Monday, November 24, 2008
Thursday, November 13, 2008
Austin Energy Audits
This month Austin passed an Energy Efficiency Ordinance. It requires sellers to conduct an energy audit of their home before they can sell their property. The expected cost is $200 to $300 and will most likely be paid by the seller.
The audits will show how energy efficient, or inefficient, a home is. This should provide valuable information to a buyer. And should help those sellers that have upgraded their homes efficiency to get a better price for their home.
With all the options out there to increase a home's efficiency, these audits should make it easier for sellers and buyers to upgrade their homes. I like the fact that the City doesn't make sellers perform upgrades, but merely asks them to provide information. Much like a detailed inspection report for the other areas of a house.
The audits will show how energy efficient, or inefficient, a home is. This should provide valuable information to a buyer. And should help those sellers that have upgraded their homes efficiency to get a better price for their home.
With all the options out there to increase a home's efficiency, these audits should make it easier for sellers and buyers to upgrade their homes. I like the fact that the City doesn't make sellers perform upgrades, but merely asks them to provide information. Much like a detailed inspection report for the other areas of a house.
Monday, November 3, 2008
Monthly payment change
Property tax bills will be coming out sometime this month. If you have escrow accounts to pay taxes and insurance you will probably be getting a letter from your lender stating that you have too much or too little money in your escrow account to pay your taxes.
As pretty much everyone's taxes have gone up this year, it'll probably be the latter. In this case the lender goes ahead and pays your taxes even if the escrow account is short, so don't worry about that.
However, to make up the difference they will add on the amount that they had to cover to your monthly payment. And then add that amount again forecasting for the same amount of taxes next year. As you can see this can really change your payment quite a lot.
If you'd prefer not to have that high of a payment, you have the option of making a one time payment to your escrow account to cover the difference for this year. That'll save you that portion of your payment increase, but of course you'll still have the increase to prepare for next years taxes.
Hopefully this helps so the letter won't be a big surprise. If you have any questions please email me at billconover@america-lending.com
As pretty much everyone's taxes have gone up this year, it'll probably be the latter. In this case the lender goes ahead and pays your taxes even if the escrow account is short, so don't worry about that.
However, to make up the difference they will add on the amount that they had to cover to your monthly payment. And then add that amount again forecasting for the same amount of taxes next year. As you can see this can really change your payment quite a lot.
If you'd prefer not to have that high of a payment, you have the option of making a one time payment to your escrow account to cover the difference for this year. That'll save you that portion of your payment increase, but of course you'll still have the increase to prepare for next years taxes.
Hopefully this helps so the letter won't be a big surprise. If you have any questions please email me at billconover@america-lending.com
September real estate
Here are the numbers for September broken down by area. Click on any picture for a larger version.
Tuesday, September 30, 2008
What out of pocket expenses should I plan on?
I get this question a lot, "What do I need to plan for paying out of pocket when buying a home?" In most cases there are five times that you'll need to come up with money from when you sign a contract to closing on your home.
Please let me preface this with all figures are average numbers and do vary case by case.
The First time is when you come to contract agreement with the seller. At this point you'll need to come up with Earnest Money. The Earnest Money is usually 1% of the sales price. The Second is the Option Fee which is also usually paid at contract agreement. Option Fees are typically $100 to $150 depending on the house. The Earnest Money is used to basically show the seller that you are serious about buying their home, and obtaining it is a remedy used by the seller if you default on the contract. The Option Fee is paid to the seller to give the you the right to back out of the contract during a specified time and receive their Earnest Money back. The Option Period is usually the time that you would call in a Home Inspector.
The Third time you'll write a check will be to the Home Inspector. This fee varies on the size of the house and is usually $300 to $500. Home Inspectors inspect the entire home and let you know of any problems the home has.
Once you've had a good inspection and are ready to move forward with the purchase you'll contact your lender and the Appraisal Fee will be due. Appraisal Fees are in the $350 to $500 range. The Appraiser is the one that makes sure the house is worth what you are paying for it.
The Fifth time is called Cash to Close and, you guessed it, it is the money that you bring to the closing table. This amount is the sum of the downpayment plus the closing costs, minus the Earnest Money and Option Fee as you've already paid them. Obviously this varies widely as downpayment and closing costs are different for every loan. Your lender can tell you what to expect for closing once you've picked a house and down payment amount.
