Step 1: Call a Lender

Tony Robbins is a pretty well known motivational speaker.  One of the things he is known for, are his Personal Power® seminars, which are designed to motivate and reorganize your life.  I had one of his first tapes years ago.  The first lesson was about making a list of the things you need to get done or want to do.  The advice he gave, which has always stuck with me, is to do what you have the least desire to do first

I have said this before, and you will hear me say it again, looking at homes is the fun part, so it’s the item on the list buyers want to do first.  Unfortunately, it should be last on your list.  The first thing you need to do is contact a lender.  Nowadays, it’s not just about what you get paid, but how you get paid. If you get a commission based salary, qualifying for a loan is different.  Your assets, debt and credit score are also significant factors in determining how much of a house you can afford.

I understand, talking to a lender is work and it takes time.  Look at it as a way of self assessing whether you really want to buy at house.  If it all seems like more trouble than its worth – you are not ready. If it seems logical to get a good idea of what you can afford, then you are ready to buy a house.  Looking at homes takes time. Buying a home takes even more.  Spending time looking at things you can afford will save you time, not to mention, unnecessary disappointment in the end.

Pride of Ownership doesn’t have a Price Tag

Pride of ownership does not come at a price point.  Homes can be found that are either cared for or neglected, whether you spend $150,000 or 1 million.  Just because you are willing spend more money, doesn’t guarantee a home in better condition.  People have relationships with their homes (not unlike how they relate to other people).  If a problem arises, some choose to ignore it, while others attack it head on.  There is often a reality check for the owner, when it comes time to sell, when the problems can’t be ignored anymore.

Sellers often realize that what hasn’t been repaired or replaced, will ultimately cost them in the end.  Money makes things go away. Owners think they are simply saving money by ignoring foundation problems, roof repair or whatever else may be deficient.  In realty though, they are simply differing the payment to the sale.  The home is worth less to a buyer and will take longer to sell when systems are in need of repair or replacement.

78704 Property Tour

Last week I went on a tour of homes in zip code 78704.  The tour covered Travis Heights to Barton Hills.  I saw some pretty interesting properties including a 1904 farmhouse which was moved here from Trall, Texas.  If you like older homes, it was absolutely amazing from the beaded trim on the doors, to the soaring ceilings.  It is truly something special.  Here is the link, along with some of the other properties I viewed. 78704 homes The pictures do not do the farmhouse justice.

On Sunday, June 27th, I will be holding one of the homes open on the tour, from 1 – 4pm.  500 E Mary street is located in the Travis Heights area of Austin, and has 3 bedrooms, 2 baths and is 1,394 square feet (tax record.)  The house sits on a large corner lot with live oaks trees and carport. Click the tour link above for more details.

Movin’ On Out

Last weekend, I went to Brenham, Texas for the first time to attend the wedding of a former client and now friend.   She will be sharing her first home with her wonderful new husband.  I have a few clients having babies right now, and it is an honor to watch their families grow and homes be filled with joy.

No, I don’t sell houses in Brenham.  The furthest I’ll go east is Elgin, but I did find myself in Jonestown, Buckingham Estates, Sunset Valley, and Rob Roy last week.  Where’s that plane?  Maybe I’ll just settle for helicopter, then I could do roof inspections at the same time.

I also, helped someone move last week.  Let’s talk about moving.  I promise you have 3 times more than you think.  When you pack, it’s like adding water to a sponge.  It grows. Take vases for example.  In your cabinet, they take up 4 cubic feet.    When you wrap them in newspaper and pack them, they now take up 8 cubic feet.  They only things you own, that really don’t expand when packing are linens.

So here’s my advice.  Purge first.  If you haven’t finished that project in 3 years, you probably won’t.  If you haven’t worn it in a year, you probably won’t, unless it’s a special occasion outfit.  Oh – and if you still haven’t opened it, just bring it to Good Will.  Think about it, just because you are moving to a new house – doesn’t mean you are going to wear it, use it or even open it.

Also, it will take you 3 times longer to move, and 12 more car loads that you think.  I always recommend you hire a mover.  They really do take the stress off at the end of the day when you are out of steam from packing.  You’ve spent thousands of dollars on your new home, spend the extra $500 on movers. Get grandma’s desk delivered in tact, instead of loading it in the back of Uncle Harry’s pick-up truck praying it will get there in one piece, and hating on him when it doesn’t.

Snakes can rattle you

No, the 5 foot rattle snake did not convey (or least we don’t think it did) when my Buyers purchased a home in the Village at Western Oaks last Fall.  The picture is one of two snakes that were removed from their yard two weeks ago.

The second rattle snake not pictured was 4 feet long, and one of them was pregnant with about 20 babies.  So, needless to say the Smith’s have a snake wrangler on retainer, should any more unwanted guests arrive.

Yes, they live on a greenbelt, but understand this is Texas and snakes are everywhere.  I saw two myself last weekend at Town Lake, so just be aware. Tis the season.

The Hottness Factor

What areas are hot right now?  Honestly, I haven’t come across a section in Austin that I would truly call a Buyer’s market right now.  Inventory seems to be moving no matter what price point you are looking in, provided you are within Austin.  There are other areas surrounding Austin that are feeling the affects of neighborhood foreclosures and short sales, which drive the prices down simply because there is an over saturation of Seller’s wanting to sell, versus Buyers looking to buy.

When I find areas with Average Days on the Market being over 6 months that is where I classify a neighborhood to be a Buyer’s market.  Areas that stay on the market for 4 – 6 months are considered ‘neutral’, and less that 4 months are considered a Seller’s Market.

The only exception to this rule is when I am referring to homes priced over $600,000.  There are simply less Buyers able to afford a home in that price point, so the inventory tends to sit a little longer.

Whether I am working with a Buyer or Seller to determine market price, I certainly take into account how hot a neighborhood is.  I take the last 3 months of inventory and add the sold and pending listings.  I then add the active listings up and determine the average amount of months it is going to take to ‘sell’ that inventory.  The lower the number – the hotter the neighborhood.  How hot is Cat Mountain right now?  It has about 6 months of inventory.  While Parkwood, in South Austin, has enough inventory to last 2 months.

Understand, the overall condition of a home certainly plays an important role in how fast a house will sell.  Looking at inventory flow is just an additional data point I like to refer to.

For Luxury Homes: Sport Courts add Winning Points

I had a client ask me last week what I think about sport courts.  While pools can limit your audience, when it comes to attracting buyers, sport courts don’t seem to have the same effect.  The reason is that they have a broader range of use, than a pool.  For starters, they are not seasonal; after all, you can shoot hoops or play tennis any time of year.

In addition to year round use, outdoor courts are rare enough to be considered unique, which is attractive to buyers who are looking for something extra. More often then not, selective buyers don’t even know what it is they are looking for.  We then look at a home with a sport court, and they just connect to it.

Unlike pools, sport courts generally don’t require as much maintenance as pools – after all, it can be as simple as a painted slab.  Sure you may have to patch, paint and repair some fencing from time to time, but over all they generally require less effort.

Sport courts vary in size and shape, tennis and basketball are most well known.   I often see courts that offer a more universal appeal with a basketball net and backboard.  Now, a sport court is not going to have any appeal to gardeners.  It may also impede on building an addition where the amount of impervious coverage is limited.  For properties within the McMansion Ordinance the ratio of non-permeable coverage can’t exceed 40% of the lot size.  So, while a sport court may not appeal to everyone, it certainly can offer unique twist to a typical home making standout from the crowd.