Category Archives: Home Buying

Austin Homes for Sale with Garages

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10424 Beard AveWhen I have an initial consultation with new buyers moving to Austin, one of the questions I ask is whether or not they need a garage.  The answer is often “of course, I need a garage – why would a house not have a garage?”   Understanding there are areas of the country where everyone has one,  I explain that, in Austin, garages can be somewhat of a luxury item depending on where in this fair city one wishes to live.  There are many homes that have garages, but some areas in Austin began development in the early 1900’s and simply don’t.  Houses found in neighborhoods like Travis Heights and Hyde Park for example, have the charm and warmth of yesteryear, and often don’t have garages.

Within the City of Austin roughly 15% of houses that are actively on the market, do not have garages.  With condos, about 38% of the active real estate market in Austin to do not have garages.  Overall that percentage may seem rather low, but in certain subdivisions the percentage is much higher.  In the last 90 days in the Travis Heights subdivision, 7 out of 18 houses for sale did not have a garage.  Remember not garages are created equal either.  I’ve seen many that are ready to fall over.

Moving to Austin

It’s very hard for people to live without a garage when they have always had one.  With roughly 25,000 people moving to Austin in the next year from all over the country, it is important to understand what new Austin buyers are expecting and need so the criteria can be set rather than an assumed.  As I have stated, not all garages are created equal, but I can search for houses and even condos that have a garage.  With some flexibility, finding a garage in Austin does not need to be a needle in a haystack.  Just don’t ask for a basement – because that, on the other hand, is a very small needle.

Austin Real Estate Market a challenge for Contingency Offers

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money houseI had a buyer call and ask how strong a contingency offer is perceived in the Austin real estate market. What makes an offer a contingency is an addendum that is attached to a contract. The contingency addendum defines certain timelines and deadlines that a seller and buyer agree to. A contingency addendum is used when a buyer needs to make a purchase contingent on the sale of their existing home. A contingency addendum is used to protect the buyer’s earnest money in the new contract.

Anything can happen when a home goes under contract, from a buyer simply changing their mind during the option period to an underwriter denying a loan. A contingency eliminates some of the risk for the buyer by protecting the earnest money on the home they want to purchase.

Buying a Home in Austin with a Contingency can be a Challenge

Contingencies don’t eliminate all for the risk the buyer. The addendum typically has a deadline for releasing the contingency if the seller has another offer they wish to accept. The deadline is typically 3 days. If the buyer is not secure enough that the contract to purchase their existing home is going to move forward, they may not be comfortable releasing the contingency. The earnest money would be at risk and the buyer would be in default if they can’t close.

If the buyer does not release the contingency, their contract terminates. The good news is that they get their earnest money back – the bad news is that they no longer have a house.

Active and Active Contingent listings in the Austin Multiple Listing Service

For the seller, accepting a contingency offer may seem like a win-win because they can accept another offer – but there is a catch. When a seller accepts one, the status in the Austin Multiple Listing Service changes to AC, instead of A for Active. AC statuses appear at the bottom of buyer’s home searches and often get less traffic. Right now in Austin, with so many homes going into multiple offers in the greater Austin area, it is hard for contingency buyers to compete due to the risk of never making it to the finish line.

Real Estate in Austin

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mapAustin inventory is so low right now that if you are on a search for a particular zip code or area, you may be lucky to find one or two new houses a week. The low inventory is prompting buyers to look in other parts of Austin in order to find the ideal home. I have spent quite a bit of time in North East, North West, Central, South and South West Austin over the last few weeks. I’ve seen a lot of really great properties and some not so great. What makes a home great is often about the location, not the house.

Real Estate in Austin

Austin Real Estate Market prices are rising as well which is making it tougher to get everything you could want in a house. No home is going to be perfect. It just needs to be perfect for you, but understand in order for it to be perfect it needs to be in the right location. Counter tops, flooring, popcorn ceilings and even windows can be changed over time. What can’t change is the location of the house. Austin is growing which is going to create more traffic and therefore more time in your car in order to get from point A to point B. Staying true to a realistic flight path to and from work as well as your leisure activities will keep you happier in your home longer and less stressed when you get there.

Austin Drive Times

There are lots of great tools available out there to help you get a realistic ideal of travel times. MapQuest and walkscore.com are 2 websites that will help determine distance to work or even the local grocery store. Many smart phones have a map app that will help determine travel time. The map app is really a great way to see how long it would take you to get from work to a proposed property at 5:00pm when you are leaving work. Just punch in the address at 5:00 and it will show traffic patterns and alternative routes to avoid them. It is a great way to give you an idea of how long the commute will be to an area you are considering.

Austin is Hot

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hot earthAustin is hot and I’m not just talking about the weather.  Austin’s growth is outpacing the supply of homes in inventory which is making it a competitive market to buy and even rent in.  Over 25,000 people moved to Austin between July 2011 and July 2012, according to the U.S. Census Bureau.  The growth moved Austin’s ranking of the nation’s largest cities from the 13th spot to number 11.

Austin Real Estate Market sees more new construction

Austin is expecting to 27,000 people moving into town each year for the next 3 years.  The Austin Board of Realtors has reported a 32% increase year-over-year in new home construction in the second quarter of this year.

It’s a Bird, It’s a Plane

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Austin BuyerFaster than a speeding bullet! More powerful than a locomotive! Able to leap tall buildings in a single bound! It’s a bird, it’s a plane…no – it’s a successful Austin Home Buyer.  Now, you don’t need to be a superhero to buy a home in Central Texas, but you do need super speed.  Buying a home in Austin in this market requires you to be very prepared in order move fast.

