PDP clinics. And if you live in Forest Creek, it is just that much easier.

It is the dead of winter out now and two things stand out here--golfers are playing golf in their shorts (most days) and this course is in great condition. Coming out of the great drought of 2011, you would never know it from playing at Forest Creek today. The greens are clean and the fairways are rich. If you have not played Forest Creek Golf, or you are looking for a great golf community to live--give me a call and let's go play Forest Creek this week!

Top 10 Things You Should Know Before Buying Your Home

2012-02-05T10:21:00.000-08:00

Whether you are buying your first home or this is your third or fourth home, you probably don't do what I do 65 hours a week--working Real Estate transactions and numbers. New homes or resell--there are huge advantages to having a Realtor working for you (for free to you!). What a Realtor knows and how a Realtor negotiates a transaction for his client, is very different from buying a new car or other large dollars negotiation. Realtors are using unpublished information and relationships to work through the best possible deals for their clients--even on new home transactions. Especially on new home transactions.

Every year I meet buyers who believe they have negotiated the best possible deal on their own with a new home or resell, only to find out later that they did not know what they did not know. Real Estate is a business and this business should not be treated casually or lightly. Being good in this business is more than reading a few listings and the opening door to available homes. Your Realtor should be smarter and more experienced than a taxi driver or open house host.

If you are preparing to buy a home, even if you have purchased a home in the past, you should take just a few minutes and listen to this complete video. And after you have listened to the view, give me a call. Let's Talk.

How To Buy A Foreclosure in Austin or Anywhere

2012-01-30T07:36:00.000-08:00

There are certain assumptions that often go along with the purchase of foreclosure properties. The most common assumption is that banks are happy to receive virtually any offer on a foreclosure--especially a cash offer. But this is not how banks look at their assets. Banks have no emotional investment in a property. It is just a non-cash asset to them. Furthermore, banks are looking at their bottom line, first and foremost. When a bank gets an offer on a foreclosure property, they are doing what any seller would do--looking at how much is due on the loan vs how much the offer price is on the property. If it makes financial sense to sell--they will sell. If it does not...well, don't expect the bank to do something unnatural.

Not all banks are the same when it comes to foreclosures either. Every bank and every transaction is going to be unique. The bank is looking at market value of the home, how much is outstanding on the loan, health of the local market and how long it takes for a property to sell, their larger outstanding portfolio, internal policies, investor restrictions and potentially a host of other factors that play into the decision making process. So, how to you break down these walls and figure out how to get a good deal on an investment foreclosures?

Q: How do you get the biggest bang from your foreclosure purchase?

First of all, "hire" one full time Realtor ® who is active in the current market and whose portfolio includes investors. Having a Realtor who also personally invests in Real Estate is a good idea, but at very least you need a Realtor ® who has investor clients and understands investment real estate.

Secondly--Prepare for your purchase.

Know your budget range upfront. If you don't know your budget, you will not be able to get started. This is not something you should figure out later.
Know how you are going to finance the loan. Get pre-approved from your Realtor's recommended lender upfront--not after you find a house to purchase. If you need to move funds around to buy the house--do it now. Don't wait.
Know your exit strategy. Will you lease for 3-5 years and then sell? Can you afford to just break even on the monthly rent/mortgage payments--if so, consider a 15 year loan for faster property equity.
Don't let your Realtor ® be the only one looking. Log in and look for homes everyday and scourer the available listings daily. When you see one that looks promising, contact your Realtor immediately to get his input.
When a house hits the market that looks viable--go see it within 24-48 hours. If it looks great--go see it that day. Don't wait.
When you find the property that meets your requirements--make an offer that day. Don't make the mistake of waiting. Even one day can be the difference between being the offer of consideration or being one of many offers. This may be the most important piece of advise I can give to a new investor. Don't hesitate.
Build a relationship with your Realtor ® so that he is always thinking about you and knows that you are serious about your investment strategy and needs. If your Realtor ® knows that you are ready to pull the trigger immediately and that you have a realistic expectation of the market, you will get a lot more of his time and attention. Your Realtor ® wants to help you, but Realtors ® only get paid if you buy and investment properties are not huge revenue for the Realtor ®--so your Realtor ® needs to know that you are ready to pounce on a property when the day comes.
Get your Real Estate news locally. Don't just listen to the national news or read the news for one part of the city and assume that it applies to the area where you are buying. It most likely is unrelated information. This is another reason why your Realtor® needs to be well connected to the market and you need to be well connected to your Realtor®.

Buying a foreclosure property can be advantageous--if you know what you are doing and your financial reflexes are fast. Early birds. Worms. That sort of thing--you know.

Call me. Let's Talk.

Can you Recommend a Good Realtor in Austin?

2012-01-24T20:55:00.000-08:00

This week I ran into a friend/past client that I have not seen in almost 3 years since I sold one of his homes. He said to me "I have been thinking about you this week. I need to give your name to a friend who is selling his house." It is very interesting because this person had been referred to me by another client and friend after I listed and sold her house and another neighbor's house. In a very short period of months I had been referred to three neighbors and sold all three of their homes. And now, those clients are referring me to their friends and neighbors.

More than a few of past 100+ clients of mine have written words here for you to read. These are their gracious words about my work helping them buy and sell their Austin area homes.

Here is what they said about me, Tim Thornton, Austin area Realtor ®.

"As a Real Estate Investor, I had been successful buying and selling properties without the use of an agent, however, on my most recent transaction I called on Tim Thornton from ZipRealty. Tim took care of everything, reminded me of when I needed to take action, taught me quite a few things that I did not know about selling a house and developed a sound strategy that brought a contract on the house in 8 days and closed. Tim is the best I have seen in this industry and will use him from now on." - Lou G, Austin, TX - Seller/Investor

"I would highly recommend Tim. He worked hard to find the right property and then stayed with us to quickly negotiate the best deal." - Edwin Y., Buyer / Investor, Austin

"I can't imagine someone being a better realtor than Tim Thornton. He is exceedingly conscientious, hard working, knowledgeable (on just about everything) and caring; he works seven days a week, and even on some holidays. Where did you find this guy; he's one in a million. Most importantly, he is committed to find you the home that you truly want; he won't let you settle for less; nor does he push you or make you feel uncomfortable that the process is taking longer than it should. He cares about you being happy with your decision; he understands how big of a decision this is for you. At one point in the process of looking for the "perfect" home, I started to get carried away with a builder's model that was considerably over my budget. The home had some issues and did not satisfy some of my needs, but it really was a spectacularly beautiful home, and I wanted it. After many days of looking and not finding what I wanted I was ready to put in an offer; even though it was not the right home in some important respects. Tim could see that I was ready to pull the trigger and make an offer, but Tim didn't share my same level of enthusiasm and it bothered me. At one point Tim looked at me and said, "Robert, are you sure this isn't going to be too much home for you?" That remark, brought me instantly back to earth and caused me to refocus and evaluate my thinking; Tim was 200% correct; it would have been a bad decision and he could see it. Any other realtor would have picked up on my enthusiasm and put me under contract immediately; but not Tim. Like I said, he is one in a million." R. Coulson, Buyer

"Tim Thornton is a good example of what a Real Estate Agent should be! There are very few Agents that would stack up to Tim. Very Professional! His assistance in a strange market made it easy to find the Real Estate we needed." - B. Smith, Buyer/Builder

"Tim continued to push on, despite the challenges of buyer indecision, offer rejection, and various roadblocks. He stayed true to the mission to find us a home that we were delighted to buy. In the end, despite many more process challenges, we are in the home the we wanted, thanks to Tim." - Buyer, Austin

"This is my second home purchase using Tim and as before he is probably one of only a few agents in Austin that knows what is going on in the Austin Real Estate market. A real professional!" - Lee Smith, Builder / Investor, Cedar Park

"Tim was very instrumental in getting the buyer of my old house's lender on track...Tim spent hours on the phone with him trying to persuade him to do his job!" - J. Mcnutt, Seller, SW Austin

