central austin real estate

January Market Stats

2010-03-01T10:49:00.000-06:00

Click on each picture to see a larger version.

Selling in the winter

2010-02-01T19:19:00.000-06:00

The cooler months can sometimes be hard months to sell a home in. The weather plays a big factor. If it's cold and rainy, there won't be many people out looking to buy. Luckily we've only got a few months of it here in Texas.

So what do you need to do if you're selling November through March? I'll start with the biggest, and it's always the biggest, Price. You have to list a home at a competetive price to drive buyers to it. Without that competetive price buyers won't see it and you'll have to drop the price down the road losing you're initial "Just on the Market" enthusiasm. Some times your competetive price can drive enough buyers that they'll not only give you full price, but may offer higher.

The second thing is clutter. Many times in winter stuff just piles up or gets brought inside. It's best to get these out of the house and into the garage or attic. When trying to decide if something should stay or go, be on the safe side and take it out.

Yards can also be a problem in the winter. Ususally the grass has turned brown and some shrubs have lost their leaves. You obviously can't do anything about this. You can keep the leaves off the lawn to make it look as neat as possible though. You can also use mulch to freshen up the beds and put in some cold resistent flowers.

If you know of items that need to be fixed and that a potential buyer would object to, it's a good idea to take care of these items before putting the home on the market. You don't want a potential buyer to not present an offer because of a problem that you'll have to fix anyway.

Hopefully this will help you get your home sold quickly during these months.

December Market Stats

2010-02-01T15:24:00.001-06:00

Click on the image for a larger version. Most areas improved in median price which is great news.

November Market Stats

2010-01-04T10:01:00.002-06:00

Click on the images for a larger picture.

October Market Stats

2009-11-30T15:36:00.004-06:00

Here are the stats for October. Click on them to see a larger image.

The four parts of loan approval

2009-11-30T15:26:00.002-06:00

When getting approved for a mortgage loan, there are four main items that an underwriter will use to approve or deny your loan. They are: Income and Liabilities, Credit, Assets, and the Property. All are important and I'll describe how they are used below.

Income and Liablities: An underwriter will look at your monthly income and monthly debt (including the new house payment) to determine if you can afford the home. Typically your monthly debts can't exceed 41% of your monthly income. There are some exceptions to this, but by and large 41% is the max.

Credit: Credit needs to be above a 620 to get approved. However for the best rates credit should be over 740. Depending on your down payment, there are also higher score requirements too.

Assets: You'll need to have the down payment in a liquid account such as checking or savings. The seller can pay for your closing costs if you want/need them to. You'll also need 2 months worth of your monthly house payment as reserves. You won't use this money at closing, but the lender wants to see that you have some fall back money.

Property: The property has to appraise at or above the sales price. It also has to have a clean title and survey. For condos there are other requirements dealing with the HOA. These can be quite in depth so I'll leave that for another posting.

If you're thinking about buying it's good to have these things in mind so that you're fully approvable when it comes time to put a contract on a home. I'd be happy to help you find your next home or answer any questions.
Bill
billconover@america-lending.com

Get the best interest rate

2009-10-28T11:57:00.000-05:00

Everyone wants to get the best interest rate on their loan. But what is the "best rate"? Is the "best rate" the same for everyone? And what factors affect what rate you get?

These are great questions to ask when getting pre-approved for a loan.

There isn't a "best rate" that is the same for everyone on a particular day. Rates depend on many factors, some which a buyer can control and others that are fixed. One of the biggest factors is your credit score. While you can control this before you buy a house, it is going to be set once your lender pulls your credit report. So always check your credit far in advance of buying to make sure that it looks good. If it doesn't you'll have time to fix some things before you're ready to buy.

For most loans, if you have a credit score of a 740 or above will get you the quoted rates. If you have a score lower then your rate would increase. If the score is really low the rate may increase by as much as 1%. Those with lower credit scores are also affected more by the amount of downpayment they put down. The best way to minimize this is to put down 5%, 10% or 25%. You'd think 20% would also give you a better rate, but lenders don't require mortgage insurance at that downpayment level (which means more risk for them) so they charge a higher rate to you.

