Selling Your Home: Getting More Than An Offer

Everyone knows that Austin is a seller's market right now. You all have heard some variation of the following story….

“We put our home on the market, had 8 offers in 2 days and sold it for $12,000 over our asking price!”

That’s exciting, right? And honestly, in this market we experiencing right now, this isn’t hard for any Realtor in our market to accomplish. The market can do a lot of the work if your goal is ONLY to get an offer. If your goal is to get it SOLD, then keep reading!

HOMES NOT STAYING SOLD

A new common trend that a lot of people ARE NOT talking about is having their home come back on the market after receiving multiple offers and having a bidding war.

Let’s first look at the statistics and see how common this trend is…

According to the Austin Board of Realtors, in the last week 465 homes have gone under contract in Austin. During the same period, 93 homes have gone under contract and come back on the market. That is roughly 1 in 5 homes not staying sold after initially going under contract!

From my experience, once your seller has picked an offer, most of the other buyers go away. They move on to other properties, their initial enthusiasm has waned and/or they rethink their initial bid. Losing out on this initial “herd mentality” can really suck the wind out of a home sale/sail. See what I did there…

The top reasons buyer’s back out of contract (in no particular order):

1. - They are not financially qualified to purchase the home
2. - They are having regrets about paying so much for the home after bidding it up
3. - The buyer and seller cannot agree on repairs during negotiations.
4. - The home not appraising for the agreed upon price AND the buyer and seller not agreeing on how to proceed forward
5. - Miscellaneous reasons: lost their job, lost their minds, were crazy to begin with, divorce, natural disasters, etc...

The sad reality is that most, if not all of these issues could have been easily avoided. The worst part is that, if the buyer AND the seller would have hired a more qualified Realtor to represent them, reasons #1-4 could have been avoided. 

If you want it to stay sold AND sell for top dollar, there are a few things you need to be thinking about.

 

#1 - Qualify the Offer

This is the simplest and first step you should take when receiving offers.

• Make sure the terms are fair and reasonable for all parties.

• Make sure the contract is completly and properly filled out. (You can’t imagine how many contracts I see with major mistake that can cost buyers and/or sellers a lot of money)

• Run a Seller Net Sheet on each offer to help compare offers and see which one will bring you the highest net proceeds at the completion of the sale. (Sometimes it is not always the highest offer that nets you the most, there a lot of other factors to consider)

• If any of the terms aren’t clear, call the buyer or buyer’s agent for clarification to ensure you know what you are accepting, countering or rejecting.

#2 - Qualify the BUYER

Let’s start with the premise that all buyers are emotionally drained, crazed lunatics who’ve made ten offers on ten houses only to be rejected. They are beaten down, kicked around and will do just about anything to get a house. We will call this buyer "BOMB BUYER", ready to explode at any point.

What we are trying to ensure is that your buyer IS NOT a bomb buyer. That they have thought the purchase through and are in a good state of mind to buy. It really helps when a cover letter is attached to the offer telling us a little more about the buyer. It is also prudent for a listing agent to have a conversation with a buyer’s agent. It’s amazing how often this does not happen and how amazing having a five minute conversation can get everyone on the same page. Texting/emailing does NOT count as a conversation.

Questions to ask are:

• How many offers have they made?
• How long have they been looking?
• Have they walked away from any purchases after going under contract?
• Are they first time homebuyers?

This line of questioning should get a good conversation going and help you understand how likely they are to continue forward if you decide to accept their offer.

#3 Qualify the Buyer’s Lender

This is another easy phone call that a good Realtor will make on behalf of the seller. Having them have a quick conversation will help give you a better understanding of how strong of a borrow the buyer is. It is also prudent to find out if the lender qualified them based on a conversation or they actually collected pay stubs, ran credit, etc.

Some good tips for working with lenders are:

• Are they local? Can you physically go visit them?
• Do they have a direct phone number you can call to reach them?
• Do they have an in-house loan processor that they can access quickly and easily?
• What is their track record for closing on time?
• Have their appraisers been coming up short on appraised values? Are their appraisers vetted and scrutinized regularly.
• Do they do a lot of the type of loans they are qualifying the buyer for? I.e. FHA, VA, Jumbo loans, condos loans, 1st and 2nd mortgages, etc.

If I am raising more questions than answering them with the above line of questioning, feel free to reach out to me so we can dig into why these questions are important.

Buyer tip: In a competitive market, choosing a lender based on interest rates and closing costs is not always the best idea. You need the lender who will go the extra mile, ensure you will close on time and make you look good to a seller. It’s about winning in this market, not about getting the best deal.

#4 Qualify Your Buyer’s Realtor

This is another area where you need to know you can trust the other party to perform and see the purchase all the way to closing. Believe it or not, there are a lot of Realtors out there who seem to enjoy having contracts terminate. They create emotional drama instead of being the calm voice of reason in the transaction.

Thousands of real estate transactions close everyday. Everyone agrees to the terms, all parties are happy and it is a win-win for both sides. There is no reason that the sale of your home shouldn’t happen just like clockwork as long as everyone is doing their job. Remember, clear and consistent communication by all parties involved solves 99% of problems that arise.

