New Wilshire Luxury Home in Austin

With stunning natural beauty, a vibrant cultural scene stoked by a University and the famous SXSW music festival, and unemployment figures that beat national averages, Austin, Texas has been a population mecca for years now, and, for good reason, is one of the five fastest-growing metropolitan areas in the United States. Yet even with such dynamic growth, Austin’s real estate market remains affordable relative to cities with similar economic, social and cultural profiles (such as San Francisco), meaning that buyers looking for new homes in Austin, Texas have plenty of options to suit every need or desire.

Urban Housing in Austin

Homebuyers looking to stay close to the heart of the action in downtown Austin need look no further than Mueller, a new mixed-use urban village ideally situated near both downtown and UT-Austin. Located on nearly 700-acres left empty by the removal of Austin’s old airport, the property is being redeveloped to include retail, commercial and residential buildings, planned and constructed in a sustainable way. The village will be connected to public transportation, and will eventually house nearly 5,000 single- and multi-family homes, ranging in price from $100K to over $1 million. Options will include condos as well as single-family homes, all of which are designed with function, flexibility and the unique nature of urban living in mind.

The Austin Burbs

Those looking to spread out a little and enjoy the Austin suburbs will also find plenty to choose from. Nearly all of the largest national (and many regional) builders are busy putting their best work forward for Austin’s exacting new home shoppers. Prices in these communities range from the low 100s to the upper 500s, and offer space and convenience, with floor plans from 2,000 to 5,000 square feet, and 3+ bedrooms. Looking for an upscale, gated community within 15 miles of the city? KB Homes has it. Want a 1+ acre homesite a little further out? Mercedes Homes is happy to comply.

Green Homes in Austin

Finally, Austin, Texas is also known for its environmentally-conscious ethos, to which homebuilders pay homage through their various green building programs. Energy- and resource-efficient homes with thoughtful selections of lighting, HVAC, insulation and water-saving upgrades, as well as precautions for indoor quality, are widely available from a number of large homebuilders, as well as from some active niche builders, such as Austin’s Green Builders, Inc. The connection between green building and affordability is getting made in Austin, thanks to decades of cultural and environmental activism on the part of the city’s residents, and their unique blend of cosmopolitan sophistication and grassroots activism.

Long and short of it? In many ways, Austin is a  new home buyer’s paradise, and the endless options offered by Austin home builders are enough to make anyone consider making this one-of-a-kind city home.

See Also:

Austin unemployment data

image credit: Wilshire Homes – Stonewall II in Austin, Texas

It can be a nightmare. The ink isn’t even dry yet on your new mortgage and the air conditioner or dishwasher suddenly dies. The house sellers ride off into the sunset, happy they escaped in the nick of time. If you purchased or negotiated in a home warranty, however, you might not be out of luck – at least for the full amount.

It’s obvious in this tight housing market that many sellers are going the extra mile to attract buyers. One strong technique is to offer a home warranty. These warranties are relatively inexpensive and can cost anywhere from $200-$500. It’s purpose form the sellers perspective is to to give buyers peace of mind that if there are any major issues in the home, it will be taken care of at minimal cost.

Most home warranties will cover all major systems and appliances in case they break during the first year and you usually need to pay a service fee. Sometimes a claim however will be denied if the equipment was installed incorrectly originally or in such a way that violated code.

Additionally, home warranties usually exclude outdoor items such as sprinklers, faucet repairs, spas or pools unless additional rider is added, or permit fees. Plans vary as to whether or not garage door openers, refrigerators and washers and dryers are covered. You usually have the option to renew your home warranty at the end of the first year. It’s imortant to remember that warranties are local and the real estate warranty in Indianapolis will differ from that in Austin. Different climates, use of HVAC systems, and house specifications, all come into play.

Coverages do vary from company to company and policy to policy, so your best bet is to review the specific plan with your real estate agent so you understand what protection is offered before you place an offer.

Mark Matyanowski is the broker & owner of ICON Realty Partners, LLC, a boutique real estate brokerage in Indianapolis, IN. Mark specializes in northside Indianapolis real estate, including Carmel and Fishers.

In today’s real estate market, there are many potential buyers who are waiting for prices to hit rock bottom before making their purchases. There are many experts who feel that the market is in rebound mode, while there are others who suggest we are heading into a double dip. However, one thing most industry experts agree is on is that today’s historically low interest rates are bound to increase in the foreseeable future. So how will that impact potential buyers? Rather than talk in abstract economic principles, it would be easier to illustrate the point by providing an example:

Scenario 1 – Joe buys home in Austin for $249K (average price). He finances with a 30 year mortgage at 4.5% interest rate and puts 10% down. His monthly payment is $1,135.

