Austin Property Talk

Flipping Out

I always joke that when the cable company installed the cable at our house that they only gave us three channels: Bravo, HGTV and Style.  Seems like at any given time one of those three channels is being watched by Kristin, my wife.  Except, that is, when American Idol or Dancing with the Stars is on - at which point one of those other channels is being recorded. 

However, all kidding aside, there is one show on Bravo that we both really enjoy.  There are very few shows that I almost have to watch live (see Entourage & Sports).  Most often, I'm strictly a DVR guy.  The ability to fast forward through commercials is one of the best things since sliced bread. 

Flipping Out (Tuesdays on Bravo) is one of those shows that I look forward to watching. 

A little background on the show.  I believe this is the third season.  At its inception, the show chronicled two Los Angeles house flippers, Jeff Lewis & Ryan Brown.  When they began filming, the California real estate market was booming and these two were 'rehabbing' or 'flipping' four to five multi-million dollar properties at any given time.  Business was thriving and they were printing money left and right. 

In season two, the show began to focus a little bit more on Jeff Lewis and his interaction with his of house assistants (which number five or six now).  Lewis, though extremely talented, is one of the most neurotic, obsessive-compulsive personalities on TV and his day to day interaction with people has the ability to carry the show, real estate non-withstanding.  

The current season details how the sharp downward shift in the real estate market has forced Lewis and Brown to focus more on their own design businesses driving a wedge into their relationship.  However, Lewis is quickly tiring of having to cater to to his equally neurotic clients and is looking to get back into the house flipping game. 

The show is quite entertaining.  If you have any interest in these 'docu-series' type of shows, Id encourage you to check it out on Tuesdays or record it. 

For all Twitter'ers, you can follow Jeff @ JL_Jeff_Lewis

Check out the September Newsletter and Update

I just mailed my September newsletter this morning.   A bit behind schedule, I know, but its in the

mail nonetheless.  It includes an lengthy
summary of our recent trip to San Francisco over Labor Day weekend.  I hope that you enjoy that.

Remember, you can access all of my newsletters on the left hand side of this page.  Ive archived all of the past editions in case you need to catch up. 

As always, I welcome feedback and would love to hear your thoughts on what you like about the newsletters and what types of information you would like for me to include in the future. 

Email me:  ryan@stonehavenrealty.com

Fifth Mistake Seller's Make: Getting emotional about the House and the Sales Process

Perhaps the most costly mistake that sellers make is becoming too emotionally invested in the home sale process.  Once the sign goes in the front yard, all decisions regarding the house should be made on an impersonal investment level and not an emotional level.

“I paid $_____ for that upgrade, don’t they know what its worth.”  The buyer may or may not know what it cost you to install (fill in the blank) but it may not be something that is valuable to them.  Upgrades and additions to your home are sometimes taste specific and you cannot count on getting a dollar for dollar return on every home improvement you make.

“The house hasn’t been listed long enough to accept an offer.”  And, “We obviously listed the house too low if we got an offer already.”  These are two of my favorites.  Ask someone who has had their house for sale for 6 months if they wished they'd received a quick offer.  The point of listing the home for sale is to sell the home. If I were selling my home, Id rather sell it for full price on day 5 than day 35.  When a seller receives an offer early on in the sales process, it means that the home was priced right and in demand.  Trust me when I say that coming to an amicable agreement for sale early on in the process benefits everyone involved.

“We aren’t even going to even respond to that offer.”  Lowball offers are one of the most sensitive issues with sellers.  The fact of the matter that is that in real estate, like every profession, there are professionals and there are amateurs.  Amateur agents are either not skilled enough or confident enough to advise their buyer clients on how to present appropriate offers.  Couple that with the current misconception amongst buyers that prices are falling and you have a recipe for the occasional low ball offer.

The most important thing to remember in any offer situation is that it’s a negotiation.  Sometimes a buyer will submit a low offer to try and gauge seller motivation.  You should respond to all offers one way or another.  If your Realtor has done his/her job in educating you about the market activity in your neighborhood then you should have a very good idea about the value of your home.  Therefore, you negotiate from a position of confidence that a qualified buyer will come along in the near future.  However, if lowball offers become the norm and not the exception, it might be time to reassess your asking price.

