Category Archives: Downtown Condos

Buying in a Seller’s Market

Posted on by

Like a G6What am I seeing lately in the Austin real estate market?  A whole lot of craziness!  There are days right now that I feel more like a fire fighter and less like a Realtor.  The Austin real estate market is favoring sellers right now.

Austin Real Estate Market Activity

Inventory is low for tenants, so lease prices have been on the rise.  Higher leases and low interest rates have created an environment where a monthly mortgage payment is cheaper than rent.  This dynamic has added more buyers to the market and  many of them for the first time, where before owning a home was only a dream.  In addition, investment purchases are on the rise as well.  Higher leases and low interest rates are making it easier to positive cash flow than in the past, making purchases attractive to investors.

When there is less than 3 months of inventory available, it is known to be a seller’s market.  Neutral markets are defined as having 4 to 6 months of inventory.  Buyer’s markets have greater than 6 months of inventory.

Austin Homes for Sale

We are miles away from a buyer’s market right now.  With so little inventory buyers need to be creative when purchasing a home in this market.  Buyers need to see a house within 24 hours after it comes on the market if it looks good.  Some buyers are submitting an offer before they even see the property.  They will submit an offer early because hours can go by while waiting for a response, which gives them time to see it.  If the house looks promising and a buyer has been in the market long enough to know what is out there – it is not unusual for a buyer to offer even a little more than list.  Money is cheap to borrow right now.  It’s about $50 a month for every $10,000 you borrow.

Don’t wait for someone else to buy your home and make an offer based on what it’s worth to you.

Search for Homes

Posted on by

searchThe more criteria I use to find a home, the lower the number of search results. However, I do have to use some data when searching like a zip code or MLS area. The Austin MLS system will only allow 100 results for any given property search. It is rare that I do not have enough criteria to narrow the search to less than 100. After all, everyone typically has some criteria whether it’s a neighborhood, school district and of course: price point.

Currently with the inventory so low, I’m lucky to come up with 40 properties to start at best.

For those who really want to narrow the field down further, I can get very specific in terms of how I search for a property. Understand, I may be lucky to find one property with too many search criteria, but the flexibility in how I search is available for those looking for something very specific.

Search for Homes in Austin

Here is a list of some unique criteria I can use when searching for a property:

♣Elementary School ♣Master bedroom located on the first floor ♣Number of stairs to enter a house ♣Fireplace ♣No HOA ♣Year built ♣Garage Space ♣Pool ♣Duplex, triplex or fourplex ♣Building materials (i.e. all sides masonry) ♣Media Room ♣Modified for wheel chair ♣Single Family Home in Condominium Regime (i.e. garden home) ♣Area amenities (i.e. club house, jogging path, lake privileges ♣Flooring ♣Type of utilities ♣City view ♣No backyard grass

There are too many criteria to list. The intent is to offer some idea of how detailed a search can be.  One thing to note is that not all agents add as much detail as they can to a listing. If an agent does not add to the view field that a property has a view of downtown Austin, for example, the system is not going to pull a home if the criteria include only city view properties. There are fields that, as Realtors, we have to fill when entering a listing, while others are voluntary.

Take a Test Drive

Posted on by

traffic jamI have spent the last few weeks in Mueller, Clarksville, Barton Hills and Downtown districts, the Oak Hill area of Austin, and a little time Round Rock and Pflugerville for good measure.  I had a conversation with someone recently regarding distance versus travel time.  Time is a very hard thing to judge in Austin simply due to the unpredictability of the traffic if you are not used to a flight path.  As you probably know, my office is close to the corner of Spicewood Springs Road and Mesa.  I can get to the office from Mopac, 360 or even I-35.  With no traffic on a Sunday afternoon, it will take me about 15 minutes regardless of my flight path.  During the week the story changes quite a bit.  During morning and evening rush hours, it can at least 45 minutes to get to and from the office on Mopac and 360. For many,  I-35 at end of day can be equivalent to sitting in a parking lot.

Austin Real Estate

It’s important to find the time during the initial stages of the home buying in Austin to see if a particular area is going to work for you.  Getting around Austin on the weekend is easy breezy for the most part, but during the week can be a much different story.  Nine miles doesn’t necessary mean about nine minutes of travel time.  It’s hard to plan for because buyers are often looking at homes on the weekend, because that’s when they have time.  It’s important to take the time though at least once before work or after to just to a test drive.

Austin Traffic

If you are tech savy, phone apps and GPS devices can also be helpful.  Very often current traffic conditions are taken into account when the program is calculating the estimated travel time.  You can often see the traffic to on the device.  Plugging the address into these devices when you would normally be doing the drive will help you estimate commuting times as well.

House of Now

Posted on by

house of nowThe Austin Real Estate Market ended 2012 with a low inventory and substantial supply of buyers.  January has picked up exactly where 2012 left off only with more buyers.  A common new year’s resolution is to buy a new home, which means that on January 1st my phone starts ringing even more.  Every buyer starts off on the same path in that they look at homes that entered the market in the past.  Whether the house was put on the market 2 days ago or 2 months ago, it is new to the buyer who has just entered the market.

The strange dynamic that I often see is when a house has been on the market say 70 days, which by today’s standards is kind of long, and all of a sudden on day 71 it’s in multiple offers.  For 70 days nobody wanted the house and on day 71 it is in a bidding war.  Some buyers pass houses by that have been sitting, because they feel like there is something wrong or it’s overpriced.  More often than not, buyers pass by a house because they think they have time.  Whether it is day 3 or day 70, they think the home is going to be around until they decide if they want to buy it.