This is a simplified overview but I hope that it is helpful. If you have questions, please let me know at billconover@america-lending.com.
Please let me preface this with all figures are average numbers and do vary case by case.
The First time is when you come to contract agreement with the seller. At this point you'll need to come up with Earnest Money. The Earnest Money is usually 1% of the sales price. The Second is the Option Fee which is also usually paid at contract agreement. Option Fees are typically $100 to $150 depending on the house. The Earnest Money is used to basically show the seller that you are serious about buying their home, and obtaining it is a remedy used by the seller if you default on the contract. The Option Fee is paid to the seller to give the you the right to back out of the contract during a specified time and receive their Earnest Money back. The Option Period is usually the time that you would call in a Home Inspector.
The Third time you'll write a check will be to the Home Inspector. This fee varies on the size of the house and is usually $300 to $500. Home Inspectors inspect the entire home and let you know of any problems the home has.
Once you've had a good inspection and are ready to move forward with the purchase you'll contact your lender and the Appraisal Fee will be due. Appraisal Fees are in the $350 to $500 range. The Appraiser is the one that makes sure the house is worth what you are paying for it.
The Fifth time is called Cash to Close and, you guessed it, it is the money that you bring to the closing table. This amount is the sum of the downpayment plus the closing costs, minus the Earnest Money and Option Fee as you've already paid them. Obviously this varies widely as downpayment and closing costs are different for every loan. Your lender can tell you what to expect for closing once you've picked a house and down payment amount.
This is a simplified overview but I hope that it is helpful. If you have questions, please let me know at billconover@america-lending.com.
August Market Statistics
To the right are the market stats for 5 different areas of Austin. Please let me know if you like this format better or worse than the format from last month by commenting on my blog or sending me an email. Thanks for the feedback!billconover@america-lending.com
Just click on the reports to open a larger view.
Tuesday, September 2, 2008
5 Remodeling Tips
After many years of remodeling/maintaining my own homes and helping others remodel theirs I've come up with a number of guidelines to save myself time, headaches and money. Below are five that are relevant to just about any project you may undertake.
1. Budget and Timeline. Create a realistic budget and timeline before spending any money. Remodeling is one of those activities where costs can just keep adding up with no end in site. Pricing out your ideas first will not only give you a plan to execute, but in some cases will be a deciding factor in how you go about doing the remodel. Knowing this upfront will definately save you money.
2. Consolidate Tasks. Many times when remodeling there are multiple types of construction that need to be completed. For example when remodeling a bathroom, plumbing, electrical, tile, drywall, trim and painting will all need to be done. For small jobs a lot of the expense is just getting a contractor to the job. If you can find someone who can properly do a couple of the items you won't have to have as many contractors and will save some bucks.
3. Stay Within Your Walls. There are a lot of older houses in Austin and moving interior walls to open up rooms is a popular and cost effective remodel. However, moving exterior walls brings on a whole other set of expenses. Then you have to think about foundation, roofing, siding, access to the existing house and electrical as a minimum. Tying all of these into the original house can get expensive fast. I'm not saying don't add on to your house, but if you do I'd recommend adding a sizable amount of square footage (to increase your house value and cover your additional costs) and budget accordingly.
4. Don't Fix What isn't Broken. When remodeling you'll find all sorts of things that you can alter and/or upgrade. I'd recommend setting out in advance what you will or will not do. If you go outside of your set boundaries, be prepared for your costs to rise. If possible stay away from electrical, HVAC and plumbing as hiring these contractors will cost you the most. *Of course if your plan is to remodel a bath or kitchen or upgrade your HVAC you'll obviously need to hire these professionals.
5. Do It Yourself. The biggest way to save on labor costs is to do it yourself. If there are things that you are confident you can do, and do well, it's in your best interest to do them. I'll put in a disclaimer here that you shouldn't do anything that will put you in harms way. But items such as landscaping, painting and laminate floors can usually be done well by the homeowner. If trying out something for the first time, alway start in a semi-hidden place. You'll make some mistakes at the beginning so it's best to do those in a closet than in the middle of your living room.
