Ryan France, Your Realtor in Austin TX & Guide to Better Austin Living

Better Austin Living Newsletter: April 2012

ryanfrance — Fri, 27 Apr 2012 14:42:02 +0000

The April edition of the Better Austin Living Newsletter went out this week along with cover letter with pictures. I’ve gotten into the habit of putting out a reader’s digest version highlighting a few things that have happening on the personal side. Though, its not something that I do every month, much to the chagrin of my wife. She always asks me if Im going to do a “picture one” this time because thats what ‘the people’ like. So, I put together a simple “picture one” as my cover letter this month.

Inside the actual newsletter edition, I have some good stuff – not the dry, boring content that you might find in other real estate newsletters (my opinion). Mostly because this newsletter is not a real estate newsletter in the true sense of the word. I did put out a real estate focused newsletter last month and that can be found at www.EyeOnAustinRealEstate.com. The Better Austin Living Newsletter is more of a lifestyle newsletter: a fun and entertaining way for me to share some anecdotes of things Ive been working on, read or learned recently.

Articles in this issue include: 20 Hours that You May be Wasting Every Month, What to Do in a Car Wreck, My Personal Challenge to Give Something Away Every Day During the Month of March, Gmail: Tips and Tricks, How to Increase Your Productivity by 50%, From My Nightstand and A Clean Sweep for the Spring. Click on this link to download (or share) an electronic copy of the newsletter (pdf).

As always, if you do not receive a copy of the Better Austin Living Newsletter in the mail and you wish to be included in the monthly mailing, fill out the brief form at the bottom of this page.

Remember - this newsletter is a fantastic and simple way to introduce me to your friends and family. I greatly appreciate your referrals. If you don’t have the print (mailed) version handy, fear not, you can always pass along the electronic version (pdf) with the click of a button. I’m sure your contacts will enjoy reading the articles and get as much out of it as you do. Thanks for not keeping me a secret.

You Shouldnt Buy a House If . . .

ryanfrance — Wed, 18 Apr 2012 14:21:52 +0000

5 Reasons Why Home Ownership Might Not Be Right for You.

You’ve heard it many times I’m sure – things like, “owning a home is a big part of living the American Dream.” As a Realtor, you’d think that I’d be of the opinion that everyone should own a house but the fact of the matter is that homeownership is not for everyone. Here are some when I believe owning a home is not the wisest decision.

You Don’t Know Where you Are Going to Be in 3-5 Years

If you don’t know where you are going to be in the next 3-5 years then it probably doesn’t make sense for you to buy a house. Why? Two reasons. First off, owning a home is the epitome of putting down roots. If you know you aren’t going to be in the same place in the next couple of years, the burden (financial and emotional) of having a home that you must do something with before you can move is not attractive. If you live a transient lifestyle, renting is by far your best option. The second reason is that the cost of purchasing a home and subsequently selling a home make it virtually impossible (in most instances) to turn any kind of profit within the first couple of years. In the broadest terms, downpayment notwithstanding, its going to cost you about 2-3% in closing costs on the front end to purchase your home. In a typical scenario on the back end, you are looking at 7-8% in transactoin fees when you sell. That’s a 10% chunk of your profit right there. That does not take into consideration market dynamics and timing. In most markets, it’s tough to see a 10% appreciation in a short time period. Not impossible but not something you should bank on. If you are considering a new construction purchase in a neighborhood where new construction will continue for years to come, you should know that you will be competing against the builders (and their incentives) when you go to sell. Therefore, its often even more difficult to turn a shorter term profit in a new construction neighborhood.

You Don’t Have Money for a Downpayment & Closing Costs

Are there ways that you can get into a home with no down payment? Yes, but they are far less abundant as they once were. VA (for veterans) and USDA (for rural properties) are about the only two options currently available for any kind of zero down payment. This is not to say that you shouldn’t pursue one of these opportunities if you and/or the property qualify but you should make sure that you understand all of the terms of the financing arrangement because you are buying into a property with flat or negative equity from day one (see above). What about closing costs? There are additional fees associated with purchasing a property and those are referred to as closing costs. As a buyer, you can request in your contract that the seller contribute monies toward your closing costs but that is a negotiable item and there are limits to seller contributions.