Scenario 2 – Joe waits a year, during which time Austin average prices go down by 10% (not a likely probability), but interest rates increase by 1% (which is completely within the realm of possibility). So he buys a home for $224K, again financing with a 30 year mortgage at 5.5% interest rate and putting 10% down. His monthly payment will be $1,145.

Scenario 3 – Joe waits a year, Austin prices remain the same, but interest rates increase by 1%. He wants to purchase a property for $249K, financing via a 30 year mortgage at 5.5% interest rate and 10% down. His monthly payment would now be $1,272.

It is highly advisable for qualified buyers to look at the total cost of purchase (including financing), rather than fixating on the final sales price and waiting for market prices to further decrease (for which there is no certainty). There are many factors that will influence the direction of the real estate market, but what is certain is that now is a great time to buy.

About the Author: Alex Cortez is a real estate agent in Hawaii, specializing in Maui condos for sale. Should you wish further information about the Maui real estate market or to preview foreclosures and short sales in Maui, visit his site.

Are you trying to determine the value of your home? If you are planning to put your home on the market sometime soon, determining its actual value is the first and most important step in the process. After all, you need to know the value of the home in order to determine a fair asking price. At the same time, you want to get as much for your home as possible. So, how do you go about determining the right asking price for your home?

Pricing Too High…..Big Mistake

Unfortunately, many sellers make the mistake of asking a price that is more than the fair market value. For these sellers, the belief is that asking a higher price will allow them to sell the home for its actual value. According to this logic, asking for more than the fair market value gives the buyer more room for negotiation. While this may seem logical, the reality is that overpricing a home can cause it to sit on the market for too long. Many propects will not even take the time to look at the home because of the perception that the seller’s may be unrealistic. As a result, the seller may ultimately end up selling the home at a price that is well below the actual market value.

Time on the Market

It is a well-known fact within the real estate industry that a home loses value the longer it sits on the market. Furthermore, the longer a home sits on the market, the greater the probability it will not sell. In fact, a simple formula is used to calculate what is known as the “absorption rate,” which is the probability of the home not selling. To determine the absorption rate of your property, simply divide the number one by the number of months of housing inventory on the market. If there are 12 months of housing inventory in your market, for example, the probability of it selling in any given month will be 8.3%. This means the probability of it not selling is a whopping 91.7%. With odds such as these, you certainly don’t want anything to stand between you and getting your home sold – and that is just what will happen if you ask for more than the home is actually worth when you put it on the market.

Time is Money

Of course, the longer your home stays on the market, the more it is costing you. After all, while your home sits on the market, you still have to pay the mortgage, utilities, insurance and other costs associated with maintaining the home. By holding out for an unreasonably high price, you increase your expenses by keeping the house on the market for longer than necessary. Furthermore, even if you do find someone who is willing to pay what you are asking for your house, the buyer will be very unlikely to find a lender who will provide the buyer with a loan. Remember, this is an investment for the lender and paying more than the actual market value simply is not a good investment.

Correctly Pricing Your Home

So, how do you go about determining a realistic price for your home? Getting an appraisal is a good first step, but you and your Realtor can use a number of other methods to determine the best asking price possible. For example, your Realtor can do a Comparative Market Analysis (CMA) to compare the prices of comparable homes in your area on a price per square foot basis. Or, you can use online resources such as Zillow.com, which allows you to learn more about competitive pricing as you determine the price to ask for your home. Although Zillow’s Zestimates are sometimes a useful tool, appraisals and CMA’s are much more reliable and accurate.

If you are considering listing your home in this challenging real estate market, proper and realistic pricing is a must. Work with your Realtor to establish a competitive asking price so that you can get your home SOLD.

About the Author: John C. Allen is the broker and owner of Allen Real Estate Services, a 30 year real estate firm in Sarasota, FL. He specializes in representing buyers and sellers of Sarasota luxury homes for sale, including condominiums, exclusive golf communities and waterfront houses. Stop by his award-wining website to lean more about the Sarasota, Florida area. In addition there is free access to thousands of MLS listings and detailed information on hundreds of neighborhoods and condo communities. From vacation properties on the barrier islands to downtown Sarasota real estate, John’s team of Internet specialists can help you explore all of the options currently available.

Homebuyers seeking to take advantage of the First Time Homebuyer credit must enter into a binding contract to purchase a principle residence by April 30, 2010 and must close on the property by June 30, 2010, according the IRS.gov website. Buyers may elect to use the credit on their 2009 or 2010 tax returns.

