The Events of 2011 that Hit closest to Home in Austin

2011 has been a year to remember--on many fronts. Weather. New Industries. Sports. Politics. Business and yes, for Real Estate as well. Here is my brief recap of our year in Austin, Texas.

Here are the links and the events that hit closest to home here in Austin:

• One event that will will ponder for many years to come--a week of devastating Wildfires! The worse wildfires in Texas history, including Steiner Ranch and Bastrop!
• And related to the fire--the Historic Texas Drought of 2011 will also go down in the history books.
• Jobs and Job Growth in Austin Continued to be Strong in 2011
• Austin Ranked #1 for Jobs
• Texas tweaked its Homestead Exemption laws--changing the proof of identity
• Halloween on 6th Street! One of Austin's most Iconic holiday events
  
• Real Estate saw a Bigger and Better year in 2011 as Austin returns to a Seller's Market with Multiple Offers in many of our communities
• Social Media Companies like FaceBook, PayPal and LegalZoom expanded their presence in Austin this year
• Developer Taylor Morrison bought 440 Acres in Leander for a new Community
• Austin started a Formula One F1 Race Track for Circuit of Americas 2012 F1 Race!
• Schlitterbahn Plans for New Water Park in Cedar Park
• Austin still rocking the Food Cart - Food Trailer World
• Real Estate Sales are much stronger--Austin Leading the Nation
• Austin Tops List of Top 10 Cities for Relocation
• Parenting.com named Austin among the Top 3 Cities for Families
• Texas TEA School Tests changed--having a dramatic impact on How Schools are Ranked
• 10 years have passed since the events of 911
• Interest Rates dropped to Historic Lows and Home Buyers are taking advantage it
• Austin Bands Smoking in Public Parks
• Britannia Manor, home of Richard Garriott, is For Sale in Austin
• Gov. Rick Perry makes a bid for the White House
• UT Football has less than stellar year while rebuilding

2012 promises to be an even bigger year for Austin growth, entertainment, jobs and Real Estate. Let's Talk about your Real Estate needs.

Houses Selling Fast! First Week on the Market!

Have you ever been to the animal park at feeding time and watched as the animal trainers throw a large hunk of meat to the tiger? The tiger pounces on the food and devours it! There is no question about it--it is his. Now put two or three hungry tigers in together at the end of the day and add fresh meat to the picture and you have a full on competition. Well, you guessed it, that is happening in Austin Real Estate. No kidding. We are seeing this again right now. Here is how it impacts you.

When you are reading Austin Real Estate Updates and you see the stat for Days on Market (DOM), this is usually either an average or a median number for all properties, but median numbers don't tell the whole story. This does not mean that most houses sit on the market for 60-70 days. Median numbers are only a mid point of the stats--what about the houses that look great and are priced right on day one? How fast are they selling? Glad you asked!

In Austin right now, here are the numbers*:

• Starting with 1,953 homes that currently under contract to close
• From these homes:
• 37 went under contract in less than 24 hours on the market!
• 99 went under contract during the FIRST 3 DAYS!
• 221 went under contract during the FIRST week!
• 397 went under contract during the first TWO weeks
• 513 during the first three weeks
• 648 during the first month

So, when you see a house online, even a house that has been on the market for a week or two, that house may already be in contract negotiations--often as early as the first few days  or hours on the market! Don't wait or hesitate--if it looks good to you, it will probably look good to other buyers as well.

If you see a house that strikes your interest, give me a call. Let's Talk. (More importantly, let's go see it! Fast).

*Numbers in Austin Real Estate change daily. The numbers were real at the time of the writing, but these numbers for pending contracts change daily as contract close and new contracts are written.

Links to City of Austin, Round Rock, Cedar Park...Greater Austin

The City of Austin has just started testing its newest web site look and feel--check it out!

If you want to get to know the Greater Austin area a little better or want to learn a little more about a particular metro in in the Greater Austin area--check out the links below. If you can't find what you are looking for--give me a call. It may be one of those things that requires a discussion--not just online jibber jabber. Let's Talk. 