You Think that Home Ownership is an Avenue to Quick Riches

Are there ways to become wealthy through real estate investment? Sure. Are there ways to turn a nice profit by flipping or rehabbing the right property? Yes, if done strategically. Are there guarantees that you are going to make a substantial profit on any property you sell? Absolutely not. If you take the approach that you are going to buy a house with the intent to sell it a year or two later for a significant profit either through drastic home improvements or market appreciation, you are simply speculating or gambling. Sure, if got a great deal when you purchase, make the right improvements and catch a strong market cycle it definitely can happen. However, those scenarios typically involve very detailed research, planning and strategic investment – not blind faith. Many of those properties are purchased with cash through foreclosure auction by seasoned real estate investors.

Your Future Employment is Up in the Air

This is a tough one because you really never know when the economy could tank and you or your partner might be out of work for a short or extended period of time. Case in point – the past 3-4 years. In the past, some have over leveraged their real estate purchases and been faced with the unfortunate circumstance of one or more foreclosures or short sales. The real estate market is closely tied to the job market in most areas. Nowadays, employment plays a huge part in the overall qualification for financing but often its wise to take a bit more conservative approach and not buy the biggest and best house you can qualify for unless you know your future is secure.

You Have No Desire to Maintain Your Property

If your ideal weekend consists of sleeping in until 11am and sitting on the couch for 12 hours a day while the bushes in your front yard grow with reckless abandon, dont buy a house. If you cant remember to change an air filter and the next time you water your lawn will be the first, dont buy a house. Now, that being said, you may have the financial capability to pay someone to do all of those things for you so that you can sit on the couch all day long and thats fine. Just make sure that someone is maintaining your property because if you do not, you might have a whole mess of worms on your hands when/if you go to sell. When you lease a property if something goes wrong or breaks, you call the landlord or management company and someone else comes to fix the problem. When you own your home, guess who’s responsibility that is? Property maintenance is just one of the costs associated with owning a home but a big reason why many still prefer to rent even if they can buy.

More Information on this Topic:

How Do You Know if Renting or Buying is Best for You?
The Real Estate Markets Where Buying Beats Renting
Want to Know How Much Home You Can Afford?

How Much Should we Offer on that House?

Featured Listing: North Austin Condo

ryanfrance — Wed, 04 Apr 2012 15:09:27 +0000

I just listed this clean, comfortable, low maintenance condo tucked away in Austin’s north corridor. Visit the listing page for more information on 2632 Century Park Blvd #56.

The two story functional space could be perfect for all walks of life: an investment property, an ideal roommate plan, large enough for a family or efficient for a single professional.

The 2 bed 2.5 bath plan offers main living room and kitchen downstairs. A flexible loft living space can serve multiple purposes (gameroom, playroom, exercise room, home office) so that you dont have to sacrifice one of the two upstairs bedrooms. Both bedrooms have their own in room full bath.

This condo has been well maintained by the original owner. The unit features wood laminate, tile & carpet flooring as well as granite tile counters in the kitchen.

This particular condo unit has a fenced in back patio and small yard for added privacy and outdoor living. Not all units have fences. It also has its own two car garage and small driveway so you don’t have to worry about fighting for a parking space.

This condo is a potential short sale subject to lender approval – excellent value.

About the Century Park Condos: This 78 unit complex is situated behind a private access gate. The convenient location is just minutes from major throughfares: Mopac, I-35, Parmer and 45 – easy access to the Domain, Arboretum and some of Austin’s largest employers. Monthly HOA ($200) includes common area maintenance, trash pick up, pool access, gated community and water bill.

Which Home Improvements Provide the Best Return?

ryanfrance — Fri, 30 Mar 2012 18:57:53 +0000

Whether preparing to put a house on the market, remodeling a fixer upper or concerned about building future equity, homeowners are often curious about where their home improvement dollars go the furthest. What upgrade, replacement and remodel projects provide the best return on investment?

