Monthly Archives: January 2010

Resale vs. New Construction

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I taught the Buyer Consultation class to new agents this week. When you are buying a home, especially in an area where there is still building going on, you need to be mindful of its resale potential. If you are planning on selling in less than 3 years, you may very well be competing against new construction.

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

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

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

The Age Wave Theory

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Downsizing; it’s a trend we hear more often then not these days. For those that buy into the concept that living with less, de-cluttering can be good for the soul. For those, that can’t part with the Christmas plates, they haven’t taken out in 15 years, the concept of downsizing is stressful. At some point, there is a natural progression to live on the lighter side.

The most spending, in your life, is done in your 40’s and early 50’s. After that, you start migrating from a spending lifestyle to a saving lifestyle. It means spending less and downsizing. As baby boomers start shifting from this spending to saving mode, downsizing is becoming more apparent. So part of what is happening with our economy has to do with the majority of our population changing their spending habits naturally with age. It is a slow shift that started about a year ago. It’s called the Age Wave Theory, you can Google it for more information.

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

Do the Right Thing

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It is now mandatory that all Realtors have their fingerprints taken to obtain my real estate license. I think it’s a good idea overall. Gone are the days of the blue inked mess on a piece of paper though. Now, you role your fingers on a scanning bed and they appear before you on a computer screen.

I also, attended a city wide meeting on fraud. It is amazing how creative people can get, to make something work. Imagine what they could if they used their superpowers for good. Remember, as with anything in life…karma is a boomerang. Try to position yourself with people who do the right thing and tell you what you need to hear – not what you want to hear. There’s a big difference.

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

ADOM vs. CDOM

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Lately, I’ve been getting creative with how I am searching homes for clients. I have been paying particular attention to scouting for homes with long cumulative days on the market.

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

ADOM = 0

CDOM = 180

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

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

From the Hill Country to Downtown 360 Condominiums

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I went down to Dripping Springs to tour some homes in the $400’s and went further North to Westlake to see at newly built home for $1.3 million, which does come with boat dock rights. In between Dripping and Westlake, was a stop Downtown to the 360 Condominiums

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

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

About Condominium Regimes

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Austin, TX…The MLS has changed the way it labels single detached homes that are in some sort of condominium regime. The new ownership type includes the word ‘common’ or ‘fee-simple’ after the word ‘house’. These ‘houses’ were once labeled ‘Condo Detached’.

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

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

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

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

Foreclosure 101

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I saw a couple of foreclosures this week, one in Leander and one in Buda. Although you can get a good deal with a foreclosure, a buyer needs to beware of what they don’t get. A foreclosure contract contains an addendum about a mile long that basically states ‘buyer beware’. You are buying the house in the condition that it is in…and the bank doesn’t guarantee anything about the condition. A Seller’s Disclosure Notice is not required for a foreclosure, because the bank is the Seller.

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

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