Make sure the buyer is represented by an agent who has experience (or is being mentored by an agent with experience), make sure they understand the type of property their client is buying and how the process works for the specific property--i.e. condos, land, multi-family, ranches all have different things that need to happen.

 

In summary, make sure due diligence is done before accepting an offer. This market moves fast and emotions run high. Have a plan on how you are going to review and respond to offers and stick to it. When offers come in, don’t stray from the plan. And if I didn’t touch on it enough, make sure your agent is picking up the phone to have real conversations with prospective buyers and their agent. Communication ensures you will net the highest amount and reduce the likelihood of contracts falling apart. If you have any further questions about selling your house or want to know more about something specific I touched on please don't hesitate to reach out. I would be happy to help you out in any way I can. 

Life in #78704

    It’s no secret that 78704 zip code is one of the most desirable neighborhoods in Austin. It has a little bit of everything that we love about Austin. From Zilker Park and access to the Hike & Bike Trail to Bouldin Creek, SoCo, and South Lamar; the list of things you can do in 78704 is almost never-ending. That’s why we’ve created a list of some of our favorite spots in the neighborhood, and here’s the kicker - these are all things you can do in one day! Because of the notorious Austin parking we suggest putting on those walking shoes or renting one of the many Austin B-cycle stations located conveniently around the neighborhood (not long ago Uber & Lyft would have worked perfectly here but alas they have left town however feel free to give one of the new ride sharing startups like GetMe, Ride Fare, or Fasten a shot and let us know what you think of them).

Café No Sé - Brunch

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    South Congress is definitely one of the most popular and busiest spots in Austin. While it can by known as a bit of a tourist trap there are plenty of great gems that make the trip worth it.  The recently built South Congress Hotel, while initially controversial, has turned out to be quite the attraction. Whether or not you love the design (and I must say I quite like it) the restaurants and shops that have set up on the ground floor are a perfect addition to the SoCo scene. Our favorite has got to be Café No Sé. This casual little eatery will have your taste buds singing and your style sense falling in love. From its food to its interior it brings a little slice of that California goodness to our central Texas town. Our favorite item might just be the avocado toast, it’s not the fanciest item on the menu but its perfectly executed, with a soft-boiled egg, crème fraîche, upland cress; it will have you wishing you could eat it for breakfast every morning.

 

Seventh Flag Coffee - A Snack & Pick Me Up

    Hopefully you didn’t overeat too much during brunch, but either way a rousing walk is always a good post meal activity. So be sure to do a least a little window shopping before you head out to your next stop. After you’ve checked out some of SoCo’s finest shops and before the crowds get too overwhelming you can take a quick stroll through the nearby neighborhoods to get to one of our favorite coffee shops. Just down Monroe St. is a small coffee shop hidden in plain sight on South First: Seventh Flag Coffee.  This beautiful little house has a great service, fantastic coffee, and plenty of great seating both inside and out. So grab one of their amazingly creamy lattes or a refreshing glass of coldbrew and enjoy an nice afternoon pick me up. And if you’re feeling a little peckish after your stroll over here they’ve got some great snack options, from local pastries to some great toast options ranging from avocado to ricotta & jam. If you're feeling especially gluttonous the Gourdough's donut food truck is conveniently located just across the street!

Lamar Union -  dinner, drinks, & dessert

    After spending a nice afternoon sitting in the Austin sunshine it’s probably getting close to time for another meal. While South First is home to some fantastic restaurants like Sway, Elizabeth St. Cafe and Bouldin Creek Cafe, we feel it’s best to explore more of what 78704 has to offer while you’re in the neighborhood. So let’s head over to South Lamar and see what’s new over there. It can be a bit of a hike to get over there so this might be time to try one of the new Austin ridesharing programs or try out those Austin B-cycles and take a trip over to another Austin institution that has seen a recent facelift. After some major tear-down and renovations the strip mall that used to house the South Lamar Alamo Drafthouse and the Highball is open again and with some big changes. It now features some of our favorite Austin standbys along with some new faces that we hope stick around for a long time to come. You really have an incredible amount of options here depending on what you are in the mood for; from casual East Coast imports like Shake Shack to fancy farm to table feasts at Vox Table to the beloved gourmet ice cream shop, Lick. With such a vast array of options the world is really your oyster at Lamar Union. You can take in a movie at the Drafthouse, grab some drinks and do some karaoke at Highball, have a nice date with that special someone, or just hang out with some good friends and good food. 

Where ever you may end up in #78704 you're bound to have a great time. And if you've ever dreamed of living here for yourself give us a shout and we'll help get you into this amazing neighborhood. 

Don't let the Austin tax man get you down...

If you’re reading this right now, you have probably just opened your appraisal value notice letter from the county and immediately googled, “Austin Tax Protest” or some variation of those keywords.. If this is the case, you are in the right place. I have talked to more disgruntled homeowners this year about protesting their taxes, than any previous year in my 14 years as a Realtor.  

The questions I usually get are:

• Can they really raise my property tax value that much??
• Do you think my home is really worth what the county says it is??
• What do we do about it?

And my reply is:

• Yes
• Maybe
• Protest, Protest, Protest!

