SellAustinTexas

According to Trulia’s rent vs. Buy Index 2011, the smart choice for most Austinites right now is to buy.

Austin is among the top 50 U.S. cities where it is “Much Less Expensive to Buy Than rent”, coming in at #35. What does that mean? Well, when you look at the average home price vs. the average monthly cost of rent in Austin, the numbers show that it is significantly more affordable to buy in most areas of the city. With rental rates increasing and interest rates at historic lows, buying is financially the smarter choice. So, is buying right now the right choice for you? This is a sampling of Austin MLS areas:

Rent Vs. Buy MLS Area Comparisons

This “perfect storm” of home buying conditions aren’t going to last for long. Take advantage of low mortgage rates and low home prices. There’s never been a better time to buy than now.

If you have questions on the Austin housing market or want to get started on buying a home, call Chuck Stephens, our buying expert, at 512-947-8077 or drop him an email at cstephens@cbunited.com.  To see current inventory, visit our web site www.dmtx.com.

Low interest rates, large resale inventory and big incentives on new homes have been big motivating factors for home buyers recently.  If you have a steady income and good credit, now is the best time to buy a home, not only for a place to live but for future investment as well.

If you’re ready to make that leap to home ownership, there are 4 things that you need to do before even getting in the car to take a look at that first house.

1) Pre-approval for a home loan – If you are serious about buying, talking to a loan officer or mortgage broker and getting pre-approved for a loan should be the first step.  You will know how much home you can afford and begin to really focus your home search.  But most importantly, with a pre-approval letter from the bank, you will be able to submit an offer on a home more quickly as most home sellers require a pre-approval letter with offers.

2) Collect Pay Stubs, Bank Statements and Tax Returns – Banks need these in order to process your loan.  Keep the last 6 months of pay stubs, print out your bank statements from the past year and print out the past 2 years of tax returns.  Having these handy will speed up the loan process and help ensure all deadlines are met when you put a home under contract.

3) Don’t Make Any Big Credit Purchases – Your credit score is checked 2 times during the purchase of the home.  The first is during the loan approval process.  The next is right before closing which could be 30, 45 or even 65+ days after the approval process.  If there’s a big purchase that hasn’t been paid off, delinquent bills or anything else that might affect your credit it could create problems in getting the loan and in you getting your home.

4) Save Cash In Order to Pay Closing Costs – Depending on the type of loan you get, you’ll need to pay 10%-30% of the total sales price in cash at the closing table.  On top of that, there are other lenders fees, inspection fees and sometimes title company fees that you will need to pay in cash.  It’s smart to get a Good Faith Estimate from your loan officer or mortgage broker in order to know how much cash you will need at the closing table.

If you have more questions on the buying process, feel free to give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com

Not only does this Spring in Austin and central Texas mean warmer weather, bluebonnets and heading to the great outdoors, it is alsolooking like a great Real Estate season here and in Texas.  With new construction of both homes and multi-family properties slowing dramatically and, according to the Austin American Statesman, central Texas employers adding 11,400 jobs from February 2010 to February 2011, the time may be right again to buy central Texas real estate.

A recent article in Fortune proclaimed “Forget stocks. Don’t bet on gold. After four years of plunging home price, the most attractive asset class in America is housing” .  With a historic drop in new construction and with housing prices down…now is the time to buy.  As the economy continues to grow and with rental rates still rising, buying and investing is up.  Because there is very little new construction happening..demand could start exceeding supply and prices will once again begin to rise.

Read Fortune’s article; “Real Estate: It’s Time to Buy Again” here

See Wells Fargo’s Texas Economic Outlook here

If you are ready to buy…whether first home, dream home or investments, start at www.DMTX.com where you can search all of Central Texas for your perfect home, ranch or waterfront property.

It’s March in Austin Texas, we have sprung forward, seen the last of winter’s chill and we prepare for over 200,000 internet enthusiasts, film buffs and music enthusiasts to visit our fair city for the SXSW Music Film and Interactive Festival.  We welcome not only the fans, but major film and television personalities, politicians and world renown musicians such as Jake Gyllenhaal, Al Franken, Kanye West, The Foo Fighters and many, many more.

