According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin-area home sales continues to surge, increasing 58 percent in November 2009 compared to November 2008.
“This is the largest increase in year-over-year homes sales the Austin market has seen in more than ten years,” explained Jay Gohil, chairman of the Austin Board of REALTORS®.
In November 2009, there were a total of 1,576 home sales, contributing $377,603,296 to the local economy. The median home price for Austin in November 2009 was $179,000, a two percent decrease from the same month the prior year.
“The combination of steady home prices with increasing demand is very encouraging for the Central Texas real estate market,” said Gohil.
In the face of increasing sales volume, the Austin real estate market is seeing a decrease in home inventory. The Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market, meaning demand for homes is evenly balanced with inventory of homes for sale. At approximately 5.4 months of inventory for November 2009, demand for homes in the Austin real estate market is slightly outpacing inventory.
November 2009 Statistics
•$377,603,296 – Total dollar volume of single-family properties sold, a 62 percent increase from November 2008.
•$179,000 – Median price for single-family homes, a two percent decrease from November 2008.
•1,576 – Single-family homes sold, a 58 percent increase from November 2008.
Info provided by the ABoR. For more information, contact me right away!
Monday, December 28, 2009
Thursday, December 10, 2009
How to Find the Right Home for Your Family
When beginning the process of finding a new home, it is often difficult to know where to begin. Before researching the market or analyzing housing options, homebuyers may want to start by prioritizing their family's needs, determining what are "must-haves" versus what are "nice-to-haves." Below are some factors you may want to consider when trying to find the right home for your family.
•Think Through Location: When you begin searching for the right home for your family, you may first want to determine what would be the best location. One of the best ways to find a home location that suits your family is to assess your needs and determine how much your family can compromise. For instance, do you have small children or pets that require a large backyard to play in? Or would you be equally happy taking your kids and dog to the local park? Do you need quiet surroundings, like a dead-end street, or do you prefer the hustle and bustle of metropolitan areas? These are the types of general assessments which may help you determine an ideal location for your family.
•Analyze Potential Neighborhoods: Though it may be easy to determine what type of environment your family wants to reside in, you will want to spend more time analyzing the details of the neighborhoods you are considering. As you try to determine which neighborhoods are best for your family, you may want to take into account such factors as the quality of nearby schools and the proximity to shopping or your workplace. After seeing what different neighborhoods have to offer, compare the pros and cons of each area you are considering to determine the best location for your family.
•'Visualize' Your Ideal Home: After you have a chance to look at a few homes and research various neighborhoods, try to visualize the best home for your family. Though you have probably already thought about how many bedrooms and bathrooms your family needs, consider keeping a list of desired amenities – both essential and those that you could live without – as you continue the home buying process. You may also want to consider what type of home construction your family needs, from a standard single-family home to a condominium or even a multi-family home. Upon viewing particular homes, you may realize that your family needs a certain amount of storage space or more overall square footage than you realized. Add and subtract from this list as you look at more homes, always keeping track of where your family can compromise.
•Keep An Open Mind: If you find a home that meets all of your family's needs but has a smaller than desired garage, you could still be faced with an opportunity that is too good to pass up. Furthermore, you might find the perfect home in a neighborhood you never thought to consider, or in a specific type of construction that was initially ruled out of your search. Quite simply, try not to limit your family's options too much and remain open-minded throughout the home buying process. You might even find a great home with special features you never thought your family could afford – like a pool, a spa or an extra fireplace.
When trying to find the best home for your family, try to stay organized and keep your priorities straight. As you look at different homes, try to consider how each property fits your family's needs. After finding some homes that meet your family's needs, you may then want to focus on each home's desirable extras to help narrow down your search. By making such lists and assessing your family's needs throughout the home buying process, you might be surprised how quickly you uncover the home of your dreams.
•Think Through Location: When you begin searching for the right home for your family, you may first want to determine what would be the best location. One of the best ways to find a home location that suits your family is to assess your needs and determine how much your family can compromise. For instance, do you have small children or pets that require a large backyard to play in? Or would you be equally happy taking your kids and dog to the local park? Do you need quiet surroundings, like a dead-end street, or do you prefer the hustle and bustle of metropolitan areas? These are the types of general assessments which may help you determine an ideal location for your family.
•Analyze Potential Neighborhoods: Though it may be easy to determine what type of environment your family wants to reside in, you will want to spend more time analyzing the details of the neighborhoods you are considering. As you try to determine which neighborhoods are best for your family, you may want to take into account such factors as the quality of nearby schools and the proximity to shopping or your workplace. After seeing what different neighborhoods have to offer, compare the pros and cons of each area you are considering to determine the best location for your family.