I have many other tips that I am happy to give you. If you'd like to discuss your upcoming remodeling project please let me know. billconover@america-lending.com
Thursday, August 28, 2008
July Home Sales Statistics
Below are the
market stats for July 2008. The Area column refers to MLS Areas. The map shows the Area boundaries. Click on each image to see it larger and make it readable. Enjoy! 
market stats for July 2008. The Area column refers to MLS Areas. The map shows the Area boundaries. Click on each image to see it larger and make it readable. Enjoy! 
Tuesday, July 29, 2008
Free Toilets
Building on last months energy efficiency tip, I wanted to bring up a water conservation tip. The City of Austin has a Toilet Rebate Program to promote High Efficiency Toilets (HETs). I actually just used this program myself for a house that we were renovating. The process was really easy and I replaced two original high usage toilets with two new ones.
Basically you just fill out a form that the City has online. Mail that in and they send you a voucher for the toilets. You take that up to Fergusons and they give you the new toilets and all the parts. The best thing is that they will also rebate the cost of having a plumber install them up to $60 per toilet.
So you really can get the whole job done for free! I'm happy to give a plumber recommendation if you need one.
Here is the link to the City's Site http://www.ci.austin.tx.us/watercon/sftoilet.htm.
Basically you just fill out a form that the City has online. Mail that in and they send you a voucher for the toilets. You take that up to Fergusons and they give you the new toilets and all the parts. The best thing is that they will also rebate the cost of having a plumber install them up to $60 per toilet.
So you really can get the whole job done for free! I'm happy to give a plumber recommendation if you need one.
Here is the link to the City's Site http://www.ci.austin.tx.us/watercon/sftoilet.htm.
Tuesday, July 1, 2008
can sellers pay for your closing costs?
On conventional loans you'll need to have a 5% down payment to be approved. But you'll also have closing costs associated with the loan that you'll need to pay for at closing.
If you're looking to put out as little cash as possible a great way to accomplish this is to have the seller pay for your closing costs. Conventional loans allow the seller to pay up to 3% of the sales price towards your closing costs. You shouldn't need this much on homes over $200,000, but for homes in the $150,000 range you may need the 3% to cover all of the costs.
It's very straightforward to do and you'll write it into the offer when you put a contract on a home. I'd suggest using a fixed dollar amount on the contract as using a percentage will change if you are negotiating on the sales price. That way both sides know the exact number and can more cleanly negotiate.
If you're looking to put out as little cash as possible a great way to accomplish this is to have the seller pay for your closing costs. Conventional loans allow the seller to pay up to 3% of the sales price towards your closing costs. You shouldn't need this much on homes over $200,000, but for homes in the $150,000 range you may need the 3% to cover all of the costs.
It's very straightforward to do and you'll write it into the offer when you put a contract on a home. I'd suggest using a fixed dollar amount on the contract as using a percentage will change if you are negotiating on the sales price. That way both sides know the exact number and can more cleanly negotiate.
Friday, June 27, 2008
0% loans for enery efficiency upgrades
With our energy costs going up and up, now is a good time to be thinking about making your home more efficient.
The City of Austin has a great rebate program that rebates homeowners for certain renovations they make to their home. The renovations have to improve the energy efficiency of the home and are items such as: AC replacement, AC duct repair, insulation, weatherstripping and solar screens among others.
The rebates are 20% of the costs of the upgrades, so can amount to quite a lot when doing a big job such as replacing the AC unit. They also offer 9% loans for these repairs.
If you don't have, or don't want to use, the cash to pay for the repairs immediately. The City also has a program that will give you a short term loan at 0% interest for AC replacement. The loans are repayable over 3 years, and longer terms are available but do accrue interest.
Check out http://www.austinenergy.com/energy%20efficiency/Programs/Loans/Residential/Home%20Performance%20with%20Energy%20Star/index.htm for all the details.
With our energy costs going up and up, now is a good time to be thinking about making your home more efficient.
**Special note: The City asks that you use one of the approved providers for the work. Be careful who you pick and make sure to get multiple bids. I had a company come and look at one of my homes and he wanted to charge almost double what other companies were charging. So even with the rebates I would have still been way overpaying. I'd recommend too getting a bid from a contractor not on the list for comparison purposes.
