Showing property with a Dash of History, for Good Measure

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For starters, I would just like to thank you for referring me to your friends, family and co-workers. My business is based on you, and I am very blessed to have your continued support.

 Last week, I was in Round Rock and then, moved on to Downtown, Austin to view some condominiums.  If you haven’t been to the historical district of Round Rock, it is quite charming. Downtown, I went to the Brown Building and the Nokonah.  Located on W 9th Street, the Nokonah is in the heart of Duncan Park and within walking distance to Whole Foods, restaurants and shops.  

Built in 1940, the Brown Building, on Colorado Street holds a historical designation, which gives owners an additional tax exemption.  The building was originally utilized as office space, some of which was occupied  by politicians,  including former President Lyndon B. Johnson. In 1998, The Brown Building was converted to loft style condominiums.  The Brown Bar and Gumbos restaurant are on the first floor, for your dining pleasure. Here’s a peak

Reminder:   we must be under contract by April 30th in order to qualify for the tax credit.

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

Contact me for real estate needs by:

Phone:  201-286-2504

Email:  doreen@supportlocalaustin.com

Playtime in Austin includes the Tax Credit Hustle

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It was an amazing week to be in Austin last week. We started with the Zilker Park Kite Festival, then moved on to SXSW, and it was spring break.  All in all people were out and about exploring this wonderful city we live in.  Where was I?  A little bit of everywhere, buyers are hustling to meet the tax credit deadline, and I am moving them along.  My goal is to have everyone who cares about the tax credit to be under contract within the next week.  

 

Understand, we need our option period to decide whether to go forward with the house, and then there is of course, the financing hurdle.  I am advising my clients to keep the ball in someone else’s court while we shop.  If the Lender wants pay stubs, tax records, employer contact information…whatever it is, let’s get them the information they need, so we can get the file into underwriting as soon as possible.  

 

Lender qualifications change often, so it is important to keep in contact with them.  If for some reason, we fall out of contract and then need to find another house to purchase, we still have time to meet the deadline.

Coming soon: rate change on PMI

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I learned something last week, that I need to share because it does not seem to be making the news.  On April 5th, the FHA upfront mortgage insurance premium is going to be raised from 1.75% to 2.25%.  When you are not putting 20% down on a home, and don’t want to participate in a second mortgage, you qualify for an FHA loan, which only requires a 3.5% downpayment.  The upfront mortgage insurance premium is calculated off of your loan amount.  It does not include the down payment.  On a $100,000 loan, the upfront premium would change from $1,750 to $2,250.  Understand this amount is owed ‘upfront’ at the time of closing and is separate from the monthly mortgage insurance you are still required to pay.

 

FHA loans are assigned case numbers.  So, anything under contract prior to April 5th, will not be affected, as long as the loan is approved.

 

If you have detailed questions, it is best to speak with a lender. Since, we are all more frugal than a year ago, I thought I would give you a heads up.

Time for a Change

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As I mentioned in the beginning of the year, change is in the air.  My business is growing, and as a result, I have made some improvements to streamline systems to help me – help you. First, I have changed my email address.  It is now doreen@supportlocalaustin.com.  The nice thing is that I can easily check email on my phone when I’m on the road, so I can reply to clients faster, and it all syncs to a central server.

The second thing I have changed, is posting my cell phone as my office phone.  My clients are ultimately communicating with me through my cell phone anyway, and I them.  So, I decided to cut out the middle man and go directly to my cell phone.  As you already know, I spend quite a bit of time in my car, so these little things will increase my level of customer service.

Oh, and one more thing….I am now at Sky Realty.   As I enjoy teaching others, I enjoy learning new things too.  Look forward to an improved website and home search features in the coming weeks.

If we are not moving forward, we are moving backward.  We are indeed, always moving.

Thank you all for your continued support and well wishes. 

Spring into Listing, the Selling Season has Begun

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I’ve been flooded with questions lately by both Buyers and Sellers, and I love questions, because it means you are thinking.  I would like to take a minute to share what some of my clients have been thinking about, since you might have the same questions racing through your head as well.

 

For Sellers, the questions I am getting are more like, “do I put on a deck?”, “do I power wash the house?”, “do I install a new kitchen?”.  My universal response to most of these questions is, don’t.  Don’t do anything you would not have done, if you weren’t moving.  The reason is more about the cost of time, because time can cost more than you will ever get back.  We are entering the selling season.  

 

A deck is not going to necessarily bring you more money.  If the deck takes twice as long as it was intended, you have not only spent money on something that wasn’t necessary, but you have missed the Spring buying season as well.  

 

Power washing your home, could result in your house needing a new paint job.  Do you have time for that?  Do you have the money?  Using a garden hose, might easily do the trick, without creating a problem you didn’t have.  

 

Installing a new kitchen?  Out of all the questions I have received this week, this is the one that would add the most appeal to your home, and will bring you the most return on the cost, but kitchens take time.  If the kitchen costs $25,000, and isn’t going to be done for 9 weeks, we have lost the Spring buying season.  That $25,000 remodel, may only net you $15,000 in the fall.  When interest rates go up, house prices generally go down because people have less buying power.  

 

The #1 thing I want people to do when I list a house is clean.  When Buyers see a 1970’s kitchen that is spotless, they comment on how clean it is.  It’s a blank canvas that can updated someday and is considered usable the way it is.  When the same Buyers see a modern kitchen, that is dirty, it is a turn off.  It’s funny how the brain works, it doesn’t say “I can clean this”, like you would think; instead it says “I could never cook in here”.  If you don’t like to clean, hire someone.  It’s money well spent and I guarantee you will get 100% return on your cost, instead of a remodel that will cost you to miss the Spring season.  Do those remodeling projects in the fall, six months before you are planning to sell.

Buyer Closing Costs

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I’ve been flooded with questions lately by both Buyers and Sellers, and I love questions, because it means you are thinking.  I would like to take a minute to share what some of my clients have been thinking about, since you might have the same questions racing through your head as well.

For Buyers, the more commonly asked question is how much money they need to buy a house.  Unfortunately, there are too many variables that make question easy to answer. A credit score, downpayment and loan program are going to be the determining factors for this.  Those factors, are not only going to determine what your costs, but they are also going to decide your buying power as well.  

A 1% variation in an interest rate can mean a 10% change in your buying power.  The debt to income ratio will also determine your buying power.  Having a great credit score means that you show a history of paying back loans, and therefore you are less of a risk to a bank of defaulting on a loan.  If you are going to buy a house or planning on moving up, your income has to reflect that you can afford to handle more debt.  If a lender thinks you are just making it, with your current debt – you are not going to get approved for more.

What I generally tell Buyers, is to plan on at least 2 percent of the sales price, not including your down payment.  Lenders escrow 3-8 months for taxes up front, which are typically the biggest portion of  closing costs. You will also need 1% of the sales price in earnest money at the time we go under contract.  In addition, you will need an inspection and title fees.  So, the short answer is 2% of the sales price, but that does not include lender fees, which, depending on your loan program, could mean another 2%.