•'Visualize' Your Ideal Home: After you have a chance to look at a few homes and research various neighborhoods, try to visualize the best home for your family. Though you have probably already thought about how many bedrooms and bathrooms your family needs, consider keeping a list of desired amenities – both essential and those that you could live without – as you continue the home buying process. You may also want to consider what type of home construction your family needs, from a standard single-family home to a condominium or even a multi-family home. Upon viewing particular homes, you may realize that your family needs a certain amount of storage space or more overall square footage than you realized. Add and subtract from this list as you look at more homes, always keeping track of where your family can compromise.
•Keep An Open Mind: If you find a home that meets all of your family's needs but has a smaller than desired garage, you could still be faced with an opportunity that is too good to pass up. Furthermore, you might find the perfect home in a neighborhood you never thought to consider, or in a specific type of construction that was initially ruled out of your search. Quite simply, try not to limit your family's options too much and remain open-minded throughout the home buying process. You might even find a great home with special features you never thought your family could afford – like a pool, a spa or an extra fireplace.
When trying to find the best home for your family, try to stay organized and keep your priorities straight. As you look at different homes, try to consider how each property fits your family's needs. After finding some homes that meet your family's needs, you may then want to focus on each home's desirable extras to help narrow down your search. By making such lists and assessing your family's needs throughout the home buying process, you might be surprised how quickly you uncover the home of your dreams.
Wednesday, December 2, 2009
>> Market Update
INFO THAT HITS US WHERE WE LIVE The economic reports before Thanksgiving were packed with housing market data and, guess what, they were all extremely positive! Monday saw Existing Home Sales UP 10.1% to an annual rate of 6.10 million, the highest since February 2007. Sales are now UP 20% in the past two months and UP 36% from their January lows. Even better, the supply of existing homes was down to just 7 months, with inventories down to 3.57 million, the lowest level in almost three years. This puts existing homes very close to the 6-month supply level of a healthy housing market. The Case-Shiller 20-City Composite Home Price Index rose 0.3% in September. The index also showed its second consecutive quarterly increase, UP 3.1% for Q3, returning to August 2003 levels.
Wednesday, New single-family Home Sales were UP 6.2% in October to an annual rate of 430,000 units. New Home Sales are now UP 30.7% over their January low. The unsold supply of new homes dropped to 6.7 months as of October, with inventories at 239,000, 58.2% down from their mid-2006 peak and at their lowest level since mid-1971. The median price was down only 0.5% from a year ago and average price down just 4.7%.
Freddie Mac reported mortgage rates down for the fourth straight week, reaching historic lows well below 5%, with an average 0.7 point, for prime borrowers with 20% down payments. Freddie Mac's chief economist said, "Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage."
>> Review of Last Week
TWO KINDS OF BLACK FRIDAY... Leading up to Thanksgiving, we had lots to be grateful for, with market gains and encouraging economic reports. Retailers' Black Friday exceeded expectations, but unfortunate financial news from Dubai turned Wall Street's Friday a depressing black, with the Dow losing 154 points on the day. The Dubai government announced there would be a six-month "standstill" on debt repayments for Dubai World, its holding company. This sent world markets reeling with fears of multi-billion dollar defaults. But Dubai is part of the super-wealthy United Arab Emirates (U.A.E.), which should provide deep support. In addition, Dubai's debt is mostly held by U.K. and European banks, with little U.S. involvement. The situation bears watching, although our recovery remains clearly on track.
On Tuesday, for example, Q3 GDP growth was revised down to a still substantial 2.8% annual rate. The key item in the report was the look at Q3 corporate profits, which grew at a very strong 50% annual rate, the third consecutive quarterly increase. Wednesday, initial jobless claims dropped to 466,000, sending the four-week moving average down to 496,500, below the level a year ago. Continuing claims are now down to 5.423 million. The Richmond Fed Manufacturing index showed expansion of activity for the seventh straight month.
Consumer Confidence went up to 49.5 for November, beating consensus estimates. This tied in nicely with Wednesday's reports showing personal incomes are rising, consumer spending is up and the savings rate is 4.4% vs. 1.7% just two years ago. Even non-mortgage consumer debt is down 5% from its mid-2008 peak.
Nonetheless, the Dubai surprise left the Dow off 0.1% for the week, at 10309.92; the S&P 500 was up just 0.11 points, to 1091.49; while the Nasdaq slipped 0.4%, to 2138.44.
Prices held higher in the bond market, as investors anticipate the fall-out from Dubai and its state supported debt issues. The FNMA 30-year 4.5% bond we watch ended up 72bp from the previous week's close, finishing at $102.50. Mortgage rates, as noted above, fell last week to historically low levels!
