Economic stability and real estate are closely related in Austin Texas.  Austin real estate was largely unaffected by the housing bubble that was seen popping all around the nation in recent years, and many people believe that this enabled Austin to ride out economic stress and continue to attract new business. 

Austin real estate is currently at healthy inventories, especially when compared to other parts of the US.  Other highlights of the Austin real estate market include that it has far fewer foreclosures than other parts of the country and home values have stayed more or less stable, as opposed to seeing the huge price drops seen elsewhere.

Real estate and jobs are very tightly linked and where real estate has suffered the most you will see a much tougher economy and significantly fewer jobs.  The National Association of Realtors (NAR) has long been shouting that an improvement in housing will be a catalyst for economic recovery.  If Austin real estate is an example than it is clear that a stable housing market and job creation clearly go hand in hand.

Click here to read “Housing market still a stabilizing force for Austin’s economy” from the Statesman.

Contact the Fine Austin Living Team today for up to date information about Austin Texas real estate as well as free access to the Austin Texas MLS and all properties currently for sale in the Austin area.

Anyone relocating to Austin Texas who depends on one home selling before buying a new home may want to consider looking into a bridge loan.  There is no doubt that loans are harder to acquire with today’s tough lending practices, however securing a loan is not impossible when it comes to Austin real estate. 

Anyone who has money for a down payment, steady employment and great credit has the opportunity to obtain a mortgage. Buying a home while selling another can be stressful but a bridge loan can help a home buyer get into Austin real estate process, which is where a bridge loan can come into play.

A bridge loan uses a current home as collateral for a loan for a new home.  Often people relocating to Austin for a job do so in a short time frame and don’t have time to sell a home before looking for a new home.  The bridge loan helps a home owner to buy Austin real estate before selling the existing home.  When the home sells the bridge loan is paid in full at the closing.  A bridge loan is a short term loan, spanning anywhere from 90 days to a year in length, has interest only payments and larger fees than a traditional loan. 

Contact us today to learn more about financing Austin real estate.  An experienced Austin REALTOR® can recommend a reputable lender and educate home buyers on the process of buying and selling Austin real estate.

Contact the Fine Austin Living Team today for up to date information about Austin Texas real estate as well as free access to the Austin Texas MLS and all properties currently for sale in the Austin area.

Anyone considering buying Austin real estate should be aware of the loan limits that are looming in the near future, now could be the ideal time to buy.  There has been a lot of media attention in the past couple of weeks on how the government is planning on reducing its involvement in the mortgage industry.  The first step in this direction will be the reduction of the maximum amount of loans available from Fannie, Freddie, and other federal loan programs.

How limits will change in Austin has not been reported yet, but the maximum FHA loan amount in Travis, Williamson, Hays, Caldwell and Bastrop Counties is projected to decline from $288,750 to $271,050, a decrease of $17,700.  Now is a great time to look into Austin real estate, with the current limits in place, as changes in the near future could push buyers into less expensive Austin homes.

It should be noted that loan limits are not the same across all markets, more expensive markets having higher limits. Loan limit changes for Austin real estate are clearly uncertain, as the new limits for loans for our area have not yet been revealed, but anyone applying for an FHA loan to buy Austin real estate could be looking at lower loan limits and, similarly, less of a home than they would be looking at today.  Contact us today to learn more about buying Austin real estate and current market conditions.

Click here to read “Sellers Brace for New Mortgage Caps”, from The Wall Street Journal.

Contact the Fine Austin Living Team today for up to date information about Austin Texas real estate as well as free access to the Austin Texas MLS and all properties currently for sale in the Austin area.

Tips to save you headaches and money

Follow these seven tips to make sure your contractor agreement works in your favor—not your builder’s.

Step 1: Hire a lawyer

Contractors use their own forms, which are drafted for their benefit, not yours. You’ll benefit from hiring an attorney to review your contractor agreement or draft one that’s you-friendly. Even though this may cost around $250 to $500, it can save thousands of dollars later if there’s a dispute.

