Austin 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.

Faster 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.

When 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.