"This is the second house we bought with Tim. We are so happy with his great service, that our daughter is buying her 1st house next week with Tim." - Buyer/Investor, Round Rock

"He was very patient and was not pushy. He did not waste our time with houses that did not fit what we wanted. I would and will work with Tim again very soon." - Buyer, Round Rock

"Tim was calm, creative, knowledgeable, savvy...it was amazing. I absolutely could not be more satisfied with Tim Thornton, and would happily be a reference for him. I will use him again and again and again." - J. Saliga, Seller / Investor / Builder

"Tim is a wonderful agent to work with, and I would highly recommend him to anyone!!!" - Elizabeth B, Buyer/Investor

"Without Tim's help, I do not believe we would have found a home that had everything we wanted that was in our price range. We also did not think that we could purchase a new home and were looking at used. The home we decided to buy was brand new and we would never have seen it if it were not for Tim suggesting we take a look at it." - J. Wood, New home Buyer, Austin

"Tim did an outstanding job for us in all aspects.Very professional." - Buyer, Round Rock

"Tim is a thorough professional. He has been there for us throughout the process. He knows his job and has steered us in the right direction. He has been very patient, responsive and honest in the way he has conducted business with him. Austin was a new city for us but with Tim we feel that he showed us all the options before we made the decision. His help throughout the process was exceptional. In future (god forbid if we have to sell) we will definitely work with him." - Buyer

"My parent's bought 2 homes with Tim and I will use him again also, in the future." - Destini R, Buyer

"Tim went above and beyond in representing us. He followed up with our builder on our behalf on several occasions and ensured that all issues were properly and promptly addressed. Every aspect of the deal was fully explained in layman's terms, and Tim ensured that both my wife and I were completely satisfied with his explanations before ending the conversation. I'd happily buy a house through Tim again and would recommend him to anyone in the market." - Jonathan Hickman, Buyer, Houston

"We would highly recommend Tim as an agent for the Austin area. He was very accommodating and helped guide us to the perfect home. If he didn't know about something, he would get back to us very quickly with the answer! Tim is an all-around good agent and good guy!!" - Gunther A., Buyer/Re-modeler, Lakeway

"I would be thrilled to recommend Tim Thornton to anyone who needs a realtor. We could not have asked for a better agent!" - J. Youngs, Buyer

"Mr. Thornton was a pleasure to work with. He responded to every phone call and/or email, almost within minutes. Had an intelligent response for everything we queried about, was incredibly diligent with respect to every detail of our home purchase, from questioning the inspection report, commenting on potential problems, resolving issues as they arose (and unfortunately, too many issues arose), and making us feel completely comfortable and at ease with his expertise and professionalism. In addition to doing his job as a Realtor, Tim proved to be a great person to be around. We would recommend Tim to anyone we knew who was interested in either purchasing or selling a home. He is an asset to Zip Realty." - John E. and Cirlei E., Buyers, Forest Creek

"From day one, Tim completely facilitated all our needs during our relocation and was invaluable in our search for the right home. We couldn't be more pleased with Tim and the outstanding service he provided." - Buyer

"Tim was great at keeping us informed and prepared for the next step and also managing the contract and closing. He was also always available even with last minute requests to see properties. We appreciate Tim's availability, integrity and knowledge." - J. Weatherly, Buyer, Twin Creeks

"I had two different buyer's agents tell me directly that Tim was doing an unusually good job representing me as they pointed out that he consistently called the buyer's agents for follow-up and immediately called them back to answer any questions they had. They said that it is rare to see such responsiveness and pro-activeness in the industry." - L. Gagliardi, Seller/Investor

"Tim did a great job... Tim was always there to answer our questions. The overall experience was very good." - Buyer

"Tim is a very knowledgeable, trustworthy agent. He is committed to ensuring his client has all the information he or she needs before closing a contract. When it came down to completing the transaction, he was a pit-bull in all aspects of the deal, following up on all of the commitments everybody made to make the sale happen. Overall, Tim is an A+ agent and I'll work with him again and again." - Buyer

"This agent was very helpful and listened to all of my needs as a buyer. He was always available and returned phone calls in a very timely manner. He also kept in touch throughout the whole process." - A. Martinez, Austin, Buyer

"I would definitely recommend Zip and Tim Thornton to my friends and colleagues." - Seller
"Tim was wonderful in every aspect. From the very beginning of our search he was always there to help and patient with our specific requirements for our new home." - D. Cole, Buyer

"Tim has been very helpful throughout the buying process. We are very satisfied with his real estate knowledge. He even acted as our proxy during our overseas visit and did not let us feel that our absence is any handicap in the closing process." - A. Shiraz, Buyer

"Tim was a very thorough Agent and a good friend. He saw to all our needs and questions. There was no stone left un-turned." - K. Hackney, Buyer, Georgetown

"I'm very happy that I was able to deal with such a wonderful person such Tim. He is professional, knowledgeable and a very caring person. I can't say anything wrong about him. He was always there for my questions and insecurities of buying a house. He guided me through it all and advise me in many things that I was not aware of. It was a pleasure working with Tim and I'm very happy with my new house. Thank you." - Blanca F., Buyer, Austin

"You can't go wrong working with Tim..." - P. Hennigan, NE Austin, New home Buyer

"Just wanted to let you know again how much we enjoyed working with you. We are closing on our house today in Kansas City and the Realtor there that we are working with is not near the professional that you are!" - Buyer/Investor, North Austin

"We found Mr. Thornton to be very helpful and knowledgeable in our endeavor to buy a home. He went out of his way to get us the best deal possible. Kudos to ZipRealty for having such friendly and sincere agents." - Azra and Latief K., New home Buyer

"I WAS COMPLETELY SATIFIED WITH TIM THORNTON I WOULD RECOMMEND HIM TO ALL MY FAMILY/FRIENDS" - P. Distel, New home Buyer

"I love the way Tim helped us. He made me feel like I was the only client that he was representing. He had a lot of patience with us... Thank you Tim." - Buyer

"We are very happy to have Tim Thornton who guide us efficiently in choosing our new home. Thank you so much." - J. Wilson, New home Buyer

"...thanks to Tim getting us with the right people, everything went so smoothly and we love our new home." - V. Day, New home Buyer

"Tim was just great at getting things done when I asked. He kept me informed all the time on up dates on the house and when I asked him something and he did not know the answer he found out what the answer is right away and got back to me. He is great and I would give my friends and family his number." - D. Hill, Buyer

"Tim was a huge help in buying my home! He provided all the advice I asked for and more knowing I was a novice in buying a home. He went out with me many nights/weekends and always had time for me either on phone calls or meeting with me. I would highly recommend Tim and Zip to everyone I know!" - M. Forsythe, Buyer

"...I had a million questions and Tim took the time to answer every one of them and walked me through the entire process. I couldn't have asked for a better agent to work with throughout the house hunting and buying process. Tim was awesome. " - A. Ricketson, Buyer

"Tim and Kevin were great. They were very responsive and were very straight-forward during the entire process. I would definitely use them again." -Buyer and Seller, Falconhead

"Tim was very responsive and thorough in answering all of our questions, and taking care of the various situations that arose in the purchase of our condo." - Buyer

"Tim is an outstanding Realtor. He was always available and very professional " - H. and F. Gnuechtel, Builders/Seller

"Tim is very much attuned to his clients and always seams to have time to work with any problems you might have. He is also extremely good at following up on any potential buyer's leads and always tries to up-sell your property with the potential buyer and buyer's agent. I would always recommend Tim as a listing or buyer's agent." - Seller

"Tim's experience was extremely helpful for us given our lack of homebuying experience. He advised us with knowledge and allowed us to take on this endeavor with confidence." - A. So-Ying Fan, Buyer/Investor, Austin

"To anyone looking for a really friendly, knowledgeable and an all around good guy real estate agent, you need look no further because Tim Thornton is your man. He works hard for you and will answer every question you have in a professional and friendly manner. He is up front and honest, and will tell you reality not fantasy when it comes to buying/selling your home. I highly recommend Tim as an agent and will recommend him to all my friends/colleagues in the Austin area." - Seller