• City of Austin
  
• City of Bee Caves
• City of Buda
• City of Cedar Park
• Dripping Springs 
• City of Georgetown
• City of Hutto
• City of Jonestown
• City of Lakeway  
• City of Liberty Hill
  
• City of Lago Vista
  
• City of Leander
• City of Manor 
• City of Pflugerville
• City of Rollingwood
  
• City of Round Rock
• Spicewood, Texas
• City of Taylor

Happy Hanukkah

Dec. 20th marks the beginning of the Jewish Festival of Lights--

Happy Hanukkah, my friends.

Temple Beth Shalom Celebrations.

Favorite holiday foods from Le Cordon Bleu.

Austin area events Celebrating Hanukkah. 

Austin is all about High Tech, Social Media and Innovation!

Austin is changing quickly and becoming a target city for new venture capitol dollars and growing industries--of recent note are the new Formula One (F1) Racing venue and the emerging home of Social Media and Software development. Austin has always been known as a hot bed of high tech innovation and live music entertainment, but the new Austin is breaking the mold and surprising many people for what lies ahead.

Some of the technology industry's largest companies have ten's of thousands of their brightest and best paid brain-trusts in the Austin area. IBM. Intel. Dell. AMD. Microsoft. Samsung. Motorola. HP. Sun MicroSystems. 3M. Apple. Many of these companies are based here or have some of their most critical intellectual assets in the Austin area--employing thousands of engineers, sales and marketing professionals. And the new wave of high tech professionals that are moving to Texas and calling Austin home are in the growing and emerging software worlds of Social Media and software development. 

In case you haven't kept up with some of the social media giants who have set up shop in Austin of late--let me just name a few: Paypal, Google, FaceBook, LegalZoom, 44 Doors, FG Squared, Spiceworks, and many other social media and software developers. Some say that Austin feels like the San Fransisco Bay Area of the early 90's. In fact, the Social Media Business Council has moved its HQ office to Austin! This organization includes more than 100 prominent companies and brands such as: Coke, McDonalds, Target, Adobe, Microsoft, Toyota, UPS, Yahoo, Shell, Home Depot, EMC, Sabre and many other house hold names.

Austin is no stranger to innovation in software development. In fact, our patron saint to gaming software development, Richard Garriott, started his businesses in Austin and he still lives here today. Mr. Garriott is arguably one of the founders and developers of an entire software industry. Truly a giant in the field (And if you are interested--Mr. Garriott's previous home is currently for sale...).

Another little know fact, Twitter emerged on the national social media radar here in Austin at the SXSW in 2007. Before Austin, very few people knew for sure why they would want to use this little social media tool--and look at where that little launch campaign took them...

If you are still wondering if Austin is a good bet--wonder no more. The train is leaving the station. Time to jump on board.   tT

Top 10 Questions To Ask Before Listing Your Home

Q1: What is the most significant challenge to getting my house sold?

A: Pricing your home to market value. Yes, I know it seems obvious and possibly self-serving, but pricing a house at it's competitive market value is one of the biggest advantages that you can have over sellers who are priced above market value.

Q2: What is the second biggest challenge to getting my house sold?

A: First impressions. Buyers want "move in ready" homes these days. Only investors typically are willing to make significant changes to a home and investors don't like paying "move in ready" prices.

 

Q3: How do Buyers find out about my listing?

A: Online. Very few buyers will find out about your listing in any other way. It is what you are doing right now, and it is what buyers do to find a home. Having the very best online presence and online marketing is critical to getting your home seen and then sold.

 

Q4: How many Open Houses should I have?

A: One or possibly none. In this day and age, Open Houses are not a strong vehicle to sell your house. When a buyer can see dozens of homes online in less than an hour, homes that fit the size, price and features of their search, why would they drive through communities looking for open house signs to see one house that probably meets very few of their specific needs? The odds are better at hitting the Pick Three Lottery than this lottery gamble.

 

Q5: Does the Listing Agent sell my home?