Step 2: Take the home court advantage

Add a “choice of law” or “forum selection” provision, which says that disputes will be litigated on your turf. This provides protection against out-of-town contractors or suppliers—you don’t want to have to drag yourself across multiple state lines for a lawsuit.

Step 3: Create an incentive to finish

Define when the contactor will deliver on his promises, and when he’ll get his money. Within the contractor agreement, create a payment schedule in your favor by holding money back until the work is fully completed and you’ve verified the final payments to subcontractors.Maintain control by holding the purse strings.

Step 4: Reeling in a runaway contractor

The most common problem you’ll encounter is a general contractor who gets paid, but doesn’t pay his subcontractors and suppliers—possibly leaving you on the hook, according to Craig Robelen, a home builder in Boca Raton, Fla. Robelen advises protecting yourself upfront by requesting the names of all professionals your builder will work with.

Verify that your contractor has paid his subcontractors by requesting conditional partial lien releases during the construction term, and a final lien release at completion. (Have the general contractor collect them and present them to you.) These are essentially formal acknowledgments from subcontractors that they are being paid for work done.

Also, see if your contractor has a “payment bond” that guarantees subcontractors will be paid.

Step 5: Corral unauthorized costs

Your contract should state that any changes that will affect the price of construction should be in writing and countersigned by both you and your contractor. This protects you from unauthorized charges.

Step 6: Avoid kickbacks

Protect yourself from kickbacks—where contractors gets bonuses from their subs for referring business—by requesting that builders sign affidavits that they’re not getting any “fees” from subcontractors as a prerequisite for doing business with them. Keep costs well-defined by asking for a “bid summary,” which should show a minimum of three quotes in every cost category of your budget.

Step 7: Binding words

If you’d like to avoid going to court in case of a dispute, add a clause in the contractor agreement for binding arbitration. If there’s a problem, you and your contractor will plead your case in front of a non-biased arbitrator, whose decision will be final.

If your contractor balks on any contract point you feel strongly about, do some more research. Maybe what you’re asking isn’t typical for that kind of job. Talk with neighbors who have had similar work done and sound out other contractors regarding their policies on the disputed issue before you sign anything. This helps you determine what’s customary for your particular area.

Barbara Eisner Bayer has written about personal finance for the past 17 years. She recently completed a home renovation on time, on budget, with the aid of a cold compress on her forehead.

Before you put that sign in the yard

Here are eight things to think about when you’re deciding if you want to sell your home in the current market:

1. Together with you, our partner in the process of marketing your home, we begin by taking a critical look at your house. After all, houses sell “outside in” and if it doesn’t look its best we won’t get enough buyers through the front door.
2. And then we look inside.  Today’s buyers are picky and if you need to spruce things up, you need to do so before the first potential buyer walks through the front door. We can even assist with home “staging” services, which have become popular in recent years to help sellers optimize their homes for picky buyers.
3. We then look at all the potential “home inspection” issues, because when the house goes under contract, buyers want to know it’s in good condition and will most likely have their own inspector give it a thorough review.
4. We then take a careful look at the market, what’s for sale near you, what’s sold and closed so we can establish a range of value.  Pricing the home FOR SALE is one of the most important steps in the process.  Each of us will also need to understand the trends of the market and how long you can expect to keep your house on the market.
5. Once we do that, we will help you take a close look at what it will cost to sell your home so you can get a handle on your net proceeds. Know that anytime we receive an offer, we’ll repeat this process so you’ll know what to expect.
6. We can also need to help you with your purchase of your next home, or getting rid of your furniture and personal possessions if you are not buying more real estate.
7. The rest will be up to us.  We will lay out a thorough marketing plan, talk to you about the ways we leverage the internet, what to expect from showings and how to prepare for them, and what to expect from the “unexpected” during the sale process.
8. And finally, getting you to and through settlement.  We pride ourselves on our ability to get our clients completely through the process with a smile on their face.  At Fine Austin Living, we are with you all the way, and look forward to showing you The Fine Art of Austin Real Estate.

