Real Estate Information

A well-planned maintenance program is the best insurance policy against deck repair and replacement costs. Sun and moisture can cause premature rotting and decks must be maintained to avoid unnecessary repairs and replacement costs. Sweep the deck often, and when it gets very dirty, hose or scrub it down.

Look for water stains where the deck ties to the house since leakage can lead to wood decay. If you have any doubt about the structural integrity of the deck, call a pro to investigate. Get rid of moss and mold. Pressure washers are effective if used properly and carefully.

Remember, if you see wood damage, like raised fibers, increase the distance between the spray nozzle and the decking. Normal wear and tear may also loosen joints and connections, so check and tighten them regularly. Apply a coat of wood stain or water repellent every 1 to 2 years.

Most of us have learned the hard way that a home will not maintain itself and we ought to budget for routine maintenance and repair for the house and yard. High cost, irregular expenses will occasionally occur as our homes age. Expenses such as interior and exterior painting, repairs or replacement of the heating and air conditioning units and appliances, floor coverings and roof surfaces can often surprise you.

Experts recommend setting aside 1-3 percent of the market value of your home each year to pay for maintenance and repair costs. Even though all of these funds may not be needed if your home is new, the accumulated amounts will help you prevent a budget crisis when it is time for large future expenses such as re-roofing or replacing a heating unit. Preventative home maintenance helps provide a healthy, safe environment and it protects your growing investment. We suggest having a qualified home inspector inspect at least every ten years.

Some Suggested April Home Maintenance Items

1 .Mark and monitor small/hairline cracks in foundation. If stable after a few months fill with epoxy. If they've expanded beyond one half inch, call a structural engineer.

2. Inspect crawl spaces for seepage/leakage.

3. Inspect roof for any missing, loose or damaged shingles.

4. Check and clean AC/furnace systems. Follow the manufacturer's recommendations

5. Clean and/or replace the AC/furnace filters. Adjust thermostats for season change.

6. Check and clean gutters, downspouts and extensions and repair/replace as needed

7. Do a safety check: smoke detectors, fire escape routes, fire extinguisher, carbon monoxide alarms and window locks.

8. If you have a fireplace check flue to make sure it is closed for warmer weather.

9. Scrape, caulk and paint any wood surfaces that have peeled or weathered.

10. Clean and inspect windows, windows sills and caulking.

Our sellers are constantly looking for ways to prepare, stage and de-clutter in anticipation of marketing their home or sometimes they are just moved to “straighten this place up”. We often get questions in regards to what do we do with all this stuff?  

We like to encourage folks to de-clutter in an eco-friendly was as possible. 

Since Earth Day is coming up on April 22, we thought we'd list a few Austin area resources for disposing of your “stuff” in an environmentally sensitive way. 

Most of these resources are free, but some charge a small fee.  Well worth it when ridding your life of that annoying junk and that little boost to your  social conscious feels nice as well. If you are donating, be sure to ask about a receipt for donations.

Quick Fix

Goodwill in Austin will accept almost anything under the sun - even computers, satellite dishes, and electronics - but not building and hazardous materials.  

Paper

Austin:

ARMA Shred Day – April 17th

8:00 a.m. – 1:30 p.m.

Austin High School Parking Lot 1715 W. Cesar Chavez Households can bring up to five file boxes of paper records for shredding.  Mobile shredding trucks from Austin Shred, a Balcones Resource Company, CenTex Shred, Certified Shred LLC and Iron Mountain will be on-site to shred the material.

Building and Hazardous Materials

City of Austin

Habitat for Humanity  

RE-Store Austin

Earth Friendly 

Earth911.org and Our Earth list disposal resources in your area.

Ebay Resellers 

The Sellery

Electronics (that recycle)

Altex Computers 

Best Buy  

Big Green Box

CD Recycling Center 

Office Depot   

Verizon Wireless  

Giveaway / For Sale 

Freecycle 

Craigslist

Recycling 

City of Austin  

Ecology Action

Extra Trash

Dial 311 - $20 for extra pick up of up to 50 bags (max 40 pounds each) or $17 per month for an extra can       

In an unusual move, the Fed yesterday raised rates between official meetings.  The discount rate was raised to 0.75% from 0.5%, in what appears to be an effort to return lending facilities to more normalized levels. This move was anticipated to be discussed at the next meeting for possible future action, but with the inflation report coming in twice what was expected this morning, apparently they  felt the need to act.

The Fed indicated the move, along with other recent modifications to its credit programs, does not signal a change in its outlook for the economy or for monetary policy, and the more important fed funds rate remains in its range of 0% to 0.25%.  The Fed usually changes the discount rate at the same time it does the fed funds rate, but after the unprecedented steps taken to combat the financial crisis, the Fed appears eager to start bringing rates back to more traditional levels, and Thursday’s move was a start.

