Will Austin home prices come down anytime soon?

March 31, 2007 | Leave a Comment

The answer to this question in a nutshell is, no.  By all the trends and statistics, the Austin real estate market will simply stable out or continue to increase steadily.

Austin never was overheated when compared to California, Florida, or other hot markets.  Folks in those markets saw dramatic increases almost overnight. Austin’s higher end real estate did see dramatic increases, but the first and second home markets in Austin saw steady growth.  That has been our saving grace- steady growth.  It is because of that that we are not crashing and burning like many other markets in the nation.

This may sound like bad news, but it’s not!  This fact has allowed many first home buyers to still be able to buy- the home is not completely out of reach.  Buyers have had a chance to adjust to slightly higher price per square foot as opposed to being completely unable to qualify.  While the higher end property has seen great growth in value, it is (to be honest) where the prices should have been years ago. We’re still adjusting, and leveling.

So here is my advice- if you are a new home/first home/second home buyer, you should probably get off of the fence and buy.  I gave this same advice three years ago and honestly, I see people who did not take my advice and are now paying 5.50% interest rates or higher when three years ago the going rate was 4.99%.  Rates and home prices are still excellent, but waiting for something to happen that would swing home prices downward would probably set up a scenario for something much more gloomy.

So get off the fence, take the plunge, make a move or you never know, I may be writing to you three years from now about how you should have listened to me- again.

I was going to close, but let me give another piece of advice- if you’re already out of qualifying, meaning the home you looked at last year is now outside of your qualifying range, take a look further outside in the ‘burbs. Look for brand new subdivisions, and when I say new, I mean just breaking ground in a first phase.  You’ll many times be pleasantly suprised on how much you can get for your buying buck!  But don’t tell anyone else, it’s just our little secret…

Happy Buying!

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Buying, Market Conditions 

Austin Realtor Wives (and husbands too)

March 30, 2007 | Leave a Comment

A day in the life of a REALTOR is never easy.  With over 90% of our day spent on the phone, all while driving from A-Z, it can be hard to live normally.  We spend our days, nights, and most weekends on call to our clients, faithfully, and without much complaint.  We are advocates and guides to/for our clients, multitasking marketing, negotiations, and yes, always talking to new clients and customers about today’s market.  I cannot count how many times while out to dinner or at the mall I’ve engaged in hour long conversations about whether it is or is not a good time to sell or buy, all while my loving wife stands quietly by with a smile on her face.

It is because of her support and love of what I do that I can focus so much energy on the business of helping others buy and sell.  It is because of her respect of my business and my clients that my clients are so well served.

However, often times, she has things to say- she loves Austin Real Estate as much as I do- after all she lives my business right along with me.  With all the buzz around blogging, she’s found the perfect outlet to do just that- talk about the Austin Real Estate Market.  This week she launched her blog. Knowing that many of my weekly readers are in fact REALTORS, she thought it might be a great way for all spouses of the industry to talk, brag, vent, comment on the market/spouses they support every day.

So fellow REALTORS, give your spouse the link above and the opportunity to talk about their favorite subject- YOU!  Many folks outside of our industry do not realize just how small the world of real estate really is, and that in large part we may be competitors, but we are also family in many respects.

So be sure to go by and comment, I know she would love to hear from you that I did my part to promote her as much as she promotes me! I know our clients and customers would love to read about us too!

Happy Blogging!

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Human Interest, Other Stuff 

Selling your Austin home in the near or distant future? Here are some spring forward ideas that add value!

March 28, 2007 | Leave a Comment

So your game plan is to sell your home sometime in the next six months to a year, but you are not exactly sure.  With this in mind, spring changes to the landscape or the house in general are probably going to go to the bottom of the priority list this spring- most sellers will do nothing until they have to. Well, I have a few ideas you might want to think about that will bring in higher offers.

Inevitably, you will have a REALTOR in your home to advise you on what you will need to do in order to bring your home up to par with the rest of the market.  This will cost you money, especially all at once, so here are the suggestions…

*Instead of putting off the accent wall you painted teal green, go ahead and update it!  Choose a color that that is neutral in tone, and no, it does not have to be off white. 

*Is your landscape looking rundown? Spice it up!  But not with flowers, think low maintenance.  If you are going to be selling in the fall, then plant some fall flowering shrubs!  Thinking of putting in a deck this spring? Excellent!  A deck adds value to any home so long as your yard is not on the smaller side.  If it is, you may want to think about a less imposing stone extension to your patio.

*Was your dream to add granite counters in your bath or kitchen, or both?  DO IT!  You can never go wrong with granite so long as the granite you choose is on the mild side.  I would avoid loud colors or pattern, always think neutral!

*Have you always wanted to spruce up your front entrance with a painted door?  GREAT IDEA!  Black is a favorite with buyers these days, also red, or stained wood, you pick! But remember, someone else has to love it as much as you do!

*Have you been meaning to remove that ugly border trim you put up ten years ago in the kitchen and bathroom?  Fantastic idea!  Remove it and go ahead and paint those walls while you’re at it.  Bring your rooms back to a palette a new buyer will want to work with, not see as a repair!

Whether updating your appliances or simply getting rid of the weeds, this spring will add even more value to your home in the future when you do enter the real estate market.

All of these things can be done now during your normal Spring Spruce Up!  Just do it, forward thinking!  Give your home a fresh look today, impress the neighbors and your friends; after all, they may be your next buyer in the next year!  Doing this today will save you time and money down the road and increase your home’s value in the process.

If you would like a consultation on your home this spring about your listing down the road, call today!  Most agents will come out free of charge to help get your spruce up moving in the right direction. Or you can check back here every Thursday for a new set of ideas! 

Happy Buying Selling!

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Other Stuff, Selling 

Who Will Represent You in the Fast and Furious Texas Real Estate Market?

