Austin Property Talk

Happy Memorial Day

Austin Texas Picked as No. 1 Best City

Austin Texas and Real Estate news for the week . . .

Austin was picked as the No. 1 best city to live in for the next 10 years in Kiplinger's Personal Finance ranking Wednesday. The magazine cited the capital city's innovative thinking, plentiful music venues, lakes, parks, unique business climate and job-creation tendencies. The report said "arguably the country’s best crucible for small business, Austin has spawned many companies with unique twists that have gone nationwide." Kiplinger's chose cities with positive business climates, but also unique livability appeal.  Read more Austin Called Crucible for Small Business.

Austin was ranked among the top 20 Memorial Day vacation spots, according to a survey from Web booking engine Priceline.com.  The Texas capital took the No. 18 spot, ranked according to a survey of more than 30,000 hotel booking requests for May 29-31.  Austin top Memorial Day destination reflected in Americans' travel plans.

Austin home sales continued to rise last month, increasing 31 percent compared with April 2009, according to Austin Board of Realtors statistics released Thursday.  Home sales for the month totaled $486 million with 2,043 single-family homes sold, according to the Multiple Listing Service report. When compared to April 2009, the median price of real estate was unchanged in Austin at $190,700. Most promising, pending sales increased 47 percent to 2,813.  Austin Home Sales up 31% in April.

Continued instability in financial markets overseas drove U.S. fixed-rate mortgage rates lower this week, and Freddie Mac's chief economist on Thursday said the low rates could soften effects of the home-buyer tax credit's expiration. Fixed Rate mortgages continue to fall.  

Post-Tax Credit Buyers May Save Money

From REALTOR Magazine . . .Missing the tax credit deadline might have seemed like a big mistake to some home buyers, but waiting could have been the smartest thing to do.

Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.

At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.

The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.

That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.

Source: Informa Research Services (05/26/2010)

Memorial Day Weekend = Tax Free Appliance Sales

If you're in the market for a new refrigerator, dishwasher or other appliance, shopping Memorial Day weekend will save you money.

During Memorial Day weekend, Texas shoppers get a break from state and local sales and use taxes on purchases of certain energy efficient products. The 2010 Energy Star sales tax holiday begins at 12:01 a.m. on Saturday, May 29, and ends at 11:59 p.m. on Monday, May 31 (Memorial Day).

You must purchase an appliance that's received the Energy Star rating. Those products not only reduce energy demand and greenhouse gas emissions, they'll also save you money in the long run. Qualifying products will display the Energy Star logo, which may appear on the appliance, the packaging or the Energy Guide label. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy. Earning the Energy Star means a product meets strict energy efficiency guidelines set by these two federal agencies.

 

There is no limit on the number of qualifying items one can purchase during this sales tax holiday, and an exemption certificate is not required.

"Americans saved somewhat in the neighborhood of $16 billion in their utility bills and reduced gas emissions by the equivalent of 27 million automobiles," Ronnie Volkening of the Texas Retailers Association said. "That's the results up to now and in the year 2007."

The following items will be tax-free:
-- Air conditioners priced under $6,000 (room and central units)
-- Clothes washers (but not clothes dryers*)
-- Ceiling fans
-- Dehumidifiers
-- Dishwashers
-- Light bulbs (incandescent and fluorescent)
-- Programmable thermostats
-- Refrigerators (less than $2,000)

Read this for More Information

May 2010 Better Austin Living Newsletter

The May 2010 Better Austin Living Newsletter is now posted on the Newsletter Tab.

In this month's newsletter you will learn how to de-clutter your mind, how to infuse more energy into your normal workday, and determine your problem solving style.

Did you know that in early drafts of Shakespeare's "Romeo & Juliet" the male and female leads were called "Charles" and "Diana"?    

Figure out what to do and not to do when you are planning a trip abroad.  

Enjoy the newsletter.  If you are not a subscriber to my newsletter and would like to be, shoot me an email - Ryan@BetterAustinLiving.com.  

If you would like to start receiving my bi-weekly e-zine with little quips, stories and anecdotes, you can sign up by entering your email address about half way down the left side of this page where it says E-news sign up. 

Staging for Success

I have quickly become a staunch advocate of staging my property listings for sale prior to putting them on the market. 

In all honesty, it used to be something that I was hesitant to recommend to clients because I saw it as an added expense and/or nuisance.  However, after having a number of vacant listings in the past year and seeing what a drastic difference staging those properties has had on both the presentation and ultimately the bottom line of the listing, staging is something that I will strongly recommend to all of my clients from here on out.  

I believe one of the common misconceptions with the whole idea of staging is that it will require the homeowner to spend a lot of extra money to rent or buy furniture, not to mention pay a decorator or professional stager to complete the project. 

While that is certainly one way to go about it, it doesn't necessarily have to be that way.  Certainly, if the house is completely vacant, you will have to find a way to get your hands on some furniture and decor.  But otherwise, most staging jobs can be completed with furniture and accents that are already owned.  It just requires some creativity, imagination and an open mind. 

Surveys show that staging pays off and often helps to sell a home fast. But your clients don't have to spend thousands to make a big impact. Put the home center stage with these thrifty tips:

Fortunately for me (and my clients), my talented and creative wife has helped me (and them) stage my last 5-6 listing and the transformations have been pretty amazing.  Here are the photographs from my most recent listing for sale.  This staging job was completed with a combination of some of the owner's furniture and some of the accent pieces and props that we have accumulated over the past year.  It only took a little sweat equity.  Not a dollar was spent to complete this job.  Granted, I owe Kristin a lot of gratitude and hugs for her generosity and help.  She is pretty proud of our work. 