If you need a recommendation please let me know, I'd be happy to refer you to a contractor that I have used and been very satisfied with before.
The City of Austin has a great rebate program that rebates homeowners for certain renovations they make to their home. The renovations have to improve the energy efficiency of the home and are items such as: AC replacement, AC duct repair, insulation, weatherstripping and solar screens among others.
The rebates are 20% of the costs of the upgrades, so can amount to quite a lot when doing a big job such as replacing the AC unit. They also offer 9% loans for these repairs.
If you don't have, or don't want to use, the cash to pay for the repairs immediately. The City also has a program that will give you a short term loan at 0% interest for AC replacement. The loans are repayable over 3 years, and longer terms are available but do accrue interest.
Check out http://www.austinenergy.com/energy%20efficiency/Programs/Loans/Residential/Home%20Performance%20with%20Energy%20Star/index.htm for all the details.
With our energy costs going up and up, now is a good time to be thinking about making your home more efficient.
**Special note: The City asks that you use one of the approved providers for the work. Be careful who you pick and make sure to get multiple bids. I had a company come and look at one of my homes and he wanted to charge almost double what other companies were charging. So even with the rebates I would have still been way overpaying. I'd recommend too getting a bid from a contractor not on the list for comparison purposes.
If you need a recommendation please let me know, I'd be happy to refer you to a contractor that I have used and been very satisfied with before.
Thursday, June 26, 2008
May real estate stats
Average price for all of Austin for May is $263,151, up from $241,722 last month, and up from $250,156 a year ago. This is breaking the trend over the last 9 months where the 2008 monthly average was lower than the 2007 average. It's encouraging to see that increase. The Median Price at $196,120 has also made gains above last month and the year before.
It's great to see those numbers as they buck the trend in a positive way, however it's not time to start celebrating yet. I still see a lot of houses sitting on the market and most buyers expect to negotiate.
I think the national news has a lot to do with this. Always talking about a bad economy and housing market, they keep a lot of buyers on the fence waiting to see how the economy will turn out. Without these buyers it takes longer to absorb the amount of homes that are already on the market. When these buyers come back into the market we should see a good pickup of sales.
It's great to see those numbers as they buck the trend in a positive way, however it's not time to start celebrating yet. I still see a lot of houses sitting on the market and most buyers expect to negotiate.
I think the national news has a lot to do with this. Always talking about a bad economy and housing market, they keep a lot of buyers on the fence waiting to see how the economy will turn out. Without these buyers it takes longer to absorb the amount of homes that are already on the market. When these buyers come back into the market we should see a good pickup of sales.
Monday, June 2, 2008
mortgage payment changes
What to plan for when your payment changes due to your escrow account.
If you have an escrow account on your mortgage loan your monthly payment can change as the lender adjusts to pay for taxes and insurance that can change year to year.
Sometimes your payment can go down if the lender has too much in the escrow account. This has happened on two of my loans this Spring. While I appreciate the fact that my payments are lower, I'm also consious that my property taxes have risen this year.
How can this be that my payments go down but my taxes have risen? Lenders are strictly regulated as to how much they can hold in their escrow accounts and have to give back any overages. They have to base their escrow account amounts on what they paid out last year and don't have the tax information for the current year. Of course at year's end when taxes are due they'll notice the escrow deficiency and raise your payments higher than they were before to cover the deficiency last year and anticipating the next year.
So if your payments drop as a result of the escrow accounts be sure to know what taxes are to be paid at the end of the year so that you can put a little extra away and don't get surprised by a payment increase.
If you have an escrow account on your mortgage loan your monthly payment can change as the lender adjusts to pay for taxes and insurance that can change year to year.
Sometimes your payment can go down if the lender has too much in the escrow account. This has happened on two of my loans this Spring. While I appreciate the fact that my payments are lower, I'm also consious that my property taxes have risen this year.
How can this be that my payments go down but my taxes have risen? Lenders are strictly regulated as to how much they can hold in their escrow accounts and have to give back any overages. They have to base their escrow account amounts on what they paid out last year and don't have the tax information for the current year. Of course at year's end when taxes are due they'll notice the escrow deficiency and raise your payments higher than they were before to cover the deficiency last year and anticipating the next year.