So how do you go about protesting your property taxes? Have no fear, I have the answers.

Decide if you want to handle this yourself or hire a professional.

There are pros and cons to both approaches. If you are more hands on and have the time to go into the Appraisal District’s office, my step-by-step guide to protesting your taxes is below. If you are too busy or don’t want to take on the task yourself, I can walk you through hiring a professional as well.

HIRING A PROFESSIONAL.

If you don't want to tackle this problem on your own, you can always hire a PRO. There are a lot of good property tax protest companies out there. They structure their fees as a percentage of what they save you on your taxes.

Example-- The county values your home at $450,000. 123TaxProtests, LLC goes to bat for you and lowers that valuation to $400,000. This saves you approximately $1,000 on your tax bill. You would pay 123TaxProtests, LLC a portion of that savings (typically 20-40%), about $200-400 and they would have saved you between $600-800.

Normally, I don't recommend just one company when anyone asks for a referral. However, we've personally had amazing results with TexasProTax.com. They have a great team (some of whom are former employees of the county) with offices right next door to the appraisal district's office. They have an easy online system and you can sign up to have them protest every year on your behalf.

Protesting your taxes yourself.

#1 - Submit the paperwork on time!

Make sure you submit the paperwork to protest BEFORE the deadline ends. In Travis County that is May 31st, 2016 or 30 days after you receive your appraised value.

The best way to protest your taxes is online, here.

Travis County Appraisal District (TCAD) has a great video explaining the process here.

#2 - BE PREPARED for filing your protest

• Have recent comparable sales in hand.

• Put together a list of reasons why your home should receive a lower value-- i.e. Your home backs to a busy street. Or, your home hasn't been updated since 1962.

Feel free to reach out to us for a FREE in-depth home evaluation that we can customize for your protesting needs.

#3 - It’s Better to Settle!

It is almost ALWAYS better to settle with the county through the informal protest process. With TCAD, this all happens online now and is a much easier way to get a reduction. If you opt to not accept the results of the informal hearing, you will be scheduled to go to a Formal Protest.

#4 The Formal Protest

Opting to attend a Formal Protest is a whole different animal altogether. You will be brought before a panel of people who will review your case. Be prepared to provide multiple copies of your documents for everyone involved (usually 5 copies, plus your copy).

From my experience, Formal Protests are not always productive. I’ve even seen a few cases where the protest backfired and the county raised their taxes. So tread lightly or consult a real estate attorney.

We are happy to make a recommendation for some excellent real estate attorneys if the need arises.

Protip #1:

I almost always recommend challenging your property taxes the year after you purchase a new home. The county is at liberty to raise your property tax value any amount they wish the year after you take possession. In years to follow they are only allowed to raise your taxes by 10%. The first year will set a precedent for all following years, so go ahead and push hard for a lower value.

Protip #2:

Make sure you are taking every exemption possible with the county. For the majority of you, that would be filing for your Homestead Exemption. If you are over-65 or disabled, there are other exemptions for you as well. If you know of anyone over-65 that may not have the paperwork filed, we would be happy to assist them in getting it done.   

The last thing I will say on the topic--and this is a little bit of a soapbox moment--we are privileged to live in one of the greatest cities in the world. Austin’s diverse population, acres and acres of city parks, greenbelts and swimming holes, our amazing rivers and lakes are all maintained by this tax base. I ALWAYS challenge my property taxes, but I always pay the bill with a smile to be able to enjoy living in such an amazing place.

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Disclaimer: All counties in Texas handle property taxes and property tax value protests differently. If you are NOT in Travis County, consult a local professional. We can also provide insight on working with Williamson County and Hays County. We can put you in touch with a local professional in any other county in Texas. That being said, please don’t consider any of this article as legal counsel. I am not an attorney and do not claim to be. Otherwise, happy protesting!

New Use for Traditional Spaces | Formal Dining -> Media Room

Don't be afraid to reimagine non-traditional uses for traditional spaces. Below is an example of how a super savvy homeowner converted the formal dining room {that she knew she would never use} to a media room and the former media room to a playroom for her daughter. Ooo la la! Snaps for her boho chic taste as well.

Dining Room Before

Media Room After

TV Room Before

Play Room After

FOR SALE | LANTANA | AUSTIN, TX

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Paradise in South Austin’s Rolling Hills of Lantana with a Media Room Retreat

This home has it all! The perfect one-story floor plan with all the updates + 500 sqft bonus room upstairs in South Austin’s prized neighborhood, Lantana. Natural light fills this home with a large, tiled entry, engineered wood floors, chef’s kitchen with granite and stainless appliances. The kitchen opens to the living room and breakfast nook. All bedrooms downstairs with a separate study and a great view out to the greenbelt. Walk out on a beautiful wood deck in the backyard and go downstairs to a custom stone patio with outdoor fireplace.

$450,000, 3Bd/3Ba Single Family House, 2651 sqft.

Year Built: 2007

Sq Footage: 2651 sqft.

Bedrooms: 3

Bathrooms: 3 

Floors: 2

Parking: 2 Garage

Laundry: In Unit

Lot Size: 7405 Square Feet

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