>> This Week’s Forecast
FOCUS ON JOBS... The week opens with insight into the continually improving manufacturing sector, while Pending Home Sales figures hold our interest on Tuesday. But the real focus for the week will be on Friday's November jobs report. Analysts will be looking for further signs of recovery in this lagging economic indicator. The consensus expects the unemployment rate to plateau, which is an improvement over rates on the rise.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of November 30 – December 4
Date Time (ET) Release For Consensus Prior Impact
M
Nov 30 09:45 Chicago PMI Index Nov 53.0 54.2 HIGH
Tu
Dec 1 10:00 ISM Index Nov 54.8 55.7 HIGH
Tu
Dec 1 10:00 Pending Home Sales Oct –0.5% 6.1% Moderate
W
Dec 2 10:30 Crude Inventories 11/27 NA 1.02M Moderate
Th
Dec 3 08:30 Initial Unemployment Claims 11/28 483K 466K Moderate
Th
Dec 3 08:30 Continuing Unemployment Claims 11/21 5.517M 5.423M Moderate
Th
Dec 3 08:30 Productivity–Rev. Q3 8.5% 9.5% Moderate
Th
Dec 3 08:30 Employment Cost Index Q4 NA 0.4% HIGH
Th
Dec 3 10:00 ISM Services Index Nov 51.5 50.6 Moderate
F
Dec 4 08:30 Average Workweek Nov 33.1 33.0 HIGH
F
Dec 4 08:30 Hourly Earnings Nov 0.2% 0.3% HIGH
F
Dec 4 08:30 Nonfarm Payrolls Nov –114K –190K HIGH
F
Dec 4 08:30 Unemployment Rate Nov 10.2% 10.2% HIGH
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. The Fed continues to affirm it will keep rates down until the recovery looks more solid, but inflation is always a concern. Overall consumer prices in the last six months are up at an annual rate of 2.7%, but economists don't expect any rate changes in the near future. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Dec 15 0%–0.25%
Jan 27 0%–0.25%
Mar 16 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Dec 15 1%
Jan 27 1%
Mar 16 3%
More details on this can be found by contacting Brian Patschke with Prime Lending at bpatschke@primelending.com
INFO THAT HITS US WHERE WE LIVE The economic reports before Thanksgiving were packed with housing market data and, guess what, they were all extremely positive! Monday saw Existing Home Sales UP 10.1% to an annual rate of 6.10 million, the highest since February 2007. Sales are now UP 20% in the past two months and UP 36% from their January lows. Even better, the supply of existing homes was down to just 7 months, with inventories down to 3.57 million, the lowest level in almost three years. This puts existing homes very close to the 6-month supply level of a healthy housing market. The Case-Shiller 20-City Composite Home Price Index rose 0.3% in September. The index also showed its second consecutive quarterly increase, UP 3.1% for Q3, returning to August 2003 levels.
Wednesday, New single-family Home Sales were UP 6.2% in October to an annual rate of 430,000 units. New Home Sales are now UP 30.7% over their January low. The unsold supply of new homes dropped to 6.7 months as of October, with inventories at 239,000, 58.2% down from their mid-2006 peak and at their lowest level since mid-1971. The median price was down only 0.5% from a year ago and average price down just 4.7%.
Freddie Mac reported mortgage rates down for the fourth straight week, reaching historic lows well below 5%, with an average 0.7 point, for prime borrowers with 20% down payments. Freddie Mac's chief economist said, "Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage."
>> Review of Last Week
TWO KINDS OF BLACK FRIDAY... Leading up to Thanksgiving, we had lots to be grateful for, with market gains and encouraging economic reports. Retailers' Black Friday exceeded expectations, but unfortunate financial news from Dubai turned Wall Street's Friday a depressing black, with the Dow losing 154 points on the day. The Dubai government announced there would be a six-month "standstill" on debt repayments for Dubai World, its holding company. This sent world markets reeling with fears of multi-billion dollar defaults. But Dubai is part of the super-wealthy United Arab Emirates (U.A.E.), which should provide deep support. In addition, Dubai's debt is mostly held by U.K. and European banks, with little U.S. involvement. The situation bears watching, although our recovery remains clearly on track.
On Tuesday, for example, Q3 GDP growth was revised down to a still substantial 2.8% annual rate. The key item in the report was the look at Q3 corporate profits, which grew at a very strong 50% annual rate, the third consecutive quarterly increase. Wednesday, initial jobless claims dropped to 466,000, sending the four-week moving average down to 496,500, below the level a year ago. Continuing claims are now down to 5.423 million. The Richmond Fed Manufacturing index showed expansion of activity for the seventh straight month.
Consumer Confidence went up to 49.5 for November, beating consensus estimates. This tied in nicely with Wednesday's reports showing personal incomes are rising, consumer spending is up and the savings rate is 4.4% vs. 1.7% just two years ago. Even non-mortgage consumer debt is down 5% from its mid-2008 peak.
Nonetheless, the Dubai surprise left the Dow off 0.1% for the week, at 10309.92; the S&P 500 was up just 0.11 points, to 1091.49; while the Nasdaq slipped 0.4%, to 2138.44.