Now for some of the items that are set no matter what your score. Loans on condos are at higher rates, again because the lenders view them as higher risk. And duplexes and fourplexes are higher for the same reasons. For investors buying property the rates are very high, almost 1.5% higher than a primary residence.

So the optimal rate option is to be buying a house you'll be living in, with a 740+ credit and putting down 5,10 or 25%. And worst goes to an investor buying a duplex or condo.

Buy first, then sell? Or sell first, then buy?

2009-10-27T16:52:00.006-05:00

For anyone that currently owns a home and is looking to purchase another one, this is always a big question. Both options have their pros and cons.

Reasons to buy and then sell

You don't have to move twice.
You don't have to get temporary housing like an apartment.
You are not pushed to buy something by a certain date. As you are already in a house, you don't have a lease expiration date to worry about.
You can sell your house while you are not living there. This is much easier than living in the house and always keeping it "show ready".
You don't have to buy anything. If you don't find any new house that you like enough to buy, you don't have to buy one as you're already in a home.

Reasons to sell and then buy

You don't have to make two mortgage payments. If you bought a new house and your previous house didn't sell for a while you would end up paying for two houses at once.
You may be able to get a little more for your house as you won't be as rushed to sell it.
You may have to go this route to qualify for the new home loan. If your income isn't enough to qualify with both house payments, you wouldn't be able to buy first and then sell.
You may be able to afford a higher priced home if you sell first.
You may feel more comfortable during the buying process knowing that the other house is already sold.

Both are good options. Some people prefer the flexibility with risk over a little more work but more secure. Please let me know if you have any questions on which route is best for you. billconover@america-lending.com

Pending Sales Up!

2009-10-26T16:23:00.004-05:00

Check out the pending sales in yellow on the graph. There is almost no reduction in number compared to the summer. Compare that to previous years.
The FTH Credit is definately at work.

September Market Stats

2009-10-26T15:32:00.005-05:00

Here are the market stats for September. Click on one to see a larger version.

Rainwater barrels

2009-09-25T11:05:00.006-05:00

I've been wanting to write about this topic for some time, but it just didn't seem to be the right time during our dry summer. Now that we have rain to collect, it's the perfect time to put them in. Especially so you'll be prepared if we have another dry summer.

Rainwater collectors take runoff from your roof and collect it in a barrel for use later on your lawn. The collectors not only let you use water that would otherwise flow off your roof and wasted, but it can reduce the amount of water you use, helping your wallet too. The City of Austin also gives $30 rebates for installing them.

Collectors can come in many different sizes, shapes and colors. The simplest versions are green 55 gallon plastic or steel barrels. But you can also get square shaped ones, barrels with wheels and even ones that look like stones.

Costs range from $65 through the City (although they are currently out of stock) to $200 through some vendors online. Most are in the $70 to $130 range though. After seeing my huge water bills this summer this upfront cost should be recovered within a few years.

You can buy them from the City when they have them in stock or from a variety of vendors. One company I found, http://www.austingreenwater.com/, is based here in Austin. They sell a triple barrel (165 gallons) setup for $250. A google search turns up a lot of vendors as well and Home Depot and Lowes are good sources for them and any accessories you may need.

For those that like a small project, set up is fairly simple. Just shorten your downspouts on your gutters so that they empty into the barrel instead of on the ground. Then you can connect the barrels together and as one fills up it will start filling the others. Home Depot offers a kit to make the connections easy. For those that don't want to set it up themselves, Austin Green Water does offer setup for a $50 fee.

You'll need to place the barrels so that the area you want to water is lower than the barrels bottom. For flat lots you'll want to get a stand to raise them up. I promise I'm not promoting AGW, but they do include a stand with each barrel for the same price. The extra height helps increase the water pressure.