"Tim was a great agent. He was always willing to meet and show us houses in a prompt manner. Tim gave us great suggestions and guided us through the whole process." - G. Olinger, Central Austin

"Tim Thornton is a wonderful agent, very helpful and very knowledgable in his feild" - M. Rodriguez, New home Buyer, Crystal Falls

"Tim was very on top of things, and he didn't try to 'sell' me. He informed me and helped me with the process, which is exactly what I wanted. He was always on time and willing to meet me at any location. His emails of new postings were extremely helpful." - S. Whited, Buyer, Re-modeler

"Working with Tim, made our experience much easier here in Texas. He was very knowledgeable and accessible at all times. I was very pleased to have a realtor like Tim." - Alba Helms, Buyer

"Tim was completely professional, answered all my questions and was very positive throughout the whole experience." - J. Killebrew, Buyer

"We met Tim via the Internet and then via phone from California. He was invaluable as our family made the decision to move to Austin, and he was very patient as my husband and I made multiple trips to see Austin areas and homes. No pressure! We would highly recommend Tim to any friends who might be following us to Austin as their new home!! As we searched online for homes, we happened to "save" homes via ZipRealty and Tim Thornton. After many, many virtual home searches, Tim contacted us via email and asked if we were looking to buy in Austin. Living in Los Angeles, CA, we knew very little to nothing about living in Austin, TX, but the city looked appealing to us. From our first telephone conversation with Tim, we knew we were in good professional hands. He knew Austin, he knew the housing market, the schools, and he knew how to work with out of state clients.Between August 2009 and December 2009, my husband and I visited Austin several times to look at residential areas and specific homes. Tim made himself available to us each visit, with patience and professionalism. As we decided on a brand new home from a renowned builder, Tim did all the negotiations on our behalf. Essentially he said a price that we were comfortable with, and the builder agreed. This was a pretty painless process for us. While we were not his only clients, Tim made us feel like we were. Tim's online blog is also a wonderful resource of information about Austin and the real estate market! We continue to read it even after we've purchased and moved into our home! We highly recommend Tim Thornton as a real estate professional." - Jenny and John R, Steiner Ranch, Buyer/Realtor

"Tim was a big help to us. He is also very knowledgeable, eager to help and friendly." - Buyer

"Tim is an honest and moral agent which is probably why he is so successful even during these tough times for real estate." - Emerson S., Buyer, Austin

"Tim worked very hard for me and with endless patience. He responded quickly any time I wanted to see a home or ask a question. I would be confident to recommend him and ZipRealty to my friends." - Elizabeth B., Buyer

"After working with Tim on this sale and previous dealings he is still in my opinion one of the best, or the best Real Estate Agent in the Austin market." - Lee Smith, Builder/Investor/Seller

"Tim was great. We were very impressed and happy to work with him. He was committed, worked hard and made everything easy." Pat R, Buyer, UT Austin Area

"We enjoyed our experience with Tim for his expertise and professionalism. He was always pleasant and patient and it was a pleasure to know him." Barbara and Fred M., Buyers, River Place

If you need a Realtor ®, I would be honored to assist you in your home purchase, search or selling your Austin area home.

tT

Tim Thornton, Realtor ®
Top Producer 2010, 2009, 2008
Century Club member
Zip Realty, Inc.
Austin, Texas

Austin Real Estate Inventory is Low Low Low! Time to Sell!

2012-01-23T10:27:00.000-08:00

Do you know how low the Austin Real Estate inventory levels are right now? Low. Low. Low. Translation: It's a seller's market and it's time to put your home on the market. Right now.

Let's Talk this week! about what your home is worth where you live!

Here is detailed information on some key communities in Austin where I focus the majority of my time and resources:

Steiner Ranch/River Place/Westminster Glen:

(77) Homes For Sale
(30) Pending contracts
(60) Sold - past 90 days
Estimated 3 months of inventory

Westlake area:

(65) Homes For Sale
(13) Pending contracts
(39) Sold - past 90 days
Estimated 4 months of inventory

Tarrytown area:

(114) Homes For Sale
(39) Pending contracts
(52) Sold - past 90 days
Estimated 4 months of inventory

Cat Mountain/Mount Bonnell:

(14) Homes For Sale
(1) Pending contracts
(10) Sold - past 90 days
Estimated 4 months of inventory

Alandale/North Central Austin:

(81) Homes For Sale
(32) Pending contracts
(58) Sold - past 90 days
Estimated 3 months of inventory

Hyde Park area:

(67) Homes For Sale
(29) Pending contracts
(52) Sold - past 90 days
Estimated 3 months of inventory

Greater NW Austin area:

(206) Homes For Sale
(111) Pending contracts
(237) Sold - past 90 days
Estimated 2 months of inventory

Lakeway/South Lake area:

(430) Homes For Sale
(85) Pending contracts
(147) Sold - past 90 days
Estimated 6 months of inventory

Spiecewood/Westwood High area:

(74) Homes For Sale
(39) Pending contracts
(76) Sold - past 90 days
Estimated 2 months of inventory

Round Rock

(476) Homes For Sale
(176) Pending contracts
(352) Sold - past 90 days
Estimated 3 months of inventory

Cedar Park

(308) Homes For Sale
(107) Pending contracts
(227) Sold - past 90 days
Estimated 3 months of inventory

In which community are you thinking about selling? Let's Talk about the numbers, inventory and pricing in the community where you live!

Happy Chinese New Year!

2012-01-21T22:00:00.000-08:00

Chinese New Year is one of the most important days in the Asian Calendar. Based on the Lunar Calendar, Chinese New Year is a lot like our Thanksgiving tradition--a celebration of family ties and great food. To my family in Taiwan, my friends in Hong Kong, Singapore, China, Thailand and South East Asia and to my friends here in Austin celebrating the Lunar New Year-- I wish you a very Happy New Year!

新年快樂

Choose your Lender Wisely, Austin

2012-01-18T21:00:00.000-08:00

Real Estate lending has gone from sort-of complex to very complicated--during the past few years. It used to be that the rules of lending seemed fairly stable, but now lending has become as dynamic as the property itself. One of my roles as a Realtor is to assist in making the big picture process happen Faster, Better and Easier than you trying to figure out the Austin Real Estate maze alone. The puzzle involves a host of people and businesses--title companies, builders, inspectors, contractors, realtors and of course--mortgage lenders. Although everyone knows how important getting a good loan can be, not everyone realizes that choosing a lender is more than just finding a great rate.

A mortgage lender can have a "make or break" impact on your Real Estate transaction. Most lenders sound similar on the phone and during the initial meeting. The signature meeting. Some may promise you a quick close, verbally guarantee that they never drop a deal and tell you that they have the best rates on the block. But finding a lender that is capable of delivering what they promise may be a different story. It took me years of trial and error to find lenders that I believe are some of the best in the business to recommend to my clients.

Now, the first question that most smart people will ask now is--"Tim, how much money do you make when I use your lender?" Well, first of all, my lender is not my lender. I don't make anything if you choose to work with a lender that I recommend. The laws that govern this behavior dictate that when a supplier on my team is giving me something when I recommend them to you or you to them--must be disclosed to you--the client. So, then why would I recommend a lender if I don't make something from this recommendation? A: Happy Clients. Closed Transactions. You only have to watch a few deals fall apart due to an incompetent lender or supplier who does not understand the business to know that the people on a Realtor's extended team are as important to his business, as his own knowledge and experience. It takes a team of professionals to make it all happen seamlessly.

Choosing a lender that makes big promises and then can not deliver on the schedule--is a problem. Choosing a lender who does not explain fees or POC's or tells you something verbally and fails to put it in writing--is a problem. It may not sound like a big deal at the time, but 4 weeks into the transaction, when it all starts to fall apart, the little details are the things that matter the most in Real Estate transactions. I have seen serial home buyers surprised by their own bank's handling of their new loan--to the point that after the second or third schedule slip the buyers were ready to walk away from the home that they wanted so much to purchase (risking the loss of earnest money, option money and inspection fees)! The frustration of dealing with a bad lender is something that is hard to over come.