What does this mean for interest rates?  Right now the mortgage market is still off negative on yesterday’s inflation news.  Action by the Fed historically calms fixed rate investors nerves about inflation eating up the value of their mortgage investment. 

We often get quizzed about when should I sell and is it a good time to sell now? Generally the answer is less about real estate and more about personal motivation. In other words, why do you want to sell?  Is it; to downsize? upsize? Financial pressure? job related? commute?......There are many factors and most truly aren’t real estate questions.

If you do consider that selling your property is the right move, then your next question is likely, “In this challenging market, is it a good time to sell?” Here are the four factors we believe make now actually a strong time to sell.


1. Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.

2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region or give us a call.

3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

4. Good help is available. Some really talented remodelers, contractors, landscapers and designers are slower than normal and are available and eager for new client.

5. You have super stars on your side. We are ready willing and able to work for you and put your interest first and foremost

Smaller homes, lower prices. That's the outlook for new home builders this year. In a recent poll by (NAHB) National Association of Home Builders 95 percent of those polled say they consider one or the other or both as their top buyer priorities.

At the recent 2010 NAHB International Builders' Show builders were given a list of 40 features and asked which ones they were likely to include in new homes this year. Here's what's hot and what's not.

Items most likely to be found in new homes for 2010:

1. Walk-in closet in master bedroom
2. Separate laundry room
3. Insulated front door
4. Great room
5. Low-E windows
6. Linen closet
7. Programmable thermostat
8. Energy-efficient appliances and lighting
9. Separate shower and tub in master bedroom
10. Nine-foot ceilings on first floor

The least likely items homebuyers will find in new homes this year include:

1. Outdoor kitchen
2. Outdoor fireplace
3. Sun room
4. Butler's pantry
5. Media room
6. Desk in kitchen
7. Two-story foyer
8. Eight-foot ceiling on first floor
9. Multiple shower heads in master bath
10. Smaller kitchen area than in recent years

We have notice that buyers are focusing their wants heavily on energy-saving. Things we thought were consumer necessities — such as granite countertops in the kitchen or home offices — are no longer on the list.

Also not as popular in 2009 were energy-guzzlers like the high-ceiling entryways. Builders are leaning more in 2010 to nine-foot ceilings hoping to give the buyer a feeling of more square footage, which has been reduced.

Buyers continue to look for products that save money. Did you know, water-saving toilets use an average of 39,000 fewer gallons of water annually for a family of four. That's enough for a lifetime of drinking water for three people according to Kohler a leading manufacturer of faucets and fixtures.

NAHB conducted a consumer survey to compare the wants of older buyers with others. They found that those age 55 and older have a slightly different "want" list in a new home:

1. Washer-dryer in the unit
2. Storage space
3. Windows that open easily
4. Garage door opener
5. Easy-to-use thermostat
6. Master bedroom on first floor
7. Private patio
8. Porch
9. Attached garage
10. Bigger bathrooms

Of course we all have hang-ups. But when going through the emotional ordeal of putting their home on the market, we have observed that sellers can develop sale-affecting hang-ups that can affect their ability to maximize their return. Below are seven common ones and their symptoms.

1. Price-aphobia:
The fear that a property will sell for less than a premium price. Price and greed combine to form a drug like addiction to unrealistic expectations. Only buyers determine true market value.  When selling sellers should use all resources and analysis to make the best attempt to list at a price that will receive the most favorable attention by buyers and then review and adjust their pricing every few weeks with the goal for reaching the buyer sweet spot for maximum seller return on investment in the shortest period of time.  For sellers often times the enemy of good…is better.

2. Shag-itis
Sellers must understand that certain home decorating trends are not coming back  Despite that they love that sea shell wallpaper in the master bath or that shag carpet in the game room has been barely walked on. These areas need to be evaluated and redone.

3. Pet Addictions:
Not everyone loves seller’s pets as much as they do. No matter how adorable “Precious” is, pets almost always have a negative affect on showings and value.  This can equate often to 3-5% of value.  Often times “Precious” becomes a $10-$15K+ kitten.

4. Photo-mania:
Dozens of family photos can distract a buyer’s attention from the property. While it is nice to show how “homey” a house can be, the buyer needs to imagine their life in this house, not the sellers. Sellers need to understand they are not “selling a home”, but now marketing a commodity to the broadest range of buyers.  Oftentimes buyers curiosity is draw to a small family photo with comments like, “Look how cute those little kids are!” While missing the Brazilian hardwoods and canyon views.

5. Pack Rat Plague
The Little Angel doll collections and shrine to World War II paraphernalia need to be packed away. While they may be sentimental to the seller, they are yet another distraction to the buyer. In addition, buyer and buyers children will often pick-up, handle and damage items.