Prices held higher in the bond market, as investors anticipate the fall-out from Dubai and its state supported debt issues. The FNMA 30-year 4.5% bond we watch ended up 72bp from the previous week's close, finishing at $102.50. Mortgage rates, as noted above, fell last week to historically low levels!
>> This Week’s Forecast
FOCUS ON JOBS... The week opens with insight into the continually improving manufacturing sector, while Pending Home Sales figures hold our interest on Tuesday. But the real focus for the week will be on Friday's November jobs report. Analysts will be looking for further signs of recovery in this lagging economic indicator. The consensus expects the unemployment rate to plateau, which is an improvement over rates on the rise.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of November 30 – December 4
Date Time (ET) Release For Consensus Prior Impact
M
Nov 30 09:45 Chicago PMI Index Nov 53.0 54.2 HIGH
Tu
Dec 1 10:00 ISM Index Nov 54.8 55.7 HIGH
Tu
Dec 1 10:00 Pending Home Sales Oct –0.5% 6.1% Moderate
W
Dec 2 10:30 Crude Inventories 11/27 NA 1.02M Moderate
Th
Dec 3 08:30 Initial Unemployment Claims 11/28 483K 466K Moderate
Th
Dec 3 08:30 Continuing Unemployment Claims 11/21 5.517M 5.423M Moderate
Th
Dec 3 08:30 Productivity–Rev. Q3 8.5% 9.5% Moderate
Th
Dec 3 08:30 Employment Cost Index Q4 NA 0.4% HIGH
Th
Dec 3 10:00 ISM Services Index Nov 51.5 50.6 Moderate
F
Dec 4 08:30 Average Workweek Nov 33.1 33.0 HIGH
F
Dec 4 08:30 Hourly Earnings Nov 0.2% 0.3% HIGH
F
Dec 4 08:30 Nonfarm Payrolls Nov –114K –190K HIGH
F
Dec 4 08:30 Unemployment Rate Nov 10.2% 10.2% HIGH
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. The Fed continues to affirm it will keep rates down until the recovery looks more solid, but inflation is always a concern. Overall consumer prices in the last six months are up at an annual rate of 2.7%, but economists don't expect any rate changes in the near future. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Dec 15 0%–0.25%
Jan 27 0%–0.25%
Mar 16 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Dec 15 1%
Jan 27 1%
Mar 16 3%
More details on this can be found by contacting Brian Patschke with Prime Lending at bpatschke@primelending.com
Tuesday, November 10, 2009
I Want to Buy a Foreclosure, Now What Do I Do?
You found a Foreclosure and want to submit an offer. Now what?
You will need to work with a HUD-registered REALTOR who is approved to transact HUD Homes and has experience with the HUD purchasing process -- you cannot submit a bid or view the inside of any foreclosure properties without a HUD-registered agent. HUD properties require a special HUD Key for front door access.
In Central Texas, foreclosures are purchased through a blind online auction process. You will have to put your best foot forward if you want to have your bid accepted, as you will have no idea what price or how many others have bid. When a property is first listed on the online HUD auction, there is usually a 7-day period where the auction house will compile bids, and open them all on the 7th evening. If there where no bids during the first 7-day period, it will become a daily auction. Bids submitted from buyers who intend to occupy the property have a higher precedence than those from investors; in other words, if an investor makes and offer to buy an Austin foreclosure and an owner-occupied buyer also makes an offer on the same property, the owner-occupied offer will win even if the offering price was lower. This is because the government is aware that someone will more likely stop paying on an investment property than their primary residence. Don't think that you can just 'say' that you're going to be owner-occupied and gain an advantage -- I have known HUD to randomly 'check-in' on sold properties by sending someone out to ensure that they are in fact owner-occupied.
Another important difference in buying a HUD home vs. a non-HUD home is that there is no option period, and all foreclosed homes are sold as-is. HUD will give you an opportunity to perform an inspection, however they will not make any repairs to any foreclosed home they sell.
For more information about foreclosures and the HUD bidding process, check out this site http://www.articlefeeder.com/Real_Estate/Things_You_Must_Know_About_Buying_Foreclosures_in_Austin_and_Central_Texas.html
You will need to work with a HUD-registered REALTOR who is approved to transact HUD Homes and has experience with the HUD purchasing process -- you cannot submit a bid or view the inside of any foreclosure properties without a HUD-registered agent. HUD properties require a special HUD Key for front door access.
In Central Texas, foreclosures are purchased through a blind online auction process. You will have to put your best foot forward if you want to have your bid accepted, as you will have no idea what price or how many others have bid. When a property is first listed on the online HUD auction, there is usually a 7-day period where the auction house will compile bids, and open them all on the 7th evening. If there where no bids during the first 7-day period, it will become a daily auction. Bids submitted from buyers who intend to occupy the property have a higher precedence than those from investors; in other words, if an investor makes and offer to buy an Austin foreclosure and an owner-occupied buyer also makes an offer on the same property, the owner-occupied offer will win even if the offering price was lower. This is because the government is aware that someone will more likely stop paying on an investment property than their primary residence. Don't think that you can just 'say' that you're going to be owner-occupied and gain an advantage -- I have known HUD to randomly 'check-in' on sold properties by sending someone out to ensure that they are in fact owner-occupied.