There are even events for those of us who would prefer to avoid the crowds downtown, but still want to see amazing performances. This week SXSW is featuring a stellar lineup at Auditorium Shores…kid friendly and completely free!

Thursday, March 17th,  Luke Rahtborne starts the evening off at 6:00pm, followed by Twin Shadow at 7:00 and ending with The Strokes at 8:00.

Friday, March 18th,  Suzanna Choffel kicks it off at 6, followed by Bowling for Soup then Blue October finishes it up at 8pm

Saturday, March 19th is tailor made for the whole family starting at 11am with The Groundwork Music Orchestra, Ozokidz and MarchFourth Marching Band.  The evening ends with Bright Eyes taking the stage at 7:30 (see the full schedule here)

With all the energy, amazing March weather and, let’s face it, the incredible people who live in Central Texas, it’s no wonder that after SXSW there  is a renewed interest in all things Austin, including making it a new home or even 2nd home.  You can find your Central Texas home away from home on the DMTX Realty Group website…whether it be land in Hill Country, a lakeside retreat or your Central Austin dream house.

James Kelley at VABenefitBlog.com donated this great blog post to explain the differences between the Federal VA Home Loans and TexVet Loans:

Veterans who relocate to or live in Texas can take advantage of exclusive home loan benefits.

The Texas Veterans Land Bureau (VLB) came up with the mortgage program in 1983. As a result, VLB provides Texas service members with more affordable home financing options.

Tex Vet Loans are similar to the VA home mortgage program with an interest rate under five percent and little to no money down required on the loan.

What’s the Difference?

VA loans and TexVet loans have two key distinctions. The VA loan can be refinanced, while the TexVet loan is not eligible for refinancing. However, eligible TexVet borrowers receive unique discounts and rates.

Disabled Veterans Discount reduces the interest rate amount for veterans with a service-connected disability of 30% or more. The Department of Veteran Affairs confirms the disability through a letter. Borrowers seeking a discount need to have this letter in their documentation. The qualifying veteran can have a 0.5% deduction on his or her interest rate.

Surviving Spouse Discount provides spouses of a partner killed in the line of duty with a 0.5% discount on their interest rate. Spouses of veterans who had a 30% or more service-connected disability at the time of death can also obtain the discount.

Both of the discounts result in a lot of money saved for the qualified borrower—thousands of dollars during the life of their loan.

Other Benefits

Like the VA loan, the TexVet loans require no money down, and besides the discounts, they already have low rates in comparison with conventional loans in the real estate market. Borrowers get up to $325,000 towards the purchase of a home. They can choose from a 10, 15, 25 or 30 year fixed rate mortgage.

Qualifications

- Interested applicants need to establish Texas as their primary residence. They must find a home in Texas that originates with a Texas Veterans housing Assistance Program (VHAP) approved lender.

- The loan does require a decent credit rating of at least 620 or better.

- The house itself will have to pass certain requirements. Homes must be a single-family home, town home, condominium or planned unit development. Duplexes and other multi-units must be more than five-years-old on the closing date of the loan. Borrowers have to contact the VLB to verify if a manufactured home is eligible. Newly constructed homes must meet ENERGY STAR guidelines as set through the Environmental Protection Agency and ENERGY STAR labeled and certified. This means the new home is energy efficient.

It’s a good idea to talk with veteran home loan specialists or counselors. They can help borrowers to seek out lenders and make sure borrowers meet all requirements, turning in all the proper documentation.

Check out James’ blog VABenefitBlog.com for more helpful info for vets.

The past year has brought a lot of adjustments to the Austin market.  Here’s a year-end rundown on stats (compiled as of 11-30-2010):

Total dollar volume of single family properties sold: $4,180,259,992 – down 1% from 2009

Average price for single family homes: $194,000 – up 3% from 2009

Single family homes sold: 16,477 – down 6% from 2009

Average days on market: 76 – down 4% from 2009

Looking at the numbers, we saw the average price rise and the average days on market go down – both signs of improvement in the market.  However, the total volume went down in both number of dollars and number of homes.   These up and down stats point to a 2010 Austin real estate market going through a period of adjustment.  It will be interesting to see how 2011 turns out.