Once you've got them set up all you do is connect your standard garden hose to the spigot at the barrels bottom. Open the spigot and you've got water. As the pressure is fairly low the water is best used for watering beds and trees or using to soak specific areas of your lawn.

I hope you've enjoyed this green tip. Always feel free to ask any questions, billconover@america-lending.com

What is a Seller's Disclosure?

2009-09-24T16:46:00.008-05:00

Sellers of residential property are required to disclose any defects that they are aware of that their property has. The disclosure is a protection for buyers that gives them information about the property they are considering purchasing. The disclosure lists items that are not working in the home and also cover the history of the home so can reveal items that even a home inspector may not uncover.

In most cases, depending how a contract is written, a buyer who has signed a contract has the option to cancel the contract after they've received the sellers disclosure if they object to any items on it.

The disclosure is on a standard form and and has to disclose certain items at a minimum. An outline is below:

Items that the home has and whether they are working. Items such as cooktop, dishwasher, pool and central A/C
The roof type and age.
Defects in the building systems such as the foundation, walls, windows, etc.
Specific conditions such as asbestos, previous flooding, termites, etc.
Other non-building items like: Has an addition been added? Is there an HOA? Any deed restriction violations? Any lawsuits? Safety hazards?

For a detailed list please see the example below. The sellers disclosure is a great tool for both buyers and sellers to make sure everyone is aware of the same issues. However as it is only what the seller is aware of always get a home inspection too to find out those issues the seller may not be aware of or that they "forgot"....

As always please email me with any questions, billconover@america-lending.com. Click on the image to see a larger version.

August Market Stats

2009-09-22T16:01:00.005-05:00

Central Austin is up for the month and year!

Austin one of best performing markets

2009-09-22T13:00:00.001-05:00

Check out this report on the Austin Market. It says that Austin is positioned to be one of the first to get out of recession.

http://austin.bizjournals.com/austin/stories/2009/09/14/daily18.html?ed=2009-09-15@ana=e_du_pub

Hardwood Flooring

2009-08-31T15:45:00.007-05:00

One of the largest impacts you can create in a house is the flooring that you put in. The three main options are carpet, tile and wood, but in each category there are a tremendous number of options. This comparison will focus on the four main groups of hardwood flooring: unfinished, prefinished, engineered and laminate.

Unfinshed hardwood is a solid piece of wood that is stapled or glued to the subfloor. It has to be finished after it has been installed. Prefinished is solid wood also but has already been finished in a factory. Engineered is similar to plywood and each plank is made from multiple 'plys' of wood glued together with the top 'ply' being actual hardwood. It is prefinished in a factory as well. Laminate is a synthetic material that is created to (sometimes well, sometimes poorly) imitate wood.

To compare them I'll use the characteristics Price, Finished Look, Feel, Durability and Installation. Note that Engineered and Laminate floors were created as a lower cost option to imitate solid wood, so comparisons of Look and Feel are in Unfinished and Prefinished's favor.

Price: Prefinished and unfinished are the most expensive. There is a lot of variation by wood species with the oaks usually the most economical and the international woods costing the most. Unfinished may cost less at a store but when you add in the extra finishing costs, in many cases the costs come out to the same or even more than prefinished. It is my preference to go with Prefinished or Engineered when budget allows to avoid the mess of the finishing process.

Prices are from $6/sf to $20/sf. The average is about $8 to $12/sf. Engineereds run from $4/sf to $12/sf and laminates are $3/sf to $8/sf. Prices include labor.

Finished Look: Unfinished (after it is finished of course), Prefinished and Engineered wood provide the most premium look and are what people usually think of when they think hardwood. You really can't tell the difference between a Prefinished and Engineered floor if they are both 3/4" thick. Unfinished wood gets sanded down so removes any of the seams between the boards, seams that show up in Prefinished floors.
Laminate can look really close to real wood if you choose from the higher end options. However in most cases each 'plank' or piece is the width of 3 to 5 "boards" so the end seams look like three boards all end in the same place.