Another important difference in buying a HUD home vs. a non-HUD home is that there is no option period, and all foreclosed homes are sold as-is. HUD will give you an opportunity to perform an inspection, however they will not make any repairs to any foreclosed home they sell.
For more information about foreclosures and the HUD bidding process, check out this site http://www.articlefeeder.com/Real_Estate/Things_You_Must_Know_About_Buying_Foreclosures_in_Austin_and_Central_Texas.html
Tuesday, February 10, 2009
Take the Headache out of Moving!
Moving from one house to another is always a challenge, but it doesn’t have to be a nightmare. Here are some simple tips on how to get it done with minimal stress and strain.
· Look at all the alternatives: hiring a moving company, for example, versus renting a truck and doing it yourself. Whichever alternative makes most sense for you, get bids from more than one vendor.
· A few days before the moving company is scheduled to arrive or you’re supposed to pick up your rental truck, call to confirm that everything is on track to happen when it’s supposed to .
· Prepare your change of address cards in advance and send them out as soon as it’s appropriate to do so. The post office, utilities, companies and people you do business with, city hall, friends, relatives – all should be notified of your move.
· Get an early start on packing by concentrating on seldom-used items first. Each box should have its contents and the room those contents belong in written on it clearly.
· Take a hard look at things you seldom or never use and throw away as many of them as you can. The more you throw away, the less you’ll have to move. Every item you throw away is one less item to clutter up you new home.
· Use your extra towels and linens to protect breakables. When your supply of these things is exhausted, crumpled newspaper makes an excellent substitute. Write “Fragile” on all appropriate boxes.
· Put your valuables (such as jewelry) and important documents (birth certificates, car titles, etc.) aside in some safe place where they won’t be misplaced.
· When the house is empty, go back for a thorough final inspection. Check closets, crawl spaces, basement, attic, out-of-the-way nooks and crannies of all kinds. Have a second person make the same inspection separately.
· Clean your new home thoroughly before moving in. It’s infinitely easier that way.
· Decide in advance where you want the heavy furniture. Changing your mind after the movers have departed is no fun – especially for your back!
· Locate all fuses, circuit breakers, and water/gas and electrical valves. Record the meter readings and check the smoke detectors.
· List the phone numbers of the local police and fire stations, doctors, nearby hospitals, etc. Put a copy of your list near each phone.
Above all, plan, plan, plan and plan some more. Make a schedule you can live with, and then stick to it. Preparation and forethought will help you to keep everything under control and finish the move with your sanity and your nervous system intact.
· Look at all the alternatives: hiring a moving company, for example, versus renting a truck and doing it yourself. Whichever alternative makes most sense for you, get bids from more than one vendor.
· A few days before the moving company is scheduled to arrive or you’re supposed to pick up your rental truck, call to confirm that everything is on track to happen when it’s supposed to .
· Prepare your change of address cards in advance and send them out as soon as it’s appropriate to do so. The post office, utilities, companies and people you do business with, city hall, friends, relatives – all should be notified of your move.
· Get an early start on packing by concentrating on seldom-used items first. Each box should have its contents and the room those contents belong in written on it clearly.
· Take a hard look at things you seldom or never use and throw away as many of them as you can. The more you throw away, the less you’ll have to move. Every item you throw away is one less item to clutter up you new home.
· Use your extra towels and linens to protect breakables. When your supply of these things is exhausted, crumpled newspaper makes an excellent substitute. Write “Fragile” on all appropriate boxes.
· Put your valuables (such as jewelry) and important documents (birth certificates, car titles, etc.) aside in some safe place where they won’t be misplaced.
· When the house is empty, go back for a thorough final inspection. Check closets, crawl spaces, basement, attic, out-of-the-way nooks and crannies of all kinds. Have a second person make the same inspection separately.
· Clean your new home thoroughly before moving in. It’s infinitely easier that way.
· Decide in advance where you want the heavy furniture. Changing your mind after the movers have departed is no fun – especially for your back!
· Locate all fuses, circuit breakers, and water/gas and electrical valves. Record the meter readings and check the smoke detectors.
· List the phone numbers of the local police and fire stations, doctors, nearby hospitals, etc. Put a copy of your list near each phone.
Above all, plan, plan, plan and plan some more. Make a schedule you can live with, and then stick to it. Preparation and forethought will help you to keep everything under control and finish the move with your sanity and your nervous system intact.
Friday, February 6, 2009
How Do I Find Out What My Home is Worth?
Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably quick turn around time.
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to share with you.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers. Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably quick turn around time.
