Austin “Boomerang Buyers” Enter the Picture

“Time flies when you’re having a good time” we hear. But time can also pass quickly for those who’ve had to go through difficult times. Case in point is a million and a half borrowers who have recently experienced the pain of a foreclosure. That’s the estimated number of those who, by this time next year, will have waited long enough to again become eligible for an FHA loan.

Anyone interested in buying an Austin home after a foreclosure has come through a tough period. The standard waiting period for an FHA-guaranteed loan is 3-4 years following a foreclosure or short sale (though individual circumstances vary). Now that the weeks and months have ticked by, this sizable crop of newly eligible prospective ‘boomerang buyers’ may soon find themselves contemplating the option of buying a home after a foreclosure.

That estimate of the size of the newly eligible was provided by Moody’s Analytics. Since they are key players in determining creditworthiness, it’s a source I trust. A chart of Moody’s count from the second quarter in 2011 (when their number was a mere 285,000) to next year’s second quarter 1,500,000 provides a convincingly uphill slope.

Still, being eligible to apply does not mean automatically qualifying for an FHA (or any other) loan. Success in buying an Austin home after a foreclosure continues to depend on the same standards that always apply. After the waiting game is over, having cured credit damage will become the prime requirement.

To increase their chances of successfully buying a home after a foreclosure, Austin prospects will have paid existing credit card and loan debts with the kind of unfailing regularity that reassures loan officers and credit analysts alike. If that hasn’t been the case, the time to begin is ASAP.

Website Zillow predicts the next most influential group of buyers will be those who are looking to buy a home after a foreclosure or short sale. Austin residents who are among them — and who are ready to make this their turnaround season — should give me a call. We can get started with the pre-approval process!

Missed Mortgage Payments Can Attract Scam Proposals

When natural disaster strikes, you can be certain that two groups will soon be there: the Red Cross — and scam artists. Unfortunately, the same holds for turmoil of all kinds.

Austin homeowners who have missed mortgage payments should be aware that, in addition to getting their accounts back on track as soon as possible, they should be prepared to be targeted by unethical operators.

Missed mortgage payments can cause a Austin homeowner’s name to appear as ‘arrears’ on public tax records: it’s one way unscrupulous characters locate their victims. That can set off an onslaught of solicitations through the phone, mail, and possibly even at the front door! Normally level-headed householders can be misled by the prospect of a quick fix, especially since stress levels can be high. Knowing the telltale signs that a mortgage scam is in the offing can stop it before it gets far.

One indication is any ‘cure’ that requires a large up-front payment to the mediating agent. Likewise, any proposal that involves repayment to anyone other than the lender — no matter how convincing the reasons offered — is not likely to be authentic.

In one devious mortgage scam, the agency tries to convince you to sign over ownership of your property with the promise that you will be able to rent it back in a “lease-to-own” arrangement. That may sound convincing since some banks are experimenting with a similar option. But anyone other than the mortgage holder who proposes that you sign over the property deed or title to them is probably not working in your best interest. Likewise, an agency that seeks your power of attorney should raise another red flag — in this case, the agency could have the power to circumvent your wishes.

If you’ve missed mortgage payments in Austin, your first action should always be to talk to a reputable attorney and financial advisor to sort out your available options. If selling your home is one — either by conventional or short sale — it’s my job to help make accomplishing that easier. Don’t hesitate to contact me with your private real estate needs.

Austin Housing for Sale Benefits from Yards with ‘Destinations’

As an Austin homeowner prepares a property for sale, he or she faces the inevitable series of tradeoffs. One of the major ones is the decision about how much time and budget to devote to interior vs. exterior renewal. In cases where the inside is going to get the lion’s share of attention, it’s good to remember that there are ways you can make simple changes to your backyard that can markedly raise the whole property’s overall appeal. As with all Austin housing for sale, this can mean the difference between a so-so and a great outcome.

One inexpensive idea for larger yards is to install simple gravel or bark pathways. Austin housing for sale boasting gently curved pathways around the edges of the lawn look more interesting than plain yards — especially those with predictably straight-edged planted areas. Landscape architects think in terms of destination areas: even in smaller yards, a bit of imagination can sometimes create interesting ‘destinations’ for the eye!