When choosing a lender, you shouldn't think that it is only about getting the best possible rate quote. You drive by some great lenders and some not so great lenders every day. When looking for a lender, I recommend that you consider:

1) Verify that your fees are competitive and if you are paying to buy down the rate--find out how much you are paying to buy it down.
2) Make sure you are not paying for anything outside of closing (POC) that make your Good Faith Estimate look more attractive upfront.
3) Find a good rate and lock it while rates are low (you knew that one).
3) Find out if you can get a float down option for the rate.
5) Most importantly, make sure you have recent recommendations from someone you know about the lender that you are choosing. Don't just find someone online that appears to be a good lender or has a good pitch. You will be sorry if you do. And don't think that by choosing your current bank that you have all of this wired. In fact, your current bank may be the last place you should look to get a new mortgage loan. The fact that they are servicing your loan well has nothing to do with what this article is addressing. Nothing at all. Two entirely different processes and people involved.

What makes a good mortgage lender? Great service. Experience. Loads of experience and industry knowledge. Sorry, newbies. Working with a loan counselor who is new to the business is probably not wise at this point in time. It is a difficult and challenging time and in my opinion, not a good season for those just getting started as loan counselors. My #1 preferred lender is one of the top lenders in Austin (actually, I believe she is one of the top lenders in Texas). She is a hard act to follow. If she told me that she wrote the book on lending, I would believe it.

One last bridge to cross in this conversation. When you choose your lender, find out where their team is located. I don't mean the boss and assistant--I mean the decision makers. One of the most important players in the lenders team is the underwriter. If your lender's processors and underwriters are not in the same office--you may have a challenge ahead. And by challenge, what I really mean is that you may be in for the ride of your life. On this ride you should expect to lose some weight, a few teeth and a bit of hair. Yep. You are probably in for a different experience than your last mortgage. When the underwriters are located in a different city and state you should expect a serial process that really does not get started in earnest until about 7-10 days before closing. You may be one week from closing when you hear for the first time "Well, we are going to do everything that we can to make this work...". And expect to start getting drop-dead requests for information that you thought you had already provided. Now, you may get these same requests from any lender these days, but the key difference is timing. A good lender is attempting to be proactive by putting your file in front of the underwriters early on, not during the last week before closing. But when your lender's underwriters are in a different city and report to different bosses, your file will come up when the other 300 files get cleared. Just before closing. It can be a very harrowing process for the buyer.

Choose your lender wisely. It is complicated. It is difficult. And choosing the wrong lender may only result in a small stomach ulcer--if you are lucky. And if you are unlucky, it may result in a failed contract. It happens every day in Austin. It is still probably the biggest reason why contracts do not close today.

If you are ready to start talking to lenders, ready to start looking for your next home in the Austin area, whether it is your first home, second home or your last home--give me a call first. Let's Talk.

The Austin Golfer: River Place Country Club & Golf Course

2012-01-14T18:20:00.000-08:00

The newest feature of Austin Real Estate Secrets is: The Austin Golfer. I will be reviewing and giving you my perspective of some of Austin's best and most talked about Golf Courses, Country Clubs and Golf Communities. And it is no coincidence that the first in this new series will start with River Place Country Club and Golf Course--a prominent and recognized community in Austin--known for great golf, wonderful family living and beautiful homes. What more could a person ask for?

In Austin, we don't normally call it a River--it's Lake Austin, but River Place is the exception to this and many rules. Located on a large tract of the Balcones Canyonlands Preserve on the Colorado River, aka Lake Austin, this stretch of land is arguably where the Texas Hill Country begins. Rolling hills. Running streams. Beautiful trees and a wonderful community built in the middle of natural beauty. And this golf course is one of the crown jewels in this community--taking advantage of all that the area has to offer. Designed by Architect Jay Morrish and Austin's own US Open Champion--Tom Kite.

When you play River Place, there are many pieces of the topography to take in. Deep contours. Elevated and de-elevated greens. Rock walls. Streams. Trees on both sides of the fairway. Small "ponds". Well groomed sand traps. Beautifully cultivated greens. Even at this writing, in the dead of winter, the greens are rich and groomed as if it is summer outside. Just incredible.

On most tees boxes you will not be able to see the flag stick from the tee box. It is a challenge the first couple of times you go out. And if you run into the Head PGA Pro, Chris de Keratry, on your way out, you will get one word of advise: "Lay up." It's good advise. Take it and run. This is a course full of surprises and adventure each time you load up your sticks.

River Place is fortunate to have one of Austin's best PGA professionals on staff. The Head Golf Pro, Chris De Keratry, is one of the brightest and best that you will find. A student of the Hank Haney School of Golf, I can personally testify that Chris is one of the best teachers in the business. (Confession time). I have taken lessons from lots of great golfers, but Chris is more than a great golfer--Chris is a great golf instructor. He understands how to teach a sport that requires the brain to execute a very complex set of hand-to-eye-to-brain events all at one time. Many golfer can make the difficult look simple, but Chris makes the difficult feel simple and understandable. He is truly gifted and a nice guy on top of it all.

Exercise. My doctor told me a few years ago that I needed to exercise more. "Does golf count?"--"Yes, if you are walking--not ridding." Well, my MD has never played this golf course. This is the Texas Hill Country. Take a cart and live to play another day. There is enough exercise involved in this course even when you are ridding. And you will love every minutes of it. (Click on photos for a bigger image and better view!).

Of course, River Place is not just a wonderful golf course and country club. River Place is one of North West Austin's finest master planned communities. When you walk the golf course you are surrounded by beautiful custom homes. On the peak of the hills--looking down onto the golf course. And in the valley along side of the course. Nicely framed outside of the line of a stray ball, but ever present reminders of families who live and love River Place. Homes in River Place range from the low ~$300's to $MM homes and Lake Austin water front property on Big View Drive. A community, not defined by it's homes, but by its neighbors.

If you are interested in finding out more about this community, homes in River Place or you would like for me to personally introduce you to the good folks of River Place Country Club, give me a call. Let's Talk.

How Low is Too Low? Bidding Austin Real Estate

2012-01-08T11:57:00.000-08:00

As an Austin Investor, home owner and Austin Area Realtor--I sometimes see the best and the worst of decision making concerning how to bid Austin Real Estate. The assumption that only a low-ball offer is a good offer is a perspective that lands many buyers in a place where they did not expect they would end up. Getting to the end of the home buying process and not being able to get the house that you want is a terrible feeling.

Some buyers go into the buying process with the perspective "If we get it--fine. If we don't--fine." That is a healthy perspective if the house is priced above market value and your bid is at market value. But what happens when you really want a house and the numbers say that the new listing price is at market value? What if the house is a real keeper? What if this is a property that you really would like to own? What do you do?

The temptation is to try to eek out another two or three percent on the deal. Bid it below the listing price and expect a counter offer or possibly an acceptance--if you are lucky. And this approach can be both useful and valid--if you are bidding alone. No one on the horizon but you. No potential prospects. But here is where the rub causes problems. Inventory in Austin is low. Buyer activity is high for such low inventory. Buyers and Investors are both out looking at houses every day right now in Austin. For every home that you see and liked today, there are probably two or three other buyers who are also looking at it or maybe they saw it last night and they are signing offers right now while you are considering how low you can possibly get the deal down. I see this play out every day.

Here is the part where I will confess my short-comings. During the past quarter I have lost more than 4 major deals with clients and personal investment opportunities. Big dollars. Way more lost bids than I have seen during the past 2-3 years. Why? Because I bid too low, or I was not able to paint a vivid enough picture for my clients of just how aggressive buyers are acting right now--and they bid too low for this current market. Buyers are buying homes and buyers are paying for them. Yes, there are still some low priced communities where you can buy a house at a bargain price, but you will pay market value for that community. Market value in most communities in Austin is going up now (over the past 2 years)--not down. It's about risk and reward--just like the stock market. The smaller the risk of the community, the more robust and solid the comps. The higher the risk of the community, the more bargains you may find laying on the ground. As they say "You get what you pay for...".