I have had more than one client who has lost an opportunity to put an offer on a house that was on the market for 3 days in the last 2 weeks.  These clients are now referred to as my Zen clients because we are looking in the now. We have looked at every home that might be a possibility and are now looking at what comes on the market – when it comes on the market.  If a house comes on the market that might be the right fit – we go see it within 24 hours.  My Zen buyers are not only pre-qualified, but they have a thorough understanding of what to expect in terms of closing costs and pre-paid costs like homeowners insurance and escrows for taxes.  I can write an offer the same day my Zen buyer wants to buy the house because we are that prepared.

How to Buy a home in Austin now

If you want to buy a house in Austin you need to be a Zen buyer.  Understand, it’s ok to just look, but you are constantly going to be looking in the past until you are ready to buy.  The houses presently for sale are going to sell, so it’s kind of waste of time.  A better use of time is to get pre-qualified to see how much you can spend or want to spend and then get closing costs and pre-paids estimated in order to have a solid idea of you can afford.  It costs money to buy a house, but it costs a lot of time too.

If you are planning to buy a house now – you need to prepare now.

Austin Multi-Family Investment Properties

Posted on by

The Austin real estate market has experienced just as much sales growth over the last year for multi-family residences as it has for single family houses. Austin duplexes, tri-plexes, four-plexes, condominium and apartment developments are all considered multi-family real estate. Low inventory coupled by high occupancy and higher rents are creating increased positive flows which is fueling demand. So, how did we get here?

It all comes back to lack inventory and what had been a slowdown of development projects. The recession and the collapse of the sub-prime market are associated with job loss with increases in foreclosures and short sales. When banks started losing money they tightened the criteria for getting a loan, but also cut back on the development capital used to fund multi-family projects.

Investing in Austin

Two tenant profiles spiked very quickly in a short amount of time: the single family home owners who now have to rent and the first rental opportunity for the graduates who are now employed. What did not spike initially were the multi-family development projects to house them.

Four years ago we had plenty of housing. Although the downtown Austin skyline changed very quickly in 2007, it leveled out fairly fast. Some condominium development was even altered or placed on the backburner which help prevent what would have been over saturation.

Austin Multi-Family Homes

Now Austin is playing catch up. You only need to take a short drive around Austin to see that times have changed and new projects have broken ground. As Austin investment properties continue to be developed, lease amounts will level out a bit. Keep in mind though that Austin keeps growing. Half of my active client base right now does not even live in Austin – they are moving here. The need for Austin multi-family properties will always be in demand for both investors and tenants alike.

Buying the Perfect Austin Home

Posted on by

So you think you’ve found the perfect home, but is it perfect for you?  The path to actually buying it can prove otherwise if you haven’t done your homework.  The Austin Real Estate market is very strong.  Interest rates are low, many people have jobs and companies are moving here creating more opportunities for people.  Formula 1 has also added yet another head turning reason to consider moving to Austin for those out of state.  Houses in Austin are selling.  If you found the perfect house today and don’t know how you could buy it, you shouldn’t be looking…yet.  After all, if you can’t afford it…the house is not so perfect anymore.

Austin Homes for Sale

Whether you are purchasing a first home or simply want to move to another, you need to do some homework.  Everyone has an idea in their head of what they want to spend on a home, but many don’t know how that translates in terms of how much of a house they can actually afford.  Your debt to income ratio is only part of the formula.  The other consideration that lenders will look at is your credit score.  Many buyers I talk to have no idea what their credit score is.  Credit scores run between 300 and 850.  A credit score of 650 – 699 is generally considered moderate, while numbers between 700 and 850 are considered good to excellent.  The combination of the debt to income ratio and credit score will determine what loan programs are available, what the interest rate will be and ultimately how much you will qualify for.

Buying the Perfect Home

A lender will explain what your options are and then we will talk about them.  I always try and keep lifestyle in the mix to help you decide what you want to spend.  You may need to be at the high end of what you can qualify for if living near Downtown Austin is important.  Likewise, if you are planning to expand your family or will need to purchase a car and know your monthly expenses are going to increase as a result; you may want to spend less.   Once you do your homework, you will find a home that fits your financial and lifestyle criteria. It will be the perfect home – that is perfect for you.

Austin Condominiums and Pets

Posted on by

Autumn

I moved to Austin, Texas with a cat and two dogs that weighed 160 pounds combined. So, when I talk about pet restrictions, it is something I relate to as I went through the process of first finding a place to rent and then ultimately purchasing a condominium home in Austin. Pets are companions, protectors and in some households, like children. They give unconditional love and loyalty. Once we have a pet in our life, it’s hard to picture our lives without one. A pet means a long term commitment, sometimes a decade or even two, so you need to be mindful of your future home when choosing one.

Moving to Austin with Pets

I had a client moving to Austin who had a pit bull and wanted to rent a home. Pit bulls are on most aggressive breeds lists, which include those for insurance companies. That means home owners with a pit bull, german shepard or doberman pinscher (to name a few) will pay higher insurance premiums because there are certain breeds whose temperment and strength have a higher incident of attacks.

Austin Condominiums

Understand, I’m not a hater. I have met plenty of pit bulls who wouldn’t even consider biting me, and I have owned a yorkshire terrier or two who has. Since, the odds are higher with certain breeds and will cause higher premiums, your housing options will be lower. Having an aggressive breed or even an exotic animal will limit your options for renting a home in Austin and certainly buying a condominium. Austin condominiums generally have pet restrictions which can include limiting the number of pets, type of pet and even weight. I even know of a condominium community that will let you have a dog, if you are an owner, but not if you are a tenant. I am certain part of this has to do with insurance as well. In a condominium community, rules and bylaws try to ensure a peaceful environment for those living in close proximity.

Your Pet may Outlive your Current Home

Many of you will own a pet longer than you will stay in your current residence. Asking about restrictions on a new home upfront will eliminate potential disappointment for you and your pets.