A: The Listing Agent's job is not "Salesman", but is tasked with role of marketing your home. The Buyers Agent is the industry expert who works directly with potential buyers to find and "sell" your home. The best thing that a Listing Agent can do to "sell" his client's listings is to provide good pricing, staging, listing and online marketing information for his seller. When an offer comes in--the Listing agent is your trusted adviser, coach and negotiator--but this part of the process does not start until buyers start crossing your threshold. My advice: Hire a Realtor who is a good marketing professional--not a good "pitch-man" to sell your home. The Listing Agent is not going to be talking to buyers--having a good pitch-face won't help.

Q6: Should I hire a Professional Stager?

A:  Yes. Yes. Yes. Ask your Realtor who he recommends. Every Realtor should have industry professionals that they know, trust and recommend--including a great Stager.

Q7: What about the competition?

A: Know what is going on around you. Similar priced homes with similar features and size will bring more attention to your listing--if you do everything else (above) correctly.

Q8: How important are the listing details?

A: Critical. We live in a digital age where information is the key to everything. A MLS listing is a digital database with information about your property for sale. Missing pieces of information mean that the person who was looking for your home will not be able to find it because the database did not have enough information to point that buyer to your home. Database data is one business case where more is almost always better.

Q9: How important are photographs?

A: Critical. Photos need to depict the home and property as it is. Wide angle lens and missing photos will only lead to buyer disappointment and Realtors will start to boycott your listing agent. If your Realtor becomes known for making things look bigger and better than they are in real life--this is only a recipe for disaster. Yours and theirs. Get as many photos as the MLS will allow. Make sure the photos reflect the true look of the home. Use a professional photographer--Realtors seldom make great photographers. Make sure buyers are not disappointed with the real house compared to what they see online. 

Q10: What about selling FSBO?

A: My professional and personal opinion is that while FSBO sellers were a fad in certain Seller's Markets where and when buyer traffic was on Auto-Pilot, I think FSBO homes sales have faded into the shadows. My own personal experience with FSBO marketing tells me that it is expensive (you pay hundreds of dollars whether you sell your home or not), it has limited or no marketing, there is very little coaching and advice (seminar style--one size fits all), and very, very time consuming. If you would like to hear about my own first hand experience with FSBO marketing--give me a call. Let's Talk.

In Summary.

Price to market. Make sure your home shows better than anything around you. Make sure you have the best possible online marketing presence and database coverage. Make the photographs count. Put the best Realtor you know on your team. 

Steiner Ranch Real Estate Market Update: Nov. 2011

Whether you are a Buyer or a Seller in Steiner Ranch today, the market is showing positive trends in your favor. The past couple of years in Steiner have been a little flat, if not a little down, but this year is proving that Steiner is on the rebound--and frankly, I am not surprised. When the market is going up, both buyer and seller enjoy the privileges of the Steiner life style and home ownership.

Steiner Ranch is one of Austin's premier master planned communities. Steiner has something to offer to every potential home owner:

• Great lake access (Lake Austin and Lake Travis)
• Outstanding schools--located in the community
• The best combination of amenities of any Austin area community
• Pools, tennis courts, play grounds, soccer fields, baseball fields through out the community and private access to Lake Austin boat launch, dock and pavilion for all residents. And then there is the preserve--grand views and over 18 miles of hike and bike trails to round out a active Austin life-style.
• UT Golf course
• Gated and Open communities from $200's to $3M
  
• A great community, great neighbors, and much to offer!