So, how low can you bid? Here is my rule of common real estate logic: If you were the seller--would you sell? Would you take a loss? Is inventory low and buyer activity high in the area? Are others looking at the house now? If you put yourself in the seller's shoes, would you take an offer below market value on a house that shows well, is getting good showing activity and getting calls of interest or potential offers? If your "Seller's Shoes" tell you that you probably would not consider your offer, your "Buyer's Shoes" should probably reconsider your offer price. That's how low you should go.

Let's Talk.

The Austin Golfer

2012-01-05T02:00:00.000-08:00

Austin has some amazing Golf history--possibly the most famous of which may be the story of Harvey Penick. You don't have to tell a golfer who Harvey Penick was--probably the most famous golf coach of the past century and considered by many to be the father of golf instruction. What you may not know about Harvey Penick is that he started his golf career here in Austin--as a caddy at Hancock Golf Course in Austin. Yep. That's where this amazing story starts--at Central Texas' first golf course. Penick went on to be the Coach of the UT Golf Team and the Head Golf Professional at The Austin Country Club. But in the end, Harvey Penick will best be remembered as the Father of Golf Instruction--with his Little Red Book of golf instruction. Mr. Penick also mentored two Austin PGA Golf legends: Ben Crenshaw and Tom Kite--who later honored Mr. Penick by opening the Harvey Penick Golf training Course for students in the Austin area, also known as Austin's First Tee. The course was designed for "students" of all ages and it is one of the best short game courses you will find. But these two were not the only PGA Golf professionals who Penick coached. In fact, Harvey Penick's students account for over 200 tour titles and the honor role includes names such as Ed White, Betty Jameson, Morris Williams Jr., Betsy Rawls, Mickey Wright, Kathy Whitworth, and Sandra Palmer. A legacy of greatness. Bestowed on many.

If you are are looking for golf--Wow! Austin has golf. Regardless of your level of play, up to and including the make-ready courses for the amateur tour, you can find plenty of places to get your cleats dirty in Austin. Over 30 public and semi-private courses, plus 15 wonderful private club courses.

Public Semi-Private
Avery Ranch	10500 Avery Club Dr	Austin
Blackhawk	2714 Kelly Ln	Pflugerville
Bluebonnet Hills	9100 Decker Lane	Austin
Butler Park P+P	201 Lee-Barton Dr	Austin
ColoVista CC	100 Country Club Dr	Bastrop
Falconhead	15201 Falconhead	Austin
Forest Creek	99 Twin Ridge Pkwy	Round Rock
Golf at Circle C	7401 Texas 45	Austin
Golf at Crystal Falls	3400 Crystal Falls	Leander
Golf at Star Ranch	2500 FM 685	Hutto
Harvey Penick	5501 Ed Bluestein	Austin
Highland Lakes	20552 Highland Lake	Lago Vista
Hills of Lago Vista	8116 Chestnut Cove	Lago Vista
Kurth-Landrum	Southwestern Univ.	Georgetown
Lago Vista	4616 Rimrock Dr	Lago Vista
Legacy Hills	301 Del Webb Blvd	Georgetown
Live Oaks	Lakeway Blvd	Lakeway
Lost Pines	Loop 150 + TX 21	Bastrop
Mustang Creek	1100 Beech St	Taylor
Pine Forest	636 Riverside Dr	Bastrop
Plum Creek	750 Kohler's Crossing	Kyle
Point Venture	422 Venture Blvd S	Point Venture
Riverside Golf	1020 Grove Blvd	Austin
Shadow Glen	U.S. 290 + Manor Rd	Manor
Teravista	4333 Teravista Club	Round Rock
White Wing	151 Dove Hollow Trl	Georgetown
Yaupon	Lakeway Blvd	Lakeway

Austin Municipal Courses:
Hancock Park	811 East 51st St	Austin
Jimmy Clay	5400 Jimmy Clay Dr	Austin
Lions Municipal	2901 Enfield Rd	Austin
Morris Williams	4300 Manor Rd	Austin
Roy Kizer	5400 Jimmy Clay Dr	Austin

Private/Resort Courses:
Austin CC	4408 Long Champ Dr	Austin
Balcones CC	8600 Balcones Club	Austin
Barton Creek Resort	8212 Barton Club Dr	Austin
Berry Creek CC	30500 Berry Creek Dr	Georgetown
Cimarron Hills CC	102 West Morrow	Georgetown
Flintrock Falls	401 Jack Nicklaus Dr	Lakeway
Georgetown CC	1500 Country Club	Georgetown
Great Hills CC	5914 Lost Horizon Dr	Austin
The Hills CC	26 Club Estates Pkwy	Lakeway
Lost Creek CC	2612 Lost Creek Blvd	Austin
Onion Creek CC	2510 Onion Creek Pk	Austin
*River Place CC	4207 River Place Bld	Austin
Spanish Oaks	13001 Spanish Oaks	Bee Cave
Twin Creeks CC	3201 Twin Creeks	Austin
University of Texas	4232 N. Quinlan Park	Austin

Austin Real Estate Review 2011 -- Market Stats for 2011

2012-01-01T15:14:00.000-08:00

Austin Real Estate turned in a pretty admirable performance in 2011. In spite of the doom and gloom reported on the national news almost every day--the Austin market has been resilient and a bell-weather of things we hope to come.

While we have stopped trying to compare the Real Estate markets to the peak years of 2006-2007, the Greater Austin area has a great deal to be thankful for and continues to be the envy of most major markets in jobs, business growth, economy, standard of living and Real Estate performance.

Here is a snapshot of the 2011 market stats and comparisons to *2010:

20,579 total home sold -- 4.5% increase over 2010
18,639 were single family (SF) homes -- 5% increase over 2010
Median home in Travis County listed for ~ $235,000; sold for ~$228,000
Median home in Greater Austin listed for ~ $200,000; sold for ~$195,000

The SF median ppsf in Travis County was $115 psf
The SF median ppsf in Greater Austin was $ 97 psf
Percentage SF foreclosures: 15%
Price point hit hardest by Foreclosure: Under $150k -- 71%

Inventory and consumption:
6,365 SF homes Available today
Closed contracts during past 6 months: 9,314
Add 80% Pending contracts to close: 1,766 x .8 = 1,412
9314 + 1412 = 10,726 / 6 = 1,787 homes per month
Currently, we have approx 3.5 - 4 months of inventory
Conclusion: We are in a Seller's Weighted Market

Luxury Market Sales:
$400k: 2,632 homes -- 7% increase over 2010
Premium Luxury Market Sales:
$1M: 299 homes -- 24% increase over 2010
The most expensive home sold for $7.25M

In Summary:

The Austin market continues to be quite healthy compared to much of the national Real Estate market and doing well compared to the previous 2 years. Home values are flat to up slightly in many communities. One of the biggest increases we have seen is in the luxury and premium luxury home market sales. We have seen some Foreclosure activity in certain areas of Greater Austin, but in general, bank owned properties have been mostly localized to specific communities. We have also seen a return of investors from both inside and outside the Austin area. Sustained low interest rates have driven home owners and investors alike to the closing table during the peak summer months and buyers put in a very strong close of the year in Q4.

Austin continues to be the nation's darling child for Real Estate and job growth. With such a strong finish to 2011 and the prediction of increased interest rates in the coming quarters of the new year--2012 looks like we may be in for more of the same. More growth. More sales. More people moving into the area. More consumer confidence. More smiles on the faces of Austin home owners--new and old. The one thing that we can not count on in the coming months with any certainty is ongoing low interest rates. No one knows for sure when rates will stop bouncing and correct to natural levels, but most analysts seem to be sure that day is in our present future.

If you are planning to BUY or SELL Real Estate in the Greater Austin Area in 2012--Let's Talk.

*These numbers change on a daily basis as Austin area Realtor back-date sold information, add new listings, new contracts are written, etc. Like all statistics, these numbers should be considered directionally correct, and have no absolute validity (they are statistics--not houses). Please use these numbers and all statistics with caution and care. Do not use any statistics as your first, last or only reason to enter or exit a given market. Numbers are just numbers. Consult your Austin area Realtor (me) to discuss your specific opportunities and challenges.