March 27, 2007 | Leave a Comment

Let me set the stage- you’re charged with criminal charges, it is your first offense and the charges are not that serious, but are difficult to defend against.  You know nothing of the law but common sense and morals, and believe yourself to be either innocent, or simply negligent at the most.

Would you walk into a courtroom alone and choose to represent yourself?  If the judge asked you to step into a room with a prosecutor in an attempt to negotiate your case, would you do it alone?  Of course you wouldn’t.  Your freedom is at stake as well as your reputation and more.

Real Estate is said (and I believe it to be true) to be the most important financial decision you’ll ever make.  You’re asking for a very high amount of money in the form of a loan that you will be paying back for at most 30 years, in some cases, 40.  A bad home, a bad loan, and a bad decision could be what equates to a very expensive prison term that will probably be hard to overturn in this case.

Unfortunately, many people every day read stale, canned information on real estate websites.  Many times that information comes from those who would call themselves educators, but I call them opportunists.  Teaching you to buy real estate on your very own with their flat rate fee being the only thing standing between you; a sales agent at the time of negotiation, sales contracting, inspections, appraisals, lending, the underwriter, and anything else that can come up in the transaction could cost you more in the long run than the dollars you saved with a discount brokerage.  There is rarely time to consult a webpage during any of these snap decisions in negotiating.  Not knowing the law, your rights, or what is an acceptable solution or practice could lock you into a cell of huge financial proportions.

My advice (and not just because I am REALTOR) is to HAVE A REALTOR!  In my blog I never ask personally for your business because I try hard to remain objective.  I do not just want you to pick any old REALTOR; you need one who understands your goals, your needs, and your wants.  Those three factors will keep you free and make each and every one of your mortgage payments happy payments.  Payments you can be proud of.  If I were in the above scenario, the last thing I would be worried about is the agent’s fee.  I want the very best to represent me, knowing I will save thousands over what the agent will make in even a mild version of the above case.

Happy Buying,

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Blog, Buying, RE Practice, Selling 

Lennar reports 1st quarter profits plunge 73%. What does this mean to Austin and the homebuyer?

March 27, 2007 | Leave a Comment

Let’s first put this in perspective with a quote, “while some markets are performing better than others, the typically stronger spring selling season has not yet materialized,” said Stuart Miller, Lennar’s President and Chief Executive. “These soft market conditions have been exacerbated by the well-publicized problems in the subprime lending market.”

This is actually buyer good news in my opinion!  Product is sitting on the market a little longer and builders had anticipated a strong spring beginning.  It has yet to happen.  Meaning inventory is waiting on possible buyers, and often at fantastic discounts to you!  Unfortunately, Austin is one of those markets that is performing at a resonable level- not too hot, not too cold.  Warm is how I like to describe it, meaning the discounts may not be as deep as in other areas of the country, but nonetheless, great deals are to be found all over Greater Austin.

So if you’re on the fence waiting for the perfect time, I can only tell you that you may want to consider today as that time.  My suspicion is that the spring rush will come, and when it does, the bargins may not be as easy to come by.

As for the subprime effect, remember- this will really only effect a subprime borrower who can expect tightened conditions on their loan and higher expectations on qualifying.  A savvy lender and REALTOR combo can help you navigate the new changes in sub-lending.

Happy Buying!

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Buying, Market Conditions 

How Will All The Drama Over The Sub-Prime Market Affect You?

March 20, 2007 | Leave a Comment

Well, you once thought your 600 credit score was a decent FICO score, but guess what- it might not be for much longer! 

Shoddy lenders have apparently cut corners in writing loans that have defaulted, thus opening the door to speculation and investigations.  Obviously, heads will have to roll and the noose will tighten on buyers in the very near future.  New restrictions and more regulation will probably make it harder for average Joe with some dings to sell himself to the faceless underwriter (the “decider” if you will).

I’ll give you my advice whether you want it or not.  If you have credit dings, or credit issues that you feel may cause a problem, you’re going to need a good REALTOR and their lending relationships.  Why?  Because!  While a lender can only tell you yes or no, a REALTOR’S job is assist you in finding solutions to dents; a REALTOR has something to lose, namely you. A quality REALTOR can help put a face to your file, giving you a chance to tell your side of your credit story. 

So before you step into that black hole of lending, grab yourself a REALTOR.  There are no promises in the world of Real Estate, but you’re stacking the deck in your favor when you have an advocate on your side! Many buyers fear calling a REALTOR because of rejection, but that is just silly. Keep calling until you find a REALTOR that you’re comfortable with, and that understands you; because as a REALTOR, I know the solution to your buying obstacle is just waiting for your problem to come along.

Happy Buying,

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Buying, Market Conditions 

DR Horton says 2007 New Home Sales Will Suck, Will They?

March 19, 2007 | Leave a Comment

I personally do not know whether Horton’s sales will suck or not, one can only speculate.  But I can tell you this- THE TIME TO BUY A NEW HOME IS RIGHT NOW! With Horton building 8 of 10 homes sold in America, believe me, they’re going to keep it that way!

While it is true that home prices have increased slightly and incentives have been reduced a bit, the reality is that there are still plenty of reasons to buy right now.  A prime example is Cedar Park Town Center- the price of the same floorplan may have increased over two years ago, but the options in the home at purchase have also increased, giving buyers even more for their hard earned buck and other builders are following their lead.

All in all, Austin has been hot, but never overheated.  Steady growth has ruled the day so buyers should take advantage while this fact remains true.  National market speculators have been screaming about a housing bubble bursting, but the reality is, Austin has never been stronger!

Happy Buying,

That Real Estate Guy

Posted by Benn, Single Pointe CEO | Filed Under Austin News, Blog, Buying, New Construction