GoLocal Austin

Bob Tuschak, founder of Go Local Austin, visited by business networking group last month to share some information with us about the Go Local venture.  

The vision of Go Local is to publicize and support local small businesses through the use of a Go Local card - keeping our money in the Austin economy.  As opposed to the incentive programs

used by most national retailers (buy 4 get the 5th free) the GoLocal card offers instant discounts or rebates when used at participating local spots.  The best part is that you can use the card each and every time you visit the local retailer.  There are no one-time-use restrictions. 

For instance, next time you go see a movie at Alamo Drafthouse, save 10% on your food bill, ditto at all 13 Amy's Ice Cream locations around Austin.  You can purchase the Go Local cards at all participating retailers for $10. 

Ive found so far that most of the participating businesses are currently in South and Central Austin.  Bob says that they have plans to expand further north as time and resources allow.  

Visit the Go Local Austin website for a full list of offers.

Fourth Mistake Sellers Make: Failing to Maximize the Accessibility of thier Home

If my experience as a Realtor has taught me anything, its that I have to be flexible. 

A buyer client may send me a list of ten homes the day before that he/she would like to see on a given Saturday only to call back early Saturday morning to add two more and delete numbers 4 and 10 - after I’ve already made arrangements with the home sellers mind you.  I have to make adjustments on the fly because this may be the only time in the next week that we can get in to see these houses.

And guess what sellers?  You need to be flexible too.  This means the willingness to be out of the house with 30-45 minutes notice.  This means that if a buyer happens to be in the neighborhood looking at another house, picks up a flyer from your sign and wants to see the house right then and there – step outside for 15 minutes or go take a stroll through the neighborhood.

Bottom line is when you put your house on the market for sale; you lose the right to be inflexible.  That is if you want to sell quickly.  All it takes is one buyer to fall in love with the house and if you knowingly or unknowingly deter that buyer from seeing the house, you may have lost a potential sale.

The same holds true for only showing the house “by appointment with owner” and failing to secure pets for showings.  If you make it difficult for buyers and agents to see your house - welcome to days on the market.

Make things easier on buyers and you will make things easier on yourself.  After all is said and done, its much easier to live in your house while it’s for sale for 45 days than 4-5 months.

Download a Free Report on How to Prepare Quickly for Buyer Showings.

315,000 People Across the United States have done it - Have You?

As of the end of August, over 300,000 individuals have claimed their $8000 tax credit by purchasing a home and amending their 2008 tax returns according to CNN Money.  You can read the full article here.

In case you are not familiar with this or how you can qualify, Ive put together a brief report with all of the details on the $8000 First Time Home Buyer Tax Credit.  

According to a recent survey done by the National Association of Realtors, over one million buyers have qualified for the tax credit with that number expected to reach 1.8 million before the deadline of November 30th.  Buyers are not required to claim the credit on their 2008 tax return and many are waiting until they file next April. 

If you've been on the fence about whether or not to buy, now is your best chance to take advantage on this incentive.  To be safe, its recommended that you be "under contract" to close on your purchase no later than mid-October. 

Third Mistake Sellers Make: Failing to Appreciate the Buyer's Point of View

Unreasonable though it may be, a prospective buyer would like to see a perfect home from top to bottom and inside and out.  Buyers take mental deductions as soon as they see something about the home that they will have to either repair or replace altogether.  Just because it works for you, doesn’t mean that it works for everyone else. 

To maximize the potential of a fast and profitable home sale, make sure to attend to the following items:

On the Outside:  sweep all walkways, park extra cars away from the property, trim back shrubs and low hanging limbs, clean windows, maintain sprinkler systems, make sure the roof and gutters are in good condition, mow, edge and maintain flowerbeds frequently. 

On the Inside: make sure the kitchen and bathrooms look and smell clean, have carpets professionally cleaned, put away dishes, make all beds and put away laundry, straighten closets, open drapes to allow natural light to come in, keep pets secured and out of the way, secure all valuable. 

Download my Free Report on Staging & Preparing your Home to Sell.