Traffic Solutions

I was just channel surfing and came across a city council meeting. Their discussion was the new rail system. I started thinking of 4 ideas I wish their discussion would turn towards;

1. create an upper deck that was actually non stop along Loop 360 (imagine a true 'Loop' where it is already named a 'Loop'). This loop would provide 'north south/south north' movement for all cars/trucks and a rail line could be installed at the same time.

2. go back to the owners of the Missouri Pacifc rail line running on boths sides of Loop 1 (another non loop that is named a loop)/MoPac ("mo" coming from Missouri and "Pac" coming from Pacific) and beg to take them up on their earlier offer (years ago) about using that line for a transit system. They offered years ago and nobody followed up on it - so the story goes....i think today there are new owners of this line.

3. round up all urban area Home Owner Associations plus the Historic Commission. Get this entire body of Austin Citizens to agree to allow more flexible terms for business to open up in our historic neighborhoods so urban area residents can walk to a restaurants & other shopping. We don't need to go over the top like Houston, but just a little flexibility in this area could reduce traffic, noice polution, use of gas, allow for some exercise....maybe even allow some duplex construction to assist in the declining elementary school population.

4. talk to the operators of the Zilker Zepher, they seem to know how to run a profitable train (this is borrowed from a radio show I was listening to and a caller who offered this suggestion). Seriously though, make the transit system fun for kids and help get the word out "referral style"

What to do with my paid for house...?

When owners of real property who are close to retirement call a Realtor it is not always about selling/listing immediately or in the next year. Sometimes the owner just wants to begin the discussion of "what to do". The owner has a significant position if they have owned the real estate for a long time & it is paid for. Knowing what to do often begins with what the real estate is worth and then what could be done with that capital if the property was to be sold. Here are some conversation points when you or a family member has lived in a home or owned real property long enough to pay it off AND the conversation turns to what could be next;

1. do you want to stay in the house forever (leave the house feet first)? what areas of the home are "tricky" and need some modifications for safety and ease of moving about the house...

2. is the house keeping you from something you have always wanted to do (travel, move into a high rise loft in your downtown, move closer to family living in another location)? further down might be an answer in #8

3. are you worried about a looming repair (major roof work, wood rot)? get bids, might be lower than you think

4. have you always wanted to fix the house up a certain way with new appliances and energy saving modifications to reduce monthly bills (this brings up #8 on this list again)? have a Realtor referr a great builder who will discuss options without pressure to take immediate action

5. can you rent the property out and also move on to the next phase of your life? Keeping the asset of the real estate and travel-move closer to family (property management is possible at around 7-9% of rent each month)

6. is enough money tied up in the equity of the paid for property to make a difference (going back to #2 above) in retirement if you decide to sell?

7. could you be creative and build a rental on the property for monthly cash flow? is the lot big enough for both your residence and a rental producing property?

8. do you have a referral to a Reverse Mortgage lender? don't disrupt your life and move, stay put and get your money while you need it.

9. would your neighborhood allow you to cut the house in half for a duplex? this would allow someone to stay in their home while also reduce costs to generate income. Don't do anything but add a kitchen and seperate the house into 2 units.

10. how about a roomate? is there that perfect person who is dependable, reliable to generate monthly income but reduce expenses to do so?

Get together with your financial planner, CPA, Banker and get sound advice based on personal goals.

Don't fall for this one from my industry "I have a buyer"

I hear about this one roughly 3 times a year from clients. The scenario is a home owner or owner of real property has recieved a post card from a Realtor which says, "I have a buyer for your home".

It just ain't so. If they had a buyer, the owner would be getting a phone call. Similar to a bank needing to talk to you about important changes with the account, we Realtors want to talk to you quickly when we have someone interested in buying your home. We don't want to wait for 3 or 5 days on the postal servcie to see if you will call us about our 'interested buyer". When I have a buyer desiring a home not on the market here are a few action steps; a note left on the owners door, a phone call to owner or multiple people in the area to track down the owner, a one time listing agreement for this one buyer, a fully written offer sent to owner.

The listing agreement is important because it defines certain aspects to the transaction. I don't believe it needs to be a formal relationship of agency representation (i.e. seller is represented by any Realtor) but it clarifies some important dates and responsibilities that need clarification.