Each year, Remodeling Magazine in conjunction with the National Association of Realtors puts out a Cost vs. Value Report based on each region of the US. This report compares construction costs to resale values for 35 of the most common household projects – broken down between mid range and up scale improvements. In essence this report helps answer the question, where is my time and money best directed?

Nationally, these were the Top 5 Projects for 2011 Based on Overall Return on Investment. To provide a broad basis for comparison, the typical average return across the 35 projects studied was 57%.

#1 – Replacement of Exterior Siding (including trim and soffits)
Average Project Cost: $13,461
Average Investment Returned: 78%

#2 – Replacement of Front Entry Door
Average Project Cost: $1,238
Average Investment Returned: 73%

#3 – Addition of an Attic Bedroom & Bathroom
Average Project Cost: $50,148
Average Investment Returned: 72.5%

#4 – Minor Kitchen Remodel (facelift)
Average Project Cost: $19,588
Average Investment Returned: 72.1%

#5 – Garage Door Replacement
Average Project Cost: $1,512
Average Investment Returned: 71.9%

The main report summarizes the information from a nationwide perspective and then the data is broken down into subsets based on 9 regions of the United States. Inside of each region, it is further segmented to compare some of the major cities. Austin just happens to be one of the cities included in the report. You can download or view a copy of the Austin area Cost vs. Value Report at the Remodeling Website.

Top 10 Most Profitable Replacement/Remodel Projects in Austin
(based on the 2011 Cost vs. Value Report)

1. Basement Remodel – 83.4% ROI compared to 66.8% nationwide.

2. Attic Bedroom Addition/Remodel – 82.9% ROI compared to 72.5% nationwide.

3. Exterior Entry Door Replacement – 82.7% ROI compared to 73% nationwide

4. Exterior Siding Replacement – 80.6% ROI compared to 78% nationwide

5. Minor Kitchen Remodel – 75.9% ROI compared to 72.1% nationwide

6. Deck Addition – 75.6% ROI – compared to 70.1% nationwide

7. Garage Door Replacement – 75.5% ROI compared to 71.9% nationwide

8. Midrange Bathroom Remodel – 73.2% ROI compared to 62.2% nationwide

9. Major Kitchen Remodel – 73% ROI compared to 65.7% nationwide

10. Family Room Addition – 71.7% ROI compared to 60.2% nationwide

Not surprisingly the top ten list is comprised of projects that do one of three things: enhance curb appeal, add interior square footage or remodel areas of high importance (typically) for buyers – bathrooms and kitchens. Those projects historically bring the highest return on every dollar invested. Again, if you would like to download the National, Regional or Local Cost vs. Value Report, you can do so for free at Cost vs. Value dot com.

Photo Courtesy of Armchair Builder via the Flickr Creative Commons License

Eye on Austin Real Estate

ryanfrance — Wed, 28 Mar 2012 14:56:47 +0000

The New Kid on the Block -

Earlier this month I sent out the first edition of my new Real Estate focused newsletter. I’ve been sending out a monthly newsletter for the past 3-4 years but that particular newsletter focused little on the actual trends and metrics of the actual real estate market in Austin. While I continue to receive tremendous response from my Better Austin Living Newsletters, I decided it was time to augment that effort with a piece that shared the pulse of the Austin real estate market.

Thus, the Eye on Austin Real Estate Newsletter was born. Click here to download a copy of the first edition. In accordance with that newsletter, I’m also building an associated website – www.EyeOnAustinRealEstate.com.

The main purpose of these platforms is to provide more in-depth analysis on the trends we are seeing locally. One thing to keep in mind is that the only real estate market that truly matters in the grand scheme of things is your real estate market. And when I say your real estate market I’m not only referring to the Austin market but also the micro-markets inside of that bigger picture.

Part of my duty as a responsible real estate professional is to curate the best insight and information that is pertinent to the interests of an Austin homeowner (or prospective home owners). In today’s world of intense and sometimes inaccurate media scrutiny, it can be difficult to discern between what is relevant to us as Austinites and what is just plain noise.

