Have you seen the Austin City Hall? It is described as "a unique landmark...", "...informality, friendliness, environmental sensitivity and innovative technology". I think it is a cool addition to downtown Austin wonder but wonder what the purpose is of the sharp angles on the north side. Is that good fung shui?
With all the grief the city of Austin gives to applicants for building permits AND all the rejections from numerous neighborhood communities / HOA's to new residential projects how did the City Hall get passed? I find parts of the City Hall's architecture so odd. If the city hypothetically passed this project I doubt the historic commission HOA would go for it.
Take a look, this city hall looks nothing like the structures around it built in 1880-1920.
Thursday, June 30, 2011
Lets discuss this again...
This is a repeat but so important and so necessary to discuss again and again.
In Texas, when you sell / buy a residential property there is likely a time period in the offer called "the option period". This consists of days given from the seller which is paid for by the buyer. An example is 7 to 10 days worth roughly 1% of the earnest money. This allows the buyer to perform their inspections and have leverage should something surprise them on condition (integrity issues of the house).
You start with the general inspector. Then if necessary you get licensed contractors (A/C, Plumbing) to follow up with issues the general inspector MIGHT have found. These general inspectors are not always accurate or correct. Their findings on specific issues could lead to necessary repairs. However their findings could also be wrong. Complete and accurate analysis of cooling/heating/plumbing should not be left to a general inspector. This is not a knock on the general inspector, they have waaaaay to much to inspect. Here is how these go down.
Go under contract Monday afternoon. Your Realtor gets from you the inspector to call or refers some to chose from. The general inspector visits the house by Thursday/Friday at the latest. The report is written and a copy is sent BUT THE BUYER SHOULD BE PRESENT FOR A WALK THROUGH / OVERVIEW OF THE GENERAL INSPECTION. Following the step of being present for the end of your general inspection you/the buyer will know who if anyone else needs to be called. You don't need to wait for the written report. Does the roof need further investigation? Plumbing? a/c? electrical? Being available to verbally go through the generally inspectors findings allows insight to the written report AND gives direction for your Realtor to call his vast supply of contracting resources to further answer the next round of inspections (roof-plumbing electrical). In this scenario you have calls to the plumber (as an example) who visits the house Friday-Saturday-Monday to finalize what issues might/might not exist. By Monday late afternoon you are either comfortable with the facts you have OR are in re-negotiations of the terms OR have specifically asked for an extension of the option time period. Extensions are possible but not guaranteed. The best chances of an extension exist when a seller learns of exact reasons or issues being further investigated.
As a listing agent I expect buyer/buyers agent to be using their time of this option period well. 7 days does not seem like a lot of time but with the right experienced Realtor and commitment from THE buyer principal all can be accomplished.
In Texas, when you sell / buy a residential property there is likely a time period in the offer called "the option period". This consists of days given from the seller which is paid for by the buyer. An example is 7 to 10 days worth roughly 1% of the earnest money. This allows the buyer to perform their inspections and have leverage should something surprise them on condition (integrity issues of the house).
You start with the general inspector. Then if necessary you get licensed contractors (A/C, Plumbing) to follow up with issues the general inspector MIGHT have found. These general inspectors are not always accurate or correct. Their findings on specific issues could lead to necessary repairs. However their findings could also be wrong. Complete and accurate analysis of cooling/heating/plumbing should not be left to a general inspector. This is not a knock on the general inspector, they have waaaaay to much to inspect. Here is how these go down.