Now to the numbers:

Sold during the previous 90 day rolling quarter (Sept, Oct., Nov) 2011:

• 67* homes sold between Sept. 1st and Nov. 30th
• Median sold price: $396,000
• Median days on market: 43 days
• Most expensive home sold: $860,000
• Homes sold during same period in 2010: 65
• 2011 over 2010--some positive indicators emerging:
• Almost $50,000 increase in 2011 median home values
• Median homes sold 11 days faster in 2011 
• PPSF is going up slow and steady, about $4-5 psf higher in 2011
• Consumption rate puts inventory levels at just under 4 months

Active Listings:

• Currently active listings: 80 homes 
• That's approximately 4 months of inventory
• Inventory levels favor the seller currently--A Seller's Market
• Current homes under contract: 31
• Median home list price: $477,400
• Median home features:  3514 sf, 4 Bedrooms, 3 baths
• Median Days on Market for Active Homes:  82 days
• Median Days on Market for Pending Contracts:  55 days
• Homes that are priced right and show well are going under contract faster than homes still on the market
• In this market, Sellers are not seriously considering low-ball offers on homes that show well and homes that are priced to market
• Too Low offer prices are being considered as non-serious buyers
• Inventory is low and homes are still selling during "off season"

Note: Having a Seller's Market does not mean that Seller's can have their way and sell homes above market value, but it does mean that given low inventory levels, buyers are going to move faster to buy homes that show well and are priced to market. It also means that buyers are much more likely to get into bidding contests over the homes that they really like and homes are more likely to sell at or near their listing price. Lastly, in a market that is bent toward the seller, buyers find that desirable houses come-on and go-off of the market at a much faster and unpredictable pace.  Here today, gone tonight. 

If you are considering buying a home in Steiner Ranch or Selling your home in Steiner--please do give me a call so we can discuss your Real Estate needs. 

Let's Talk.

Homeless and Cold in Austin

If you had to choose a city to end up being homeless, I suppose there are worse places to be tonight. We are fortunate in Austin because of our strong economy and mild climate, and our homeless population is smaller than many cities--but it has grown over the past couple of years. 

This time of year as the freezing cold weather has made it's way to our area, most of us are busy covering our hose bibs and outdoor plants, while some of our neighbors are concerned about a much more fundamental need--keeping warm and eating. 

Join me and my friends this year by giving a very small gift to folks in need in the Austin area. If you don't have a charity that you support, consider this humble organization--Mobile Loaves and Fishes. Mobile Loaves was founded here in Austin and has a very simple mission--Feed and Clothe Austin's homeless. 

A pair of clean, white, warm tube socks and a winter cap can bring great delight to the face and heart of a person living on our streets. A simple gift, that will warm your heart.

Mobile Loaves & Fishes, Inc.
903 South Capital of Texas Highway
Austin, Texas 78746

Recently Sold Homes In My Area -- How much did they sell for?

Q: How do I find out how much the recently sold homes in my area sold for? 

A: It is a very common question and the answer may depend on where you live. In Austin, and in all Texas cities, the only correct answer to this question is from your local Realtor.

Q: But several web sites show "sold" data and comparable home values. Isn't this sold data and true market comp data?

A: No. Not for Texas. It is not market value based on sold data. Texas is a Non-Disclosure state, so MLS sold data is not public information and it is not published to the taxing authorities either. The only way the county taxing authorities can get sold home data is if the home owner volunteers this information upon request or upon dispute of tax value. So, there are some specific properties where the county has real sold data, but most of their information is based on a spread sheet analysis of home size compared to other homes in the zip code.

Q: When will the county come in and appraise my home?

A: Never. Your local county only has a few appraisers who cover for thousands of homes. These people mostly sit in front of a computer--"assessing home values". Unlike the Appraisers who works for banks and came out to your home when you bought it, examined your home, measured it, took pictures of it and compare it to other homes that were sold in the community during the past 6 months--the job of the county appraisal districts is to create a spread sheet analysis of homes in the area and generate revenue for local taxing entities. 

Q:  Does the county have Appraisers on staff to do individual and personal appraisals?

A: The sheer numbers of Appraisers that would be needed to do personal appraisals for an area like Austin where over 21,000 homes a year sell, would be off the chart compared to the few appraisers that are actually on staff. There are approximately 75 homes a day that close in Greater Austin. It would probably take at least that many Individuals to cover for all of the counties business alone.

Q: What does that mean about the accuracy of information for the "tax value" of a home vs the "market value" of a home?