The post card or letter from a Realtor which says, "I have a buyer for your home" is a technique to get a listing appointment and be the agent for the home owner. If you like working with strangers call them and set up a time to talk. If the postcard got your interest up call your preferred Realtor and learn a little more.

Staging made simple

I was viewing a large number of homes yesterday. All of the properties were still 'for sale' and not 'pending' or 'sold'. There was a real trend in these properties that had not sold yet- the lack of preparation and buzz word of 'staging'. I think the actual work of 'staging' is an art. Knowing exactly the best fit for furniture and chosing the best colors is a skill left for designers. My focus today is simply being prepared for the buyer every single day your on the market for sale. This is not easy and another reason why pricing it to sell in the 30 or 60 days is so important (and not just so a salesperson can make a commission). If I were to give feedback to each of the homes I saw yesterday here is what would be said; "clean windows, freshen up the smell, remove weeds in the driveway/walkway, clean up the flower beds, freshen up the paint in/out, remove extra furniture, reduce photos of all your kids/family/wedding day (and just have that one favorite of each), clean up the dead bugs, throw trash away in each trashcan, get a new shower curtain and make it one that is very simple, deep clean your oven (and know buyers will look into your frig), hang your garden hose on a designated rack near the faucet, power wash the old deck, find a place other than the house for your barking dog (realize your quiet dog will freak potential buyers out), take away the old outdoor swing that looks bad (even though the kids love it).
The alternative would be to just sit on the market, make payments, be asked to reduce your price until you have fired multiple Realtors and conceed to actually do the above or reduce your price or both.

The most important of the 3 "first impressions"

Everyone knows of the importance in the 'first impression' and how small of a window they can be. This principle ranges from personal meetings to showroom floors. The platform of the house listing as a showroom floor is my focus. When you put your house on the market be focused on all 3 of these first impressions. 1st impression - picture and content on line. What is the main picture? The very first picture should be of the front otherwise buyers/viewers will wonder ''what is wrong? why is the front of the property not shown?". I listed and I have seen other listings when the main feature of the property is the back yard (extensive landscaped pool, view of downtown). It is a great idea to put some time and capital in staging the entry of the property; landscaping, painted front door, clean windows, removal of the solar screens and power washing are some examples. 2nd 'first impression' - the drive by. The potential buyer is might have been referred by one of your neighbors OR seen internet marketing OR just driving by randomly. Our 2nd impression takes us back at what the buyers will see from the street while in their car - the front of the house. They are not going inside at this point, just driving by very s-l-o-w-l-y. This is also where they will cruise the neighborhood and your pricing will be important. 3rd 'first impression' - the buyer has viewed pictures of the property (flyer, email, internet tour), driven by and is now about to walk inside. You have worked on the exterior front, your Realtor has supplied marketing which captures images of the property and verbalizes its attributes, now the last 'first impression' is upon us.... How is the lighting? Change out all lightbulbs for the brightest OR the best lighting for the house. Open up all window coverings because natural light shows the square footage. What will their sense of smell register? Hopefully not any pet odors nor smoke odors. It is best to avoid general plug in scents and best to just have your "showroom floor" smelling like a clean home (a great referral is Pine-Sol and Bleach). Have you "staged"? Have a garage sale and make some $ to fund additional staging. Your Realtor will have some great advice. Your favorite store "stages" (from Nordstrom to Academy) and so do the most successful Hotels so you should as well. Respecting the 3 first impressions will increase your chances of selling for more and at a faster pace to reduce carrying costs. This is especially true if the buyer has to see the entire property or every room to really "get your homes value". Get the buyer excited at each of the 3 first impressions and you will soon be out of your home.

Buyers Best Friend - The Option!

