Filed under: Real Estate | Tags: Real Estate, Austin homes, Austin real estate, real estate values
I attended a short sale seminar this week and one of the topics covered was “small (or tiny) pricing”. This is a strategy used by some agents to encourage bidding wars. The agent will price a home well below market value ($20K-$50K below), and sit back and wait for multiple offers to come in. Naturally the listing agent will let the buyer’s agents know they have to make their best and highest offer due to the multiple offers on the table.
I’ve had a client make an offer on just such a listing, and his offer was not accepted. It can be a nearly impossible task to convince a buyer they need to offer more than list price in this economy. Sure, the list price is obviously below market, but buyers who haven’t been looking for a long time don’t know that. And if they don’t know the market well, and haven’t built up a lot of trust with their REALTOR®, they certainly aren’t going to offer $20K above list price in most cases.
While this is not a one-size-fits-all strategy, I do think it may serve some sellers well. In a suburban neighborhood where many homes are similar in features and the market value is fairly easy to assess, it might not be too risky of a strategy. However, in talking to another agent, I know the strategy could fail in some cases. As an example, a newer home in the Lake Travis area was listed for sale for $800K and it sat on the market for months on end, until it finally went into foreclosure. Soon after, the bank had the home listed for $300K. A buyer came along and paid $292K and cleaned it up a bit. It went back on the market for $550K. Somewhere around $500K is a reasonable price for the house. I wonder, was the bank’s listing agent trying to use the small pricing strategy? Or was it simply a fire sale?
And just yesterday a property came on the market for $110K. It is almost identical to a property that my client made an offer on a few months ago, and my client was willing to pay $135K for it. Is this another example of small pricing? While I’d be inclined to advise a client to offer full price, I just don’t know if I’d be able to advise an offer of $25K above list. It depends on how much my clients want a property.
One thing is for sure, now that I know agents are using this strategy, and it’s being taught in seminars, I will have a better idea of why some properties are listed so low. And I’ll have my own strategy for dealing with small (or tiny) pricing.
Filed under: Real Estate | Tags: Austin, Austin real estate, central Austin homes, Real Estate
We’ve often been told that urban flight occured in the 60’s-80’s, but seeing the numbers gives you a true picture. According to the city of Austin, here are population totals from 1940 to 2010:
1940 — 12,560
1950 — 10,609
1960 – 6,790
1970 – 5,021
1980 – 3,084
1990 – 3,882
2000 — 3,855
2002 — 4,525
2004 – 5,276
2006 – 5,859
2008 – 9,725
2010 – 11,200
The city of Austin had actually predicated a downtown population of 14,672 by 2010 before the economic slowdown. The revised and lower number is based on finished and approved residential projects, and is an estimate from the Downtown Austin Alliance.
Considering the current traffic congestion downtown, I hope a good number of these new residents opt for biking or mass transit!
Filed under: Real Estate | Tags: Green Homes, Austin homes, Austin real estate
It has now been six months since the ECAD (Energy Conservation Audit and Disclosure) Ordinance took effect in Austin. As the ordinance was being developed, many people were afraid the rules would cause delays in closings, or cause a financial burden to sellers. However, the final ordinance gave a number of exceptions and alternatives, so there hasn’t been a slowdown in closings nor a financial burden to sellers. Very few of the homes I’ve sold have been required to provide the audit since they are either newer than 10 years, outside the city limits, or have had energy efficient renovations prior to sale.
Agents and sellers alike have been on top of this ordinance and have been proactive in meeting the guidelines. I have read the new disclosure/audit, and find that it is somewhat useful. Personally, I think if sellers had to provide a 1-year history of utility payments, that might provide equally valuable information, and it’s free. I do often ask for utility payment history, and have been very surprised by some of the bills. I’ve had sellers in tiny houses with electric bills surpassing $300/month – a strong indication that the home needs sealing and insulation, and perhaps new appliances or HVAC systems.