So if your payments drop as a result of the escrow accounts be sure to know what taxes are to be paid at the end of the year so that you can put a little extra away and don't get surprised by a payment increase.
Wednesday, May 21, 2008
hail damage to your home
That was quite a hail storm last week. Not sure how your place fared, but I did have one tree clip the corner of one of my houses. Not too much damage, but still will be quite a job to get it fixed. When talking to my insurance company about it, I mentioned that I had another house in the area with no visible damage (from the ground) but definitely was in the path of the hail. They suggested that I get it checked out by an insurance adjuster just in case, b/c they may see something that I won’t be able to.
So if your house got hit by the hail, it may be good to call your insurance company to check it out just in case. You don’t want a small problem now to turn into something bigger in the future.
So if your house got hit by the hail, it may be good to call your insurance company to check it out just in case. You don’t want a small problem now to turn into something bigger in the future.
Tuesday, May 20, 2008
great website for austin data
I found a great website today, http://www.city-data.com/. On it you can find out all kinds of information about any city in the US. The info is demographics, real estate, incomes, rankings, activities, pretty much any thing you can think of. I've seen a lot of sites that list informatioin for cities, but never one this comprehensive.
It also has some pretty cool 'Top 100' rankings by city. Rankings range from best colleges to fastest growing to longest commutes.
Check it out, you'll enjoy it!
It also has some pretty cool 'Top 100' rankings by city. Rankings range from best colleges to fastest growing to longest commutes.
Check it out, you'll enjoy it!
Monday, May 19, 2008
watch out for offers to get you a copy of your deed
I've been getting a new kind of junk mail recently, and have been getting some every week or two. They are offers to get me a copy of my deed. The mailing says how important it is to have a copy of my deed, and in this they are correct. However they want to charge $60 to give me a copy of it.
There is no reason to pay someone to get a copy. First I have a copy of the deed to my house already in the closing package that I got from the title company when I closed. Even if I had lost that, I can call the title company and they can send me a copy of it. And say I forgot who the title company was, deeds are public records so I can get a copy from the County.
Just another scam to watch out for. If you get mailings like this or other, please feel free to run it by me first before paying for anything. I'll consult for free! billconover@america-lending.com
There is no reason to pay someone to get a copy. First I have a copy of the deed to my house already in the closing package that I got from the title company when I closed. Even if I had lost that, I can call the title company and they can send me a copy of it. And say I forgot who the title company was, deeds are public records so I can get a copy from the County.
Just another scam to watch out for. If you get mailings like this or other, please feel free to run it by me first before paying for anything. I'll consult for free! billconover@america-lending.com
Tuesday, May 13, 2008
luv the Triangle
I'm a big fan of the Triangle. The developer is doing it right by bringing in quality retail tenants. I've been meeting a lot of clients recently at Flipnotics there. It's a great little coffee shop and locally owned.
enjoy!
Bill
enjoy!
Bill
Tuesday, May 6, 2008
keep those pests out of your house
With summer upon us you're probably spending more time in your yard mowing the grass tiding up the landscaping, etc. Since you're already in the yard doing work it's a great time to think about keeping all those pests that want to seek refuge in your house.
I'm talking mainly about four main pests that we have here in Texas: rats and mice, cockroaches, termites and carpenter ants. The first rule when dealing with the first two is to block the access points to your house. Look for any openings where they could get in. Check for loose siding, holes in walls or roof, under eaves, foundation vents, openings to crawl space (if you have one) or loosely hung doors and window. If you see any of these openings go ahead and close them up with something that animals can't chew or squeeze through.
If you think you have a problem with rats, mice or coackroaches then it's time to start with some baiting for the roaches and baiting and/or trapping for the rats and mice. If the problem persits, calling a pest control company will be a good idea.
As for termites: make sure you have termite treatments done at regular intervals to help prevent them. You can do a quick inspection around your house too. Inspect the exposed area of your slab for 'mud tubes' that look like dirt soda straws. Termites build these to access your house as they hate the sunlight and being exposed to the air. If you see these I'd immediately call a pest company to help rid you of them.
For carpenter ants: the most important thing you can do is to cut all tree limbs, bushes and other plants away from your house. That way they can't 'drop in' on you unexpected. Also check for little piles of dirt around the house which indicates that they are present. Again if you see this indication, call a pest control company immediately.