Feel: With the exception of the seams between boards Unfinished and Prefinished feel very good and about the same. When walking on them the floor is solid with no movement. If using a 3/4" or similar thickness Engineered floor the feel will also be the same. Dropping to a thinner plank and/or not gluing the floor down (called "floating") will cause more movement when walking. Laminate does not feel like wood, but if installed properly can feel pretty solid. In many cases the laminates I've seen that are floating have too much movement, so I'm a strong supporter of gluing it down.

Durability: Finally a category where Laminate can be on top! Being a synthetic material Laminate is very scratch resistant when compared to wood. I'm not saying you can't scratch it, but it holds up well to walking traffic and pets much better than real wood. The other materials will hold up about the same, although Prefinished and Engineered claim to have a harder finish than wood finished on site. I haven't seen any evidence of this in houses I've been through.

I'll say too that although Laminate is more scratch resistant over time the joints and seams weaken more than solid wood, so it's not as permanent of a floor.

Installation: Laminate again wins here as most are snap-and-click, where you just put to pieces together and then snap together. Plus each plank is the equivalent width of 3 to 5 boards so you're laying it 3 to 5 times faster based just on this.

Some Engineered wood is snap-and-click, others are tongue and groove (T&G) like solid wood is. Engineered snap-and-click installs just like Laminate, but again takes more time as each plank is only one board width. Engineered T&G installs just like solid wood. Depending on whether the subfloor is concrete (most homes built after the 1950s) or wood (2nd floors and homes build 1950s or before) will dictate how you install it. If you are on wood you can staple it straight to the subfloor. If concrete you can usually glue it down.

As you can see there are a lot of differences and a lot of similarities too. If I were deciding on what type for a project of my own, I'd first think about what would look good in the house and what would be appropriate for the house given the other homes in the neighborhood. Then I'd look at HomeDepot/Lowes or a flooring store and see what fit into my budget. I'd get some samples and bring them home to see how I liked them.

I couldn't cover everything in this entry so if you have any questions please let me know. billconover@america-lending.com

Bill Conover
America Lending

What is Earnest Money

2009-08-26T11:39:00.008-05:00

When making an offer on a house you'll have to decide on the amount of earnest money to give the seller. The purpose of earnest money is so that the seller has some protection that a buyer won't back out of the contract. For if a buyer backed out of a contract the seller would keep the earnest money. There are some protections for buyers too.

For typical residential contracts in Texas there are two buyer protections that are most often used 1) the financing addendum and 2) the option period. The financing addendum allows a buyer who has tried but cannot obtain financing to cancel the contract during a specified time period and still receive their earnest money back. The financing addendum period is typically between 12 and 21 days and is negotiable.

The option period is a more powerful buyer protection in that a buyer can back out during the option period for any reason at all. It is during this time that a home inspection is done to make sure the buyer can back out if they find something unacceptable with the house. But again, they can back out for any reason, it doesn't have to be inspection related. Option periods are usually 5 to 12 days and is negotiable too. Both the finanding addendum and option period are optional items in the contract.

There are a few other buyer protections that allow a buyer to back out, usually after getting some additional information about the property. Information such as Survey, Title Policy, Sellers Disclosure and Appraisal.

All contracts are different so it's always best to talk with your Realtor so you fully understand the contract and how these different time periods affect each other. If you have any questions, I'm happy to answer them. Please email me at billconover@america-lending.com.

July Market Stats

2009-08-25T16:33:00.003-05:00

Save on electricity

2009-08-04T20:11:00.003-05:00

As we're going through one of the hottest summers on record, keeping the AC cool and the electric bills under control is on everyone's mind. Here are 7 cheap and easy tips to make your house more energy efficient.