Things you should know before buying an Austin TX home

Planning to buy in 2011?  Preparation is the key to getting the best deal when shopping for a new home in Austin, TX.  Following are some tips to help get you started:

1.  Define Needs Versus Wants: Make a list of “needs” versus “wants” for your new home.  For example, if you have a large and growing family then four bedrooms might be a necessity, while a pool might be optional. If you have pets, a fenced yard could be a need, unless you wish to live in a more rural area then a fence could be a “want.”

2.  Select a Location: Come sit down with a member of our Team and we can give you a local map so you can ride around a bit and get a sense of the kind of neighborhood where you would like to own a home.  Knowing where your place of employment is located (particularly if you are relocating to the Austin area) is helpful, so you can estimate commute time. Pay attention to schools, neighborhood amenities, and your neighbors, so that you pick a location that will feel like “home.”

3.  Set a Budget: Most real estate purchases rely on financing, so it is critical for you to get “pre-qualified” with a mortgage lender. Spend a little time upfront and have a personal conversation with a lender and find out what you can afford. (If you need a name of a reputable professional, give us a call … we only deal with the most competent ones in the business.)

4.  Read, Set and Search: We know that today’s real estate searches begin on the internet.  So look around.  Call us if you need directions, or more information on a particular neighborhood or school.  We’re stocked with information … and even have access to information on all the best golf courses, restaurants, and entertainment venues if you’re interested!  Let us be your trusted advisor … after all this is one of the most important decisions you’ll make!

5.  Go Looking: As interesting and informative as the internet is, there’s really no substitute for getting out and visiting homes.  You’ll be surprised that some of the homes you thought were “just perfect” fail to live up to the hype, and others will look so much better.  House hunting is fun, and with one of us along with you we can help you narrow your focus on finding the perfect one for you.

After all that, and learning more about what kind of home you’re REALLY looking for, we’d like to show you a few that you might have missed.  when we’re thru, you’ll have a very clear idea of which one you’re most interested in purchasing, and then we’ll help you write up an offer and navigate the paperwork and negotiation process.

(to be continued….)

Contact The Fine Austin Living Team today for up-to-date information about Austin Texas real estate as well as free access to the Austin Texas MLS and all properties currently for sale in the Austin area.

2011 is looking good for Austin Texas

Check out the latest market trends and statistics for Austin, the State of Texas, and other markets around the USA!

http://fal.housingtrendsenewsletter.com/

There is more good news for Austin Texas.  Computer company Dell Inc. has announced that it will be hiring a large number of employees, 5,000 new sales positions in fact.  While not all of these new jobs will be in the Austin area, Austin will benefit from the added impact it should have on local operations.  At the moment Dell Inc. is a large employer in Austin, with roughly 16,000 employees from the Central Texas area.

Dell has also recently agreed to purchase a software company from California called Scalent Systems Inc., expanding its scope of services.  According to a recent article in the Austin Business Journal, Dell Inc. “posted a $1.43 billion profit on $52.9 billion in revenue for fiscal 2010.”  Dell’s success is always going to be good for Austin Texas.

Click here to read a recent article in the Austin Business Journal about Dell’s hiring of new employees.

Contact Todd Smith today for up to date information about Austin Texas real estate as well as free access to the Austin Texas MLS and all properties currently for sale in the Austin area.

There is a distinct possibility that Austin real estate will get a boost from the state of Texas.  The home buyer tax credit has expired, a program designed to spur real estate sales nationwide, and the state of Texas has stepped in to help keep real estate sales on the upswing.

The Texas Department of Housing and Community Affairs has created a new program, titled Bond 77, that is making $500 million available for mortgage help.   For those looking to buy Austin real estate the money can be used two ways, as down payment assistance or for acquiring a lower interest rate.

Historically low interest rates, low home values, and now the financial help available from the state of Texas, combine to make it an ideal time to look at homes for sale in Austin.

Click here to learn more about Bond 77.

Contact Todd Smith today for up to date information about Austin Texas real estate as well as free access to the Austin Texas MLS and all properties currently for sale in the Austin area.