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to share with you.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers. Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
Friday, January 23, 2009
Keep It Simple!
Today’s real estate consumer has a lot to consider during the sale or purchase of a home. Be it waiting for the right buyer/seller, mortgage rates, or the moving truck, the experience can take a bit of patience on the part of the consumer. With this in mind, it is incumbent upon real estate brokers/agents/firms to institute services that will the buying/selling process hassle-free.
“Realizing this trend is not going away, the CENTURY 21 System has worked to improve the experience of buying or selling a home through the CENTURY 21 Preferred Alliance Program. The program offers consumers and brokers access to strategic alliances with various links to home-related value added products and services. Making the process easier and much more convenient,” said John McConnell Broker Century 21 First Place.
Among the products and services offered through these alliances are Home Security Systems, CENTURY 21 Home Protection Plans and Budget Truck Rentals, just to name a few. The programs are offered at preferred pricing for all CENTURY 21 clients. Therefore, the programs involved focus heavily on the immediate, yet long-term value of the service/product for the consumer. For example, homeowners will have their lawn equipment, home warranties, and home security systems for many years of use. All of which come as a result of their purchase/sale through the CENTURY 21 System.
“Realizing this trend is not going away, the CENTURY 21 System has worked to improve the experience of buying or selling a home through the CENTURY 21 Preferred Alliance Program. The program offers consumers and brokers access to strategic alliances with various links to home-related value added products and services. Making the process easier and much more convenient,” said John McConnell Broker Century 21 First Place.
Among the products and services offered through these alliances are Home Security Systems, CENTURY 21 Home Protection Plans and Budget Truck Rentals, just to name a few. The programs are offered at preferred pricing for all CENTURY 21 clients. Therefore, the programs involved focus heavily on the immediate, yet long-term value of the service/product for the consumer. For example, homeowners will have their lawn equipment, home warranties, and home security systems for many years of use. All of which come as a result of their purchase/sale through the CENTURY 21 System.
Thursday, January 8, 2009
What is Your Home Style?
Styles of houses vary across central Texas and Austin. From the Cape Cod to the Victorians, the choices are almost endless. Knowing which style you prefer is one of the basic elements in your hunt for the perfect home.
Following is a quick guide to help you recognize and use the professional terms for many of the most prevalent house styles:
· Ranch: these long, low houses rank among the most popular types in the country. The ranch, which developed from early homes in the West and Southwest, is one-story with a low pitched room. The raised ranch, which is also common is the U.S.. has two levels, each accessible from the home’s entry foyer, which features staircases to both upper and lower levels.
· Cape Cod: this compact story-and-a-half house is small and symmetrical with a central entrance and a steep, gable roof. Brick, wood or aluminum siding are the materials most commonly seen.
· Georgian: Popular in New England, the Georgian has a very formal appearance with two or three stories and classic lines. Usually built of red brick, the rectangular house has thin columns alongside the entry, and multi-paned windows above the door and throughout the house. Two large chimneys rise high above the roof at each end.
· Tudor: modeled after the English country cottage. Tudor styling features trademark dark-wood timbering set against light-colored stucco that highlights the top half of the house and frames the numerous windows. The bottom half of the house is often made of brick.
· Queen Anne/Victorian: Developed from styles originated in Great Britain, these homes are usually two-story frame with large rooms, high ceilings and porches along the front and sometimes sides of the house. Peaked roofs and ornamental wood trim, many times referred to as “gingerbread,” decorate these elaborate homes.
· Pueblo/Santa Fe Style – Popular in the Southwest, these homes are either frame or adobe brick with a stucco exterior. The flat rood has protruding, rounded beams called vigas. One or two story, the homes feature covered/enclosed patios and an abundance of tile.
· Dutch Colonial – the Dutch Colonial has two or tow-and-one-half stories covered by a gambrel roof (having two lopes on each side, with the lower slope steeper than the upper, flatter slope) and eaves that flare outward. This style is traditionally make of brick or shingles.
· New England Colonial – This two-and-one-half story early American style is box like with a gable roof. The traditional material is narrow clapboard siding and a shingle roof. The small-pane, double-hung windows usually have working wood shutters.
· Southern Colonial –this large, two-to-three-story frame house is world famous for its large front columns and wide porches.
· Split-levels: Split-level houses have one living level about half a floor above the other living level. When this type of home is built on three different levels, it is called a tri-level.
These are just a few of the many styles of homes available across the country – some are more prominent in different areas than others. Knowing home style terms will help you zero in on the type of house that will fill your needs and suit your taste.
Following is a quick guide to help you recognize and use the professional terms for many of the most prevalent house styles:
· Ranch: these long, low houses rank among the most popular types in the country. The ranch, which developed from early homes in the West and Southwest, is one-story with a low pitched room. The raised ranch, which is also common is the U.S.. has two levels, each accessible from the home’s entry foyer, which features staircases to both upper and lower levels.