The IRS.gov website has some great information to brush-up on filing requirements and to help with submitting the required application. Below are several useful links:

• First Time Homebuyer Credit Page
• Common Questions and Answers

Home buyers who purchased a home as their principal residence in 2008, 2009 and early 2010 may be able to take advantage of the credit. The credit is 10 percent of the purchase price of the home with a maximum credit of $8,000. The credit will either reduce the buyer’s tax bill dollar for dollar or increase the refund. The credit does not have to be paid back unless the home ceases to be the buyer’s principal residence with three years after the purchase.

Long-Term Residents

In addition to the First Time Homebuyer Credit, long-term residents of the same house may qualify for a $6,500 credit when purchasing a new principal residence in the United States. The purchase must take place after November 6, 2009, and before May 1, 2010 or after April 30, 2010, and before July 1, 2010, and the buyer must have entered into a binding contract before May 1, 2010, to purchase the property before July 1, 2010. To qualify, buyers must have lived in the same home for any five consecutive-year period during the 8-year period ending on the date you purchased your new main home.

Who Cannot Claim the Credits

According to the IRS.gov website, you cannot claim the credit if the purchase price of the home is more than $800,000. This rule applies to homes purchased after November 6, 2009. Also, you cannot claim the credit if your modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly) and you purchased your home before November 7, 2009, or $145,000 or more ($245,000 or more if married filing jointly) and you purchased your home after November 6, 2009.

How to Apply for the Credit

Buyers seeking the credit must fill out the IRS Form 5045 and file with your federal income tax return. If you have already filed your return, you may claim the credit by filing out an IRS 1040X with the completed Form 5045 attached. All supporting documentation is required.

All information provided above on the First-Time Homebuyer credit was pulled directly from the IRS.gov website. It is deemed reliable, but it is not guaranteed. Please refer directly to the IRS.gov website or your accountant to verify any information important to you.

John Allen is the broker and owner of Allen Real Estate Services, Inc., a 30-year boutique Sarasota real estate firm. He specializes in luxury Sarasota FL homes for sale, condominiums, gated neighborhoods and golfing communities. John’s team of outstanding buyer’s agents can help you with all of your Sarasota Florida real estate needs.

I started a new meetup group for “Real Estate Geeks” in Austin.  If you’re in the Austin area & are passionate about social media & connecting with clients online, this is the group for you!  Our first meetup will be at Apothecary on January 14th at 6pm.

Here’s a link to the group:

http://www.meetup.com/austin-real-estate-geeks/

I look forward to seeing old friends & meeting new!

Third quarter numbers look very promising.  We obviously have to take into account the affect of the first time homebuyer tax credit, but it looks promising that it will be extended for 6 months, which will give our job market time to firm itself up a little before we ask the real estate market to stand on its own legs.

There were no considerable changes in the stats from 3rd Quarter 2008 to 2009.  Sold units were down 3.25%, median old price was down 2.12%, and average sold price was down 4.31%.  The discrepancy between median and average sold changes are the result of the higher end homes taking a larger hit.  The luxury market has seen larger declines than median & average priced homes.

Here are the 2008 numbers & the 2009 numbers.

So I’m WAY late posting these, and the numbers were fairly close to what I expected.  Median price is down by 4%, while average price is down by almost 5%.  Sold volume was down just over 10%, but inventory is being absorbed, as active listings are down by almost 8%.

ABOR just released the July 2008-2009 statistics.  It shows we’re leveling off in volume sold completely, but we’re down in median sales price by 1.8% and down in average sales price by 4.3%.

Austin’s real estate market seems to follow the general trend in the economy.  As stated before, we’re not correcting for a bubble (overall) so we shouldn’t see any drastic price movements (overall.)  The bulk of respected economists agree that the national economy is scraping across the bottom, and our real estate market seems to be doing so, as well.  It will be interesting to see the month over month change in the coming months, as Oct-Dec 2008 were pretty hideous (election and first stock market scare.)  From that point, it will be interesting to see how the market reacts if the first time home buyer credit isn’t extended or replaced from December on.

More signs that the market in Austin is stabilizing.  It looks like we’ll get out of the recession without depreciating much (overall.)  Within the next couple of days, I’m going to break down sold volume into price point – it should be really telling.

Here are links to the 2008 Q2 stats and the 2009 Q2 stats.  These numbers were run manually and are pulled from the residential section of the ACTRIS MLS.  Here’s the excel sheet, if you care to download it.

As you can see, the bleeding is slowing down.  We’re on course to depreciate (on average) by 3-5%.  However, median prices are holding fairly strong.  The closer you are to the $200k price range, the better the market is holding up.  In my opinion, this is due in large part to the first time home buyer tax credit, and historically low interest rates.  It’s a great time for first time home buyers to get into the market.  On the flipside, the luxury market (which I’ll post stats for) is hurting.  This causes the disparity between the average & median price changes.