The Cycle of a Neighborhood

In the mail, I received a great community news magazine, IMPACT that had an article about the life cycle of a neighborhood. It was so well outlined that I was in total agreement. Basically, it lists 4 stages a neighborhood goes through.

1. In the beginning, it's just the builder selling homes and the builder sets the prices and value. Sometimes you can negotiate.

2. Next, some homeowners have a need to sell; perhaps relocating for a job and they must compete with the new construction so their best opportunity is to lower the price and be competitive.

3. Then, some homeowners are not able to sell for enough to cover their mortgage and fees so they go into foreclosure.

4. Finally, the neighborhood will either stabilize or the values will continue to decline.

If you don't plan to stay in your home long (5 plus years) consider buying in an established neighborhood is that it's already gone through the cycles.

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FIREWORKS IN AUSTIN

As 4th of July approaches you may be thinking about fireworks but I'm thinking about the drought. My house backs to a greenbelt and my neighborhood is not in the city limits so previously there has not been a ban on fireworks in our area and people have fired them off in the greenbelt behind our house. Every year it's made us nervous but last year the neighborhood banned the use. Many people didn't get the notice. In a drought situation like we have in Austin now, it's an accident waiting to happen.

Please check area restrictions before you set off fireworks. Currently there are drought conditions in Travis, Hays, Williamson and Bastrop counties.

FIREWORKS SAFETY TIPS
1. Read all the instructions on the fireworks packaging materials
2. Make sure the area is clear of anything flammable
3. Have an extinquisher ready in case of emergency
4. Don't use fireworks if there's a wind because it can blow sparks on someones roof or to a tree
5. Carefully supervise children. It's fire!

AUSTIN AREA FIREWORKS SHOWS
July 3 8:30 PM at Avery Ranch Golf Club, 10500 Avery Ranch Drive
July 4 at 9 PM
Austin Country Club, 4408 Long Champ Drive
Lady Bird Lake at Auditorium Shores
West Lake Hills, 3311 Westlake Drive
Lakeview Pavilion at Settlers Park in Round Rock, 3369 E. Palm Valley Blvd.
San Marcos Plaza in San Marcos, 202 N. C.M. Allen Parkway
July 5 9 PM at Grey Rock Golf Course, 11511 RM 1826

HAVE A SAFE 4TH OF JULY!

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AUSTIN AREA MARKET STATISTICS - from April

Compared to April of 2007, there is more inventory but homes are still selling.
1981 homes sold in April as compared to 2,295 April 2007. 10,034 active listings as compared to 8,354 April 2007 with 66 average days on market.

WHAT'S A HOME WORTH?

Not $65,000 below market value.

Do you think he was kidding? When I first started this blog I wondered how I could come up with something new to write every day but opportunity usually presents it's self.
Today I got an email asking if my seller would sell for $65,000 less than the asking price.

When a REALTOR prices a home, she does it by analyzing comparative sold properties. Now in Texas, sold information is not public information so the consumer is not privy to it but if a property is listed in the MLS system, the seller must agree to allow the sold information be posted for REALTORS to use in determining market value. The REALTOR doesn't set the value, the market does. So most homes are priced within a reasonable market range.

Everything is negotiable but if you were the seller you'd want to get the most for your property, right? Well, so does everyone else. Exceptions would be if the seller were in financial difficulty but even then they are limited. A seller usually can't sell their home for less than they owe on the mortgage unless they are in arrears on payments and the bank has agreed to do it or they determine that it will cost less in the long run than a double mortgage and they have the financial ability to eat the difference (this is not most people.)

If you're interested in low-balling a seller, consult your REALTOR as to the best way to present an offer that will be within realism and aide negotiations rather than waste everyones time.

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10 Questions to Ask When Picking a REALTOR®

10 QUESTIONS TO ASK WHEN CHOOSING YOUR REALTOR•

Make sure you choose a REALTOR® who will provide top-notch service and meet your unique needs.

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.

2. What designations do you hold? Designations such as ABR and CRS®, which require that agents take additional, specialized real estate training, are held only by about 14% of real estate agents.

3. How many days did it take you to sell the average home? How did that compare to the overall market? The REALTOR® should be able to present market statistics from the local MLS.