Weatherstrip your doors and windows. Check your exterior doors for any air leaks. Or during the day check for light coming in around the jamb. You can block up these areas with easy to use peel-and-stick rubber weatherstripping. Be sure to get an approximate measurement of the hole to be filled as it's sold in different widths.
Check your attic vents. If you have fixed vents that don't move, make sure they are clear of debris. If you have the rotating, or "whirlybird" kind, check them when there is a breeze to make sure that they are operating properly. If they don't move, have someone inspect or you can check them out yourself. Usually if they're not moving it's because of rust so bring some WD40 up with you.
Use ceiling fans. If you have them, use them. They keep the air circulated so your AC unit doesn't have to run as long.
Turn lights off. Your lights, especially halogen, give off a large amount of heat. If you don't need the lights on in one part of the house, turn them off. It'll save you on the energy to keep the light on and on keeping the house cool.
Use blinds and drapes. Blocking some of the sunlight during the day from coming right into your house can help a lot toward keeping your AC running to a minimum.

These tips are all easy to do and should really help to lower your cooling costs. Let me know if you have any questions.

Condos vs Houses

2009-08-04T13:25:00.005-05:00

A big question that always comes up when starting a home search is whether to buy a condo or a house. There are some obvious differences between them but I will discuss here some of the not so obvious differences and why it may be best to buy one or the other.

It's important to realize that when comparing condos to houses, in a given area the condos that are available are very different from the homes that are available. So it's not so much a decision of whether you want a house with a yard or a condo with a pool, but about what area you what to live in and what your budget allows.

Typically a condo will be priced lower (or much lower) than the surrounding homes so will allow a buyer to purchase in a more desireable location. Condos are great options for those with a limited budget and who want to live in a certain neighborhood.

As condos usually come in the 1, 2 or 3 bedroom sizes, buyers that don't want or need a lot of space will find a good fit in condos. Less empty rooms means less to take care of and less to heat and cool.

And of course there is the maintenance issue. Much of a house's maintenance is on the outside exposed to the elements. The same is true for a condo building, but it is the HOA's responsibility to take care of it. This means less work for condo owners and less money too.

So to sum up the condo 'pros': better location, pay only for useable space, and low maintenance.

Houses have a lot of pros too. The biggest is that house buyers will own the land their house is on. They are mostly free (subject to zoning rules, etc) to do what they like with it. With that comes a lot of freedom. Want to re landscape the back yard? Do it. Add on to the house? No problem.

This also allows house owners to substancially increase the value of their home. Condos owners can of course increase their value through finish out details, but house owners are able to do that and much more like adding squarefootage and landscaping.

Another thing to think about is the amount of storage a house has. Most houses will have a garage and many owners keep their vehicles outside and use this just for storage. Bikes, grills, canoes, luggage, pet supplies and recreational items are all easier stored if you have a garage. I will note that some condos do have garages as well and there is a premium for them.

These are just a few of the differences, but ones that sometimes aren't realized until further into the house hunt. Hope this helped!

June Market Stats

2009-08-04T13:19:00.002-05:00

May market stats

2009-06-25T13:00:00.002-05:00

Market stats for May. Volume is down, but average price is up again!

New City of Austin Energy Audits

2009-06-25T12:48:00.002-05:00

The City of Austin has a new requirement that an energy audit be done to any home before it can be sold. These audits look at the energy efficiency and energy loss of a home. Items looked at are insulation, AC systems, air penetrations and windows among others. So how does it affect a purchase?

The audits are performed by third party inspectors and the reports must be disclosed with the seller's disclosure before a closing can occur. The form looks like this. For a list of qualified inspectors click here. While the audits need to be disclosed to a buyer, there is no requirement that any of the suggested items be done. Much like a Home Inspection that reviews the whole house, the inspector points out everything and the buyer and seller then agree on what if anything will be done.

There are some properties that are exempt from an audit including those built less than 10 years ago and condominiums.

If you plan on getting some of the items on the report done, Austin Energy does offer rebates. For a complete list go to their webpage.

And for more info try http://www.austinenergy.com/About%20Us/Environmental%20Initiatives/ordinance/index.htm.