The Events of 2011 that Hit closest to Home in Austin

2011-12-28T14:28:00.000-08:00

2011 has been a year to remember--on many fronts. Weather. New Industries. Sports. Politics. Business and yes, for Real Estate as well. Here is my brief recap of our year in Austin, Texas.

Here are the links and the events that hit closest to home here in Austin:

2012 promises to be an even bigger year for Austin growth, entertainment, jobs and Real Estate. Let's Talk about your Real Estate needs.

Houses Selling Fast! First Week on the Market!

2011-12-22T01:10:00.000-08:00

Have you ever been to the animal park at feeding time and watched as the animal trainers throw a large hunk of meat to the tiger? The tiger pounces on the food and devours it! There is no question about it--it is his. Now put two or three hungry tigers in together at the end of the day and add fresh meat to the picture and you have a full on competition. Well, you guessed it, that is happening in Austin Real Estate. No kidding. We are seeing this again right now. Here is how it impacts you.

When you are reading Austin Real Estate Updates and you see the stat for Days on Market (DOM), this is usually either an average or a median number for all properties, but median numbers don't tell the whole story. This does not mean that most houses sit on the market for 60-70 days. Median numbers are only a mid point of the stats--what about the houses that look great and are priced right on day one? How fast are they selling? Glad you asked!

In Austin right now, here are the numbers*:

Starting with 1,953 homes that currently under contract to close
From these homes:
37 went under contract in less than 24 hours on the market!
99 went under contract during the FIRST 3 DAYS!
221 went under contract during the FIRST week!
397 went under contract during the first TWO weeks
513 during the first three weeks
648 during the first month

So, when you see a house online, even a house that has been on the market for a week or two, that house may already be in contract negotiations--often as early as the first few days or hours on the market! Don't wait or hesitate--if it looks good to you, it will probably look good to other buyers as well.

If you see a house that strikes your interest, give me a call. Let's Talk. (More importantly, let's go see it! Fast).

*Numbers in Austin Real Estate change daily. The numbers were real at the time of the writing, but these numbers for pending contracts change daily as contract close and new contracts are written.

Links to City of Austin, Round Rock, Cedar Park...Greater Austin

2011-12-20T02:00:00.000-08:00

The City of Austin has just started testing its newest web site look and feel--check it out!

If you want to get to know the Greater Austin area a little better or want to learn a little more about a particular metro in in the Greater Austin area--check out the links below. If you can't find what you are looking for--give me a call. It may be one of those things that requires a discussion--not just online jibber jabber. Let's Talk.

Happy Hanukkah

2011-12-19T12:08:00.000-08:00

Dec. 20th marks the beginning of the Jewish Festival of Lights--

Happy Hanukkah, my friends.

Temple Beth Shalom Celebrations.

Favorite holiday foods from Le Cordon Bleu.

Austin area events Celebrating Hanukkah.

Austin is all about High Tech, Social Media and Innovation!

2011-12-16T17:50:00.000-08:00

Austin is changing quickly and becoming a target city for new venture capitol dollars and growing industries--of recent note are the new Formula One (F1) Racing venue and the emerging home of Social Media and Software development. Austin has always been known as a hot bed of high tech innovation and live music entertainment, but the new Austin is breaking the mold and surprising many people for what lies ahead.

Some of the technology industry's largest companies have ten's of thousands of their brightest and best paid brain-trusts in the Austin area. IBM. Intel. Dell. AMD. Microsoft. Samsung. Motorola. HP. Sun MicroSystems. 3M. Apple. Many of these companies are based here or have some of their most critical intellectual assets in the Austin area--employing thousands of engineers, sales and marketing professionals. And the new wave of high tech professionals that are moving to Texas and calling Austin home are in the growing and emerging software worlds of Social Media and software development.

In case you haven't kept up with some of the social media giants who have set up shop in Austin of late--let me just name a few: Paypal, Google, FaceBook, LegalZoom, 44 Doors, FG Squared, Spiceworks, and many other social media and software developers. Some say that Austin feels like the San Fransisco Bay Area of the early 90's. In fact, the Social Media Business Council has moved its HQ office to Austin! This organization includes more than 100 prominent companies and brands such as: Coke, McDonalds, Target, Adobe, Microsoft, Toyota, UPS, Yahoo, Shell, Home Depot, EMC, Sabre and many other house hold names.

Austin is no stranger to innovation in software development. In fact, our patron saint to gaming software development, Richard Garriott, started his businesses in Austin and he still lives here today. Mr. Garriott is arguably one of the founders and developers of an entire software industry. Truly a giant in the field (And if you are interested--Mr. Garriott's previous home is currently for sale...).

Another little know fact, Twitter emerged on the national social media radar here in Austin at the SXSW in 2007. Before Austin, very few people knew for sure why they would want to use this little social media tool--and look at where that little launch campaign took them...

If you are still wondering if Austin is a good bet--wonder no more. The train is leaving the station. Time to jump on board. tT

Steiner Ranch Real Estate Market Update: Nov. 2011

2011-12-07T12:00:00.000-08:00

Whether you are a Buyer or a Seller in Steiner Ranch today, the market is showing positive trends in your favor. The past couple of years in Steiner have been a little flat, if not a little down, but this year is proving that Steiner is on the rebound--and frankly, I am not surprised. When the market is going up, both buyer and seller enjoy the privileges of the Steiner life style and home ownership.

Steiner Ranch is one of Austin's premier master planned communities. Steiner has something to offer to every potential home owner:

Great lake access (Lake Austin and Lake Travis)
Outstanding schools--located in the community
The best combination of amenities of any Austin area community

Pools, tennis courts, play grounds, soccer fields, baseball fields through out the community and private access to Lake Austin boat launch, dock and pavilion for all residents. And then there is the preserve--grand views and over 18 miles of hike and bike trails to round out a active Austin life-style.

UT Golf course
Gated and Open communities from $200's to $3M
A great community, great neighbors, and much to offer!

Now to the numbers:

Sold during the previous 90 day rolling quarter (Sept, Oct., Nov) 2011:

67* homes sold between Sept. 1st and Nov. 30th
Median sold price: $396,000
Median days on market: 43 days
Most expensive home sold: $860,000
Homes sold during same period in 2010: 65
2011 over 2010--some positive indicators emerging:
Almost $50,000 increase in 2011 median home values
Median homes sold 11 days faster in 2011
PPSF is going up slow and steady, about $4-5 psf higher in 2011
Consumption rate puts inventory levels at just under 4 months

Active Listings:

Currently active listings: 80 homes

That's approximately 4 months of inventory
Inventory levels favor the seller currently--A Seller's Market

Current homes under contract: 31
Median home list price: $477,400
Median home features: 3514 sf, 4 Bedrooms, 3 baths
Median Days on Market for Active Homes: 82 days
Median Days on Market for Pending Contracts: 55 days

Homes that are priced right and show well are going under contract faster than homes still on the market
In this market, Sellers are not seriously considering low-ball offers on homes that show well and homes that are priced to market
Too Low offer prices are being considered as non-serious buyers
Inventory is low and homes are still selling during "off season"

Note: Having a Seller's Market does not mean that Seller's can have their way and sell homes above market value, but it does mean that given low inventory levels, buyers are going to move faster to buy homes that show well and are priced to market. It also means that buyers are much more likely to get into bidding contests over the homes that they really like and homes are more likely to sell at or near their listing price. Lastly, in a market that is bent toward the seller, buyers find that desirable houses come-on and go-off of the market at a much faster and unpredictable pace. Here today, gone tonight.

If you are considering buying a home in Steiner Ranch or Selling your home in Steiner--please do give me a call so we can discuss your Real Estate needs.

Let's Talk.

Homeless and Cold in Austin

2011-12-06T16:07:00.000-08:00

If you had to choose a city to end up being homeless, I suppose there are worse places to be tonight. We are fortunate in Austin because of our strong economy and mild climate, and our homeless population is smaller than many cities--but it has grown over the past couple of years.