My hope is that the content generated through this platform will serve as a voice of reason amongst the digital clutter.Thus, information will only be pulled from trusted sources.

We are starting to see a shift again in local real estate market dynamics and its important to stay on top of the changes as the occur so that you can make educated and responsible decisions. The website is in its infancy and will continue to evolve over time but I’d encourage you to go check it out: www.EyeOnAustinRealEstate.com

How to Save More Money When You Sell Your Home

ryanfrance — Fri, 23 Mar 2012 10:07:03 +0000

Two Important (And Sometimes Overlooked) Questions to Ask Before You Hire a Realtor -

If you haven’t already read my post about what I would look for in the ideal Realtor partner, you might want to start there and then come back to read this post. This post could be considered a part 2 to that original post.

When you sit down for the first time to interview or consult with a Realtor about the sale of your home, the initial meeting can often be overwhelming. In just a short period of time you might find yourself being hit left and right with with facts, figures and sales pitches. The Realtor you are meeting with only has a short window of opportunity to prove his or her worth to you before you are left to make a decision on your own.

Call me crazy, but I think you really ‘know’ whether or not the person sitting before you is the kind of person you want to work with before he or she dumps a bunch of statistical information on your plate. These are typically gut decisions when you can tell that person believes what you believe and thinks, acts and does in congruence with those values. Don’t get me wrong, I know that experience, track record and credentials largely factor into the equation (especially in a decision of this financial magnitude) but I think those facts and figures serve to validate your gut decision, not make it for you.

The real estate industry is notorious for throwing around numbers and acronyms regardless of whether people understand what they actually mean. The fact of the matter is that numbers can lie – well, not so much lie as only tell half the truth.

Want to Save Money When You Sell Your House? Let me try to simplify things and give you two of the most important metrics (numbers) that you should concern yourself with in regards to a Realtor’s ability to sell your home and put more money back into your pocket.

The Most Important Numbers When Selling Your House

Days on Market (DOM) – this one is pretty simple, it’s the number of days that it takes a home to sell (from listing to contract). Based on a full year’s worth of data (over 20,000 sales area-wide), single family properties sold in 80 days on average in 2011. That means that it took 80 days for buyer and seller to agree to contract terms and then most often an additional 30-45 days for the sale to actually close. Based on those numbers it’s a 4-5 month process from start to finish.

I’m proud to say that last year (2011), my listings sold on average after 33 days which is almost half the time of the 2011 industry standard and just below my lifetime benchmark of 37 days. To but that into context, it’s almost 7 full weeks of mortgage payments and property taxes saved on average for each home seller. Not to mention the added benefit of being able to move on to future endeavors within a certain timeline.

Sales Price to Original List Price (SP/OLP) – this one is sneaky. You will often hear Realtors talk about the fact that their listings sell at “96 or 97% of list price.” On the surface, that is probably true. But the real question you should be asking is whether that is 97% of original list price or final list price (what the house was actually listed at when it sold). Those are two very different numbers.

Most often, is the latter that they are referring to. According the Austin Board of Realtors, the industry average for final sales price is about 96% of what the house was listed at when it sold. However, when you dig a little deeper, you will find that its only 93% of the Original List Price. That’s a big difference – almost 7% off of the original list price.

I’m proud to say that over my real estate career, I’ve sold my listings at just under 97% of final list price. More importantly I’ve also sold them at close to 96% of original list price (vs. 93% industry-wide). That means that my sellers and I work hard to make sure that the house is priced and presented correctly for a more profitable sale in less time. Typically my listings require one or often no price reductions because they are priced to sell from day one.

There are a number of factors and strategies that go into a timely and profitable home sale. My goal is to empower my clients with information they need to make the right decisions that put them on the path from where they are to where they way to be. Before the For Sale sign hits the front yard, make sure you align yourself with a Realtor (listing agent) who can help you meet your final objectives and time lines.