Here’s some recent good news in terms of the economy.  According to the Brookings Institution, Austin was one of only 15 major metropolitan areas to experience job growth in all 4 quarters of 2010. Forbes ranked Austin as the 10th most affordable city in the US. It notes our strong high tech job economy.

Let’s face it, some homeowners have gotten in way over their head on their property and just need to get rid of it. There’s just not a lot of buyers out there and they can’t sell it for what they paid for it. That leaves them with two options: Short Sale or Foreclosure. Most people who are underwater on their loans opt for Foreclosure – defaulting on the loan and giving the property back to the bank. Often people have not fully explored all their options with their lender and are unaware of the Short Sale option. In simple terms, a Short Sale is asking the lender to take less than what is owed on the loan. This allows a homeowner to lower the selling price of their home to a price point that will get it sold and prevents them from defaulting on the loan. Here are some major differences between a short sale and foreclosure.

1) Credit Score – Defaulting on a loan and going into Foreclosure will result in a 200-400 point hit on your credit score. That’s big and it will affect not only your ability to get another home loan but any credit card limits, car loans and any other purchases made from credit. A Short Sale typically will reduce your credit score from 50-130 points – a much more manageable hit.

2) Future Home Purchase – A Foreclosure on your record will prevent you from obtaining a loan anywhere from 5 to 7 years. However, if you are not behind on payments and opt for a Short Sale, you are eligible to purchase another home under Fannie Mae in 2 years. The wait for an FHA loan is 3 years.

3) Deficiency Judgement – Another more immediate cost associated with Foreclosures and Short Sales is the deficiency judgement. This is the lender asking for you to pay them the difference between the sales price of the home and the value of the loan. The government and the lender see this as income and could have tax implications along with the fact that the lender still wants money from you. Typically, with Short Sales these days, the lender is willing to forgive that difference. With a Foreclosure, the lender is less forgiving and usually goes ahead and issues a deficiency judgement for that difference.

Although neither is a good alternative to hanging in there and making the payments, pursuing a Short Sale has much less of a financial impact than a Foreclosure.  Here’s a link to some resources for preventing Foreclosure.

The 30 year fixed mortgage rate dropped to 4.72% last week, down from the previous week’s 4.79% and way down from 5.59% this time last year. Mortgage rates moved to new lows with another volatile week in the global financial markets. The primary concern revolves around the outlook for the global economy and the possibility of Europe’s debt dragging the U.S. into another recession.

Greece announced that the emergency loans it received will cover its obligations and help the country avoid defaulting on loans, helping to ease investor fears. For the week, this catapulted the Dow 279 points higher. If the stock markets continue this upbeat trend, we’ll see the demand for Treasuries start to wane, which will inevitably push interest rates higher. Although, with the way the global markets have been lately, that demand for U.S. Treasuries might not let up anytime soon.

It’s also looking highly unlikely the Fed will raise interest rates anytime soon, perhaps even until 2011. The uncertainty in the markets and the slow economic recovery will most likely keep mortgage rates low for a few more weeks.

These low interest rates combined with the high inventory of homes throughout the Austin area, provide the perfect opportunity for all home buyers to take advantage of this fantastic market.

Texas’s latest “stimulus package” is coming by way of the Texas Department of Housing and Community Affairs (TDHCA) Bond 77 Program. This is a good sign that Texas is devoted to future economic and real estate market growth. Personally, I think that all the measures – which include the infrastructure spending and assistance programs for home buyers – are great news for investors as well as first time home buyers looking to purchase property.

(more…)

We just reduced the price on this great home! Walk to the Barton Creek Greenbelt from this well-maintained home in coveted Barton Hills area of 78704! Recently reduced from $449,000 to $425,000! Find out more about the home here

Rainwater Collection System; Back of Home