Found that perfect home but still have a number of important questions? Don't want to make the offer until you get those answers? Here is your best friend for this scenario - The Option. If you walk into that one home and begin to see your furniture in the rooms plus areas to host friends/family go after it with an offer. Don't wait around for the answers to remaining questions, formalize the price your willing to pay (or start with as the initial offer if you think the house is priced too high). Your Realtor will assist in the data to hone in on the numbers of your offer. "But what about the remaining questions?" In Texas you can create your offer with an option period which takes the property off the market upon an agreed to set of terms (price, close date, etc.). I use and see a lot of 10 day option periods. 7 days work, less than 7 can be more common when the market is more "seller friendly" or your competing with another buyer (0 days in a red hot seller market). For those properties that have a ton of issues go over 10 days and explain why to the seller, i.e. "I need 12 or 14 days to do the normal inspections and Q&A/processing but also spend time with a contractor or repairman". Using the option period really helps capture the home you like so nobody else gets it. Then you can begin to learn about those easements, approval of a pool, what is the zoning, how much something relating to owning the home will cost. If you discover information that changes your mind about the property, that option allows you a time period to re-negotiate or cancel the offer AND you get your earnest money returned.

New Construction and Value of your Realtor

If you are thinking of building a home (custom or high volume builder) lean heavily on the services of your preferred Realtor! This is not the scenario to venture into a real estate transaction without your Realtor, quite the opposite. It is so easy to 'walk' the site during construction and have a conversation with the builder or builder rep regarding an upgrade which gets lost at the end. And while you are crazy busy working hard to fund this new home it is super easy to lose track of time and forget to schedule that 'phase inspection' you want done on the foundation or rough plumb. Having your good preferred Realtor there throughout the process supports documentation and procedural aspects to construction of a home. Having a paper trail for those promised upgrades is vital. And if there is situation that requires a re-negotiation what better person that your preferred Realtor to help. The Builder gets so overwhelmed with the details and without bad intention can forget what was promised. Last, DO NOT CLOSE UNTIL YOUR FINAL PUNCH LIST IS SATISFACTORY! Do not go to closing and sign the closing documents unless you are ok with what is remaining. If this list is short and simple and within reason, just be aware it might never be attended to. And if the final 'touch ups' / repairs do get attention, is is possible to not get the best of service or work AFTER you have funded the project. This is not a shot at the builder, they get swamped and over whelmed with all the details of the new homeowner (and they have just a few emotional home owners).

New Home Construction & Value of your Realtor

Building a home (custom or "large volume" home) and discussing the details without your Realtor present is not a good way to utilize your Agent. This leads to a ton of issues that rarely get worked out and leave a bad taste in the mouth of the buyer principal. If your looking at building a home, lean heavily on your preferred Realtor. Every step of the process needs documentation. Work orders, modifications, future promises on upgrades, notifications to inspect at a given level of construction all fit into the type of thing a good Realtor does throughout the escrow. It is a good idea to check on the progress but getting into a dialogue w/out your Realtor knowing about it (and documenting the discussion on paper with signatures from both builder and buyer) can lead to trouble at the end.
Last, and this is huge for you first time buyers - DON'T CLOSE UNLESS YOUR HAPPY WITH YOUR FINAL WALK THROUGH!! If you are certain the items on the final punch list could be left incomplete and you would be ok, go to closing and fund that project. BUT if there are still some relatively large 'to-do's' on that list do not fund the closing. Go ahead and digest having that Thanksgiving Day meal at Luby's (a local cafeteria) or paying the extra sur charge at the rental property. If you truly want it done and done right, hold your ground and wait to close. You will get everybody and their proverbial dog focused on your home.
In a new neighborhood with a high volume of homes being constructed, the "Super" (lead General Contractor of all construction) gets so overwhelmed with all the details. Having knowledge of what was written and agreed to plus any heads up on poor workmanship helps him and the rest of the neighborhood.

Free sports entertainment in ATx.!

If you like football, especially college football, and your in Austin, Texas today your in luck! The Longhorns host their final spring scrimmage open to the public. Even if you are interested in another team this is still Division 1 football. Festivities for the kids started at 11:30am and actually practice begins at 2pm. This is a great way to kick off the 160+ game prof. baseball season! Across the street from the stadium is a great museum, Texas Natural Science which is also free and great for kids. http://www.utexas.edu/tmm/

Sources for Values

Worth Monkey is a good site for checking gadget costs. Just enter the gadget you want to sell. The site will comb other sources to determine the current price. You'll be able to select a competitive price quickly. It's also great if you're thinking of buying used gear. http://worthmonkey.com/