Many yards have a corner or two that are just plain eyesores. A Western idea that works for any climate is a variation on the architectural rock garden. Choose rocks that blend well with our natural landscape, but which bring out the surrounding colors; then the addition of brighter flowering plants will convert that eyesore into a ‘destination’ — one with pleasantly natural charm.

In all of your backyard landscaping decisions, it’s important to strive for a balanced result in terms of ongoing maintenance requirements. While you want your yard to look attractive, you also want to avoid turning it into a high-maintenance project for the next owner. Housing for sale in Austin that features spectacularly elaborate lawn designs may well turn off some prospects (particularly those with children or pets). By keeping your landscaping relatively simple, you can establish a yard that looks good without evoking thoughts of overly-challenging upkeep requirements.

Are you about to prepare your home for this season’s spring and summer market? Then why not call me so we can start with a consultation on how to boost your Austin property’s value using some tried-and-true cost-conscious techniques.

 

Austin Property Values Benefit from Spring Ritual

The first day of spring falls on the 20^th—making Wednesday the day many homeowners start planning their ritual seasonal maintenance. Spring is also the traditional launch of the busy season in real estate, when safeguarding Austin property values can become a less abstract matter.

Because water damage is Public Enemy #1, homeowner checklists should always highlight three points:

First: the Roof

As soon as March’s lion turns a bit more lamb-like, it’s time to get out the ladder to survey roof damage. Leaves, twigs or other storm debris that have clogged gutters during the weather months can allow moisture to penetrate the roofing and below, in the worst case triggering mold or rot. Look for holes or rust in the flashings or metal seals around roof joints, chimneys, skylights or any other structures that penetrate the roof.

Second: Down Under

Now it’s time to go down. While spring rains are still falling, put fresh batteries in your flashlight and head to the furthest reaches of basement or underneath the house to check for puddles. Even when it’s raining outside, your home’s foundation should remain dry. When it comes time to sell, Austin homes’ property values are seriously affected by water damage, some of which might not appear upstairs until later. If you see signs of trouble, it’s time to call an expert.

Third: the Exit Routes

That is— the drains. Backed-up plumbing is a nuisance you can avoid if you clean all the drains two or three times a year. Don’t forget the garbage disposal, either. My trick is to pour in equal parts salt, baking soda and vinegar, followed 30 seconds later by two quarts of boiling water. Then give the mixture a chance to work overnight before running water again.

With the sales market poised for spring action, the protection careful homeowners have given to their own Austin property values will make a material difference. But you don’t have to be selling your home for this time of year to trigger the maintenance efforts your property may need. Got a property-related question? Give me a call!

Some Austin Listings Should Trigger an Audit!

…an energy audit, that is. That’s a lot more than a piece of tax-time humor – it’s a growing trend that rising energy costs have made ever more practical.

A survey by Fannie Mae found that the cost of heating, cooling, and hot water is now the highest single cost of homeownership, second only to the cost of the loan on the property. When buyers are prowling through the Austin listings this season, the more savvy among them are beginning to look for a HERS number: its Home Energy Rating System audit score.

HERS was developed by the Residential Energy Services Network (RESNET). This score represents the foremost nationally recognized system for calculating energy efficiency. Even if a formal HERS audit hasn’t been conducted (Austin listings feature those that have), knowing how they calculate their findings gives buyers and sellers a conceptual basis for comparing prospective Austin property purchases. Items inspected include:

• Building envelope features (windows, doors, insulation, ducts) and ages
• Heating, cooling and ventilation equipment types, characteristics and ages
• Appliance and lighting characteristics
• Comfort complaints
• Visible moisture issues
• Visible health and safety issues

When a full HERS Index is calculated, the lower the score, the greater the home’s energy efficiency. According to RESNET, more than 1,100,000 homes now have a HERS score — including 40% of all new homes. It’s why more and more existing homeowners find that including a HERS score in their Austin listings adds a powerful competitive selling point.

Contact me if you would like help preparing a marketing package. It could one that features your own HERS score: if your home is energy efficient, that’s one audit we’ll want to volunteer for!