Go under contract Monday afternoon. Your Realtor gets from you the inspector to call or refers some to chose from. The general inspector visits the house by Thursday/Friday at the latest. The report is written and a copy is sent BUT THE BUYER SHOULD BE PRESENT FOR A WALK THROUGH / OVERVIEW OF THE GENERAL INSPECTION. Following the step of being present for the end of your general inspection you/the buyer will know who if anyone else needs to be called. You don't need to wait for the written report. Does the roof need further investigation? Plumbing? a/c? electrical? Being available to verbally go through the generally inspectors findings allows insight to the written report AND gives direction for your Realtor to call his vast supply of contracting resources to further answer the next round of inspections (roof-plumbing electrical). In this scenario you have calls to the plumber (as an example) who visits the house Friday-Saturday-Monday to finalize what issues might/might not exist. By Monday late afternoon you are either comfortable with the facts you have OR are in re-negotiations of the terms OR have specifically asked for an extension of the option time period. Extensions are possible but not guaranteed. The best chances of an extension exist when a seller learns of exact reasons or issues being further investigated.
As a listing agent I expect buyer/buyers agent to be using their time of this option period well. 7 days does not seem like a lot of time but with the right experienced Realtor and commitment from THE buyer principal all can be accomplished.
Tearing down a house part 1 of 2
Some Austinites can get upset when they see a home with age (i.e. built around 1930 or so) get torn down. Sometimes this tear down can cause anxiety, with the thought process being the builder/person doing the tear down has just removed a perfectly good house and will now develop/build a new structure that will be ugly and not part of the original fabric of the neighborhood. The animosity and the level of distrust can reach obscene proportions. The concern is directed at architects, contractors, qualified buyers and basically the newcomer to this cool City. Those "some Austinites" could be wrong.
It could be possible that the reason this project (and future home to a tax paying Austinite) made it to the chopping block is due to condition. This property might be in need of being demolished so "they" could rebuild. If the previous owner neglected the home maintenance every home is due, than that previous owner chose to make this home a potential candidate for lot value only.
The next owner will help value in the area by taking a potential eye sore away and building a better home with better energy efficiency.
Oh, and this increases your bottom line as well.
It could be possible that the reason this project (and future home to a tax paying Austinite) made it to the chopping block is due to condition. This property might be in need of being demolished so "they" could rebuild. If the previous owner neglected the home maintenance every home is due, than that previous owner chose to make this home a potential candidate for lot value only.
The next owner will help value in the area by taking a potential eye sore away and building a better home with better energy efficiency.
Oh, and this increases your bottom line as well.
Monday, June 27, 2011
Gas tank and showings
Full time Realtors know how to use technology on their lock boxes to sell listings. A lock box used in my market area (to obtain key and enter a home) has infrared technology and retains the name of the Realtor, the Brokerage and exact time / date when the key was obtained for the showing. I can log into the software to view the showings and keep up with how many showings to date have actually used the lock box. On occupied properties the occupant normally receives the call to OK the access for showings. The data on the lock box activity is helpful since not all calls actually enter the home. Sometimes the buyer drives into the neighborhood and decides they do not even want to get out of there car to see the home. So actually use of the lock box is more important and useful than calls on the house.
When I notice a drop in showing activity, the seller needs to be notified because this could mean that its time to discuss two options; a repair / staging change or drop our price. The overall purpose of this is to get the seller where they want to go which requires a willing buyer. If i find out that 12 willing and qualified buyers came through the house and went on to buy another home, we could be out of the market. By adjusting a condition or our list price we will cast that wider net and increase our chances of achieving the seller goals. Remember I am outlining that 12 buyers visited the home so this is not about "more marketing for more people". We are getting our showings but these buyers are finding what they want elsewhere.
In a way, it is no different than filling our cars with necessary gas so we can get to our destination. We watch the gauges on the tank and react accordingly. The lock box activity is one gauge for selling a home. By watching the activity I could also hold off a price reduction if I see a second showing from the same Realtor.
When I notice a drop in showing activity, the seller needs to be notified because this could mean that its time to discuss two options; a repair / staging change or drop our price. The overall purpose of this is to get the seller where they want to go which requires a willing buyer. If i find out that 12 willing and qualified buyers came through the house and went on to buy another home, we could be out of the market. By adjusting a condition or our list price we will cast that wider net and increase our chances of achieving the seller goals. Remember I am outlining that 12 buyers visited the home so this is not about "more marketing for more people". We are getting our showings but these buyers are finding what they want elsewhere.