If you’re getting ready to sell and have questions about the energy ordinance or upgrades that will help sell your home, call Vikki Goodwin, 512-426-9090, REALTOR, Homes ATX.
Filed under: Real Estate | Tags: Austin homes, Austin real estate, Real Estate, Southwest Austin real estate
I visited Gabardine today to see what it’s like. I pass it almost daily on my drive, and I’ve heard from another Realtor that it is a neat community. The first phase consists of 53 homes, all 2-story, mostly in the lower price point of $170K-$250K. A second planned phase will have larger homes, including 1-story homes, and a community center and pool. The first phase of homes all have 1-car garages and small yards which are maintained by the HOA. The monthly HOA fee is $155, similar to a condo fee, and like condos all exterior maintenance will be handled by the HOA.
The neighborhood is really quite different from those around it. While Shady Hollow, the Estates of Shady Hollow and Barker Ranch all tend to feature larger lots and lots of trees, Gabardine has very small lots and not as many trees yet. The homes are craftsman style, no brick or stone exteriors. The neighborhood is gated, and some of the homes have a courtyard between the garage and home. Located on the side of the first phase is a 13-acre park with a creek running through it.
So far the neighborhood has a certain charm to it. It has a nicely landscaped entrance and each home is painted a different vibrant color. The courtyard is set up with vibrant, colored chairs and a neat fountain in the middle. Maybe one day it will be host to neighbors gathering around to talk to one another. The homes feed into highly regarded schools: Baranoff, Bailey and Bowie.
Overall, while this is no Shady Hollow, it is it’s own cute and quaint community that I believe will flourish. I’ll check back in a while and see how far along it has come. Click here to see homes for sale in the community, and check with me for more information and price opinion. Vikki Goodwin, REALTOR®, Homes ATX, 512-426-9090.
Filed under: Real Estate | Tags: Austin real estate, homes, Real Estate, tax credit
It’s official now, an extension of the first-time home buyer tax credit was signed into law today. The law expands upon the $8000 credit by now offering a $6500 tax credit to buyers who have owned a home for at least 5 years. The home purchase price must be less than $800K. The law passed the House of Representatives with a 403-12 vote. The new law also raises the income limits up to $125K for singles and $225K for couples. Because of questionable claims made under the previous law, the new law include measures to prevent fraud. It’s estimated that the previous law resulted in $10 billion of lost revenue just through Aug. 22.
Filed under: Real Estate | Tags: Austin homes, Austin real estate, hill country views, lake area homes, Lakeway, Real Estate
It is difficult to find homes on acreage in the Lakeway area without the price tag going over $500K, so this home, priced at $435,000, really stood out when I saw it last week. Situated on 2.52 acres, the 2865 sq ft home was built in 1998 and has 3 bedrooms plus a study, and 3 baths. I really liked the feel of the home from the moment I walked in the door. The living room is open with big windows to the hill country, panoramic views, and the kitchen is completely open to the living room and dining area. There are two bedrooms and baths downstairs, and one bedroom and bath upstairs. The home is located in the Majestic Hills Ranchettes. Click here to see more, or call Vikki Goodwin, REALTOR, Homes ATX, 512-426-9090, for further details.
Filed under: Real Estate | Tags: Austin homes, Austin real estate, Real Estate, real estate investment, real estate values
Have you heard the radio commercial advertising foreclosures going for under $20K and allowing people to buy homes for under $200/month? I truly wish the radio station owners would refuse to allow such misleading ads to be aired on their stations. There are no homes for sale in Austin for under $20K – not even foreclosures. Now maybe you can find a dilapidated, foreclosed mobile home in Neiderwald for that amount, and granted the commercial doesn’t specify what you’ll get or where… Besides, taxes and insurance alone will start at $200/mo. On average, I find that foreclosures aren’t marked incredibly low, except in rare instances in which the remaining loan balance is very low and the bank can afford to give it away. This mainly applies to older properties, usually in a bit of disrepair. There are deals out there, but often you get what you pay for. If you’re interested in finding a good deal, either as a home or an investment, just let me know. This year I’ve purchased investment properties for myself, and I’ve helped several of my clients find good investments. For help with investments, contact Vikki Goodwin, REALTOR®, Homes ATX, 512-426-9090.
