AustinHomeAgent Blog

Latest Stats From the Austin MLS 3/2/09

2009-03-04T09:39:00.002-06:00

Current Information:
Units for Sale:
Feb. 24 - Feb. 28, 2009
(compared to the same week in 2008)

New listings down this week 12.50%
Pendings are down 24.32%
Solds down 26.32%

As for Average Prices:
Feb. 24 - Feb. 28, 2009

Sold average sales prices increased 7.79% to $252,043.
In 2008 it was $233,826 for the same week.

February 2009
Units for Sale: (compared to February 2008)

New listings were down 22.35%.
Pendings were down 22.14%.
Solds decreased by 28.64%.

As for Average Prices:

The "New Listings" average list price is up 4.30% to 328,804. In February 2008 the average list price was $315,238. Sold average sales prices increased 5.16% to $245,430. For February 2008 it was $233,390.

For detailed statistics on specific MLS areas, please contact me!
Based on information from the Austin Board of Realtors.

Lisa Meier is a Texas licensed Realtor.
All information is deemed reliable, but should be independently verified.

National Mortgage Rates for Week of 3/2/2009

2009-03-04T09:30:00.002-06:00

Mortgage rates remain stable at 5.28%

Tuesday, March 3, 2009

National mortgage rates on 30-year fixed mortgages remained stable at 5.28% on March 3, 2009, according to Zillow Mortgage Marketplace. As a comparison, state rates ranged from a low of 5.11% (OH) to a high of 5.63% (RI).

Compared to the week prior to March 3, 2009, the national 30-year mortgage rate is up 4 basis points from 5.24%. Compared to three months ago, the 30-year rate is down 11 basis points from its average rate of 5.39%. Source: Zillow.com

Working with a trusted mortgage professional is essential, particularly in today's economic climate.

Please contact me for information and suggestions on choosing the right lender for you.

Lisa Meier is a Texas licensed Realtor.
All information is deemed reliable, but should be independently verified.

National Mortgage Rates for Week of 2/23/2009

2009-02-26T10:55:00.004-06:00

Mortgage rates go up to 5.19%
Wednesday, February 25, 2009

National mortgage rates on 30-year fixed mortgages climbed 1 basis point from 5.18% to 5.19% on February 25, 2009, according to Zillow Mortgage Marketplace. As a comparison, state rates ranged from a low of 4.50% (ME) to a high of 5.41% (NE).

Compared to the week prior to February 25, 2009, the national 30-year mortgage rate remained stable at 5.19%. Compared to three months ago, the 30-year rate is down 44 basis points from its average rate of 5.63%. Source: Zillow.com

Working with a trusted mortgage professional is essential, particularly in today's economic climate.

Please contact me for information and suggestions on choosing the right lender for you.

Lisa Meier is a Texas licensed Realtor.
All information is deemed reliable, but should be independently verified.

Latest Stats From the Austin MLS 2/23/09

2009-02-26T10:11:00.008-06:00

Units for Sale:
Feb. 15 - Feb. 23, 2009
(compared to the same week in 2008)
New listings down this week 19.32%
Pendings were down 30.61% last week, while this week they are down 19.63%
Solds down 27%

As for Average Prices:
Feb. 15 - Feb. 23, 2009
Sold average sales prices increased 1.54% to $233,012.
In 2008 it was $229,484 for the same week.

January 2009
Units for Sale:
(compared to January 2008)
New listings were down 14.01%.
Pendings were up 8.08%.
Solds decreased by 43.24%.

As for Average Prices:
The "New Listings" average list price is up 1.86% to 320,225.
In January 2008 the average list price was $314,382.
Sold average sales prices decreased 9.29% to $222,775. For January 2008 it was $245,597.

For detailed statistics on specific MLS areas, please contact me!
Based on information from the Austin Board of Realtors.

Lisa Meier is a Texas licensed Realtor.
All information is deemed reliable, but should be independently verified.

Lowering your Homeowners Insurance Cost

2008-07-18T08:00:00.001-05:00

1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property you’re interested in buying. CLUE reports detail the property’s claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE report have been repaired.

2. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you don’t want to be told at closing that the insurer has denied your coverage.