In a way, it is no different than filling our cars with necessary gas so we can get to our destination. We watch the gauges on the tank and react accordingly. The lock box activity is one gauge for selling a home. By watching the activity I could also hold off a price reduction if I see a second showing from the same Realtor.
Saturday, June 25, 2011
one of the best stats in sales is ...
one with enough of a trend line.
It is being reported that May of 2011 had over 2100 pending home sales (single family homes that have been placed under contract but not closed yet) which would be around a 53% increase from last May '10. Our market is in good shape considering what has been going on Nationally / Globally. Due to what is / has been going on I love seeing these numbers for pendings. However I offer caution when analyzing data that is too narrow (i.e. January 15 of '11 vs January 15 of '10 and even month of one year vs same month a year later). Trend lines of 6months or more are best.
This recent news of the 53% increase of sales in May is great. I think this story should also include an analysis of last years peak months during the tax credit of $8,000 for buyers. This fueled sales in March & April of 2010 thus reducing sales in May '10.
Again, these pending numbers are outstanding. I just don't like the way some stats are reported when one day or month of a year is compared to exact same day/month of a year later. Look for a trend of 6+ months when discussing the over all market & at least 3 months plus when pricing a home for sale.
It is being reported that May of 2011 had over 2100 pending home sales (single family homes that have been placed under contract but not closed yet) which would be around a 53% increase from last May '10. Our market is in good shape considering what has been going on Nationally / Globally. Due to what is / has been going on I love seeing these numbers for pendings. However I offer caution when analyzing data that is too narrow (i.e. January 15 of '11 vs January 15 of '10 and even month of one year vs same month a year later). Trend lines of 6months or more are best.
This recent news of the 53% increase of sales in May is great. I think this story should also include an analysis of last years peak months during the tax credit of $8,000 for buyers. This fueled sales in March & April of 2010 thus reducing sales in May '10.
Again, these pending numbers are outstanding. I just don't like the way some stats are reported when one day or month of a year is compared to exact same day/month of a year later. Look for a trend of 6+ months when discussing the over all market & at least 3 months plus when pricing a home for sale.
Wednesday, June 22, 2011
Taste of my own medicine
I went ahead and upgraded my cell phone from Blackberry to a Motorola Atrix. This decision has caused annoyances, pain, uncomfort, surprise after surprise. I was out of my comfort zone using this new phone and can't find things I would normally have located without even looking on my Blackberry (while driving). I lost my patience and sometimes it effected my whole day. I would wonder why I paid for this technology when it causes me all this grief. When I had questions the people at the cell phone store could not always give me exactly what I wanted (what I wanted is not always doable). Like real estate, the technology was sometimes ahead of the sales/service people at the cell store slowing down my needs.
Fast forward several weeks and I love my phone.
The learning curve was worth it and eventually I will do more with the new phone than my previous phone was ever capable of. The new phone now simplifies my day to day activities. I have even made friends at the cell phone store and when I walk in I get great service. I knew before embarking on the cell phone change that upgrading my phone was going to be a rough ride. I like my routine so I had to build up some patience and fake smiles.
I think this same experience could be a summary for house sellers and buyers.
Fast forward several weeks and I love my phone.
The learning curve was worth it and eventually I will do more with the new phone than my previous phone was ever capable of. The new phone now simplifies my day to day activities. I have even made friends at the cell phone store and when I walk in I get great service. I knew before embarking on the cell phone change that upgrading my phone was going to be a rough ride. I like my routine so I had to build up some patience and fake smiles.
I think this same experience could be a summary for house sellers and buyers.
Tuesday, June 21, 2011
The new option when selling
Historically a listing appointment focused on 2 main objectives; what needed to be done to a home (staging) and the best price to list. These days in Austin, Tx., a seller should also acquire data on leasing their home.