6. “As-Is” ism
The seller thought process of “The Buyer can take it or leave it” in regards to stained carpet, defects or repairs is flawed.  90% of the times that is exactly what buyers do….”leave it”. Buyers often construe the smallest defects as heralds of huge problems, i.e. a broken door bell is a sign of giant electrical problems or worse a reflection on the sellers poor ongoing maintenance of the home.

7. Audio Selectivism:
Sometimes, the Seller just hears what they want to hear. “The buyer must be confused.” “The appraiser was in a bad mood, or he just didn’t like us.” “My neighbor said I wasn’t asking enough.” The most important data the seller has at their dispose is comparative market analysis of recently sold similar homes from a competent real estate professional.

With the arrival of a new year also came new ways to compare home loans.

On January 1, 2010 new rules went into effect, which mandate that all home loan applicants be given a new version of the Department of Housing and Urban Development’s “Good Faith Estimate” (GFE) form.

The new form is HUD's latest development in the Real Estate Settlement Procedures Act, RESPA, (12 U.S.C. 2601) which, regulates real estate transfers involving a "federally related mortgage loan" by requiring, among other things, certain disclosures to borrowers and is designed to clarify what home loans will actually cost, which should make it easier for borrowers to compare home loans. All lenders must disclose their fees and put them in the same places on the form.

In addition to interest rates, there are other costs associated with loans that should be compared. These are what are typically known as “origination costs,” which are the fees a lender charges, and there are “settlement fees” – such as appraisal fees, title insurance, etc. – that are part of the costs.

The new regulations require that lenders disclose these fees uniformly and then stick to them. For example, if you are quoted a $450 appraisal fee on a Good Faith Estimate form, you cannot be charged more than 10 percent of the price quoted.

According to HUD "The intent of the standardized GFE and HUD-1 is to provide borrowers an easier means of comparing loan offers, and to determine that they are getting the loan at settlement that they were offered in the GFE." Thus making it easier for consumers to do an apples-to-apples comparison of different loan products.

On the third page of the three-page form, there is a place to do a side-by-side comparison of up to four different loans and recognize what is the best deal. Sometimes, borrowers get so caught up in what the interest rate or monthly payment is that they lose track of other costs associated with a loan, and it becomes more expensive than they thought.

Proponents claim HUD’s new efforts will improve transparency and uniformity and in turn assist consumers with finding the best loan deal more easily.

Critics claim the new HUD mandated GFE makes it easier to hide the yield spread compensation because it actually misrepresents the yield spread as a credit back to the borrower. At the very least the new HUD GFE takes focus off of complete transparency - and does not squarely break numbers down for borrowers. The lack of line-items leaves mortgage brokers holding the bag when it comes to explaining fees without being able to direct them to the specific line item.

The view from this desk is that consumers should know upfront in plain simple language exactly how much fees are for originating loans. The new muddled GFE often provides the consumer with only one lump sum amount which is the summation of different fees going to different people.

I believe brokers should be compelled to provide an additional form with a simple line by line breakdown of all their costs on one easy to understand page.

In the late 80’s and early 90’s in Austin, job growth stopped, real estate values dropped and people left town. Probably because of the severity of that recession, Austin has faired much better this time. Home prices did not increase more than could be supported by median family incomes. Thanks to Texas’s home equity laws, consumers could not borrow against their home appreciation nearly as easily as homeowners in other states – which helped keep home prices stable and consumer debt manageable. If you don’t have a bubble then you don’t have a bust. While most other major real estate markets have seen home prices drop by as much as 50% and experienced high unemployment, Austin’s median home price has been stable or seen only a small drop. Job losses have been slight. 

Now, Forbes and Moody’s Economy.com projects Austin's economy will grow by 32% over the five year period from 2007 to 2012. Not only is Austin’s economy growing, but it's growth rate is nearly 50% higher than #2 ranked Fort Myers, Florida. Equally important to Austin’s economic growth is Austin's population growth which is expected to grow by an amazing 15%.

 “To compile our list, we looked at all of the country's 363 metropolitan areas, defined by the U.S. Census Bureau as a geographic region with a "core urban area" of at least 50,000 people. Because many small metro areas are high growth--and because we wanted to show growth in large cities as well--we split the group into two classes: the largest 100 metro areas (with at least 528,000 people) and everyone else. We use projections run for us by Moody's Economy.com to show growth in GMP between 2007-2012.

Of course, if one looks at economic growth in the country's largest 100 metros, the usual suspects jump to the top of the list. With an estimated 32% GMP growth from 2007-2012, Austin, Texas, is the winner for big metros. Atlanta, Seattle, Orlando, Houston and San Jose, Calif., also appear high on the list. What do they all have in common? They're tech hubs with proximity to universities and a healthy increase in population. Austin's population, for example, is expected to increase by nearly 15% by 2012, according to Moody's Economy.com forecasts.”

Go Austin. Go.

Full Article: http://www.forbes.com/2008/01/30/economy-cities-alabama-biz-cx_bw_0130econcities.html