This time of year as the freezing cold weather has made it's way to our area, most of us are busy covering our hose bibs and outdoor plants, while some of our neighbors are concerned about a much more fundamental need--keeping warm and eating.

Join me and my friends this year by giving a very small gift to folks in need in the Austin area. If you don't have a charity that you support, consider this humble organization--Mobile Loaves and Fishes. Mobile Loaves was founded here in Austin and has a very simple mission--Feed and Clothe Austin's homeless.

A pair of clean, white, warm tube socks and a winter cap can bring great delight to the face and heart of a person living on our streets. A simple gift, that will warm your heart.

Mobile Loaves & Fishes, Inc.
903 South Capital of Texas Highway
Austin, Texas 78746

Recently Sold Homes In My Area -- How much did they sell for?

2011-12-05T08:32:00.000-08:00

Q: How do I find out how much the recently sold homes in my area sold for?

A: It is a very common question and the answer may depend on where you live. In Austin, and in all Texas cities, the only correct answer to this question is from your local Realtor.

Q: But several web sites show "sold" data and comparable home values. Isn't this sold data and true market comp data?

A: No. Not for Texas. It is not market value based on sold data. Texas is a Non-Disclosure state, so MLS sold data is not public information and it is not published to the taxing authorities either. The only way the county taxing authorities can get sold home data is if the home owner volunteers this information upon request or upon dispute of tax value. So, there are some specific properties where the county has real sold data, but most of their information is based on a spread sheet analysis of home size compared to other homes in the zip code.

Q: When will the county come in and appraise my home?

A: Never. Your local county only has a few appraisers who cover for thousands of homes. These people mostly sit in front of a computer--"assessing home values". Unlike the Appraisers who works for banks and came out to your home when you bought it, examined your home, measured it, took pictures of it and compare it to other homes that were sold in the community during the past 6 months--the job of the county appraisal districts is to create a spread sheet analysis of homes in the area and generate revenue for local taxing entities.

Q: Does the county have Appraisers on staff to do individual and personal appraisals?

A: The sheer numbers of Appraisers that would be needed to do personal appraisals for an area like Austin where over 21,000 homes a year sell, would be off the chart compared to the few appraisers that are actually on staff. There are approximately 75 homes a day that close in Greater Austin. It would probably take at least that many Individuals to cover for all of the counties business alone.

Q: What does that mean about the accuracy of information for the "tax value" of a home vs the "market value" of a home?

A: It means that these are two different kinds of information and generally speaking--they are unrelated information, at least for Texas. Market Value is what a buyer is willing to pay and a seller is willing to sell for--a given home, of a given size, age, condition, location and features. Tax Value is what the taxing authority has determined to be the tax value that a home owner will pay in local taxes. The home owner may or may not agree with the taxing value of their home.

Two big take-aways to consider here:

1. All Real Estate markets are local and different. Ask your Realtor how it works in your state and city. Don't assume that it is the same in your area.

2. When you are buying a home--employ a Realtor. It is free* to you as a Buyer to have a Realtor represent you and for such a big and important purchase--why wouldn't you want the best possible representation in your corner.

If you are looking for a home in the Greater Austin Area, give me a call. Let's Talk.

(*I suppose there may be some exceptions to this rule, but I can't tell you off of the top of my head what they would be; generally speaking, the Buyer's Agent fees are paid for by the seller, not the buyer--so, why wouldn't you hire a Realtor? It is already paid for).

"Low Ball" Offer in a Seller's Market

2011-12-03T16:12:00.000-08:00

In light of the past 2 years of national Real Estate news, the phrase "Seller's Market" may seem out of place to many of us. Understanding how to respond to and win in a market that is leaning toward the seller's advantage is important to both Buyer and the Seller. Having a Seller's Market does not mean that Seller's can have their way and sell homes above market value, but it does mean that given low inventory levels, buyers are going to move faster to buy homes that show well and are priced to market. It also means that buyers are much more likely to get into bidding contests over the homes that they really like and homes are more likely to sell at or near their listing price. Lastly, in a market that is bent toward the seller, buyers find that desirable houses come-on and go-off of the market at a much faster and unpredictable pace. Here today, gone tonight.

A Seller's Market is usually defined by inventory levels being below approximately 5 months. That means, in this market if no additional homes are put up for sale, every home that is currently for sale should be sold in 5 months. Of course, the inventory of homes is constantly changing. New homes are being listed and existing homes are selling--so some of today's homes will sell fast and some will not sell at all. If it's a Seller's Market--wouldn't all the homes sell? No. Not if they are not priced to market and show well to their comparable market value. But the homes that do show well and are priced right, tend to sell much faster than the annual trends for days on market (DOM).

So, how do Buyer's take advantage of a Seller's Market? Buyer's who are serious about buying during a Seller's Market must be ready to look aggressively during the week at homes that meet their needs and when they find a home that they connect with--you can't hesitate. Be ready to make an offer before you find the house, so when you find it--you are ready. If it looks right. Feels right. Smells right. Make an offer immediately. The same day if you can. Every hour that you wait to make an offer is an hour that another buyer who saw the home earlier in the day may be negotiating an offer on the same home and beating you to the draw. You may think "Well, if it is meant to be--it will happen." Maybe. But I have seen many buyers express this same sentiment regarding an offer that they missed or under-bid and then for months afterwards regret that they did not get that particular house. Never finding another house that they connected with as much as they did that one. It is the hardest and worst part of my profession. Seeing a buyer regret not getting the home that they really wanted.

The second mistake that Buyers can avoid is presenting an offer that is too low when they know that there are multiple buyers interested in a very interesting property. This is very hard because all we have heard on the news for the past 2 years is how hammered the Real Estate market has been. But when you are looking at a local market that is doing well, is growing, appreciating and has low inventory of well presented homes--you can not expect to make "low ball" or bargain deals. The truth is, a bargain is getting a great home that you love and you connect with emotionally. Paying market value on a home in a market that is going up is not a bad thing. If you wanted to buy cheap Real Estate, let your Realtor know. We all know those communities and those areas--but then you must realize you are buying a home in a much higher risk area. As long as you are willing to take the risks, you can still buy discounted properties.

Real Estate is a business of risks and rewards. Just like the stock market. The low risk investments cost more than the high risk investments. If you are an investor in the game of high risk investments--I have areas in town that we can talk about. If you prefer to invest in areas where the communities are well established and known, just remember that you always pay for what you get.

If you are considering a new home in the Greater Austin-Round Rock MSA, give me a call. Let's Talk.

November Real Estate Market Update for Austin, Texas

2011-11-30T12:11:00.000-08:00

If you are looking for a home in the Greater Austin/Round Rock MSA area--here is what is happening in our Real Estate market, November 2011. If you are new to the Austin area, you may be shocked at how well our market continues to perform compared to many parts of the nation. Note, this data is looking at a 90 day rolling quarter, Single Family Homes, Condos and Townhouses, across the Greater Austin area MLS.

Sold during the past 90 days:

4,407* homes have sold
Median sold price: $189,000
Median days on market: 54 days
Most expensive home sold: $4.26M
Homes sold during same period in 2010: 4,037
2011 over 2010--better than 9% increase in 90 day sales volume
Median home price for both years within $1,000 difference
Sellers are pricing closer to market value and homes are selling with less discounting in 2011 than 2010; home prices appear stable

The 2011 year-to-date (YTD) thru Nov. 30, 2011*:

Currently active listings: 8,510 homes
Current homes under contract: 2,416
Median home list price: $216,325
Median price per square foot: $108 ppsf
Median home features: 2,057 sf, 3 Bedrooms, 2 baths
The median Days on Market YTD: 80 days
Homes sold YTD: 18,887

That is 1,717* sold per month--compared to 1,649 per month last YTD
If you include pending contracts: 1,936 "sold" per month
Inventory is just less than 5 months
A slightly favored Seller's market
In this market, Sellers are not seriously considering low-ball offers on homes that show well and homes that are priced to market; low ball offers are being considered non-serious buyers.
Inventory is low and homes are still selling during "off season"

90 day Stats in Travis County:

Homes sold in Travis County: 2,434
Median sold value: $210,175
Median DOM: 51 days on market
Median size: 1,858 sf
Median ppsf: $ 116 psf
SOLD Price as a % of active list price: 97.1%

90 day Stats in Williamson County:

Homes sold in Williamson County:1,306
Median sold value: $175,000
Median DOM: 53 days on market
Median size: 2,043 sf
Median ppsf: $ 88 psf
SOLD Price as a % of list price: 97.5%

Summary:

2011 is shaping up to be a stronger year for sales volume than recent years (as predicted) and prices are stable over-all. Homes are selling fairly close to their listing price after typically going through at least one small price adjustment. We are seeing price appreciation in select areas and some price declines in select areas where foreclosures have been localized and prominent.