Houses need staging to sell. Staging could be as simple as weeding the garden and mowing the yard. Staging a home could also be interior/exterior paint plus renting a storage unit for all the treasures inside. Houses also need to be priced correctly. Researching similar homes in school districts or neighborhoods or with similar features will aid in targeting the future buyer pool.
A 3rd category for a seller is the idea of leasing their home (not selling right away). It really is not all that new, but I have made it a question to ask when visiting with sellers. The market for leases is very active. A seller has a chance at a great pool of lease candidates who are paying top dollar. Preparation money to stage could be lower for leasing vs. selling. And if your house is in a market with a high inventory of listed homes or even a few foreclosures you might avoid a lesser sales price. With predictions of Texas doubling in size in 20-30 years your home could be a great investment property. Renting might not be the perfect fit for everyone (turning the homestead into a rental) but it should be a consideration when selling these days especially if your wanting to get these incredibly low interest rates.
Houses need staging to sell. Staging could be as simple as weeding the garden and mowing the yard. Staging a home could also be interior/exterior paint plus renting a storage unit for all the treasures inside. Houses also need to be priced correctly. Researching similar homes in school districts or neighborhoods or with similar features will aid in targeting the future buyer pool.
A 3rd category for a seller is the idea of leasing their home (not selling right away). It really is not all that new, but I have made it a question to ask when visiting with sellers. The market for leases is very active. A seller has a chance at a great pool of lease candidates who are paying top dollar. Preparation money to stage could be lower for leasing vs. selling. And if your house is in a market with a high inventory of listed homes or even a few foreclosures you might avoid a lesser sales price. With predictions of Texas doubling in size in 20-30 years your home could be a great investment property. Renting might not be the perfect fit for everyone (turning the homestead into a rental) but it should be a consideration when selling these days especially if your wanting to get these incredibly low interest rates.
Monday, June 20, 2011
today vs last year
This time last year my industry was dormant - we Realtors should have just gone on a 3 month vacation. It was slow, quiet, brutally tough for an industry of people that like to keep moving/bouncing around. We had just come of the extended $8,000 tax credit. That tax credit absorbed many sales in future months. Additionally the rumors of it returning kept some people from buying. The take away feeling buyers had from the expiration of the tax credit was a surprise. Lets compare last year to right now.
Listings are lower - lower supply.
Solds in May are almost identical when comparing the '10 tax credit to '11 May (no tax credit) - 1,891 '11 vs. 2059 '10. Our current sales are similar to last year when a buyer would have a chance at $8,000!!
Median price is up nearly $8,000.
Average price is up nearly $25,000.
Simple economics 101; supply & demand.
Much of our demand is leasing. It was also in the 2nd Q last year when leasing became very popular. Newcomers are leasing and rates are rising $50 to $500 per month.
My stats are for the Austin area. Austin is one of the 117 or so 500 'major markets' which is doing well in comparison. Those that are buying now will appreciate what they did in the few short years ahead.
Buyers need to not shoot themselves in the foot when making an offer. I just had multiple offers on a home I have listed. They both started their bid at nearly 15% off list. Starting off there is not the problem, staying there is in this market. Be careful what you read and where it is based for your real estate data.
Listings are lower - lower supply.
Solds in May are almost identical when comparing the '10 tax credit to '11 May (no tax credit) - 1,891 '11 vs. 2059 '10. Our current sales are similar to last year when a buyer would have a chance at $8,000!!
Median price is up nearly $8,000.
Average price is up nearly $25,000.
Simple economics 101; supply & demand.
Much of our demand is leasing. It was also in the 2nd Q last year when leasing became very popular. Newcomers are leasing and rates are rising $50 to $500 per month.
My stats are for the Austin area. Austin is one of the 117 or so 500 'major markets' which is doing well in comparison. Those that are buying now will appreciate what they did in the few short years ahead.
Buyers need to not shoot themselves in the foot when making an offer. I just had multiple offers on a home I have listed. They both started their bid at nearly 15% off list. Starting off there is not the problem, staying there is in this market. Be careful what you read and where it is based for your real estate data.
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