Austin Investment Properties Offer Long Term Potential

Never mind what those TV get-rich-quick infomercials would have us believe: building long-term wealth requires focus and patience. Patience, because a steady growth is a more reliable strategy than flashier single investment ‘wins’ — and focus, because opportunities slip past when daily demands soak up all our attention.

For financially secure individuals, current real estate trends deserve some attention. Right now we have an environment that may be unique in our lifetimes — one that calls for seriously considering the long-term potential investment properties offer. If you agree that investment properties in Austin are worth investigating further, you will discover multiple financing alternatives:

• Finding a mortgage for Austin investment properties is the choice most people think of first. However, since the lending market is still in recovery mode, it may be a while before most down payment requirements drop below 20%-30%
• By setting up a self-directed IRA, you may be able to make investments through your existing savings. Such investments come out of your IRA, and the profits generated remain there and grow tax-free until you retire. There are limitations to this method of financing: don’t rely on this route until you have sought the advice of a qualified financial advisor or your tax attorney.
• For anyone 62 or older, an idea that is not often considered is the reverse mortgage. The object is to allow you to access equity from the property you currently own without having to sell it. Unlike a regular mortgage, the equity released need not be repaid until the mortgaged property is sold or the borrower dies; but it may be repaid with the interest accrued without penalty at any time.

To be sure this or any of the other financing paths work to your advantage, you’ll need a sharp pencil — and guidance from a reliable licensed financial counselor. If you’ve already been thinking that the time is right to start or grow your investment portfolio through the purchase of real estate, contact me for hot leads on some of today’s best investment properties in town.

 

AUSTIN REAL ESTATE NEWS

The good news for the Austin real estate market continues to roll in. We are now seeing multiple offers on homes, condos and investment properties market wide. Many properties are going for tens of thousands over the asking price after just hours on the market. Some properties are even selling with just a “Coming Soon” sign out. The downside is that many appraisals are not meeting the contracted price, which is troublesome for both buyers and sellers. The new appraisal rules in place (since the mortgage meltdown) have constrained how fast a market can move up. Realtors are adjusting to these rules by requiring that buyers bring additional cash to closing to make up for the difference between the appraised value and the contract price.

Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS®, explained, “Strong demand for Austin homes continues, but the number of listings on the market remains consistent. This has led to steady increases in price while keeping housing inventory at record lows.” In February 2013, the median price for Austin-area homes increased to $208,500, which is seven percent more than the same month in 2012.

Additionally, the market featured 2.6 months of inventory in February 2013, which is 1.6 months less than February 2012. The market also featured one percent more new listings, 25 percent fewer active listings and 15 percent more pending sales in February 2013 compared to the prior year. On average, homes spent 71 days on the market, which is a decrease of 15 days from one year prior.

February 2013 Statistics

1,626 – Single-family homes sold, 26 percent more than February 2012.

$208,500 – Median price for single-family homes, seven percent more than February 2012.

71 – Average number of days single-family homes spent on the market, 15 days fewer than February 2012.

2,574 – New single-family home listings on the market, one percent more than February 2012.

5,121 – Active single-family home listings on the market, 25 percent fewer than February 2012.

2,223 – Pending sales for single-family homes, 15 percent more than February 2012.

2.6 – Months of inventory* of single-family homes, 1.6 months less than February 2012.

$430,324,152 – Total dollar volume of single-family properties sold, 32 percent more than February 2012.

The spring selling season is fully underway, so if you have been thinking about selling your home, get the process started now. There are serious buyers in the market looking for the right properties. If you are interested in selling, call me now with your details, and I will be happy to provide a competitive market analysis of your home’s value. And remember that with the Goldwasser Advantage Home Selling System™, we are selling homes faster and for more money than all the other major brokerages in Austin. In fact, many properties are receiving multiple offers and selling for over list price.

If you are thinking about buying a home, this is still one of the best times in generations. Mortgage rates for 30-year mortgages are still below 3.5%, but are expected to rise. Until
rates rise, later this year, you can still save tens of thousands of dollars over the life of your mortgage by buying today. Also, more and more people are opting for a 15-year mortgage since those rates are still below 3%. If you would like to buy a home then call me with your criteria so that I can set you up with a custom search of the Multiple Listing Service which will send you properties that meet your criteria as soon as they come on the market.