· Cape Cod: this compact story-and-a-half house is small and symmetrical with a central entrance and a steep, gable roof. Brick, wood or aluminum siding are the materials most commonly seen.
· Georgian: Popular in New England, the Georgian has a very formal appearance with two or three stories and classic lines. Usually built of red brick, the rectangular house has thin columns alongside the entry, and multi-paned windows above the door and throughout the house. Two large chimneys rise high above the roof at each end.
· Tudor: modeled after the English country cottage. Tudor styling features trademark dark-wood timbering set against light-colored stucco that highlights the top half of the house and frames the numerous windows. The bottom half of the house is often made of brick.
· Queen Anne/Victorian: Developed from styles originated in Great Britain, these homes are usually two-story frame with large rooms, high ceilings and porches along the front and sometimes sides of the house. Peaked roofs and ornamental wood trim, many times referred to as “gingerbread,” decorate these elaborate homes.
· Pueblo/Santa Fe Style – Popular in the Southwest, these homes are either frame or adobe brick with a stucco exterior. The flat rood has protruding, rounded beams called vigas. One or two story, the homes feature covered/enclosed patios and an abundance of tile.
· Dutch Colonial – the Dutch Colonial has two or tow-and-one-half stories covered by a gambrel roof (having two lopes on each side, with the lower slope steeper than the upper, flatter slope) and eaves that flare outward. This style is traditionally make of brick or shingles.
· New England Colonial – This two-and-one-half story early American style is box like with a gable roof. The traditional material is narrow clapboard siding and a shingle roof. The small-pane, double-hung windows usually have working wood shutters.
· Southern Colonial –this large, two-to-three-story frame house is world famous for its large front columns and wide porches.
· Split-levels: Split-level houses have one living level about half a floor above the other living level. When this type of home is built on three different levels, it is called a tri-level.
These are just a few of the many styles of homes available across the country – some are more prominent in different areas than others. Knowing home style terms will help you zero in on the type of house that will fill your needs and suit your taste.
Tuesday, January 6, 2009
In this case, silence isn't golden!
When trying to sell a home, silence isn't always golden especially when you're expecting your real estate agent to call. In fact, it's one of the leading complaints among sellers in the real estate market. Often times you find an agent who is more than willing to take on your listing, but once the relationship is made, the seller enjoys getting a call at least once a week.
"A seller should establish with the agent up front the expectation that regular communication will occur. Even if it's just to check-in, the seller will be more satisfied being kept 'in the loop'" said John McConnell Broker with Century21 First Place.
Keeping the communication lines open between the two parties assures the seller that the agent is keeping them apprised of any and all offers. In addition, agents often provide valuable tips on why prospective buyers weren't interested. Often times, an agent is privy to the buyer's dislikes of the property. For instance 'this room's too dark' or 'the kitchen has a funny smell.' This allows the agent to give the seller constructive feedback and offer important tips on how to make the home more attractive to future buyers.
If you're a seller and are not hearing from your broker, be sure to keep calling them until they get the message that you expect a regular update. If the broker doesn't return your calls, leave a message for your broker's office manager. The manager will see to it that your broker becomes more attentive to your listing.
Selling a home can be a lot of work and sometimes quite stressful. It is incumbent upon an agent to satisfy the seller's expectations of routine updates, this will ensure the possibility of future business not to mention a successful sale. Furthermore, as a seller you must demand the communication exchange between you and your agent. If both parties work in a cooperative effort, the selling experience will be more successful and enjoyable for both the agent and the seller involved.
"A seller should establish with the agent up front the expectation that regular communication will occur. Even if it's just to check-in, the seller will be more satisfied being kept 'in the loop'" said John McConnell Broker with Century21 First Place.
Keeping the communication lines open between the two parties assures the seller that the agent is keeping them apprised of any and all offers. In addition, agents often provide valuable tips on why prospective buyers weren't interested. Often times, an agent is privy to the buyer's dislikes of the property. For instance 'this room's too dark' or 'the kitchen has a funny smell.' This allows the agent to give the seller constructive feedback and offer important tips on how to make the home more attractive to future buyers.
If you're a seller and are not hearing from your broker, be sure to keep calling them until they get the message that you expect a regular update. If the broker doesn't return your calls, leave a message for your broker's office manager. The manager will see to it that your broker becomes more attentive to your listing.
Selling a home can be a lot of work and sometimes quite stressful. It is incumbent upon an agent to satisfy the seller's expectations of routine updates, this will ensure the possibility of future business not to mention a successful sale. Furthermore, as a seller you must demand the communication exchange between you and your agent. If both parties work in a cooperative effort, the selling experience will be more successful and enjoyable for both the agent and the seller involved.
Monday, January 5, 2009
Sell Your Central Texas Home in a Buyers Market
Your boss has just given you the career opportunity of a lifetime, but the job is in another state.