3. Maintain good credit. Insurers often use credit-based insurance scores to determine premiums.

4. Buy your home owners and auto policies from the same company and you’ll usually qualify for savings. But make sure the discount really yields the lowest price.

5. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower. Avoid making claims under $1,000.

6. Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify for a discount on theft insurance. You also may be able to obtain discounts for having smoke detectors, a burglar alarm, or dead-bolt locks.

7. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may have deals on insurance coverage.

8. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

9. Investigate a government-backed insurance plan. In some high-risk areas, federal or state government may back plans to lower rates. Ask your agent.

10. Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.

What is an agency relationship?

2008-07-17T08:00:00.000-05:00

It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you:

Seller's representative (also known as a listing agent or seller's agent)

A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

Buyer's representative (also known as a buyer’s agent)

A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or through a commission split with the seller’s agent.

Subagent

A subagent owes the same fiduciary duties to the agent's customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

Disclosed dual agent

Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

Designated agent (also called appointed agent)

This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

Nonagency relationship (called, among other things, a transaction broker or facilitator)

Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

Understanding Capital Gains

2008-07-16T08:00:00.001-05:00

When you sell your home, will you need to pay capital gains? When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

You have lived in the home as your principal residence for two out of the last five years.
You have not sold or exchanged another home during the two years preceding the sale.
You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:

Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

What is the value of my home?

2008-07-15T08:00:00.001-05:00

You’ve heard of market value, appraised value and county tax appraised value. What’s the difference?

Market Value

Market value, in a nutshell, is what a reasonable buyer would pay for your home at a given time. Ultimately, market value will determine the selling value of your property. Many factors impact market value such as:

The Competition

· The number of similar properties for sale

· Their prices, financing terms, location and physical condition

Physical qualities of your property

· Location

· Age

· Size of house and lot

· Floor plan and architectural style

Market Conditions

· Interest rates and availability of financing

· Buyer demand

· Prices of recently sold properties

· State of the economy

· Seasonal demand

Appraised Value

Appraisals provide an objective opinion of value. Appraising property is not an exact science, so appraisals may differ. For buying and selling purposes, appraisals are usually based on market value — what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.

Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value. Appraised value doesn’t take into account special considerations, like the need to sell rapidly. Appraisals typically look at homes that have already sold, usually 3 to 6 months prior to the appraisal, but appraisals can look at sold properties as far back as 12 months. If market conditions are changing rapidly, whether improving or declining, the appraised value will not reflect the changes occurring.

Lenders usually require an appraisal to be completed. The appraised value must be at least equal to the sales price for the lender to approve the loan.

County Tax Appraised Value

Property taxes are local taxes. Local officials appraise and set the value of your property, set your tax rates and collect your taxes. Each county’s appraisal district determines the value of all taxable property within the county. Before the appraisals begin, the district compiles a list of taxable property.

To save time and money, the appraisal district uses mass appraisal to appraise large numbers of properties. In a mass appraisal, the district first collects detailed descriptions of each taxable property in the district. It then classifies properties according to a variety of factors, such as size, use and construction type. Using data from recent property sales, the district appraises the value of typical properties in each class, taking into account differences such as age or location, the district uses “typical” property values to appraise all the properties in each class.

The value of your home is an estimate of the price your home would sell for on January 1. The appraisal district compares your home to similar homes that have sold recently and determines your home’s value.

It’s important to remember that tax appraised values do not take into account the same factors a buyer or Real Estate agent would when comparing homes for finding an estimate of the market value.

How to improve the odds for an offer

2008-07-14T18:03:00.000-05:00

1. Price it right. Set a price at the lower end of your property’s realistic price range.

2. Prepare for visitors. Get your house market ready at least two weeks before you begin showing it.

3. Be flexible about showings. It’s often disruptive to have a house ready to show at the spur of the moment. But the more amenable you can be about letting people see your home, the sooner you’ll find a buyer.

4. Anticipate the offers. Decide in advance what price and terms you’ll find acceptable.

5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, you should be prepared to at least consider lowering your asking price.

Your Property Wish List

2008-07-11T08:00:00.002-05:00

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list to evaluate properties and keep your priorities top of mind.