We have entered a clearly favored seller's market now where inventory is comparably low and buyers are starting to enter multiple bids again. Low ball offers have never been popular in the Austin market, and are increasing ignored by sellers--who often choose not respond to such offers at all now...including bank owned properties.

While much of the nation is still not sure if they have reached the bottom of the Real Estate market or not, Austin remains fairly flat to slightly gaining in home values. In the words of Dr. Jim Gaines, Research Economist at The Real Estate Center at Texas AandM University "Flat is the new up!" (Click for lnterview Link with Dr. Gaines).

*Note: This data is subject to change as new data and information comes into the MLS daily.

Do Realtors Share their Secrets?

2011-11-29T12:04:00.000-08:00

Information is available today from a vast number of places, but unfortunately not all information is created equally. It used to be that buyers and sellers went to Realtors and had to trust what ever they were told. Today, any person with a computer and internet access, regardless of experience, knowledge or understanding of what the data might mean can find and/or publish information that appears credible and valuable. In fact, we almost have too much information these days. Run a search on any topic and you will find thousands of pages of information. Finding information is easy--but sorting through it to determine what is good for consumption may be another story. So, the question is: Do Realtors and Realtor Blogger tell us everything that they know? or Do Realtors have untold secrets?

Well, the simple truth is, I could blog all day long, every day, and still not be capable of addressing every question or every important detail of information that would be required to do my job well. Every transaction, every seller, every buyer, every contract, agent engagement, and situation is unique. Like any profession--Practicing Real Estate is more than a collection of "boiler plate" events that are the same each time you go through the motions. Rote process and practice helps an experienced Realtor get from home definition to home discovery, and from contract to close, but the details of each transaction is unique each and every time.

Do Realtors share all of their secrets? No. At least not on one blog site, in one sitting or all the things that one would need to know to get from the beginning of a deal to the end of a deal successfully. There are too many last minute left turns in every transaction to anticipate or guide a buyer through without first hand preview to what is happening. Only a practitioner just getting started in the business would be able to tell you all that they know at one time--and that may not be very helpful. In the end, the difference between reading information about what to do for a living and doing what you do for a living, are usually two different things. Two really different things. Realtors may not be trying to keep secrets--but if every situation is unique, it just sometimes happens naturally.

Call me. I will be happy to share my secrets with you.

Let's Talk. tT

Changing the Locks on your Investment Property

2011-11-27T17:55:00.000-08:00

Being a landlord comes with a host of responsibilities and the first thing that every landlord has to do for new tenants is to change out the old locks with new locks. This is true for new properties that you have just acquired, true when you have a new tenant, and of course, when you buy a new home to live in you need new locks as well.

There are a variety of ways to change locks for new resident tenants--such has having a series of locks that are rotated out from property to property, hire a locksmith to change the locks or you can do what I do--reset the locks to new keys yourself. No special training required and all three doors on your rental property can be reset in a matter of minutes to one new key. The only special equipment required is the lock itself.

There are a couple of lock manufacturers these days who manufacture self "re-keying" technology that turn your inventory of different keys into an inventory of locks. Here is how it works:

You install new locks with this re-keying feature on your investment property doors. Front, back and interior garage/utility doors.
Next, you select a key from one of the locks that you want to use with your next tenant. Label it A or 1A for easy reference.
Label or number all your new keys that are different from key 1A and store them for future use.
Next you are going to follow the simple directions that come with the locks to re-key the locks. The procedures include inserting a smart tool into the lock face along with the original key that opens the lock. Once the lock recognizes the original key, you can insert a new key into the lock to change the lock to the new key.
Repeat the re-keying procedure with each of the locks, drink a glass of cold tea and you are finished. No need for a lock smith. No need to replace or rotate locks out on the doors with each new tenant. No problems.

One manufacturer of this kind of locking system is Kwikset--a name well know in the lock manufacturing market place. Head down to your local hardware store and check it out. Just another little thing that you can do on your own to save time and money in managing your own rental property.

ZB7P7RNTN4YE

Four Reason why Short Sales Fail

2011-11-19T16:29:00.000-08:00

If you read my blog often, you know that I have done enough short sale business to know that this is among the highest risk "opportunities" in the business. Short Sales are generally a place for people that don't have to have a house for the next ~4 to 6 months--which is why investors are ideal candidates for short sales. Investors can afford to wait a very long time on a bank response and if they do not get one deal, they are off buying another homes elsewhere. For the average buyer who is trying to find a home to live during the next 3-4 months or within a defined period of time, this is not the right lake in which to fish. These fish just don't bite very often.

There are four major reasons why short sales fail more than they succeed. The Lender. The Listing Agent. The Seller. And The Buyer. Any one of these four sides of the deal can cause the deal to fall apart or be doomed from the start.

The Lender. I have written extensively on why a short sale is almost never in the bank's best interest or focus. Banks do not want to do short sales. This is very low on the mortgage holders list of priorities to write a check to cover a short fall in equity on a home. (Click here for more details on Banks and Short Sales). Bottom line: this is the first big hurdle to clear and it is more complicated than most buyers, sellers or Realtors realize.

The Listing Agent. The agent listing a property can be a major weak link if they come to the short sale process with no more experience or process than a two hour class in short sales and the thought that this is just like any other real estate transaction. If the agent does not have a team to manage and expedite weekly communications with the bank and does not know exactly how to present the numbers and the financial package to the bank--it is most likely doomed from the start. I had a short sale agent recently tell me (before I showed his listing) that his seller was talking to the bank (his seller was talking to the bank) and the agent believed that short sales were simply a matter of giving the bank 81% of the listing value and the bank was good to go. Let me tell you now that you can not manage a real estate business based on myth and assumption. The very idea that there is some kind of universal magical percentage that banks will accept on a short sale or foreclosure is just plain silly and a myth. The bank is a business and property is an asset with real financials attached to it. There are no secret percentages the unlock deals by knowing the secret 81% hand shake. These myths have no validity in the real business world.

The seller. One thing that many people don't realize is that many sellers will walk away from a short sale before the bank responds to an offer (which can take many, many months). Often times the seller is going through a host of other problems, may be looking for a job, and may be concerned about many financial issues. The prospect of foreclosing may actually come as a relief at times, rather than waiting another undetermined number of months to hear from the bank on a short sale offer. The first few months with no word are painful, but tolerable. But after 4-6 months of waiting many sellers will often give up.

The buyer. Like the seller, buyers are often willing to wait 3 or 4 weeks to hear back on a short sale offer, but many buyers lose faith, patience or the ability to continue to hold on after 6 weeks...8 weeks...12 weeks...16 weeks or what can easily turn into a 6 month process. With such a long and undefined timeline from beginning to end, investors with long term horizons are best suited to wait many many months required to hear if the bank has accepted, rejected or countered on the original offer. It is a game of extreme patience for all involved.

Short Sales are filled with uncertainty. The number of places where a short sale can unwind are many. Keeping everyone in the game over the duration of the process takes a team of professionals and very tenacious clients on both sides of the transaction. If anyone goes to sleep or turns away, the lights go out on the deal. Getting to the end of a short sale is a much harder journey than any buyer or seller realizes going into this kind of transaction.