Photo Courtesy of Images_of_Money via the Flickr Creative Commons License

Austin Real Estate Market Continues to Surge Ahead

ryanfrance — Wed, 21 Mar 2012 16:53:44 +0000

February Marks the 9th Straight Month of Increased Sales (Year over Year)

Preliminary February estimates projected a 9% increase in Austin real estate market sales. Well, the official data is finally in and the sales increase was almost double that amount. 1,283 single-family homes were sold in the Austin area in February 2012, which is 16 percent more than February 2011. Those numbers mark the ninth straight month in which sales have outpaced the year prior (2011).

Other February highlights include a 3% rise in median sales price market-wide. Homes spent 12 days less on the market this past month then they did in February 2011. The average number of days on market prior to sale in February was 86. For the full year in 2011, that number stood between 80-84 depending on what segment of the market you are looking at.

Perhaps the most positive news for the vitality of the spring market is the fact that the data shows there were 25% more pending contracts in February than the year prior. Pending contracts are properties that are under contract to sell. With an average escrow period of 40-45 days, these pending contracts should become March and April sales which would in turn appear to bump the sales numbers in both of those months to come.

Personally, (in my own business this year) it feels like timelines for both buyers and sellers have been accelerated by a couple of months versus what I’ve seen in the past. Whereas normally my phone and email start buzzing in late February and early March, this year that started in January.

In the past ten days alone, I’ve had 3 prospective offers on listings and two of the three were from buyers who were from buyers who had an existing lease that runs through the summer months. Normally, anyone who has 3-4 months left on a lease would just be starting think get their ducks in a row and not necessarily actively looking to put in an offer on a house.

I get the sense that there is a vibe out there amongst buyers that now is a great time to act. I cant put my finger on the exact motivation but in my opinion I think people are starting to realize that this spring and summer may mark the last really good buying opportunity in the Austin market for a while. Afterall, we’ve experienced close to 2 years now of unbelievably low interest rates and inflated home inventory levels which has made it more of a wait and see buyers market.

As inventory levels have dropped drastically over the past six months (currently at 4.2 months), there are fewer “good values” out there. Its anyone’s guess what might happen to interest rates after the November elections and we are slowly but surely transitioning back into market equilibrium and perhaps trending toward more of a seller’s market for the time being if you can believe it.

If you are interested, you can access the full breakdown for the February real estate market as well as prior months data and statistics.

515 Fallen Oaks Drive – Contract Pending

ryanfrance — Fri, 09 Mar 2012 20:53:29 +0000

I just listed a beautiful home in the Ranch at Brushy Creek. This home is truly spectacular. Its like taking a page out of a homes magazine. The owner has spared no expense to make this home stand out amongst the competition.

The home was built by Meritage in 2009. The floorplan offers 3680sqft (per tax record) of open space. The house features 4 bedrooms, 2.5 bathrooms, 4 living rooms (media & game rooms) and a 3 car garage. It is situated on a deep lot backing up to a greenbelt. The backyard is spacious and has huge shade trees which adds to the overall ambiance.

The interior of this home has been meticulously updated with rich hardwood floors, custom paint colors, intricate wall and ceiling moldings, and a classic kitchen that features a really cool subway tile backsplash.

The home is located in the Ranch at Brush Creek which is a master-planned community that sits near the intersection of Austin, Cedar Park and Round Rock in our area’s NW corridor. The community itself has a lot to offer: pool, park, sports courts, hike and bike paths etc.. It is also just a short distance to the Brushy Creek park which is one of the more unique recreational spots in the area. Visit the listing page if to get more details about 515 Fallen Oaks.

Real Estate Myth: All Square Footage is Created Equal

ryanfrance — Thu, 01 Mar 2012 16:02:16 +0000

People often fixate on price per square foot when assessing properties. While a decent parameter for value comparison, I’m going to tell you why price per square foot is not exactly what you might think it is. The underlying myth is that all square footage is created equal.

Not only are there inherent differences to the actual square footage, when you look at a house strictly from that angle, you are completely discounting or ignoring other factors such as lot size, location, view and interior finish out – just to name a few.