Neighborhoods

What neighborhoods do you prefer?

Schools

What school systems do you want to be near?

Transportation

How close must the home be to these amenities:

Public transportation
Airport
Expressway / Toll Roads
Neighborhood shopping
Schools
Other

Home Style

What architectural style(s) of homes do you prefer?
Do you want to buy a home, condominium, or townhome?
Would you like a one-story or two-story home?
How many bedrooms must your new home have?
How many bathrooms must your new home have?

Home Condition

Do you prefer a new home or an existing home?
If you’re looking for an existing home, how old of a home would you consider?
How much repair or renovation would you be willing to do?
Do you have special needs that your home must meet?

7 Reasons to Own Your Home

2008-07-10T10:35:00.002-05:00

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at http://www.austinhomeagent.com/buyers-mainmenu-47.html

Preparing for Home Ownership

2008-07-09T18:31:00.008-05:00

Deciding to buy a home is a major life decision. Many people judge success by accomplishing this milestone. Not sure you ready to purchase a home? Keep reading.

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. Speaking with a mortgage lender is the first step. A lender will not only let you know how much you are approved for, but they will also provide an estimated "out the door" monthly costs that include taxes, insurance and monthly payment.

2. Develop your home wish list. Then, prioritize the features on your list. Focus on "nice to have" features and "need to have" features. If you are purchasing with another person, make
separate lists and then compare notes.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety. The saying "location, location, location" is completely true. Staying true to your priorities can be tough when a prime location drives up the cost. A Realtor with intimate knowledge of the area you are interested in can help. Also a Realtor can suggest areas you may not even realize.

4. Get financially ready. Do you have enough money saved to qualify for a mortgage and cover your down payment? A mortgage lender will let you know exactly what you will need (another good reason to include them in the process early on). They will provide a "Good Faith Estimate" that will factor in closing costs.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad
debts, and any late payments.

6. Get pre-approved. Organize all the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

7. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal. I recommend speaking with a financial adviser to get a plan for success lined out. Buying a home can be a great investment. A professional can get you up to speed on the best way to leverage yourself.

8. Find the right Realtor. Find an experienced Realtor familiar with the local area who can help guide you through the process. A tech savvy Realtor is a must! Technology offers today's home buyer so many advantages.

Avoiding Foreclosure - What Every Home Buyer Should Know

2008-07-08T22:20:00.005-05:00

No one buys a home hoping to get behind on payments and have the bank
foreclose on it. Here are a few tips to avoid this problem altogether, and
what to do if it does occur.

Don’t set yourself up for failure

There are two main ways to avoid foreclosure:

• Don’t put yourself in a situation where you won’t be able to afford
your mortgage. Know how much you can really afford before you start
shopping for a home and stick to that price range. Often, people
over-extend themselves financially when in reality they don’t and won’t
have the means to pay their mortgage payment. Just because the
mortgage lender approves you for a loan at a certain amount doesn’t
mean you can actually afford the payments on that loan.

• Understand your loan. Many people get into trouble because they don’t
understand their responsibilities regarding their home loan. There are
many types of loans where the payments for the first year or first few
years are much lower than the amount you will pay in the following years.
Talk with your lender about various loans and make sure you understand
how much your payment will be at the beginning as well as what your
payment might be in the future.

What to do if you think you’re heading toward foreclosure

Do not be embarrassed. Instead, contact your lender as soon as you are
aware that your payment will be late. Also, never ignore your lender’s
phone calls or letters. If you act uninterested in the fate of your home, your
lender will be less willing to work with you in remedying the problem.
If you don’t want to speak to your lender first, you can contact a
HUD-approved counseling agency that will work with you and your lender
to negotiate a repayment plan. You can call 800/569-4287 for the
counseling agency nearest you.

Another source, the National Foundation for Credit Counseling, can help
you locate a nonprofit agency that could help you reduce your monthly
payments by lowering interest rates or extending repayment periods. Stay
away from companies that promise you swift, effortless results by paying
them a large fee—this is usually evidence of a scam.

You can also speak with a licensed Texas REALTOR®. Your REALTOR® understands
the entire home buying process and can discuss options available to you.