I had a listing hit the market at 5pm on a Monday with no pictures posted.  Typically, I don’t go live with a listing without pictures, but the Austin MLS was switching software on Tuesday and I only wanted to worry about the pictures I was getting back on conversion day.  By noon on Tuesday I had an offer in hand and my phone was ringing off the hook. That first offer became a contract and I learned the next day that the buyer was only seeing the house for the first time on Wednesday.  He sent his sister Tuesday morning, and she knew him well enough to move on it – quickly.

Buying a Home in Austin

In the greater Austin Real Estate market you need to know thyself, know your numbers and be pre-qualified because the next buyer walking in the door is going to be.  I see buyers even writing offers for over list price just to sweeten the pot.  Understand, it’s not just about price; the other terms in the contract will influence a Seller as well.  Flexibility with a Seller can become the key factor. Just as not every Buyer can offer more than list, not every Buyer can be flexible with time either.  The closing date can become a tool or a deal breaker.   Flexibility with a closing date is often a super power.  In a Seller’s market, owners are often shocked how quickly their home has gone under contract and don’t always have a plan, so being able work with sellers on a date becomes valuable.

In a Seller’s Market it’s important for the Buyer to take time getting educated on the current market specific their needs and the buying process which includes the loan.  Taking your time upfront will allow you to move super fast when the time is right.

Pool Season

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PoolSwimming pools: the instant source for entertainment, relaxation and exercise. They provide a backyard retreat and a tranquil view that is a luxury marker some buyers dream about having. For those buyers who want a pool, houses with them are much easier to sell. Forget the condition of the house– that oasis in the backyard, especially on a hot day kind of sells itself, doesn’t it?

Pools can be more of a hindrance than a help. Not everyone wants a pool. In fact, I would say 70% of people don’t. Pools cost money and time to maintain. In addition, there are safety concerns for people with small children and pets. They can also take up a lot of yard space.

Swimming Pool Tips for both Buyers and Sellers

Swimming Pool Owners
•Maintain and update your pool. Nobody wants to buy a money pit (literally).
•If you can afford switch to saline — do it, it is a selling feature.
•If you own in a subdivision where most homes have a private pool…buyers will be comparing your ‘pool’ appeal.
•Make sure the pool area looks clean, maintained and inviting.

Buying a Home with a pool
•A general inspector will not inspect a pool, but many pool companies do. Have a pool inspection – they can be costly to fix.
•If you want to know how much it costs to maintain a pool including what you will spend on chemicals, electric and water — the answer is — you don’t want a pool! They can be costly, and if you are already watching your budget — a pool is going to blow it.
•Remember, pools limit your potential number of buyers, so they can take longer to sell when the time comes.

As someone who grew up having a pool, I understand the appeal of having one from a lifestyle perspective. My experience is that they are great for moments in time. You will spend more time staring at a pool during your ownership, then you will spend in it. If you have a pool, don’t let it become another 4-letter word make sure it shines because it can make or break a sale.

Pools in Austin

Austin Texas has a variety of options for people who want to enjoy a pool, but don’t want to maintain one. Many planned single family home communities in Austin have pools that are included with HOA fees or may require a nominal additional fee. Condominium communities in Austin often have a private pool as well for residents. An automated home search can be customized to only include properties with community with pools.

There are many public pools in Austin as well. There are 27 neighborhood pools and 6 municipal pools in total. The most well known pool is Barton Springs, located in Zilker Park. Centrally located in the neighborhood of Barton Hills, Barton Springs Pool is spring fed, just over 900 feet long and maintains a consistent temperature of 68 degrees year round.

The Wizard of Oz

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wizardWhen I bought my first house in 1993 and had a lot of questions to answer.  No, they weren’t to my parents or even my friends, they were written to the underwriter who was processing my loan.  One of the questions was what I spent $1,000 on because they saw the funds withdrawn from my bank and wanted an explanation.  I played the guilt card and told them it was for my wedding dress, when in reality it was for a vacation.

The world we live in today is very similar to that period of time.  Yes, it is certainly easier for people to get loans than say 2 years ago, but lenders are cautious and are analyzing quite a bit to make certain people can actually afford what they are trying to buy.

There is a lot of dialogue when a buyer initially purchases a home between a seller’s agent, a buyer’s agent and loan officer.  A seller’s agent looks at the pre-qualification letter to see if the lender has completed certain steps to make certain the buyer is viable.  The buyer’s agent initially has a buyer talk to a lender and get pre-qualified before even shopping for a home to ensure they can afford it.  The loan officer reviews credit scores, the debt to income ratio, loan programs and funds to find a product that meets their criteria and is affordable.

After all is said and done with the buyer under contract, the wonderful wizard takes over.  This is the final stretch to the finish line.  I refer to underwriter as the Wizard of Oz because it paints a picture people can relate to.  It is the underwriter who blesses the file before closing to make sure all of the loan conditions have been met.  The underwriter doesn’t always know everything.  The underwriter simply opens a file, reviews it and may ask lots of questions along the way.  The process can be extremely frustrating for a buyer as it may seem repetitive and even invasive.

Remember that a buyer who requires a loan is buying a house with the underwriter’s blessing. Appease the wizard and go with the flow, keeping in mind you are almost at the finish line.