Keep your lawn green

2009-06-25T11:22:00.002-05:00

We installed sod in our backyard in April and with some water it really came in thick. Now with this hotter weather, I'm starting to see some dry patches. I did some research on how to prevent these and wanted to share it with you.
1) The first thing is to water longer for fewer times rather than for shorter periods many times. There are two reasons for this. First, if you water it longer the water will penetrate further into the soil and keep it moist longer. Second, if you water for a short time only the surface gets wet which promotes the roots to grow in this area. As the soil dries, the roots are more exposed to dryness and the heat. Longer watering periods will promote deeper root growth, which allows the roots to stay moist longer.

A typical time to water is about 15 to 20 minutes. But this can vary depending on whether you have an automatic system or are handwatering. Try out some different times and you'll see pretty quickly if you have the right time or not.

*I was very happy with the guy that put in my sprinkler system. Let me know if you'd like his number.

2) Another important rule is to water during the early morning. Watering in the morning allows the water to penetrate the soil more and minimizes water lost to evaporation. A start time of 3 or 4 am is considered the optimum time. Don't be temped to water in the evening as letting the moisture sit overnight can cause fungus to develop that will harm your lawn.

3) Mow grass on a taller mower setting. This puts less stress on the grass and also helps to keep moisture in your lawn.

4) If you're in the city there are established watering days. For even numbered addresses you can water Thursdays and Sundays. For odd numbered addresses you can water Wednesdays and Saturdays.

I hope this helps and your lawn stays green all summer!

Bill Conover
America Realty and Lending
billconover@america-lending.com

What do condo HOA fees cover?

2009-06-01T15:37:00.003-05:00

When owning a condominium, owners have to pay Home Owners Association dues, typically on a monthly basis. The dues are mandatory and the HOA has the ability to put a lien on your property for unpaid dues and to even foreclose.

So since owners have to pay them, how do they benefit the individual owner? HOA dues usually cover: building exterior maintenance, landscaping maintenance, amenity (such as pool) maintenenance, garbage collection, exterior utilities (like parking lot lighting, irrigation water), hazard insurance for the structures, and liability insurance. Depending on the particular condo complex dues can also be used to pay certain utilities that owners individually or collectively use. It's fairly common for dues to include the owners' water and gas bills.

Dues can change as the needs and budget of the HOA change. A common need that comes up is an improvement to the complex. These can be repaving the parking lot, a new roof, repairing the pool, etc. When these items come up the HOA will need to obtain the funds by raising dues if the money isn't already in reserves. This is always a question to ask of the HOA when thinking about buying a condo, Do they forsee any capital improvements coming up and/or are dues scheduled to go up?

As you can see dues take care of many things that an owner of a single family home would have to pay for themselves. And the hazard insurance policy that a condo owner pays for is extremely low compared to what a single family home owner pays.

More questions on condos? Just ask! billconover@america-lending.com

April Market Stats

2009-06-01T13:19:00.004-05:00

Click on the image for a larger version. Looking pretty good in the Central, North and Southwest areas!

March market stats

2009-04-30T13:51:00.003-05:00

Click on each image to see a larger view.

February Market Stats

2009-03-31T16:36:00.005-05:00

Here are February's numbers. Central Austin is looking great and as a whole Austin is doing really well also.

Click on an image to get it to appear in a larger format.

Selling in a slow market

2009-03-03T11:11:00.002-06:00

Selling in a slow market is more challenging that a hot market so you need to make sure to take this into account and plan accordingling. First you'll need to analyze why you're selling to come up with a list of goals and strategies to get there. Reasons for selling vary tremendously among sellers. For example a couple with a baby on the way and needing a bigger house is going to be more anxious to sell than an owner looking to move closer to downtown. Once you determine where you are at, you can set goals for price, timing and a game plan to get there.