4. How close to the initial asking prices of the homes you sold were the final sale prices? This shows how skilled the REALTOR® is at pricing homes and marketing to buyers.

5. What types of specific marketing systems and approaches will you use to sell my home? Look for someone who knows how to market your property competitively on the Internet.

6. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? Your REALTOR® should explain her agency relationship.

7. Can you recommend service providers who can help me obtain a mortgage, make home repairs and help with other things.

8. What’s your business philosophy? There’s no right answer but the response will help you assess what’s important to the agent and determine how closely it works with your own.

9. How will you keep me informed about the progress of my transaction? How frequently? This is not a question with a correct answer you should make sure your your needs are met.

10. Could you please give me the names and phone numbers of your three most recent clients? Ask recent clients if they would work with this REALTOR® again.

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WILL WORK FOR FOOD

For years there have been people standing at busy intersections in Austin with signs that read "Will work for food." Things have changed and now they say things like "Please help." They have no intention of working. They just want a donation.

I've heard a lot of arguments about why it's not a good idea to give these people money. And I've debated the matter with myself for years. One time I saw a man who appeared to be in his 80's with a sign that read " WWII veteran. Please help" and when the light turned green, I drove away.

When I drive past these people, I always feel guilty. You can tell I still feel guilty about the WWII veteran. I'm fortunate enough not to find myself in similar circumstances and I'm grateful I have had better opportunities in life and perhaps made better choices.

I decided that I don't care if they really need the money or not. I don't care if they may spend it on drugs or alcohol. I'm just not going to pass judgment on them any longer and drive away feeling bad the rest of the day.

Now I keep a few $1 bills in my car and anytime I stop at a light and someone is there with a sign asking for help, I roll down my window and hand them $1. It probably costs me less than $10 a month and I feel like I'm helping someone.

My daughter told me that sometimes she keeps bottles of water in her car to hand out.

Next time you see someone holding a sign, just think about.

DONATE RICE AND INCREASE YOUR VOCABULARY

http://www.freerice.com

Here's something to do when you're bored that will both make you smarter and help end world hunger. You'll feel better than if you just play tetris. It's a vocabulary game with the result ending in a donation of rice to areas in need.

A SUCCESSFUL CLOSING - 5 THINGS BUYERS SHOULD KNOW

Today I had another successful closing. Yahoo! My buyers bought new construction and I'm so happy for them to be able to move into their new home. The closing was painless but there are always some things I want my buyers to know about home ownership and I usually cover it at closing.

1. Rents are paid in advance but mortgages are paid in arrears. That means that it feels like you skip a payment because if you close mid June, your first payment will not be due until August 1.

2. In Texas we have homestead exemptions. They may be filed the January after you have lived in your home and will reduce your property taxes by about 12 percent. I always send the forms to my buyers in January but you may find one on the county appraisal Web site. It's easy to fill out and mail in. Don't pay anyone to do it for you.

3. If your neighborhood has community mailboxes, take your settlement statement to the post office and they will assign a box to you and rekey it so no previous owner will have access.

4. If you are buying a resale, be sure to have all the locks rekeyed. Who knows who may have a copy of the key. There are many companies who can do this for you and a nominal cost.

5. For new construction, the tax appraisal in the first year is probably based on unapproved property so expect the taxes to go up the following year when they are appraised to include the home. Plan for it by saving every month so you won't be caught short the following year.

If you have any further questions you may contact me at 512-589-7988 or robinscottrealtor@gmail.com

THEY'VE GOT TO UNDERSTAND

"They've got to understand" is something I often hear from a buyer or seller during negotiations. From sellers I hear "They've got to understand that our house can't be kept tidy because we live here," or "They've got to understand we can't leave for the showing because . . ." and from buyers "They've got to understand that we need this to be a profitable investment for us," or "They've got to understand we can't leave our lease any sooner."

Well, I'm here to tell you that the other party does not understand and does not "have to understand." That is a negotiating perspective that makes the other party angry because they don't have to sell to you or buy from you. It's your responsibility to make it work for you not the other persons or the other person's REALTOR.