Hope you found this helpful. Please let me know if you have any questions.
Bill
www.summit-properties.net
I'm talking mainly about four main pests that we have here in Texas: rats and mice, cockroaches, termites and carpenter ants. The first rule when dealing with the first two is to block the access points to your house. Look for any openings where they could get in. Check for loose siding, holes in walls or roof, under eaves, foundation vents, openings to crawl space (if you have one) or loosely hung doors and window. If you see any of these openings go ahead and close them up with something that animals can't chew or squeeze through.
If you think you have a problem with rats, mice or coackroaches then it's time to start with some baiting for the roaches and baiting and/or trapping for the rats and mice. If the problem persits, calling a pest control company will be a good idea.
As for termites: make sure you have termite treatments done at regular intervals to help prevent them. You can do a quick inspection around your house too. Inspect the exposed area of your slab for 'mud tubes' that look like dirt soda straws. Termites build these to access your house as they hate the sunlight and being exposed to the air. If you see these I'd immediately call a pest company to help rid you of them.
For carpenter ants: the most important thing you can do is to cut all tree limbs, bushes and other plants away from your house. That way they can't 'drop in' on you unexpected. Also check for little piles of dirt around the house which indicates that they are present. Again if you see this indication, call a pest control company immediately.
Hope you found this helpful. Please let me know if you have any questions.
Bill
www.summit-properties.net
Thursday, May 1, 2008
tax form from yesterday
Thought this might be helpful from yesterday. If you're looking to protest your tax valuation, you can use the form at the link below.
http://www.window.state.tx.us/taxinfo/taxforms/50-132.pdf
http://www.window.state.tx.us/taxinfo/taxforms/50-132.pdf
Tuesday, April 29, 2008
have you seen your tax bills?
Have you seen the new tax bills come out? Wow! Mine went up a ton this year. Far more than any other year. They might have lowered rates, but the values sure did compensate to make up for it.
If you think your's are too high, contact your county's appraisal district. They are the ones that set the values and have the ability to change them if you can so incline them. You've got to get them in by June 2nd, so not too much time to waste.
You can find your county's address here http://appraisaldistrict.net/county.asp
If you think your's are too high, contact your county's appraisal district. They are the ones that set the values and have the ability to change them if you can so incline them. You've got to get them in by June 2nd, so not too much time to waste.
You can find your county's address here http://appraisaldistrict.net/county.asp
Thursday, April 24, 2008
Watering days for your lawn
The city came out with a new ordinance this year to help conserve water. The City of Austin has now established designated Watering Days. During the months of May through September if your house address is an odd number you can only water on Wednesdays and Saturdays. If your house address is an even number you can only water on Thursdays and Sundays.
Watch out for those code enforcement guys!
Bill
Watch out for those code enforcement guys!
Bill
Wednesday, April 23, 2008
Nice condo project
Regarding yesterday's blog and condos there are a number of nice properties in the north-central Austin area. One of which are some condos near Burnet Rd and 42nd St. Very well redone with granite countertops, new appliances, and laminate floors. Prices start in the $130s for a 1 bedroom and $150k for a 2/1.
Feel free to call if you need more info on these. 512-844-1910
Have a great afternoon!
Bill
Feel free to call if you need more info on these. 512-844-1910
Have a great afternoon!
Bill
Tuesday, April 22, 2008
Condos as Investments
There are many, many condo conversions happening in Austin right now. A condo conversion is when a developer takes an existing apartment building or complex and converts it to a condo where each unit can be sold individually.
Not all condo conversions on created equal. A buyer needs to be careful to find one that has been redone correctly. By that I mean the developer has not only added new cosmetic items, but has redone functional items as well (wiring, foundation, etc.).
When you do find one that is done correctly there will be far less headaches in the future, making your condo owning experience much more enjoyable. For more condo info, send an email to billconover@grandecom.net.
Not all condo conversions on created equal. A buyer needs to be careful to find one that has been redone correctly. By that I mean the developer has not only added new cosmetic items, but has redone functional items as well (wiring, foundation, etc.).
When you do find one that is done correctly there will be far less headaches in the future, making your condo owning experience much more enjoyable. For more condo info, send an email to billconover@grandecom.net.
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