Not all Square Footage is Created Equal

What do I mean by that? A simple way to look at it is from the perspective of construction. Lets say that you have two rooms and both rooms are 100sqft. It would be logical to assume that constructing a 100sqft room costs what it costs. But, what if I told you that one room is 10ft by 10ft and another is 50ft by 2ft. Still think the cost is the same?

In the 10 x 10 (square room), you have essentially 40 linear feet of materials (10 + 10 + 10 + 10). In the 50 x 2 room you have over 100 linear feet of materials (50 + 2 + 50 + 2). The square room provides a lot more open interior volume and as a result, this is the way that most rooms are constructed. The long and extremely narrow room has next to no interior volume. And while it would be virtually inhabitable, it requires more than 2.5x the building materials to construct versus the simple square room and thus would come with a higher price tag for the same square footage.

Trust me, I understand this is an extreme example but it was once explained to me that way and it makes sense. The more basic and uniform the square footage, the cheaper it is to build. When you start building unique shaped spaces or rooms with intricate moldings, ceiling heights and other such things, the cost goes up exponentially.

It goes against common logic but you will typically see the price per square foot rise as the size of the house dwindles and also find that one story homes bring a higher price per square foot than two stories. Why? Again, they are more expensive to build on a square footage basis.

Its much more cost effective to build up than it is to build out. When you have a pretty uniform house footprint (slab, design etc..) you can built another story on top of the first, relatively cheaply. When you build, say a 3000sqft one story, that requires a much larger base and more overall interior surface area than a two story that is built at the same size on a much smaller slab.

When discussing list prices with sellers or offer prices with buyers, I often get the question, “what price per square foot are homes selling for in the neighborhood?” You can now see why that’s a difficult question to answer unilaterally. Anyone who tells you that you should list or offer a certain price strictly because the average price per square foot for other houses is $X.00 is doing you a disservice. It’s much more complex than that.

As a listing agent, I never compare one story houses to two story houses. I never compare a 1500 sqft one story to a 2500 sqft one story. I always break down my analyses based on the exact profile of the house in question. By doing so, I’m able to provide my clients with the most relevant and important data that they need to make an educated decision. Is there a place for comparing prices per square foot? You bet, but it has to be looked at with a discerning eye because its obvious that all square footage is not the same.

That brings me to my next and final point. The price per square foot that the house breaks down to (List Price/Property Square Footage) takes in to consideration all of the following: the actual structure, the interior design appointments, exterior living space (porches, patios, stonework, kitchens), the location, the lot (greenbelt, golf course, power plant) and the view. That’s a lot to take into consideration and I’m sure I missed something. Thus, it stands to reason that a 2000sqft house on a flat treeless lot in Hutto is going to be a fifth the price per square foot than a 2000sqft designer appointed house in Cat Mountain overlooking Lake Austin.

These are very elementary examples and I know they are common sense but they serve to illustrate the point that numbers like price per square foot, median sales price, days on market and the like can be very deceiving. Make sure that you are dealing with the facts and not the averages. When you list your house or work with a Realtor on a purchase, make sure that the market analysis that he or she is providing you is tethered to your specific property and the relevant competition.

Photo Courtesy of Images_of_Money via the Flickr Creative Commons License

Better Austin Living Newsletter: February 2012

ryanfrance — Mon, 27 Feb 2012 16:05:36 +0000

The first official 2012 Better Austin Newsletter arrived in mailboxes earlier this month. As I typically do this time each year, I spent some time updating the design and overall concept. If you are not evolving, you are falling behind in my opinion. I’m pretty happy with the result. The electronic copy has been posted in the Newsletter archives section if you’d like to check it out.

This year my plan is to synergize my online content and my offline marketing to maximize the value that I’m able to offer. As a result, you may find that some of the articles published to this site will also be included in the newsletter if they align with the concept of what I’m planning to share that month. However, that wont always be the case and there will be plenty of fresh content that is shared in the newsletter only format. I also have some exciting new ideas for my keep in touch program this year so stay tuned in.

As always, if you do not receive a copy of the Better Austin Living Newsletter in the mail and you wish to be included in the monthly mailing, fill out the brief form at the bottom of this page.