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THE COLOR GREEN

A well landscaped home is something that brings you enjoyment while you live there and improves your curb appeal when it's time to sell. But what to plant and how to care for it is often a puzzle. Did you know that in Austin, the city office Texas Cooperative Extension publishes many free brochures and flyers on everything from garden pests to indigenous plants? It's a very friendly office and they love for you to visit or you can go to the Web site at http://www.growgreen.org and find out about grass, trees and flowers and hwo to care for them.

I believe this is the bloom of a the Gulf Coast Penstemon. It's seen in a lot of landscaping around the Austin area growing 1 to 2 feet high is partly shady areas.

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BUYERS WITHOUT A REALTOR

Today some colleagues of mine and I were discussing buyers without REALTORS. What's up with that? I have one listing in particular that seems to attract them. If you're a buyer out there reading this, then I have some information to convey to you.

A buyer without a REALTOR may think they can do all the work themselves and have the cost of the the buyers agents commission converted to a reduction on the price of the home but it doesn't usually work out the way they imagine.

First of all, the seller has contracted with the sellers agent to pay a set commission regardless of whether there is another agent involved or not. If you are a buyer without an agent than the sellers agent is entitled to retain the full commission and deserves it because the work they will do to close that sale has now doubled without another agent carrying the load for the buyer. I've had buyers ask me if the seller will agree to credit them for the commission. What? They should be asking the agent because the seller has already (and in writing) agreed to pay the sellers agent the full commission. Now it's up to the sellers agent to decide if they will give up part of their commission for the buyer.

Secondly, the buyer usually can't find their way through the processes and procedures without asking questions and help of the sellers agent. Hey! The sellers agent doesn't represent you and is not obligated to help you in any way. Now the sellers agent is caught between a rock and a hard place because they don't have a knowledgeable agent on the buyers end to work with toward a successful conclusion.

Thirdly, the aid that a buyers agent provides showing properties should not be under valued. I have buyers calling to schedule showings on my listings and they expect me to make it convenient for them. Why? I don't represent them. If they want convenient showings then they need to hire an agent that can show them properties in their time frame. If it's my listing, I represent the seller!

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Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

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SELLERS BEWARE

It seems that since the market has shifted to a buyer's market there are a lot of buyers looking for a real deal and there is so much inventory they jump from showing to showing.

This is having an adverse effect on sellers because so many buyers are not committed to the offer they make. Recently, I've experienced listings go under contract as soon as they hit the market only to be terminated within the option period for no explainable reason. I'm surmising that the buyer found another property that was a better "deal."

Since in Texas, the buyer has the unrestriced right to terminate within the option period the buyer does not have to explain why he is pulling the plug. One listing I have is in a hot area and we had an offer the first day. The buyer number 1 terminated before he even had an inspection. No problem because buyer number 2 was waiting in line and shortly after they sent an amendment asking for repairs they terminated with no explaination so now we are on buyer number 3. With another lisitng I had a similar esperience receiving an offer the first day on the market and then a termination before there was an inspection. I even had a buyer I represented terminate an offer to chose another home.

So if you have a home to sell, hang tight. The first offer may not fly. The best advise I can give is to make your home very appealing by keeping it clean and attractive, make sure it's in good repair and price it competitively.

5 COMMON FIRST-TIME HOMEBUYER MISTAKES

1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the homebuying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Source: Real Estate Checklists and Systems.

Search for homes through Austin MLS
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Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

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HOUSE FOR SALE IN MILWOOD

7521 Windrush Drive is a 4 bedroom, 2.5 bath, 2 car garage with 2 living/dining areas. It backs to the greenbelt with a view of the hike and bike which runs to a great park with pool, tennis, basketball, soccer, playground and more. Inside there is tile throughout the downstairs, fresh interior paint, updated bathrooms and light fixtures, lots of windows and light and security system. Deck. RRISD. about 1950 sq.ft.Built in 1990. Asking $200,000.

BACK FROM FRANCE

I've just returned from a 2 week excursion through France and it was amazing. We often hear that the French don't like Americans but that is not true. Especially in the countryside the people of France remember very well the contribution the United States made in liberating them during WWII and still have great appreciation.