To set your goals for price you'll need to take a good look at not only the houses that have sold, but also the ones on the market. Which ones are selling? What makes them more appealing than the others that haven't sold? Use this info to set a realistic asking price. One that will drive buyers to your house, but also get a price that you are satisfied with. When pricing remember that the sales price this year may be less than last year, but that the ultimate goal is to sell the house, not to list it at last years prices.

Lastly, do everything within reason to set your house apart. This can be anything from new paint, to staged furniture, to offering buyers incentives. You want to make your house unique and for buyers to see value in the total package.

Even though the market is slower, there are still lots of buyers out there and there are sellers selling homes for fair prices. With the right information and a good plan you can sell your house too.

Please email me for a consultation if you're thinking about buying this year. billconover@america-lending.com

January Market Stats

2009-03-03T09:13:00.004-06:00

Here are the market stats for January. Click on the picture to view a larger image.

December Market Stats

2009-02-02T10:27:00.003-06:00

Market stats for December. Click on the image to make it larger.

How to buy a house in need of repairs

2009-01-06T11:09:00.003-06:00

Many times you find a house that you want at the right price, but it may need some repairs. Depending on what needs to be done you can use a couple options to get the repairs completed.

We can categorize repairs into two groups: those done before closing by the seller and those done after closing by the buyer (hopefully along with some sort of seller credit). The first option is pretty straighforward: after the inspection, give the seller the list of items needing repair then make sure they do them before closing. The one catch is that the seller has to agree to do them.

Many times a seller refuses to do repairs or it's in the buyers best interest to do the repairs themselves. An example of the second case would be repainting the house. A buyer would be better off doing it after closing so they could pick their own colors.

So in the case of the buyer performing repairs after closing they would typically pay for them out of pocket. But what if they don't have the money to pay for the closing costs and downpayment on the house and for the repairs? A seller is not allowed to give a buyer cash back at closing, but they are allowed to pay for a buyer's closing costs. So they can pay for a buyer's closing costs and the buyer can use the money they had set aside for closing costs towards repairs.

Hope this helps! Happy house hunting!

2009-01-05T15:43:00.003-06:00

Here's the stats for November. Click on them to see a larger version.

October Maket Statistics

2008-11-24T12:10:00.002-06:00

Looking pretty stable overall.

Austin Energy Audits

2008-11-13T09:08:00.003-06:00

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.

Monthly payment change

2008-11-03T10:05:00.002-06:00

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

September real estate

2008-11-03T09:35:00.004-06:00

Here are the numbers for September broken down by area. Click on any picture for a larger version.

What out of pocket expenses should I plan on?

2008-09-30T21:32:00.004-05:00

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.

August Market Statistics

2008-09-30T17:06:00.002-05:00

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.

5 Remodeling Tips

2008-09-02T10:36:00.004-05:00

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

July Home Sales Statistics

2008-08-28T12:41:00.005-05:00

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!

Free Toilets

2008-07-29T17:05:00.002-05:00

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.

can sellers pay for your closing costs?

2008-07-01T11:47:00.000-05:00

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.

0% loans for enery efficiency upgrades

2008-06-27T09:35:00.002-05:00

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.

May real estate stats

2008-06-26T11:27:00.000-05:00

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.

mortgage payment changes

2008-06-02T21:33:00.000-05:00

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.

hail damage to your home

2008-05-21T13:00:00.002-05:00

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.

great website for austin data

2008-05-20T23:11:00.003-05:00

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!

watch out for offers to get you a copy of your deed

2008-05-19T09:27:00.003-05:00

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

luv the Triangle

2008-05-13T16:52:00.004-05:00

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

keep those pests out of your house

2008-05-06T12:42:00.002-05:00

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

tax form from yesterday

2008-05-01T10:10:00.002-05:00

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

have you seen your tax bills?

2008-04-29T17:08:00.003-05:00

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

Watering days for your lawn

2008-04-24T16:05:00.004-05:00

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

Nice condo project

2008-04-23T16:46:00.004-05:00

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

Condos as Investments

2008-04-22T11:05:00.004-05:00

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.