Recently I’ve come across a number of homes with converted garages – or garages that were turned into living space. One homeowner went to great lengths to make it unnoticeable from the exterior by adding stonework where a garage door once was. While this gives a homeowner added living space, it takes away storage space and/or space for a motorcycle, tools, workbench, 2nd refrigerator, etc. Buyers usually want the garage space instead, making homes with converted garages a tough sale. I’ve even seen one garage turned into a music studio. Naturally it was sold prior to me meeting my musician client looking for just such a set up!
Right now in Austin, there are 3500 homes for sale. Of those, 633 have no garage (or a converted garage), 262 have a 1-car garage (typical of older homes in central Austin neighborhoods), 1,922 have 2-car garages (most typical), 582 have 3-car garages, and 101 have 4+ car garages.
Filed under: Real Estate | Tags: 78704 homes, Austin homes, Austin real estate, Real Estate, South Austin real estate, South Lamar homes
I viewed a number of homes in the Zilker area this week – a few that are updated, one that claims to be updated, and one tear down. For $180K, you can buy a small lot (.159 acre ) near the corner of Kinney Avenue and South Lamar. Currently there is a 756 sq foot house on the lot, but it would probably be easier and safer to tear down the existing home than to try to fix it to current standards. A home for sale on Oxford Ave shows some promise, but needs work. It was remodeled in 2000 and was taken down to the studs at that time, but it is currently somewhat needy, although that’s reflected in the price ($299,900 for 1309 sq feet). Two of the homes seem ideal for someone who travels a lot or doesn’t live there full time. These two homes have been completely remodeled and are beautiful but small, two bedrooms, two baths each. They share a driveway and share a lot that has been divided, but they don’t share any walls. Another house down the street is said to be “beautifully remodeled” but it didn’t appeal to me as much as the previous two updated homes. The steps from the kitchen to the family room seem somewhat perilous, and the berber carpet seems more appropriate for an office than a home. The last house I saw was neat and appealed to my client as well. I especially liked the stained glass window and the bathroom remodel.
On average, homes in the Zilker area, 78704, are selling for $250/sq foot. Those that are updated or new can run closer to $300/sq foot, especially the smaller homes. For a list of homes for sale in the 78704 zip code, see my website and scroll down for the neighborhood or price range you need.
Filed under: Real Estate | Tags: Austin, Austin real estate, mortgage, mortgage climate, Real Estate
I just read an Austin Business Journal article stating that Austin is ranked eight among cities on Fortune Magazine’s “Top Place to Launch a Small Business” list. I know first-hand of a number of people who have been laid off this year and have used that as an opportunity to start their own businesses. A couple of these people were clients of mine renting homes and looking forward to buying in the near future. However, after going into business for themselves, they are now faced with waiting at least two years before they can qualify for a mortgage. Lenders require two years of tax returns showing income before they will make home loans to those who are self-employed.
From the Fortune article, ”The Austin metro area, which has doubled its population growth in the last 20 years, is often used as a test market by national companies because its large minority population reflects the nation’s future demographic mix. With University of Texas college students in residence, the area offers entrepreneurial opportunities for the youth market and skilled workers for local businesses. One-third of the area’s payroll is related to technology jobs, contributing to Austin’s reputation for having one of the most educated workforces in the nation.” On the negative side, Fortune noted the traffic problems and lack of flights to desired markets. Ahead of Austin on the list are Oklahoma City, Pittsburgh, Raleigh, Houston, Hartford, Washington, D.C. and Charlotte.