I offer complementary room by room reviews with home owners who are considering selling their house or need some recommendation for improvements to sell.   To set up a time that is convenient for you, shoot me an email. 

10 Tips for Time Management in a Multi-Tasking World

A good article that came to my email inbox this morning on time management.  However, I guess I broke one of the biggest rules here - working on the most important task before checking email - oops. 

Time management is one of those skills no one teaches you in school but you have to learn. It doesn't matter how smart you are if you can't organize information well enough to take it in. And it doesn't matter how skilled you are if procrastination keeps you from getting your work done.

Younger workers understand this, and time management is becoming a topic of hipsters. One of the most popular blogs in the world is Lifehacker, edited by productivity guru Gina Trapani, and her forthcoming book by the same name is a bestseller on Amazon based so far on pre-orders.

In today's workplace, you can differentiate yourself by your ability to handle information and manage your time. "Careers are made or broken by the soft skills that make you able to hand a very large workload," says Merlin Mann, editor of the productivity blog 43 Folders.

So here are 10 tips to make you better at managing your work:

Property Tax Time

If you are a property owner in the Austin area, you should have received your notice of property appraisal value in the past week or so.  Typically, this is the time of year that homeowners groan about tax hikes and high property values.   This year is a little bit different for most, as on average, property values in the Austin area have declined over the past year.  How was the value of your home affected this year? Click here to learn why this year is a rarity.

The notice of Appraised Value that you received in the mail from your appraisal district will breakdown for you the proposed value of your property as of January 1, 2010.  However, the actual local tax rates will not be set until later in the year.  So we wont know exactly what effect the difference in value will have on our property tax obligation for the year. 

I can tell you from personal experience that tax appraisal value and current market value are often not the same.  Depending on the history of the appraisal value tied to your property, these numbers can be off by as much as tens of thousands of dollars.  Sometimes positively and other times negatively.  Still, its important to make sure that the Notice of Appraised Value is as accurate as possible to avoid paying more than necessary in the future. 

If you do not agree with the assessed value, you to have the right to protest.  Make sure you file your Notice of Protest before the deadline which is usually June 1.  I've put together a brief resource for you explaining both the tax appraisal and tax protest process. 

If you have any property tax related questions or you need a little bit more information about one of your properties, I'd be glad to help.  Just shoot me an email or give me a call at: (512) 773-3493.

Link it Up

4 Links to interesting news & insight about homes, home loans and the real estate market for you on this Friday.  

You want to buy a foreclosure? Remember, there are both great opportunities and great pressures and pitfalls in this market.  First, you have to decide at what stage of foreclosure you want to buy. There are three options: 1. pre-foreclosure; 2. sheriff's auction; 3. repossession, called REO (for real estate owned by the bank). How to Buy a Foreclosure

The number of buyers who signed contracts to purchase homes surged more than expected in March, another sign that government incentives are propelling the housing market this spring. Pending Home Sales Rise 5.3 Percent.  

Taxpayers who labored to meet the April 15 deadline face an even more daunting endeavor: figuring out which documents to save and which can be safely assigned to the shredder.  Save it or Shred it?

You probably know that boosting your home's curb appeal is one of the most important ways to maximize its value. But that doesn't mean you need to take on a pricey job like replacing the windows or installing a blue-stone walk. In fact, you'll probably get a bigger bang for your buck with upkeep that costs a few hundred dollars at most -- like touching up the paint, mulching planting beds, and staining fences and decks.  The Best Outdoor Jobs to Tackle Now

Foreclosure vs Short Sale vs Resale

I always like to compare the sales data between regular resales and distressed property sales due to the recent popularity of bank owned homes and distressed properties.  Everyone is looking for a deal.   I pulled the numbers for the first quarter of this year to compare.

From January 1 through March 31, 2010 . . . . .

Regular Home Sale Transactions

• 2939 homes were sold that were not labeled foreclosures. 
• The average size home was 2190 square feet and sold for $116/sqft
  
• That equates to an average sales price of $259,345
• The average final sales price to original list price was 93.8%
• These houses sold in an average of 78 days
  

Foreclosure Transactions

• 518 foreclosed homes were sold via central Texas MLS
• The average size home was 2023 square feet and sold for $74/sqft 
  
• That equates to an average sales price of $148,873
• These houses sold in an average of 41 days
• The average final sales price to original list price was 92.7%

Short Sale Transactions

• 44 short sales were completed according to the MLS system
• The average size home was 2424 square feet and sold for $81/sqft
• That equates to an average sales price of $198,908
• These houses sold in an average of 95 days
• The average final sales price to original list price was 93.4%

Yes, the difference in the price per square footage numbers between regular and distressed properties is significant.  However, you have to consider the fact that the bulk of the foreclosures that are sold via MLS are usually located in areas further outside the Austin city limits.  As such, property values are lower to begin with. 

The majority of the prime foreclosure properties with the better yields and higher property value are sold at the foreclosure proceedings at the court house steps.  Also consider that these resale numbers include new construction home which on average sell for a higher price per square foot. 

Still, if you are not afraid of getting your hands dirty and taking a little bit of risk, foreclosure still offer a great opportunity to some.