Real Estate Wisdom: 3 Pro Tips From Our Recent Sales Success!

Here are three valuable tips from our recent real estate sales.

Today, I’m sharing the three key takeaways from my recent sales experiences:

1) Buyers prioritize homes that are either completely updated or are excellent deals, not necessarily the cheapest or the nicest in the neighborhood. In some cases, our buyers purchased homes for $59,000 or even $110,000 below appraised value.

2) Mold is becoming a significant concern for buyers, and it's crucial for sellers to consider getting a pre-inspection to address potential mold issues.

3) Sellers who own their homes outright should consider owner financing as an option. We recently facilitated a successful deal with this approach, resulting in a quicker sale at a higher price. We worked with an attorney and a third-party servicer to simplify the process, with the added benefit of potentially saving on taxes by spreading out the gain over time. However, please note that I'm a Realtor, not a CPA, and this information is not legal, financial, or tax advice. 

If you'd like to discuss real estate further, please feel free to call or email me. I’m always happy to help.

Breaking Free From Low Interest Rate Shackles: Creative Solutions for Homeowners

A few alternatives to selling your home amidst higher rates.

Have you heard anyone talking about the low interest rate golden handcuffs? Essentially, there are a lot of homeowners that would like to move, but they feel trapped by their sub-4 % interest rate that they don't want to give up. It's a big issue affecting our market right now. 90% of mortgage holders have an interest rate below 3.5%, which is about half of what interest rates are now. Therefore, let's talk about three things you can do instead of selling: 

1. Become a landlord. You can keep your current home with a low interest rate and then just rent out the property. Then you can buy a new home, and there are a lot of deals to take advantage of in today’s market. Plus, there are a lot of tax incentives involved in being a landlord. Overall, it's an amazing way to build wealth.

“You have options if you don’t want to sell.”

2. Get a home equity line of credit (HELOC). This is essentially a loan against the equity you have in your home. This could help you buy an investment property or even improve the home that you’re in. 

3. Build an auxiliary dwelling unit (ADU). This is essentially building a guest house on your property. These can help you build wealth without having to sell your home. Therefore, sometimes this is a better way to go. A lot of older homes already have a way to add an exterior entrance to a couple of rooms. Then you have two doors for the price of one. 

As always, if you want to know more about these strategies, don't hesitate to call me. I look forward to talking with you soon! 

Exploring the Real Estate Shift: The Declining Fixer-Upper Trend

The top three reasons to avoid buying a fixer-upper property.

In a recent headline from The Wall Street Journal, it was stated that nobody wants to buy a fixer-upper right now. While this claim may seem extreme, there are several compelling reasons why buyers are shifting their focus away from these properties. Here are the top three reasons behind this trend and its implications for both sellers and buyers:

1. Overpricing and increased supply. Fixer-uppers have been significantly overpriced in recent years, mainly due to the limited inventory available in the housing market. With limited options, buyers were willing to pay a premium for homes that required renovations. However, a closer look at the Austin market's 78745 zip code reveals a different story. Homes that have been updated are now selling for 25% more than their unimproved counterparts. Moreover, the market has seen a surge of 50% in the number of homes available for sale in the past year. This increased supply gives buyers more choices, making fixer-uppers less appealing.

2. Preference for current interest rates. Buyers are now reluctant to give up their current favorable interest rates in exchange for a fixer-upper. Harvard University's Joint Center for Housing Studies indicates that home renovations are surpassing expectations and outpacing the previous year. However, many buyers are opting to stay in their current homes and undertake renovations instead of embarking on a new project. This choice allows them to preserve their low interest rates and customize their existing homes to suit their needs.

“Homes that are renovated sell for significantly more.”

3. Lower prices and reduced competition for renovated homes. Renovated homes are becoming more attractive as their prices continue to decrease. Taking the 78745 zip code as an example, the median home price has dropped by almost 15% compared to the previous year. This decline, coupled with fewer buyers seeking fixer-uppers, has led to decreased competition in the market for renovated properties. Buyers looking for move-in-ready homes can take advantage of this trend by negotiating favorable deals and finding their dream home without the hassle of extensive renovations.

What are the implications for buyers and sellers? For sellers, investing in updates and improvements is crucial to make their homes market-ready. This includes staging the property and hiring a professional photographer to showcase its full potential. By presenting a well-maintained and visually appealing home, sellers can attract potential buyers in a market where fixer-uppers are losing popularity.

On the other hand, for buyers, this presents an excellent opportunity to enter the market. With prices of renovated homes on the decline and less competition, buyers can negotiate favorable terms and find their ideal property. It is a favorable time to explore the market and make a purchase that aligns with their needs and preferences.

By understanding these trends, both sellers and buyers can navigate the housing market more effectively in the current landscape. If you have any questions about the market, don’t hesitate to reach out by phone call or email. I would be happy to hear from you.

Austin’s Housing Market Sees a Dip: What It Means for Homeowners and Buyers

Most important things you should know about the March housing market.

Today I’m sharing the top three takeaways from the end-of-Q1 numbers and discussing how the market went exactly as we predicted months ago. 

First, overall prices are down about 15%, which is a $100,000 drop from the peak of the market a year ago for median prices in Austin, Texas. This is the correction we knew was coming, with interest rates stabilizing and home values starting to follow suit. In some cases, we're even seeing prices going up.

Second, homes that are priced well are still selling, and sellers just need to be serious, motivated, willing to follow their Realtor's advice to get the property ready for the market, and willing to make some concessions. Pivoting with the market and adjusting to it will keep you from having to sit on the market for months at a time.

“This is the market buyers have been waiting for.”

Third, buyers, this is the bottom of the market you've been waiting for. Take advantage of the stabilized interest rates and home prices while the inventory is still somewhat limited. If the inventory continues to be limited and interest rates continue to soften, the market will pick back up. This is the perfect time for first-time and move-up buyers to purchase a home. Let us know if you’re thinking about making your move, so we can discuss how you can get great deals and interest rates.

Yes, our market is dropping, but it's still a good time to sell. In fact, this is the market you've been waiting for. Call or email us if you need someone to guide you with your real estate goals.

Discover the Secrets to Successfully Protesting Your Property Taxes

We can help you get the right information to protest your property taxes.

Did you know that this is the year to protest your property taxes? With the market dropping about 15% year over year, this is the time to push back against the county and get your property tax bill to go down. To help you do this, we’re sharing a few things you should know. 

First, know that you can do it yourself online on the county's website, or you can hire an agency to do it on your behalf. We prefer to hire an agency because it's a lot of work, and we want to make sure it’s done correctly and that we save the most amount of money possible. 

Secondly, make sure to contact us to have us put together a comparable market analysis for you to use in your protest. Those haven’t mattered as much in the last five years, but now they matter again. Things have changed dramatically in Austin, so it’s time to push back, and we can give you the concrete proof that you need.

“Now is the time to push back against the county and get your property tax bill down.”

Lastly, we highly recommend using a professional. We use Home Tax Shield and wholeheartedly endorse them. You can click here to learn more about their services. Plus, they donate to one of our favorite causes in Austin, the Community First Village. Just make sure to act before May 15. 

Don’t forget that you can reach out to us for help with the comparative market analysis and much more. And as always, we would love to help you buy, sell, or invest in Austin. You can call or email us anytime, and we look forward to hearing from you.