Soon you discover that moving your family to another city may be one of life’s hardest tasks. The thought of leaving behind old friends and schools for a strange town can be frightening. The biggest challenge of all, however, it to preserve the equity in your housing investment so you will be able to purchase a similar home in the new location.
Not to worry. Even in these uncertain times homeowners can sell at very satisfactory prices in a reasonable period of time. The secret? Pay attention to details, utilize marketing savvy and price the home to sell quickly.
The following tips can help you get that “sold” sign up fast.
SELECT A SAVVY REAL ESTATE AGENT…one with a successful track record in your neighborhood, backed by resources that extend into outside housing markets. Make sure the agent prepares an effective listing of your property –one that outlines all the features that make your home unique. Also, it’s smart to prepare a separate fact sheet that can be distributed freely to all interested buyers. In soft time, offering the agent a bonus if the house sells within 60 days can work to the homeowner’s advantage.
OFFER THE RIGHT PRICE. Start with a price that is reasonable for your neighborhood and the size of your home. Comparing the price of your home with similar nearby listings is an easy way to be sure you are offering the right price. Comparing the opinions of two independent appraisers will also help you avoid over-pricing.
PAY PART OF THE CLOSING COSTS…usually 3 to 5 percent of the loan amount. This will attract those first-time buyers who are short on cash for down-payment and closing costs. Offering to turn over personal property such as washing machines and dryers, refrigerators and flower boxes can also attract buyers looking for the best deal.
ACCEPT CONTINGENCY AGREEMENTS. Make your sale contingent upon the sale of the buyer’s home. This takes away buyers’ fears of juggling two properties and mortgages at the same time.
TAKE ADVANTAGE OF THE CORPORATE RELOCATION TRADE. Be sure that your broker is connected to a relocation network – one capable of brining in buyers from distant places. And, of course, try to get your employer to provide you with relocation assistance, too.
MAKE YOUR HOME STAND OUT. Fresh paint and flowers can go a long way in impressing buyers. Tend to such details as moving the lawn, fixing stubborn door knobs and sliding doors. Remember, your home’s appearance on the day it’s shown can make or break a sale.
The bottom line is that sellers should take the time to make their home as attractive as possible. Compiling helpful tips for the buyer about school districts, utility bills and directions to the nearest shopping mall can go a long way in selling your house quickly.
With a little work and an active real estate agent, chances are good that your house will sell fast in today’s buyer’s market.
Soon you discover that moving your family to another city may be one of life’s hardest tasks. The thought of leaving behind old friends and schools for a strange town can be frightening. The biggest challenge of all, however, it to preserve the equity in your housing investment so you will be able to purchase a similar home in the new location.
Not to worry. Even in these uncertain times homeowners can sell at very satisfactory prices in a reasonable period of time. The secret? Pay attention to details, utilize marketing savvy and price the home to sell quickly.
The following tips can help you get that “sold” sign up fast.
SELECT A SAVVY REAL ESTATE AGENT…one with a successful track record in your neighborhood, backed by resources that extend into outside housing markets. Make sure the agent prepares an effective listing of your property –one that outlines all the features that make your home unique. Also, it’s smart to prepare a separate fact sheet that can be distributed freely to all interested buyers. In soft time, offering the agent a bonus if the house sells within 60 days can work to the homeowner’s advantage.
OFFER THE RIGHT PRICE. Start with a price that is reasonable for your neighborhood and the size of your home. Comparing the price of your home with similar nearby listings is an easy way to be sure you are offering the right price. Comparing the opinions of two independent appraisers will also help you avoid over-pricing.
PAY PART OF THE CLOSING COSTS…usually 3 to 5 percent of the loan amount. This will attract those first-time buyers who are short on cash for down-payment and closing costs. Offering to turn over personal property such as washing machines and dryers, refrigerators and flower boxes can also attract buyers looking for the best deal.
ACCEPT CONTINGENCY AGREEMENTS. Make your sale contingent upon the sale of the buyer’s home. This takes away buyers’ fears of juggling two properties and mortgages at the same time.
TAKE ADVANTAGE OF THE CORPORATE RELOCATION TRADE. Be sure that your broker is connected to a relocation network – one capable of brining in buyers from distant places. And, of course, try to get your employer to provide you with relocation assistance, too.
MAKE YOUR HOME STAND OUT. Fresh paint and flowers can go a long way in impressing buyers. Tend to such details as moving the lawn, fixing stubborn door knobs and sliding doors. Remember, your home’s appearance on the day it’s shown can make or break a sale.
The bottom line is that sellers should take the time to make their home as attractive as possible. Compiling helpful tips for the buyer about school districts, utility bills and directions to the nearest shopping mall can go a long way in selling your house quickly.
With a little work and an active real estate agent, chances are good that your house will sell fast in today’s buyer’s market.
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