A: It means that these are two different kinds of information and generally speaking--they are unrelated information, at least for Texas. Market Value is what a buyer is willing to pay and a seller is willing to sell for--a given home, of a given size, age, condition, location and features.  Tax Value is what the taxing authority has determined to be the tax value that a home owner will pay in local taxes. The home owner may or may not agree with the taxing value of their home. 

Two big take-aways to consider here: 

1. All Real Estate markets are local and different. Ask your Realtor how it works in your state and city. Don't assume that it is the same in your area. 

2. When you are buying a home--employ a Realtor. It is free* to you as a Buyer to have a Realtor represent you and for such a big and important purchase--why wouldn't you want the best possible representation in your corner. 

If you are looking for a home in the Greater Austin Area, give me a call. Let's Talk.

(*I suppose there may be some exceptions to this rule, but I can't tell you off of the top of my head what they would be; generally speaking, the Buyer's Agent fees are paid for by the seller, not the buyer--so, why wouldn't you hire a Realtor? It is already paid for).

"Low Ball" Offer in a Seller's Market

In light of the past 2 years of national Real Estate news, the phrase "Seller's Market" may seem out of place to many of us. Understanding how to respond to and win in a market that is leaning toward the seller's advantage is important to both Buyer and the Seller. Having a Seller's Market does not mean that Seller's can have their way and sell homes above market value, but it does mean that given low inventory levels, buyers are going to move faster to buy homes that show well and are priced to market. It also means that buyers are much more likely to get into bidding contests over the homes that they really like and homes are more likely to sell at or near their listing price. Lastly, in a market that is bent toward the seller, buyers find that desirable houses come-on and go-off of the market at a much faster and unpredictable pace.  Here today, gone tonight.

A Seller's Market is usually defined by inventory levels being below approximately 5 months. That means, in this market if no additional homes are put up for sale, every home that is currently for sale should be sold in 5 months. Of course, the inventory of homes is constantly changing. New homes are being listed and existing homes are selling--so some of today's homes will sell fast and some will not sell at all. If it's a Seller's Market--wouldn't all the homes sell? No. Not if they are not priced to market and show well to their comparable market value. But the homes that do show well and are priced right, tend to sell much faster than the annual trends for days on market (DOM). 

So, how do Buyer's take advantage of a Seller's Market? Buyer's who are serious about buying during a Seller's Market must be ready to look aggressively during the week at homes that meet their needs and when they find a home that they connect with--you can't hesitate. Be ready to make an offer before you find the house, so when you find it--you are ready. If it looks right. Feels right. Smells right. Make an offer immediately. The same day if you can. Every hour that you wait to make an offer is an hour that another buyer who saw the home earlier in the day may be negotiating an offer on the same home and beating you to the draw. You may think "Well, if it is meant to be--it will happen." Maybe. But I have seen many buyers express this same sentiment regarding an offer that they missed or under-bid and then for months afterwards regret that they did not get that particular house. Never finding another house that they connected with as much as they did that one. It is the hardest and worst part of my profession. Seeing a buyer regret not getting the home that they really wanted.

The second mistake that Buyers can avoid is presenting an offer that is too low when they know that there are multiple buyers interested in a very interesting property. This is very hard because all we have heard on the news for the past 2 years is how hammered the Real Estate market has been. But when you are looking at a local market that is doing well, is growing, appreciating and has low inventory of well presented homes--you can not expect to make "low ball" or bargain deals. The truth is, a bargain is getting a great home that you love and you connect with emotionally. Paying market value on a home in a market that is going up is not a bad thing. If you wanted to buy cheap Real Estate, let your Realtor know. We all know those communities and those areas--but then you must realize you are buying a home in a much higher risk area. As long as you are willing to take the risks, you can still buy discounted properties.

Real Estate is a business of risks and rewards. Just like the stock market. The low risk investments cost more than the high risk investments. If you are an investor in the game of high risk investments--I have areas in town that we can talk about. If you prefer to invest in areas where the communities are well established and known, just remember that you always pay for what you get.

If you are considering a new home in the Greater Austin-Round Rock MSA, give me a call. Let's Talk.